Document:

Exhibit 4.2

 

 

 

GEORGIA
GULF CORPORATION

 

AND
EACH OF THE GUARANTORS PARTY HERETO

 

10.75%
SENIOR SUBORDINATED NOTES DUE 2016

 

 

INDENTURE

 

Dated
as of October 3, 2006

 

 

LASALLE
BANK NATIONAL ASSOCIATION

 

Trustee

 

 

 

 

CROSS-REFERENCE
TABLE*

 

	
  Trust Indenture

  Act Section

  	
   

  	
  Indenture Section

  	
   

  
	
  310(a)(1)

  	
   

  	
  7.10

  	
   

  
	
  (a)(2)

  	
   

  	
  7.10

  	
   

  
	
  (a)(3)

  	
   

  	
  N.A.

  	
   

  
	
  (a)(4)

  	
   

  	
  N.A.

  	
   

  
	
  (a)(5)

  	
   

  	
  7.10

  	
   

  
	
  (b)

  	
   

  	
  7.10

  	
   

  
	
  (c)

  	
   

  	
  N.A.

  	
   

  
	
  311(a)

  	
   

  	
  7.11

  	
   

  
	
  (b)

  	
   

  	
  7.11

  	
   

  
	
  (c)

  	
   

  	
  N.A.

  	
   

  
	
  312(a)

  	
   

  	
  2.05

  	
   

  
	
  (b)

  	
   

  	
  12.03

  	
   

  
	
  (c)

  	
   

  	
  12.03

  	
   

  
	
  313(a)

  	
   

  	
  7.06

  	
   

  
	
  (b)(2)

  	
   

  	
  7.06; 7.07

  	
   

  
	
  (c)

  	
   

  	
  7.06; 12.02

  	
   

  
	
  (d)

  	
   

  	
  7.06

  	
   

  
	
  314(a)

  	
   

  	
  4.03;13.02; 13.05

  	
   

  
	
  (c)(1)

  	
   

  	
  13.04

  	
   

  
	
  (c)(2)

  	
   

  	
  13.04

  	
   

  
	
  (c)(3)

  	
   

  	
  N.A.

  	
   

  
	
  (e)

  	
   

  	
  13.05

  	
   

  
	
  (f)

  	
   

  	
  N.A.

  	
   

  
	
  315(a)

  	
   

  	
  7.01

  	
   

  
	
  (b)

  	
   

  	
  7.05; 13.02

  	
   

  
	
  (c)

  	
   

  	
  7.01

  	
   

  
	
  (d)

  	
   

  	
  7.01

  	
   

  
	
  (e)

  	
   

  	
  6.11

  	
   

  
	
  316(a) (last sentence)

  	
   

  	
  2.09

  	
   

  
	
  (a)(1)(A)

  	
   

  	
  6.05

  	
   

  
	
  (a)(1)(B)

  	
   

  	
  6.04

  	
   

  
	
  (a)(2)

  	
   

  	
  N.A.

  	
   

  
	
  (b)

  	
   

  	
  6.07

  	
   

  
	
  (c)

  	
   

  	
  2.12

  	
   

  
	
  317(a)(1)

  	
   

  	
  6.08

  	
   

  
	
  (a)(2)

  	
   

  	
  6.09

  	
   

  
	
  (b)

  	
   

  	
  2.04

  	
   

  
	
  318(a)

  	
   

  	
  13.01

  	
   

  
	
  (b)

  	
   

  	
  N.A.

  	
   

  
	
  (c)

  	
   

  	
  13.01

  	
   

  

 

N.A. means not applicable.

*  This Cross
Reference Table is not part of the Indenture.

 

 

TABLE
OF CONTENTS

 

	
   

  	
  Page

  
	
   

  	
   

  
	
  ARTICLE 1

  	
   

  
	
  DEFINITIONS AND INCORPORATION

  	
   

  
	
  BY REFERENCE

  	
   

  
	
   

  	
   

  	
   

  
	
  Section
  1.01

  	
  Definitions

  	
  1

  
	
  Section
  1.02

  	
  Other Definitions

  	
  26

  
	
  Section
  1.03

  	
  Incorporation by Reference of Trust Indenture Act

  	
  27

  
	
  Section
  1.04

  	
  Rules of Construction

  	
  27

  
	
   

  	
   

  	
   

  
	
  ARTICLE 2

  	
   

  
	
  THE NOTES

  	
   

  
	
   

  	
   

  	
   

  
	
  Section
  2.01

  	
  Form and Dating

  	
  27

  
	
  Section
  2.02

  	
  Execution and Authentication

  	
  28

  
	
  Section
  2.03

  	
  Registrar and Paying Agent

  	
  28

  
	
  Section
  2.04

  	
  Paying Agent to Hold Money in Trust

  	
  29

  
	
  Section
  2.05

  	
  Holder Lists

  	
  29

  
	
  Section
  2.06

  	
  Transfer and Exchange

  	
  29

  
	
  Section
  2.07

  	
  Replacement Notes

  	
  41

  
	
  Section
  2.08

  	
  Outstanding Notes

  	
  41

  
	
  Section
  2.09

  	
  Treasury Notes

  	
  41

  
	
  Section
  2.10

  	
  Temporary Notes

  	
  41

  
	
  Section
  2.11

  	
  Cancellation

  	
  42

  
	
  Section
  2.12

  	
  Defaulted Interest

  	
  42

  
	
   

  	
   

  	
   

  
	
  ARTICLE 3

  	
   

  
	
  REDEMPTION AND PREPAYMENT

  	
   

  
	
   

  	
   

  	
   

  
	
  Section
  3.01

  	
  Notices to Trustee

  	
  42

  
	
  Section
  3.02

  	
  Selection of Notes to Be Redeemed or Purchased

  	
  42

  
	
  Section
  3.03

  	
  Notice of Redemption

  	
  43

  
	
  Section
  3.04

  	
  Effect of Notice of Redemption

  	
  44

  
	
  Section
  3.05

  	
  Deposit of Redemption or Purchase Price

  	
  44

  
	
  Section
  3.06

  	
  Notes Redeemed or Purchased in Part

  	
  44

  
	
  Section
  3.07

  	
  Optional Redemption

  	
  44

  
	
  Section
  3.08

  	
  Mandatory Redemption

  	
  45

  
	
  Section
  3.09

  	
  Offer to Purchase by Application of Excess Proceeds

  	
  45

  
	
   

  	
   

  	
   

  
	
  ARTICLE 4

  	
   

  
	
  COVENANTS

  	
   

  
	
   

  	
   

  	
   

  
	
  Section
  4.01

  	
  Payment of Notes

  	
  47

  
	
  Section
  4.02

  	
  Maintenance of Office or Agency

  	
  47

  
	
  Section
  4.03

  	
  Reports

  	
  48

  
	
  Section
  4.04

  	
  Compliance Certificate

  	
  49

  
	
  Section
  4.05

  	
  Taxes

  	
  49

  
	
  Section
  4.06

  	
  Stay, Extension and Usury Laws

  	
  49

  
	
  Section
  4.07

  	
  Restricted Payments

  	
  49

  
	
  Section
  4.08

  	
  Dividend and Other Payment Restrictions Affecting Subsidiaries

  	
  53

  
	
  Section
  4.09

  	
  Incurrence of Indebtedness and Issuance of Preferred Stock

  	
  55

  
	
  Section
  4.10

  	
  Asset Sales

  	
  58

  

 

 

	
  Section
  4.11

  	
  Transactions with Affiliates

  	
  60

  
	
  Section
  4.12

  	
  Liens

  	
  61

  
	
  Section
  4.13

  	
  Business Activities

  	
  61

  
	
  Section
  4.14

  	
  Corporate Existence

  	
  61

  
	
  Section
  4.15

  	
  Offer to Repurchase Upon Change of Control

  	
  62

  
	
  Section
  4.16

  	
  Payments for Consent

  	
  63

  
	
  Section
  4.17

  	
  Additional Note Guarantees

  	
  63

  
	
  Section
  4.18

  	
  Designation of Restricted and Unrestricted Subsidiaries

  	
  64

  
	
  Section
  4.19

  	
  No Layering of Debt

  	
  65

  
	
  Section
  4.20

  	
  Changes in Covenants When Notes Rated Investment Grade

  	
  65

  
	
   

  	
   

  	
   

  
	
  ARTICLE 5

  	
   

  
	
  SUCCESSORS

  	
   

  
	
   

  	
   

  	
   

  
	
  Section
  5.01

  	
  Merger, Consolidation, or Sale of Assets

  	
  65

  
	
  Section
  5.02

  	
  Successor Corporation Substituted

  	
  66

  
	
   

  	
   

  	
   

  
	
  ARTICLE 6

  	
   

  
	
  DEFAULTS AND REMEDIES

  	
   

  
	
   

  	
   

  	
   

  
	
  Section
  6.01

  	
  Events of Default

  	
  67

  
	
  Section
  6.02

  	
  Acceleration

  	
  68

  
	
  Section
  6.03

  	
  Other Remedies

  	
  69

  
	
  Section
  6.04

  	
  Waiver of Past Defaults

  	
  69

  
	
  Section
  6.05

  	
  Control by Majority

  	
  69

  
	
  Section
  6.06

  	
  Limitation on Suits

  	
  69

  
	
  Section
  6.07

  	
  Rights of Holders of Notes to Receive Payment

  	
  70

  
	
  Section
  6.08

  	
  Collection Suit by Trustee

  	
  70

  
	
  Section
  6.09

  	
  Trustee May File Proofs of Claim

  	
  70

  
	
  Section
  6.10

  	
  Priorities

  	
  71

  
	
  Section
  6.11

  	
  Undertaking for Costs

  	
  71

  
	
   

  	
   

  	
   

  
	
  ARTICLE 7

  	
   

  
	
  TRUSTEE

  	
   

  
	
   

  	
   

  	
   

  
	
  Section
  7.01

  	
  Duties of Trustee

  	
  71

  
	
  Section
  7.02

  	
  Rights of Trustee

  	
  72

  
	
  Section
  7.03

  	
  Individual Rights of Trustee

  	
  73

  
	
  Section
  7.04

  	
  Trustee’s Disclaimer

  	
  73

  
	
  Section
  7.05

  	
  Notice of Defaults

  	
  73

  
	
  Section
  7.06

  	
  Reports by Trustee to Holders of the Notes

  	
  73

  
	
  Section
  7.07

  	
  Compensation and Indemnity

  	
  73

  
	
  Section
  7.08

  	
  Replacement of Trustee

  	
  74

  
	
  Section
  7.09

  	
  Successor Trustee by Merger, etc

  	
  75

  
	
  Section
  7.10

  	
  Eligibility; Disqualification

  	
  75

  
	
  Section
  7.11

  	
  Preferential Collection of Claims Against Company

  	
  75

  
	
   

  	
   

  	
   

  
	
  ARTICLE 8

  	
   

  
	
  LEGAL DEFEASANCE AND COVENANT DEFEASANCE

  	
   

  
	
   

  	
   

  	
   

  
	
  Section
  8.01

  	
  Option to Effect Legal Defeasance or Covenant Defeasance

  	
  76

  
	
  Section
  8.02

  	
  Legal Defeasance and Discharge

  	
  76

  
	
  Section
  8.03

  	
  Covenant Defeasance

  	
  76

  
	
  Section
  8.04

  	
  Conditions to Legal or Covenant Defeasance

  	
  77

  

 

ii

 

	
  Section
  8.05

  	
  Deposited Money and Government Securities to be Held in Trust; Other
  Miscellaneous Provisions

  	
  78

  
	
  Section
  8.06

  	
  Repayment to Company

  	
  78

  
	
  Section
  8.07

  	
  Reinstatement

  	
  79

  
	
   

  	
   

  	
   

  
	
  ARTICLE 9

  	
   

  
	
  AMENDMENT, SUPPLEMENT AND WAIVER

  	
   

  
	
   

  	
   

  	
   

  
	
  Section
  9.01

  	
  Without Consent of Holders of Notes

  	
  79

  
	
  Section
  9.02

  	
  With Consent of Holders of Notes

  	
  80

  
	
  Section
  9.03

  	
  Compliance with Trust Indenture Act

  	
  81

  
	
  Section
  9.04

  	
  Revocation and Effect of Consents

  	
  81

  
	
  Section
  9.05

  	
  Notation on or Exchange of Notes

  	
  81

  
	
  Section
  9.06

  	
  Trustee to Sign Amendments, etc

  	
  82

  
	
   

  	
   

  	
   

  
	
  ARTICLE 10

  	
   

  
	
  SUBORDINATION

  	
   

  
	
   

  	
   

  	
   

  
	
  Section
  10.01

  	
  Agreement to Subordinate

  	
  82

  
	
  Section
  10.02

  	
  Liquidation; Dissolution; Bankruptcy

  	
  82

  
	
  Section
  10.03

  	
  Default on Designated Senior Debt

  	
  83

  
	
  Section
  10.04

  	
  Acceleration of Notes

  	
  84

  
	
  Section
  10.05

  	
  When Distribution Must Be Paid Over

  	
  84

  
	
  Section
  10.06

  	
  Notice by Company

  	
  84

  
	
  Section
  10.07

  	
  Subrogation

  	
  85

  
	
  Section
  10.08

  	
  Relative Rights

  	
  85

  
	
  Section
  10.09

  	
  Subordination May Not Be Impaired by Company

  	
  85

  
	
  Section
  10.10

  	
  Distribution or Notice to Representative

  	
  85

  
	
  Section
  10.11

  	
  Rights of Trustee and Paying Agent

  	
  85

  
	
  Section
  10.12

  	
  Authorization to Effect Subordination

  	
  86

  
	
   

  	
   

  	
   

  
	
  ARTICLE 11

  	
   

  
	
  NOTE GUARANTEES

  	
   

  
	
   

  	
   

  	
   

  
	
  Section
  11.01

  	
  Guarantee

  	
  86

  
	
  Section
  11.02

  	
  Limitation on Guarantor Liability

  	
  87

  
	
  Section
  11.03

  	
  Execution and Delivery of Note Guarantee

  	
  87

  
	
  Section
  11.04

  	
  Guarantors May Consolidate, etc., on Certain Terms

  	
  88

  
	
  Section
  11.05

  	
  Releases

  	
  89

  
	
  Section
  11.06

  	
  Subordination of Note Guarantee

  	
  89

  
	
   

  	
   

  	
   

  
	
  ARTICLE 12

  	
   

  
	
  SATISFACTION AND DISCHARGE

  	
   

  
	
   

  	
   

  	
   

  
	
  Section
  12.01

  	
  Satisfaction and Discharge

  	
  89

  
	
  Section
  12.02

  	
  Application of Trust Money

  	
  90

  
	
   

  	
   

  	
   

  
	
  ARTICLE 13

  	
   

  
	
  MISCELLANEOUS

  	
   

  
	
   

  	
   

  	
   

  
	
  Section
  13.01

  	
  Trust Indenture Act Controls

  	
  91

  
	
  Section
  13.02

  	
  Notices

  	
  91

  
	
  Section
  13.03

  	
  Communication by Holders of Notes with Other Holders of Notes

  	
  92

  
	
  Section
  13.04

  	
  Certificate and Opinion as to Conditions Precedent

  	
  92

  
	
  Section
  13.05

  	
  Statements Required in Certificate or Opinion

  	
  92

  
	
  Section
  13.06

  	
  Rules by Trustee and Agents

  	
  93

  

 

iii

 

	
  Section
  13.07

  	
  No Personal Liability of Directors, Officers, Employees and Stockholders

  	
  93

  
	
  Section
  13.08

  	
  Governing Law

  	
  93

  
	
  Section
  13.09

  	
  No Adverse Interpretation of Other Agreements

  	
  93

  
	
  Section
  13.10

  	
  Successors

  	
  93

  
	
  Section
  13.11

  	
  Severability

  	
  93

  
	
  Section
  13.12

  	
  Counterpart Originals

  	
  93

  
	
  Section
  13.13

  	
  Table of Contents, Headings, etc

  	
  94

  
	
   

  	
   

  	
   

  
	
  EXHIBITS

  	
   

  
	
   

  	
   

  	
   

  
	
  Exhibit
  A

  	
  FORM OF NOTE

  	
   

  
	
  Exhibit
  B

  	
  FORM OF CERTIFICATE OF TRANSFER

  	
   

  
	
  Exhibit
  C

  	
  FORM OF CERTIFICATE OF EXCHANGE

  	
   

  
	
  Exhibit
  D

  	
  FORM OF CERTIFICATE OF ACQUIRING INSTITUTIONAL
  ACCREDITED INVESTOR

  	
   

  
	
  Exhibit
  E

  	
  FORM OF NOTATION OF GUARANTEE

  	
   

  
	
  Exhibit
  F

  	
  FORM OF SUPPLEMENTAL INDENTURE

  	
   

  
				

 

iv

 

INDENTURE dated as of October 3, 2006 among Georgia
Gulf Corporation, a Delaware corporation, the Guarantors (as defined) and
LaSalle Bank National Association, as trustee.

 

The Company, the Guarantors and the Trustee agree as
follows for the benefit of each other and for the equal and ratable benefit of
the Holders (as defined) of the 10.75%
Senior Subordinated Notes due 2016 (the “Notes”):

 

ARTICLE 1

DEFINITIONS AND INCORPORATION

BY REFERENCE

 

Section 1.01           Definitions.

 

“144A Global Note”
means a Global Note substantially in the form of Exhibit A hereto bearing the
Global Note Legend and the Private Placement Legend and deposited with or on
behalf of, and registered in the name of, the Depositary or its nominee that
will be issued in a denomination equal to the outstanding principal amount of
the Notes sold in reliance on Rule 144A.

 

“Acquired Debt”
means, with respect to any specified Person:

 

(1)           Indebtedness
of any other Person existing at the time such other Person is merged with or
into or became a Restricted Subsidiary of such specified Person, whether or not
such Indebtedness is incurred in connection with, or in contemplation of, such
other Person merging with or into, or becoming a Restricted Subsidiary of, such
specified Person; and

 

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

 

“Additional Interest”
means all additional interest then owing pursuant to the Registration Rights
Agreement.

 

“Additional Notes”
means additional Notes (other than the Initial Notes) issued under this
Indenture in accordance with Sections 2.02 and 4.09 hereof, as part of the same
series as the Initial Notes and the Exchange Notes issued in respect of such
Initial Notes.

 

“Affiliate” of
any specified Person means any other Person directly or indirectly controlling
or controlled by or under direct or indirect common control with such specified
Person. For purposes of this definition, “control,” as used with respect to any
Person, means the possession, directly or indirectly, of the power to direct or
cause the direction of the management or policies of such Person, whether
through the ownership of voting securities, by agreement or otherwise; provided that beneficial ownership of 10% or more of the
Voting Stock of a Person will be deemed to be control. For purposes of this
definition, the terms “controlling,” “controlled by” and “under common control with”
have correlative meanings. No Person (other than the Company or any Subsidiary
of the Company) in whom a Receivables Entity makes an Investment in connection
with a Qualified Receivables Transaction will be deemed to be an Affiliate of
the Company or any of its Subsidiaries solely by reason of such Investment.

 

“Agent” means
any Registrar, co-registrar, Paying Agent or additional paying agent.

 

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

 

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

 

1

 

(2)           the
excess of:

 

(a)           the
present value at such redemption date of (i) the redemption price of the Note
at October 15, 2011 (such redemption price being set forth in the table
appearing under Section 3.07 hereof) plus (ii) all required interest payments
due on the Note through October 15, 2011 (excluding interest paid prior to the
redemption date and accrued but unpaid interest to the redemption date),
computed using a discount rate equal to the Treasury Rate as of such redemption
date plus 50 basis points; over

 

(b)           the
principal amount of the Note.

 

 “Applicable Procedures”
means, with respect to any transfer or exchange of or for beneficial interests
in any Global Note, the rules and procedures of the Depositary, Euroclear and
Clearstream that apply to such transfer or exchange.

 

“Asset Sale”
means:

 

(1)           the
sale, lease, conveyance or other disposition of any assets or rights; provided that the sale, lease, conveyance or other
disposition of all or substantially all of the assets of the Company and its
Restricted Subsidiaries taken as a whole will be governed by the provisions of
this Indenture described under Section 4.15 hereof and/or the provisions
described under 5.01 hereof and not by the provisions of Section 4.10 hereof;
and

 

(2)           the
issuance of Equity Interests in any of the Company’s Restricted Subsidiaries or
the sale of Equity Interests in any of its Subsidiaries.

 

Notwithstanding the preceding, none of the following
items will be deemed to be an Asset Sale:

 

(1)           any single
transaction or series of related transactions that involves assets having a
Fair Market Value of less than $25.0 million;

 

(2)           a transfer
of assets between or among the Company and its Restricted Subsidiaries;

 

(3)           an
issuance of Equity Interests by a Restricted Subsidiary of the Company to the
Company or to a Restricted Subsidiary of the Company;

 

(4)           the sale
or lease of products, services or accounts receivable in the ordinary course of
business and any sale or other disposition of damaged, worn-out or obsolete
assets in the ordinary course of business;

 

(5)           the sale
or other disposition of cash or Cash Equivalents;

 

(6)           transfers
or sales of Receivables and Related Assets to a Receivables Entity or to any
Person in connection with a Qualified Receivables Transaction or the creation
of a Lien on any such Receivables or Related Assets in connection with a
Qualified Receivables Transaction;

 

(7)           transfers
of Receivables and Related Assets (or a fractional undivided interest therein)
by a Receivables Entity in a Qualified Receivables Transaction;

 

2

 

(8)           a
Restricted Payment that does not violate Section 4.07 hereof or a Permitted
Investment;

 

(9)           the
concurrent trade or exchange of assets between the Company or its Restricted
Subsidiaries and another Person including any cash or Cash Equivalents
necessary in order to achieve an exchange of equivalent value; provided that any cash or Cash Equivalents received must be
applied in accordance with Section 4.10 hereof and must be determined in good
faith by the Company’s Board of Directors to be necessary to achieve an
exchange of equivalent value; provided, further
that (a) immediately after giving effect to such transaction, no Default shall
exist, and (b) the terms of such trade or exchange shall be approved by a majority
of the members of the Company’s Board of Directors acting in good faith;

 

(10)         the
licensing or sublicensing of intellectual property or other general intangibles
and licenses, leases or subleases of other property in the ordinary course of
business and which do not materially interfere with the business of the Company
and its Restricted Subsidiaries; and

 

(11)         a
disposition of receivables in connection with the compromise, settlement or
collection thereof in the ordinary course of business or in bankruptcy,
liquidation or insolvency proceedings; provided, that
such amounts shall be exclusive of factoring or similar arrangements.

 

“Attributable Indebtedness”
in respect of a transaction in which the Company or a Restricted Subsidiary
transfers property to a Person and the Company or a Restricted Subsidiary
leases such property from that Person, means, as at the time of determination,
the present value (discounted at the interest rate borne by the Notes,
compounded semi-annually) of the total obligations of the lessee for rental
payments during the remaining term of the lease included in such transaction
(including any period for which such lease has been extended).

 

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

 

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

 

“Board of Directors”
means:

 

(1)           with
respect to a corporation, the board of directors of the corporation or any
committee thereof duly authorized to act on behalf of such board;

 

(2)           with
respect to a partnership, the Board of Directors of the general partner of the
partnership;

 

(3)           with
respect to a limited liability company, the managing member or members or any
controlling committee of managing members thereof; and

 

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

 

“Broker-Dealer”
has the meaning set forth in the Registration Rights Agreement.

 

3

 

“Business Day”
means any day other than a Legal Holiday.

 

“Canadian Credit Parties”
means each of:

 

(1)           Royal
Group Technologies Limited, a Canadian federal corporation and, after giving
effect to the Transactions on the date of the original issuance of the Notes, a
wholly-owned, indirect subsidiary of the Company (the “Canadian
Borrower”), as borrower of the Canadian revolving credit facility
under the Credit Agreement;

 

(2)           the
Company, as a co-borrower and a guarantor under the Canadian revolving credit
facility under the Credit Agreement; and

 

(3)           each
Subsidiary of the Company that guarantees the obligations of the Canadian
Borrower under the Credit Agreement.

 

“Capital Lease Obligation”
means, at the time any determination is to be made, the amount of the liability
in respect of a capital lease that would at that time be required to be
capitalized on a balance sheet prepared in accordance with GAAP, and the Stated
Maturity thereof shall be the date of the last payment of rent or any other
amount due under such lease prior to the first date upon which such lease may
be prepaid by the lessee without payment of a penalty.

 

“Capital Stock”
means:

 

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

 

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

 

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

 

(4)           any
other interest or participation that confers on a Person the right to receive a
share of the profits and losses of, or distributions of assets of, the issuing
Person, but excluding from all of the foregoing any debt securities convertible
into Capital Stock, whether or not such debt securities include any right of
participation with Capital Stock.

 

“Cash Equivalents”
means:

 

(1)           United
States dollars or Canadian dollars;

 

(2)           securities
issued or directly and fully guaranteed or insured by the United States
government or any agency or instrumentality of the United States (provided that the full faith and credit of the United States
is pledged in support of those securities) having maturities of not more than
one year from the date of acquisition;

 

(3)           certificates
of deposit and eurodollar time deposits with maturities of one year or less
from the date of acquisition, bankers’ acceptances with maturities not
exceeding one year and overnight bank deposits, in each case, with any lender
party to the Credit Agreement or with any domestic commercial bank having
capital and surplus in excess of $500.0 million and a Thomson Bank Watch Rating
of “B” or better;

 

4

 

(4)           repurchase
obligations with a term of not more than seven days for underlying securities
of the types described in clauses (2) and (3) above entered into with any
financial institution meeting the qualifications specified in clause (3) above;

 

(5)           commercial
paper having one of the two highest ratings obtainable from Moody’s or S&P and,
in each case, maturing within six months after the date of acquisition; and

 

(6)           money
market funds at least 95% of the assets of which constitute Cash Equivalents of
the kinds described in clauses (1) through (5) of this definition.

 

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

 

(1)           the
direct or indirect sale, lease, transfer, conveyance or other disposition
(other than by way of merger or consolidation), in one or a series of related
transactions, of all or substantially all of the properties or assets of the
Company and its Subsidiaries taken as a whole to any “person” (as that term is
used in Section 13(d) of the Exchange Act);

 

(2)           the
adoption of a plan relating to the liquidation or dissolution of the Company;

 

(3)           the
consummation of any transaction (including, without limitation, any merger or
consolidation), the result of which is that any “person” (as defined above)
becomes the Beneficial Owner, directly or indirectly, of more than 50% of the
Voting Stock of the Company, measured by voting power rather than number of
shares; or

 

(4)           the
first day on which a majority of the members of the Board of Directors of the
Company are not Continuing Directors.

 

“Clearstream”
means Clearstream Banking, S.A.

 

“Company”  means Georgia Gulf Corporation, a Delaware Corporation,
and any and all successors thereto.

 

“Consolidated
Coverage Ratio” means as of any date of determination, with respect
to any specified Person, the ratio of (x) the aggregate amount of Consolidated
EBITDA of such Person for the most recent four consecutive fiscal quarters
ending prior to the date of such determination for which financial statements
are in existence to (y) Consolidated Interest Expense for such four fiscal
quarters, provided, however, that:

 

(1)           if
the Company or any of its Restricted Subsidiaries:

 

(a)           has
incurred or assumed any Indebtedness since the beginning of such period 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 will 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
revolving credit Indebtedness under any Credit Facility outstanding on the date
of such calculation will be deemed to be (i) the average daily balance of such
Indebtedness during such four fiscal quarters or such shorter period for which
such facility was outstanding or (ii) if such facility was created after the
end of such four fiscal quarters, the average daily balance of such
Indebtedness during the 

 

5

 

period from the date of
creation of such facility to the date of such calculation) and the discharge of
any other Indebtedness repaid, repurchased, defeased or otherwise discharged
with the proceeds of such new Indebtedness as if such discharge had occurred on
the first day of such period; or

 

(b)           has
repaid, repurchased, defeased or otherwise discharged any Indebtedness since
the beginning of the period that is no longer outstanding on such date of
determination 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 and the related commitment
terminated), Consolidated EBITDA and Consolidated Interest Expense for such
period will 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:

 

(2)           if
since the beginning of such period the Company or any of its Restricted
Subsidiaries will have made any Asset Sale or disposed of any company,
division, operating unit, segment, business, group of related assets or line of
business or if the transaction giving rise to the need to calculate the
Consolidated Coverage Ratio is such an Asset Sale or disposition:

 

(a)           the
Consolidated EBITDA for such period will be reduced by an amount equal to the
Consolidated EBITDA (if positive) directly attributable to the assets which are
the subject of such Asset Sale or disposition for such period or increased by
an amount equal to the Consolidated EBITDA (if negative) directly attributable
thereto for such period; and

 

(b)           Consolidated
Interest Expense for such period will be reduced by an amount equal to the
Consolidated Interest Expense directly attributable to any Indebtedness of the
Company or any of its Restricted Subsidiaries repaid, repurchased, defeased or
otherwise discharged with respect to the Company and its continuing Restricted
Subsidiaries in connection with such Asset Sale or disposition for such period
(or, if the Capital Stock of any Restricted Subsidiary is sold, the Consolidated
Interest Expense for such period directly 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);

 

(3)           if
since the beginning of such period the Company or any of its Restricted
Subsidiaries (by merger or otherwise) will have made an Investment in any
Restricted Subsidiary (or any Person which becomes a Restricted Subsidiary or
is merged with or into the Company) or an acquisition of assets, including any
acquisition of assets occurring in connection with a transaction causing a
calculation to be made hereunder, which constitutes all or substantially all of
a company, division, operating unit, segment, business or line of business,
Consolidated EBITDA and Consolidated Interest Expense for such period will be
calculated after giving pro forma
effect thereto in accordance with Regulation S-X under the Securities Act
(including the incurrence of any Indebtedness) as if such Investment or
acquisition occurred on the first day of such period; and

 

(4)           if
since the beginning of such period any Person (that subsequently became a
Restricted Subsidiary or was merged with or into the Company or any of its
Restricted Subsidiaries since the beginning of such period) will have made any
Asset Sale or any Investment 

 

6

 

or acquisition of
assets that would have required an adjustment pursuant to clause (2) or (3)
above if made by the Company or any of its Restricted Subsidiaries during such
period, Consolidated EBITDA and Consolidated Interest Expense for such period
will be calculated after giving pro forma
effect thereto as if such Asset Sale or Investment or acquisition of assets occurred
on the first day of such period.

 

For purposes of this definition, whenever pro forma effect is to be given to any calculation under
this definition, the pro forma
calculations will be determined in good faith by a responsible financial or
accounting officer of the Company (including pro forma
expense and cost reductions calculated on a basis consistent with Regulation
S-X under the Securities Act). If any Indebtedness bears a floating rate of
interest and is being given pro forma
effect, the interest expense on such Indebtedness will 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 Hedging Obligation applicable to
such Indebtedness if such Hedging Obligation has a remaining term in excess of
12 months). If any Indebtedness that is being given pro forma
effect bears an interest rate at the option of the Company, the interest rate
shall be calculated by applying such optional rate chosen by the Company.

 

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

 

(1)           Consolidated
Interest Expense;

 

(2)           Consolidated
Income Taxes;

 

(3)           consolidated
depreciation expense;

 

(4)           consolidated
amortization expense (including amortization of intangibles but excluding
amortization of prepaid cash expenses that were paid in a prior period) and
impairment charges recorded in connection with the application of Financial
Accounting Standard No. 142 “Goodwill and Other
Intangibles”;

 

(5)           without
duplication, the expenses and other adjustments in such period reflected in the
line item adjustments to EBITDA as presented in the calculation of pro forma Adjusted EBITDA for the twelve months ended June
30, 2006 set forth in note (3) to the table under the caption “Summary
Historical Consolidated and Pro Forma Condensed Combined Financial Data—Georgia
Gulf Summary Historical Consolidated and Pro Forma Condensed Combined Financial
Data” in the Company Offering Memorandum dated September 28, 2006 (the “OM Adjusted EBITDA”); provided, that
each such expense or other adjustment in the applicable period is (a)
calculated in a manner (including with respect to estimates and assumptions)
consistent with, or more conservative than (if applicable), the presentation of
the corresponding expense or other adjustment in the OM Adjusted EBITDA and (b)
of the same or similar nature as, and related directly to, the underlying
subject matter giving rise to corresponding expense or adjustment in the OM
Adjusted EBITDA;

 

(6)           any
reasonable cash expenses or charges related to the Transactions incurred no
later than six months following the Transactions; and

 

(7)           other
non-cash charges reducing Consolidated Net Income (excluding any such non-cash
charge to the extent it represents an accrual of or reserve for cash charges in
any future 

 

7

 

period or amortization of a prepaid cash expense that was paid in a
prior period not included in the calculation); and minus

 

(8)           non-cash
items increasing such Consolidated Net Income for such period, other than the
accrual of revenue in the ordinary course of business, in each case on a
consolidated basis and determined in accordance with GAAP.

 

Notwithstanding the preceding sentence, clauses (2)
through (7) relating to amounts of a Restricted Subsidiary of a Person will be
added to Consolidated Net Income to compute Consolidated EBITDA of such Person
only to the extent (and in the same proportion) that the net income (loss) of
such Restricted Subsidiary was included in calculating the Consolidated Net
Income of such Person and, to the extent the amounts set forth in clauses (2)
through (7) are in excess of those necessary to offset a net loss of such
Restricted Subsidiary or if such Restricted Subsidiary has net income for such
period included in Consolidated Net Income, only if a corresponding amount
would be permitted at the date of determination to be dividended to the Company
by such Restricted Subsidiary without prior approval (that has not been
obtained), pursuant to the terms of its charter and all agreements,
instruments, judgments, decrees, orders, statutes, rules and governmental
regulations applicable to that Restricted Subsidiary or its stockholders.

 

“Consolidated Income Taxes”
means, with respect to any Person for any period, taxes imposed upon such
Person or other payments required to be made by such Person by any governmental
authority which taxes or other payments are calculated by reference to the
income or profits of such Person or such Person and its Restricted Subsidiaries
(to the extent such income or profits were included in computing Consolidated
Net Income for such period), regardless of whether such taxes or payments are
required to be remitted to any governmental authority.

 

“Consolidated Interest
Expense” means, with respect to any Person for any period, the total
interest expense of such Person and its consolidated Restricted Subsidiaries,
whether paid or accrued, plus, to the extent not included in such interest
expense:

 

(1)           interest
expense attributable to Capital Lease Obligations, the interest portion of rent
expense associated with Attributable Indebtedness in respect of the relevant
lease giving rise thereto, determined as if such lease were a capitalized lease
in accordance with GAAP, and the interest component of any deferred payment
obligations;

 

(2)           amortization
of debt discount and debt issuance cost (provided that
any amortization of bond premium will be credited to reduce Consolidated
Interest Expense unless, pursuant to GAAP, such amortization of bond premium
has otherwise reduced Consolidated Interest Expense);

 

(3)           non-cash
interest expense;

 

(4)           commissions,
discounts and other fees and charges owed with respect to letters of credit and
bankers’ acceptance financing;

 

(5)           the
interest expense on Indebtedness of another Person that is Guaranteed by such
Person or one of its Restricted Subsidiaries or secured by a Lien on assets of
such Person or one of its Restricted Subsidiaries;

 

(6)           net costs
associated with Hedging Obligations (including amortization of fees) provided, however, that if Hedging Obligations result in net
benefits rather than costs, such 

 

8

 

benefits shall be credited to reduce Consolidated Interest Expense
unless, pursuant to GAAP, such net benefits are otherwise reflected in
Consolidated Net Income;

 

(7)           the
consolidated interest expense of such Person and its Restricted Subsidiaries
that was capitalized during such period;

 

(8)           the
product of (a) all dividends paid or payable, in cash or otherwise or accrued
during such period on any series of preferred stock of such Person or its
Restricted Subsidiaries payable to a party other than the Company or a
wholly-owned Subsidiary of the Company, other than dividends on Equity
Interests payable solely in Equity Interests of the Company (other than
Disqualified Stock) or to the Company or a Restricted Subsidiary of the
Company, times (b) a fraction, the numerator of which is one and the
denominator of which is one minus the then current combined federal, state,
provincial and local statutory tax rate of such Person, expressed as a decimal,
in each case, on a consolidated basis and in accordance with GAAP; and

 

(9)           the cash
contributions to any employee stock ownership plan or similar trust to the
extent such contributions are used by such plan or trust to pay interest or
fees to any Person (other than the Company) in connection with Indebtedness
incurred by such plan or trust; provided, however,
that there will be excluded therefrom any such interest expense of any
Unrestricted Subsidiary to the extent the related Indebtedness is not
guaranteed or paid by the Company or any of its Restricted Subsidiaries.

 

For purposes of the foregoing, total interest expense
will be determined after giving effect to any net payments made or received by
the Company and its Subsidiaries with respect to Hedging Obligations during the
applicable period. Notwithstanding anything to the contrary contained herein,
commissions, discounts, yield and other fees and charges incurred in connection
with any transaction (including, without limitation, any Qualified Receivables
Transaction) pursuant to which the Company or any of its Subsidiaries may sell,
convey or otherwise transfer or grant a security interest in any Receivables or
Related Assets will be included in Consolidated Interest Expense.

 

“Consolidated Net Income”
means, with respect to any specified Person for any period, the net income
(loss) of such Person and its consolidated Restricted Subsidiaries for such
period determined in accordance with GAAP; provided, however,
that there will not be included in such Consolidated Net Income:

 

(1)           any
net income (loss) of any Person if such Person is not a Restricted Subsidiary,
except that:

 

(a)           subject to
the limitations contained in clauses (3), (4) and (5) below, such Person’s
equity in the net income of any such Person for such period will be included in
such Consolidated Net Income up to the aggregate amount of cash which could
have been distributed by such Person during such period to the Company or any
of its Restricted Subsidiaries 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 (2) below); and

 

(b)           the
Company’s equity in a net loss of any such Person (other than an Unrestricted
Subsidiary) for such period will be included in determining such Consolidated
Net Income to the extent such loss has been funded with cash from the Company
or any of its Restricted Subsidiaries;

 

9

 

(2)           any
net income (but not loss) of any Restricted Subsidiary of the Company if such
Restricted Subsidiary is subject to restrictions, directly or indirectly, on
the payment of dividends or the making of distributions by such Restricted
Subsidiary, directly or indirectly, to the Company, except that:

 

(a)           subject to
the limitations contained in clauses (3), (4) and (5) below, the Company’s
equity in the net income of any such Restricted Subsidiary for such period will
be included in such Consolidated Net Income up to the aggregate amount of cash
that could have been distributed by such Restricted Subsidiary during such
period to the Company or another Restricted Subsidiary as a dividend (subject,
in the case of a dividend to another Restricted Subsidiary, to the limitation
contained in this clause); and

 

(b)           the
Company’s equity in a net loss of any such Restricted Subsidiary for such
period will be included in determining such Consolidated Net Income;

 

(3)           any
gain (loss) realized upon the sale or other disposition of any property, plant
or equipment of the Company or its consolidated Restricted Subsidiaries
(including pursuant to any transaction pursuant to which the Company or any of
its Restricted Subsidiaries sells property to another Person and the Company or
any of its Restricted Subsidiaries leases such property from that Person but
excluding sales, transfers or other dispositions in connection with Qualified
Receivables Transactions) which is not sold or otherwise disposed of in the
ordinary course of business and any gain (loss) realized upon the sale or other
disposition of any Capital Stock of any Person;

 

(4)           any
extraordinary gain or loss; and

 

(5)           the
cumulative effect of a change in accounting principles.

 

“Consolidated Net Worth”
means, as of any date of determination, consolidated shareholders’ equity of
the Company and its Subsidiaries as of that date, determined in accordance with
GAAP.

 

“Consolidated Net Tangible
Assets” means, at any date of determination, the total amount of assets
of the Company and its consolidated Subsidiaries after deducting therefrom all
current liabilities (excluding any current liabilities that are by their terms
extendable or renewable at the option of the obligor thereunder for more than
12 months after the date of determination); total prepaid expenses and deferred
charges; and all goodwill, trade names, trademarks, patents, licenses,
copyrights and other intangible assets, all as set forth, or on a pro forma basis, as would be set forth, on the consolidated
balance sheet of the Company and its consolidated Subsidiaries for the Company’s
most recently completed fiscal quarter, prepared in accordance with GAAP.

 

 “Continuing Directors”
means, as of any date of determination, any member of the Board of Directors of
the Company who:

 

(1)           was
a member of such Board of Directors on the date of this Indenture; or

 

(2)           was
nominated for election or elected to such Board of Directors with the approval
of a majority of the Continuing Directors who were members of such Board of
Directors at the time of such nomination or election.

 

“Corporate Trust Office of the
Trustee” will be at the address of the Trustee specified in
Section 13.02 hereof or such other address as to which the Trustee may give
notice to the Company.

 

10

 

“Credit Agreement”
means that certain Credit Agreement, dated as of the date of this Indenture by
and among the Company, the Canadian Borrower, the other Guarantors party
thereto, each lender from time to time party thereto, Bank of America, N.A., as
Domestic Administrative Agent, Domestic Collateral Agent and Domestic L/C
Issuer, Bank of America, N.A., acting through its Canada branch, as Canadian
Administrative Agent, Canadian Collateral Agent and Canadian L/C Issuer, The
Bank of Nova Scotia, as Canadian Swing Line Lender, Merrill Lynch & Co. and
Lehman Commercial Paper Inc., as Co-Syndication Agents, and Wachovia Bank,
National Association, as Co-Documentation Agent, including any related notes,
Guarantees, collateral documents, instruments and agreements executed in
connection therewith, and, in each case, as amended, restated, modified,
renewed, refunded, replaced (whether upon or after termination or otherwise) or
refinanced (including by means of sales of debt securities to institutional
investors) in whole or in part from time to time.

 

“Credit Facilities”
means, one or more debt facilities (including, without limitation, the Credit
Agreement) or commercial paper facilities, in each case, with banks or other
institutional lenders providing for revolving credit loans, term loans,
receivables financing (including through the sale of receivables to such
lenders or to special purpose entities formed to borrow from such lenders
against such receivables) or letters of credit, in each case, as amended,
restated, modified, renewed, refunded, replaced (whether upon or after
termination or otherwise) or refinanced (including by means of sales of debt
securities to institutional investors) in whole or in part from time to time.

 

“Custodian”
means the Trustee, as custodian with respect to the Notes in global form, or
any successor entity thereto.

 

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

 

“Designated Senior Debt” means:

 

(1)           any
Indebtedness outstanding under Credit Facilities, the 71/8%
Notes and the Senior Notes; and

 

(2)           any
other Senior Debt permitted under this Indenture, the principal amount of which
is $25.0 million or more.

 

“Definitive Note”
means a certificated Note registered in the name of the Holder thereof and
issued in accordance with Section 2.06 hereof, substantially in the form of
Exhibit A hereto except that such Note shall not bear the Global Note Legend
and shall not have the “Schedule of Exchanges of Interests in the Global Note”
attached thereto.

 

“Depositary”
means, with respect to the Notes issuable or issued in whole or in part in
global form, the Person specified in Section 2.03 hereof as the Depositary with
respect to the Notes, and any and all successors thereto appointed as
depositary hereunder and having become such pursuant to the applicable
provision of this Indenture.

 

“Disqualified Stock”
means any Capital Stock that, by its terms (or by the terms of any security
into which it is convertible, or for which it is exchangeable, in each case at
the option of the holder of the Capital Stock), or upon the happening of any
event, matures or is mandatorily redeemable, pursuant to a sinking fund
obligation or otherwise, or redeemable at the option of the holder of the
Capital Stock, in whole or in part, on or prior to the date that is 91 days
after the date on which the Notes mature. Notwithstanding the preceding
sentence, any Capital Stock that would constitute Disqualified Stock solely
because the holders of the Capital Stock have the right to require the Company
to repurchase such

 

11

 

Capital Stock upon the occurrence of a change of
control or an asset sale will not constitute Disqualified Stock if the terms of
such Capital Stock provide that the Company may not repurchase or redeem any
such Capital Stock pursuant to such provisions unless such repurchase or
redemption complies with Section 4.07 hereof. The amount of Disqualified Stock
deemed to be outstanding at any time for purposes of this Indenture will be the
maximum amount that the Company and its Restricted Subsidiaries may become
obligated to pay upon the maturity of, or pursuant to any mandatory redemption
provisions of, such Disqualified Stock, exclusive of accrued dividends.

 

“Domestic Subsidiary”
means any Restricted Subsidiary of the Company that was formed under the laws
of the United States or any state of the United States or the District of Columbia.

 

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

 

“Equity Offering”
means an offering for cash by the Company of its Equity Interests.

 

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

 

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

 

“Exchange Notes”
means the registered notes that will be exchanged for the Notes, pursuant to
the terms of the Registration Rights Agreement, having substantially the same
terms as the Notes.

 

“Exchange Offer”
has the meaning set forth in the Registration Rights Agreement.

 

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

 

 “Exchange Senior Notes” means the registered notes that will
be exchanged for the Senior Notes, pursuant to the terms of the Registration Rights
Agreement, having substantially the same terms as the Senior Notes.

 

“Existing Indebtedness” means
(i) up to $55.0 million in aggregate principal amount of Indebtedness of the
Company and its Subsidiaries (other than Indebtedness under the Credit Agreement)
(ii) $100.0 million of the 71/8% Notes, (iii) CAD$116.5
million of Medium Term Notes (to be called for redemption on the date of this Indenture)
and (iv) up to $115.0 million of Series D Notes, in each case in existence on
the date of this Indenture and until such amounts are repaid.

 

“Fair Market Value” means the value that would be paid
by a willing buyer to an unaffiliated willing seller in a transaction not
involving distress or necessity of either party, determined in good faith by
the Board of Directors of the Company (unless otherwise provided in this
Indenture).

 

“GAAP” means
generally accepted accounting principles 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
have been approved by a significant segment of the accounting profession, which
are in effect on the date of this Indenture.

 

“Global Note Legend”
means the legend set forth in Section 2.06(g)(2) hereof, which is required to
be placed on all Global Notes issued under this Indenture.

 

12

 

“Global Notes”
means, individually and collectively, each of the Restricted Global Notes and
the Unrestricted Global Notes deposited with or on behalf of and registered in
the name of the Depository or its nominee, substantially in the form of Exhibit
A hereto and that bears the Global Note Legend and that has the “Schedule of
Exchanges of Interests in the Global Note” attached thereto, issued in
accordance with Section 2.01, 2.06(b)(3), 2.06(b)(4), 2.06(d)(2) or 2.06(f)
hereof.

 

“Government Securities”
means direct obligations of, or obligations guaranteed by, the United States of
America, and the payment for which the United States pledges its full faith and
credit.

 

“Guarantee”
means a guarantee other than by endorsement of negotiable instruments for
collection in the ordinary course of business, direct or indirect, in any
manner including, without limitation, by way of a pledge of assets or through
letters of credit or reimbursement agreements in respect thereof, of all or any
part of any Indebtedness (whether arising by virtue of partnership
arrangements, or by agreements to keep-well, to purchase assets, goods,
securities or services, to take or pay or to maintain financial statement
conditions or otherwise).

 

“Guarantors”
means each of:

 

(1)           the
Company’s Domestic Subsidiaries that incurs any Indebtedness or guarantees any
Indebtedness of the Company or any of its Domestic Subsidiaries, in each case
under Credit Facilities then outstanding; and

 

(2)           any
other Subsidiary of the Company that executes a Note Guarantee in accordance
with the provisions of this Indenture,

 

and their respective successors and assigns, in each
case, until the Note Guarantee of such Person has been released in accordance
with the provisions of this Indenture; provided that
no Receivables Entity shall be a Guarantor at any time.

 

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

 

(1)           interest
rate swap agreements (whether from fixed to floating or from floating to
fixed), interest rate cap agreements and interest rate collar agreements;

 

(2)           other
agreements or arrangements designed to manage interest rates or interest rate
risk; and

 

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

 

“Holder” means
a Person in whose name a Note is registered as set forth in the register
maintained by the Registrar in accordance with Section 2.03 hereof.

 

“IAI Global Note”
means a Global Note substantially in the form of Exhibit A hereto bearing the
Global Note Legend and the Private Placement Legend and deposited with or on
behalf of and registered in the name of the Depositary or its nominee that will
be issued in a denomination equal to the outstanding principal amount of the
Notes sold to Institutional Accredited Investors.

 

“Indebtedness”
means, with respect to any specified Person, any indebtedness of such Person,
whether or not contingent, including without duplication (and excluding accrued
expenses and trade payables):

 

13

 

(1)           the
principal and premium, if any, in respect of indebtedness for borrowed money

 

(2)           the
principal and premium, if any, in respect of obligations evidenced by bonds,
notes, debentures or similar instruments;

 

(3)           the principal
component of obligations in respect of letters of credit, bankers’ acceptances
or other similar instruments (including reimbursement obligations with respect
thereto);

 

(4)           indebtedness
representing Capital Lease Obligations;

 

(5)           indebtedness
representing the balance deferred and unpaid of the purchase price of any
property or services due more than six months after such property is acquired
or such services are completed; or

 

(6)           net
obligations under any Hedging Obligations,

 

if and to the extent any of the preceding items (other
than letters of credit and Hedging Obligations) would appear as a liability
upon a balance sheet of the specified Person prepared in accordance with GAAP; provided that notwithstanding the foregoing (x) take-or-pay
obligations contained in supply agreements entered into in the ordinary course
of business shall not constitute Indebtedness, and (y) the incurrence of
indebtedness (i) by a Receivables Entity in a Qualified Receivables Transaction
that is without recourse to the Company or to any other Subsidiary of the
Company or their respective assets (other than such Receivables Entity and its
assets and, as to the Company or any of its Subsidiaries, other than pursuant
to Standard Securitization Undertakings) and is not guaranteed by any such
Person or (ii) by the Company and its Restricted Subsidiaries pursuant to
Standard Securitization Undertakings shall not constitute Indebtedness. In
addition, the term “Indebtedness” includes all Indebtedness of others secured
by a Lien on any asset of the specified Person (whether or not such
Indebtedness is assumed by the specified Person) and, to the extent not
otherwise included, the Guarantee by the specified Person of any Indebtedness
of any other Person.

 

In addition, “Indebtedness” of any Person shall
include Indebtedness described in the preceding paragraph that would not appear
as a liability on the balance sheet of such Person if:

 

(1)           such
Indebtedness is the obligation of a partnership or joint venture that is not a
Restricted Subsidiary (a “Joint Venture”);

 

(2)           such
Person or a Restricted Subsidiary of such Person is a general partner of the
Joint Venture (a “General Partner”); and

 

(3)           there
is recourse, by contract or operation of law, with respect to the payment of
such Indebtedness to property or assets of such Person or a Restricted
Subsidiary of such Person; and then such Indebtedness shall be included in an
amount not to exceed:

 

(a)           the lesser
of (i) the net assets of the General Partner and (ii) the amount of such obligations
to the extent that there is recourse, by contract or operation of law, to the
property or assets of such Person or a Restricted Subsidiary of such Person; or

 

(b)           if less
than the amount determined pursuant to clause (a) immediately above, the actual
amount of such Indebtedness that is recourse to such Person or a Restricted
Subsidiary of such Person, if the Indebtedness is evidenced by a writing and is

 

14

 

for a determinable amount
and the related interest expense shall be included in Consolidated Interest
Expense to the extent actually paid by the Company or its Restricted
Subsidiaries.

 

The amount of any Indebtedness outstanding as of any
date will be:

 

(1)           the
accreted value of the Indebtedness, in the case of any Indebtedness issued with
original issue discount; and

 

(2)           the
principal amount of the Indebtedness, together with any interest on the
Indebtedness that is more than 30 days past due, in the case of any other
Indebtedness.

 

“Indenture”
means this Indenture, as amended or supplemented from time to time.

 

“Indirect Participant”
means a Person who holds a beneficial interest in a Global Note through a
Participant.

 

“Initial Notes”
means the first $200.0 million aggregate principal amount of Notes issued under
this Indenture on the date hereof.

 

“Initial Purchasers”
means Merrill Lynch, Pierce, Fenner & Smith Incorporated, Lehman Brothers
Inc., Banc of America Securities LLC, J.P. Morgan Securities Inc., Wachovia
Capital Markets, LLC, Mitsubishi UFJ Securities International plc, ABN AMRO
Incorporated, Mizuho International plc, and Scotia Capital (USA) Inc.

 

“Institutional Accredited
Investor” means an institution that is an “accredited
investor” as defined in Rule 501(a)(1), (2), (3) or (7) under the Securities
Act, who are not also QIBs.

 

“Investments”
means, with respect to any Person, all direct or indirect investments by such
Person in other Persons (including Affiliates) in the forms of loans (including
Guarantees or other obligations), advances or capital contributions (excluding
commission, travel and similar advances to officers and employees made in the
ordinary course of business), purchases or other acquisitions for consideration
of Indebtedness, Equity Interests or other securities, together with all items
that are or would be classified as investments on a balance sheet prepared in
accordance with GAAP. If the Company or any Subsidiary of the Company sells or
otherwise disposes of any Equity Interests of any direct or indirect Subsidiary
of the Company such that, after giving effect to any such sale or disposition,
such Person is no longer a Subsidiary of the Company, the Company will be
deemed to have made an Investment on the date of any such sale or disposition
equal to the Fair Market Value of the Company’s Investments in such Subsidiary
that were not sold or disposed of in an amount determined as provided in the
final paragraph of Section 4.07 hereof. The acquisition by the Company or any
Subsidiary of the Company of a Person that holds an Investment in a third
Person will be deemed to be an Investment by the Company or such Subsidiary in
such third Person in an amount equal to the Fair Market Value of the
Investments held by the acquired Person in such third Person in an amount determined
as provided in the final paragraph of Section 4.07 hereof. Except as otherwise
provided in this Indenture, the amount of an Investment will be determined at
the time the Investment is made and without giving effect to subsequent changes
in value.

 

“Legal Holiday”
means a Saturday, a Sunday or a day on which banking institutions in the City
of Chicago, Illinois (for so long as the Company maintains an office or agency
in such location, or alternatively, in the City of New York, if at such time
the Company maintains an office or agency in the Borough of Manhattan, the City
of New York) or at a place of payment are authorized by law, regulation or
executive order to remain closed. If a payment date is a Legal Holiday at a
place of payment, payment 

 

15

 

may be made at that place
on the next succeeding day that is not a Legal Holiday, and no interest shall
accrue on such payment for the intervening period.

 

“Letter of Transmittal”
means the letter of transmittal to be prepared by the Company and sent to all
Holders of the Notes for use by such Holders in connection with the Exchange
Offer.

 

“Lien” means,
with respect to any asset, any mortgage, lien, pledge, charge, security
interest or encumbrance of any kind in respect of such asset, whether or not
filed, recorded or otherwise perfected under applicable law, including any
conditional sale or other title retention agreement, any lease in the nature
thereof, any option or other agreement to sell or give a security interest in
and any filing of or agreement to give any financing statement under the
Uniform Commercial Code (or equivalent statutes) of any jurisdiction.

 

“Medium Term Notes”
means CAD$116.5 million in aggregate principal amount of Royal Group Technologies
Limited’s 6.90% Medium Term Notes due April 13, 2010, issued pursuant to a
First Supplemental Trust Indenture dated as of April 13, 2000.

 

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

 

“Net Proceeds”
means the aggregate cash proceeds received by the Company or any of its
Restricted Subsidiaries in respect of any Asset Sale (including, without
limitation, any cash received upon the sale or other disposition of any
non-cash consideration received in any Asset Sale), net of the direct costs
relating to such Asset Sale, including, without limitation, legal, accounting
and investment banking fees, and sales commissions, and any relocation expenses
incurred as a result of the Asset Sale, taxes paid or payable as a result of
the Asset Sale, in each case, after taking into account any available tax
credits or deductions and any tax sharing arrangements, the amount of any
distributions and other payments required to be made to minority interest
holders in Subsidiaries or Joint Ventures as a result of such Asset Sale, the
deduction of amounts required to be provided by the seller as a reserve (in
accordance with GAAP) against any liabilities associated with the assets
disposed of in such Asset Sale and retained by the Company or any of its
Restricted Subsidiaries after such Asset Sale, and amounts required to be
applied to the repayment of Indebtedness, other than Senior Debt, secured by a
Lien on the asset or assets that were the subject of such Asset Sale and any
reserve for adjustment in respect of the sale price of such asset or assets
established in accordance with GAAP.

 

“Non-Guarantor Subsidiary”
means any Restricted Subsidiary of the Company that is not a Guarantor.

 

“Non-Recourse Debt”
means Indebtedness:

 

(1)           as
to which neither the Company nor any of its Restricted Subsidiaries (a)
provides credit support of any kind (including any undertaking, agreement or
instrument that would constitute Indebtedness), (b) is directly or indirectly
liable as a guarantor or otherwise, or (c) constitutes the lender;

 

(2)           no
default with respect to which (including any rights that the holders of the
Indebtedness may have to take enforcement action against an Unrestricted
Subsidiary) would permit upon notice, lapse of time or both any holder of any
other Indebtedness of the Company or any of its Restricted Subsidiaries to
declare a default on such other Indebtedness or cause the payment of the
Indebtedness to be accelerated or payable prior to its Stated Maturity; and

 

(3)           as
to which the lenders have been notified in writing that they will not have any
recourse to the stock or assets of the Company or any of its Restricted
Subsidiaries.

 

16

 

“Non-U.S. Person”
means a Person who is not a U.S. Person.

 

“Note Guarantee”
means the Guarantee by each Guarantor of the Company’s obligations under this
Indenture and the Notes, executed pursuant to the provisions of this Indenture.

 

“Notes” has the
meaning assigned to it in the preamble to this Indenture. The Initial Notes,
the Exchange Notes and the Additional Notes shall be treated as a single class
for all purposes under this Indenture, and unless the context otherwise
requires, all references to the Notes shall include the Initial Notes, the
Exchange Notes and any Additional Notes.

 

“Obligations”
means any principal, interest, penalties, fees, indemnifications,
reimbursements, damages and other liabilities payable under the documentation
governing any Indebtedness.

 

“Officer”
means, with respect to any Person, the Chairman of the Board, the Chief
Executive Officer, the President, the Chief Operating Officer, the Chief
Financial Officer, the Treasurer, any Assistant Treasurer, the Controller, the
Secretary or any Vice-President of such Person.

 

“Officers’ Certificate”
means a certificate signed on behalf of the Company by two Officers of the
Company, one of whom must be the principal executive officer, the principal
financial officer, the treasurer or the principal accounting officer of the
Company, that meets the requirements of Section 13.05 hereof.

 

“Opinion of Counsel”
means an opinion from legal counsel who is reasonably acceptable to the
Trustee, that meets the requirements of Section 13.05 hereof. The counsel may
be an employee of or counsel to the Company, any Subsidiary of the Company or
the Trustee.

 

“Parent” means
any person (as such term is used in Section 13(d) and 14(d) of the Exchange Act
and the regulations thereunder) who is or becomes the Beneficial Owner,
directly or indirectly, of more than 50% of the Equity Interests of the
Company.

 

“Parent Guaranty”
means an unconditional Guarantee by a Parent, on an unsecured senior
subordinated basis, of all Obligations of the Company under this Indenture and
the Notes outstanding thereunder from time to time.

 

“Participant”
means, with respect to the Depositary, Euroclear or Clearstream, a Person who
has an account with the Depositary, Euroclear or Clearstream, respectively
(and, with respect to DTC, shall include Euroclear and Clearstream).

 

“Permitted Business”
means any business that is the same as or related, ancillary or complementary
to any of the businesses of the Company and its Restricted Subsidiaries on the
date of this Indenture.

 

“Permitted Investments”
means:

 

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

 

(2)           any
Investment in Cash Equivalents;

 

(3)           any
Investment by the Company or any Restricted Subsidiary of the Company in a
Person, if as a result of such Investment:

 

(a)           such
Person becomes a Restricted Subsidiary of the Company; or

 

17

 

(b)           such
Person is merged, consolidated or amalgamated with or into, or transfers or
conveys substantially all of its assets to, or is liquidated into, the Company
or a Restricted Subsidiary of the Company;

 

(4)           any
Investment made as a result of the receipt of non-cash consideration from an
Asset Sale that was made pursuant to and in compliance with Section 4.10 hereof;

 

(5)           any
acquisition of assets, Capital Stock or other securities solely in exchange for
the issuance of Equity Interests (other than Disqualified Stock) of the Company;

 

(6)           any
Investments received in compromise or resolution of:

 

(a)           obligations
of trade creditors or customers that were incurred in the ordinary course of
business of the Company or any of its Restricted Subsidiaries, including
pursuant to any plan of reorganization or similar arrangement upon the
bankruptcy or insolvency of any trade creditor or customer; or

 

(b)           litigation,
arbitration or other disputes with Persons who are not Affiliates;

 

(7)           Investments
represented by Hedging Obligations;

 

(8)           repurchases
of the Notes (including Note Guarantees);

 

(9)           Investments
by the Company or any of its Restricted Subsidiaries in a Permitted Joint
Venture, so long as:

 

(a)           such Permitted
Joint Venture does not have any Indebtedness for borrowed money at any time on
or after the date of such Investment (other than Indebtedness owing to the
equity holders of such Permitted Joint Venture, the Company or any Restricted
Subsidiary);

 

(b)           the
documentation governing such Permitted Joint Venture does not contain a
restriction on distributions to the Company or its Restricted Subsidiaries;

 

(c)           such
Permitted Joint Venture is engaged only in a Permitted Business; and

 

(d)           after
giving pro forma effect to such Investment, the
Company would be permitted to incur $1.00 of additional Indebtedness under 4.09(a)
hereof;

 

(10)         payroll,
travel and similar advances to cover matters that are reasonably expected at
the time of such advances to be treated as expenses for accounting purposes and
that are made in the ordinary course of business and other reasonable fees,
compensation, benefits and indemnities paid or entered into by the Company or
its Restricted Subsidiaries in the ordinary course of business to or with
officers, directors or employees of the Company and its Restricted
Subsidiaries;

 

(11)         loans or
advances to employees (other than executive officers) of the Company or its
Restricted Subsidiaries made in the ordinary course of business in an aggregate
amount not in excess of $20.0 million at any one time outstanding;

 

18

 

(12)         Investments
in existence on the date of this Indenture;

 

(13)         a
Receivables Entity or any Investment by a Receivables Entity in any other
Person in connection with a Qualified Receivables Transaction, including
Investments of funds held in accounts permitted or required by the arrangements
governing such Qualified Receivables Transaction or any related Indebtedness;

 

(14)         Guarantees
to third parties to the extent that such Guarantees are incurred pursuant to
Section 4.09 hereof;

 

(15)         endorsements
of negotiable instruments and documents in the ordinary course of business of the
Company; and

 

(16)         other
Investments in any Person having an aggregate Fair Market Value (measured on
the date each such Investment was made and without giving effect to subsequent
changes in value), when taken together with all other Investments made pursuant
to this clause (16) that are at the time outstanding not to exceed $30.0
million.

 

“Permitted Joint Venture”
means, with respect to any Person:

 

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

 

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

 

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

 

(b)           either
such Person or any Restricted Subsidiary of such Person is a controlling
general partner or no other Person controls such entity.

 

“Permitted
Junior Securities” means:

 

(1)           Equity
Interests in the Company or any Guarantor; or

 

(2)           debt
securities that are subordinated to all Senior Debt and any debt securities
issued in exchange for Senior Debt to substantially the same extent as, or to a
greater extent than, the Notes and the Note Guarantees are subordinated to
Senior Debt under this Indenture.

 

“Permitted Refinancing Indebtedness” means any
Indebtedness of the Company or any of its Restricted Subsidiaries issued in
exchange for, or the net proceeds of which are used to renew, refund,
refinance, replace, defease or discharge other Indebtedness of
the Company or any of its Restricted Subsidiaries (other than intercompany
Indebtedness); provided that:

 

19

 

(1)           the
principal amount (or accreted value, if applicable) of such Permitted
Refinancing Indebtedness does not exceed the principal amount (or accreted
value, if applicable) of the Indebtedness renewed, refunded, refinanced,
replaced, defeased or discharged (plus all accrued interest on the Indebtedness
and the amount of all fees and expenses, including premiums, incurred in
connection therewith);

 

(2)           such
Permitted Refinancing Indebtedness has a final maturity date later than the
final maturity date of, and has a Weighted Average Life to Maturity equal to or
greater than the Weighted Average Life to Maturity of, the Indebtedness being
renewed, refunded, refinanced, replaced, defeased or discharged;

 

(3)           if
the Indebtedness being renewed, refunded, refinanced, replaced, defeased or
discharged is subordinated in right of payment to the Notes, such Permitted
Refinancing Indebtedness is subordinated in right of payment to, the Notes on
terms at least as favorable to the holders of Notes as those contained in the
documentation governing the Indebtedness being renewed, refunded, refinanced,
replaced, defeased or discharged; and

 

(4)           such
Indebtedness is incurred either by the Company or by the Restricted Subsidiary
who is the obligor on the Indebtedness being renewed, refunded, refinanced,
replaced, defeased or discharged.

 

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

 

“Private Placement Legend”
means the legend set forth in Section 2.06(g)(1) hereof to be placed on all
Notes issued under this Indenture except where otherwise permitted by the
provisions of this Indenture.

 

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

 

“Qualified Receivables
Transaction” means any transaction or series of transactions entered
into by the Company or any of its Subsidiaries pursuant to which the Company or
any of its Subsidiaries sells, conveys or otherwise transfers to (i) a
Receivables Entity (in the case of a transfer by the Company or any of its
Subsidiaries) and (ii) any other Person (in the case of a transfer by a
Receivables Entity), or grants a security interest in and/or pledge, any
Receivables (whether now existing or arising in the future) of the Company or
any of its Subsidiaries, and any Related Assets, which transfer, grant of
security interest or pledge is funded in whole or in part, directly or
indirectly, by the incurrence or issuance by the transferee or any successor
transferee of Indebtedness, fractional undivided interests, or other securities
that are to receive payments from, or that represent interests in, the cash
flow derived from such Receivables and Related Assets or interests in
Receivables and Related Assets, it being understood that a Qualified
Receivables Transaction may involve:

 

(1)           one
or more sequential transfers or pledges of the same Receivables and Related
Assets, or interests therein, and

 

(2)           periodic
transfers or pledges of Receivables and/or revolving transactions in which new
Receivables and Related Assets, or interests therein, are transferred or
pledged upon collection of previously transferred or pledged Receivables and
Related Assets, or interests therein; provided that
the Board of Directors of the Company shall have determined in good faith that
such Qualified Receivables Transaction is economically fair and reasonable to
the Company.

 

20

 

The grant of a security interest in any accounts
receivable of the Company or its Restricted Subsidiaries to secure Indebtedness
incurred pursuant to the Credit Agreement shall not be deemed to be a Qualified
Receivables Transaction.

 

“Receivables”
means accounts receivable (including all rights to payment created by or
arising from the sale of goods, leases of goods or the rendition of services,
no matter how evidenced (including in the form of chattel paper) and whether or
not earned by performance) of the Company or any of its Subsidiaries, whether
now existing or arising in the future; provided that
the amount of any Receivable at any time will be determined in accordance with
GAAP, consistently applied, as of the most recent practicable date.

 

“Receivables Entity”
means a Person (which may or may not be a direct or indirect Subsidiary of the
Company) formed for the purposes of engaging in a Qualified Receivables
Transaction with the Company or any of its Restricted Subsidiaries that (i)
engages in no activities other than in connection with the financing of
Receivables and Related Assets and any business or activities incidental or
related thereto and (ii) is designated by the Board of Directors of the Company
as a Receivables Entity; provided that:

 

(1)           no
portion of the Indebtedness or any other Obligations (contingent or otherwise)
of such Person:

 

(a)           is
guaranteed by the Company or any of its Subsidiaries (excluding guarantees of
Obligations (other than the principal of, and interest on, Indebtedness)
pursuant to Standard Securitization Undertakings);

 

(b)           is
recourse to or obligates the Company or any of its Subsidiaries (other than
such Person if a Subsidiary of the Company) in any way other than pursuant to
Standard Securitization Undertakings; or

 

(c)           subjects
any property or asset of the Company or any of its Subsidiaries (other than
property and assets of such Person and Receivables and Related Assets of the
Company and its Subsidiaries), directly or indirectly, contingently or
otherwise, to the satisfaction thereof, other than pursuant to Standard
Securitization Undertakings;

 

(2)           neither
the Company nor any of its Subsidiaries has any material contract, agreement,
arrangement or understanding with such Person other than on terms no less
favorable to the Company or such Subsidiary than those that might be obtained
at the time from Persons who are not Affiliates of the Company, other than fees
payable in the ordinary course of business in connection with servicing
accounts receivable; and

 

(3)           neither
the Company nor any of its Subsidiaries has any obligation to maintain or
preserve such Person’s financial condition or cause such Person to achieve
certain levels of operating results.

 

Any such designation by the Board of Directors of the
Company will be evidenced to the Trustee by filing with the Trustee a certified
copy of the resolution of the Board of Directors of the Company giving effect
to such designation and an Officers’ Certificate certifying that such
designation complied with the foregoing conditions.

 

“Registration Rights Agreement”
means the Registration Rights Agreement, dated as of October 3, 2006,
among the Company, the Guarantors and the other parties named on the signature
pages thereof, as such agreement may be amended, modified or supplemented from
time to time and, with respect to any Additional Notes, one or more registration
rights agreements among the Company, the Guarantors and the 

 

21

 

other parties thereto, as such agreements may be
amended, modified or supplemented from time to time, relating to rights given
by the Company to the purchasers of Additional Notes to register such
Additional Notes under the Securities Act.

 

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

 

“Regulation S Global Note”
means a Global Note substantially in the form of Exhibit A hereto bearing the
Global Note Legend and the Private Placement Legend and deposited with or on
behalf of and registered in the name of the Depositary or its nominee, issued
in a denomination equal to the outstanding principal amount of the Notes sold
in reliance on Rule 903 of Regulation S.

 

“Related Asset”
means, with respect to any Receivables in a Qualified Receivables Transaction:

 

(1)           any
interests in such Receivables;

 

(2)           all
collateral securing such Receivables;

 

(3)           all
contracts and contract rights, purchase orders, security interests, financing
statements or other documentation in respect of such Receivables;

 

(4)           any
Guarantees, indemnities, warranties or other obligations in respect of such
Receivables;

 

(5)           any
other assets that are customarily transferred or in respect of which security
interests are customarily granted in connection with asset securitization
transactions involving accounts receivable similar to such Receivables; and

 

(6)           any
collections or proceeds of any of the foregoing.

 

“Representatives” means (1) with respect to Indebtedness
under any Credit Facility, the administrative agent under the applicable Credit
Facility, (2) with respect to Indebtedness incurred pursuant to an indenture,
the trustee under the applicable indenture, and (3) with respect to any other
Indebtedness, (a) the agent, trustee or representative of the holders of such
series of Indebtedness that maintains the transfer register for such
Indebtedness or (b) if there is no such agent, trustee or representative with
respect to such series of Indebtedness, the holders of at least 50% in
aggregate principal amount of such Indebtedness outstanding at the applicable
date of determination.

 

“Responsible Officer,”
when used with respect to the Trustee, means any officer within the Corporate
Trust Administration of the Trustee (or any successor group of the Trustee) 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 Definitive Note”
means a Definitive Note bearing the Private Placement Legend.

 

“Restricted Global Note”
means a Global Note bearing the Private Placement Legend.

 

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

 

“Restricted
Subsidiary” of a Person means any direct or indirect Subsidiary of
the referent Person that is not an Unrestricted Subsidiary.

 

22

 

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

 

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

 

“Rule 903”
means Rule 903 promulgated under the Securities Act.

 

“Rule 904”
means Rule 904 promulgated under the Securities Act.

 

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

 

“SEC” means the
Securities and Exchange Commission.

 

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

 

“Senior Debt” means:

 

(1)           all
Indebtedness of the Company or any Guarantor outstanding under Credit
Facilities and all Hedging Obligations and Treasury Management Agreements with
respect thereto;

 

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

 

(3)           all
Obligations with respect to the items listed in the preceding clauses (1) and
(2).

 

Notwithstanding anything
to the contrary in the preceding, Senior Debt will not include:

 

(1)           any
liability for federal, state, local or other taxes owed or owing by the Company
or any Restricted Subsidiary;

 

(2)           any
intercompany Indebtedness of the Company or any of its Subsidiaries to the
Company or any of its Affiliates;

 

(3)           any
trade payables;

 

(4)           the
portion of any Indebtedness that is incurred in violation of this Indenture; or

 

(5)           Indebtedness
which is classified as non-recourse in accordance with GAAP or any unsecured
claim arising in respect thereof by reason of the application of section
1111(b)(1) of the Bankruptcy Code.

 

“Senior Indenture”
means the indenture, dated as of the date of this Indenture, among the Company,
the Guarantors and LaSalle Bank National Association, as trustee, governing the
Senior Notes.

 

“Senior Notes”
means $500.0 million in aggregate principal amount of the Company’s 9.5% Senior
Notes due 2014.

 

23

 

“Senior Note Guarantee”
means the Guarantee by each Guarantor of the Company’s obligations under the
Senior Indenture and the Senior Notes, executed pursuant to the provisions of
the Senior Indenture.

 

“Series D Notes”
means up to $115.0 million in aggregate principal amount of Royal Group
Technologies Limited’s 7.10% senior unsecured notes, Series D, due November 14,
2007.

 

“71/8%
Notes” means $100.0 million in aggregate principal amount of 71/8%
senior notes of the Company due December 15, 2013.

 

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

 

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

 

“Standard Securitization
Undertakings” means representations, warranties, covenants,
repurchase obligations and indemnities entered into by the Company or any of
its Subsidiaries in the ordinary course of business in connection with a
Qualified Receivables Transaction and that are reasonably customary for a
seller or servicer of Receivables in a Qualified Receivables Transaction.

 

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

 

“Subordinated Obligations” means any Indebtedness of the
Company or a Restricted
Subsidiary (whether outstanding on the date of this Indenture or thereafter
incurred) that is contractually subordinate or junior in right of payment to the
Notes or Note Guarantees pursuant to a written agreement to become
contractually subordinated in right of payment to the Notes; provided, however, that no Indebtedness will be deemed to be
a Subordinated Obligation of the Company or a Restricted Subsidiary solely by virtue of being secured on a
first priority or a junior Lien basis.

 

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

 

(1)           any
corporation, association or other business entity of which more than 50% of the
total voting power of shares of Capital Stock entitled (without regard to the
occurrence of any contingency and after giving effect to any voting agreement
or stockholders’ agreement that effectively transfers voting power) to vote in
the election of directors, managers or trustees of the corporation, association
or other business entity is at the time owned or controlled, directly or
indirectly, by that Person or one or more of the other Subsidiaries of that
Person (or a combination thereof); and

 

(2)           any
partnership (a) the sole general partner or the managing general partner of
which is such Person or a Subsidiary of such Person or (b) the only general
partners of which are that Person or one or more Subsidiaries of that Person
(or any combination thereof).

 

“TIA” means the
Trust Indenture Act of 1939, as amended (15 U.S.C. §§ 77aaa-77bbbb).

 

24

 

“Treasury Management
Agreement” means any agreement governing the provision of treasury
or cash management services, including deposit accounts, overdraft, credit or
debit card, funds transfer, automated clearinghouse, zero balance accounts,
returned check concentration, controlled disbursement, lockbox, account
reconciliation and reporting and trade finance services and other cash
management services.

 

“Transactions”
means (i) the acquisition of Royal Group Technologies by the Company, (ii) the
repayment of the Series D Notes, (iii) the repayment of the Medium Term Notes,
(iv) the refinancing of the Company’s existing senior secured credit facility,
(v) the entry into the Credit Agreement, and (vi) offering of the Notes and the
Senior Notes.

 

“Treasury Rate”
means, as of any redemption date, the yield to maturity as of such redemption
date of United States Treasury securities with a constant maturity (as compiled
and published in the most recent Federal Reserve Statistical Release H.15 (519)
that has become publicly available at least two business days prior to the
redemption date (or, if such Statistical Release is no longer published, any
publicly available source of similar market data)) most nearly equal to the
period from the redemption date to October 15, 2011; provided,
however, that if the period from the redemption date to October 15,
2011, is less than one year, the weekly average yield on actually traded United
States Treasury securities adjusted to a constant maturity of one year will be
used.

 

“Trustee” means
LaSalle Bank National Association until a successor replaces it in accordance
with the applicable provisions of this Indenture and thereafter means the
successor serving hereunder.

 

“Unrestricted Definitive Note”
means a Definitive Note that does not bear and is not required to bear the
Private Placement Legend.

 

“Unrestricted Global Note”
means a Global Note that does not bear and is not required to bear the Private
Placement Legend.

 

“Unrestricted Subsidiary”
means any:

 

(1)           Subsidiary
of the Company that is designated by the Board of Directors of the Company as
an Unrestricted Subsidiary pursuant to a resolution of the Board of Directors,
but only to the extent that such Subsidiary:

 

(a)           has no
Indebtedness other than Non-Recourse Debt;

 

(b)           except as
permitted by Section 4.11 hereof is not party to any agreement, contract,
arrangement or understanding with the Company or any Restricted Subsidiary of
the Company unless the terms of any such agreement, contract, arrangement or
understanding are no less favorable to the Company or such Restricted
Subsidiary than those that might be obtained at the time from Persons who are
not Affiliates of the Company;

 

(c)           is a
Person with respect to which neither the Company nor any of its Restricted
Subsidiaries has any direct or indirect obligation (a) to subscribe for
additional Equity Interests or (b) to maintain or preserve such Person’s
financial condition or to cause such Person to achieve any specified levels of
operating results; and

 

(d)           has not
guaranteed or otherwise directly or indirectly provided credit support for any
Indebtedness of the Company or any of its Restricted Subsidiaries; and

 

25

 

(2)           Subsidiary
of an Unrestricted Subsidiary.

 

“U.S. Dollar Equivalent”
means with respect to any monetary amount in a currency other than U.S.
dollars, at any time for determination thereof, the amount of U.S. dollars
obtained by converting such foreign currency involved in such computation into
U.S. dollars at the spot rate for the purchase of U.S. dollars with the
applicable foreign currency as published in The Wall Street Journal under the
heading “Exchange Rates” on the date two business days prior to such
determination.

 

“U.S. Person”
means a U.S. Person as defined in Rule 902(k) promulgated under the Securities
Act.

 

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

 

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

 

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

 

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

 

Section 1.02           Other Definitions.

 

	
   

  	
   

  	
  Defined in

  	
   

  
	
  Term

  	
   

  	
  Section

  	
   

  
	
  “Additional Credit Facility
  Obligor”

  	
   

  	
  4.17

  	
   

  
	
  “Affiliate Transaction”

  	
   

  	
  4.11

  	
   

  
	
  “Asset Sale Offer”

  	
   

  	
  3.09

  	
   

  
	
  “Authentication Order”

  	
   

  	
  2.02

  	
   

  
	
  “Change of Control Offer”

  	
   

  	
  4.15

  	
   

  
	
  “Change of Control Payment”

  	
   

  	
  4.15

  	
   

  
	
  “Change of Control Payment
  Date”

  	
   

  	
  4.15

  	
   

  
	
  “Covenant Defeasance”

  	
   

  	
  8.03

  	
   

  
	
  “DTC”

  	
   

  	
  2.03

  	
   

  
	
  “Event of Default”

  	
   

  	
  6.01

  	
   

  
	
  “Excess Proceeds”

  	
   

  	
  4.10

  	
   

  
	
  “incur”

  	
   

  	
  4.09

  	
   

  
	
  “Legal Defeasance”

  	
   

  	
  8.02

  	
   

  
	
  “Offer Amount”

  	
   

  	
  3.09

  	
   

  
	
  “Offer Period”

  	
   

  	
  3.09

  	
   

  
	
  “Paying Agent”

  	
   

  	
  2.03

  	
   

  
	
  “Payment Blockage Notice”

  	
   

  	
  10.03

  	
   

  
	
  “Payment Blockage Period”

  	
   

  	
  10.03

  	
   

  
	
  “Permitted Debt”

  	
   

  	
  4.09

  	
   

  
	
  “Payment Default”

  	
   

  	
  6.01

  	
   

  
	
  “Purchase Date”

  	
   

  	
  3.09

  	
   

  
	
  “Registrar”

  	
   

  	
  2.03

  	
   

  
	
  “Restricted Payments”

  	
   

  	
  4.07

  	
   

  

 

26

 

Section 1.03           Incorporation by Reference of Trust Indenture Act.

 

Whenever this Indenture refers to a provision of the
TIA, the provision is incorporated by reference in and made a part of this
Indenture.

 

The following TIA terms used in this Indenture have
the following meanings:

 

“indenture securities” means the
Notes;

 

“indenture security Holder” means
a Holder of a Note;

 

“indenture to be qualified” means
this Indenture;

 

“indenture trustee” or “institutional trustee” means the Trustee; and

 

“obligor” on the Notes and the
Note Guarantees means the Company and the Guarantors, respectively, and any successor
obligor upon the Notes and the Note Guarantees, respectively.

 

All other terms used in this Indenture that are
defined by the TIA, defined by TIA reference to another statute or defined by
SEC rule under the TIA have the meanings so assigned to them.

 

Section 1.04           Rules of Construction.

 

Unless the context otherwise requires:

 

(1)           a term has the meaning assigned to it;

 

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

 

(3)           “or” is not exclusive;

 

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

 

(5)           “will” shall be interpreted to express a command;

 

(6)           provisions apply to successive events and
transactions; and

 

(7)           references to sections of or rules under the
Securities Act will be deemed to include substitute, replacement of successor
sections or rules adopted by the SEC from time to time.

 

ARTICLE 2

THE NOTES

 

Section 2.01           Form and Dating.

 

(a)           General. The Notes and the Trustee’s
certificate of authentication will be substantially in the form of Exhibits A. The
Notes may have notations, legends or endorsements required by law, stock
exchange rule or usage. Each Note will be dated the date of its authentication.
The Notes shall be in denominations of $2,000 and integral multiples of
$1,000 in excess thereof.

 

27

 

The terms and provisions contained in the Notes will
constitute, and are hereby expressly made, a part of this Indenture and the
Company, the Guarantors and the Trustee, by their execution and delivery of
this Indenture, expressly agree to such terms and provisions and to be bound
thereby. However, to the extent any provision of any Note conflicts with the
express provisions of this Indenture, the provisions of this Indenture shall
govern and be controlling.

 

(b)           Global Notes. Notes issued in global form will
be substantially in the form of Exhibit A hereto (including the Global Note
Legend thereon and the “Schedule of Exchanges of Interests in the Global Note”
attached thereto). Notes issued in definitive form will be substantially in the
form of Exhibit A hereto (but without the Global Note Legend thereon and
without the “Schedule of Exchanges of Interests in the Global Note” attached
thereto). Each Global Note will represent such of the outstanding Notes as will
be specified therein and each shall provide that it represents the aggregate
principal amount of outstanding Notes from time to time endorsed thereon and
that the aggregate principal amount of outstanding Notes represented thereby
may from time to time be reduced or increased, as appropriate, to reflect
exchanges and redemptions. Any endorsement of a Global Note to reflect the
amount of any increase or decrease in the aggregate principal amount of
outstanding Notes represented thereby will be made by the Trustee or the
Custodian, at the direction of the Trustee, in accordance with instructions
given by the Holder thereof as required by Section 2.06 hereof.

 

Section 2.02           Execution and Authentication.

 

At least one Officer must sign the Notes for the
Company by manual or facsimile signature.

 

If an Officer whose signature is on a Note no longer
holds that office at the time a Note is authenticated, the Note will
nevertheless be valid.

 

A Note will not be valid until authenticated by the
manual or facsimile signature of the Trustee. The signature will be conclusive
evidence that the Note has been authenticated under this Indenture.

 

The Trustee will, upon receipt of a written order of
the Company signed by an Officer of the Company (an “Authentication
Order”), authenticate Notes for original issue that may be validly
issued under this Indenture, including any Additional Notes. The aggregate
principal amount of Notes outstanding at any time may not exceed the aggregate
principal amount of Notes authorized for issuance by the Company pursuant to
one or more Authentication Orders, except as provided in Section 2.07 hereof.

 

The Trustee may appoint an authenticating agent
acceptable to the Company to authenticate Notes. An authenticating agent may
authenticate Notes whenever the Trustee may do so. Each reference in this
Indenture to authentication by the Trustee includes authentication by such
agent. An authenticating agent has the same rights as an Agent to deal with
Holders or an Affiliate of the Company.

 

Section 2.03           Registrar and Paying Agent.

 

The Company will maintain an office or agency where
Notes may be presented for registration of transfer or for exchange (“Registrar”) and an office or agency where Notes may be
presented for payment (“Paying Agent”).
The Registrar will keep a register of the Notes and of their transfer and
exchange. The Company may appoint one or more co-registrars and one or more
additional paying agents. The term “Registrar” includes any co-registrar and
the term “Paying Agent” includes any additional paying agent. The Company may
change any Paying Agent or Registrar without notice to any Holder. The Company
will notify the Trustee in writing of the name and address of any Agent not a
party to this Indenture. If 

 

28

 

the Company fails to
appoint or maintain another entity as Registrar or Paying Agent, the Trustee
shall act as such. The Company or any of its Subsidiaries may act as Paying
Agent or Registrar.

 

The Company initially appoints The Depository Trust
Company (“DTC”) to act as Depositary with respect
to the Global Notes.

 

The Company initially appoints the Trustee to act as
the Registrar and Paying Agent and to act as Custodian with respect to the
Global Notes.

 

Section 2.04           Paying Agent to Hold Money in Trust.

 

The Company will require each Paying Agent other than
the Trustee to agree in writing that the Paying Agent will hold in trust for
the benefit of Holders or the Trustee all money held by the Paying Agent for
the payment of principal, premium or Additional Interest, if any, or interest
on the Notes, and will notify the Trustee of any default by the Company in
making any such payment. While any such default continues, the Trustee may
require a Paying Agent to pay all money held by it to the Trustee. The Company
at any time may require a Paying Agent to pay all money held by it to the
Trustee. Upon payment over to the Trustee, the Paying Agent (if other than the
Company or a Subsidiary) will have no further liability for the money. If the
Company or a Subsidiary acts as Paying Agent, it will segregate and hold in a
separate trust fund for the benefit of the Holders all money held by it as
Paying Agent. Upon any bankruptcy or reorganization proceedings relating to the
Company, the Trustee will serve as Paying Agent for the Notes.

 

Section 2.05           Holder Lists.

 

The Trustee will preserve in as current a form as is
reasonably practicable the most recent list available to it of the names and
addresses of all Holders and shall otherwise comply with TIA § 312(a). If
the Trustee is not the Registrar, the Company will furnish to the Trustee at
least seven Business Days before each interest payment date and at such other
times as the Trustee may request in writing, a list in such form and as of such
date as the Trustee may reasonably require of the names and addresses of the
Holders of Notes and the Company shall otherwise comply with TIA § 312(a).

 

Section 2.06           Transfer and Exchange.

 

(a)           Transfer and Exchange of Global
Notes. A
Global Note may not be transferred except as a whole by the Depositary to a
nominee of the Depositary, by a nominee of the Depositary to the Depositary or
to another nominee of the Depositary, or by the Depositary or any such nominee
to a successor Depositary or a nominee of such successor Depositary. All Global
Notes will be exchanged by the Company for Definitive Notes if:

 

(1)           the Company delivers to the Trustee notice from the
Depositary that it is unwilling or unable to continue to act as Depositary or
that it is no longer a clearing agency registered under the Exchange Act and,
in either case, a successor Depositary is not appointed by the Company within
120 days after the date of such notice from the Depositary;

 

(2)           the Company in its sole discretion determines that the
Global Notes (in whole but not in part) should be exchanged for Definitive
Notes and delivers a written notice to such effect to the Trustee; or

 

(3)           there has occurred and is continuing a Default with
respect to the Notes.

 

29

 

Upon the occurrence of either of the preceding events
in (1) or (2) above, Definitive Notes shall be issued in such names as the
Depositary shall instruct the Trustee. Global Notes also may be exchanged or
replaced, in whole or in part, as provided in Sections 2.07 and 2.10 hereof. Every
Note authenticated and delivered in exchange for, or in lieu of, a Global Note
or any portion thereof, pursuant to this Section 2.06 or Section 2.07 or 2.10
hereof, shall be authenticated and delivered in the form of, and shall be, a
Global Note. A Global Note may not be exchanged for another Note other than as
provided in this Section 2.06(a), however, beneficial interests in a Global
Note may be transferred and exchanged as provided in Section 2.06(b), (c) or
(f) hereof.

 

(b)           Transfer and Exchange of
Beneficial Interests in the Global Notes. The transfer and exchange of beneficial interests in
the Global Notes will be effected through the Depositary, in accordance with
the provisions of this Indenture and the Applicable Procedures. Beneficial
interests in the Restricted Global Notes will be subject to restrictions on
transfer comparable to those set forth herein to the extent required by the
Securities Act. Transfers of beneficial interests in the Global Notes also will
require compliance with either subparagraph (1) or (2) below, as applicable, as
well as one or more of the other following subparagraphs, as applicable:

 

(1)           Transfer of Beneficial Interests in the Same Global
Note. Beneficial
interests in any Restricted Global Note may be transferred to Persons who take
delivery thereof in the form of a beneficial interest in the same Restricted
Global Note in accordance with the transfer restrictions set forth in the
Private Placement Legend; provided, however,
that prior to the expiration of the Restricted Period, transfers of beneficial
interests in the Regulation S Global Note may not be made to a U.S. Person or
for the account or benefit of a U.S. Person (other than an Initial Purchaser).
Beneficial interests in any Unrestricted Global Note may be transferred to
Persons who take delivery thereof in the form of a beneficial interest in an
Unrestricted Global Note. No written orders or instructions shall be required
to be delivered to the Registrar to effect the transfers described in this
Section 2.06(b)(1).

 

(2)           All Other Transfers and Exchanges of Beneficial
Interests in Global Notes. In connection with all transfers and exchanges of
beneficial interests that are not subject to Section 2.06(b)(1) above, the
transferor of such beneficial interest must deliver to the Registrar either:

 

(A)          both:

 

(i)            a written order from a Participant
or an Indirect Participant given to the Depositary in accordance with the
Applicable Procedures directing the Depositary to credit or cause to be
credited a beneficial interest in another Global Note in an amount equal to the
beneficial interest to be transferred or exchanged; and

 

(ii)           instructions given in accordance
with the Applicable Procedures containing information regarding the Participant
account to be credited with such increase; or

 

(B)           both:

 

(i)            a written order from a Participant
or an Indirect Participant given to the Depositary in accordance with the
Applicable Procedures directing the Depositary to cause to be issued a
Definitive Note in an amount equal to the beneficial interest to be transferred
or exchanged; and

 

30

 

(ii)           instructions given by the Depositary
to the Registrar containing information regarding the Person in whose name such
Definitive Note shall be registered to effect the transfer or exchange referred
to in (1) above;

 

Upon consummation of an Exchange Offer by the Company
in accordance with Section 2.06(f) hereof, the requirements of this Section
2.06(b)(2) shall be deemed to have been satisfied upon receipt by the Registrar
of the instructions contained in the Letter of Transmittal delivered by the
Holder of such beneficial interests in the Restricted Global Notes. Upon
satisfaction of all of the requirements for transfer or exchange of beneficial
interests in Global Notes contained in this Indenture and the Notes or
otherwise applicable under the Securities Act, the Trustee shall adjust the
principal amount of the relevant Global Note(s) pursuant to Section 2.06(h)
hereof.

 

(3)           Transfer of Beneficial Interests to Another
Restricted Global Note. A beneficial interest in any Restricted Global Note
may be transferred to a Person who takes delivery thereof in the form of a
beneficial interest in another Restricted Global Note if the transfer complies
with the requirements of Section 2.06(b)(2) above and the Registrar receives
the following:

 

(A)          if the transferee will take delivery in the form of a
beneficial interest in the 144A Global Note, then the transferor must deliver a
certificate in the form of Exhibit B hereto, including the certifications in
item (1) thereof;

 

(B)           if the transferee will take delivery in the form of a
beneficial interest in the Regulation S Global Note, then the transferor must
deliver a certificate in the form of Exhibit B hereto, including the
certifications in item (2) thereof; and

 

(C)           if the transferee will take delivery in the form of a
beneficial interest in the IAI Global Note, then the transferor must deliver a
certificate in the form of Exhibit B hereto, including the certifications,
certificates and Opinion of Counsel required by item (3) thereof, if
applicable.

 

(4)           Transfer and Exchange of Beneficial Interests in a
Restricted Global Note for Beneficial Interests in an Unrestricted Global Note.
A beneficial
interest in any Restricted Global Note may be exchanged by any holder thereof
for a beneficial interest in an Unrestricted Global Note or transferred to a
Person who takes delivery thereof in the form of a beneficial interest in an
Unrestricted Global Note if the exchange or transfer complies with the
requirements of Section 2.06(b)(2) above and:

 

(A)          such exchange or transfer is effected pursuant to the
Exchange Offer in accordance with the Registration Rights Agreement and the
holder of the beneficial interest to be transferred, in the case of an
exchange, or the transferee, in the case of a transfer, certifies in the
applicable Letter of Transmittal that it is not (i) a Broker-Dealer, (ii) a
Person participating in the distribution of the Exchange Notes or (iii) a
Person who is an affiliate (as defined in Rule 144) of the Company;

 

(B)           such transfer is effected pursuant to the Shelf
Registration Statement in accordance with the Registration Rights Agreement;

 

(C)           such transfer is effected by a Broker-Dealer pursuant
to the Exchange Offer Registration Statement in accordance with the
Registration Rights Agreement; or

 

(D)          the Registrar receives the following:

 

31

 

(i)            if the holder of such beneficial
interest in a Restricted Global Note proposes to exchange such beneficial
interest for a beneficial interest in an Unrestricted Global Note, a
certificate from such holder in the form of Exhibit C hereto, including the
certifications in item (1)(a) thereof; or

 

(ii)           if the holder of such beneficial
interest in a Restricted Global Note proposes to transfer such beneficial
interest to a Person who shall take delivery thereof in the form of a
beneficial interest in an Unrestricted Global Note, a certificate from such
holder in the form of Exhibit B hereto, including the certifications in item
(4) thereof;

 

and, in each such case set forth in this subparagraph
(D), if the Registrar so requests or if the Applicable Procedures so require,
an Opinion of Counsel in form reasonably acceptable to the Registrar to the
effect that such exchange or transfer is in compliance with the Securities Act
and that the restrictions on transfer contained herein and in the Private
Placement Legend are no longer required in order to maintain compliance with
the Securities Act.

 

If any such transfer is effected pursuant to
subparagraph (B) or (D) above at a time when an Unrestricted Global Note has
not yet been issued, the Company shall issue and, upon receipt of an
Authentication Order in accordance with Section 2.02 hereof, the Trustee shall
authenticate one or more Unrestricted Global Notes in an aggregate principal
amount equal to the aggregate principal amount of beneficial interests
transferred pursuant to subparagraph (B) or (D) above.

 

Beneficial interests in an Unrestricted Global Note
cannot be exchanged for, or transferred to Persons who take delivery thereof in
the form of, a beneficial interest in a Restricted Global Note.

 

(c)           Transfer or Exchange of
Beneficial Interests for Definitive Notes.

 

(1)           Beneficial Interests in Restricted Global Notes to
Restricted Definitive Notes. If any holder of a beneficial interest in a Restricted
Global Note proposes to exchange such beneficial interest for a Restricted
Definitive Note or to transfer such beneficial interest to a Person who takes
delivery thereof in the form of a Restricted Definitive Note, then, upon
receipt by the Registrar of the following documentation:

 

(A)          if the holder of such beneficial interest in a
Restricted Global Note proposes to exchange such beneficial interest for a
Restricted Definitive Note, a certificate from such holder in the form of
Exhibit C hereto, including the certifications in item (2)(a) thereof;

 

(B)           if such beneficial interest is being transferred to a
QIB in accordance with Rule 144A, a certificate to the effect set forth in
Exhibit B hereto, including the certifications in item (1) thereof;

 

(C)           if such beneficial interest is being transferred to a
Non-U.S. Person in an offshore transaction in accordance with Rule 903 or Rule
904, a certificate to the effect set forth in Exhibit B hereto, including the
certifications in item (2) thereof;

 

(D)          if such beneficial interest is being transferred
pursuant to an exemption from the registration requirements of the Securities
Act in accordance with Rule 144, a 

 

32

 

certificate to the effect set forth in Exhibit B hereto,
including the certifications in item (3)(a) thereof;

 

(E)           if such beneficial interest is being transferred to an
Institutional Accredited Investor in reliance on an exemption from the
registration requirements of the Securities Act other than those listed in
subparagraphs (B) through (D) above, a certificate to the effect set forth in Exhibit
B hereto, including the certifications, certificates and Opinion of Counsel
required by item (3) thereof, if applicable;

 

(F)           if such beneficial interest is being transferred to
the Company or any of its Subsidiaries, a certificate to the effect set forth
in Exhibit B hereto, including the certifications in item (3)(b) thereof; or

 

(G)           if such beneficial interest is being transferred
pursuant to an effective registration statement under the Securities Act, a
certificate to the effect set forth in Exhibit B hereto, including the
certifications in item (3)(c) thereof,

 

the Trustee shall cause the aggregate principal amount
of the applicable Global Note to be reduced accordingly pursuant to Section
2.06(h) hereof, and the Company shall execute and the Trustee shall
authenticate and deliver to the Person designated in the instructions a
Definitive Note in the appropriate principal amount. Any Definitive Note issued
in exchange for a beneficial interest in a Restricted Global Note pursuant to
this Section 2.06(c) shall be registered in such name or names and in such
authorized denomination or denominations as the holder of such beneficial
interest shall instruct the Registrar through instructions from the Depositary
and the Participant or Indirect Participant. The Trustee shall deliver such
Definitive Notes to the Persons in whose names such Notes are so registered. Any
Definitive Note issued in exchange for a beneficial interest in a Restricted
Global Note pursuant to this Section 2.06(c)(1) shall bear the Private
Placement Legend and shall be subject to all restrictions on transfer contained
therein.

 

(2)           Beneficial Interests in Restricted Global Notes to
Unrestricted Definitive Notes. A holder of a beneficial interest in a Restricted
Global Note may exchange such beneficial interest for an Unrestricted
Definitive Note or may transfer such beneficial interest to a Person who takes
delivery thereof in the form of an Unrestricted Definitive Note only if:

 

(A)          such exchange or transfer is effected pursuant to the
Exchange Offer in accordance with the Registration Rights Agreement and the
holder of such beneficial interest, in the case of an exchange, or the
transferee, in the case of a transfer, certifies in the applicable Letter of
Transmittal that it is not (i) a Broker-Dealer, (ii) a Person participating in
the distribution of the Exchange Notes or (iii) a Person who is an affiliate
(as defined in Rule 144) of the Company;

 

(B)           such transfer is effected pursuant to the Shelf
Registration Statement in accordance with the Registration Rights Agreement;

 

(C)           such transfer is effected by a Broker-Dealer pursuant
to the Exchange Offer Registration Statement in accordance with the
Registration Rights Agreement; or

 

(D)          the Registrar receives the following:

 

(i)            if the holder of such beneficial
interest in a Restricted Global Note proposes to exchange such beneficial
interest for an Unrestricted Definitive 

 

33

 

Note, a certificate from such holder
in the form of Exhibit C hereto, including the certifications in item (1)(b)
thereof; or

 

(ii)           if the holder of such beneficial
interest in a Restricted Global Note proposes to transfer such beneficial
interest to a Person who shall take delivery thereof in the form of an Unrestricted
Definitive Note, a certificate from such holder in the form of Exhibit B
hereto, including the certifications in item (4) thereof;

 

and, in each such case set forth in this subparagraph
(D), if the Registrar so requests or if the Applicable Procedures so require,
an Opinion of Counsel in form reasonably acceptable to the Registrar to the
effect that such exchange or transfer is in compliance with the Securities Act
and that the restrictions on transfer contained herein and in the Private
Placement Legend are no longer required in order to maintain compliance with
the Securities Act.

 

(3)           Beneficial Interests in Unrestricted Global Notes
to Unrestricted Definitive Notes. If any holder of a beneficial interest in an
Unrestricted Global Note proposes to exchange such beneficial interest for a
Definitive Note or to transfer such beneficial interest to a Person who takes
delivery thereof in the form of a Definitive Note, then, upon satisfaction of
the conditions set forth in Section 2.06(b)(2) hereof, the Trustee will cause
the aggregate principal amount of the applicable Global Note to be reduced
accordingly pursuant to Section 2.06(h) hereof, and the Company will execute
and the Trustee will authenticate and deliver to the Person designated in the
instructions a Definitive Note in the appropriate principal amount. Any
Definitive Note issued in exchange for a beneficial interest pursuant to this
Section 2.06(c)(3) will be registered in such name or names and in such
authorized denomination or denominations as the holder of such beneficial
interest requests through instructions to the Registrar from or through the
Depositary and the Participant or Indirect Participant. The Trustee will
deliver such Definitive Notes to the Persons in whose names such Notes are so
registered. Any Definitive Note issued in exchange for a beneficial interest
pursuant to this Section 2.06(c)(3) will not bear the Private Placement Legend.

 

(d)           Transfer and Exchange of
Definitive Notes for Beneficial Interests.

 

(1)           Restricted Definitive Notes to Beneficial Interests
in Restricted Global Notes. If any Holder of a Restricted Definitive Note proposes
to exchange such Note for a beneficial interest in a Restricted Global Note or
to transfer such Restricted Definitive Notes to a Person who takes delivery
thereof in the form of a beneficial interest in a Restricted Global Note, then,
upon receipt by the Registrar of the following documentation:

 

(A)          if the Holder of such Restricted Definitive Note
proposes to exchange such Note for a beneficial interest in a Restricted Global
Note, a certificate from such Holder in the form of Exhibit C hereto, including
the certifications in item (2)(b) thereof;

 

(B)           if such Restricted Definitive Note is being
transferred to a QIB in accordance with Rule 144A, a certificate to the effect
set forth in Exhibit B hereto, including the certifications in item (1)
thereof;

 

(C)           if such Restricted Definitive Note is being
transferred to a Non-U.S. Person in an offshore transaction in accordance with
Rule 903 or Rule 904, a certificate to the effect set forth in Exhibit B
hereto, including the certifications in item (2) thereof;

 

34

 

(D)          if such Restricted Definitive Note is being
transferred pursuant to an exemption from the registration requirements of the
Securities Act in accordance with Rule 144, a certificate to the effect set
forth in Exhibit B hereto, including the certifications in item (3)(a) thereof;

 

(E)           if such Restricted Definitive Note is being
transferred to an Institutional Accredited Investor in reliance on an exemption
from the registration requirements of the Securities Act other than those
listed in subparagraphs (B) through (D) above, a certificate to the effect set
forth in Exhibit B hereto, including the certifications, certificates and
Opinion of Counsel required by item (3) thereof, if applicable;

 

(F)           if such Restricted Definitive Note is being
transferred to the Company or any of its Subsidiaries, a certificate to the
effect set forth in Exhibit B hereto, including the certifications in item
(3)(b) thereof; or

 

(G)           if such Restricted Definitive Note is being
transferred pursuant to an effective registration statement under the
Securities Act, a certificate to the effect set forth in Exhibit B hereto,
including the certifications in item (3)(c) thereof,

 

the Trustee will cancel the Restricted Definitive
Note, increase or cause to be increased the aggregate principal amount of, in
the case of clause (A) above, the appropriate Restricted Global Note, in the
case of clause (B) above, the 144A Global Note, in the case of clause (C)
above, the Regulation S Global Note, and in all other cases, the IAI Global
Note.

 

(2)           Restricted Definitive Notes to Beneficial Interests
in Unrestricted Global Notes. A Holder of a Restricted Definitive Note may exchange
such Note for a beneficial interest in an Unrestricted Global Note or transfer
such Restricted Definitive Note to a Person who takes delivery thereof in the
form of a beneficial interest in an Unrestricted Global Note only if:

 

(A)          such exchange or transfer is effected pursuant to the
Exchange Offer in accordance with the Registration Rights Agreement and the
Holder, in the case of an exchange, or the transferee, in the case of a
transfer, certifies in the applicable Letter of Transmittal that it is not (i)
a Broker-Dealer, (ii) a Person participating in the distribution of the
Exchange Notes or (iii) a Person who is an affiliate (as defined in Rule 144)
of the Company;

 

(B)           such transfer is effected pursuant to the Shelf
Registration Statement in accordance with the Registration Rights Agreement;

 

(C)           such transfer is effected by a Broker-Dealer pursuant
to the Exchange Offer Registration Statement in accordance with the
Registration Rights Agreement; or

 

(D)          the Registrar receives the following:

 

(i)            if the Holder of such Definitive
Notes proposes to exchange such Notes for a beneficial interest in the
Unrestricted Global Note, a certificate from such Holder in the form of Exhibit
C hereto, including the certifications in item (1)(c) thereof; or

 

35

 

(ii)           if the Holder of such Definitive
Notes proposes to transfer such Notes to a Person who shall take delivery
thereof in the form of a beneficial interest in the Unrestricted Global Note, a
certificate from such Holder in the form of Exhibit B hereto, including the
certifications in item (4) thereof;

 

and, in each such case set forth in this subparagraph
(D), if the Registrar so requests or if the Applicable Procedures so require,
an Opinion of Counsel in form reasonably acceptable to the Registrar to the
effect that such exchange or transfer is in compliance with the Securities Act
and that the restrictions on transfer contained herein and in the Private
Placement Legend are no longer required in order to maintain compliance with
the Securities Act.

 

Upon satisfaction of the conditions of any of the
subparagraphs in this Section 2.06(d)(2), the Trustee will cancel the
Definitive Notes and increase or cause to be increased the aggregate principal
amount of the Unrestricted Global Note.

 

(3)           Unrestricted Definitive Notes to Beneficial
Interests in Unrestricted Global Notes. A Holder of an Unrestricted Definitive Note may
exchange such Note for a beneficial interest in an Unrestricted Global Note or
transfer such Definitive Notes to a Person who takes delivery thereof in the
form of a beneficial interest in an Unrestricted Global Note at any time. Upon
receipt of a request for such an exchange or transfer, the Trustee will cancel
the applicable Unrestricted Definitive Note and increase or cause to be
increased the aggregate principal amount of one of the Unrestricted Global
Notes.

 

If any such exchange or transfer from a Definitive
Note to a beneficial interest is effected pursuant to subparagraphs (2)(B),
(2)(D) or (3) above at a time when an Unrestricted Global Note has not yet been
issued, the Company will issue and, upon receipt of an Authentication Order in
accordance with Section 2.02 hereof, the Trustee will authenticate one or more
Unrestricted Global Notes in an aggregate principal amount equal to the
principal amount of Definitive Notes so transferred.

 

(e)           Transfer and Exchange of
Definitive Notes for Definitive Notes. Upon request by a Holder of Definitive Notes and such
Holder’s compliance with the provisions of this Section 2.06(e), the Registrar
will register the transfer or exchange of Definitive Notes. Prior to such
registration of transfer or exchange, the requesting Holder must present or
surrender to the Registrar the Definitive Notes duly endorsed or accompanied by
a written instruction of transfer in form satisfactory to the Registrar duly
executed by such Holder or by its attorney, duly authorized in writing. In
addition, the requesting Holder must provide any additional certifications,
documents and information, as applicable, required pursuant to the following
provisions of this Section 2.06(e).

 

(1)           Restricted Definitive Notes to Restricted
Definitive Notes. Any
Restricted Definitive Note may be transferred to and registered in the name of
Persons who take delivery thereof in the form of a Restricted Definitive Note
if the Registrar receives the following:

 

(A)          if the transfer will be made pursuant to Rule 144A,
then the transferor must deliver a certificate in the form of Exhibit B hereto,
including the certifications in item (1) thereof;

 

(B)           if the transfer will be made pursuant to Rule 903 or
Rule 904, then the transferor must deliver a certificate in the form of Exhibit
B hereto, including the certifications in item (2) thereof; and

 

36

 

(C)           if the transfer will be made pursuant to any other
exemption from the registration requirements of the Securities Act, then the
transferor must deliver a certificate in the form of Exhibit B hereto,
including the certifications, certificates and Opinion of Counsel required by
item (3) thereof, if applicable.

 

(2)           Restricted Definitive Notes to Unrestricted
Definitive Notes. Any
Restricted Definitive Note may be exchanged by the Holder thereof for an
Unrestricted Definitive Note or transferred to a Person or Persons who take
delivery thereof in the form of an Unrestricted Definitive Note if:

 

(A)          such exchange or transfer is effected pursuant to the
Exchange Offer in accordance with the Registration Rights Agreement and the
Holder, in the case of an exchange, or the transferee, in the case of a
transfer, certifies in the applicable Letter of Transmittal that it is not (i)
a Broker-Dealer, (ii) a Person participating in the distribution of the
Exchange Notes or (iii) a Person who is an affiliate (as defined in Rule 144)
of the Company;

 

(B)           any such transfer is effected pursuant to the Shelf
Registration Statement in accordance with the Registration Rights Agreement;

 

(C)           any such transfer is effected by a Broker-Dealer
pursuant to the Exchange Offer Registration Statement in accordance with the
Registration Rights Agreement; or

 

(D)          the Registrar receives the following:

 

(i)            if the Holder of such Restricted
Definitive Notes proposes to exchange such Notes for an Unrestricted Definitive
Note, a certificate from such Holder in the form of Exhibit C hereto, including
the certifications in item (1)(d) thereof; or

 

(ii)           if the Holder of such Restricted
Definitive Notes proposes to transfer such Notes to a Person who shall take
delivery thereof in the form of an Unrestricted Definitive Note, a certificate
from such Holder in the form of Exhibit B hereto, including the certifications
in item (4) thereof;

 

and, in each such case set forth in this subparagraph
(D), if the Registrar so requests, an Opinion of Counsel in form reasonably
acceptable to the Registrar to the effect that such exchange or transfer is in
compliance with the Securities Act and that the restrictions on transfer contained
herein and in the Private Placement Legend are no longer required in order to
maintain compliance with the Securities Act.

 

(3)           Unrestricted Definitive Notes to Unrestricted
Definitive Notes. A
Holder of Unrestricted Definitive Notes may transfer such Notes to a Person who
takes delivery thereof in the form of an Unrestricted Definitive Note. Upon
receipt of a request to register such a transfer, the Registrar shall register
the Unrestricted Definitive Notes pursuant to the instructions from the Holder
thereof.

 

(f)            Exchange Offer. Upon the occurrence of the Exchange
Offer in accordance with the Registration Rights Agreement, the Company will
issue and, upon receipt of an Authentication Order in accordance with Section
2.02 hereof, the Trustee will authenticate:

 

37

 

(1)           one or more Unrestricted Global Notes in an aggregate
principal amount equal to the principal amount of the beneficial interests in
the Restricted Global Notes accepted for exchange in the Exchange Offer by
Persons that certify in the applicable Letters of Transmittal that (A) they are
not Broker-Dealers, (B) they are not participating in a distribution of the
Exchange Notes and (C) they are not affiliates (as defined in Rule 144) of the
Company; and

 

(2)           Unrestricted Definitive Notes in an aggregate
principal amount equal to the principal amount of the Restricted Definitive
Notes accepted for exchange in the Exchange Offer by Persons that certify in
the applicable Letters of Transmittal that (A) they are not Broker-Dealers, (B)
they are not participating in a distribution of the Exchange Notes and (C) they
are not affiliates (as defined in Rule 144) of the Company.

 

Concurrently with the issuance of such Notes, the
Trustee will cause the aggregate principal amount of the applicable Restricted
Global Notes to be reduced accordingly, and the Company will execute and the
Trustee will authenticate and deliver to the Persons designated by the Holders
of Definitive Notes so accepted Unrestricted Definitive Notes in the
appropriate principal amount.

 

(g)           Legends. The following legends will appear on
the face of all Global Notes and Definitive Notes issued under this Indenture
unless specifically stated otherwise in the applicable provisions of this Indenture.

 

(1)           Private Placement Legend.

 

(A)          Except as permitted by subparagraph (B) below, each
Global Note and each Definitive Note (and all Notes issued in exchange therefor
or substitution thereof) shall bear the legend in substantially the following
form:

 

“THE SECURITY (OR
ITS PREDECESSOR) EVIDENCED HEREBY WAS ORIGINALLY ISSUED IN A TRANSACTION EXEMPT
FROM REGISTRATION UNDER SECTION 5 OF THE UNITED STATES SECURITIES ACT OF 1933,
AS AMENDED (THE “SECURITIES ACT”), AND MAY NOT BE OFFERED, SOLD OR OTHERWISE
TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR AN APPLICABLE EXEMPTION
THEREFROM. EACH PURCHASER OF THE SECURITY EVIDENCED HEREBY IS HEREBY NOTIFIED
THAT THE SELLER MAY BE RELYING ON THE EXEMPTION FROM THE PROVISIONS OF SECTION
5 OF THE SECURITIES ACT. THE HOLDER OF THE SECURITY EVIDENCED HEREBY AGREES FOR
THE BENEFIT OF THE ISSUER THAT (A) SUCH SECURITY MAY BE RESOLD, PLEDGED OR
OTHERWISE TRANSFERRED ONLY (1) (a) IN THE UNITED STATES TO A PERSON WHO THE
SELLER REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER (AS DEFINED IN
RULE 144A UNDER THE SECURITIES ACT) IN A TRANSACTION MEETING THE REQUIREMENTS
OF RULE 144A, (b) OUTSIDE THE UNITED STATES IN AN OFFSHORE TRANSACTION IN
ACCORDANCE WITH RULE 904 UNDER THE SECURITIES ACT, (c) IN A TRANSACTION MEETING
THE REQUIREMENTS OF RULE 144 UNDER THE SECURITIES ACT, (d) TO AN INSTITUTIONAL “ACCREDITED
INVESTOR” (AS DEFINED IN RULE 501 (a) (1), (2), (3) OR (7) OF THE SECURITIES
ACT (AN “INSTITUTIONAL ACCREDITED INVESTOR”)) THAT, PRIOR TO SUCH TRANSFER, FURNISHES
THE TRUSTEE A SIGNED LETTER CONTAINING CERTAIN REPRESENTATIONS AND AGREEMENTS
(THE FORM OF WHICH CAN BE OBTAINED FROM THE TRUSTEE) AND, IF SUCH TRANSFER IS
IN RESPECT OF AN AGGREGATE PRINCIPAL AMOUNT OF NOTES LESS THAN $250,000, AN
OPINION OF COUNSEL ACCEPTABLE TO GEORGIA GULF CORPORATION THAT SUCH TRANSFER IS
IN COMPLIANCE WITH THE SECURITIES ACT OR (e) IN ACCORDANCE WITH ANOTHER
EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT (AND BASED
UPON AN OPINION 

 

38

 

OF COUNSEL IF
GEORGIA GULF CORPORATION SO REQUESTS), (2) TO GEORGIA GULF CORPORATION OR (3)
PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT AND, IN EACH CASE, IN
ACCORDANCE WITH ANY APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED
STATES OR ANY OTHER APPLICABLE JURISDICTION AND (B) THE HOLDER WILL, AND EACH
SUBSEQUENT HOLDER IS REQUIRED TO, NOTIFY ANY PURCHASER FROM IT OF THE SECURITY
EVIDENCED HEREBY OF THE RESALE RESTRICTIONS SET FORTH IN (A) ABOVE.”

 

(B)           Notwithstanding the foregoing, any Global Note or
Definitive Note issued pursuant to subparagraphs (b)(4), (c)(2), (c)(3),
(d)(2), (d)(3), (e)(2), (e)(3) or (f) of this Section 2.06 (and all Notes
issued in exchange therefor or substitution thereof) will not bear the Private
Placement Legend.

 

(2)           Global Note Legend. Each Global Note will bear a
legend in substantially the following form:

 

“THIS GLOBAL NOTE IS HELD BY THE DEPOSITARY (AS
DEFINED IN THE INDENTURE GOVERNING THIS NOTE) OR ITS NOMINEE IN CUSTODY FOR THE
BENEFIT OF THE BENEFICIAL OWNERS HEREOF, AND IS NOT TRANSFERABLE TO ANY PERSON
UNDER ANY CIRCUMSTANCES EXCEPT THAT (1) THE TRUSTEE MAY MAKE SUCH NOTATIONS
HEREON AS MAY BE REQUIRED PURSUANT TO SECTION 2.06 OF THE INDENTURE, (2) THIS
GLOBAL NOTE MAY BE EXCHANGED IN WHOLE BUT NOT IN PART PURSUANT TO SECTION
2.06(a) OF THE INDENTURE, (3) THIS GLOBAL NOTE MAY BE DELIVERED TO THE TRUSTEE
FOR CANCELLATION PURSUANT TO SECTION 2.11 OF THE INDENTURE AND (4) THIS GLOBAL
NOTE MAY BE TRANSFERRED TO A SUCCESSOR DEPOSITARY WITH THE PRIOR WRITTEN
CONSENT OF GEORGIA GULF CORPORATION.

 

UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART
FOR NOTES IN DEFINITIVE FORM, THIS NOTE MAY NOT BE TRANSFERRED EXCEPT AS A
WHOLE BY THE DEPOSITARY TO A NOMINEE OF THE DEPOSITARY OR BY A NOMINEE OF THE
DEPOSITARY TO THE DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY OR BY THE
DEPOSITARY OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH
SUCCESSOR DEPOSITARY. UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED
REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY (55 WATER STREET, NEW YORK, NEW
YORK) (“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 SUCH OTHER NAME AS MAY BE REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR SUCH OTHER
ENTITY AS MAY BE 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.”

 

(h)           Cancellation and/or Adjustment of
Global Notes. At
such time as all beneficial interests in a particular Global Note have been
exchanged for Definitive Notes or a particular Global Note has been redeemed,
repurchased or canceled in whole and not in part, each such Global Note will be
returned to or retained and canceled by the Trustee in accordance with Section
2.11 hereof. At any time prior to such cancellation, if any beneficial interest
in a Global Note is exchanged for or transferred to a Person who will take
delivery thereof in the form of a beneficial interest in another Global Note or
for Definitive Notes, the principal amount of Notes represented by such Global
Note will be reduced accordingly and an endorsement will be made on such Global
Note by the Trustee or by the Depositary at the direction of the 

 

39

 

Trustee to reflect such reduction;
and if the beneficial interest is being exchanged for or transferred to a
Person who will take delivery thereof in the form of a beneficial interest in
another Global Note, such other Global Note will be increased accordingly and
an endorsement will be made on such Global Note by the Trustee or by the
Depositary at the direction of the Trustee to reflect such increase.

 

(i)            General Provisions Relating to
Transfers and Exchanges.

 

(1)           To permit registrations of transfers and exchanges,
the Company will execute and the Trustee will authenticate Global Notes and
Definitive Notes upon receipt of an Authentication Order in accordance with
Section 2.02 hereof or at the Registrar’s request.

 

(2)           No service charge will be made to a Holder of a
beneficial interest in a Global Note or to a Holder of a Definitive Note for
any registration of transfer or exchange, but the Company may require payment
of a sum sufficient to cover any transfer tax or similar governmental charge
payable in connection therewith (other than any such transfer taxes or similar
governmental charge payable upon exchange or transfer pursuant to Sections
2.10, 3.06, 3.09, 4.10, 4.15 and 9.05 hereof).

 

(3)           The Registrar will not be required to register the
transfer of or exchange of any Note selected for redemption in whole or in
part, except the unredeemed portion of any Note being redeemed in part.

 

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

 

(5)           Neither the Registrar nor the Company will be
required:

 

(A)          to issue, to register the transfer of or to exchange
any Notes during a period beginning at the opening of business 15 days before
the day of any selection of Notes for redemption under Section 3.02 hereof and
ending at the close of business on the day of selection;

 

(B)           to register the transfer of or to exchange any Note
selected for redemption in whole or in part, except the unredeemed portion of
any Note being redeemed in part; or

 

(C)           to register the transfer of or to exchange a Note
between a record date and the next succeeding interest payment date.

 

(6)           Prior to due presentment for the registration of a
transfer of any Note, the Trustee, any Agent and the Company may deem and treat
the Person in whose name any Note is registered as the absolute owner of such
Note for the purpose of receiving payment of principal of and interest on such
Notes and for all other purposes, and none of the Trustee, any Agent or the
Company shall be affected by notice to the contrary.

 

(7)           The Trustee will authenticate Global Notes and
Definitive Notes in accordance with the provisions of Section 2.02 hereof.

 

40

 

(8)           All certifications, certificates and Opinions of
Counsel required to be submitted to the Registrar pursuant to this Section 2.06
to effect a registration of transfer or exchange may be submitted by facsimile.

 

Section 2.07           Replacement Notes.

 

If any mutilated Note is surrendered to the Trustee or
the Company and the Trustee receives evidence to its satisfaction of the
destruction, loss or theft of any Note, the Company will issue and the Trustee,
upon receipt of an Authentication Order, will authenticate a replacement Note
if the Trustee’s requirements are met. If required by the Trustee or the
Company, an indemnity bond must be supplied by the Holder that is sufficient in
the judgment of the Trustee and the Company to protect the Company, the
Trustee, any Agent and any authenticating agent from any loss that any of them
may suffer if a Note is replaced. The Company may charge for its expenses in
replacing a Note.

 

Every replacement Note is an additional obligation of
the Company and will be entitled to all of the benefits of this Indenture
equally and proportionately with all other Notes duly issued hereunder.

 

Section 2.08           Outstanding Notes.

 

The Notes outstanding at any time are all the Notes
authenticated by the Trustee except for those canceled by it, those delivered
to it for cancellation, those reductions in the interest in a Global Note
effected by the Trustee in accordance with the provisions hereof, and those
described in this Section 2.08 as not outstanding. Except as set forth in
Section 2.09 hereof, a Note does not cease to be outstanding because the
Company or an Affiliate of the Company holds the Note; however, Notes held by
the Company or a Subsidiary of the Company shall not be deemed to be
outstanding for purposes of Section 3.07(a) hereof.

 

If a Note is replaced pursuant to Section 2.07 hereof,
it ceases to be outstanding unless the Trustee receives proof satisfactory to
it that the replaced Note is held by a protected purchaser.

 

If the principal amount of any Note is considered paid
under Section 4.01 hereof, it ceases to be outstanding and interest on it
ceases to accrue.

 

If the Paying Agent (other than the Company, a
Subsidiary or an Affiliate of any thereof) holds, on a redemption date or
maturity date, money sufficient to pay Notes payable on that date, then on and
after that date such Notes will be deemed to be no longer outstanding and will
cease to accrue interest.

 

Section 2.09           Treasury Notes.

 

In determining whether the Holders of the required
principal amount of Notes have concurred in any direction, waiver or consent,
Notes owned by the Company or any Guarantor, or by any Person directly or
indirectly controlling or controlled by or under direct or indirect common
control with the Company or any Guarantor, will be considered as though not
outstanding, except that for the purposes of determining whether the Trustee
will be protected in relying on any such direction, waiver or consent, only
Notes that the Trustee knows are so owned will be so disregarded.

 

Section 2.10           Temporary Notes.

 

Until certificates representing Notes are ready for
delivery, the Company may prepare and the Trustee, upon receipt of an
Authentication Order, will authenticate temporary Notes. Temporary Notes will
be substantially in the form of certificated Notes but may have variations that
the Company considers 

 

41

 

appropriate for temporary
Notes and as may be reasonably acceptable to the Trustee. Without unreasonable
delay, the Company will prepare and the Trustee will authenticate definitive
Notes in exchange for temporary Notes.

 

Holders of temporary Notes will be entitled to all of
the benefits of this Indenture.

 

Section 2.11           Cancellation.

 

The Company at any time may deliver Notes to the
Trustee for cancellation. The Registrar and Paying Agent will forward to the
Trustee any Notes surrendered to them for registration of transfer, exchange or
payment. The Trustee and no one else will cancel all Notes surrendered for
registration of transfer, exchange, payment, replacement or cancellation and
will destroy canceled Notes (subject to the record retention requirement of the
Exchange Act). Certification of the destruction of all canceled Notes will be
delivered to the Company. The Company may not issue new Notes to replace Notes
that it has paid or that have been delivered to the Trustee for cancellation.

 

Section 2.12           Defaulted Interest.

 

If the Company defaults in a payment of interest on
the Notes, it will pay the defaulted interest in any lawful manner plus, to the
extent lawful, interest payable on the defaulted interest, to the Persons who
are Holders on a subsequent special record date, in each case at the rate
provided in the Notes and in Section 4.01 hereof. The Company will 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. The Company will fix or cause
to be fixed each such special record date and payment date; provided that no such special record date may be less than
10 days prior to the related payment date for such defaulted interest. At least
15 days before the special record date, the Company (or, upon the written
request of the Company, the Trustee in the name and at the expense of the
Company) will mail or cause to be mailed to Holders a notice that states the
special record date, the related payment date and the amount of such interest
to be paid.

 

ARTICLE 3

REDEMPTION AND PREPAYMENT

 

Section 3.01           Notices to Trustee.

 

If the Company elects to redeem Notes pursuant to the
optional redemption provisions of Section 3.07 hereof, it must furnish to the
Trustee, at least 35 days but not more than 60 days before a redemption date,
an Officers’ Certificate setting forth:

 

(1)           the clause of this Indenture pursuant to which the
redemption shall occur;

 

(2)           the redemption date;

 

(3)           the principal amount of Notes to be redeemed; and

 

(4)           the redemption price.

 

Section 3.02           Selection of Notes to Be Redeemed or Purchased.

 

If less than all of the Notes are to be redeemed or
purchased in an offer to purchase at any time, the Trustee will select Notes
for redemption or purchase on a pro rata
basis (or, in the case of Notes issued in global form, based on a method that
most nearly approximates a pro rata
selection as the 

 

42

 

Trustee deems fair and
appropriate) unless otherwise required by law or applicable stock exchange
requirements.

 

In the event of partial redemption or purchase by lot,
the particular Notes to be redeemed or purchased will be selected, unless
otherwise provided herein, not less than 30 nor more than 60 days prior to the
redemption or purchase date by the Trustee from the outstanding Notes not
previously called for redemption or purchase.

 

The Trustee will promptly notify the Company in
writing of the Notes selected for redemption or purchase and, in the case of
any Note selected for partial redemption or purchase, the principal amount
thereof to be redeemed or purchased. Notes and portions of Notes selected will
be in denominations of $2,000 and integral multiples of $1,000 in excess
thereof; except that if all of the Notes of a Holder are to be redeemed or
purchased, the entire outstanding amount of Notes held by such Holder, even if
not a multiple of $1,000, shall be redeemed or purchased. Except as provided in
the preceding sentence, provisions of this Indenture that apply to Notes called
for redemption or purchase also apply to portions of Notes called for
redemption or purchase.

 

Section 3.03           Notice of Redemption.

 

Subject to the provisions of Section 3.09 hereof, at
least 30 days but not more than 60 days before a redemption date, the Company
will mail or cause to be mailed, by first class mail, a notice of redemption to
each Holder whose Notes are to be redeemed at its registered address, except
that redemption notices may be mailed more than 60 days prior to a redemption
date if the notice is issued in connection with a defeasance of the Notes or a
satisfaction and discharge of this Indenture pursuant to Articles 8 or 12
hereof.

 

The notice will identify the Notes to be redeemed and
will state:

 

(1)           the redemption date;

 

(2)           the redemption price;

 

(3)           if any Note is being redeemed in part, the portion of
the principal amount of such Note to be redeemed and that, after the redemption
date upon surrender of such Note, a new Note or Notes in principal amount equal
to the unredeemed portion will be issued upon cancellation of the original
Note;

 

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

 

(5)           that Notes called for redemption must be surrendered
to the Paying Agent to collect the redemption price;

 

(6)           that, unless the Company defaults in making such
redemption payment, interest on Notes called for redemption ceases to accrue on
and after the redemption date;

 

(7)           the paragraph of the Notes and/or Section of this
Indenture pursuant to which the Notes called for redemption are being redeemed;
and

 

(8)           that no representation is made as to the correctness
or accuracy of the CUSIP number, if any, listed in such notice or printed on
the Notes.

 

43

 

At the Company’s request, the Trustee will give the
notice of redemption in the Company’s name and at its expense; provided, however, that the Company has delivered to the
Trustee, at least 45 days prior to the redemption date, an Officers’
Certificate requesting that the Trustee give such notice and setting forth the
information to be stated in such notice as provided in the preceding paragraph.

 

Section 3.04           Effect of Notice of Redemption.

 

Once notice of redemption is mailed in accordance with
Section 3.03 hereof, Notes called for redemption become irrevocably due and
payable on the redemption date at the redemption price. A notice of redemption
may not be conditional.

 

Section 3.05           Deposit of Redemption or Purchase Price.

 

One Business Day prior to the redemption or purchase
date, the Company will deposit with the Trustee or with the Paying Agent money
sufficient to pay the redemption or purchase price of and accrued interest and Additional
Interest, if any, on all Notes to be redeemed or purchased on that date. The
Trustee or the Paying Agent will promptly return to the Company any money
deposited with the Trustee or the Paying Agent by the Company in excess of the
amounts necessary to pay the redemption or purchase price of, and accrued
interest and Additional Interest, if any, on, all Notes to be redeemed or purchased.

 

If the Company complies with the provisions of the
preceding paragraph, on and after the redemption or purchase date, interest
will cease to accrue on the Notes or the portions of Notes called for
redemption or purchase. If a Note is redeemed or purchased on or after an
interest record date but on or prior to the related interest payment date, then
any accrued and unpaid interest shall be paid to the Person in whose name such
Note was registered at the close of business on such record date. If any Note
called for redemption or purchase is not so paid upon surrender for redemption
or purchase because of the failure of the Company to comply with the preceding
paragraph, interest shall be paid on the unpaid principal, from the redemption
or purchase date until such principal is paid, and to the extent lawful on any
interest not paid on such unpaid principal, in each case at the rate provided
in the Notes and in Section 4.01 hereof.

 

Section 3.06           Notes Redeemed or Purchased in Part.

 

Upon surrender of a Note that is redeemed or purchased
in part, the Company will issue and, upon receipt of an Authentication Order,
the Trustee will authenticate for the Holder at the expense of the Company a
new Note equal in principal amount to the unredeemed or unpurchased portion of
the Note surrendered.

 

Section 3.07           Optional Redemption.

 

(a)           At any time prior to October 15,
2009, the Company may on any one or more occasions redeem up to 35% of the
aggregate principal amount of Notes issued under this Indenture at a redemption
price of 110.75% of the principal amount, plus accrued and unpaid interest and
Additional Interest, if any, to the redemption date, with the net cash proceeds
of one or more Equity Offerings; provided that:

 

(1)           at least 65% of the aggregate principal amount of
Notes originally issued under this Indenture (excluding Notes held by the
Company and its Subsidiaries) remains outstanding immediately after the
occurrence of such redemption; and

 

44

 

(2)           the redemption occurs within 60 days of the date of
the closing of such Equity Offering.

 

(b)           At any time prior to October 15,
2011, the Company may also redeem all or a part of the Notes, upon not less
than 30 nor more than 60 days’ prior notice, at a redemption price equal to
100% of the principal amount of the Notes redeemed plus the Applicable Premium
as of, and accrued and unpaid interest and Additional Interest, if any, to the
date of redemption, subject to the rights of holders of Notes on the relevant
record date to receive interest due on the relevant interest payment date.

 

(c)           Except pursuant to the preceding two
paragraphs, the Notes will not be redeemable at the Company’s option prior to
October 15, 2011.

 

(d)           On or after October 15, 2011, the
Company may redeem all or a part of the Notes, upon not less than 30 nor more
than 60 days’ notice, at the redemption prices (expressed as percentages of
principal amount) set forth below plus accrued and unpaid interest and
Additional Interest, if any, on the Notes redeemed to the applicable redemption
date, if redeemed during the twelve-month period beginning on October 15 of the
years indicated below, subject to the rights of Holders on the relevant record
date to receive interest on the relevant interest payment date:

 

	
  Year

  	
   

  	
  Percentage

  	
   

  
	
  2011

  	
   

  	
  105.375

  	
  %

  
	
  2012

  	
   

  	
  103.583

  	
  %

  
	
  2013

  	
   

  	
  101.792

  	
  %

  
	
  2014 and thereafter

  	
   

  	
  100.000

  	
  %

  

 

Unless the Company defaults in the payment of the
redemption price, interest will cease to accrue on the Notes or portions
thereof called for redemption on the applicable redemption date.

 

(e)           Any redemption pursuant to this
Section 3.07 shall be made pursuant to the provisions of Sections 3.01 through
3.06 hereof.

 

Section 3.08           Mandatory Redemption.

 

The Company is not required to make mandatory
redemption or sinking fund payments with respect to the Notes.

 

Section 3.09           Offer to Purchase by Application of Excess Proceeds.

 

In the event that, pursuant to Section 4.10 hereof,
the Company is required to commence an offer to all Holders to purchase Notes
(an “Asset Sale Offer”), it will follow the
procedures specified below.

 

The Asset Sale Offer shall be made to all Holders and
all holders of other Indebtedness that is pari passu with
the Notes containing provisions similar to those set forth in this Indenture
with respect to offers to purchase or redeem with the proceeds of sales of
assets. The Asset Sale Offer will remain open for a period of at least 20
Business Days following its commencement and not more than 30 Business Days,
except to the extent that a longer period is required by applicable law (the “Offer Period”). No later than three Business Days after the
termination of the Offer Period (the “Purchase Date”),
the Company will apply all Excess Proceeds (the “Offer Amount”) to the purchase of Notes and such other pari passu Indebtedness (on a pro rata basis, if applicable) or, if less than the Offer
Amount has been tendered, all Notes and other Indebtedness tendered in response
to the Asset Sale Offer. Payment for any Notes so purchased will be made in the
same manner as interest payments are made.

 

45

 

If the Purchase Date is on or after an interest record
date and on or before the related interest payment date, any accrued and unpaid
interest and Additional Interest, if any, will be paid to the Person in whose
name a Note is registered at the close of business on such record date, and no
additional interest will be payable to Holders who tender Notes pursuant to the
Asset Sale Offer.

 

Upon the commencement of an Asset Sale Offer, the
Company will send, by first class mail, a notice to the Trustee and each of the
Holders, with a copy to the Trustee. The notice will contain all instructions
and materials necessary to enable such Holders to tender Notes pursuant to the
Asset Sale Offer. The notice, which will govern the terms of the Asset Sale
Offer, will state:

 

(1)           that the Asset Sale Offer is being made pursuant to
this Section 3.09 and Section 4.10 hereof and the length of time the Asset Sale
Offer will remain open;

 

(2)           the Offer Amount, the purchase price and the Purchase
Date;

 

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

 

(4)           that, unless the Company defaults in making such
payment, any Note accepted for payment pursuant to the Asset Sale Offer will
cease to accrue interest after the Purchase Date;

 

(5)           that Holders electing to have a Note purchased
pursuant to an Asset Sale Offer may elect to have Notes purchased in
denominations of $2,000 or integral multiples of $1,000 in excess thereof only;

 

(6)           that Holders electing to have Notes purchased pursuant
to any Asset Sale Offer will be required to surrender the Note, with the form
entitled “Option of Holder to Elect Purchase” attached to the Notes completed,
or transfer by book-entry transfer, to the Company, a Depositary, if appointed
by the Company, or a Paying Agent at the address specified in the notice at
least three days before the Purchase Date;

 

(7)           that Holders will be entitled to withdraw their
election if the Company, the Depositary or the Paying Agent, as the case may
be, receives, not later than the expiration of the Offer Period, a telegram,
telex, facsimile transmission or letter setting forth the name of the Holder,
the principal amount of the Note the Holder delivered for purchase and a
statement that such Holder is withdrawing his election to have such Note
purchased;

 

(8)           that, if the aggregate principal amount of Notes and
other pari passu Indebtedness surrendered by
holders thereof exceeds the Offer Amount, the Company will select the Notes and
other pari passu Indebtedness to be purchased
on a pro rata basis based on the
principal amount of Notes and such other pari passu
Indebtedness surrendered (with such adjustments as may be deemed appropriate by
the Company so that only Notes in denominations of $2,000 or integral multiples
of $1,000 in excess thereof, will be purchased); and

 

(9)           that Holders whose Notes were purchased only in part
will be issued new Notes equal in principal amount to the unpurchased portion
of the Notes surrendered (or transferred by book-entry transfer).

 

On or before the Purchase Date, the Company will, to
the extent lawful, accept for payment, on a pro
rata basis to the extent necessary, the Offer Amount of Notes or
portions thereof tendered pursuant to the Asset Sale Offer, or if less than the
Offer Amount has been tendered, all Notes tendered, and will 

 

46

 

deliver or cause to be
delivered to the Trustee the Notes properly accepted together with an Officers’
Certificate stating that such Notes or portions thereof were accepted for
payment by the Company in accordance with the terms of this Section 3.09. The
Company, the Depositary or the Paying Agent, as the case may be, will promptly
(but in any case not later than five days after the Purchase Date) mail or
deliver to each tendering Holder an amount equal to the purchase price of the
Notes tendered by such Holder and accepted by the Company for purchase, and the
Company will promptly issue a new Note, and the Trustee, upon written request
from the Company, will authenticate and mail or deliver (or cause to be
transferred by book entry) such new Note to such Holder, in a principal amount
equal to any unpurchased portion of the Note surrendered. Any Note not so
accepted shall be promptly mailed or delivered by the Company to the Holder
thereof. The Company will publicly announce the results of the Asset Sale Offer
on the Purchase Date.

 

Other than as specifically provided in this Section
3.09, any purchase pursuant to this Section 3.09 shall be made pursuant to the
provisions of Sections 3.01 through 3.06 hereof.

 

ARTICLE 4

COVENANTS

 

Section 4.01           Payment of Notes.

 

The Company will pay or cause to be paid the principal
of, premium, if any, and interest and Additional Interest, if any, on, the
Notes on the dates and in the manner provided in the Notes. Principal, premium,
if any, and interest and Additional Interest, if any will be considered paid on
the date due if the Paying Agent, if other than the Company or a Subsidiary
thereof, holds as of 10:00 a.m. Eastern Time on the due date money deposited by
the Company in immediately available funds and designated for and sufficient to
pay all principal, premium, if any, and interest then due. The Company will pay
all Additional Interest, if any, in the same manner on the dates and in the
amounts set forth in the Registration Rights Agreement.

 

The Company will pay interest (including post-petition
interest in any proceeding under any Bankruptcy Law) on overdue principal at
the rate equal to 1% per annum in excess of the then applicable interest rate
on the Notes to the extent lawful; it will pay interest (including
post-petition interest in any proceeding under any Bankruptcy Law) on overdue
installments of interest and Additional Interest (without regard to any
applicable grace period) at the same rate to the extent lawful.

 

Section 4.02           Maintenance of Office or Agency.

 

The Company will
maintain in the City of
Chicago, Illinois (or if not such location, in the Borough of Manhattan, the
City of New York), an office or agency (which may be an office of the
Trustee or an affiliate of the Trustee, Registrar or co-registrar) where Notes
may be surrendered for registration of transfer or for exchange and where
notices and demands to or upon the Company in respect of the Notes and this
Indenture may be served. The Company will give prompt written notice to the
Trustee of the location, and any change in the location, of such office or
agency. If at any time the Company fails to maintain any such required office
or agency or fails 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 may
also from time to time designate one or more other offices or agencies where
the Notes may be presented or surrendered for any or all such purposes and may
from time to time rescind such designations; provided,
however, that no such designation or rescission will in any manner
relieve the Company of its obligation to maintain an office or agency in the City of Chicago, Illinois (or if not 

 

47

 

such
location, in the Borough of Manhattan, the City of New York) for such
purposes. The Company will give prompt written notice to the Trustee of any
such designation or rescission and of any change in the location of any such
other office or agency.

 

The Company hereby designates the Corporate Trust
Office of the Trustee as one such office or agency of the Company in accordance
with Section 2.03 hereof.

 

Section 4.03           Reports.

 

(a)           Whether or not required by the rules
and regulations of the SEC, so long as any Notes are outstanding, the Company
will furnish to the Holders of Notes, or cause the Trustee to furnish to the
Holders of Notes, within the time periods specified in the SEC’s rules and
regulations:

 

(1)           all quarterly and annual reports that would be
required to be filed with the SEC on Forms 10-Q and 10-K if the Company were
required to file reports, including a “Management’s Discussion and Analysis of
Financial Condition and Results of Operations” and, with respect to the annual
information only, a report thereon by the Company’s certified independent
accountants; and

 

(2)           all current reports that would be required to be filed
(but not furnished)  with the SEC on Form
8-K if the Company were required to file such reports.

 

In addition, the Company will file a copy of each of
the reports referred to in clauses (1) and (2) above with the SEC for public
availability within the time periods specified in the rules and regulations
applicable to such reports (unless the SEC will not accept such a filing) and
will post the reports on its website within those time periods. The Company
will at all times comply with TIA § 314(a).

 

If, at any time, the Company is no longer subject to
the periodic reporting requirements of the Exchange Act for any reason, the
Company will nevertheless continue filing the reports specified in the
preceding paragraph with the SEC within the time periods specified above unless
the SEC will not accept such a filing. The Company will not take any action for
the purpose of causing the SEC not to accept any such filings. If,
notwithstanding the foregoing, the SEC will not accept the Company’s filings
for any reason,  the Company will post
the reports referred to in the preceding paragraph on its website within the
time periods that would apply if the Company were required to file those
reports with the SEC.

 

If at any time any Person is or becomes a Parent of
the Company, and that Person delivers to the Trustee a Parent Guaranty, then
the reports and other information required by this Section 4.03 may instead be
those filed with the SEC by such Person and furnished with respect to such
Person without including the condensed consolidating footnote contemplated by
Rule 3-10 of Regulation S-X promulgated under the Securities Act, to the extent
such footnote is not required by the SEC.

 

(b)           If the Company has designated any of
its Subsidiaries as Unrestricted Subsidiaries, then the quarterly and annual
financial information required by paragraph (a) of this Section 4.03 will
include a reasonably detailed presentation, either on the face of the financial
statements or in the footnotes thereto, and in Management’s Discussion and
Analysis of Financial Condition and Results of Operations, of the financial
condition and results of operations of the Company and its Restricted
Subsidiaries separate from the financial condition and results of operations of
the Unrestricted Subsidiaries of the Company.

 

(c)           For so long as any Notes remain
outstanding, if at any time they are not required to file with the SEC the
reports required by paragraphs (a) and (b) of this Section 4.03, the Company
and the 

 

48

 

Guarantors will furnish to the
Holders and to securities analysts and prospective investors, upon their
request, the information required to be delivered pursuant to Rule 144A(d)(4)
under the Securities Act.

 

Section 4.04           Compliance Certificate.

 

(a)           The Company and each Guarantor (to
the extent that such Guarantor is so required under the TIA) shall deliver to
the Trustee, within 120 days after the end of each fiscal year, an Officers’
Certificate stating that in the course of the performance by the signers of
their duties as officers they would normally have knowledge of any Default or
Event of Default, and further stating, as to each such Officer signing such
certificate, that to the best of his or her knowledge the Company has kept,
observed, performed and fulfilled each and every covenant contained in this
Indenture and is not in default in the performance or observance of any of the
terms, provisions and conditions of this Indenture (or, if a Default or Event
of Default has occurred, describing all such Defaults or Events of Default of
which he or she may have knowledge and what action the Company is taking or
proposes to take with respect thereto) and that to the best of his or her
knowledge no event has occurred and remains in existence by reason of which
payments on account of the principal of or interest, if any, on the Notes is
prohibited or if such event has occurred, a description of the event and what
action the Company is taking or proposes to take with respect thereto.

 

(b)           So long as any of the Notes are
outstanding, the Company will deliver to the Trustee, promptly upon, and in any
event within 10 days after, any Officer becoming aware of any Default or Event
of Default, an Officers’ Certificate specifying such Default or Event of
Default and what action the Company is taking or proposes to take with respect
thereto.

 

Section 4.05           Taxes.

 

The Company will pay, and will cause each of its
Subsidiaries to pay, prior to delinquency, all material taxes, assessments, and
governmental levies except such as are contested in good faith and by
appropriate proceedings or where the failure to effect such payment is not
adverse in any material respect to the Holders of the Notes.

 

Section 4.06           Stay, Extension and Usury Laws.

 

The Company and each of the Guarantors covenants (to
the extent that it may lawfully do so) that it will not at any time insist
upon, plead, or in any manner whatsoever claim or take the benefit or advantage
of, any stay, extension or usury law wherever enacted, now or at any time hereafter
in force, that may affect the covenants or the performance of this Indenture;
and the Company and each of the Guarantors (to the extent that it may lawfully
do so) hereby expressly waives all benefit or advantage of any such law, and
covenants that it will not, by resort to any such law, 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 has been
enacted.

 

Section 4.07           Restricted Payments.

 

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

 

(1)           declare or pay any dividend or make any other payment
or distribution on account of the Company’s or any of its Restricted
Subsidiaries’ Equity Interests (including, without limitation, any payment in
connection with any merger or consolidation involving the Company or any of its
Restricted Subsidiaries) or to the direct or indirect holders of the 

 

49

 

Company’s or any of its Restricted Subsidiaries’ Equity
Interests in their capacity as such (other than dividends or distributions
payable in Equity Interests (other than Disqualified Stock) of the Company and
other than dividends or distributions payable to the Company or a Restricted
Subsidiary of the Company);

 

(2)           purchase, redeem or otherwise acquire or retire for
value (including without limitation, in connection with any merger or
consolidation involving the Company) any Equity Interests of the Company or any
direct or indirect Parent of the Company held by Persons other than the Company
or any of its Restricted Subsidiaries;

 

(3)           make any payment on or with respect to, or purchase,
redeem, defease or otherwise acquire or retire for value any Indebtedness of
the Company or any Guarantor that is contractually subordinated to the Notes or
to any Note Guarantee (excluding any intercompnay Indebtedness between or among
the Company and any of its Restricted Subsidiaries), except a payment of
interest or principal at the Stated Maturity thereof; or

 

(4)           make any Restricted Investment (all such payments and
other actions set forth in these clauses (1) through (4) above being
collectively referred to as “Restricted Payments”),

 

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

 

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

 

(2)           the
Company would, at the time of such Restricted Payment and after giving pro forma effect thereto as if such Restricted Payment had
been made at the beginning of the applicable four-quarter period, have been
permitted to incur at least $1.00 of additional Indebtedness pursuant to the
Consolidated Coverage Ratio test set forth in Section 4.09(a) hereof; and

 

(3)           such
Restricted Payment, together with the aggregate amount of all other Restricted
Payments made by the Company and its Restricted Subsidiaries since the date of
this Indenture (excluding Restricted Payments permitted by clauses (2) through
(14) of paragraph (b) of this Section 4.07), is less than the sum, without
duplication of:

 

(A)          50% of the Consolidated Net Income of the Company for
the period (taken as one accounting period) from October 1, 2006 to the end of
the Company’s most recently ended fiscal quarter for which internal financial
statements are available at the time of such Restricted Payment (or, if such
Consolidated Net Income for such period is a deficit, less 100% of such
deficit); plus

 

(B)           100% of the aggregate net cash proceeds received by
the Company since the date of this Indenture as a contribution to its common
equity capital or from the issue or sale of Equity Interests of the Company
(other than Disqualified Stock) or from the issue or sale of convertible or
exchangeable Disqualified Stock or convertible or exchangeable debt securities
of the Company that have been converted into or exchanged for such Equity
Interests (other than Equity Interests (or Disqualified Stock or debt
securities) sold to a Subsidiary of the Company); plus

 

(C)           without duplication, the amount by which Indebtedness
of the Company or its Restricted Subsidiaries is reduced on the Company’s
balance sheet upon the 

 

50

 

conversion or exchange (other than by a Subsidiary of the
Company) subsequent to the date of this Indenture of any Indebtedness of the
Company or its Restricted Subsidiaries into or for Equity Interests (other than
Disqualified Stock) of the Company (less the amount of any cash, or the fair
market value of any other property, distributed by the Company upon such
conversion or exchange); plus

 

(D)          to the extent that any Restricted Investment that was
made after the date of this Indenture is sold for cash or otherwise liquidated
or repaid for cash, the lesser of (i) the cash return of capital with respect
to such Restricted Investment (less the cost of disposition, if any) and (ii)
the initial amount of such Restricted Investment; plus

 

(E)           to the extent that any Unrestricted Subsidiary of the
Company designated as such after the date of this Indenture is redesignated as
a Restricted Subsidiary after the date of this Indenture, the lesser of (i) the
Fair Market Value of the Company’s Investment in such Subsidiary as of the date
of such redesignation or (ii) such Fair Market Value as of the date on which
such Subsidiary was originally designated as an Unrestricted Subsidiary after
the date of this Indenture; plus

 

(F)           50% of any dividends received by the
Company or a Restricted Subsidiary of the Company after the date of this
Indenture from an Unrestricted Subsidiary of the Company, to the extent that
such dividends were not otherwise included in the Consolidated Net Income of
the Company for such period.

 

(b)           The provisions of Section 4.07(a)
hereof will not prohibit:

 

(1)           the payment of any dividend or the consummation of any
irrevocable redemption within 60 days after the date of declaration of the
dividend or giving of the redemption notice, as the case may be, if at the date
of declaration or notice, the dividend or redemption payment would have
complied with the provisions of this Indenture;

 

(2)           so long as no Default has occurred and is continuing
or would be caused thereby, the making of any Restricted Payment in exchange
for, or out of the net cash proceeds of the substantially concurrent sale (other
than to a Subsidiary of the Company) of, Equity Interests of the Company (other
than Disqualified Stock) or from the substantially concurrent contribution of
common equity capital to the Company; provided that
the amount of any such net cash proceeds that are utilized for any such
Restricted Payment will be excluded from clause (3)(B) of Section 4.07(a)
hereof;

 

(3)           the repurchase, redemption, defeasance or other
acquisition or retirement for value of Indebtedness of the Company or any
Guarantor that is contractually subordinated to the Notes or to any Note
Guarantee with the net cash proceeds from a substantially concurrent incurrence
of Permitted Refinancing Indebtedness;

 

(4)           the payment of any dividend (or, in the case of any
partnership or limited liability company, any similar distribution) by a
Restricted Subsidiary of the Company to the holders of its Equity Interests on
a pro rata basis;

 

(5)           the repurchase of Equity Interests deemed to occur
upon the exercise of stock options to the extent such Equity Interests
represent a portion of the exercise price of those stock options;

 

51

 

(6)           the declaration and payment of regularly scheduled or
accrued dividends to holders of any class or series of Disqualified Stock of the
Company or any Restricted Subsidiary of the Company issued on or after the date
of this Indenture in accordance with the Consolidated Coverage Ratio test
described in Section 4.09 hereof;

 

(7)           any Qualified Receivables Transaction (including
transfers of Receivables between the Company or any of its Subsidiaries and any
Receivables Entity, transfers by any Receivables Entity to any other Person and
payments of amounts pursuant to such Qualified Receivables Transaction) and any
distribution or payment of purchase price, commissions, discounts, yield and
other fees and charges incurred in connection with any transaction (including,
without limitation, any Qualified Receivables Transaction) pursuant to which the
Company or any of its Subsidiaries may sell, convey or otherwise transfer or
grant a security interest in any Receivables or Related Assets of the type
specified in the definition of “Qualified Receivables Transaction”;

 

(8)           the repurchase of Receivables by the Company or any of
its Subsidiaries or other payment obligations of the Company or any Restricted
Subsidiary of the Company pursuant to Standard Securitization Undertakings;

 

(9)           so long as no Default has occurred and is continuing
or would be caused thereby, loans or advances to employees or directors of the
Company or any Restricted Subsidiary of the Company, the proceeds of which are
used to purchase Equity Interests of the Company, in an aggregate amount not in
excess of $10.0 million at any one time outstanding;

 

(10)         so long as no Default has occurred and is continuing
or would be caused thereby, any purchase or redemption of Indebtedness of the
Company or any Guarantor that is contractually subordinated to the Notes or to
any Note Guarantee to the extent permitted under Section 4.10 hereof; provided, that the Company has completed an Asset Sale Offer
to all holders of Notes with Excess Proceeds from such Asset Sales, and has
completed the repurchase of all Notes validly tendered for payment (after
giving effect to any proration provisions in such covenant) in connection with
such Asset Sale Offer;

 

(11)         so long as no Default has occurred and is continuing
or would be caused thereby, the purchase, repurchase, redemption, defeasance or
other acquisition or retirement for value of Indebtedness of the Company or any
Guarantor that is contractually subordinated to the Notes or to any Note
Guarantee (i) at a purchase price not greater than 101% of the principal amount
of such Indebtedness in the event of a Change of Control in accordance with
provisions similar to Section 4.15 hereof, or (ii) at a purchase price not
greater than 100% of the principal amount thereof in accordance with provisions
similar to Section 4.10 hereof; provided that
prior to or simultaneously with such purchase, repurchase, redemption,
defeasance or other acquisition or retirement, the Company has made the Change
of Control or Asset Sale Offer, as applicable, as provided in such covenant
with respect to the Notes and has completed the repurchase or redemption of all
Notes validly tendered for payment (after giving effect to any proration
provisions in such covenant) in connection with such Change of Control Offer or
Asset Sale Offer;

 

(12)         so long as no Default has occurred and is continuing
or would be caused thereby, the purchase, repurchase, redemption, defeasance or
other acquisition or retirement of Disqualified Stock of the Company or any of
its Restricted Subsidiaries made by exchange for or out of the proceeds of the
substantially concurrent sale of Disqualified Stock of the Company or 

 

52

 

such Restricted Subsidiary, that in each case is permitted to
be incurred pursuant to Section 4.09(b)(5) hereof;

 

(13)         so long as no Default has occurred and is continuing
or would be caused thereby, the purchase, repurchase, redemption, defeasance or
other acquisition or retirement of Equity Interests of the Company pursuant to
employment arrangements and stock ownership plans in aggregate amount not in
excess of $30.0 million since the date of this Indenture; and

 

(14)         so long as no Default has occurred and is continuing
or would be caused thereby, other Restricted Payments in an aggregate amount
not to exceed $150.0 million since the date of this Indenture.

 

The amount of all Restricted Payments (other than
cash) will be the Fair Market Value on the date of the Restricted Payment of
the asset(s) or securities proposed to be transferred or issued by the Company
or such Restricted Subsidiary, as the case may be, pursuant to the Restricted
Payment. The Fair Market Value of any assets or securities that are required to
be valued by this Section 4.07 will be determined by the Board of Directors of the
Company whose resolution with respect thereto shall be delivered to the Trustee.
The Board of Directors’ determination must be based upon an opinion or
appraisal issued by an accounting, appraisal or investment banking firm of
national standing if the Fair Market Value exceeds $75.0 million.

 

Section 4.08           Dividend and Other Payment Restrictions Affecting
Subsidiaries.

 

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

 

(1)           pay dividends or make any other distributions on its
Capital Stock to the Company or any of its Restricted Subsidiaries, or with
respect to any other interest or participation in, or measured by, its profits,
or pay any indebtedness owed to the Company or any of its Restricted
Subsidiaries (it being understood that the priority of any preferred stock in
receiving dividends or liquidating distributions prior to dividends or
liquidating distributions paid on common stock shall not be deemed to be a
restriction on the ability to make distributions on Capital Stock);

 

(2)           make loans or advances to the Company or any of its
Restricted Subsidiaries (it being understood that the subordination of loans or
advances made to the Company or any Restricted Subsidiary to other Indebtedness
incurred by the Company or any Restricted Subsidiary shall not be deemed to be
a restriction on the ability to make loans or advances); or

 

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

 

(b)           The restrictions in Section 4.08(a)
hereof will not apply to encumbrances or restrictions existing under or by
reason of:

 

(1)           any encumbrance or restriction pursuant to an
agreement as in effect at the date of this Indenture, including agreements
governing Existing Indebtedness and Credit Facilities as in effect on the date
of this Indenture and any amendments, restatements, modifications, renewals,
supplements, refundings, replacements or refinancings of those agreements; provided that the amendments, restatements, modifications,
renewals, supplements, refundings, 

 

53

 

replacements or refinancings are not materially more
restrictive, taken as a whole, with respect to such dividend and other payment
restrictions than those contained in those agreements on the date of this Indenture;

 

(2)           this Indenture, the Notes, the Note Guarantees, the Exchange
Notes and the Note Guarantees in respect thereof, and the Senior Indenture, the
Senior Notes, the Senior Note Guarantees, the Exchange Senior Notes and the
Senior Note Guarantees in respect thereof;

 

(3)           applicable law, rule, regulation or order;

 

(4)           any instrument governing Indebtedness or Capital Stock
of a Person acquired by the Company or any of its Restricted Subsidiaries as in
effect at the time of such acquisition (except to the extent such Indebtedness
or Capital Stock was incurred in connection with or in contemplation of such
acquisition), which encumbrance or restriction is not applicable to any Person,
or the properties or assets of any Person, other than the Person, or the
property or assets of the Person, so acquired, and any amendments, restatements,
modifications, renewals, supplements, refundings, replacements or refinancings
of any such instrument by such Person; provided that
the amendments, restatements, modifications, renewals, supplements, refundings,
replacements or refinancings are not materially more restrictive, taken as a
whole, than those contained in any such instrument on the date of acquisition; provided, further, that, in the case of Indebtedness, such
Indebtedness was permitted by the terms of this Indenture to be incurred;

 

(5)           customary encumbrances or restrictions (i) on the
subletting, assignment or transfer of any property or asset that is subject to
a lease, license or similar contract that was entered into in the ordinary
course of business, or the assignment or transfer of any such lease, license or
other contract, (ii) contained in mortgages, pledges or other security agreements
permitted under this Indenture to secure Indebtedness of the Company or any of
its Restricted Subsidiaries to the extent such encumbrances or restrictions
restrict the transfer of the property subject to such mortgages, pledges or
other security agreements, or (iii) pursuant to provisions restricting
dispositions of real property interests set forth in any reciprocal easement
agreements of the Company or any of its Restricted Subsidiaries entered into in
the ordinary course of business;

 

(6)           purchase money obligations for property acquired in
the ordinary course of business and Capital Lease Obligations that impose
restrictions on the property purchased or leased of the nature described in
Section 4.08(a)(3) hereof;

 

(7)           any agreement for the sale or other disposition of a
Restricted Subsidiary that restricts distributions by that Restricted
Subsidiary pending the sale or other disposition;

 

(8)           Permitted Refinancing Indebtedness; provided that the restrictions contained in the agreements
governing such Permitted Refinancing Indebtedness are not materially more
restrictive, taken as a whole, than those contained in the agreements governing
the Indebtedness being refinanced;

 

(9)           Liens permitted to be incurred under Section 4.12
hereof that limit the right of the debtor to dispose of the assets subject to
such Liens;

 

(10)         provisions limiting the disposition or distribution of
assets or property in joint venture agreements, asset sale agreements,
sale-leaseback agreements, stock sale agreements and other similar agreements
entered into with the approval of the Company’s Board of Directors, 

 

54

 

which limitation is applicable only to the assets or property
that are the subject of such agreements;

 

(11)         provisions with respect to the disposition or
distribution of assets or property in joint venture agreements, manufacturing
alliance agreements and other similar agreements entered into in the ordinary
course of business, so long as such encumbrances or restrictions are not
applicable to any Person (or its property or assets) other than such joint
venture or a Subsidiary thereof or the assets used exclusively in such
manufacturing alliance, as applicable;

 

(12)         Indebtedness or other contractual requirements of a
Receivables Entity or any Standard Securitization Undertakings, in each case in
connection with a Qualified Receivables Transaction; provided
that such restrictions apply only to such Receivables Entity, Receivables and
Related Assets; and

 

(13)         restrictions on cash or other deposits or net worth
under leases or other contracts entered into in the ordinary course of
business.

 

Section 4.09           Incurrence of Indebtedness and Issuance of Preferred
Stock.

 

(a)           The Company will not, and will not
permit any of its Restricted Subsidiaries to, directly or indirectly, create,
incur, issue, assume, guarantee or otherwise become directly or indirectly
liable, contingently or otherwise, with respect to (collectively, “incur”) any Indebtedness (including Acquired Debt), and the
Company will not issue any Disqualified Stock and will not permit any of its
Restricted Subsidiaries to issue any shares of preferred stock; provided, however, that the Company may incur Indebtedness
(including Acquired Debt) or issue Disqualified Stock, and the Guarantors may
incur Indebtedness (including Acquired Debt) or issue preferred stock, if the
Company’s Consolidated Coverage Ratio would be at least 2.0 to 1.0, determined
on a pro forma basis (including a pro forma application of the net proceeds therefrom), as if
the additional Indebtedness had been incurred or the Disqualified Stock or the
preferred stock had been issued, as the case may be, at the beginning of such
four-quarter period.

 

(b)           The provisions of Section 4.09(a)
hereof will not prohibit the incurrence of any of the following items of
Indebtedness (collectively, “Permitted Debt”):

 

(1)           (x) the incurrence by the Company and any Guarantor of
additional Indebtedness and letters of credit under Credit Facilities in an
aggregate principal amount at any one time outstanding under this clause (1)(x)
(with letters of credit being deemed to have a principal amount equal to the
face amount thereof issued but not reimbursed) not to exceed $1,400.0 million,
less (i) the aggregate principal amount of Indebtedness incurred pursuant to
clause (y) of this paragraph then outstanding and (ii) the aggregate amount of
all Net Proceeds of Asset Sales applied by the Company or any of its Restricted
Subsidiaries since the date of this Indenture to repay any term Indebtedness
under a Credit Facility incurred in reliance on this clause (1) or to repay any
revolving credit Indebtedness under a Credit Facility incurred in reliance on
this clause (1) and effect a corresponding commitment reduction thereunder to
the extent required by Section 4.10 hereof; and (y) the incurrence by the
Canadian Credit Parties of Indebtedness under the Credit Agreement in an aggregate
principal amount at any one time outstanding under this clause (1) (with
letters of credit being deemed to have a principal amount equal to the face
amount thereof issued but not reimbursed) not to exceed $200.0 million;

 

(2)           the incurrence by the Company and its Restricted
Subsidiaries of the Existing Indebtedness;

 

55

 

(3)           the incurrence by the Company and the Guarantors of
Indebtedness represented by the Notes and the related Note Guarantees to be
issued on the date of this Indenture and the Exchange Notes and the related Note
Guarantees to be issued pursuant to the Registration Rights Agreement and the
Senior Notes and related Senior Note Guarantees to be issued on the date of the
Senior Indenture and the Exchange Senior Notes and related Senior Note
Guarantees to be issued pursuant to the Registration Rights Agreement;

 

(4)           the incurrence by the Company or any of its Restricted
Subsidiaries of Indebtedness represented by Capital Lease Obligations, mortgage
financings or purchase money obligations, in each case, incurred for the
purpose of financing all or any part of the purchase price or cost of design,
construction, installation or improvement of property, plant or equipment used
in the business of the Company or any of its Restricted Subsidiaries, in an
aggregate principal amount, including all Permitted Refinancing Indebtedness
incurred to renew, refund, refinance, replace, defease or discharge any
Indebtedness incurred pursuant to this clause (4), not to exceed $25.0 million
at any time outstanding;

 

(5)           the incurrence by the Company or any of its Restricted
Subsidiaries of Permitted Refinancing Indebtedness in exchange for, or the net
proceeds of which are used to renew, refund, refinance, replace, defease or
discharge any Indebtedness (other than intercompany Indebtedness) that was
permitted by this Indenture to be incurred under Section 4.09(a) hereof or
clauses (2), (3), (4), (5), (12), (13) or (15) of this Section 4.09(b);

 

(6)           the incurrence by the Company or any of its Restricted
Subsidiaries of intercompany Indebtedness between or among the Company and any
of its Restricted Subsidiaries; provided, however,
that:

 

(a)   if the Company or any Guarantor is the obligor on such
Indebtedness and the payee is not the Company or a Guarantor, such Indebtedness
must be expressly subordinated to the prior payment in full in cash of all
Obligations then due with respect to the Notes, in the case of the Company, or
the Note Guarantee, in the case of a Guarantor; and

 

(b)   (i) any subsequent issuance or transfer of Equity
Interests that results in any such Indebtedness being held by a Person other
than the Company or a Restricted Subsidiary of the Company and (ii) any sale or
other transfer of any such Indebtedness to a Person that is not either the
Company or a Restricted Subsidiary of the Company,

 

will be deemed, in each case, to constitute an incurrence of
such Indebtedness by the Company or such Restricted Subsidiary, as the case may
be, that was not permitted by this clause (6);

 

(7)           the issuance by any of the Company’s Restricted
Subsidiaries to the Company or to any of its Restricted Subsidiaries of shares
of preferred stock; provided, however,
that:

 

(a)   any subsequent issuance or transfer of Equity Interests
that results in any such preferred stock being held by a Person other than the
Company or a Restricted Subsidiary of the Company; and

 

(b)   any sale or other transfer of any such preferred stock
to a Person that is not either the Company or a Restricted Subsidiary of the
Company,

 

56

 

will be deemed, in each case, to constitute an issuance of
such preferred stock by such Restricted Subsidiary that was not permitted by
this clause (7);

 

(8)           the incurrence by the Company or any of its Restricted
Subsidiaries of Hedging Obligations in the ordinary course of business;

 

(9)           the guarantee by the Company or any of the Guarantors
of Indebtedness of the Company or a Restricted Subsidiary of the Company that
was permitted to be incurred by another provision of this Section 4.09; provided that if the Indebtedness being guaranteed is
subordinated to or pari passu with
the Notes, then the Guarantee shall be subordinated or pari passu,
as applicable, to the same extent as the Indebtedness guaranteed;

 

(10)         the incurrence by the Company or any of its Restricted
Subsidiaries of Indebtedness in respect of workers’ compensation claims,
self-insurance obligations, bankers’ acceptances, performance and surety bonds
in the ordinary course of business;

 

(11)         the incurrence by the Company or any of its Restricted
Subsidiaries of Indebtedness arising from the honoring by a bank or other
financial institution of a check, draft or similar instrument inadvertently
drawn against insufficient funds, so long as such Indebtedness is covered
within five Business Days;

 

(12)         Indebtedness of a Restricted Subsidiary incurred and
outstanding on or prior to the date on which such Restricted Subsidiary was
acquired by the Company (other than Indebtedness incurred in contemplation of,
or in connection with, the transaction or series of related transactions
pursuant to which such Restricted Subsidiary became a Restricted Subsidiary of
or was otherwise acquired by the Company); provided, however,
that on the date that such Restricted Subsidiary is acquired by the Company, the
Company would have been able to incur $1.00 of additional Indebtedness pursuant
to Section 4.09(a) hereof after giving effect to the incurrence of such
Indebtedness pursuant to this clause (12);

 

(13)         the incurrence by Non-Guarantor Subsidiaries of
Indebtedness in an aggregate principal amount at any time outstanding pursuant
to this clause (13), including all Permitted Refinancing Indebtedness incurred
to renew, refund, refinance, replace, defease or discharge any Indebtedness
incurred pursuant to this clause (13), not to exceed $125.0 million (or the
equivalent thereof, measured at the time of each incurrence, in applicable
foreign currency);

 

(14)         the incurrence of Indebtedness arising from agreements
of the Company or any of its Restricted Subsidiaries providing for
indemnification, adjustment of purchase price or similar obligations, in each
case, incurred or assumed in connection with the disposition of any business,
assets or Capital Stock of a Restricted Subsidiary; provided
that the maximum aggregate liability in respect of all such Indebtedness shall
at no time exceed the gross proceeds actually received by the Company and its
Restricted Subsidiaries in connection with such disposition; and

 

(15)         the incurrence by the Company or the Guarantors of
additional Indebtedness in an aggregate principal amount (or accreted value, as
applicable) at any time outstanding, including all Permitted Refinancing
Indebtedness incurred to renew, refund, refinance, replace, defease or
discharge any Indebtedness incurred pursuant to this clause (15), not to exceed
an amount equal to 5.0% of Consolidated Net Worth.

 

57

 

For purposes of determining compliance with this
Section 4.09, in the event that an item of proposed Indebtedness, Disqualified
Stock or preferred stock meets the criteria of more than one of the categories
of Permitted Debt described in clauses (1) through (15) above, or is entitled
to be incurred pursuant to Section 4.09(a) hereof, the Company will be
permitted to classify such item of Indebtedness, Disqualified Stock or
preferred stock on the date of its incurrence, or later reclassify all or a
portion of such item of Indebtedness, Disqualified Stock or preferred stock in
any manner that complies with this Section 4.09. Indebtedness under Credit
Facilities outstanding on the date on which Notes are first issued and authenticated
under this Indenture will initially be deemed to have been incurred on such
date in reliance on the exception provided by clause (1) of the definition of
Permitted Debt.

 

The accrual of interest, the accretion or amortization
of original issue discount, the payment of interest on any Indebtedness in the
form of additional Indebtedness with the same terms, the reclassification of
preferred stock as Indebtedness due to a change in accounting principles, and
the payment of dividends on Disqualified Stock in the form of additional shares
of the same class of Disqualified Stock will not be deemed to be an incurrence
of Indebtedness or an issuance of Disqualified Stock for purposes of this
Section 4.09; provided, in each such case, that
the amount of any such accrual, accretion or payment is included in
Consolidated Interest Expense of the Company as accrued. For purposes of
determining compliance with any U.S. dollar-denominated restriction on the
incurrence of Indebtedness where the Indebtedness to be incurred is denominated
in a different currency, (1) the amount of such Indebtedness shall be the U.S.
Dollar Equivalent determined on the date of the incurrence of such Indebtedness
and (2) in the case of any Permitted Refinancing Indebtedness incurred in the
same currency as the Indebtedness being refinanced, the principal amount
thereof shall be the U.S. Dollar Equivalent of the Indebtedness being
refinanced, except to the extent that the principal amount of the Permitted
Refinancing Indebtedness exceeds the principal amount of the Indebtedness being
refinanced, in which case the U.S. Dollar Equivalent of such excess principal
amount shall be determined on the date such Permitted Refinancing Indebtedness
is incurred. Notwithstanding any other provision of this Section 4.09, the
maximum amount of Indebtedness that the Company or any Restricted Subsidiary
may incur pursuant to this Section 4.09 shall not be deemed to be exceeded
solely as a result of fluctuations in exchange rates or currency values
subsequent to the incurrence of such Indebtedness.

 

The amount of any Indebtedness outstanding as of any
date will be:

 

(1)           the
accreted value of the Indebtedness, in the case of any Indebtedness issued with
original issue discount;

 

(2)           the
principal amount of the Indebtedness, in the case of any other Indebtedness;
and

 

(3)           in respect
of Indebtedness of another Person secured by a Lien on the assets of the
specified Person, the lesser of:

 

(a)           the Fair Market Value of such assets at the date of
determination; and

 

(b)           the amount of the Indebtedness of the other Person.

 

Section 4.10           Asset Sales.

 

The Company will not, and will not permit any of its
Restricted Subsidiaries to, consummate an Asset Sale unless:

 

58

 

(1)           the Company (or the Restricted Subsidiary, as the case
may be) receives consideration at the time of the Asset Sale at least equal to
the Fair Market Value of the assets or Equity Interests issued or sold or
otherwise disposed of; and

 

(2)           at least 75% of the consideration received in the
Asset Sale by the Company or such Restricted Subsidiary is in the form of cash
or Cash Equivalents. For purposes of this provision, each of the following
shall be deemed to be cash:

 

(A)          any liabilities, as shown on the Company’s most recent
consolidated balance sheet, of the Company or any Restricted Subsidiary (other
than contingent liabilities and liabilities that are by their terms
subordinated to the Notes or any Note Guarantee) that are assumed by the
transferee of any such assets pursuant to a customary novation agreement that
releases the Company or such Restricted Subsidiary from further liability;

 

(B)           any securities, notes or other obligations received by
the Company or any such Restricted Subsidiary from such transferee that are
contemporaneously, subject to ordinary settlement periods, converted by the
Company or such Restricted Subsidiary into cash, to the extent of the cash
received in that conversion; and

 

(C)           any stock or assets of the kind referred to in clauses
(2) or (4) of the next paragraph of this Section 4.10.

 

Within 360 days after the receipt of any Net Proceeds
from an Asset Sale, the Company (or the applicable Restricted Subsidiary, as
the case may be) may apply such Net Proceeds at its option:

 

(1)           to repay, prepay or purchase Senior Debt and, if the
Senior Debt repaid is revolving credit Indebtedness under a Credit Facility, to
correspondingly reduce commitments with respect thereto; provided, that the
Company or such Restricted Subsidiary shall not be required to reduce the
related commitments to an aggregate principal amount less than $400.0 million;

 

(2)           to acquire all or substantially all of the assets of,
or any Capital Stock of, another Permitted Business, if, after giving effect to
any such acquisition of Capital Stock, the Permitted Business is or becomes a Restricted
Subsidiary of the Company;

 

(3)           to make a capital expenditure; or

 

(4)           to acquire other assets that are not classified as
current assets under GAAP and that are used or useful in a Permitted Business.

 

Pending the final application of any Net Proceeds, the
Company may temporarily reduce revolving credit borrowings or otherwise invest
the Net Proceeds in any manner that is not prohibited by this Indenture.

 

Any Net Proceeds from Asset Sales that are not applied
or invested as provided in the second paragraph of this Section 4.10 will
constitute “Excess Proceeds.”  When the aggregate amount of Excess Proceeds
exceeds $50.0 million, within five days thereof, the Company will make an Asset
Sale Offer to all Holders of Notes and all holders of other Indebtedness that
is pari passu with the Notes containing
provisions similar to those set forth in this Indenture with respect to offers
to purchase or redeem with the proceeds of sales of assets in accordance with
Section 3.09 hereof to purchase the maximum principal amount of Notes and such
other pari passu Indebtedness that may be
purchased out of the Excess 

 

59

 

Proceeds. The offer price
in any Asset Sale Offer will be equal to 100% of the principal amount plus
accrued and unpaid interest and Additional Interest, if any, to the date of
purchase and will be payable in cash. If any Excess Proceeds remain after
consummation of an Asset Sale Offer, the Company may use those Excess Proceeds
for any purpose not otherwise prohibited by this Indenture. If the aggregate
principal amount of Notes and other pari passu
Indebtedness tendered into such Asset Sale Offer exceeds the amount of Excess
Proceeds, the Trustee shall select the Notes and such other pari passu Indebtedness to be purchased on a pro rata basis. Upon completion of each
Asset Sale Offer, the amount of Excess Proceeds will be reset at zero.

 

The Company will comply with the requirements of Rule
14e-1 under the Exchange Act and any other securities laws and regulations
thereunder to the extent such laws and regulations are applicable in connection
with each repurchase of Notes pursuant to an Asset Sale Offer. To the extent
that the provisions of any securities laws or regulations conflict with the
provisions of Section 3.09 hereof or this Section 4.10, the Company will comply
with the applicable securities laws and regulations and will not be deemed to
have breached its obligations under Section 3.09 hereof or this Section 4.10 by
virtue of such compliance.

 

Section 4.11           Transactions with Affiliates.

 

(a)           The Company will not, and will not
permit any of its Restricted Subsidiaries to, make any payment to, or sell,
lease, transfer or otherwise dispose of any of its properties or assets to, or
purchase any property or assets from, or enter into or make or amend any
transaction, contract, agreement, understanding, loan, advance or guarantee
with, or for the benefit of, any Affiliate of the Company (each an “Affiliate Transaction”), unless:

 

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

 

(2)           the Company delivers to the Trustee:

 

(A)          with respect to any Affiliate Transaction or series of
related Affiliate Transactions involving aggregate consideration in excess of $10.0
million, a resolution of the Board of Directors of the Company set forth in an
Officers’ Certificate certifying that such Affiliate Transaction complies with Section
4.11(a)(1) and that such Affiliate Transaction has been approved by a majority
of the disinterested members of the Board of Directors of the Company; and

 

(B)           with respect to any Affiliate Transaction or series of
related Affiliate Transactions involving aggregate consideration in excess of $75.0
million, an opinion as to the fairness to the Company or such Subsidiary of
such Affiliate Transaction from a financial point of view issued by an
accounting, appraisal or investment banking firm of national standing.

 

(b)           The following items will not be
deemed to be Affiliate Transactions and, therefore, will not be subject to the
provisions of Section 4.11(a) hereof:

 

(1)           any employment agreement, employee benefit plan,
officer or director indemnification agreement or any similar arrangement
entered into by the Company or any of its Restricted Subsidiaries in the
ordinary course of business;

 

60

 

(2)           transactions between or among the Company and/or its
Restricted Subsidiaries;

 

(3)           transactions with a Person (other than an Unrestricted
Subsidiary of the Company) that is an Affiliate of the Company solely because
the Company owns, directly or through a Restricted Subsidiary, an Equity
Interest in, or controls, such Person;

 

(4)           payment of reasonable fees to, and indemnity provided
on behalf of, officers, directors or employees of the Company or any Restricted
Subsidiary;

 

(5)           any issuance of Equity Interests (other than
Disqualified Stock) of the Company to Affiliates of the Company;

 

(6)           Restricted Payments and Permitted Investments that do
not violate Section 4.07 hereof;

 

(7)           transactions between or among the Company and/or its
Restricted Subsidiaries on the one hand and a Receivables Entity on the other
hand, or transactions between a Receivables Entity and any Person in which the
Receivables Entity has an Investment, in each case effected as part of a
Qualified Receivables Transaction; and

 

(8)           loans or advances to employees by the Company or any
of its Restricted Subsidiaries in the ordinary course of business.

 

Section 4.12           Liens.

 

The Company will not, and will not permit any of its
Restricted Subsidiaries to, directly or indirectly, create, incur, assume or
suffer to exist any Lien of any kind on any of their properties or assets, now
owned or hereafter acquired, securing any Subordinated Obligations or senior
subordinated Indebtedness unless (i) in the case of a Lien securing Subordinated
Obligations, the Notes and the Note Guarantees are secured by a Lien on such
properties and assets that is senior in right of priority to the Subordinated
Obligations so secured until such time as such Subordinated Obligations are no
longer secured by a Lien, and (ii) in the case of a Lien securing senior
subordinated Indebtedness, the Notes and the Note Guarantees are secured by a
Lien on such properties and assets on an equal and ratable basis with the
obligations so secured until such time as such obligations are no longer
secured by a Lien.

 

Section 4.13           Business Activities.

 

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

 

Section 4.14           Corporate Existence.

 

Subject to Article 5 and Section 10.05 hereof, the
Company shall do or cause to be done all things necessary to preserve and keep
in full force and effect:

 

(1)           its corporate existence, and the corporate,
partnership or other existence of each of its Subsidiaries, in accordance with
the respective organizational documents (as the same may be amended from time
to time) of the Company or any such Restricted Subsidiary; and

 

61

 

(2)           the rights (charter and statutory), licenses and
franchises of the Company and its Restricted Subsidiaries; provided,
however, that the Company shall not be required to preserve any such
right, license or franchise, or the corporate, partnership or other existence
of any of its Restricted Subsidiaries, if the Board of Directors shall
determine that the preservation thereof is no longer desirable in the conduct
of the business of the Company and its Restricted Subsidiaries, taken as a
whole, and that the loss thereof is not adverse in any material respect to the
Holders of the Notes; provided, further,
that the Company and any of the Restricted Subsidiaries may merge in accordance
with Sections 5.01 and 10.05 hereof, as applicable.

 

Section 4.15           Offer to Repurchase Upon Change of Control.

 

(a)           Upon the occurrence of a Change of
Control, the Company will make an offer (a “Change of Control Offer”)
to each Holder to repurchase all or any part (equal to $2,000 or an integral
multiple of $1,000 in excess thereof) of that Holder’s Notes at a purchase
price in cash equal to 101% of the aggregate principal amount of Notes
repurchased plus accrued and unpaid interest and Additional Interest, if any,
on the Notes repurchased to the date of purchase, subject to the rights of
Holders on the relevant record date to receive interest due on the relevant
interest payment date (the “Change of Control Payment”).
Within ten days following any Change of Control, the Company will mail a notice
to each Holder describing the transaction or transactions that constitute the
Change of Control and stating:

 

(1)           that the Change of Control Offer is being made
pursuant to this Section 4.15 and that all Notes tendered will be accepted for
payment;

 

(2)           the purchase price and the purchase date, which shall
be no earlier than 30 days and no later than 60 days from the date such notice
is mailed (the “Change of Control Payment Date”);

 

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

 

(4)           that, unless the Company defaults in the payment of
the Change of Control Payment, all Notes accepted for payment pursuant to the
Change of Control Offer will cease to accrue interest after the Change of
Control Payment Date;

 

(5)           that Holders electing to have any Notes purchased
pursuant to a Change of Control Offer will be required to surrender the Notes,
with the form entitled “Option of Holder to Elect Purchase” attached to the
Notes completed, or transfer by book-entry transfer, to the Paying Agent at the
address specified in the notice prior to the close of business on the third
Business Day preceding the Change of Control Payment Date;

 

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

 

(7)           that Holders whose Notes are being purchased only in
part will be issued new Notes equal in principal amount to the unpurchased
portion of the Notes surrendered, which unpurchased portion must be equal to
denominations of $2,000 or integral multiples of $1,000 in excess thereof.

 

62

 

The Company will comply with the requirements of Rule
14e-1 under the Exchange Act and any other securities laws and regulations
thereunder to the extent those laws and regulations are applicable in
connection with the repurchase of the Notes as a result of a Change in Control.
To the extent that the provisions of any securities laws or regulations
conflict with the provisions of Sections 3.09 or 4.15 hereof, the Company will
comply with the applicable securities laws and regulations and will not be
deemed to have breached its obligations under Section 3.09 hereof or this Section
4.15 by virtue of such compliance.

 

(b)           On the Change of Control Payment
Date, the Company will, to the extent lawful:

 

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

 

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

 

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

 

The Paying Agent will promptly mail (but in any case
not later than five days after the Change of Control Payment Date) to each
Holder of Notes properly tendered the Change of Control Payment for such Notes,
and the Trustee will promptly authenticate and mail (or cause to be transferred
by book entry) to each Holder a new Note equal in principal amount to any
unpurchased portion of the Notes surrendered, if any. The Company will publicly
announce the results of the Change of Control Offer on or as soon as
practicable after the Change of Control Payment Date.

 

(c)           Notwithstanding anything to the
contrary in this Section 4.15, the Company will not be required to make a
Change of Control Offer upon a Change of Control if (1) a third party makes the
Change of Control Offer in the manner, at the times and otherwise in compliance
with the requirements set forth in this Section 4.15 and Section 3.09 hereof
and purchases all Notes properly tendered and not withdrawn under the Change of
Control Offer, or (2) notice of redemption has been given pursuant to Section
3.07 hereof, unless and until there is a default in payment of the applicable
redemption price.

 

(d)           Prior to complying with any of the
provisions of this Section 4.15, but in any event within 90 days following a
Change of Control, the Company will either repay all outstanding Senior Debt or
obtain the requisite consents, if any, under all agreements governing outstanding
Senior Debt to permit the repurchase of the Notes required by this Section
4.15.

 

Section 4.16           Payments for Consent.

 

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

 

Section 4.17           Additional Note Guarantees.

 

If, on or after the date of this Indenture:

 

63

 

(1)           the
Company or any of its Domestic Subsidiaries acquires or creates another
Domestic Subsidiary that incurs any Indebtedness or guarantees any Indebtedness
of the Company or any of its Domestic Subsidiaries, in each case under Credit
Facilities then outstanding; or

 

(2)           any
Domestic Subsidiary of the Company incurs Indebtedness or guarantees any
Indebtedness of the Company or any of its Domestic Subsidiaries, in each case
under Credit Facilities then outstanding, and that Domestic Subsidiary was not
a Guarantor immediately prior to such incurrence or guarantee (an “Additional Credit Facility Obligor”),

 

then that newly acquired
or created Domestic Subsidiary or Additional Credit Facility Obligor, as the case
may be, shall become a Guarantor and guarantee the Company’s Obligations in
respect of the Notes and execute a supplemental indenture and deliver an
Opinion of Counsel satisfactory to the Trustee within 10 Business Days of the
date on which it was acquired or created (to the effect that such supplemental
indenture has been duly authorized, executed and delivered by that Domestic
Subsidiary and constitutes a valid and binding agreement of that Domestic
Subsidiary, enforceable in accordance with its terms (subject to customary
exceptions)) or incurred or guaranteed Obligations in respect of Credit
Facilities, as the case may be; provided that
no Receivables Entity will be required to become a Guarantor at any time. The
form of such Note Guarantee is attached as Exhibit E hereto.

 

Section 4.18           Designation of Restricted and Unrestricted
Subsidiaries.

 

The Board of Directors of the Company may designate
any Subsidiary to be an Unrestricted Subsidiary if that designation would not
cause a Default. If a Restricted Subsidiary is designated as an Unrestricted
Subsidiary, the aggregate Fair Market Value of all outstanding Investments
owned by the Company and its Restricted Subsidiaries in the Subsidiary
designated as Unrestricted will be deemed to be an Investment made as of the
time of the designation and will reduce the amount available for Restricted
Payments under Section 4.07 hereof or under one or more clauses of the
definition of Permitted Investments, as determined by the Company. That
designation will only be permitted if the Investment would be permitted at that
time and if the Restricted Subsidiary otherwise meets the definition of an
Unrestricted Subsidiary. The Board of Directors of the Company may redesignate
any Unrestricted Subsidiary to be a Restricted Subsidiary if that redesignation
would not cause a Default.

 

Any designation of a Subsidiary of the Company as an
Unrestricted Subsidiary will be evidenced to the Trustee by filing with the
Trustee a certified copy of a resolution of the Board of Directors giving
effect to such designation and an Officers’ Certificate certifying that such
designation complied with the preceding conditions and was permitted by Section
4.07 hereof. If, at any time, any Unrestricted Subsidiary would fail to meet
the preceding requirements as an Unrestricted Subsidiary, it will thereafter
cease to be an Unrestricted Subsidiary for purposes of this Indenture and any
Indebtedness of such Subsidiary will be deemed to be incurred by a Restricted
Subsidiary of the Company as of such date and, if such Indebtedness is not
permitted to be incurred as of such date under Section 4.09 hereof, the Company
will be in default of such covenant. The Board of Directors of the Company may
at any time designate any Unrestricted Subsidiary to be a Restricted
Subsidiary; provided that such
designation will be deemed to be an incurrence of Indebtedness by a Restricted
Subsidiary of the Company of any outstanding Indebtedness of such Unrestricted
Subsidiary and such designation will only be permitted if (1) such Indebtedness
is permitted under Section 4.09 hereof, calculated on a pro forma
basis as if such designation had occurred at the beginning of the four-quarter
reference period; and (2) no Default would be in existence following such
designation.

 

64

 

Section 4.19           No Layering of Debt.

 

The Company shall not incur, create, issue, assume,
guarantee or otherwise become liable for any Indebtedness that is contractually
subordinate or junior in right of payment to any Senior Debt of the Company and
senior in right of payment to the Notes. No Guarantor shall incur, create,
issue, assume, guarantee or otherwise become liable for any Indebtedness that
is contractually subordinate or junior in right of payment to the Senior Debt
of such Guarantor and senior in right of payment to such Guarantor’s Note
Guarantee. No such Indebtedness will be considered to be senior by virtue of
being secured on a first or junior priority basis.

 

Section 4.20           Changes in Covenants When Notes Rated Investment Grade.

 

If on
any date following the date of this Indenture:

 

(1)           the Notes
are rated Baa3 or better by Moody’s and BBB- or better by S&P (or, if
either such entity ceases to rate the Notes for reasons outside of the control
of the Company, the equivalent investment grade credit rating from any other “nationally
recognized statistical rating organization” within the meaning of Rule 15c3
1(c)(2)(vi)(F) under the Exchange Act selected by the Company as a replacement
agency); and

 

(2)           no Default
shall have occurred and be continuing,

 

then, beginning on that
day and subject to the provisions of the following paragraph, the following
provisions of this Indenture shall be suspended:

 

(1)           Section
4.10 hereof;

 

(2)           Section
4.07 hereof;

 

(3)           Section
4.09 hereof;

 

(4)           Section
4.08 hereof;

 

(5)           Section
4.18 hereof;

 

(6)           Section
4.11 hereof; and

 

(7)           Section
5.01(4) hereof.

 

During any period that the foregoing covenants have
been suspended, the Company’s Board of Directors may not designate any of its
Subsidiaries as Unrestricted Subsidiaries pursuant to Section 4.18 hereof or
the second paragraph of the definition of “Unrestricted Subsidiary.”

 

ARTICLE 5

SUCCESSORS

 

Section 5.01           Merger, Consolidation, or Sale of Assets.

 

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

 

65

 

(1)           either:

 

(A)          the Company is the surviving corporation; or

 

(B)           the Person formed by or surviving any such
consolidation or merger (if other than the Company) or to which such sale,
assignment, transfer, conveyance or other disposition has been made is a
corporation organized or existing under the laws of the United States, any
state of the United States or the District of Columbia;

 

(2)           the Person formed by or surviving any such
consolidation or merger (if other than the Company) or the Person to which such
sale, assignment, transfer, conveyance or other disposition has been made
assumes all the obligations of the Company under the Notes, this Indenture and the
Registration Rights Agreement pursuant to agreements reasonably satisfactory to
the Trustee;

 

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

 

(4)           the Company or the Person formed by or surviving any
such consolidation or merger (if other than the Company), or to which such
sale, assignment, transfer, conveyance or other disposition has been made
would, on the date of such transaction after giving pro forma
effect thereto and any related financing transactions as if the same had
occurred at the beginning of the applicable four-quarter period, be permitted
to incur at least $1.00 of additional Indebtedness pursuant to the Consolidated
Coverage Ratio test set forth in Section 4.09(a) hereof.

 

In
addition, the Company will not, directly or indirectly, lease all or
substantially all of its properties or assets, in one or more related transactions,
to any other Person.

 

This
Section 5.01 will not apply to:

 

(1)           a merger
of the Company with an Affiliate solely for the purpose of reincorporating the
Company in another U.S. jurisdiction; or

 

(2)           any
consolidation or merger, or any sale, assignment, transfer, conveyance, lease
or other disposition of assets between or among the Company and its Restricted
Subsidiaries.

 

Section 5.02           Successor Corporation Substituted.

 

Upon any consolidation or merger, or any sale,
assignment, transfer, lease, conveyance or other disposition of all or
substantially all of the properties or assets of the Company in a transaction
that is subject to, and that complies with the provisions of, Section 5.01
hereof, the successor Person formed by such consolidation or into or with which
the Company is merged or to which such sale, assignment, transfer, lease,
conveyance or other disposition is made shall succeed to, and be substituted
for (so that from and after the date of such consolidation, merger, sale,
assignment, transfer, lease, conveyance or other disposition, the provisions of
this Indenture referring to the “Company” shall refer instead to the successor
Person and not to the Company), and may exercise every right and power of the
Company under this Indenture with the same effect as if such successor Person
had been named as the Company herein; provided, however,
that the predecessor Company shall not be relieved from the obligation to pay
the principal of and interest on the Notes except in the case of a sale of all
of the Company’s assets in a transaction that is subject to, and that complies
with the provisions of, Section 5.01 hereof.

 

66

 

ARTICLE 6

DEFAULTS AND REMEDIES

 

Section 6.01           Events of Default.

 

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

 

(1)           default for 30 days in the payment when due of
interest on, or Additional Interest, if any, with respect to, the Notes,
whether or not prohibited by Article 10 of this Indenture;

 

(2)           default in the payment when due (at maturity, upon
redemption or otherwise) of the principal of, or premium, if any, on, the
Notes, whether or not prohibited by Article 10 of this Indenture;

 

(3)           failure by the Company or any of its Restricted
Subsidiaries to comply with the provisions of Sections 4.10, 4.15 and 5.01
hereof;

 

(4)           failure by the Company or any of its Restricted
Subsidiaries for 60 days after notice to the Company by the Trustee or the Holders
of at least 25% in aggregate principal amount of the Notes then outstanding
voting as a single class to comply with any of the other agreements in this
Indenture;

 

(5)           default under any mortgage, indenture or instrument
under which there may be issued or by which there may be secured or evidenced
any Indebtedness for money borrowed by the Company or any of its Restricted
Subsidiaries (or the payment of which is guaranteed by the Company or any of
its Restricted Subsidiaries), whether such Indebtedness or Guarantee now
exists, or is created after the date of this Indenture, if that default:

 

(A)          is caused by a failure to pay principal of, or
interest or premium, if any, on, such Indebtedness prior to the expiration of
the grace period provided in such Indebtedness on the date of such default (a “Payment Default”); or

 

(B)           results in the acceleration of such Indebtedness prior
to its express maturity,

 

and, in each case, the principal amount of any such
Indebtedness, together with the principal amount of any other such Indebtedness
under which there has been a Payment Default or the maturity of which has been
so accelerated, aggregates $50.0 million or more;

 

(6)           failure by the Company or any of its Restricted
Subsidiaries to pay final judgments entered by a court or courts of competent
jurisdiction aggregating in excess of $50.0 million (net of any amounts paid by
an insurance carrier), which judgments are not paid, discharged or stayed for a
period of 60 days;

 

(7)           the Company or any of its Restricted Subsidiaries that
is a Significant Subsidiary or any group of Restricted Subsidiaries of the
Company that, taken together, would constitute a Significant Subsidiary pursuant
to or within the meaning of Bankruptcy Law:

 

(A)          commences a voluntary case,

 

67

 

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

 

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

 

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

 

(E)           generally is not paying its debts as they become due;

 

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

 

(A)          is for relief against the Company or any of its
Restricted Subsidiaries that is a Significant Subsidiary or any group of
Restricted Subsidiaries of the Company that, taken together, would constitute a
Significant Subsidiary in an involuntary case;

 

(B)           appoints a custodian of the Company or any of its
Restricted Subsidiaries that is a Significant Subsidiary or any group of
Restricted Subsidiaries of the Company that, taken together, would constitute a
Significant Subsidiary or for all or substantially all of the property of the
Company or any of its Restricted Subsidiaries that is a Significant Subsidiary
or any group of Restricted Subsidiaries of the Company that, taken together,
would constitute a Significant Subsidiary; or

 

(C)           orders the liquidation of the Company or any of its
Restricted Subsidiaries that is a Significant Subsidiary or any group of
Restricted Subsidiaries of the Company that, taken together, would constitute a
Significant Subsidiary;

 

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

 

(9)           except as permitted by this Indenture, any Note
Guarantee is held in any judicial proceeding to be unenforceable or invalid or
ceases for any reason to be in full force and effect, or any Guarantor, or any
Person acting on behalf of any Guarantor, denies or disaffirms its obligations
under its Note Guarantee.

 

Section 6.02           Acceleration.

 

In the case of an Event of Default specified in clause
(7) or (8) of
Section 6.01 hereof, with respect to the Company, any Restricted Subsidiary of
the Company that is a Significant Subsidiary or any group of Restricted
Subsidiaries of the Company that, taken together, would constitute a
Significant Subsidiary, all outstanding Notes will become due and payable
immediately without further action or notice. If any other Event of Default
occurs and is continuing, the Trustee or the Holders of at least 25% in
aggregate principal amount of the then outstanding Notes may declare all the
Notes to be due and payable immediately.

 

Upon any such declaration, the Notes shall become due
and payable immediately.

 

68

 

The Holders of a majority in aggregate principal
amount of the then outstanding Notes by written notice to the Trustee may, on
behalf of all of the Holders, rescind an acceleration and its consequences, if
the rescission would not conflict with any judgment or decree and if all
existing Events of Default (except nonpayment of principal, interest or premium
or Additional Interest, if any, that has become due solely because of the
acceleration) have been cured or waived.

 

Section 6.03           Other Remedies.

 

If an Event of Default occurs and is continuing, the
Trustee may pursue any available remedy to collect the payment of principal,
premium and Additional Interest, if any, and interest on the Notes or to
enforce the performance of any provision of the Notes or this Indenture.

 

The Trustee may maintain a proceeding even if it does
not possess any of the Notes or does not produce any of them in the proceeding.
A delay or omission by the Trustee or any Holder of a Note in exercising any
right or remedy accruing upon an Event of Default shall not impair the right or
remedy or constitute a waiver of or acquiescence in the Event of Default. All
remedies are cumulative to the extent permitted by law.

 

Section 6.04           Waiver of Past Defaults.

 

Holders of not less than a majority in aggregate
principal amount of the then outstanding Notes by notice to the Trustee may on
behalf of the Holders of all of the Notes waive an existing Default or Event of
Default and its consequences hereunder, except a continuing Default or Event of
Default in the payment of the principal of, premium and Additional Interest, if
any, or interest on, the Notes (including in connection with an offer to
purchase); provided, however, that the Holders of a
majority in aggregate principal amount of the then outstanding Notes may
rescind an acceleration and its consequences, including any related payment default
that resulted from such acceleration. 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 impair any right consequent
thereon.

 

Section 6.05           Control by Majority.

 

Holders of a majority in aggregate principal amount of
the then outstanding Notes may direct the time, method and place of conducting
any proceeding for exercising any remedy available to the Trustee or exercising
any trust or power conferred on it. However, the Trustee may refuse to follow
any direction that conflicts with law or this Indenture that the Trustee
determines may be unduly prejudicial to the rights of other Holders of Notes or
that may involve the Trustee in personal liability.

 

Section 6.06           Limitation on Suits.

 

A Holder may pursue a remedy with respect to this
Indenture or the Notes only if:

 

(1)           such Holder gives to the Trustee written notice that
an Event of Default is continuing;

 

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

 

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

 

69

 

(4)           the Trustee does not comply with the request within 60
days after receipt of the request and the offer of security or indemnity; and

 

(5)           during such 60-day period, Holders of a majority in
aggregate principal amount of the then outstanding Notes do not give the
Trustee a direction inconsistent with such request.

 

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

 

Section 6.07           Rights of Holders of Notes to Receive Payment.

 

Notwithstanding any other provision of this Indenture,
the right of any Holder of a Note to receive payment of principal, premium and Additional
Interest, if any, and interest on the Note, on or after the respective due
dates expressed in the Note (including in connection with an offer to
purchase), or to bring suit for the enforcement of any such payment on or after
such respective dates, shall not be impaired or affected without the consent of
such Holder.

 

Section 6.08           Collection Suit by Trustee.

 

If an Event of Default specified in Section 6.01(1) or
(2) hereof occurs and is continuing, the Trustee is authorized to recover
judgment in its own name and as trustee of an express trust against the Company
for the whole amount of principal of, premium and Additional Interest, if any,
and interest remaining unpaid on, the Notes and interest on overdue principal
and, to the extent lawful, interest and such further amount as shall be
sufficient to cover the costs and expenses of collection, including the
reasonable compensation, expenses, disbursements and advances of the Trustee,
its agents and counsel.

 

Section 6.09           Trustee May File Proofs of Claim.

 

The Trustee is authorized to file such proofs of claim
and other papers or documents as may be necessary or advisable in order to have
the claims of the Trustee (including any claim for the reasonable compensation,
expenses, disbursements and advances of the Trustee, its agents and counsel)
and the Holders of the Notes allowed in any judicial proceedings relative to
the Company (or any other obligor upon the Notes), its creditors or its
property and shall be entitled and empowered to collect, receive and distribute
any money or other property payable or deliverable on any such claims and any
custodian in any such judicial proceeding is hereby authorized by each Holder
to make such payments to the Trustee, and in the event that the Trustee shall
consent to the making of such payments directly to the Holders, to pay to the
Trustee any amount due to it for the reasonable compensation, expenses, disbursements
and advances of the Trustee, its agents and counsel, and any other amounts due
the Trustee under Section 7.07 hereof. To the extent that the payment of any
such compensation, expenses, disbursements and advances of the Trustee, its
agents and counsel, and any other amounts due the Trustee under Section 7.07
hereof out of the estate in any such proceeding, shall be denied for any
reason, payment of the same shall be secured by a Lien on, and shall be paid
out of, any and all distributions, dividends, money, securities and other
properties that the Holders may be entitled to receive in such proceeding
whether in liquidation or under any plan of reorganization or arrangement or
otherwise. Nothing herein contained shall be deemed to authorize the Trustee to
authorize or consent to or accept or adopt on behalf of any Holder any plan of
reorganization, arrangement, adjustment or composition affecting the Notes or
the rights of any Holder, or to authorize the Trustee to vote in respect of the
claim of any Holder in any such proceeding.

 

70

 

Section 6.10           Priorities.

 

If the Trustee collects any money pursuant to this
Article 6, it shall pay out the money in the following order:

 

First:      to
the Trustee, its agents and attorneys for amounts due under Section 7.07
hereof, including payment of all compensation, expenses and liabilities
incurred, and all advances made, by the Trustee and the costs and expenses of
collection;

 

Second:  to
Holders of Notes for amounts due and unpaid on the Notes for principal, premium
and Additional Interest, if any, and interest, ratably, without preference or
priority of any kind, according to the amounts due and payable on the Notes for
principal, premium and Additional Interest, if any, and interest, respectively;
and

 

Third:     to
the Company or to such party as a court of competent jurisdiction shall direct.

 

The Trustee may fix a record date and payment date for
any payment to Holders of Notes pursuant to this Section 6.10.

 

Section 6.11           Undertaking for Costs.

 

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

 

ARTICLE 7

TRUSTEE

 

Section 7.01           Duties of Trustee.

 

(a)           If an Event of Default has occurred
and is continuing, the Trustee will exercise such of the rights and powers
vested in it by this Indenture, and use the same degree of care and skill in
its exercise, as a prudent person would exercise or use under the circumstances
in the conduct of such person’s own affairs.

 

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

 

(1)           the duties of the Trustee will be determined solely by
the express provisions of this Indenture and the Trustee need perform only
those duties that are specifically set forth in this Indenture and no others,
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. 

 

71

 

However, the Trustee will examine the certificates and
opinions to determine whether or not they conform to the requirements of this
Indenture.

 

(c)           The Trustee may not be relieved from
liabilities for its own negligent action, its own negligent failure to act, or
its own willful misconduct, except that:

 

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

 

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

 

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

 

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

 

(e)           No provision of this Indenture will
require the Trustee to expend or risk its own funds or incur any liability. The
Trustee will be under no obligation to exercise any of its rights and powers
under this Indenture at the request of any Holders, unless such Holder has
offered to the Trustee security and indemnity satisfactory to it against any
loss, liability or expense.

 

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

 

Section 7.02           Rights of Trustee.

 

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

 

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

 

(c)           The Trustee may act through its
attorneys and agents and will not be responsible for the misconduct or
negligence of any agent appointed with due care.

 

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

 

(e)           Unless otherwise specifically
provided in this Indenture, any demand, request, direction or notice from the
Company will be sufficient if signed by an Officer of the Company.

 

(f)            The Trustee will 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 unless such Holders
have offered to 

 

72

 

the Trustee reasonable indemnity or
security against the losses, liabilities and expenses that might be incurred by
it in compliance with such request or direction.

 

Section 7.03           Individual Rights of Trustee.

 

The Trustee in its individual or any other capacity
may become the owner or pledgee of Notes and may otherwise deal with the
Company or any Affiliate of the Company with the same rights it would have if
it were not Trustee. However, in the event that the Trustee acquires any
conflicting interest it must eliminate such conflict within 90 days, apply to
the SEC for permission to continue as trustee (if this Indenture has been
qualified under the TIA) or resign. Any Agent may do the same with like rights
and duties. The Trustee is also subject to Sections 7.10 and 7.11 hereof.

 

Section 7.04           Trustee’s Disclaimer.

 

The Trustee will not be responsible for and makes no
representation as to the validity or adequacy of this Indenture or the Notes,
it shall not be accountable for the Company’s use of the proceeds from the
Notes or any money paid to the Company or upon the Company’s direction under
any provision of this Indenture, it will not be responsible for the use or
application of any money received by any Paying Agent other than the Trustee,
and it will not be responsible for any statement or recital herein or any
statement in the Notes or any other document in connection with the sale of the
Notes or pursuant to this Indenture other than its certificate of
authentication.

 

Section 7.05           Notice of Defaults.

 

If a Default or Event of Default occurs and is
continuing and if it is known to the Trustee, the Trustee will mail to Holders
of Notes a notice of the Default or Event of Default within 90 days after it
occurs. Except in the case of a Default or Event of Default in payment of
principal of, premium or Additional Interest, if any, or interest on, any Note,
the Trustee may withhold the notice if and so long as a committee of its
Responsible Officers in good faith determines that withholding the notice is in
the interests of the Holders of the Notes.

 

Section 7.06           Reports by Trustee to Holders of the Notes.

 

(a)           Within 60 days after each May 15
beginning with the May 15 following the date of this Indenture, and for so long
as Notes remain outstanding, the Trustee will mail to the Holders of the Notes
a brief report dated as of such reporting date that complies with TIA
§ 313(a) (but if no event described in TIA § 313(a) has occurred
within the twelve months preceding the reporting date, no report need be
transmitted). The Trustee also will comply with TIA § 313(b)(2). The
Trustee will also transmit by mail all reports as required by TIA
§ 313(c).

 

(b)           A copy of each report at the time of
its mailing to the Holders of Notes will be mailed by the Trustee to the
Company and filed by the Trustee with the SEC and each stock exchange on which
the Notes are listed in accordance with TIA § 313(d). The Company will
promptly notify the Trustee when the Notes are listed on any stock exchange.

 

Section 7.07           Compensation and Indemnity.

 

(a)           The Company will pay to the Trustee
from time to time reasonable compensation for its acceptance of this Indenture
and services hereunder as the Company and the Trustee may agree upon from time
to time in writing. The Trustee’s compensation will not be limited by any law
on compensation of a trustee of an express trust. The Company will reimburse
the Trustee promptly upon request for all 

 

73

 

reasonable out-of-pocket
disbursements, advances and expenses incurred or made by it in addition to the
compensation for its services. Such expenses will include the reasonable
compensation, disbursements and out-of-pocket expenses of the Trustee’s agents
and counsel.

 

(b)           The Company and the Guarantors will
indemnify the Trustee against any and all losses, liabilities or expenses
incurred by it arising out of or in connection with the acceptance or
administration of its duties under this Indenture, including the costs and
expenses of enforcing this Indenture against the Company and the Guarantors
(including this Section 7.07) and defending itself against any claim (whether
asserted by the Company, the Guarantors, any Holder or any other Person) or
liability in connection with the exercise or performance of any of its powers
or duties hereunder, except to the extent any such loss, liability or expense
may be attributable to its negligence or bad faith. The Trustee will notify the
Company promptly of any claim for which it may seek indemnity. Failure by the
Trustee to so notify the Company will not relieve the Company or any of the
Guarantors of their obligations hereunder. The Company or such Guarantor will
defend the claim and the Trustee will cooperate in the defense. The Trustee may
have separate counsel and the Company will pay the reasonable fees and expenses
of such counsel; provided that the Company shall
not be required to pay such fees and expenses if it assumes the defeasance of
the Trustee and, in the reasonable judgment of outside counsel to the Trustee,
there is no conflict of interest between the Company and the Trustee with
respect to such defeasance. Neither the Company nor any Guarantor need pay for any
settlement made without its consent, which consent will not be unreasonably
withheld.

 

(c)           The obligations of the Company and
the Guarantors under this Section 7.07 will survive the satisfaction and
discharge of this Indenture.

 

(d)           To secure the Company’s and the Guarantors’
payment obligations in this Section 7.07, the Trustee will have a Lien prior to
the Notes on all money or property held or collected by the Trustee, except
that held in trust to pay principal and interest on particular Notes. Such Lien
will survive the satisfaction and discharge of this Indenture.

 

(e)           When the Trustee incurs expenses or
renders services after an Event of Default specified in Section 6.01(7) or (8) hereof
occurs, the expenses and the compensation for the services (including the fees
and expenses of its agents and counsel) are intended to constitute expenses of
administration under any Bankruptcy Law.

 

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

 

Section 7.08           Replacement of Trustee.

 

(a)           A resignation or removal of the
Trustee and appointment of a successor Trustee will become effective only upon
the successor Trustee’s acceptance of appointment as provided in this Section
7.08.

 

(b)           The Trustee may resign in writing at
any time and be discharged from the trust hereby created by so notifying the
Company. The Holders of a majority in aggregate principal amount of the then
outstanding Notes may remove the Trustee by so notifying the Trustee and the
Company in writing. The Company may remove the Trustee if:

 

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

 

(2)           the Trustee is adjudged a bankrupt or an insolvent or
an order for relief is entered with respect to the Trustee under any Bankruptcy
Law;

 

74

 

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

 

(4)           the Trustee becomes incapable of acting hereunder.

 

(c)           If the Trustee resigns or is removed
or if a vacancy exists in the office of Trustee for any reason, the Company
will promptly appoint a successor Trustee. Within one year after the successor
Trustee takes office, the Holders of a majority in aggregate principal amount
of the then outstanding Notes may appoint a successor Trustee to replace the
successor Trustee appointed by the Company.

 

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

 

(e)           If the Trustee, after written
request by any Holder who has been a Holder for at least six months, fails to
comply with Section 7.10 hereof, such Holder may petition any court of
competent jurisdiction for the removal of the Trustee and the appointment of a
successor Trustee.

 

(f)            A successor Trustee will deliver a
written acceptance of its appointment to the retiring Trustee and to the
Company. Thereupon, the resignation or removal of the retiring Trustee will
become effective, and the successor Trustee will have all the rights, powers
and duties of the Trustee under this Indenture. The successor Trustee will mail
a notice of its succession to Holders. The retiring Trustee will promptly
transfer all property held by it as Trustee to the successor Trustee; provided all sums owing to the Trustee hereunder have been
paid. Notwithstanding replacement of the Trustee pursuant to this Section 7.08,
the Company’s obligations under Section 7.07 hereof will continue for the
benefit of the retiring Trustee.

 

Section 7.09           Successor Trustee by Merger, etc.

 

If the Trustee consolidates, merges or converts into,
or transfers all or substantially all of its corporate trust business to,
another corporation, the successor corporation without any further act will be
the successor Trustee.

 

Section 7.10           Eligibility; Disqualification.

 

There will at all times be a Trustee hereunder that is
a corporation organized and doing business under the laws of the United States
of America or of any state thereof that is authorized under such laws to
exercise corporate trustee power, that is subject to supervision or examination
by federal or state authorities and that has a combined capital and surplus of
at least $100.0 million as set forth in its most recent published annual report
of condition.

 

This Indenture will always have a Trustee who
satisfies the requirements of TIA § 310(a)(1), (2) and (5). The Trustee is
subject to TIA § 310(b).

 

Section 7.11           Preferential Collection of Claims Against Company.

 

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

 

75

 

ARTICLE 8

LEGAL DEFEASANCE AND COVENANT DEFEASANCE

 

Section 8.01           Option to Effect Legal Defeasance or Covenant
Defeasance.

 

The Company may at any time, at the option of its
Board of Directors evidenced by a resolution set forth in an Officers’
Certificate, elect to have either Section 8.02 or 8.03 hereof be applied to all
outstanding Notes upon compliance with the conditions set forth below in this
Article 8.

 

Section 8.02           Legal Defeasance and Discharge.

 

Upon the Company’s exercise under Section 8.01 hereof
of the option applicable to this Section 8.02, the Company and each of the
Guarantors will, subject to the satisfaction of the conditions set forth in
Section 8.04 hereof, be deemed to have been discharged from their obligations
with respect to all outstanding Notes (including the Note Guarantees) on the
date the conditions set forth below are satisfied (hereinafter, “Legal Defeasance”). For this purpose, Legal Defeasance means
that the Company and the Guarantors will be deemed to have paid and discharged
the entire Indebtedness represented by the outstanding Notes (including the
Note Guarantees), which will thereafter be deemed to be “outstanding” only for
the purposes of Section 8.05 hereof and the other Sections of this Indenture
referred to in clauses (1) and (2) below, and to have satisfied all their other
obligations under such Notes, the Note Guarantees and this Indenture (and the
Trustee, on demand of and at the expense of the Company, shall execute proper
instruments acknowledging the same), except for the following provisions which
will survive until otherwise terminated or discharged hereunder:

 

(1)           the rights of Holders of outstanding Notes to receive
payments in respect of the principal of, or interest or premium and Additional
Interest, if any, on, such Notes when such payments are due from the trust
referred to in Section 8.04 hereof;

 

(2)           the Company’s obligations with respect to such Notes
under Article 2 and Section 4.02 hereof;

 

(3)           the rights, powers, trusts, duties and immunities of
the Trustee hereunder and the Company’s and the Guarantors’ obligations in
connection therewith; and

 

(4)           this Article 8.

 

Subject to compliance with this Article 8, the Company
may exercise its option under this Section 8.02 notwithstanding the prior
exercise of its option under Section 8.03 hereof.

 

Section 8.03           Covenant Defeasance.

 

Upon the Company’s exercise under Section 8.01 hereof
of the option applicable to this Section 8.03, the Company and each of the
Guarantors will, subject to the satisfaction of the conditions set forth in
Section 8.04 hereof, be released from their obligations under the covenants
contained in Sections 4.03, 4.07, 4.08, 4.09, 4.10, 4.11, 4.12, 4.13, 4.15,
4.16, 4.17, 4.18, 4.19 hereof and clause (4) of Section 5.01 hereof with
respect to the outstanding Notes on and after the date the conditions set forth
in Section 8.04 hereof are satisfied (hereinafter, “Covenant
Defeasance”), and the Notes will thereafter be deemed not “outstanding”
for the purposes of any direction, waiver, consent or declaration or act of
Holders (and the consequences of any thereof) in connection with such
covenants, but will continue to be deemed “outstanding” for all other purposes
hereunder (it being understood that such Notes will not be deemed outstanding
for accounting purposes). For this purpose, Covenant Defeasance means that,
with respect to 

 

76

 

the outstanding Notes and
Note Guarantees, the Company and the Guarantors may omit to comply with and
will have no liability in respect of any term, condition or limitation set
forth in any such covenant, whether directly or indirectly, by reason of any
reference elsewhere herein to any such covenant or by reason of any reference
in any such covenant to any other provision herein or in any other document and
such omission to comply will not constitute a Default under Section 6.01
hereof, but, except as specified above, the remainder of this Indenture and
such Notes and Note Guarantees will be unaffected thereby. In addition, upon
the Company’s exercise under Section 8.01 hereof of the option applicable to
this Section 8.03, subject to the satisfaction of the conditions set forth in
Section 8.04 hereof, Sections 6.01(3) through 6.01(5), inclusive, hereof will
not constitute Events of Default.

 

Section 8.04           Conditions to Legal or Covenant Defeasance.

 

In order to exercise either Legal Defeasance or
Covenant Defeasance under either Section 8.02 or 8.03 hereof:

 

(1)           the Company must irrevocably deposit with the Trustee,
in trust, for the benefit of the Holders, cash in U.S. dollars, non-callable
Government Securities, or a combination thereof, in such amounts as will be
sufficient, in the opinion of a nationally recognized investment bank,
appraisal firm, or firm of independent public accountants, to pay the principal
of, premium and Additional Interest, if any, and interest on, the outstanding
Notes on the stated date for payment thereof or on the applicable redemption
date, as the case may be, and the Company must specify whether the Notes are
being defeased to such stated date for payment or to a particular redemption
date;

 

(2)           in the case of an election under Section 8.02 hereof,
the Company must deliver to the Trustee an Opinion of Counsel confirming that:

 

(A)          the Company has received from, or there has been
published by, the Internal Revenue Service a ruling; or

 

(B)           since the date of this Indenture, there has been a
change in the applicable federal income tax law,

 

in either case to the effect that, and based thereon
such Opinion of Counsel shall confirm that, the Holders of the outstanding
Notes will not recognize income, gain or loss for federal income tax purposes
as a result of such Legal Defeasance and will be subject to federal income tax
on the same amounts, in the same manner and at the same times as would have
been the case if such Legal Defeasance had not occurred;

 

(3)           in the case of an election under Section 8.03 hereof,
the Company must deliver to the Trustee an Opinion of Counsel confirming that
the Holders of the outstanding Notes will not recognize income, gain or loss
for federal income tax purposes as a result of such Covenant Defeasance and
will be subject to federal income tax on the same amounts, in the same manner
and at the same times as would have been the case if such Covenant Defeasance
had not occurred;

 

(4)           no Default shall have occurred and be continuing on
the date of such deposit (other than a Default resulting from the borrowing of
funds to be applied to such deposit) and the deposit will not result in a
breach or violation of, or constitute a default under, any other instrument to
which the Company or any Guarantor is a party or by which the Company or any
Guarantor is bound;

 

77

 

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

 

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

 

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

 

Section 8.05           Deposited Money and Government Securities to be Held
in Trust; Other Miscellaneous Provisions.

 

Subject to Section 8.06 hereof, all money and
non-callable Government Securities (including the proceeds thereof) deposited
with the Trustee (or other qualifying trustee, collectively for purposes of
this Section 8.05, the “Trustee”)
pursuant to Section 8.04 hereof in respect of the outstanding Notes will be
held in trust and applied by the Trustee, in accordance with the provisions of
such Notes and this Indenture, to the payment, either directly or through any
Paying Agent (including the Company acting as 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 and Additional Interest, if any, and
interest, but such money need not be segregated from other funds except to the
extent required by law.

 

The Company will pay and indemnify the Trustee against
any tax, fee or other charge imposed on or assessed against the cash or
non-callable Government Securities deposited pursuant to Section 8.04 hereof or
the principal and interest received in respect thereof other than any such tax,
fee or other charge which by law is for the account of the Holders of the
outstanding Notes.

 

Notwithstanding anything in this Article 8 to the
contrary, the Trustee will deliver or pay to the Company from time to time upon
the request of the Company any money or non-callable Government Securities held
by it as provided in Section 8.04 hereof which, in the opinion of a nationally
recognized firm of independent public accountants expressed in a written
certification thereof delivered to the Trustee (which may be the opinion
delivered under Section 8.04(1) hereof), are in excess of the amount thereof
that would then be required to be deposited to effect an equivalent Legal
Defeasance or Covenant Defeasance.

 

Section 8.06           Repayment to Company.

 

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, premium or Additional Interest, if any, or interest on, any Note and
remaining unclaimed for two years after such principal, premium or Additional
Interest, if any, or interest has become due and payable shall be paid to the
Company on its request or (if then held by the Company) will be discharged from
such trust; and the Holder of such Note will thereafter be permitted to 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, will thereupon cease; provided,
however, that the Trustee or such Paying Agent, before being
required to make any such repayment, may at the expense of the Company cause to
be published once, in the New York Times and The Wall Street Journal (national
edition), notice that such money remains unclaimed and that, after a 

 

78

 

date specified therein,
which will not be less than 30 days from the date of such notification or publication,
any unclaimed balance of such money then remaining will be repaid to the
Company.

 

Section 8.07           Reinstatement.

 

If the Trustee or Paying Agent is unable to apply any
U.S. dollars or non-callable Government Securities in accordance with Section
8.02 or 8.03 hereof, 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 Company’s and the Guarantors’
obligations under this Indenture and the Notes and the Note Guarantees will be
revived and reinstated as though no deposit had occurred pursuant to Section
8.02 or 8.03 hereof until such time as the Trustee or Paying Agent is permitted
to apply all such money in accordance with Section 8.02 or 8.03 hereof, as the
case may be; provided, however, that, if the
Company makes any payment of principal of, premium or Additional Interest, if
any, or interest on, any Note following the reinstatement of its obligations,
the Company will be subrogated to the rights of the Holders of such Notes to
receive such payment from the money held by the Trustee or Paying Agent.

 

ARTICLE 9

AMENDMENT, SUPPLEMENT AND WAIVER

 

Section 9.01           Without Consent of Holders of Notes.

 

Notwithstanding Section 9.02 of this Indenture, the
Company, the Guarantors and the Trustee may amend or supplement this Indenture
or the Notes or the Note Guarantees without the consent of any Holder of Note:

 

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

 

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

 

(3)           to provide for the assumption of the Company’s or a
Guarantor’s obligations to the Holders of the Notes and Note Guarantees by a
successor to the Company or such Guarantor pursuant to Article 5 or Article 11
hereof;

 

(4)           to make any change that would provide any additional
rights or benefits to the Holders of the Notes or that does not adversely
affect the legal rights hereunder of any Holder;

 

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

 

(6)           to conform the text of this Indenture or the Notes to
any provision of the “Description of Notes” section of the Company’s Offering
Memorandum dated September 28, 2006, relating to the initial offering of the
Notes, to the extent that such provision in that “Description of Notes” was
intended to be a verbatim recitation of a provision of this Indenture, the Note
Guarantees or the Notes;

 

(7)           to provide for the issuance of Additional Notes in
accordance with the limitations set forth in this Indenture as of the date
hereof;

 

(8)           to allow any Guarantor to execute a supplemental
indenture and/or a Note Guarantee with respect to the Notes;

 

79

 

(9)           to secure the Notes or any Note Guarantee; or

 

(10)         to add to the covenants of the Company for the benefit
of the Holders of Notes or surrender any right or power conferred upon the
Company.

 

Upon the request of the Company accompanied by a
resolution of its Board of Directors authorizing the execution of any such
amended or supplemental indenture, and upon receipt by the Trustee of the
documents described in Section 7.02 hereof, the Trustee will join with the
Company and the Guarantors in the execution of any amended or supplemental
indenture authorized or permitted by the terms of this Indenture and to make
any further appropriate agreements and stipulations that may be therein
contained, but the Trustee will not be obligated to enter into such amended or
supplemental indenture that affects its own rights, duties or immunities under
this Indenture or otherwise.

 

Section 9.02           With Consent of Holders of Notes.

 

Except as provided below in this Section 9.02, the
Company and the Trustee may amend or supplement this Indenture (including,
without limitation, Section 3.09, 4.10 and 4.15 hereof and, including, without limitation, any amendment
to, or waiver of, the provisions of this Indenture relating to subordination
that adversely affects the rights of the Holders of the Notes) and the
Notes and the Note Guarantees with the consent of the Holders of at least a
majority in aggregate principal amount of the then outstanding Notes (including,
without limitation, Additional Notes, if any) voting as a single class
(including, without limitation, consents obtained in connection with a tender
offer or exchange offer for, or purchase of, the Notes), and, subject to
Sections 6.04 and 6.07 hereof, any existing Default or Event of Default (other
than a Default in the payment of the principal of, premium or Additional
Interest, if any, or interest on, the Notes, except a payment default resulting
from an acceleration that has been rescinded) or compliance with any provision of
this Indenture or the Notes or the Note Guarantees may be waived with the
consent of the Holders of a majority in aggregate principal amount of the then
outstanding Notes (including, without limitation, Additional Notes, if any)
voting as a single class (including, without limitation, consents obtained in
connection with a tender offer or exchange offer for, or purchase of, the
Notes).

 

Upon the request of the Company accompanied by a
resolution of its Board of Directors authorizing the execution of any such
amended or supplemental indenture, and upon the filing with the Trustee of
evidence satisfactory to the Trustee of the consent of the Holders of Notes as
aforesaid, and upon receipt by the Trustee of the documents described in
Section 7.02 hereof, the Trustee will join with the Company and the Guarantors
in the execution of such amended or supplemental indenture unless such amended
or supplemental indenture directly affects the Trustee’s own rights, duties or
immunities under this Indenture or otherwise, in which case the Trustee may in
its discretion, but will not be obligated to, enter into such amended or
supplemental Indenture.

 

It is not be necessary for the consent of the Holders
of Notes under this Section 9.02 to approve the particular form of any proposed
amendment, supplement or waiver, but it is sufficient if such consent approves
the substance thereof.

 

After an amendment, supplement or waiver under this
Section 9.02 becomes effective, the Company will mail to the Holders of Notes
affected thereby a notice briefly describing the amendment, supplement or
waiver. Any failure of the Company to mail such notice, or any defect therein,
will not, however, in any way impair or affect the validity of any such amended
or supplemental indenture or waiver. Subject to Sections 6.04 and 6.07 hereof,
the Holders of a majority in aggregate principal amount of the Notes then
outstanding voting as a single class may waive compliance in a particular
instance by the Company with any provision of this Indenture or the Notes or
the Note Guarantees. However, 

 

80

 

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

 

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

 

(2)           reduce the principal of or change the fixed maturity
of any Note or alter or waive any of the provisions with respect to the
redemption of the Notes (except as provided above with respect to Sections
3.09, 4.10 and 4.15 hereof);

 

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

 

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

 

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

 

(6)           make any change in the provisions of this Indenture
relating to waivers of past Defaults or the rights of Holders of Notes to
receive payments of principal of, or interest or premium or Additional Interest,
if any, on, the Notes;

 

(7)           waive a redemption payment with respect to any Note
(other than a payment required by Sections 3.09, 4.10 or 4.15 hereof);

 

(8)           release any Guarantor from any of its obligations
under its Note Guarantee or this Indenture, except in accordance with the terms
of this Indenture; or

 

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

 

Section 9.03           Compliance with Trust Indenture Act.

 

Every amendment or supplement to this Indenture or the
Notes will be set forth in a amended or supplemental indenture that complies
with the TIA as then in effect.

 

Section 9.04           Revocation and Effect of Consents.

 

Until an amendment, supplement or waiver becomes
effective, a consent to it by a Holder of a Note is a continuing consent by the
Holder of a Note and every subsequent Holder of a Note or portion of a Note
that evidences the same debt as the consenting Holder’s Note, even if notation
of the consent is not made on any Note. However, any such Holder of a Note or
subsequent Holder of a Note may revoke the consent as to its Note if the
Trustee receives written notice of revocation before the date the amendment,
supplement or waiver becomes effective. An amendment, supplement or waiver
becomes effective in accordance with its terms and thereafter binds every
Holder.

 

Section 9.05           Notation on or Exchange of Notes.

 

The Trustee may place an appropriate notation about an
amendment, supplement or waiver on any Note thereafter authenticated. The
Company in exchange for all Notes may issue and the Trustee 

 

81

 

shall, upon receipt of an
Authentication Order, authenticate new Notes that reflect the amendment,
supplement or waiver.

 

Failure to make the appropriate notation or issue a
new Note will not affect the validity and effect of such amendment, supplement
or waiver.

 

Section 9.06           Trustee to Sign Amendments, etc.

 

The Trustee will sign any amended or supplemental
indenture authorized pursuant to this Article 9 if the amendment or supplement
does not adversely affect the rights, duties, liabilities or immunities of the
Trustee. The Company may not sign an amended or supplemental indenture until
the Board of Directors of the Company approves it. In executing any amended or
supplemental indenture, the Trustee will be entitled to receive and (subject to
Section 7.01 hereof) will be fully protected in relying upon, in addition to
the documents required by Section 13.04 hereof, an Officers’ Certificate and an
Opinion of Counsel stating that the execution of such amended or supplemental
indenture is authorized or permitted by this Indenture.

 

ARTICLE 10

SUBORDINATION

 

Section 10.01         Agreement to Subordinate.

 

The Company agrees, and each Holder by accepting a
Note agrees, that the Indebtedness evidenced by the Notes is subordinated in
right of payment, to the extent and in the manner provided in this Article 10,
to the prior payment in full of all Senior Debt (whether outstanding on the
date hereof or hereafter created, incurred, assumed or guaranteed), and that
the subordination is for the benefit of the holders of Senior Debt.

 

Section 10.02         Liquidation; Dissolution; Bankruptcy.

 

Upon any distribution to creditors of the Company in a
liquidation or dissolution of the Company or in a bankruptcy, reorganization,
insolvency, receivership or similar proceeding relating to the Company or its
property, in an assignment for the benefit of creditors or any marshaling of
the Company’s assets and liabilities:

 

(1)           holders of Senior Debt will be entitled to receive
payment in full of all Obligations due in respect of such Senior Debt
(including interest after the commencement of any bankruptcy proceeding at the
rate specified in the applicable Senior Debt) before the Holders of Notes will be
entitled to receive any payment with respect to the Notes (except that Holders
of Notes may receive and retain Permitted Junior Securities and payments made
from any defeasance trust created pursuant to Section 8.01 hereof or any trust
created pursuant to Section 12.01 hereof); and

 

(2)           until all Obligations with respect to Senior Debt (as
provided in clause (1) above) are paid in full, any distribution to which
Holders would be entitled but for this Article 10 will be made to holders of
Senior Debt (except that Holders of Notes may receive and retain Permitted
Junior Securities and payments made from any defeasance trust created pursuant
to Section 8.01 hereof or any trust created pursuant to Section 12.01 hereof),
as their interests may appear.

 

82

 

Section 10.03         Default on Designated Senior Debt.

 

(a)           The Company may not make any payment
or distribution to the Trustee or any Holder in respect of Obligations with
respect to the Notes and may not acquire from the Trustee or any Holder any
Notes for cash or property (other than Permitted Junior Securities and payments
made from any defeasance trust created pursuant to Section 8.01 hereof or any
trust created pursuant to Section 12.01 hereof) until all principal and other
Obligations with respect to the Senior Debt have been paid in full if:

 

(1)           Either of the following have occurred:

 

(a)           any Senior Debt is not paid when due; or

 

(b)           any other default on Senior Debt occurs and the
maturity of such Senior Debt is accelerated in accordance with its terms;

 

unless, in either case, the default
has been cured or waived and any such acceleration has been rescinded or such
Senior Debt has been paid in full in cash or Cash Equivalents; provided, that the Company may pay the Notes if the Company
and the Trustee receive written notice approving such payment from the
Representatives of the Senior Debt with respect to which either of the events
set forth in clause 10.03(a)(1) above has occurred and is continuing; or

 

(2)           during a Payment Blockage Period, which commences when
the Trustee receives a written notice (a “Payment Blockage Notice”),
with a copy to the Company, of a default, other than a default set forth in
clause 10.03(a)(1), on any Designated Senior Debt that permits the holders of
the Designated Senior Debt to accelerate its maturity immediately without
either further notice (except such notice as may be required to effect the
acceleration) or the expiration of applicable grace periods, from the
Representative of the Holders of any Designated Senior Debt and shall continue
for 179 days thereafter (the “Payment Blockage Period”);
provided that the Payment Blockage
Period shall end earlier if such Payment Blockage Period is terminated:

 

(a)           by written notice to the Trustee and the Company by
the Person or Persons who gave such Payment Blockage Notice;

 

(b)           because the default giving rise to that Payment
Blockage Notice is no longer continuing or has been waived; or

 

(c)           because the Designated Senior Debt shall have come due
and shall have been paid in full in cash.

 

(b)           The Company may and will resume
payments on and distributions in respect of the Notes and may acquire them upon
the earlier of:

 

(1)           in the case of a default described in Section
10.03(a)(1), upon the date on which such default is cured or waived; and

 

(2)           in the case of a default giving rise to a Payment
Blockage Period, upon the earlier of the date on which such nonpayment default
is cured or waived, 179 days after the date on which the applicable Payment
Blockage Notice is received or the Designated Senior Debt shall have come due
and shall have been paid in full in cash, unless the maturity of any Designated
Senior Debt has been accelerated,

 

83

 

in each case if this Article 10
otherwise permits the payment, distribution or acquisition at the time of such
payment or acquisition.

 

No nonpayment default that existed or was continuing
on the date of delivery of any Payment Blockage Notice to the Trustee may be,
or may be made, the basis for a subsequent Payment Blockage Notice unless such
default has have been waived for a period of not less than 90 days.

 

No new Payment Blockage Notice may be delivered unless
and until:

 

(1)           360 days have elapsed since the delivery of the
immediately prior Payment Blockage Notice; and

 

(2)           all scheduled payments of principal, interest and
premium and Additional Interest, if any, on the Notes that have come due have
been paid in full in cash.

 

Section 10.04         Acceleration of Notes.

 

If payment of the Notes is accelerated because of an
Event of Default, the Company will promptly notify holders of Senior Debt of
the acceleration.

 

Section 10.05         When Distribution Must Be Paid Over.

 

In the event that the Trustee or any Holder receives
any payment of any Obligations with respect to the Notes (other than Permitted
Junior Securities and payments made from any defeasance trust created pursuant
to Section 8.01 hereof or any trust created pursuant to Section 12.01 hereof)
at a time when the Trustee or such Holder, as applicable, has actual knowledge
that such payment is prohibited by Section 10.03 hereof, such payment will be
held by the Trustee or such Holder, in trust for the benefit of, and will be
paid forthwith over and delivered, upon written request, to, the holders of
Senior Debt as their interests may appear or their Representative under the
agreement, indenture or other document (if any) pursuant to which Senior Debt
may have been issued, as their respective interests may appear, for application
to the payment of all Obligations with respect to Senior Debt remaining unpaid
to the extent necessary to pay such Obligations in full in accordance with
their terms, after giving effect to any concurrent payment or distribution to
or for the holders of Senior Debt.

 

With respect to the holders of Senior Debt, the
Trustee undertakes to perform only those obligations on the part of the Trustee
as are specifically set forth in this Article 10, and no implied covenants or
obligations with respect to the holders of Senior Debt will be read into this
Indenture against the Trustee. The Trustee will not be deemed to owe any
fiduciary duty to the holders of Senior Debt, and will not be liable to any
such holders if the Trustee pays over or distributes to or on behalf of Holders
or the Company or any other Person money or assets to which any holders of
Senior Debt are then entitled by virtue of this Article 10, except if such
payment is made as a result of the willful misconduct or gross negligence of the
Trustee.

 

Section 10.06         Notice by Company.

 

The Company will promptly notify the Trustee and the
Paying Agent of any facts known to the Company that would cause a payment of
any Obligations with respect to the Notes to violate this Article 10, but
failure to give such notice will not affect the subordination of the Notes to
the Senior Debt as provided in this Article 10.

 

84

 

Section 10.07         Subrogation.

 

After all Senior Debt is paid in full and until the
Notes are paid in full, Holders of Notes will be subrogated (equally and
ratably with all other Indebtedness pari passu with
the Notes) to the rights of holders of Senior Debt to receive distributions
applicable to Senior Debt to the extent that distributions otherwise payable to
the Holders of Notes have been applied to the payment of Senior Debt. A
distribution made under this Article 10 to holders of Senior Debt that
otherwise would have been made to Holders of Notes is not, as between the
Company and Holders, a payment by the Company on the Notes.

 

Section 10.08         Relative Rights.

 

This Article 10 defines the relative rights of Holders
of Notes and holders of Senior Debt. Nothing in this Indenture will:

 

(1)           impair, as between the Company and Holders of Notes,
the obligation of the Company, which is absolute and unconditional, to pay principal
of, premium and interest and Additional Interest, if any, on, the Notes in
accordance with their terms;

 

(2)           affect the relative rights of Holders of Notes and
creditors of the Company other than their rights in relation to holders of
Senior Debt; or

 

(3)           prevent the Trustee or any Holder of Notes from
exercising its available remedies upon a Default or Event of Default, subject
to the rights of holders and owners of Senior Debt to receive distributions and
payments otherwise payable to Holders of Notes.

 

If the Company fails because of this Article 10 to pay
principal of, premium or interest or Additional Interest, if any, on, a Note on
the due date, the failure is still a Default or Event of Default.

 

Section 10.09         Subordination May Not Be Impaired by Company.

 

No right of any holder of Senior Debt to enforce the
subordination of the Indebtedness evidenced by the Notes may be impaired by any
act or failure to act by the Company or any Holder or by the failure of the
Company or any Holder to comply with this Indenture.

 

Section 10.10         Distribution or Notice to Representative.

 

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

 

Upon any payment or distribution of assets of the
Company referred to in this Article 10, the Trustee and the Holders of Notes
will be entitled to rely upon any order or decree made by any court of
competent jurisdiction or upon any certificate of such Representative or of the
liquidating trustee or agent or other Person making any distribution to the
Trustee or to the Holders of Notes for the purpose of ascertaining the Persons
entitled to participate in such distribution, the holders of the Senior Debt
and other Indebtedness of the Company, the amount thereof or payable thereon,
the amount or amounts paid or distributed thereon and all other facts pertinent
thereto or to this Article 10.

 

Section 10.11         Rights of Trustee and Paying Agent.

 

Notwithstanding the provisions of this Article 10 or
any other provision of this Indenture, the Trustee will not be charged with
knowledge of the existence of any facts that would prohibit the making 

 

85

 

of any payment or
distribution by the Trustee, and the Trustee and the Paying Agent may continue
to make payments on the Notes, unless the Trustee has received at its Corporate
Trust Office at least five Business Days prior to the date of such payment
written notice of facts that would cause the payment of any Obligations with
respect to the Notes to violate this Article 10. Only the Company or a
Representative may give the notice. Nothing in this Article 10 will impair the
claims of, or payments to, the Trustee under or pursuant to Section 7.07
hereof.

 

Subject to Sections 7.03, 7.10 and 7.11 hereof, the
Trustee or any Agent in its individual or any other capacity may hold Senior
Debt with the same rights it would have if it were not Trustee or an Agent.

 

Section 10.12         Authorization to Effect Subordination.

 

Each Holder of Notes, by the Holder’s acceptance
thereof, authorizes and directs the Trustee on such Holder’s behalf to take
such action as may be necessary or appropriate to effectuate the subordination
as provided in this Article 10, and appoints the Trustee to act as such Holder’s
attorney-in-fact for any and all such purposes. If the Trustee does not file a
proper proof of claim or proof of debt in the form required in any proceeding
referred to in Section 6.09 hereof at least 30 days before the expiration of
the time to file such claim, the Representatives are hereby authorized to file
an appropriate claim for and on behalf of the Holders of the Notes.

 

ARTICLE 11

NOTE GUARANTEES

 

Section 11.01         Guarantee.

 

(a)           Subject to this Article 11, each of
the Guarantors hereby, jointly and severally, unconditionally guarantees to
each Holder of a Note authenticated and delivered by the Trustee and to the
Trustee and its successors and assigns, irrespective of the validity and
enforceability of this Indenture, the Notes or the obligations of the Company
hereunder or thereunder, that:

 

(1)           the principal of, premium and Additional Interest, if
any, and interest on, the Notes will be promptly paid in full when due, whether
at maturity, by acceleration, redemption or otherwise, and interest on the
overdue principal of and interest on the Notes, if any, if lawful, and all
other obligations of the Company to the Holders or the Trustee hereunder or
thereunder will be promptly paid in full or performed, all in accordance with
the terms hereof and thereof; and

 

(2)           in case of any extension of time of payment or renewal
of any Notes or any of such other obligations, that same will be promptly paid
in full when due or performed in accordance with the terms of the extension or
renewal, whether at stated maturity, by acceleration or otherwise.

 

Failing payment when due of any amount so guaranteed
or any performance so guaranteed for whatever reason, the Guarantors will be
jointly and severally obligated to pay the same immediately. Each Guarantor
agrees that this is a guarantee of payment and not a guarantee of collection.

 

(b)           The Guarantors hereby agree that
their obligations hereunder are unconditional, irrespective of the validity,
regularity or enforceability of the Notes or this Indenture, the absence of any
action to enforce the same, any waiver or consent by any Holder of the Notes
with respect to any provisions hereof or thereof, the recovery of any judgment
against the Company, any action to enforce the same or any other circumstance
which might otherwise constitute a legal or equitable discharge or 

 

86

 

defense of a guarantor except by
complete performance of the obligations contained in the Notes and this
Indenture. Each Guarantor hereby waives 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 covenant that this Note
Guarantee will not be discharged except by complete performance of the
obligations contained in the Notes and this Indenture.

 

(c)           If any Holder or the Trustee is
required by any court or otherwise to return to the Company, the Guarantors or
any custodian, trustee, liquidator or other similar official acting in relation
to either the Company or the Guarantors, any amount paid by either to the
Trustee or such Holder, this Note Guarantee, to the extent theretofore
discharged, will be reinstated in full force and effect.

 

(d)           Each Guarantor agrees that it will
not be entitled to any right of subrogation in relation to the Holders in
respect of any obligations guaranteed hereby until payment in full of all
obligations guaranteed hereby. Each Guarantor further agrees that, as between
the Guarantors, on the one hand, and the Holders and the Trustee, on the other
hand, (1) the maturity of the obligations guaranteed hereby may be accelerated
as provided in Article 6 hereof for the purposes of this Note Guarantee,
notwithstanding any stay, injunction or other prohibition preventing such
acceleration in respect of the obligations guaranteed hereby, and (2) in the
event of any declaration of acceleration of such obligations as provided in
Article 6 hereof, such obligations (whether or not due and payable) will
forthwith become due and payable by the Guarantors for the purpose of this Note
Guarantee. The Guarantors will have the right to seek contribution from any
non-paying Guarantor so long as the exercise of such right does not impair the
rights of the Holders under the Note Guarantee.

 

Section 11.02         Limitation on Guarantor Liability.

 

Each Guarantor, and by its acceptance of Notes, each
Holder, hereby confirms that it is the intention of all such parties that the
Note Guarantee of such Guarantor not constitute a fraudulent transfer or
conveyance for purposes of Bankruptcy Law, the Uniform Fraudulent Conveyance
Act, the Uniform Fraudulent Transfer Act or any similar federal or state law to
the extent applicable to any Note Guarantee. To effectuate the foregoing
intention, the Trustee, the Holders and the Guarantors hereby irrevocably agree
that the obligations of such Guarantor will be limited to the maximum amount
that will, after giving effect to such maximum amount and all other contingent
and fixed liabilities of such Guarantor that are relevant under such laws, and
after giving effect to any collections from, rights to receive contribution
from or payments made by or on behalf of any other Guarantor in respect of the
obligations of such other Guarantor under this Article 11, result in the
obligations of such Guarantor under its Note Guarantee not constituting a
fraudulent transfer or conveyance.

 

Section 11.03         Execution and Delivery of Note Guarantee.

 

To evidence its Note Guarantee set forth in Section 11.01
hereof, each Guarantor hereby agrees that a notation of such Note Guarantee
substantially in the form attached as Exhibit E hereto will be endorsed by an
Officer of such Guarantor on each Note authenticated and delivered by the
Trustee and that this Indenture will be executed on behalf of such Guarantor by
one of its Officers.

 

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

 

87

 

If an Officer whose signature is on this Indenture or
on the Note Guarantee no longer holds that office at the time the Trustee
authenticates the Note on which a Note Guarantee is endorsed, the Note
Guarantee will be valid nevertheless.

 

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

 

In the event that the Company or any of its Restricted
Subsidiaries creates or acquires any Domestic Subsidiary after the date of this
Indenture, if required by Section 4.17 hereof, the Company will cause such
Domestic Subsidiary to comply with the provisions of Section 4.17 hereof and
this Article 11, to the extent applicable.

 

Section 11.04         Guarantors May Consolidate, etc., on Certain Terms.

 

Except as otherwise provided in Section 11.05 hereof,
no Guarantor may sell or otherwise dispose of all or substantially all of its
assets to, or consolidate with or merge with or into (whether or not such Guarantor
is the surviving Person) another Person, other than the Company or another
Guarantor, unless:

 

(1)           immediately after giving effect to such transaction,
no Default exists; and

 

(2)           either:

 

(a)           subject to Section 11.05 hereof, the Person acquiring the
property in any such sale or disposition or the Person formed by or surviving
any such consolidation or merger unconditionally assumes all the obligations of
that Guarantor under this Indenture, its Note Guarantee and the Registration
Rights Agreement on the terms set forth herein or therein, pursuant to a
supplemental indenture in form and substance reasonably satisfactory to the
Trustee; or

 

(b)           the Net Proceeds of such sale or other disposition are
applied in accordance with the applicable provisions of this Indenture,
including without limitation, Section 4.10 hereof.

 

In case of any such consolidation, merger, sale or
conveyance and upon the assumption by the successor Person, by supplemental
indenture, executed and delivered to the Trustee and reasonably satisfactory in
form to the Trustee, of the Note Guarantee endorsed upon the Notes and the due
and punctual performance of all of the covenants and conditions of this
Indenture to be performed by the Guarantor, such successor Person will succeed
to and be substituted for the Guarantor with the same effect as if it had been
named herein as a Guarantor. Such successor Person thereupon may cause to be
signed any or all of the Note Guarantees to be endorsed upon all of the Notes
issuable hereunder which theretofore shall not have been signed by the Company
and delivered to the Trustee. All the Note Guarantees so issued will in all
respects have the same legal rank and benefit under this Indenture as the Note
Guarantees theretofore and thereafter issued in accordance with the terms of
this Indenture as though all of such Note Guarantees had been issued at the
date of the execution hereof.

 

Except as set forth in Articles 4 and 5 hereof, and
notwithstanding clauses 2(a) and (b) above, nothing contained in this Indenture
or in any of the Notes will prevent any consolidation or merger of a Guarantor
with or into the Company or another Guarantor, or will prevent any sale or
conveyance of the property of a Guarantor as an entirety or substantially as an
entirety to the Company or another Guarantor.

 

88

 

Section 11.05         Releases.

 

(a)           In the
event of any sale or other disposition of all or substantially all of the
assets of any Guarantor, by way of merger, consolidation or otherwise, or a
sale or other disposition of all of the Capital Stock of any Guarantor, in each
case to a Person that is not (either before or after giving effect to such
transactions) the Company or a Restricted Subsidiary of the Company, then such Guarantor
(in the event of a sale or other disposition, by way of merger, consolidation
or otherwise, of all of the Capital Stock of such Guarantor) or the corporation
acquiring the property (in the event of a sale or other disposition of all or
substantially all of the assets of such Guarantor) will be released and
relieved of any obligations under its Note Guarantee; provided
that the Net Proceeds of such sale or other disposition are applied in
accordance with the applicable provisions of this Indenture, including without
limitation Section 4.10 hereof. Upon delivery by the Company to the Trustee of
an Officers’ Certificate and an Opinion of Counsel to the effect that such sale
or other disposition was made by the Company in accordance with the provisions
of this Indenture, including without limitation Section 4.10 hereof, the
Trustee will execute any documents reasonably required in order to evidence the
release of any Guarantor from its obligations under its Note Guarantee.

 

(b)           Upon
designation of any Guarantor as an Unrestricted Subsidiary in accordance with
the terms of this Indenture, such Guarantor will be released and relieved of
any obligations under its Note Guarantee.

 

(c)           Upon Legal
Defeasance in accordance with Article 8 hereof or satisfaction and discharge of
this Indenture in accordance with Article 12 hereof, each Guarantor will be
released and relieved of any obligations under its Note Guarantee.

 

Any Guarantor not released from its obligations under
its Note Guarantee as provided in this Section 11.05 will remain liable for the
full amount of principal of and interest and premium and Additional Interest,
if any, on the Notes and for the other obligations of any Guarantor under this
Indenture as provided in this Article 11.

 

Section 11.06         Subordination of Note Guarantee.

 

The Obligations of each Guarantor under its Note
Guarantee pursuant to this Article 11 will be junior and subordinated to the
Senior Debt of such Guarantor on the same basis as the Notes are junior and
subordinated to Senior Debt of the Company. For the purposes of the foregoing
sentence, the Trustee and the Holders will have the right to receive and/or
retain payments by any of the Guarantors only at such times as they may receive
and/or retain payments in respect of the Notes pursuant to this Indenture,
including Article 10 hereof.

 

ARTICLE 12

SATISFACTION AND DISCHARGE

 

Section 12.01         Satisfaction and Discharge.

 

This Indenture will be discharged and will cease to be
of further effect as to all Notes, issued hereunder, when:

 

(1)           either:

 

(a)           all Notes that have been authenticated, except lost,
stolen or destroyed Notes that have been replaced or paid and all Notes for
whose payment money has theretofore been

 

89

 

deposited in trust and thereafter repaid to the Company, have
been delivered to the Trustee for cancellation; or

 

(b)           all Notes that have not been delivered to the Trustee
for cancellation have become due and payable by reason of the mailing of a
notice of redemption or otherwise or will become due and payable within one
year and the Company or any Guarantor has irrevocably deposited or caused to be
deposited with the Trustee as trust funds in trust solely for the benefit of
the Holders, cash in U.S. dollars, non-callable Government Securities, or a
combination thereof, in such amounts as will be sufficient, without
consideration of any reinvestment of interest, to pay and discharge the entire
Indebtedness on the Notes not delivered to the Trustee for cancellation for
principal, premium and Additional Interest, if any, and accrued interest to the
date of maturity or redemption;

 

(2)           no Default has occurred and is continuing on the date
of such deposit (other than a Default resulting from the borrowing of funds to
be applied to such deposit) and the deposit will not result in a breach or
violation of, or constitute a default under, any other instrument to which the
Company or any Guarantor is a party or by which the Company or any Guarantor is
bound;

 

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

 

(4)           the Company has delivered irrevocable instructions to
the Trustee under this Indenture to apply the deposited money toward the
payment of the Notes at maturity or on the redemption date, as the case may be.

 

In addition, the Company must deliver an Officers’
Certificate and an Opinion of Counsel to the Trustee stating that all
conditions precedent to satisfaction and discharge have been satisfied.

 

Notwithstanding the satisfaction and discharge of this
Indenture, if money has been deposited with the Trustee pursuant to subclause
(b) of clause (1) of this Section 12.01, the provisions of Sections 12.02 and
8.06 hereof will survive. In addition, nothing in this Section 12.01 will be
deemed to discharge those provisions of Section 7.07 hereof, that, by their
terms, survive the satisfaction and discharge of this Indenture.

 

Section 12.02         Application of Trust Money.

 

Subject to the provisions of Section 8.06 hereof, all
money deposited with the Trustee pursuant to Section 12.01 hereof shall be held
in trust and applied by it, in accordance with the provisions of the Notes and
this Indenture, to the payment, either directly or through any Paying Agent
(including the Company acting as its own Paying Agent) as the Trustee may
determine, to the Persons entitled thereto, of the principal (and premium and Additional
Interest, if any) and interest for whose payment such money has been deposited
with the Trustee; but such money need not be segregated from other funds except
to the extent required by law.

 

If the Trustee or Paying Agent is unable to apply any
money or Government Securities in accordance with Section 12.01 hereof by
reason of any legal proceeding or by reason of any order or judgment of any
court or governmental authority enjoining, restraining or otherwise prohibiting
such application, the Company’s and any Guarantor’s obligations under this
Indenture and the Notes shall be revived and reinstated as though no deposit
had occurred pursuant to Section 12.01 hereof; provided
that if the Company has made any payment of principal of, premium or Additional
Interest, if any, or interest on, any Notes because of the reinstatement of its
obligations, the Company shall be subrogated to the 

 

90

 

rights of the Holders of
such Notes to receive such payment from the money or Government Securities held
by the Trustee or Paying Agent.

 

ARTICLE 13

MISCELLANEOUS

 

Section 13.01         Trust Indenture Act Controls.

 

If any provision of this Indenture limits, qualifies
or conflicts with the duties imposed by TIA §318(c), the duties imposed by TIA
§318(c) control.

 

Section 13.02         Notices.

 

Any notice or communication by the Company, any
Guarantor or the Trustee to the others is duly given if in writing and
delivered in Person or by first class mail (registered or certified, return
receipt requested), facsimile transmission or overnight air courier
guaranteeing next day delivery, to the others’ address:

 

If to
the Company and/or any Guarantor:

Georgia Gulf Corporation

115 Perimeter Center Place

Suite 460

Atlanta, Georgia 30346

Facsimile No.:  (770) 395-4563

Attention:  General Counsel

 

With a
copy to:

Jones Day

1420 Peachtree Street

N.E. Suite 800

Atlanta, Georgia 30309-3053

Facsimile No.:  (404) 581-8330

Attention:  John E. Zamer, Esq.

 

If to
the Trustee:

LaSalle Bank National Association

135 S. LaSalle Street, Suite 1560

Chicago, Illinois 60603

Facsimile No.:  (312) 904-2236

Attention:  Corporate Trust Services
Division

 

The Company, any Guarantor or the Trustee, by notice
to the others, may designate additional or different addresses for subsequent
notices or communications.

 

All notices and communications (other than those sent
to Holders) will be deemed to have been duly given: at the time delivered by
hand, if personally delivered; five Business Days after being deposited in the
mail, postage prepaid, if mailed; when receipt acknowledged, if transmitted by
facsimile; and the next Business Day after timely delivery to the courier, if
sent by overnight air courier guaranteeing next day delivery.

 

91

 

Any notice or communication to a Holder will be mailed
by first class mail, certified or registered, return receipt requested, or by
overnight air courier guaranteeing next day delivery to its address shown on
the register kept by the Registrar. Any notice or communication will also be so
mailed to any Person described in TIA § 313(c), to the extent required by
the TIA. Failure to mail a notice or communication to a Holder or any defect in
it will not affect its sufficiency with respect to other Holders.

 

If a notice or communication is mailed in the manner
provided above within the time prescribed, it is duly given, whether or not the
addressee receives it.

 

If the Company mails a notice or communication to
Holders, it will mail a copy to the Trustee and each Agent at the same time.

 

Section 13.03         Communication by Holders of Notes with Other Holders
of Notes.

 

Holders may communicate pursuant to TIA § 312(b)
with other Holders with respect to their rights under this Indenture or the
Notes. The Company, the Trustee, the Registrar and anyone else shall have the
protection of TIA § 312(c).

 

Section 13.04         Certificate and Opinion as to Conditions Precedent.

 

Upon any request or application by the Company to the
Trustee to take any action under this Indenture, the Company shall furnish to
the Trustee:

 

(1)           an Officers’ Certificate in form and substance
reasonably satisfactory to the Trustee (which must include the statements set
forth in Section 13.05 hereof) stating that, in the opinion of the signers, all
conditions precedent and covenants, if any, provided for in this Indenture
relating to the proposed action have been satisfied; and

 

(2)           an Opinion of Counsel in form and substance reasonably
satisfactory to the Trustee (which must include the statements set forth in
Section 13.05 hereof) stating that, in the opinion of such counsel, all such
conditions precedent and covenants have been satisfied.

 

Section 13.05         Statements Required in Certificate or Opinion.

 

Each certificate or opinion with respect to compliance
with a condition or covenant provided for in this Indenture (other than a
certificate provided pursuant to TIA § 314(a)(4)) must comply with the
provisions of TIA § 314(e) and must include:

 

(1)           a statement that the Person making such certificate or
opinion has read such covenant or condition;

 

(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 Person, he or
she has 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 satisfied; and

 

(4)           a statement as to whether or not, in the opinion of
such Person, such condition or covenant has been satisfied.

 

92

 

In giving an Opinion of
Counsel, counsel may rely as to factual matters on an Officer’s Certificate.

 

Section 13.06         Rules by Trustee and Agents.

 

The Trustee may make reasonable rules for action by or
at a meeting of Holders. The Registrar or Paying Agent may make reasonable
rules and set reasonable requirements for its functions.

 

Section 13.07         No Personal Liability of Directors, Officers,
Employees and Stockholders.

 

No past, present or future director, officer,
employee, incorporator or stockholder of the Company or any Guarantor, as such,
will have any liability for any obligations of the Company or the Guarantors under
the Notes, this Indenture, the Note Guarantees or for any claim based on, in
respect of, or by reason of, such obligations or their creation. Each Holder of
Notes by accepting a Note waives and releases all such liability. The waiver
and release are part of the consideration for issuance of the Notes. The waiver
may not be effective to waive liabilities under the federal securities laws.

 

Section 13.08         Governing Law.

 

THE INTERNAL LAW OF THE STATE OF NEW YORK WILL GOVERN
AND BE USED TO CONSTRUE THIS INDENTURE, THE NOTES AND THE NOTE GUARANTEES
WITHOUT GIVING EFFECT TO APPLICABLE PRINCIPLES OF CONFLICTS OF LAW TO THE
EXTENT THAT THE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION WOULD BE
REQUIRED THEREBY.

 

Section 13.09         No Adverse Interpretation of Other Agreements.

 

This Indenture may not be used to interpret any other
indenture, loan or debt agreement of the Company or its Subsidiaries or of any
other Person. Any such indenture, loan or debt agreement may not be used to
interpret this Indenture.

 

Section 13.10         Successors.

 

All agreements of the Company in this Indenture and
the Notes will bind its successors. All agreements of the Trustee in this
Indenture will bind its successors. All agreements of each Guarantor in this
Indenture will bind its successors, except as otherwise provided in Section 11.05
hereof.

 

Section 13.11         Severability.

 

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

 

Section 13.12         Counterpart Originals.

 

The parties may sign any number of copies of this
Indenture. Each signed copy will be an original, but all of them together
represent the same agreement.

 

93

 

Section 13.13         Table of Contents, Headings, etc.

 

The Table of Contents, Cross-Reference Table and
Headings of the Articles and Sections of this Indenture have been inserted for
convenience of reference only, are not to be considered a part of this
Indenture and will in no way modify or restrict any of the terms or provisions
hereof.

 

[Signatures
on following page]

 

94

 

SIGNATURES

 

IN WITNESS WHEREOF, the parties have caused this
Indenture to be duly executed as of the day and year first written above.

 

	
   

  	
  GEORGIA GULF CORPORATION

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Joel I. Beerman

  	
   

  
	
   

  	
   

  	
  Name: Joel I. Beerman

  	
   

  
	
   

  	
   

  	
  Title: Vice
  President, General Counsel and Secretary

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  GEORGIA GULF CHEMICALS &

  	
   

  
	
   

  	
  VINYLS, LLC

  	
   

  
	
   

  	
  GEORGIA GULF LAKE CHARLES, LLC

  	
   

  
	
   

  	
  GREAT RIVER OIL & GAS CORPORATION

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Joel I. Beerman

  	
   

  
	
   

  	
   

  	
  Name: Joel I. Beerman

  	
   

  
	
   

  	
   

  	
  Title: Vice President and Secretary

  	
   

  

 

 

	
   

  	
  LASALLE BANK
  NATIONAL ASSOCIATION, 

  	
   

  
	
   

  	
  as Trustee

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Margaret M. Muir

  	
   

  
	
   

  	
   

  	
  Name: 
  Margaret M. Muir

  	
   

  
	
   

  	
   

  	
  Title: 
  First Vice President

  	
   

  

 

 

[Face of Note]

 

CUSIP/CINS              

 

10.75% Senior
Subordinated Notes due 2016

 

	
  No.

  	
   

  	
   

  	
  $

  	
   

  

 

GEORGIA
GULF CORPORATION

 

promises to pay to                or registered
assigns,

 

the principal sum of                                                                                                                         
DOLLARS on OCTOBER 15, 2016.

 

Interest Payment Dates:  APRIL 15 AND OCTOBER 15

 

Record Dates:  APRIL
1 AND OCTOBER 1

 

Dated:                     ,
200   

 

	
   

  	
  GEORGIA GULF CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
  This is one of the Notes referred to

  	
   

  	
   

  
	
  in the within-mentioned Indenture:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  LASALLE BANK NATIONAL ASSOCIATION,

  	
   

  	
   

  
	
   as Trustee

  	
   

  	
   

  
	
   

  
	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Authorized Signatory

  	
   

  
					

 

A-1

 

[Back
of Note]

10.75%
Senior Subordinated Notes due 2016

 

[Insert the Global Note Legend,
if applicable pursuant to the provisions of the Indenture]

 

[Insert the Private Placement
Legend, if applicable pursuant to the provisions of the Indenture]

 

Capitalized terms used herein have the meanings
assigned to them in the Indenture referred to below unless otherwise indicated.

 

(1)           INTEREST.
Georgia Gulf Corporation, a Delaware corporation (the “Company”), promises to pay interest on the
principal amount of this Note at 10.75% per annum from                 ,
20   until maturity and shall pay the Additional Interest, if any,
payable pursuant to Section 2.5 of the Registration Rights Agreement referred
to below. The Company will pay interest and Additional Interest, if any,
semi-annually in arrears on April 15 and October 15 of each year, or if any
such day is not a Business Day, on the next succeeding Business Day (each, an “Interest Payment Date”). Interest on the
Notes will accrue from the most recent date to which interest has been paid or,
if no interest has been paid, from the date of issuance; provided
that if there is no existing Default in the payment of interest, and if this
Note is authenticated between a record date referred to on the face hereof and
the next succeeding Interest Payment Date, interest shall accrue from such next
succeeding Interest Payment Date; provided further
that the first Interest Payment Date shall be              ,
20  . The Company will pay interest (including post-petition interest
in any proceeding under any Bankruptcy Law) on overdue principal and premium,
if any, from time to time on demand at a rate that is 1% per annum in excess of
the rate then in effect to the extent lawful; it will pay interest (including
post-petition interest in any proceeding under any Bankruptcy Law) on overdue
installments of interest and Additional Interest, if any, (without regard to
any applicable grace periods) from time to time on demand at the same rate to
the extent lawful. Interest will be computed on the basis of a 360-day year of
twelve 30-day months.

 

(2)           METHOD OF
PAYMENT. The Company will pay interest on the Notes (except
defaulted interest) and Additional Interest, if any, to the Persons who are
registered Holders of Notes at the close of business on the April 1 or October
1 next preceding the Interest Payment Date, even if such Notes are canceled
after such record date and on or before such Interest Payment Date, except as
provided in Section 2.12 of the Indenture with respect to defaulted interest. The
Notes will be payable as to principal, premium and Additional Interest, if any,
and interest at the office or agency of the Company maintained for such purpose
within or without the City and State of New York, or, at the option of the
Company, payment of interest and Additional Interest, if any, may be made by
check mailed to the Holders at their addresses set forth in the register of
Holders; provided that payment by wire transfer
of immediately available funds will be required with respect to principal of
and interest, premium and Additional Interest, if any, on, all Global Notes and
all other Notes the Holders of which will have provided wire transfer
instructions to the Company or the Paying Agent. Such payment will be in such
coin or currency of the United States of America as at the time of payment is
legal tender for payment of public and private debts.

 

(3)           PAYING AGENT
AND REGISTRAR. Initially, LaSalle Bank National Association, the
Trustee under the Indenture, will act as Paying Agent and Registrar. The
Company may change any Paying Agent or Registrar without notice to any Holder. The
Company or any of its Subsidiaries may act in any such capacity.

 

A-2

 

(4)           INDENTURE.
The Company issued the Notes under an Indenture dated as of October 3, 2006
(the “Indenture”) among the
Company, the Guarantors and the Trustee. The terms of the Notes include those
stated in the Indenture and those made part of the Indenture by reference to
the TIA. The Notes are subject to all such terms, and Holders are referred to
the Indenture and such Act for a statement of such terms. To the extent any
provision of this Note conflicts with the express provisions of the Indenture,
the provisions of the Indenture shall govern and be controlling. The Notes are unsecured
obligations of the Company. The Indenture does not limit the aggregate
principal amount of Notes that may be issued thereunder.

 

(5)           OPTIONAL
REDEMPTION.

 

(a)           Except
as set forth in subparagraph (b) and (c) of this Paragraph 5, the Company will
not have the option to redeem the Notes prior to October 15, 2011. On or after
October 15, 2011, the Company will have the option to redeem all or a part of
the Notes upon not less than 30 nor more than 60 days’ notice, at the
redemption prices (expressed as percentages of principal amount) set forth
below plus accrued and unpaid interest and Additional Interest, if any, on the
Notes redeemed to the applicable redemption date, if redeemed during the twelve-month
period beginning on October 15 of the years indicated below, subject to the
rights of Holders on the relevant record date to receive interest on the
relevant interest payment date:

 

	
  Year

  	
   

  	
  Percentage

  	
   

  
	
  2011

  	
   

  	
  105.375

  	
  %

  
	
  2012

  	
   

  	
  103.583

  	
  %

  
	
  2013

  	
   

  	
  101.792

  	
  %

  
	
  2014 and thereafter

  	
   

  	
  100.000

  	
  %

  

 

Unless the Company defaults in the payment of the
redemption price, interest will cease to accrue on the Notes or portions
thereof called for redemption on the applicable redemption date.

 

(b)           Notwithstanding
the provisions of subparagraph (a) of this Paragraph 5, at any time prior to
October 15,  2009, the Company may on any
one or more occasions redeem up to 35% of the aggregate principal amount of
Notes issued under the Indenture with the net cash proceeds of one or more Equity
Offerings at a redemption price equal to 110.75% of the aggregate principal
amount thereof, plus accrued and unpaid interest and Additional Interest, if
any to the redemption date; provided that
at least 65% in aggregate principal amount of the Notes originally issued under
the Indenture (excluding Notes held by the Company and its Subsidiaries)
remains outstanding immediately after the occurrence of such redemption and
that such redemption occurs within 60 days of the date of the closing of such
Equity Offering.

 

(c)           At any
time prior to October 15, 2011, the Company may also redeem all or a part of
the Notes, upon not less than 30 nor more than 60 days’ prior notice, at a
redemption price equal to 100% of the principal amount of the Notes redeemed
plus the Applicable Premium as of, and accrued and unpaid interest and
Additional Interest, if any, to the date of redemption, subject to the rights
of Holders of Notes on the relevant record date to receive interest due on the
relevant interest payment date.

 

(6)           MANDATORY
REDEMPTION.

 

The Company is not be required to make mandatory
redemption or sinking fund payments with respect to the Notes.

 

A-3

 

(7)           REPURCHASE AT THE OPTION OF HOLDER.

 

(a)           If there is a Change of
Control, the Company will be required to make an offer (a “Change of Control Offer”) to each Holder
to repurchase all or any part (equal to $2,000 or integral multiples of $1,000
in excess thereof) of each Holder’s Notes at a purchase price in cash equal to
101% of the aggregate principal amount thereof plus accrued and unpaid interest
and Additional Interest, if any, thereon to the date of purchase, subject to
the rights of Holders on the relevant record date to receive interest due on
the relevant interest payment date (the “Change
of Control Payment”). Within 10 days following any Change of
Control, the Company will mail a notice to each Holder setting forth the
procedures governing the Change of Control Offer as required by the Indenture.

 

(b)           If the Company or a Restricted
Subsidiary consummates any Asset Sales, within five days of each date on which
the aggregate amount of Excess Proceeds exceeds $50.0 million, the Company will
commence an offer to all Holders of Notes and all holders of other Indebtedness
that is pari passu with the Notes containing
provisions similar to those set forth in the Indenture with respect to offers
to purchase or redeem with the proceeds of sales of assets (an “Asset Sale Offer”) pursuant to Section
3.09 of the Indenture to purchase the maximum principal amount of Notes (including
any Additional Notes) and such other pari passu
Indebtedness that may be purchased out of the Excess Proceeds at an offer price
in cash in an amount equal to 100% of the principal amount thereof plus accrued
and unpaid interest and Additional Interest, if any, thereon to the date of
purchase, in accordance with the procedures set forth in the Indenture. If any
Excess Proceeds remain after consummation of an Asset Sale Offer, the Company
may use those Excess Proceeds for any purpose not otherwise prohibited by the
Indenture. If the aggregate principal amount of Notes and other pari passu Indebtedness tendered into such Asset Sale Offer
exceeds the amount of Excess Proceeds, the Trustee shall select the Notes and
such other pari passu Indebtedness to be purchased
on a pro rata basis. Holders of
Notes that are the subject of an offer to purchase will receive an Asset Sale
Offer from the Company prior to any related purchase date and may elect to have
such Notes purchased by completing the form entitled “Option of Holder to Elect Purchase”
attached to the Notes.

 

(8)           NOTICE OF
REDEMPTION. Notice of redemption will be mailed at least 30 days but
not more than 60 days before the redemption date to each Holder whose Notes are
to be redeemed at its registered address, except that redemption notices may be
mailed more than 60 days prior to a redemption date if the notice is issued in
connection with a defeasance of the Notes or a satisfaction or discharge of the
Indenture. Notes in denominations larger than $2,000 may be redeemed in part
but only in whole multiples of $1,000, unless all of the Notes held by a Holder
are to be redeemed.

 

(9)           DENOMINATIONS,
TRANSFER, EXCHANGE. The Notes are in registered form without coupons
in denominations of $2,000 and integral multiples of $1,000 in excess thereof. The
transfer of Notes may be registered and Notes may be exchanged as provided in
the Indenture. The Registrar and the Trustee may require a Holder, among other
things, to furnish appropriate endorsements and transfer documents and the
Company may require a Holder to pay any taxes and fees required by law or
permitted by the Indenture. The Company need not exchange or register the
transfer of any Note or portion of a Note selected for redemption in whole or
in part, except for the unredeemed portion of any Note being redeemed in part. Also,
the Company need not exchange or register the transfer of any Notes for a
period of 15 days before a selection of Notes to be redeemed or during the
period between a record date and the corresponding Interest Payment Date.

 

A-4

 

(10)         PERSONS
DEEMED OWNERS. The registered Holder of a Note may be treated as its
owner for all purposes.

 

(11)         AMENDMENT,
SUPPLEMENT AND WAIVER. Subject to certain exceptions, the Indenture
or the Notes or the Note Guarantees may be amended or supplemented with the
consent of the Holders of at least a majority in aggregate principal amount of
the then outstanding Notes including Additional Notes, if any, voting as a
single class, and any existing Default or compliance with any provision of the
Indenture or the Notes or the Note Guarantees may be waived with the consent of
the Holders of a majority in aggregate principal amount of the then outstanding
Notes including Additional Notes, if any, voting as a single class. Without the
consent of any Holder of a Note, the Indenture or the Notes or the Note
Guarantees may be amended or supplemented to cure any ambiguity, defect or
inconsistency, to provide for uncertificated Notes in addition to or in place
of certificated Notes, to provide for the assumption of the Company’s or a
Guarantor’s obligations to Holders of the Notes and Note Guarantees in case of
a merger or consolidation, to make any change that would provide any additional
rights or benefits to the Holders of the Notes or that does not adversely
affect the legal rights under the Indenture of any such Holder, to comply with
the requirements of the SEC in order to effect or maintain the qualification of
the Indenture under the TIA, to conform the text of the Indenture or the Notes
to any provision of the “Description of Notes” section of the Company’s Offering
Memorandum dated September 28, 2006, relating to the initial offering of the
Notes, to the extent that such provision in that “Description of Notes” was
intended to be a verbatim recitation of a provision of the Indenture, the Note
Guarantees or the Notes; to provide for the issuance of Additional Notes in accordance
with the limitations set forth in the Indenture, to allow any Guarantor to
execute a supplemental indenture to the Indenture and/or a Note Guarantee with
respect to the Notes, to secure the Notes or any Note Guarantee, or to add to
the covenants of the Company for the benefit of the Holders of Notes or
surrender any right or power conferred upon the Company.

 

(12)         DEFAULTS AND
REMEDIES. Events of Default include: 
(i) default for 30 days in the payment when due of interest on, or Additional
Interest, if any, with respect to the Notes, whether or not prohibited by
Article 10 of the Indenture; (ii) default in the payment when due of the
principal of, or premium, if any, on, the Notes when the same becomes due and
payable at maturity, upon redemption (including in connection with an offer to
purchase) or otherwise, whether or not prohibited by Article 10 of the
Indenture, (iii) failure by the Company or any of its Restricted Subsidiaries
to comply with Section 4.10, 4.15 or 5.01 of the Indenture; (iv) failure by the
Company or any of its Restricted Subsidiaries for 60 days after notice to the
Company by the Trustee or the Holders of at least 25% in aggregate principal
amount of the Notes including Additional Notes, if any, then outstanding voting
as a single class to comply with any of the other agreements in the Indenture
or the Notes; (v) default under certain other agreements relating to
Indebtedness of the Company which default results in the acceleration of such
Indebtedness prior to its express maturity; (vi) certain final judgments (net
of any amounts paid by an insurance carrier) for the payment of money that
remain undischarged for a period of 60 days; (vii) certain events of bankruptcy
or insolvency with respect to the Company or any of its Restricted Subsidiaries
that is a Significant Subsidiary or any group of Restricted Subsidiaries that,
taken together, would constitute a Significant Subsidiary; and (viii) except as
permitted by the Indenture, any Note Guarantee is held in any judicial proceeding
to be unenforceable or invalid or ceases for any reason to be in full force and
effect or any Guarantor or any Person acting on its behalf denies or disaffirms
its obligations under such Guarantor’s Note Guarantee. If any Event of Default
occurs and is continuing, the Trustee or the Holders of at least 25% in
aggregate principal amount of the then outstanding Notes may declare all the
Notes to be due and payable immediately. Notwithstanding the foregoing, in the
case of an Event of Default arising from

 

A-5

 

certain events of bankruptcy or insolvency, all outstanding
Notes will become due and payable immediately without further action or notice.
Holders may not enforce the Indenture or the Notes except as provided in the
Indenture. Subject to certain limitations, Holders of a majority in aggregate
principal amount of the then outstanding Notes may direct the Trustee in its
exercise of any trust or power. The Trustee may withhold from Holders of the
Notes notice of any continuing Default or Event of Default (except a Default or
Event of Default relating to the payment of principal or interest or premium or
Additional Interest, if any,) if it determines that withholding notice is in
their interest. The Holders of a majority in aggregate principal amount of the
then outstanding Notes by notice to the Trustee may, on behalf of the Holders
of all of the Notes, rescind an acceleration or waive any existing Default or
Event of Default and its consequences under the Indenture except a continuing
Default or Event of Default in the payment of interest or premium or Additional
Interest, if any, on, or the principal of, the Notes. The Company is required
to deliver to the Trustee annually a statement regarding compliance with the
Indenture, and the Company is required, upon becoming aware of any Default or
Event of Default, to deliver to the Trustee a statement specifying such Default
or Event of Default.

 

(13)         SUBORDINATION.
Payment of principal, interest and premium and Additional Interest, if any, on
the Notes is subordinated to the prior payment of Senior Debt on the terms
provided in the Indenture.

 

(14)         TRUSTEE DEALINGS WITH COMPANY. The Trustee, in its
individual or any other capacity, may make loans to, accept deposits from, and
perform services for the Company or its Affiliates, and may otherwise deal with
the Company or its Affiliates, as if it were not the Trustee.

 

(15)         NO RECOURSE AGAINST OTHERS. A director, officer, employee,
incorporator or stockholder of the Company or any of the Guarantors, as such,
will not have any liability for any obligations of the Company or the
Guarantors under the Notes, the Note Guarantees or the Indenture or for any
claim based on, in respect of, or by reason of, such obligations or their
creation. Each Holder by accepting a Note waives and releases all such
liability. The waiver and release are part of the consideration for the
issuance of the Notes. Such waiver may not be effective to waive liabilities
under the federal securities laws and it is the view of the SEC that such a
waiver is against public policy.

 

(16)         AUTHENTICATION. This Note will not be valid until
authenticated by the manual signature of the Trustee or an authenticating
agent.

 

(17)         ABBREVIATIONS. Customary abbreviations may be used in the
name of a Holder or an assignee, such as: 
TEN COM (= tenants in common), TEN ENT (= tenants by the entireties), JT
TEN (= joint tenants with right of survivorship and not as tenants in common),
CUST (= Custodian), and U/G/M/A (= Uniform Gifts to Minors Act).

 

(18)         ADDITIONAL RIGHTS OF HOLDERS OF RESTRICTED GLOBAL NOTES AND RESTRICTED
DEFINITIVE NOTES. In addition to the rights provided to Holders of
Notes under the Indenture, Holders of Restricted Global Notes and Restricted
Definitive Notes will have all the rights set forth in the Registration Rights
Agreement dated as of October 3, 2006, among the Company, the Guarantors and
the other parties named on the signature pages thereof or, in the case of
Additional Notes, Holders of Restricted Global Notes and Restricted Definitive
Notes will have the rights set forth in one or more registration rights
agreements, if any, among the Company, the Guarantors and the other parties
thereto, relating to rights given by the Company 

 

A-6

 

and the Guarantors to the purchasers of any Additional Notes
(collectively, the “Registration Rights
Agreement”).

 

(19)         CUSIP NUMBERS. Pursuant to a recommendation promulgated by
the Committee on Uniform Security Identification Procedures, the Company has
caused CUSIP numbers to be printed on the Notes, and the Trustee may use CUSIP
numbers in notices of redemption as a convenience to Holders. No representation
is made as to the accuracy of such numbers either as printed on the Notes or as
contained in any notice of redemption, and reliance may be placed only on the
other identification numbers placed thereon.

 

(20)         GOVERNING
LAW. THE INTERNAL LAW OF THE STATE OF NEW YORK WILL GOVERN AND BE
USED TO CONSTRUE THE INDENTURE, THIS NOTE AND THE NOTE GUARANTEES WITHOUT
GIVING EFFECT TO APPLICABLE PRINCIPLES OF CONFLICTS OF LAW TO THE EXTENT THAT
THE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION WOULD BE REQUIRED THEREBY.

 

The Company will furnish to any Holder upon written
request and without charge a copy of the Indenture and/or the Registration
Rights Agreement. Requests may be made to:

 

Georgia Gulf
Corporation

115 Perimeter Center Place

Suite 460

Atlanta, Georgia 30346

Attention:  General Counsel

 

A-7

 

ASSIGNMENT
FORM

 

To assign this Note, fill in the form below:

 

	
  (I) or (we) assign and
  transfer this Note to:

  	
   

  
	
   

  	
  (Insert assignee’s
  legal name)

  
	
   

  
	
   

  
	
  (Insert assignee’s soc.
  sec. or tax I.D. no.)

  
	
   

  
	
   

  
	
   

  
	
  (Print or type
  assignee’s name, address and zip code)

  

 

 

and irrevocably appoint                                                                                                                                                                                 

to transfer this Note on the books of the Company. The agent may substitute
another to act for him.

 

	
  Date:

  	
   

  	
   

  
	
   

  
	
  Your Signature:  

  	
   

  
	
   

  	
  (Sign exactly as
  your name appears on the face of this Note)

  
	
   

  
	
  Signature
  Guarantee*:

  	
   

  	
   

  
							

 

*              Participant in a
recognized Signature Guarantee Medallion Program (or other signature guarantor
acceptable to the Trustee).

 

A-8

 

Option of Holder
to Elect Purchase

 

If you want to elect to have this Note purchased by
the Company pursuant to Section 4.10 or 4.15 of the Indenture, check the
appropriate box below:

 

	
  oSection
  4.10

  	
   

  	
  oSection
  4.15

  

 

If you want to elect to have only part of the Note
purchased by the Company pursuant to Section 4.10 or Section 4.15 of the
Indenture, state the amount you elect to have purchased:

 

$                

 

	
  Date:

  	
   

  	
   

  
	
   

  
	
  Your Signature:  

  	
   

  
	
   

  	
  (Sign exactly as
  your name appears on the face of this Note)

  
	
   

  
	
  Tax
  Identification No.:  

  	
   

  
	
   

  	
   

  
	
  Signature
  Guarantee*:

  	
   

  	
   

  
								

 

*              Participant in a
recognized Signature Guarantee Medallion Program (or other signature guarantor
acceptable to the Trustee).

 

A-9

 

SCHEDULE
OF EXCHANGES OF INTERESTS IN THE GLOBAL NOTE *

 

The following exchanges of a part of this Global Note
for an interest in another Global Note or for a Definitive Note, or exchanges
of a part of another Global Note or Definitive Note for an interest in this
Global Note, have been made:

 

	
  Date of Exchange

  	
   

  	
  Amount of decrease in Principal Amount 

  of 

  this Global Note

  	
   

  	
  Amount of increase in Principal Amount 

  of 

  this Global Note

  	
   

  	
  Principal Amount 

  of this Global Note following such decrease 

  (or increase)

  	
   

  	
  Signature of authorized officer of Trustee or Custodian

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

*                 This schedule should be included only if the Note is issued in global
form.

 

A-10

 

EXHIBIT B

 

FORM
OF CERTIFICATE OF TRANSFER

 

Georgia Gulf
Corporation

115 Perimeter Center Place

Suite 460

Atlanta, Georgia 30346

 

LaSalle Bank National Association

135 S. LaSalle Street, Suite 1560

Chicago, Illinois 60603

Re:  10.75%
Senior Subordinated Notes due 2016

 

Reference is hereby made to the Indenture, dated as of
October 3, 2006 (the “Indenture”),
among Georgia Gulf Corporation, as issuer (the “Company”),
the Guarantors party thereto and LaSalle Bank National Association, as trustee.
Capitalized terms used but not defined herein shall have the meanings given to
them in the Indenture.

 

                                ,
(the “Transferor”) owns and proposes to transfer
the Note[s] or interest in such Note[s] specified in Annex A hereto, in the
principal amount of $              
in such Note[s] or interests (the “Transfer”), to                                  
(the “Transferee”), as further specified in
Annex A hereto. In connection with the Transfer, the Transferor hereby
certifies that:

 

[CHECK
ALL THAT APPLY]

 

1. o   Check if Transferee will
take delivery of a beneficial interest in the 144A Global Note or a Restricted
Definitive Note pursuant to Rule 144A. The Transfer is being
effected pursuant to and in accordance with Rule 144A under the Securities Act
of 1933, as amended (the “Securities Act”),
and, accordingly, the Transferor hereby further certifies that the beneficial
interest or Definitive Note is being transferred to a Person that the
Transferor reasonably believes is purchasing the beneficial interest or
Definitive Note for its own account, or for one or more accounts with respect
to which such Person exercises sole investment discretion, and such Person and
each such account is a “qualified institutional buyer” within the meaning of
Rule 144A in a transaction meeting the requirements of Rule 144A, and such
Transfer is in compliance with any applicable blue sky securities laws of any
state of the United States. Upon consummation of the proposed Transfer in
accordance with the terms of the Indenture, the transferred beneficial interest
or Definitive Note will be subject to the restrictions on transfer enumerated
in the Private Placement Legend printed on the 144A Global Note and/or the
Restricted Definitive Note and in the Indenture and the Securities Act.

 

2. o   Check if Transferee will
take delivery of a beneficial interest in the Regulation S Global Note or a
Restricted Definitive Note pursuant to Regulation S. The
Transfer is being effected pursuant to and in accordance with Rule 903 or Rule
904 under the Securities Act and, accordingly, the Transferor hereby further
certifies that (i) the Transfer is not being made to a Person in the United
States and (x) at the time the buy order was originated, the Transferee was
outside the United States or such Transferor and any Person acting on its
behalf reasonably believed and believes that the Transferee was outside the
United States or (y) the transaction was executed in, on or through the
facilities of a designated offshore securities market and neither such
Transferor nor any Person acting on its behalf knows that the transaction was
prearranged with a buyer in the United States, (ii) no directed selling efforts
have been made in contravention of the requirements of Rule 903(b) or Rule
904(b) of Regulation S under the Securities Act, (iii) the transaction is not
part of a plan or scheme to evade the registration requirements of the
Securities Act and (iv) if the proposed transfer is being made prior to the
expiration of 

 

B-1

 

the Restricted Period,
the transfer is not being made to a U.S. Person or for the account or benefit
of a U.S. Person (other than an Initial Purchaser). Upon consummation of the
proposed transfer in accordance with the terms of the Indenture, the
transferred beneficial interest or Definitive Note will be subject to the
restrictions on Transfer enumerated in the Private Placement Legend printed on
the Regulation S Global Note and/or the Restricted Definitive Note and in the
Indenture and the Securities Act.

 

3. o   Check and complete if
Transferee will take delivery of a beneficial interest in the IAI Global Note
or a Restricted Definitive Note pursuant to any provision of the Securities Act
other than Rule 144A or Regulation S. The Transfer is being
effected in compliance with the transfer restrictions applicable to beneficial
interests in Restricted Global Notes and Restricted Definitive Notes and
pursuant to and in accordance with the Securities Act and any applicable blue
sky securities laws of any state of the United States, and accordingly the
Transferor hereby further certifies that (check one):

 

(a)           o   such Transfer is being effected pursuant to
and in accordance with Rule 144 under the Securities Act;

 

or

 

(b)           o   such Transfer is being effected to the
Company or a subsidiary thereof;

 

or

 

(c)           o   such Transfer is being effected pursuant to
an effective registration statement under the Securities Act and in compliance
with the prospectus delivery requirements of the Securities Act;

 

or

 

(d)           o   such Transfer is being effected to an
Institutional Accredited Investor and pursuant to an exemption from the
registration requirements of the Securities Act other than Rule 144A, Rule 144,
Rule 903 or Rule 904, and the Transferor hereby further certifies that it has
not engaged in any general solicitation within the meaning of Regulation D
under the Securities Act and the Transfer complies with the transfer
restrictions applicable to beneficial interests in a Restricted Global Note or
Restricted Definitive Notes and the requirements of the exemption claimed,
which certification is supported by (1) a certificate executed by the
Transferee in the form of Exhibit D to the Indenture and (2) if such Transfer
is in respect of a principal amount of Notes at the time of transfer of less
than $250,000, an Opinion of Counsel provided by the Transferor or the
Transferee (a copy of which the Transferor has attached to this certification),
to the effect that such Transfer is in compliance with the Securities Act. Upon
consummation of the proposed transfer in accordance with the terms of the
Indenture, the transferred beneficial interest or Definitive Note will be
subject to the restrictions on transfer enumerated in the Private Placement
Legend printed on the IAI Global Note and/or the Restricted Definitive Notes
and in the Indenture and the Securities Act.

 

4. o   Check if Transferee will
take delivery of a beneficial interest in an Unrestricted Global Note or of an
Unrestricted Definitive Note.

 

(a)  o   Check if Transfer is
pursuant to Rule 144. (i) The Transfer is being effected pursuant to
and in accordance with Rule 144 under the Securities Act and in compliance with
the transfer restrictions contained in the Indenture and any applicable blue
sky securities laws of any state of the United States and (ii) the restrictions
on transfer contained in the Indenture and the Private Placement 

 

B-2

 

Legend are not required
in order to maintain compliance with the Securities Act. Upon consummation of
the proposed Transfer in accordance with the terms of the Indenture, the
transferred beneficial interest or Definitive Note will no longer be subject to
the restrictions on transfer enumerated in the Private Placement Legend printed
on the Restricted Global Notes, on Restricted Definitive Notes and in the
Indenture.

 

(b)  o   Check if Transfer is
Pursuant to Regulation S. (i) The Transfer is being effected
pursuant to and in accordance with Rule 903 or Rule 904 under the Securities
Act and in compliance with the transfer restrictions contained in the Indenture
and any applicable blue sky securities laws of any state of the United States
and (ii) the restrictions on transfer contained in the Indenture and the
Private Placement Legend are not required in order to maintain compliance with
the Securities Act. Upon consummation of the proposed Transfer in accordance
with the terms of the Indenture, the transferred beneficial interest or
Definitive Note will no longer be subject to the restrictions on transfer
enumerated in the Private Placement Legend printed on the Restricted Global
Notes, on Restricted Definitive Notes and in the Indenture.

 

(c)  o  Check if Transfer is
Pursuant to Other Exemption. (i) The Transfer is being effected
pursuant to and in compliance with an exemption from the registration
requirements of the Securities Act other than Rule 144, Rule 903 or Rule 904
and in compliance with the transfer restrictions contained in the Indenture and
any applicable blue sky securities laws of any State of the United States and
(ii) the restrictions on transfer contained in the Indenture and the Private
Placement Legend are not required in order to maintain compliance with the
Securities Act. Upon consummation of the proposed Transfer in accordance with
the terms of the Indenture, the transferred beneficial interest or Definitive
Note will not be subject to the restrictions on transfer enumerated in the
Private Placement Legend printed on the Restricted Global Notes or Restricted
Definitive Notes and in the Indenture.

 

This certificate and the statements contained herein
are made for your benefit and the benefit of the Company.

 

	
   

  	
   

  
	
   

  	
  [Insert Name of Transferor]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
  Dated:

  	
   

  	
   

  	
   

  
					

 

B-3

 

ANNEX
A TO CERTIFICATE OF TRANSFER

 

1.             The
Transferor owns and proposes to transfer the following:

 

[CHECK
ONE OF (a) OR (b)]

 

(a) o   a beneficial interest in the:

 

(i)          o   144A Global Note (CUSIP             ),
or

 

(ii)         o   Regulation S Global Note (CUSIP             ),
or

 

(iii)        o    IAI Global Note (CUSIP             );
or

 

(b)  o    a Restricted Definitive Note.

 

2.             After
the Transfer the Transferee will hold:

 

[CHECK
ONE]

 

(a)  o   a beneficial interest in the:

 

(i)          o   144A Global Note (CUSIP             ),
or

 

(ii)         o   Regulation S Global Note (CUSIP             ),
or

 

(iii)        o   IAI Global Note (CUSIP             );
or

 

(iv)        o   Unrestricted Global Note (CUSIP             );
or

 

(b)  o   a Restricted Definitive Note; or

 

(c)  o   an Unrestricted Definitive Note,

 

in accordance with the
terms of the Indenture.

 

B-4

 

EXHIBIT C

 

FORM
OF CERTIFICATE OF EXCHANGE

 

Georgia Gulf
Corporation

115 Perimeter Center Place

Suite 460

Atlanta, Georgia 30346

 

LaSalle Bank National Association

135 S. LaSalle Street, Suite 1560

Chicago, Illinois 60603

 

Re:  10.75% Senior
Subordinated Notes due 2016

 

Reference is hereby made to the Indenture, dated as of
October 3, 2006 (the “Indenture”),
among Georgia Gulf Corporation, as issuer (the “Company”),
the Guarantors party thereto and LaSalle Bank National Association, as trustee.
Capitalized terms used but not defined herein shall have the meanings given to
them in the Indenture.

 

                              ,
(the “Owner”) owns and proposes to exchange
the Note[s] or interest in such Note[s] specified herein, in the principal
amount of $            
in such Note[s] or interests (the “Exchange”). In
connection with the Exchange, the Owner hereby certifies that:

 

1.             Exchange of Restricted Definitive Notes or
Beneficial Interests in a Restricted Global Note for Unrestricted Definitive
Notes or Beneficial Interests in an Unrestricted Global Note

 

(a)  o
Check if Exchange is from beneficial interest in a
Restricted Global Note to beneficial interest in an Unrestricted Global Note.
In connection with the Exchange of the Owner’s beneficial interest in a Restricted
Global Note for a beneficial interest in an Unrestricted Global Note in an
equal principal amount, the Owner hereby certifies (i) the beneficial interest
is being acquired for the Owner’s own account without transfer, (ii) such
Exchange has been effected in compliance with the transfer restrictions
applicable to the Global Notes and pursuant to and in accordance with the
Securities Act of 1933, as amended (the “Securities Act”),
(iii) the restrictions on transfer contained in the Indenture and the Private
Placement Legend are not required in order to maintain compliance with the
Securities Act and (iv) the beneficial interest in an Unrestricted Global Note
is being acquired in compliance with any applicable blue sky securities laws of
any state of the United States.

 

(b)  o
Check if Exchange is from beneficial interest in a
Restricted Global Note to Unrestricted Definitive Note. In
connection with the Exchange of the Owner’s beneficial interest in a Restricted
Global Note for an Unrestricted Definitive Note, the Owner hereby certifies (i)
the Definitive Note is being acquired for the Owner’s own account without
transfer, (ii) such Exchange has been effected in compliance with the transfer
restrictions applicable to the Restricted Global Notes and pursuant to and in
accordance with the Securities Act, (iii) the restrictions on transfer
contained in the Indenture and the Private Placement Legend are not required in
order to maintain compliance with the Securities Act and (iv) the Definitive
Note is being acquired in compliance with any applicable blue sky securities
laws of any state of the United States.

 

(c)  o
Check if Exchange is from Restricted Definitive
Note to beneficial interest in an Unrestricted Global Note. In
connection with the Owner’s Exchange of a Restricted Definitive Note for a
beneficial interest in an Unrestricted Global Note, the Owner hereby certifies
(i) the beneficial interest is being acquired for the Owner’s own account
without transfer, (ii) such Exchange has been effected in compliance with the
transfer restrictions applicable to Restricted Definitive Notes and pursuant to
and in 

 

C-1

 

accordance with the
Securities Act, (iii) the restrictions on transfer contained in the Indenture
and the Private Placement Legend are not required in order to maintain
compliance with the Securities Act and (iv) the beneficial interest is being
acquired in compliance with any applicable blue sky securities laws of any
state of the United States.

 

(d)  o
Check if Exchange is from Restricted Definitive
Note to Unrestricted Definitive Note. In connection with the Owner’s
Exchange of a Restricted Definitive Note for an Unrestricted Definitive Note,
the Owner hereby certifies (i) the Unrestricted Definitive Note is being
acquired for the Owner’s own account without transfer, (ii) such Exchange has
been effected in compliance with the transfer restrictions applicable to
Restricted Definitive Notes and pursuant to and in accordance with the
Securities Act, (iii) the restrictions on transfer contained in the Indenture
and the Private Placement Legend are not required in order to maintain
compliance with the Securities Act and (iv) the Unrestricted Definitive Note is
being acquired in compliance with any applicable blue sky securities laws of
any state of the United States.

 

2.             Exchange of Restricted Definitive Notes or
Beneficial Interests in Restricted Global Notes for Restricted Definitive Notes
or Beneficial Interests in Restricted Global Notes

 

(a)  o
Check if Exchange is from beneficial interest in a
Restricted Global Note to Restricted Definitive Note. In connection
with the Exchange of the Owner’s beneficial interest in a Restricted Global
Note for a Restricted Definitive Note with an equal principal amount, the Owner
hereby certifies that the Restricted Definitive Note is being acquired for the
Owner’s own account without transfer. Upon consummation of the proposed
Exchange in accordance with the terms of the Indenture, the Restricted
Definitive Note issued will continue to be subject to the restrictions on
transfer enumerated in the Private Placement Legend printed on the Restricted
Definitive Note and in the Indenture and the Securities Act.

 

(b)  o
Check if Exchange is from Restricted Definitive
Note to beneficial interest in a Restricted Global Note. In
connection with the Exchange of the Owner’s Restricted Definitive Note for a
beneficial interest in the [CHECK ONE] o
144A Global Note, o Regulation S
Global Note,  o
IAI Global Note with an equal principal amount, the Owner hereby certifies (i)
the beneficial interest is being acquired for the Owner’s own account without
transfer and (ii) such Exchange has been effected in compliance with the
transfer restrictions applicable to the Restricted Global Notes and pursuant to
and in accordance with the Securities Act, and in compliance with any
applicable blue sky securities laws of any state of the United States. Upon
consummation of the proposed Exchange in accordance with the terms of the
Indenture, the beneficial interest issued will be subject to the restrictions
on transfer enumerated in the Private Placement Legend printed on the relevant
Restricted Global Note and in the Indenture and the Securities Act.

 

This certificate and the statements contained herein
are made for your benefit and the benefit of the Company.

 

	
   

  	
   

  	
   

  
	
   

  	
   

  	
  [Insert Name of Transferor]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
  Dated:

  	
   

  	
   

  	
   

  
						

 

C-2

 

EXHIBIT D

 

FORM
OF CERTIFICATE FROM

ACQUIRING INSTITUTIONAL ACCREDITED INVESTOR

 

Georgia Gulf
Corporation

115 Perimeter Center Place

Suite 460

Atlanta, Georgia 30346

 

LaSalle Bank National Association

135 S. LaSalle Street, Suite 1560

Chicago, Illinois 60603

 

Re:  10.75% Senior
Subordinated Notes due 2016

 

Reference is hereby made to the Indenture, dated as of
October 3, 2006 (the “Indenture”),
among Georgia Gulf Corporation, as issuer (the “Company”),
the Guarantors party thereto and LaSalle Bank National Association, as trustee.
Capitalized terms used but not defined herein shall have the meanings given to
them in the Indenture.

 

In connection with our proposed purchase of $             
aggregate principal amount of:

 

(a)  o
a beneficial interest in a Global Note, or

 

(b)  o
a Definitive Note,

 

we confirm that:

 

1.             We
understand that any subsequent transfer of the Notes or any interest therein is
subject to certain restrictions and conditions set forth in the Indenture and
the undersigned agrees to be bound by, and not to resell, pledge or otherwise
transfer the Notes or any interest therein except in compliance with, such
restrictions and conditions and the Securities Act of 1933, as amended (the “Securities Act”).

 

2.             We
understand that the offer and sale of the Notes have not been registered under
the Securities Act, and that the Notes and any interest therein may not be
offered or sold except as permitted in the following sentence. We agree, on our
own behalf and on behalf of any accounts for which we are acting as hereinafter
stated, that if we should sell the Notes or any interest therein, we will do so
only (A) to the Company or any subsidiary thereof, (B) in accordance with Rule
144A under the Securities Act to a “qualified institutional buyer” (as defined
therein), (C) to an institutional “accredited investor” (as defined below)
that, prior to such transfer, furnishes (or has furnished on its behalf by a
U.S. broker-dealer) to you and to the Company a signed letter substantially in
the form of this letter and, if such transfer is in respect of a principal amount
of Notes, at the time of transfer of less than $250,000, an Opinion of Counsel
in form reasonably acceptable to the Company to the effect that such transfer
is in compliance with the Securities Act, (D) outside the United States in
accordance with Rule 904 of Regulation S under the Securities Act, (E) pursuant
to the provisions of Rule 144(k) under the Securities Act or (F) pursuant to an
effective registration statement under the Securities Act, and we further agree
to provide to any Person purchasing the Definitive Note or beneficial interest
in a Global Note from us in a transaction meeting the requirements of clauses
(A) through (E) of this paragraph a notice advising such purchaser that resales
thereof are restricted as stated herein.

 

3.             We
understand that, on any proposed resale of the Notes or beneficial interest
therein, we will be required to furnish to you and the Company such
certifications, legal opinions and other 

 

D-1

 

information as you and
the Company may reasonably require to confirm that the proposed sale complies
with the foregoing restrictions. We further understand that the Notes purchased
by us will bear a legend to the foregoing effect.

 

4.             We
are an institutional “accredited investor” (as defined in Rule 501(a)(1), (2),
(3) or (7) of Regulation D under the Securities Act) and have such knowledge
and experience in financial and business matters as to be capable of evaluating
the merits and risks of our investment in the Notes, and we and any accounts
for which we are acting are each able to bear the economic risk of our or its
investment.

 

5.             We
are acquiring the Notes or beneficial interest therein purchased by us for our
own account or for one or more accounts (each of which is an institutional “accredited
investor”) as to each of which we exercise sole investment discretion.

 

You and 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.

 

	
   

  	
   

  
	
   

  	
  [Insert Name of Accredited Investor]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
  Dated:

  	
   

  	
   

  	
   

  
					

 

D-2

 

EXHIBIT E

 

FORM
OF NOTATION OF GUARANTEE

 

For value received, each Guarantor (which term
includes any successor Person to a Guarantor under the Indenture) has, jointly
and severally, unconditionally guaranteed, to the extent set forth in the
Indenture and subject to the provisions in the Indenture dated as of October 3,
2006 (the “Indenture”) among Georgia Gulf
Corporation, (the “Company”), the Guarantors party
thereto and LaSalle Bank National Association, as trustee (the “Trustee”), (a) the due and punctual payment of the principal
of, premium and Additional Interest, if any, and interest on, the Notes,
whether at maturity, by acceleration, redemption or otherwise, the due and
punctual payment of interest on overdue principal of and interest on the Notes,
if any, if lawful, and the due and punctual performance of all other
obligations of the Company to the Holders or the Trustee all in accordance with
the terms of the Indenture and (b) in case of any extension of time of payment
or renewal of any Notes or any of such other obligations, that the same will be
promptly paid in full when due or performed in accordance with the terms of the
extension or renewal, whether at stated maturity, by acceleration or otherwise.
The obligations of the Guarantors to the Holders of Notes and to the Trustee
pursuant to the Note Guarantee and the Indenture are expressly set forth in
Article 11 of the Indenture and reference is hereby made to the Indenture for
the precise terms of the Note Guarantee. Each Holder of a Note, by accepting the
same, (a) agrees to and shall be bound by such provisions (b) authorizes and
directs the Trustee, on behalf of such Holder, to take such action as may be
necessary or appropriate to effectuate the subordination as provided in the
Indenture and (c) appoints the Trustee attorney-in-fact of such Holder for such
purpose; provided, however, that the Indebtedness
evidenced by this Note Guarantee shall cease to be so subordinated and subject
in right of payment upon any defeasance of this Note in accordance with the
provisions of the Indenture.

 

Capitalized terms used but not defined herein have the
meanings given to them in the Indenture.

 

	
   

  	
  [NAME OF GUARANTOR(S)]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

E-1

 

EXHIBIT F

 

FORM
OF SUPPLEMENTAL INDENTURE

TO BE DELIVERED BY SUBSEQUENT GUARANTORS

 

SUPPLEMENTAL INDENTURE (this “Supplemental
Indenture”), dated as of                 ,
200  , among                   
(the “Guaranteeing Subsidiary”), a subsidiary
of Georgia Gulf Corporation (or its permitted successor), a Delaware
corporation (the “Company”), the Company, the other
Guarantors (as defined in the Indenture referred to herein) and LaSalle Bank National
Association, as trustee under the Indenture referred to below (the “Trustee”).

 

W I T
N E S S E T H

 

WHEREAS, the Company has heretofore executed and
delivered to the Trustee an indenture (the “Indenture”),
dated as of October 3, 2006, providing for the issuance of 10.75% Senior
Subordinated Notes due 2016 (the “Notes”);

 

WHEREAS, the Indenture provides that under certain
circumstances the Guaranteeing Subsidiary shall execute and deliver to the
Trustee a supplemental indenture pursuant to which the Guaranteeing Subsidiary
shall unconditionally guarantee all of the Company’s Obligations under the
Notes and the Indenture on the terms and conditions set forth therein and
herein (the “Note Guarantee”); and

 

WHEREAS, pursuant to Section 9.01 of the Indenture,
the Trustee is authorized to execute and deliver this Supplemental Indenture.

 

NOW, THEREFORE, in consideration of the foregoing and
for other good and valuable consideration, the receipt of which is hereby
acknowledged, the Guaranteeing Subsidiary and the Trustee mutually covenant and
agree for the equal and ratable benefit of the Holders of the Notes as follows:

 

1.             CAPITALIZED
TERMS. Capitalized terms used herein without definition shall have the meanings
assigned to them in the Indenture.

 

2.             AGREEMENT
TO GUARANTEE. The Guaranteeing Subsidiary hereby agrees to provide an
unconditional Guarantee on the terms and subject to the conditions set forth in
the Note Guarantee and in the Indenture including but not limited to Article 11
thereof.

 

4.             NO
RECOURSE AGAINST OTHERS. No past, present or future director, officer, employee,
incorporator, stockholder or agent of the Guaranteeing Subsidiary, as such,
shall have any liability for any obligations of the Company or any Guaranteeing
Subsidiary under the Notes, any Note Guarantees, the Indenture or this
Supplemental Indenture or for any claim based on, in respect of, or by reason
of, such obligations or their creation. Each Holder of the Notes by accepting a
Note waives and releases all such liability. The waiver and release are part of
the consideration for issuance of the Notes. Such waiver may not be effective
to waive liabilities under the federal securities laws and it is the view of
the SEC that such a waiver is against public policy.

 

5.             NEW
YORK LAW TO GOVERN. THE INTERNAL LAW OF THE STATE OF NEW YORK SHALL GOVERN AND
BE USED TO CONSTRUE THIS SUPPLEMENTAL INDENTURE WITHOUT GIVING EFFECT TO
APPLICABLE PRINCIPLES OF CONFLICTS OF LAW TO THE EXTENT THAT THE APPLICATION OF
THE LAWS OF ANOTHER JURISDICTION WOULD BE REQUIRED THEREBY.

 

6.             COUNTERPARTS.
The parties may sign any number of copies of this Supplemental Indenture. Each
signed copy shall be an original, but all of them together represent the same
agreement.

 

F-1

 

7.             EFFECT
OF HEADINGS. The Section headings herein are for convenience only and shall not
affect the construction hereof.

 

8.             THE
TRUSTEE. The Trustee shall not be responsible in any manner whatsoever for or
in respect of the validity or sufficiency of this Supplemental Indenture or for
or in respect of the recitals contained herein, all of which recitals are made
solely by the Guaranteeing Subsidiary and the Company.

 

F-2

 

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

 

Dated: 
_______________, 20___

 

	
   

  	
  [GUARANTEEING SUBSIDIARY]

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
  GEORGIA GULF CORPORATION

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
  GEORGIA GULF CHEMICALS
  & 

  VINYLS, LLC

  GEORGIA GULF LAKE CHARLES,
  LLC

  GREAT RIVER OIL & GAS CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
  LASALLE BANK NATIONAL ASSOCIATION,
  as Trustee

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Authorized Signatory

  

 

F-3Exhibit 4.3

 

CREDIT
AGREEMENT

 

Dated
as of October 3, 2006

 

among

 

GEORGIA
GULF CORPORATION and ROYAL GROUP TECHNOLOGIES LIMITED,

as
the Borrowers,

 

CERTAIN
SUBSIDIARIES OF GEORGIA GULF CORPORATION

FROM
TIME TO TIME PARTY HERETO,

as
the Guarantors,

 

BANK
OF AMERICA, NATIONAL ASSOCIATION,

as Domestic Administrative Agent, Domestic Collateral Agent and Domestic L/C
Issuer,

 

BANK
OF AMERICA, NATIONAL ASSOCIATION, acting through its Canada branch

as Canadian Administrative Agent, Canadian Collateral Agent and Canadian L/C
Issuer,

 

and

 

THE
BANK OF NOVA SCOTIA, as Canadian Swing Line Lender

 

MERRILL
LYNCH CAPITAL CORPORATION

and

LEHMAN
COMMERCIAL PAPER INC.,

as
Co-Syndication Agents

 

and

 

WACHOVIA
BANK, NATIONAL ASSOCIATION,

as
Co-Documentation Agent

 

and

 

THE
OTHER LENDERS PARTY HERETO

 

BANC
OF AMERICA SECURITIES LLC

and

J.P.
MORGAN SECURITIES INC.,

as
Joint Lead Arrangers

 

and

 

BANC
OF AMERICA SECURITIES LLC,

MERRILL
LYNCH PIERCE, FENNER & SMITH INCORPORATED.

LEHMAN
BROTHERS INC.

and

 

J.P.
MORGAN SECURITIES INC.,

as
Joint Book Runners

 

 

TABLE OF CONTENTS

 

	
   

  	
  Page

  
	
   

  
	
  ARTICLE I DEFINITIONS AND
  ACCOUNTING TERMS

  	
  2

  
	
  1.01

  	
  Defined Terms

  	
  2

  
	
  1.02

  	
  Other Interpretive
  Provisions

  	
  40

  
	
  1.03

  	
  Accounting Terms

  	
  40

  
	
  1.04

  	
  Rounding

  	
  41

  
	
  1.05

  	
  Exchange Rates; Currency
  Equivalents

  	
  41

  
	
  1.06

  	
  Times of Day

  	
  41

  
	
  1.07

  	
  Letter of Credit Amounts

  	
  42

  
	
  1.08

  	
  Canadian Borrower

  	
  42

  
	
   

  	
   

  	
   

  
	
  ARTICLE II THE COMMITMENTS
  AND CREDIT EXTENSIONS

  	
  42

  
	
  2.01

  	
  Revolving Loans and Term
  Loan

  	
  42

  
	
  2.02

  	
  Borrowings, Conversions
  and Continuations of Loans

  	
  43

  
	
  2.03

  	
  Letters of Credit

  	
  49

  
	
  2.05

  	
  Prepayments

  	
  61

  
	
  2.06

  	
  Termination or Reduction
  of Commitments

  	
  65

  
	
  2.07

  	
  Repayment of Loans

  	
  66

  
	
  2.08

  	
  Interest

  	
  68

  
	
  2.09

  	
  Fees

  	
  68

  
	
  2.10

  	
  Computation of Interest
  and Fees

  	
  69

  
	
  2.11

  	
  Evidence of Debt

  	
  70

  
	
  2.12

  	
  Payments Generally;
  Administrative Agent’s Clawback

  	
  70

  
	
  2.13

  	
  Sharing of Payments by
  Lenders

  	
  73

  
	
   

  	
   

  	
   

  
	
  ARTICLE III TAXES, YIELD
  PROTECTION AND ILLEGALITY

  	
  74

  
	
  3.01

  	
  Taxes

  	
  74

  
	
  3.02

  	
  Illegality

  	
  76

  
	
  3.03

  	
  Inability to Determine
  Rates

  	
  77

  
	
  3.04

  	
  Increased Costs; Reserves
  on Eurodollar Rate Loans

  	
  77

  
	
  3.05

  	
  Compensation for Losses

  	
  79

  
	
  3.06

  	
  Mitigation Obligations;
  Replacement of Lenders

  	
  79

  
	
  3.07

  	
  Survival

  	
  80

  
	
   

  	
   

  	
   

  
	
  ARTICLE IV GUARANTY

  	
  80

  
	
  4.01

  	
  The Guaranty

  	
  80

  
	
  4.02

  	
  Obligations Unconditional

  	
  80

  
	
  4.03

  	
  Reinstatement

  	
  82

  
	
  4.04

  	
  Certain Additional Waivers

  	
  82

  
	
  4.05

  	
  Remedies

  	
  82

  
	
  4.06

  	
  Rights of Contribution

  	
  83

  
	
  4.07

  	
  Guarantee of Payment;
  Continuing Guarantee

  	
  83

  
	
   

  	
   

  	
   

  
	
  ARTICLE V CONDITIONS
  PRECEDENT TO CREDIT EXTENSIONS

  	
  84

  
	
  5.01

  	
  Conditions of Initial
  Credit Extension

  	
  84

  
	
  5.02

  	
  Conditions to all Credit
  Extensions

  	
  88

  

 

 

	
  ARTICLE VI REPRESENTATIONS
  AND WARRANTIES

  	
  89

  
	
  6.01

  	
  Existence, Qualification
  and Power

  	
  89

  
	
  6.02

  	
  Authorization; No
  Contravention

  	
  89

  
	
  6.03

  	
  Governmental
  Authorization; Other Consents

  	
  89

  
	
  6.04

  	
  Binding Effect

  	
  89

  
	
  6.05

  	
  Financial Condition; No
  Material Adverse Effect

  	
  90

  
	
  6.06

  	
  No Material Litigation

  	
  91

  
	
  6.07

  	
  No Default

  	
  91

  
	
  6.08

  	
  Ownership of Property;
  Liens

  	
  91

  
	
  6.09

  	
  Environmental Matters

  	
  91

  
	
  6.10

  	
  Taxes

  	
  92

  
	
  6.11

  	
  Pension Plans

  	
  93

  
	
  6.12

  	
  Insurance

  	
  93

  
	
  6.13

  	
  Subsidiaries

  	
  94

  
	
  6.14

  	
  Federal Regulations;
  Investment Company Act; Other Regulations

  	
  94

  
	
  6.15

  	
  Disclosure

  	
  94

  
	
  6.16

  	
  Compliance with Laws

  	
  94

  
	
  6.17

  	
  Intellectual Property;
  Licenses

  	
  94

  
	
  6.18

  	
  Solvency

  	
  95

  
	
  6.19

  	
  Perfection of Security
  Interests in the Collateral

  	
  95

  
	
  6.20

  	
  Business Locations

  	
  95

  
	
  6.21

  	
  Labor Matters

  	
  95

  
	
  6.22

  	
  Subordination

  	
  95

  
	
   

  	
   

  	
   

  
	
  ARTICLE VII AFFIRMATIVE
  COVENANTS

  	
  95

  
	
  7.01

  	
  Financial Statements

  	
  96

  
	
  7.02

  	
  Certificates; Other
  Information

  	
  96

  
	
  7.03

  	
  Notices

  	
  99

  
	
  7.04

  	
  Payment of Obligations

  	
  100

  
	
  7.05

  	
  Maintenance of Existence

  	
  100

  
	
  7.06

  	
  Maintenance of Property

  	
  100

  
	
  7.07

  	
  Maintenance of Insurance

  	
  100

  
	
  7.08

  	
  Compliance with Laws

  	
  101

  
	
  7.09

  	
  Books and Records

  	
  101

  
	
  7.10

  	
  Inspection Rights

  	
  101

  
	
  7.11

  	
  Use of Proceeds

  	
  101

  
	
  7.12

  	
  Additional Subsidiaries

  	
  101

  
	
  7.13

  	
  ERISA Compliance

  	
  102

  
	
  7.14

  	
  Pledged Assets

  	
  102

  
	
  7.15

  	
  Further Assurances
  Regarding Collateral

  	
  104

  
	
  7.16

  	
  Landlord and Warehouseman
  Waivers

  	
  104

  
	
  7.17

  	
  Post Closing Deliverables

  	
  104

  
	
   

  	
   

  	
   

  
	
  ARTICLE VIII NEGATIVE
  COVENANTS

  	
  104

  
	
  8.01

  	
  Liens

  	
  104

  
	
  8.02

  	
  Investments

  	
  106

  
	
  8.03

  	
  Indebtedness

  	
  107

  
	
  8.04

  	
  Fundamental Changes

  	
  108

  
	
  8.05

  	
  Dispositions

  	
  109

  
	
  8.06

  	
  Restricted Payments

  	
  109

  
	
  8.07

  	
  Change in Nature of
  Business

  	
  110

  
	
  8.08

  	
  Transactions with
  Affiliates

  	
  110

  

 

 

	
  8.09

  	
  Burdensome Agreements

  	
  110

  
	
  8.10

  	
  Use of Proceeds

  	
  111

  
	
  8.11

  	
  Financial Covenants

  	
  111

  
	
  8.12

  	
  Prepayment of Other
  Indebtedness, Etc.

  	
  111

  
	
  8.13

  	
  Organization Documents; Fiscal
  Year; Legal Name, State of Formation and Form of Entity

  	
  112

  
	
  8.14

  	
  Sale Leasebacks

  	
  112

  
	
  8.15

  	
  Capital Expenditures

  	
  112

  
	
   

  	
   

  	
   

  
	
  ARTICLE IX EVENTS OF
  DEFAULT AND REMEDIES

  	
  113

  
	
  9.01

  	
  Events of Default

  	
  113

  
	
  9.02

  	
  Remedies Upon Event of
  Default

  	
  115

  
	
  9.03

  	
  Application of Funds

  	
  116

  
	
  9.04

  	
  Collection Allocation
  Mechanism

  	
  118

  
	
   

  	
   

  	
   

  
	
  ARTICLE X ADMINISTRATIVE
  AGENTS

  	
  119

  
	
  10.01

  	
  Appointment and Authority

  	
  119

  
	
  10.02

  	
  Rights as a Lender

  	
  121

  
	
  10.03

  	
  Exculpatory Provisions

  	
  122

  
	
  10.04

  	
  Reliance by Administrative
  Agent

  	
  122

  
	
  10.05

  	
  Delegation of Duties

  	
  123

  
	
  10.06

  	
  Resignation of
  Administrative Agent

  	
  123

  
	
  10.07

  	
  Non-Reliance on
  Administrative Agent and Other Lenders

  	
  124

  
	
  10.08

  	
  No Other Duties, Etc.

  	
  124

  
	
  10.09

  	
  Administrative Agent
  May File Proofs of Claim

  	
  124

  
	
  10.10

  	
  Collateral and Guaranty
  Matters

  	
  125

  
	
   

  	
   

  	
   

  
	
  ARTICLE XI MISCELLANEOUS

  	
  126

  
	
  11.01

  	
  Amendments, Etc.

  	
  126

  
	
  11.02

  	
  Notices; Effectiveness;
  Electronic Communication

  	
  128

  
	
  11.03

  	
  No Waiver; Cumulative
  Remedies

  	
  129

  
	
  11.04

  	
  Expenses; Indemnity;
  Damage Waiver

  	
  129

  
	
  11.05

  	
  Payments Set Aside

  	
  131

  
	
  11.06

  	
  Successors and Assigns

  	
  132

  
	
  11.07

  	
  Treatment of Certain
  Information; Confidentiality

  	
  136

  
	
  11.08

  	
  Right of Setoff

  	
  136

  
	
  11.09

  	
  Interest Rate Limitation

  	
  137

  
	
  11.10

  	
  Counterparts; Integration;
  Effectiveness

  	
  137

  
	
  11.11

  	
  Survival of
  Representations and Warranties

  	
  137

  
	
  11.12

  	
  Severability

  	
  137

  
	
  11.13

  	
  Replacement of Lenders

  	
  138

  
	
  11.14

  	
  Governing Law;
  Jurisdiction; Etc.

  	
  139

  
	
  11.15

  	
  Waiver of Jury Trial

  	
  139

  
	
  11.16

  	
  No Advisory or Fiduciary
  Responsibility

  	
  140

  
	
  11.17

  	
  USA PATRIOT Act Notice

  	
  140

  
	
  11.18

  	
  Entire Agreement

  	
  140

  

 

 

	
  SCHEDULES

  
	
  1.01(a)

  	
  Consolidated EBITDA

  
	
  1.01(b)

  	
  Existing Canadian Letters
  of Credit

  
	
  1.01(c)

  	
  Existing Domestic Letters
  of Credit

  
	
  1.01(d)

  	
  Restricted Persons

  
	
  2.01

  	
  Commitments and Applicable
  Percentages

  
	
  5.01(e)

  	
  Material Intellectual
  Property

  
	
  6.06

  	
  Litigation

  
	
  6.09

  	
  Environmental Matters

  
	
  6.12

  	
  Insurance

  
	
  6.13

  	
  Subsidiaries

  
	
  6.20(a)

  	
  Real Property Locations

  
	
  6.20(b)

  	
  Canadian Personal Property
  Locations

  
	
  6.21

  	
  Labor Matters

  
	
  7.17

  	
  Post-Closing Deliverables

  
	
  8.01

  	
  Existing Liens

  
	
  8.02

  	
  Existing Investments

  
	
  8.03

  	
  Existing Indebtedness

  
	
  11.02

  	
  Certain Addresses for
  Notices

  
	
  11.06

  	
  Processing and Recordation
  Fees

  
	
   

  	
   

  
	
  EXHIBITS

  
	
   

  
	
  A

  	
  Loan Notice

  
	
  B-1

  	
  Domestic Revolving Note

  
	
  B-2

  	
  Canadian Revolving Note

  
	
  B-3

  	
  Term Note

  
	
  B-4

  	
  Canadian Swing Line Note

  
	
  B-5

  	
  Acceptance Note

  
	
  C

  	
  Compliance Certificate

  
	
  D

  	
  Assignment and Assumption

  
	
  E

  	
  Domestic Joinder Agreement

  
	
  F

  	
  Canadian Joinder Agreement

  
	
  G

  	
  Holdco Note

  

 

 

CREDIT AGREEMENT

 

This CREDIT AGREEMENT (“Agreement”)
is entered into as of October 3, 2006, among GEORGIA GULF CORPORATION, a Delaware corporation (“GGC”), ROYAL
GROUP TECHNOLOGIES LIMITED, a Canadian federal corporation (the “Canadian
Borrower”; together with GGC, the “Borrowers”), the Guarantors (as
defined herein), each lender from time to time party hereto (collectively, the “Lenders”
and individually, a “Lender”), BANK OF AMERICA, NATIONAL ASSOCIATION, as Domestic Administrative Agent,
Domestic Collateral Agent and Domestic L/C Issuer, BANK OF AMERICA, NATIONAL
ASSOCIATION acting through its Canada branch, as Canadian Administrative Agent,
Canadian Collateral Agent and Canadian L/C Issuer and THE BANK OF NOVA SCOTIA,
as Canadian Swing Line Lender.

 

The Borrowers have requested
that the Lenders provide credit facilities for the purposes set forth herein,
and the Lenders are willing to do so on the terms and conditions set forth
herein.

 

In consideration of the
mutual covenants and agreements herein contained, the parties hereto covenant
and agree as follows:

 

ARTICLE I

DEFINITIONS AND ACCOUNTING TERMS

 

1.01        Defined Terms.

 

As used in this Agreement,
the following terms shall have the meanings set forth below:

 

“Acceptance Lender”
means a Canadian Revolving Lender who purchases Acceptance Notes in accordance
with Section 2.02(g)(vii) but does not accept or purchase Bankers’
Acceptances.

 

“Acceptance Note” has
the meaning set forth in Section 2.02(g)(vii)(B).

 

“Acquisition”, by any
Person, means the acquisition by such Person, in a single transaction or in a
series of related transactions, of all or any substantial portion of the Property
of another Person, or at least a majority of the Voting Stock of another
Person, in each case whether or not involving a merger or consolidation with
such other Person and whether for cash, property, services, assumption of
Indebtedness, securities or otherwise.

 

“Acquisition Documents”
means the Arrangement Agreement and such other agreements, instruments and
documents relating to the Royal Acquisition as are required to be executed and
delivered to effect the Royal Acquisition pursuant to the Arrangement
Agreement.

 

“Administrative Agent”
means the Domestic Administrative Agent and/or the Canadian Administrative
Agent, as appropriate.

 

“Administrative Agent Fee
Letter” means the letter agreement, dated June 9, 2006, among GGC, Bank of
America and BAS.

 

“Administrative
Questionnaire” means an Administrative Questionnaire in a form supplied by
the Domestic Administrative Agent.

 

“Affiliate” means,
with respect to any Person, another Person that directly, or indirectly through
one or more intermediaries, Controls or is Controlled by or is under common
Control 

 

 

with
the Person specified.

 

“Aggregate Commitments”
means the Aggregate Canadian Revolving Commitments, the Aggregate Domestic
Revolving Commitments and the Term Loan Commitments of all Lenders.

 

“Aggregate Canadian
Revolving Commitments” means the Canadian Revolving Commitments of all
Canadian Revolving Lenders. The initial amount of the Aggregate Canadian
Revolving Commitments in effect on the Closing Date is ONE HUNDRED FORTY THREE
MILLION SEVEN HUNDRED FIFTY THOUSAND DOLLARS (US$143,750,000).

 

“Aggregate Domestic
Revolving Commitments” means the Domestic Revolving Commitments of all
Domestic Revolving Lenders. The initial amount of the Aggregate Domestic
Revolving Commitments in effect on the Closing Date is TWO HUNDRED ELEVEN
MILLION TWO HUNDRED FIFTY THOUSAND DOLLARS (US$211,250,000).

 

“Agreement” means
this Credit Agreement.

 

“Alternative Currency”
means (a) with respect to the Canadian Revolving Commitments, U.S. Dollars, (b)
with respect to Domestic Letters of Credit, Canadian Dollars and (c) with
respect to Canadian Letters of Credit, U.S. Dollars, Euro, Sterling, Mexican
Pesos and Chinese Yuan.

 

“Alternative Currency
Equivalent” means, at any time, (a) with respect to any amount denominated
in U.S. Dollars, the equivalent amount thereof in the applicable Alternative
Currency as determined by the Domestic Administrative Agent at such time on the
basis of the Spot Rate (determined in respect of the applicable Revaluation
Date) for the purchase of Canadian Dollars with U.S. Dollars and (b) with
respect to any amount denominated in Canadian Dollars, the equivalent amount
thereof in the applicable Alternative Currency as determined by the Canadian
Administrative Agent at such time on the basis of the Spot Rate (determined in
respect of the applicable Revaluation Date) for the purchase of U.S. Dollars
with Canadian Dollars.

 

“Applicable Percentage”
means (a) with respect to any Domestic Revolving Lender at any time, the
percentage of the Aggregate Domestic Revolving Commitments represented by such
Domestic Revolving Lender’s Domestic Revolving Commitment at such time (if the
commitment of each Domestic Revolving Lender to make Domestic Revolving Loans
and the obligation of the applicable Domestic L/C Issuers to make Domestic L/C
Credit Extensions have been terminated pursuant to Section 9.02 or if
the Aggregate Domestic Revolving Commitments have expired, then the Applicable
Percentage of each Domestic Revolving Lender shall be determined based on the
Applicable Percentage of such Domestic Revolving Lender most recently in
effect, giving effect to any subsequent assignments), (b) with respect to any
Canadian Revolving Lender at any time, the percentage of the Aggregate Canadian
Revolving Commitments represented by such Canadian Revolving Lender’s Canadian
Revolving Commitment at such time (if the commitment of each Canadian Revolving
Lender to make Canadian Revolving Loans and the obligation of the applicable
Canadian L/C Issuers to make Canadian L/C Credit Extensions have been
terminated pursuant to Section 9.02 or if the Aggregate Canadian
Revolving Commitments have expired, then the Applicable Percentage of each
Canadian Revolving Lender shall be determined based on the Applicable
Percentage of such Canadian Revolving Lender most recently in effect, giving
effect to any subsequent assignments) and (c) with respect to any Term Loan
Lender, the percentage of the outstanding principal amount of the Term Loan
held by such Term Loan Lender at such time. The initial Applicable

 

 

Percentage
of each Lender is set forth opposite the name of such Lender on Schedule 2.01
or in the Assignment and Assumption pursuant to which such Lender becomes a
party hereto, as applicable.

 

“Applicable Rate”
means (a) with respect to the Revolving Loans that are Base Rate Loans,
Eurodollar Rate Loans or Bankers’ Acceptance Advances, Letters of Credit and
Commitment Fees, the following percentages per annum, based upon the
Consolidated Adjusted Leverage Ratio as set forth in the most recent Compliance
Certificate received by the Domestic Administrative Agent pursuant to Section 7.02(b):

 

	
  Pricing

  Tier

  	
   

  	
  Consolidated

  Adjusted Leverage

  Ratio

  	
   

  	
  Commitment

  Fees

  	
   

  	
  Eurodollar Rate

  Loans and Letter

  of Credit Fee

  	
   

  	
  Bankers

  Acceptance

  Advances

  	
   

  	
  Base Rate Loans

  	
   

  
	
  1

  	
   

  	
  >
  4.5 to 1.0

  	
   

  	
  0.50%

  	
   

  	
  2.375%

  	
   

  	
  2.375%

  	
   

  	
  1.375%

  	
   

  
	
  2

  	
   

  	
  >
  4.0 to 1.0 but < 4.5 to 1.0

  	
   

  	
  0.50%

  	
   

  	
  2.00%

  	
   

  	
  2.00%

  	
   

  	
  1.00%

  	
   

  
	
  3

  	
   

  	
  >
  3.5 to 1.0 but < 4.0 to 1.0

  	
   

  	
  0.50%

  	
   

  	
  1.75%

  	
   

  	
  1.75%

  	
   

  	
  0.75%

  	
   

  
	
  4

  	
   

  	
  >
  3.0 to 1.0 but < 3.5 to 1.0

  	
   

  	
  0.375%

  	
   

  	
  1.50%

  	
   

  	
  1.50%

  	
   

  	
  0.50%

  	
   

  
	
  5

  	
   

  	
  >
  2.5 to 1.0 but < 3.0 to 1.0

  	
   

  	
  0.375%

  	
   

  	
  1.25%

  	
   

  	
  1.25%

  	
   

  	
  0.25%

  	
   

  
	
  6

  	
   

  	
  < 2.5 to 1.0

  	
   

  	
  0.375%

  	
   

  	
  1.00%

  	
   

  	
  1.00%

  	
   

  	
  0.00%

  	
   

  

 

and (b) with respect to the Term Loan, a
percentage per annum equal to (i) 2.00% for Eurodollar Rate Loans and (ii)
1.00% for Base Rate Loans. Any increase or decrease in the Applicable Rate
resulting from a change in the Consolidated Adjusted Leverage Ratio shall
become effective as of the first Business Day immediately following the date a
Compliance Certificate is delivered pursuant to Section 7.02(b); provided,
however, that if a Compliance Certificate is not delivered when due in
accordance with such Section, then Pricing Tier 1 shall apply as of the first
Business Day after the date on which such Compliance Certificate was required
to have been delivered and shall continue to apply until the first Business Day
immediately following the date a Compliance Certificate is delivered in
accordance with Section 7.02(b), whereupon the Applicable Rate shall be
adjusted based upon the calculation of the Consolidated Adjusted Leverage Ratio
contained in such Compliance Certificate. Notwithstanding the foregoing, the
Applicable Rate for Revolving Loans, Letters of Credit and Commitment Fees in
effect from the Closing Date through the first Business Day immediately
following the date a Compliance Certificate is required to be delivered
pursuant to Section 7.02(b) for the fiscal quarter ending December 31,
2006 shall be determined based upon Pricing Tier 2.

 

“Approved Fund” means
any Fund that is administered or managed by (a) a Lender, (b) an
Affiliate of a Lender or (c) an entity or an Affiliate of an entity that
administers or manages a Lender. Notwithstanding the foregoing, the term “Approved
Fund” shall not include any Person identified on Schedule 1.01(d).

 

“Arrangement Agreement”
means that certain Arrangement Agreement dated June 9, 2006 between GGC, Rome
and the Canadian Borrower.

 

“Assignee Group”
means two or more Eligible Assignees that are Affiliates of one 

 

 

another
or two or more Approved Funds managed by the same investment advisor.

 

“Assignment and
Assumption” means an assignment and assumption entered into by a Lender and
an Eligible Assignee (with the consent of any party whose consent is required
by Section 11.06(b), and accepted by the Domestic Administrative Agent,
in substantially the form of Exhibit D or any other form approved
by the Domestic Administrative Agent.

 

“Attributable
Indebtedness” means, on any date, (a) in respect of any Capital Lease
of any Person, the capitalized amount thereof that would appear on a balance
sheet of such Person prepared as of such date in accordance with GAAP,
(b) in respect of any Synthetic Lease Obligation, the capitalized amount
of the remaining lease payments under the relevant lease that would appear on a
balance sheet of such Person prepared as of such date in accordance with GAAP
if such lease were accounted for as a Capital Lease and (c) in respect of any
Securitization Transaction of any Person, the outstanding principal amount of
such financing, after taking into account reserve accounts and making
appropriate adjustments, determined by the Domestic Administrative Agent in its
reasonable judgment.

 

“BA Lenders” means
any Canadian Revolving Lender other than the Acceptance Lenders.

 

“Bank of America”
means Bank of America, National Association and its successors.

 

“Bankers’ Acceptance”
means a bill of exchange subject to the Bills of Exchange Act (Canada) or a
depository bill subject to the Depository Bills and Notes Act (Canada) and
denominated in Canadian Dollars and drawn by the Canadian Borrower and accepted
by a Canadian Revolving Lender in accordance with Section 2.02(g) and
includes (without duplication) an Acceptance Note.

 

“Bankers’ Acceptances
Advance” means the advance of funds to the Canadian Borrower by way of
purchase of Bankers’ Acceptances or of an Acceptance Note, in each case in
accordance with Section 2.02(g).

 

“BA
Period” means a period of 1, 2, 3 or 6 months or such other
period as the Canadian Administrative Agent may agree, in each case, commencing
on a Business Day selected by the Canadian Borrower in its irrevocable Loan
Notice with respect to a Bankers’ Acceptance Advance delivered to Canadian
Administrative Agent in accordance with Section 2.02(b), provided
that the foregoing provision relating to BA Periods is subject to the
following:

 

(i)            any BA Period that would otherwise extend beyond the
Revolving Loan Maturity Date shall end on such date;

 

(ii)           the Canadian Borrower shall select BA
Periods so as not to require a payment or prepayment of a Bankers’ Acceptance
Advance pursuant to Section 2.05 during a BA Period for such Bankers’
Acceptance Advance;

 

(iii)          the Canadian Borrower shall select BA Periods so there
shall be no more than five (5) separate Bankers’ Acceptance Advances in
existence at any one time; and

 

(iv)          if any BA Period would otherwise end on a day other than a Business Day, the
maturity thereof shall be extended to the next succeeding Business Day unless
the result of such extension would be to extend such payment into another
calendar 

 

 

month,
in which event such payment shall be made on the immediately preceding Business
Day.

 

“BA Rate” means (i) with respect to a
Bankers’ Acceptance accepted by a Schedule I Lender, the CDOR Rate and (ii)
with respect to a Bankers’ Acceptance accepted by any Canadian Revolving Lender
other than a Schedule I Lender, the CDOR Rate plus 0.10 per annum.

 

“BAS” means Banc of
America Securities LLC.

 

“Base
Rate” means

 

(a)           in the case of Domestic Revolving
Loans and the Term Loan, for any day a fluctuating rate per annum equal to the
higher of (i) the Federal Funds Rate plus  1/2
of 1% and (ii) the Domestic Prime Rate;

 

(b)           in the case of Loans denominated in
Canadian Dollars, for any day a fluctuating rate per annum equal to the higher
of (i) the CDOR Rate plus 1/2 of 1% and (ii) the Canadian
Prime Rate; and

 

(c)           in the case of Canadian Revolving
Loans denominated in U.S. Dollars, for any day a fluctuating rate per annum
equal to the higher of (i) the rate which the Canadian Administrative Agent in
Toronto, Ontario announces from time to time as the reference rate of interest
for loans in U.S. Dollars to its Canadian borrowers; and (ii) the Federal Funds
Rate plus 1/2 of 1%.

 

“Base Rate Loan”
means a Loan that bears interest based on the Base Rate.

 

“Borrowers” has the
meaning specified in the introductory paragraph hereto, and “Borrower”
means any of them.

 

“Borrower Materials”
has the meaning specified in Section 7.02.

 

“Borrowing” means a
Domestic Revolving Borrowing, a Canadian Revolving Borrowing, a Canadian Swing
Line Borrowing, or a Term Loan Borrowing, as the context may require.

 

“Business Day” means,
(a) with respect to any notice, disbursement or payment to the Domestic
Administrative Agent, any Domestic Revolving Lender or GGC with respect to a
Domestic Revolving Loan, Domestic L/C Obligation or Term Loan, any day other
than a Saturday, Sunday or other day on which commercial banks are authorized
to close under the Laws of, or are in fact closed in, the jurisdiction where
the Domestic Administrative Agent’s Office is located and (b) with respect to
any notice, disbursement or payment by or to the Canadian Administrative Agent,
any Canadian Domestic Lender, the Canadian Borrower or GGC with respect to a
Canadian Obligation, any day other than a Saturday, Sunday or other day on
which commercial banks are authorized to close under the Laws of, or are in
fact closed in, the jurisdiction where the Canadian Administrative Agent’s
Office is located; and (c) in addition to (a) and (b) above, (i) if such day
relates to any interest rate settings as to a Eurodollar Rate Loan denominated
in U.S. Dollars, any fundings, disbursements, settlements and payments in U.S.
Dollars in respect of any such Eurodollar Rate Loan, or any other dealings in
U.S. Dollars to be carried out pursuant to this Agreement in respect of any
such Eurodollar Rate Loan, any such day on which dealings in deposits in U.S.
Dollars are conducted by and between banks in the London

 

 

interbank
eurodollar market; and (ii) if such day relates to any interest rate settings
as to a Eurodollar Rate Loan denominated in Canadian Dollars, any fundings,
disbursements, settlements and payments in Canadian Dollars in respect of any
such Eurodollar Rate Loan, or any other dealings in U.S. Dollars to be carried
out pursuant to this Agreement in respect of any such Eurodollar Rate Loan, any
such day on which dealings in deposits in Canadian Dollars are conducted by and
between banks in the London interbank eurodollar market.

 

“Businesses” means,
at any time, a collective reference to the businesses operated by GGC and its
Subsidiaries at such time.

 

“CAM Exchange” means
the exchange of the Lenders’ interests as provided in Section 9.04.

 

“CAM Exchange Date”
means the date on which an Event of Default under Section 9.01(g) or (h)
shall occur.

 

“CAM Exchange Percentage”
means, as to each Lender, a fraction, expressed as decimal, of which (a) the
numerator shall be the aggregate Canadian Dollar Equivalent and U.S. Dollar
Equivalent of the sum of (i) the Specified Obligations owed to such Lender and
(ii) such Lender’s participations in undrawn amounts of Letters of Credit, in
each case immediately prior to the CAM Exchange Date and (b) the denominator
shall be the aggregate Canadian Dollar Equivalent and U.S. Dollar Equivalent of
the sum of (i) the Specified Obligations owed to all the Lenders and (ii) the
aggregate undrawn amount of all outstanding Letters of Credit, in each case
immediately prior to the CAM Exchange Date.

 

“Canadian Administrative
Agent” means Bank of America, National Association, acting through its
Canada branch, in its capacity as Canadian administrative agent under any of
the Loan Documents, or any successor Canadian administrative agent.

 

“Canadian Administrative
Agent’s Office” means the Canadian Administrative Agent’s Canadian address
and, as appropriate, account as set forth on Schedule 11.02, or
such other Canadian address or account as the Canadian Administrative Agent may
from time to time notify to the Borrowers and the Canadian Revolving Lenders.

 

“Canadian Availability
Period” means, the period from and including the Closing Date to the
earliest of (a) the Revolving Loan Maturity Date, (b) the date of
termination of the Aggregate Canadian Revolving Commitments as provided herein,
and (c) the date of termination of the commitment of each Canadian
Revolving Lender to make Canadian Revolving Loans and of the obligation of each
Canadian L/C Issuer to make Canadian L/C Credit Extensions as provided herein.

 

“Canadian Borrower”
has the meaning specified in the introductory paragraph hereto.

 

“Canadian Collateral”
means a collective reference to the collateral which is identified in, and at
any time will be covered by, the Canadian Collateral Documents.

 

“Canadian Collateral
Agent” means Bank of America, National Association, acting through its
Canada branch, in its capacity as Canadian collateral agent under any of the
Loan Documents, or any successor Canadian collateral agent.

 

“Canadian Collateral
Documents” means a collective reference to the Canadian Security 

 

 

Agreement,
the Canadian Pledge Agreement, the Canadian Mortgages, any Deed of Hypothec,
any Quebec Bond Pledge and such other documents executed and delivered in
connection with the attachment and perfection of the security interests granted
to secure the Canadian Obligations.

 

“Canadian Commitment Fee”
has the meaning set forth in Section 2.09(a)(ii).

 

“Canadian Dollar” and
“CAN$” mean the lawful currency of Canada.

 

“Canadian Dollar
Equivalent” means, at any time, (a) with respect to any amount denominated
in Canadian Dollars, such amount and (b) with respect to any amount denominated
in an Alternative Currency, the equivalent amount thereof in Canadian Dollars
as determined by the Canadian Administrative Agent at such time on the basis of
the Spot Rate (determined in respect of the most recent Revaluation Date) for
the purchase of Canadian Dollars with such Alternative Currency.

 

“Canadian Guarantors”
means (a) GGC, (b) the Domestic Guarantors, (c) the parties identified on the
signature pages hereto as “Canadian Guarantors” and (d) each Person who after
the Closing Date becomes a Canadian Guarantor pursuant to a Joinder Agreement
or other documentation in form and substance reasonably acceptable to the Canadian
Administrative Agent, in each case together with their respective successors
and permitted assigns.

 

“Canadian Honor Date”
has the meaning provided in Section 2.03(c)(i)(B).

 

“Canadian Issuer
Documents” means the Canadian Letter of Credit Application, and any other
document, agreement and instrument entered into by the applicable Canadian L/C
Issuer and the Canadian Borrower or in favor of the applicable Canadian L/C
Issuer and relating to any such Canadian Letter of Credit.

 

“Canadian L/C Advance”
means, with respect to each Canadian Revolving Lender, such Canadian Revolving
Lender’s funding of its participation in any Canadian L/C Borrowing in
accordance with its Applicable Percentage. All Canadian L/C Advances shall be
denominated in Canadian Dollars.

 

“Canadian L/C Borrowing”
means an extension of credit resulting from a drawing under any Canadian Letter
of Credit which has not been reimbursed on the date when made or refinanced as
a Canadian Revolving Borrowing.

 

“Canadian L/C Credit
Extension” means, with respect to any Canadian Letter of Credit, the
issuance thereof or extension of the expiry date thereof, or the increase of
the amount thereof.

 

“Canadian L/C Issuer”
means (a) with respect to the Existing Canadian Letters of Credit, The Bank of
Nova Scotia, and (b) with respect to all other Canadian Letters of Credit, Bank
of America, acting through its Canada branch, The Bank of Nova Scotia and one
other Canadian Revolving Lender who has been selected by the Borrowers and who
has agreed to act as a Canadian L/C Issuer hereunder in accordance with the
terms hereof, or any successor issuer of Canadian Letters of Credit hereunder.

 

“Canadian L/C Obligations”
means, as at any date of determination, the aggregate amount available to be
drawn under all outstanding Canadian Letters of Credit plus the
aggregate of all Canadian Unreimbursed Amounts, including all Canadian L/C
Borrowings. For purposes of computing the amount available to be drawn under
any Canadian Letter of Credit, the amount 

 

 

of
such Canadian Letter of Credit shall be determined in accordance with Section 1.07.
For all purposes of this Agreement, if on any date of determination a Canadian
Letter of Credit has expired by its terms but any amount may still be drawn
thereunder by reason of the operation of Rule 3.14 of the ISP, such
Canadian Letter of Credit shall be deemed to be “outstanding” in the amount so
remaining available to be drawn.

 

“Canadian Letter of
Credit” means (a) any letter of credit issued hereunder by the applicable
Canadian L/C Issuer and (b) the Existing Canadian Letters of Credit. Canadian
Letters of Credit may be issued in Canadian Dollars or an Alternative Currency.
A Canadian Letter of Credit may be a standby letter of credit or a commercial
letter of credit.

 

“Canadian Letter of
Credit Application” means an application and agreement for the issuance or
amendment of a Canadian Letter of Credit in the form from time to time in use
by the applicable Canadian L/C Issuer.

 

“Canadian Letter of
Credit Sublimit” means an amount equal to US$75,000,000. The Canadian
Letter of Credit Sublimit is part of, and not in addition to, the Aggregate
Canadian Revolving Commitments.

 

“Canadian Loan Documents”
means this Agreement, each Canadian Revolving Note, each Canadian Issuer Document,
the Canadian Collateral Documents and the Administrative Agent Fee Letter.

 

“Canadian Loan Parties”
means the collective reference to the Canadian Borrower and each Canadian
Guarantor and “Canadian Loan Party” means any one of them.

 

“Canadian Mortgages”
means the mortgages or like instruments given by the Canadian Loan Parties to
the Canadian Collateral Agent to secure the Canadian Obligations, as such
instruments may be amended or modified from time to time.

 

“Canadian Multiemployer
Plan” means any Canadian Pension Plan which is a multi-employer plan or a
multi-employer pension plan within the meaning of any pension benefit standards
legislation of Canada or any province of Canada.

 

“Canadian Obligations”
means all advances to, and debts, liabilities, obligations, covenants and
duties of, any Canadian Loan Party arising under any Canadian Loan Document
(but excluding any obligations of any Domestic Loan Party under this Agreement,
other than in their capacities as Canadian Guarantors of the Canadian Obligations)
or otherwise with respect to any Canadian Revolving Loan or Canadian Letter of
Credit, whether direct or indirect (including those acquired by assumption),
absolute or contingent, due or to become due, now existing or hereafter arising
and including interest and fees that accrue after the commencement by or
against any Canadian Loan Party of any proceeding under any Debtor Relief Laws
naming such Person as the debtor in such proceeding, regardless of whether such
interest and fees are allowed claims in such proceeding. The foregoing shall
also include any Swap Contract between any Canadian Loan Party and any Canadian
Revolving Lender or Affiliate of a Canadian Revolving Lender and all
obligations under any Treasury Management Agreement between any Canadian Loan
Party and any Canadian Revolving Lender or an Affiliate of a Canadian Revolving
Lender.

 

“Canadian Pension Event”
means (a) a withdrawal by the Canadian Borrower or any Canadian Subsidiary from
a Canadian Multiemployer Plan, (b) the taking of any steps by the Canadian
Borrower, any Canadian Subsidiary or any Governmental Authority to terminate or

 

 

wind
up, in whole or in part, any Canadian Pension Plan, (c) an event or condition
which constitutes grounds for the termination or wind-up, in whole or in part,
of, or the appointment of a third party administrator by a Governmental
Authority of, any Canadian Pension Plan.

 

“Canadian Pension Plan”
means all pension and retirement plans relating to the current and former
employees of the Canadian Borrower or any Canadian Subsidiary, whether
registered or unregistered, funded or unfunded and written or oral.

 

“Canadian Plan” means
any employee benefit program relating to employees of the Canadian Borrower or
any Canadian Subsidiary, other than a Canadian Pension Plan, but including,
without limitation, profit sharing, deferred compensation, incentive severance,
change of control, phantom stock, stock option, stock purchase, bonus and
health or insurance plans and arrangements (in each case, oral or written).

 

“Canadian Pledge
Agreement” means the pledge agreement dated as of the date hereof executed
by the Canadian Loan Parties in favor of the Canadian Collateral Agent to
secure the Canadian Obligations.

 

“Canadian Prime Rate”
means the rate of interest in effect for such day as publicly announced from
time to time by the Canadian Administrative Agent as its “prime rate.”  Such “prime rate” is a rate set by the
Canadian Administrative Agent based upon various factors including the Canadian
Administrative Agent’s costs and desired return, general economic conditions
and other factors, and is used as a reference point for pricing some loans,
which may be priced at, above, or below such announced rate. Any change in such
“prime rate” announced by the Canadian Administrative Agent shall take effect
at the opening of business on the day specified in the public announcement of
such change.

 

“Canadian Revolving
Borrowing” means a borrowing consisting of simultaneous Canadian Revolving
Loans of the same Type and, in the case of Eurodollar Rate Loans, having the
same Interest Period made by each of the Canadian Revolving Lenders pursuant to
Section 2.01(a).

 

“Canadian Revolving
Commitment” means, as to each Canadian Revolving Lender, its obligation to
(a) make Canadian Revolving Loans to the Borrowers pursuant to Section 2.01
and (b) purchase participations in Canadian L/C Obligations, in an aggregate
principal amount at any one time outstanding not to exceed the amount set forth
opposite such Canadian Revolving Lender’s name on Schedule 2.01 or in
the Assignment and Assumption pursuant to which such Canadian Revolving Lender
becomes a party hereto, as applicable, as such amount may be adjusted from time
to time in accordance with this Agreement.

 

“Canadian Revolving
Lenders” means, at any time, any Lender (which together with its Related
U.S. Lender, if applicable) that has a Canadian Revolving Commitment. The
Canadian Revolving Lenders (including the name of any respective Related U.S.
Lender, if applicable of any such Canadian Revolving Lender) as of the Closing
Date are identified on Schedule 2.01.

 

“Canadian Revolving Loan”
has the meaning specified in Section 2.01(a)(ii). For the avoidance of
doubt, it is agreed that the term “Canadian Revolving Loan” includes Bankers’
Acceptance Advances.

 

“Canadian Revolving Notes”
has the meaning specified in Section 2.11(a).

 

 

“Canadian Secured Parties”
has the meaning specified in Section 10.01(d).

 

“Canadian Security
Agreement” means the security agreement dated as of the date hereof
executed by the Canadian Loan Parties in favor of the Canadian Collateral Agent
to secure the Canadian Obligations.

 

“Canadian Subsidiary”
means any Subsidiary that is organized under the laws of Canada or any province
thereof.

 

“Canadian Swing Line
Borrowing” means a borrowing of a Canadian Swing Line Loan pursuant to Section
2.04.

 

“Canadian Swing Line
Commitment” means, as to the Canadian Swing Line Lender, its obligation to
make Canadian Swing Line Loans to the Canadian Borrower pursuant to Section
2.04 in an aggregate principal amount at any one time outstanding not to
exceed US$20,000,000, as such amount may be reduced by the Canadian Borrower
pursuant to the terms hereof.

 

“Canadian Swing Line
Commitment Fee” has the meaning specified in Section 2.09(a)(iii).

 

“Canadian Swing Line
Lender” means The Bank of Nova Scotia, in its capacity as provider of
Canadian Swing Line Loans, or any successor Canadian Swing Line Lender
hereunder.

 

“Canadian Swing Line Loan”
has the meaning specified in Section 2.04(a).

 

“Canadian Swing Line Note”
has the meaning specified in Section 2.11(a).

 

“Canadian Tax Act”
means the Income Tax Act (Canada), as amended.

 

“Canadian Unfunded
Pension Liability” means the excess of a Canadian Pension Plan’s
liabilities over the current value of that Canadian Pension Plan’s assets,
determined on a solvency or wind-up basis in accordance with the most recent
actuarial report filed with the applicable Governmental Authority in respect of
that Canadian Pension Plan.

 

“Canadian Unreimbursed
Amount” has the meaning provided in Section 2.03(c)(i)(B).

 

“Capital Lease”
means, as applied to any Person, any lease of any Property by that Person as
lessee which, in accordance with GAAP, is required to be accounted for as a
capital lease on the balance sheet of that Person.

 

“Cash Collateralize”
means to pledge and deposit with or deliver to the applicable Collateral Agent,
for the benefit of the applicable L/C Issuers and the applicable Revolving
Lenders, as collateral for the applicable L/C Obligations, cash or deposit
account balances pursuant to documentation in form and substance satisfactory
to such Collateral Agent and such L/C Issuers (which documents are hereby
consented to by the Revolving Lenders). Derivatives of such term have corresponding
meanings.

 

“Cash Equivalents”
means, (a) direct obligations of, or obligations the principal and interest on
which are unconditionally guaranteed by, the United States of America (or by
any agency thereof to the extent such obligations are backed by the full faith
and credit of the United States of America), 

 

 

in
each case maturing within one year from the date of acquisition thereof; (b)
investments in commercial paper maturing within 90 days from the date of
acquisition thereof and having, at such date of acquisition, a rating of not
less than A-2 from S&P and P-2 for Moody’s (or the equivalent thereof); (c)
investments in certificate of deposit, banker’s acceptances and time deposits
maturing within 90 days from the date of acquisition thereof issued or
guaranteed by or placed with, and money market deposit accounts issued or
offered by, any domestic office of any Lender or any other commercial bank
organized under the laws of the United States of America or any state thereof
which has a combined capital and surplus and undivided profits of not less than
US$500,000,000; and (d) fully collateralized repurchase agreements with a term
of not more than 30 days for securities described in clause (a) above and
entered into with a financial institution satisfying the criteria described in
clause (c) above.

 

“CDOR Rate” means,

 

(a)           in the case of Canadian Revolving
Loans denominated in Canadian Dollars (other than Bankers’ Acceptance
Advances), for any day, the rate per annum (rounded upwards, if necessary, to
the nearest whole multiple of 1/100 of 1%) which is the arithmetic average of
the “BA 1 month” rates applicable to Canadian Dollar bankers’ acceptances
identified as such on the Reuters Screen CDOR Page at approximately 10:00 a.m.
on such day (as adjusted by the Canadian Administrative Agent after 10:00 a.m.
(Toronto time) to reflect any error in any posted rate or in the posted average
per annum rate). If such rate does not appear on the Reuters Screen CDOR Page
as contemplated above, then the CDOR Rate on any day shall be calculated as the
arithmetic average of the discount rates applicable to one month Canadian
Dollar bankers’ acceptances of, and as quoted by, any two of the Schedule I
Lenders, chosen by the Canadian Administrative Agent in its sole discretion, as
of 10:00 a.m. (Toronto time) on the day, or if the day is not a Business Day,
then on the immediately preceding Business Day. If less than two Schedule I
Lenders quote the aforementioned rate, the CDOR Rate shall be the rate quoted
by the Canadian Administrative Agent; and

 

(b)           in the case of Bankers’ Acceptance
Advances, for any day, the rate per annum rounded upwards, if necessary, to the
nearest whole multiple of 1/100 of 1%) which is the rate determined as being
the arithmetic average of the annual yield rates applicable to Canadian bankers’
acceptances having identical issue and comparable maturity dates as the Bankers’
Acceptances proposed to be issued by the Canadian Borrower displayed and
identified as such on the Reuters Screen CDOR Page at approximately 10:00 a.m.
on such day (as adjusted by the Canadian Administrative Agent after 10:00 a.m.
(Toronto time) to reflect any error in any posted rate or in the posted average
per annum rate), or if such day is not a Business Day, then on the immediately
preceding Business Day (as adjusted by the Canadian Administrative Agent after
10:00 a.m. (Toronto time) to reflect any error in any posted rate or in the
posted average per annual rate). If such rate does not appear on the Reuters
Screen CDOR Page as contemplated above, then the CDOR Rate on any day shall be
calculated as the arithmetic average of the discount rates having comparable
maturity dates as the Bankers’ Acceptances proposed of, and as quoted by, any
two of the Schedule I Lenders, chosen by the Canadian Administrative Agent in
its sole discretion, as of 10:00 a.m. (Toronto time) on the day, or if the day
is not a Business Day, then on the immediately preceding Business Day. If less
than two Schedule I Lenders quote the aforementioned rate, the CDOR Rate shall
be the rate quoted by the Canadian Administrative Agent.

 

“Change in Law” means
the occurrence, after the date of this Agreement, of any of the 

 

 

following:
(a) the adoption or taking effect of any law, rule, regulation or treaty,
(b) any change in any law, rule, regulation or treaty or in the
administration, interpretation or application thereof by any Governmental
Authority or (c) the making or issuance of any request, guideline or
directive (whether or not having the force of law) by any Governmental
Authority.

 

“Change of Control”
means an event or series of events by which:

 

(a)           any “person” or “group” (as such
terms are used in Sections 13(d) and 14(d) of the Securities Exchange Act
of 1934, but excluding any employee benefit plan of such person or its
subsidiaries, and any person or entity acting in its capacity as trustee, agent
or other fiduciary or administrator of any such plan) becomes the “beneficial
owner” (as defined in Rules 13d-3 and 13d-5 under the Securities Exchange Act
of 1934, except that a person or group shall be deemed to have “beneficial
ownership” of all securities that such person or group has the right to acquire
(such right, an “option right”), whether such right is exercisable
immediately or only after the passage of time), directly or indirectly, of 30%
of the Equity Interests of GGC entitled to vote for members of the board of
directors or equivalent governing body of GGC on a fully-diluted basis (and
taking into account all such securities that such person or group has the right
to acquire pursuant to any option right);

 

(b)           during any period of 12 consecutive
months, a majority of the members of the board of directors or other equivalent
governing body of GGC cease to be composed of individuals (i) who were
members of that board or equivalent governing body on the first day of such
period, (ii) whose election or nomination to that board or equivalent
governing body was approved by individuals referred to in clause (i) above
constituting at the time of such election or nomination at least a majority of
that board or equivalent governing body or (iii) whose election or
nomination to that board or other equivalent governing body was approved by
individuals referred to in clauses (i) and (ii) above constituting at
the time of such election or nomination at least a majority of that board or
equivalent governing body (excluding, in the case of both clause (ii) and
clause (iii), any individual whose initial nomination for, or assumption
of office as, a member of that board or equivalent governing body occurs as a
result of an actual or threatened solicitation of proxies or consents for the
election or removal of one or more directors by any person or group other than
a solicitation for the election of one or more directors by or on behalf of the
board of directors);

 

(c)           the occurrence of a “Change of
Control” (or any comparable term) under, and as defined in, the 2006 Senior
Subordinated Notes Documents; or

 

(d)           the occurrence of a “Change of
Control” (or any comparable term) under, and as defined in, the 2006 Senior
Notes Documents.

 

“Closing Date” means
October 3, 2006.

 

“Code” means the
Internal Revenue Code of 1986.

 

“Collateral” means a
collective reference to the collateral which is identified in, and at any time
will be covered by, the Collateral Documents.

 

“Collateral Agent”
means the Domestic Collateral Agent and/or the Canadian Collateral Agent, as
appropriate.

 

 

“Collateral Assignment
Documents” means the collective reference to all the collateral assignment
documents executed by GGC in favor of the Domestic Collateral Agent.

 

“Collateral
Documents” means a collective reference to the Canadian Collateral
Documents and the Domestic Collateral Documents.

 

“Commitments”
means the Domestic Revolving Commitments, the Canadian Revolving Commitments,
the Canadian Swing Line Commitment and the Term Loan Commitments.

 

“Commitment
Fees” means the collective reference to the Domestic Commitment Fee and the
Canadian Commitment Fee.

 

“Compliance Certificate”
means a certificate substantially in the form of Exhibit C.

 

“Consolidated Adjusted
Leverage Ratio” means, as of any date of determination, the ratio of (a)
the sum of Consolidated Funded Indebtedness as of such date minus the
Attributable Indebtedness of Securitization Transactions to (b) Consolidated EBITDA for the
period of the four fiscal quarters most recently ended.

 

“Consolidated Capital
Expenditures” means, for any period, for GGC and its Subsidiaries on a
consolidated basis, all capital expenditures, as determined in accordance with
GAAP; provided, however, that Consolidated Capital Expenditures
shall not include (a) expenditures made with proceeds of any Involuntary
Disposition to the extent such expenditures are used to purchase property that
is the same as or similar to the property subject to such Involuntary
Disposition or (b) Permitted Acquisitions.

 

“Consolidated Cash
Interest Charges” means, for any period, for GGC and its Subsidiaries on a
consolidated basis, the excess of (a) the sum of (i) the interest expense
(including imputed interest expense under Capital Leases) for such period, in
accordance with GAAP, plus (ii) the implied interest component of
Synthetic Leases with respect to such period, plus (iii) any interest
accrued during such period in respect of Indebtedness that is required to be
capitalized rather than included in consolidated interest expense for such
period in accordance with GAAP, plus (iv) any cash payments (other than
fees and expenses paid in connection with the closing under this Agreement and
any premiums paid in connection with the redemption of the Series D Notes and
Medium Term Notes) made during such period in respect of obligations referred
to in clause (b)(ii) below that were amortized or accrued in a previous period,
minus (b) the sum of (i) to the extent included in such consolidated interest
expense for such period, noncash amounts attributable to amortization of
financing costs paid in a previous period, plus (ii) to the extent included in
such consolidated interest expense for such period, noncash amounts
attributable to amortization of debt discounts or accrued interest payable in
kind for such period. For purposes of this definition, “interest” shall include
yield, discount or other similar financing costs pursuant to any Securitization
Transaction. Notwithstanding the foregoing, for purposes of calculating the
Consolidated Interest Coverage Ratio (a) as of the fiscal quarter ending
December 31, 2006, Consolidated Cash Interest Charges for the four fiscal quarter
period ending December 31, 2006 shall be calculated as Consolidated Cash
Interest Charges for the fiscal quarter period ending December 31, 2006
multiplied by four, (b) as of the fiscal quarter ending March 31, 2007,
Consolidated Cash Interest Charges for the four fiscal quarter period ending
March 31, 2007 shall be calculated as Consolidated Cash Interest Charges for
the two fiscal quarter period ending March 31, 2007 multiplied by two and (c)
as of the fiscal quarter period ending June 30, 2007, Consolidated Cash
Interest Charges for the four fiscal quarter period ending June 30, 2007 shall
be calculated as 

 

 

Consolidated
Cash Interest Charges for the three fiscal quarter period ending June 30, 2007
multiplied by 4/3.

 

“Consolidated EBITDA”
means, for any period, for GGC and its Subsidiaries on a consolidated basis,
the sum of (a) Consolidated Net Income for such period, plus (b) to the
extent deducted in determining such Consolidated Net Income for such period,
the aggregate amount of (i) interest expense, (ii) income tax expense, (iii)
depreciation and amortization (including without limitation amortization of
debt issuance costs) and (iv) non-cash charges which do not represent a cash
item in such period or any future period. For purposes of this definition, “interest”
shall include yield, discount or other similar financing costs pursuant to any
Securitization Transaction; provided that Consolidated EBITDA for the
fiscal quarter periods ending March 31, 2006 and June 30, 2006 shall be deemed
to equal the amounts set forth on Schedule 1.01(a) opposite each such
fiscal quarter period.

 

“Consolidated Funded
Indebtedness” means Funded Indebtedness of GGC and its Subsidiaries on a
consolidated basis determined in accordance with GAAP.

 

“Consolidated Interest
Coverage Ratio” means, as of any date of determination, the ratio of
(a) Consolidated EBITDA for the period of the four prior fiscal quarters
ending on such date to (b) Consolidated Cash Interest Charges for such period,
each as determined on a consolidated basis in accordance with GAAP.

 

“Consolidated Leverage
Ratio” means, as of any date of determination, the ratio of (a)
Consolidated Funded Indebtedness as of such date to (b) Consolidated EBITDA for the period of the four
fiscal quarters most recently ended.

 

“Consolidated Net Income”
means, for any period, for GGC and its Subsidiaries on a consolidated basis,
the net income of GGC and its Subsidiaries for that period (exclusive of (x)
the effect of (1) any extraordinary gain, (2) any extraordinary non-cash loss,
(3) for any fiscal quarter period ending prior to the Closing Date, any
extraordinary loss paid in cash during such period and (4) for fiscal quarters
ending September 30, 2006 and December 31, 2006, any extraordinary loss
(computed using the same types of adjustments that were made to compute
Consolidated EBITDA for the fiscal quarters ending March 31, 2006 and June 30,
2006 pursuant to the proviso in the definition of Consolidated EBITDA) during
such period, each in accordance with GAAP and (y) the income of any Person
(other than GGC) in which any other Person (other than GGC or any Subsidiary or
any director holding qualifying shares in compliance with applicable law) owns
an Equity Interest, except to the extent of the amount of dividends or other
distributions actually paid to GGC or any Subsidiary during such period),
determined on a consolidated basis in accordance with GAAP for such period.

 

“Consolidated Net Worth”
means, as of any date of determination, consolidated shareholders’ equity of
GGC and its Subsidiaries as of that date determined in accordance with GAAP.

 

“Contractual Obligation”
means, as to any Person, any provision of any security issued by such Person or
of any agreement, instrument or other undertaking to which such Person is a
party or by which it or any of its property is bound.

 

“Control” means the
possession, directly or indirectly, of the power to direct or cause the
direction of the management or policies of a Person, whether through the
ability to exercise voting power, by contract or otherwise. “Controlling”
and “Controlled” have meanings 

 

 

correlative
thereto.

 

“Credit Extension”
means each of the following: (a) a Borrowing and (b) an L/C Credit
Extension.

 

“Custodian” has the
meaning set forth in Section 10.01(d).

 

“Debt Issuance” means
the issuance by GGC or any Subsidiary of any Indebtedness other than any
Indebtedness permitted under Section 8.03.

 

“Debtor Relief Laws”
means the Bankruptcy Code of the United States, the Bankruptcy and Insolvency
Act (Canada), the Companies’ Creditors Arrangement Act (Canada) and all other
liquidation, conservatorship, bankruptcy, assignment for the benefit of
creditors, moratorium, rearrangement, receivership, insolvency, reorganization,
or similar debtor relief Laws of the United States or other applicable
jurisdictions from time to time in effect and affecting the rights of creditors
generally.

 

“Deed of Hypothec”
means any deed of hypothec governed by Quebec law and granted by any Canadian
Loan Party to the Fonde de pouvoir to secure the Canadian Obligations.

 

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

 

“Default Rate” means
(a) when used with respect to Obligations other than Letter of Credit
fees, an interest rate equal to (i) the Base Rate plus
(ii) the Applicable Rate, if any, applicable to Base Rate Loans plus
(iii) 2% per annum; provided, however, that with respect to
a Eurodollar Rate Loan, the Default Rate shall be an interest rate equal to the
interest rate (including any Applicable Rate) otherwise applicable to such Loan
plus 2% per annum, in each case to the fullest extent permitted by applicable
Laws and (b) when used with respect to Letter of Credit fees, a rate equal
to the Applicable Rate plus 2% per annum.

 

“Defaulting Lender”
means any Lender that (a) has failed to fund any portion of the Loans or
participations in L/C Obligations required to be funded by it hereunder within
one Business Day of the date required to be funded by it hereunder unless such
failure has been cured, (b) has otherwise failed to pay over to each
Administrative Agent or any other Lender any other amount required to be paid
by it hereunder within one Business Day of the date when due, unless the
subject of a good faith dispute or unless such failure has been cured, or
(c)  has been deemed insolvent or become the subject of a bankruptcy or
insolvency proceeding.

 

“Disposition” or “Dispose”
means the sale, transfer, license, lease or other disposition (including any
Sale and Leaseback Transaction) of any property by GGC or any Subsidiary
(including the Equity Interests of any Subsidiary), including any sale,
assignment, transfer or other disposal, with or without recourse, of any notes
or accounts receivable or any rights and claims associated therewith, but
excluding (a) the sale, lease, license, transfer or other disposition of
inventory in the ordinary course of business; (b)  the sale, lease, license,
transfer or other disposition in the ordinary course of business of surplus,
obsolete or worn out property no longer used or useful in the conduct of
business of GGC and its Subsidiaries; (c) any Involuntary Disposition; (d) any
license, sublicense, lease or sublease granted to others not interfering in any
material respect with the business of GGC and its Subsidiaries; (e) any sale,
lease, license, transfer or other disposition from one Domestic Loan Party to
another Domestic Loan Party; (f) any sale, lease, license, transfer or other
disposition from one Canadian Loan Party to another 

 

 

Canadian
Loan Party, (g) the transfer by the Canadian Borrower of RPU and its Domestic
Subsidiaries to GGC, (h) the transfer by the Canadian Borrower of the assets of
its RoyalGuard division to GGC or any other Domestic Loan Party, (i) any
transfer by any Canadian Loan Party to GGC or any other Domestic Loan Party of
any Foreign Subsidiary that is not a Canadian Subsidiary, (j) the transfer by
the Canadian Borrower of 6632149 Canada Inc. to GGC or any other Domestic Loan
Party so long as 6632149 Canada Inc. remains a Canadian Loan Party after giving
effect to such transfer and (k) the transfer by Rome of the Canadian Borrower to
a newly created wholly-owned subsidiary of Rome (“Newco”); provided that
(i) Newco is a Canadian Loan Party, (ii) on the date of such transfer Newco and
the Canadian Borrower are amalgamated and (iii) the Canadian Borrower is a
surviving corporation of such amalgamation. The term “Disposition” shall
not include any Equity Issuance.

 

“Disposition and
Dissolution Letter” means that certain letter agreement dated as of the
Closing Date between the Borrowers and the Administrative Agents in which the
Borrowers describe the Subsidiaries and assets which they intend to sell and
the Subsidiaries and Investments they intend to dissolve.

 

“Domestic Administrative
Agent” means Bank of America in its capacity as domestic administrative
agent under any of the Loan Documents, or any successor domestic administrative
agent.

 

“Domestic Administrative
Agent’s Office” means the Domestic Administrative Agent’s address and, as
appropriate, account as set forth on Schedule 11.02, or such other
address or account as the Domestic Administrative Agent may from time to time
notify to GGC and the Lenders.

 

“Domestic Availability
Period” means, the period from and including the Closing Date to the
earliest of (a) the Revolving Loan Maturity Date, (b) the date of
termination of the Aggregate Domestic Revolving Commitments as provided herein,
and (c) the date of termination of the commitment of each Domestic Lender
to make Domestic Revolving Loans and of the obligation of each Domestic L/C
Issuer to make Domestic L/C Credit Extensions as provided herein.

 

“Domestic Collateral”
means a collective reference to the collateral which is identified in, and at
any time will be covered by, the Domestic Collateral Documents.

 

“Domestic Collateral
Agent” means Bank of America in its capacity as domestic collateral agent
under any of the Loan Documents, or any successor domestic collateral agent.

 

“Domestic Collateral
Documents” means a collective reference to the Domestic Security Agreement,
Domestic Pledge Agreement, the Domestic Mortgages, the Collateral Assignment
Documents and such other documents executed and delivered in connection with
the attachment and perfection of the security interests granted to secure the
Obligations.

 

“Domestic Commitment Fee”
has the meaning set forth in Section 2.09(a)(i).

 

“Domestic fondé de pouvoir” has the meaning set forth in Section
10.01(d)(ii).

 

“Domestic Guarantors”
means each Person identified as a “Domestic Guarantor” on the signature pages
hereto and each other Person that joins as a Domestic Guarantor pursuant to Section
7.12, together with their successors and permitted assigns.

 

 

“Domestic Honor Date”
has the meaning specified in Section 2.03(c)(i).

 

“Domestic Issuer
Documents” means the Domestic Letter of Credit Application, and any other
document, agreement and instrument entered into by the applicable Domestic L/C
Issuer and GGC or in favor the applicable Domestic L/C Issuer and relating to
any such Domestic Letter of Credit.

 

“Domestic L/C Advance”
means, with respect to each Domestic Revolving Lender, such Domestic Revolving
Lender’s funding of its participation in any Domestic L/C Borrowing in
accordance with its Applicable Percentage. All Domestic L/C Advances shall be
denominated in U.S. Dollars.

 

“Domestic L/C Borrowing”
means an extension of credit resulting from a drawing under any Domestic Letter
of Credit which has not been reimbursed on the date when made or refinanced as
a Domestic Revolving Borrowing.

 

“Domestic L/C Credit
Extension” means, with respect to any Domestic Letter of Credit, the
issuance thereof or extension of the expiry date thereof, or the increase of the
amount thereof.

 

“Domestic L/C Issuer”
means (a) with respect to the Existing Domestic Letters of Credit set forth in
Part A of Schedule 1.01(c), JPMorgan Chase Bank and with respect to the
Existing Domestic Letters of Credit set forth in Part B of Schedule 1.01(c),
Wachovia Bank, National Association and (b) with respect to all other Domestic
Letters of Credit, Bank of America and one other Domestic Revolving Lender who
has been selected by GGC and who has agreed to act as a Domestic L/C Issuer
hereunder in accordance with the terms hereof, or any successor issuer of
Domestic Letters of Credit hereunder.

 

“Domestic L/C Obligations”
means, as at any date of determination, the aggregate amount available to be
drawn under all outstanding Domestic Letters of Credit plus the
aggregate of all Domestic Unreimbursed Amounts, including all Domestic L/C
Borrowings. For purposes of computing the amount available to be drawn under
any Domestic Letter of Credit, the amount of such Domestic Letter of Credit
shall be determined in accordance with Section 1.07. For all
purposes of this Agreement, if on any date of determination a Domestic Letter
of Credit has expired by its terms but any amount may still be drawn thereunder
by reason of the operation of Rule 3.14 of the ISP, such Domestic Letter
of Credit shall be deemed to be “outstanding” in the amount so remaining
available to be drawn.

 

“Domestic Lender”
means the Domestic Revolving Lenders and the Term Loan Lenders, collectively or
individually, as appropriate.

 

“Domestic Letter of
Credit” means (a) any letter of credit issued hereunder by the applicable
Domestic L/C Issuer and (b) the Existing Domestic Letters of Credit. Domestic
Letters of Credit may be issued in U.S. Dollars or Canadian Dollars. A Domestic
Letter of Credit may be a standby letter of credit or a commercial letter of
credit.

 

“Domestic Letter of
Credit Application” means an application and agreement for the issuance or
amendment of a Domestic Letter of Credit in the form from time to time in use
by the applicable Domestic L/C Issuer.

 

“Domestic Letter of
Credit Sublimit” means an amount equal to the sum of (a) US$125,000,000,
less (b) the aggregate stated amount of all outstanding Canadian Letters of 

 

 

Credit
on the date of determination. The Domestic Letter of Credit Sublimit is part
of, and not in addition to, the Aggregate Domestic Revolving Commitments.

 

“Domestic Loan Parties”
means, the collective reference to GGC and each Domestic Guarantor, and “Domestic
Loan Party” means any one of them.

 

“Domestic Mortgages”
means the mortgages, deeds of trust, deeds to secure debt or like instruments
given by the Domestic Loan Parties to the Domestic Collateral Agent to secure
the Obligations, as such instruments may be amended or modified from time to
time.

 

“Domestic Pledge
Agreement” means the Domestic Pledge Agreement dated as of the date hereof executed by each of the Domestic Loan
Parties party thereto in favor of the Domestic Collateral Agent to secure the
Obligations.

 

“Domestic Prime Rate”
means the rate of interest in effect for such day as publicly announced from
time to time by the Domestic Administrative Agent as its “prime rate.”  Such “prime rate” is a rate set by the
Domestic Administrative Agent based upon various factors including the Domestic
Administrative Agent’s costs and desired return, general economic conditions
and other factors, and is used as a reference point for pricing some loans,
which may be priced at, above, or below such announced rate. Any change in such
“prime rate” announced by the Domestic Administrative Agent shall take effect
at the opening of business on the day specified in the public announcement of
such change.

 

“Domestic Revolving
Borrowing” means a borrowing consisting of simultaneous Domestic Revolving
Loans of the same Type and, in the case of Eurodollar Rate Loans, having the
same Interest Period made by each of the Domestic Revolving Lenders pursuant to
Section 2.01(a).

 

“Domestic Revolving
Commitment” means, as to each Domestic Revolving Lender, its obligation to
(a) make Domestic Revolving Loans to GGC pursuant to Section 2.01, and
(b) purchase participations in Domestic L/C Obligations, in an aggregate
principal amount at any one time outstanding not to exceed the amount set forth
opposite such Domestic Revolving Lender’s name on Schedule 2.01 or in
the Assignment and Assumption pursuant to which such Domestic Revolving Lender
becomes a party hereto, as applicable, as such amount may be adjusted from time
to time in accordance with this Agreement.

 

“Domestic Revolving
Lender” means, at any time, any Lender that has a Domestic Revolving
Commitment at such time.

 

“Domestic Revolving Loan”
has the meaning specified in Section 2.01(a)(i).

 

“Domestic Revolving Note”
has the meaning specified in Section 2.11(a).

 

“Domestic Secured Parties” has the meaning specific in Section
10.01(d)(ii).

 

“Domestic Security
Agreement” means the Domestic Security Agreement dated as of the date
hereof executed by the Domestic Loan Parties in favor of the Domestic
Collateral Agent to secure the Obligations.

 

“Domestic Subsidiary”
means any Subsidiary that is organized under the laws of any political
subdivision of the United States.

 

 

“Domestic Unreimbursed
Amount” has the meaning provided in Section 2.03(c)(i)(A).

 

“Eligible Assignee” means
any Person that meets the requirements to be an assignee under Section
11.06(b)(iii), (vi) and (vii) (subject to such consents, if any, as may be
required under Section 11.06(b)(iii)); provided, however, that an
Eligible Assignee shall include only a Lender, an Affiliate of a Lender or
another Person, which, through its Lending Offices, is capable of lending
applicable Alternative Currencies to the relevant Borrowers without the
imposition of any additional Indemnified Taxes.

 

“EMU Legislation”
means the legislative measures of the European Council for the introduction of,
changeover to or operation of a single or unified European currency.

 

“Environmental Laws”
means any and all Federal, state, local, foreign and other applicable statutes,
laws, regulations, ordinances, rules, judgments, orders, decrees, permits,
licenses, agreements or governmental restrictions relating to pollution and the
protection of the environment or the release of any materials into the
environment, including those related to hazardous substances or wastes, air
emissions and discharges to waste or public systems.

 

“Environmental Liability”
means any liability, contingent or otherwise (including any liability for
damages, costs of environmental remediation, fines, penalties or indemnities),
of GGC, any other Loan Party or any of their respective Subsidiaries directly
or indirectly resulting from or based upon (a) violation of any
Environmental Law, (b) the generation, use, handling, transportation,
storage, treatment or disposal of any Hazardous Materials, (c) exposure to
any Hazardous Materials, (d) the release or threatened release of any
Hazardous Materials into the environment or (e) any contract, agreement or
other consensual arrangement pursuant to which liability is assumed or imposed
with respect to any of the foregoing.

 

“Equity Interests”
means, with respect to any Person, all of the shares of capital stock of (or
other ownership or profit interests in) such Person, all of the warrants,
options or other rights for the purchase or acquisition from such Person of
shares of capital stock of (or other ownership or profit interests in) such
Person, all of the securities convertible into or exchangeable for shares of
capital stock of (or other ownership or profit interests in) such Person or
warrants, rights or options for the purchase or acquisition from such Person of
such shares (or such other interests), and all of the other ownership or profit
interests in such Person (including partnership, member or trust interests
therein), whether voting or nonvoting, and whether or not such shares,
warrants, options, rights or other interests are outstanding on any date of
determination.

 

“Equity Issuance”
means any issuance by any Borrower or any Subsidiary to any Person of its
Equity Interests, other than (a) any issuance of its Equity Interests pursuant
to the exercise of options or warrants, (b) any issuance of its Equity
Interests pursuant to the conversion of any debt securities to equity or the
conversion of any class equity securities to any other class of equity
securities, (c) any issuance of options or warrants relating to its Equity
Interests, (d) any issuance by GGC of its Equity Interests as consideration for
a Permitted Acquisition and (e) any issuance by GGC of its Equity Interests
pursuant to any employee stock ownership plan. The term “Equity Issuance” shall
not be deemed to include any Disposition.

 

“ERISA” means the
Employee Retirement Income Security Act of 1974.

 

“ERISA Affiliate”
means any trade or business (whether or not incorporated) under common control
with GGC within the meaning of Section 414(b) or (c) of the Code (and 

 

 

Sections 414(m)
and (o) of the Code for purposes of provisions relating to
Section 412 of the Code), excluding any such trade or business that is
organized under the laws of a jurisdiction outside the United States.

 

“ERISA Event” means
(a) a Reportable Event with respect to a U.S. Pension Plan; (b) a
withdrawal by GGC or any ERISA Affiliate from a U.S. Pension Plan subject to
Section 4063 of ERISA during a plan year in which it was a substantial
employer (as defined in Section 4001(a)(2) of ERISA) or a cessation of
operations that is treated as such a withdrawal under Section 4062(e) of
ERISA; (c) a complete or partial withdrawal by GGC or any ERISA Affiliate
from a U.S. Multiemployer Plan or notification that a U.S. Multiemployer Plan
is in reorganization; (d) the filing of a notice of intent to terminate,
the treatment of a U.S. Plan amendment as a termination under Section 4041
or Section 4041A of ERISA, or the commencement of proceedings by the PBGC to
terminate a U.S. Pension Plan or U.S. Multiemployer Plan; (e)  an event or
condition which constitutes grounds under Section 4042 of ERISA for the
termination of, or the appointment of a trustee to administer, any U.S. Pension
Plan or U.S. Multiemployer Plan; or (f) the imposition of any liability
under Title IV of ERISA, other than for PBGC premiums due but not
delinquent under Section 4007 of ERISA, upon GGC or any ERISA Affiliate.

 

“Euro” and “EUR”
mean the lawful currency of the Participating Member States introduced in
accordance with the EMU Legislation.

 

“Eurodollar Rate”
means, for any Interest Period with respect to a Eurodollar Rate Loan, the rate
per annum equal to the British Bankers Association LIBOR Rate (“BBA LIBOR”),
as published by Reuters (or other commercially available source providing
quotations of BBA LIBOR as designated by from time to time by the applicable
Administrative Agent) at approximately 11:00 a.m., London time, two Business
Days prior to the commencement of such Interest Period, for deposits in the
relevant currency (for delivery on the first day of such Interest Period) with
a term equivalent to such Interest Period. If such rate is not available at
such time for any reason, then the “Eurodollar Rate” for such Interest Period
shall be the rate per annum determined by the Administrative Agent to be the
rate at which deposits in the relevant currency for delivery on the first day
of such Interest Period in same day funds in the approximate amount of the
Eurodollar Rate Loan being made, continued or converted by Bank of America and
with a term equivalent to such Interest Period would be offered by Bank of
America’s London Branch (or other Bank of America branch or Affiliate) to major
banks in the London or other offshore market for such currency at their request
at approximately 11:00 a.m. (London time) two Business Days prior to the
commencement of such Interest Period.

 

“Eurodollar Rate Loan”
means a Loan that bears interest at a rate based on the Eurodollar Rate. Eurodollar
Rate Loans may be denominated in U.S. Dollars or in Canadian Dollars.

 

“Event of Default”
has the meaning specified in Section 9.01.

 

“Excess Cash Flow”
means, for any period for GGC and its Subsidiaries, an amount equal to the sum
of (a) Consolidated EBITDA minus (b) Consolidated Capital Expenditures
paid in cash minus (c) Consolidated Cash Interest Charges minus
(d) Federal, state and other taxes to the extent paid in cash during such
period by GGC and its Subsidiaries on a consolidated basis minus (e)
payments made pursuant to Section 8.06(d) or (e)  minus (f)
required payments in connection with a Securitization Transaction permitted by Section
8.03(i) due to requirements for maintaining a particular level of eligible
receivables, in each case on a consolidated basis determined in accordance with
GAAP.

 

 

“Excluded Canadian
Property” means, with respect to any Canadian Loan Party, including any
Person that becomes a Canadian Loan Party after the Closing Date as
contemplated by Section 7.12, (a) any owned or leased real or personal
property which is located outside of Canada unless requested by the Canadian
Administrative Agent or the Required Canadian Lenders, (b) any personal
property (including, without limitation, motor vehicles) in respect of which
perfection of a Lien is not either (i) governed by the Personal Property
Security Act (or similar legislation) or (ii) effected by appropriate evidence
of the Lien being filed in the Canadian Intellectual Property Office, unless
requested by the Canadian Administrative Agent or the Required Canadian
Lenders, (c) any property which, subject to the terms of Section 8.09,
is subject to a Lien of the type described in Section 8.01(i) pursuant
to documents which prohibit such Canadian Loan Party from granting any other
Liens in such property, (d) any accounts receivable and Related Property (as
defined in the Canadian Security Agreement) which have been transferred or
otherwise assigned to a SPV pursuant to a Securitization Transaction permitted
by Section 8.02(e), (e) any promissory note evidencing an Investment in
a SPV permitted by Section 8.02(e) and any Equity Interests of any SPV
issued in accordance with Section 8.02(e), (f) any leasehold interest of
any Canadian Loan Party in any office space or warehouse space, (g) that
certain real property of the Canadian Borrower located at Part Lot
12, Concession 3, Part 2 of Plan 13R7251 in Kingston Township, Ontario, (h)
that certain real property of the Canadian Borrower located at 1825 Boul.
Lionel Bertrand, Boisbriand, Quebec, provided such property has been
sold by the Canadian Borrower within 180 days of the Closing Date, (i) that
certain real property of the Canadian Borrower located at 90 Hutchings Street,
Winnipeg, Manitoba, provided such property has been sold by the Canadian
Borrower within 180 days of the Closing Date, and (j) the Equity Interests of
the Canadian Borrower in those certain Canadian Subsidiaries identified in the
Disposition and Dissolution Letter, provided that such Canadian
Subsidiaries are dissolved on or before June 30, 2007 and (k) any real property
of any Canadian Loan Party (together with all buildings, structures and
improvements thereon) that has a fair market value of less than $500,000; provided
that the aggregate real properties (together with all buildings, structures and
improvements thereon) not pledged to the Canadian Collateral Agent due to this
clause (k) together with the aggregate real properties (together with all
buildings, structures and improvements thereon) not pledged to the Domestic
Collateral Agent due to clause (k) of the definition of “Excluded Domestic
Property”) shall not exceed $10,000,000 in the aggregate.

 

“Excluded Domestic
Property” means, with respect to any Domestic Loan Party, including any
Person that becomes a Domestic Loan Party after the Closing Date as
contemplated by Section 7.12, (a) any owned or leased real or personal
property which is located outside of the United States unless requested by the Domestic
Administrative Agent or the Required Domestic Lenders, (b) any personal
property (including, without limitation, motor vehicles) in respect of which
perfection of a Lien is not either (i) governed by the Uniform Commercial Code
or (ii) effected by appropriate evidence of the Lien being filed in either the
United States Copyright Office or the United States Patent and Trademark
Office, unless requested by the Domestic Administrative Agent or the Required
Domestic Lenders, (c) any property which, subject to the terms of Section
8.09, is subject to a Lien of the type described in Section 8.01(i)
pursuant to documents which prohibit such Domestic Loan Party from granting any
other Liens in such property, (d) any accounts receivable and Related Property (as
defined in the Domestic Security Agreement) which have been transferred or
otherwise assigned to a SPV pursuant to a Securitization Transaction permitted
by Section 8.02(e), (e) any promissory note evidencing an Investment in
a SPV permitted by Section 8.02(e) and any Equity Interests of any SPV
issued in accordance with Section 8.02(e), (f) the real property of
Vinyls located in Gallman, Mississippi and all fixtures and tangible personal
property (other than inventory) located on or affixed to such real property
(collectively, the “Gallman Property”) so long as the Indebtedness
secured by the Gallman 

 

 

Property
remains outstanding, (f) any leasehold interest of any Domestic Loan Party in
any office space or warehouse space, (g) that certain real property of GGC
located at 10 Normandy Drive in Piscataway Township, New Jersey, (h) the
Praxair Collateral, provided that if the indebtedness owing to Praxair,
Inc. and secured by the Praxair Collateral is repaid, the Praxair Collateral
shall be promptly pledged to the Domestic Collateral Agent in accordance with Section
7.14, (i) that certain real property located at 11711 W. Sample Road, Coral
Springs, Florida, provided that each such
property has been sold by the applicable Domestic Loan Party on or before December
31, 2006, (j) that certain real
property (other than the real property identified in clause (i) above) of any
Domestic Loan Party identified in the Disposition and Dissolution Letter, provided that each
such property has been sold by such Domestic Loan Party within 180 days of the
Closing Date and (k) any real property of any Domestic Loan Party (together
with all buildings, structures and improvements thereon) that has a fair market
value of less than $500,000; provided that the aggregate real properties
(together with all buildings, structures and improvements thereon) not pledged
to the Domestic Collateral Agent due to this clause (k) together with the
aggregate real properties (together with all buildings, structures and
improvements thereon) not pledged to the Canadian Collateral Agent due to
clause (k) of the definition of “Excluded Canadian Property”) shall not
exceed $10,000,000 in the aggregate.

 

“Excluded Taxes”
means, with respect to either Administrative Agent, any Lender, any L/C Issuer,
the Canadian Swing Line Lender or any other recipient of any payment to be made
by or on account of any obligation of a Borrower hereunder, (a) taxes
imposed on or measured by its overall net income (however denominated) or
capital pursuant to the Canadian Tax Act and corresponding provincial
legislation, and franchise taxes imposed on it (in lieu of net income taxes),
by the jurisdiction (or any political subdivision thereof) under the laws of
which such recipient is organized or a resident or in which its principal
office is located or, in the case of any Lender, in which its applicable
Lending Office is located, (b) (i) in the case of GGC, any branch profits
taxes imposed by the United States or any similar tax imposed by any other
jurisdiction in which GGC is located and (ii) in the case of the Canadian
Borrower, any branch profits taxes imposed by Canada or any province thereof or
any similar tax imposed by any other jurisdiction in which the Canadian
Borrower is located, (c) except as provided in the following sentence, in
the case of a Foreign Lender (other than an assignee pursuant to a request by a
Borrower under Section 11.13), any withholding tax that is imposed on
amounts payable to such Foreign Lender at the time such Foreign Lender becomes
a party hereto (or designates a new Lending Office) or is attributable to such
Foreign Lender’s failure or inability (other than as a result of a Change in
Law) to comply with Section 3.01(e), except to the extent that such
Foreign Lender (or its assignor, if any) was entitled, at the time of
designation of a new Lending Office (or assignment), to receive additional
amounts from any Borrower with respect to such withholding tax pursuant to Section 3.01(a)
and (d) except as provided in the following sentence, any withholding tax that
is imposed on amounts payable to a Canadian Revolving Lender that becomes a
Foreign Lender after the time such Canadian Revolving Lender becomes a party
hereto, but only to the extent such Canadian Revolving Lender becomes a Foreign
Lender other than as a result of a Change in Law and only to the extent that
such withholding tax results from such Canadian Revolving Lender becoming a
Foreign Lender. Notwithstanding anything to the contrary contained in this
definition, “Excluded Taxes” shall not include any withholding tax imposed at
any time on payments made after the CAM Exchange Date.

 

“Existing Canadian
Letters of Credit” means those letters of credit identified on Schedule
1.01(b).

 

“Existing Credit
Agreements” means (a) that certain Amended and Restated Credit Agreement
dated as of November 23, 2004 among GGC, certain subsidiaries of GGC party 

 

 

thereto,
the lenders party thereto and JPMorgan Chase Bank, N.A., as administrative
agent and (b) that certain Revolving Credit Facility dated March 24, 2005 among
the Canadian Borrower, certain subsidiaries of the Canadian Borrower party
thereto and the lenders party thereto.

 

“Existing Domestic
Letters of Credit” means those letters of credit identified on Schedule
1.01(c).

 

“Exposure” means,
with respect to any Lender, the sum at such time, without duplication, of (a)
such Lender’s Applicable Percentage of the Outstanding Amount of the Aggregate
Domestic Revolving Commitment (including any participation interests in
Domestic Letters of Credit) plus (b) such Lender’s Applicable Percentage
of the Term Loan plus (c) such Lender’s Applicable Percentage of the
Outstanding Amount of the Aggregate Canadian Revolving Commitment (including
any participation interests in Canadian Letters of Credit) plus (d) such
Lender’s pro rata share of the Outstanding Amount of Canadian Swing Line
Commitment.

 

“Face Amount” means
the amount payable to the holder of a Bankers’ Acceptance on the maturity
thereof.

 

“Facilities” means,
at any time, a collective reference to the facilities and real properties
owned, leased or operated by any Loan Party or any Subsidiary.

 

“Federal Funds Rate”
means, for any day, the rate per annum equal to the weighted average of the
rates on overnight Federal funds transactions with members of the Federal
Reserve System arranged by Federal funds brokers on such day, as published by
the Federal Reserve Bank of New York on the Business Day next succeeding such
day; provided that (a) if such day is not a Business Day, the
Federal Funds Rate for such day shall be such rate on such transactions on the
next preceding Business Day as so published on the next succeeding Business
Day, and (b) if no such rate is so published on such next succeeding
Business Day, the Federal Funds Rate for such day shall be the average rate
(rounded upward, if necessary, to a whole multiple of 1/100 of 1%) charged to
Bank of America on such day on such transactions as determined by the Domestic
Administrative Agent.

 

“First-Tier Foreign
Subsidiary” means each Foreign Subsidiary that is owned directly by GGC or
a Domestic Subsidiary.

 

“Fonde de pouvoir”
has the meaning set forth in Section 10.01(d).

 

“Foreign Lender”
means (a) with respect to GGC, any Lender that is organized under the laws of a
jurisdiction other than that in which GGC is resident for tax purposes and (b)
with respect to the Canadian Borrower, any Lender that is a non-resident of
Canada for purposes of the Canadian Tax Act and is not an authorized foreign
bank for purposes of the Canadian Tax Act that is deemed to be resident in
Canada for purposes of Part XIII of the Canadian Tax Act in respect of all
payments to such Lender hereunder. For purposes of this definition, the United
States, each state thereof and the District of Columbia shall be deemed to
constitute a single jurisdiction.

 

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

 

“FRB” means the Board
of Governors of the Federal Reserve System of the United States.

 

 

“Fund” means any
Person (other than a natural person) that is (or will be) engaged in making,
purchasing, holding or otherwise investing in commercial loans and similar
extensions of credit in the ordinary course of its business.

 

“Funded Indebtedness”
means, as to any Person at a particular time, without duplication, all of the
following, whether or not included as indebtedness or liabilities in accordance
with GAAP:

 

(a)           all obligations for borrowed money, whether
current or long-term (including the Obligations) and all obligations of such
Person evidenced by bonds, debentures, notes, loan agreements or other similar
instruments;

 

(b)           all purchase money Indebtedness;

 

(c)           the principal portion of all obligations
under conditional sale or other title retention agreements relating to property
purchased by GGC or any Subsidiary (other than customary reservations or
retentions of title under agreements with suppliers entered into in the
ordinary course of business);

 

(d)           all obligations arising under letters of
credit (including standby and commercial), bankers’ acceptances, bank
guaranties and similar instruments (other than obligations arising under surety
bonds and standby letters of credit that support performance obligations);

 

(e)           all obligations in respect of the deferred
purchase price of property or services (other than trade accounts payable in
the ordinary course of business and, in each case, not past due for more than
60 days after the date on which such trade account payable was created);

 

(f)            the Attributable Indebtedness of Capital
Leases and Synthetic Leases;

 

(g)           the Attributable Indebtedness of
Securitization Transactions;

 

(h)           all obligations of such Person to purchase,
redeem, retire, defease or otherwise make any payment in respect of any Equity
Interests in such Person or any other Person, valued, in the case of a
redeemable preferred interest, at the greater of its voluntary or involuntary
liquidation preference plus accrued and unpaid dividends;

 

(i)            all Funded Indebtedness of others secured by
(or for which the holder of such Funded Indebtedness has an existing right,
contingent or otherwise, to be secured by) any Lien on, or payable out of the
proceeds of production from, property owned or acquired by such Person, whether
or not the obligations secured thereby have been assumed;

 

(j)            all Guarantees with respect to Funded
Indebtedness of the types specified in clauses (a) through (i) above of another
Person; and

 

(k)           all Funded Indebtedness of the types referred
to in clauses (a) through (j) above of any partnership or joint venture (other
than a joint venture that is itself a corporation or limited liability company)
in which such Person is a general partner or joint venturer, except to the
extent that Funded Indebtedness is expressly made 

 

 

non-recourse to such Person.

 

For purposes hereof, (a) the
amount of any direct obligation arising under letters of credit (including
standby and commercial), bankers’ acceptances, bank guaranties, surety bonds
and similar instruments shall be the maximum remaining amount available to be
drawn thereunder and (b) the Indebtedness under the Medium Term Notes shall not
be considered Funded Indebtedness so long as GGC maintains a reserve of cash in
an amount sufficient to repay the entire outstanding amount of Medium Term
Notes within 40 days of the Closing Date.

 

“GAAP” means
generally accepted accounting principles in the United States set forth in the
opinions and pronouncements of the Accounting Principles Board and the American
Institute of Certified Public Accountants and statements and pronouncements of
the Financial Accounting Standards Board or such other principles as may be
approved by a significant segment of the accounting profession in the United
States, that are applicable to the circumstances as of the date of
determination, consistently applied; provided however that only for
purposes of Sections 5.01(c)(ii) and 5.01(c)(iv) and Sections
6.05(b) and 6.05(d), “GAAP” shall mean generally accepted accounting
principles in Canada.

 

“Gallman Property”
has the meaning specified in the definition of “Excluded Domestic Property”
set forth in Section 1.01.

 

“Gallman Reimbursement
and Security Agreement” means that certain Reimbursement and Security
Agreement between GGC and Wachovia Bank of Georgia, N.A. dated as of June 1,
1994, as amended from time to time.

 

“GGC” has the meaning
specified in the introductory paragraph.

 

“GGC Audited Financial
Statements” means the audited consolidated balance sheet of GGC and its
Subsidiaries as of December 31, 2005, and the related consolidated
statements of income or operations, shareholders’ equity and cash flows for the
fiscal year ended December 31, 2005 of GGC and its Subsidiaries, including
the notes thereto.

 

“GGC Interim Financial
Statements” has the meaning specified in Section 5.01(c)(iii).

 

“Governmental Authority”
means the government of the United States, Canada or any other nation, or of
any political subdivision thereof, whether state, provincial, municipal or
local, and any agency, authority, instrumentality, regulatory body, court,
central bank or other entity exercising executive, legislative, judicial,
taxing, regulatory or administrative powers or functions of or pertaining to
government (including any supra-national bodies such as the European Union or
the European Central Bank).

 

“Guarantee” means, as
to any Person, (a) any obligation, contingent or otherwise, of such Person
guaranteeing or having the economic effect of guaranteeing any Indebtedness or
other obligation payable or performable by another Person (the “primary obligor”)
in any manner, whether directly or indirectly, and including any obligation of
such Person, direct or indirect, (i) to purchase or pay (or advance or
supply funds for the purchase or payment of) such Indebtedness or other
obligation, (ii) to purchase or lease property, securities or services for
the purpose of assuring the obligee in respect of such Indebtedness or other
obligation of the payment or performance of such Indebtedness or other
obligation, (iii) to maintain working capital, equity capital or any other
financial statement condition or liquidity or level of income or cash flow of 

 

 

the
primary obligor so as to enable the primary obligor to pay such Indebtedness or
other obligation, or (iv) entered into for the purpose of assuring in any
other manner the obligee in respect of such Indebtedness or other obligation of
the payment or performance thereof or to protect such obligee against loss in
respect thereof (in whole or in part), or (b) any Lien on any assets of
such Person securing any Indebtedness or other obligation of any other Person,
whether or not such Indebtedness or other obligation is assumed by such Person
(or any right, contingent or otherwise, of any holder of such Indebtedness to
obtain any such Lien). The amount of any Guarantee shall be deemed to be an
amount equal to the stated or determinable amount of the related primary
obligation, or portion thereof, in respect of which such Guarantee is made or,
if not stated or determinable, the maximum reasonably anticipated liability in
respect thereof as determined by the guaranteeing Person in good faith. The
term “Guarantee” as a verb has a corresponding meaning.

 

“Guarantors” means a
collective reference to (a) GGC, as a guarantor of the Canadian Obligations,
(b) the Domestic Guarantors and (c) the Canadian Guarantors, and “Guarantor”
means any one of them.

 

“Hazardous Materials”
means all explosive or radioactive substances or wastes and all hazardous or
toxic substances, wastes or other pollutants, including petroleum or petroleum
distillates, asbestos or asbestos-containing materials, polychlorinated
biphenyls, radon gas, infectious or medical wastes and all other substances or
wastes of any nature regulated pursuant to any Environmental Law.

 

“Holdco” means Rome
Acquisition Holding Corp., a Nova Scotia unlimited liability company and a
Wholly Owned Subsidiary of GGC.

 

“Holdco Loan” means
that certain intercompany loan by GGC to Holdco in the principal amount of CAN$666,000,000,
as evidenced by the Holdco Note.

 

“Holdco Note” means
that certain promissory note in the form of Exhibit G evidencing the
Holdco Loan executed by Holdco in favor of GGC, with a maturity date that is
after the Term Loan Maturity Date.

 

“Honor Date” means
either the Domestic Honor Date and/or the Canadian Honor Date, as applicable.

 

“Incentive Equity Plan”
means any of (a) GGC’s 1998 Incentive Equity Plan, (b) GGC’s Amended and
Restated 2002 Equity and Performance Incentive Plan and (c) any substantially
similar incentive equity plan adopted from time to time by GGC or any of its
Subsidiaries, in each case as the same shall be amended, supplemented or
otherwise modified and in effect from time to time.

 

“Indebtedness” means,
as to any Person at a particular time, without duplication, all of the
following, whether or not included as indebtedness or liabilities in accordance
with GAAP:

 

(a)           all Funded Indebtedness;

 

(b)           net obligations of such Person under any Swap
Contract;

 

(c)           all Guarantees of such Person with respect to
outstanding Indebtedness of the types specified in clauses (a) and (b) above;
and

 

 

(d)           all Indebtedness of the types referred to in
clauses (a) through (c) above of any partnership or joint venture (other than a
joint venture that is itself a corporation or limited liability company) in
which such Person is a general partner or joint venturer, unless such
Indebtedness is expressly made non-recourse to such Person.

 

The amount of any net
obligation under any Swap Contract on any date shall be deemed to be the Swap
Termination Value thereof as of such date.

 

“Indemnified Taxes”
means Taxes other than Excluded Taxes.

 

“Indemnitees” has the
meaning specified in Section 11.04(b).

 

“Information” has the
meaning specified in Section 11.07.

 

“Intercompany Security
Documents” means the collective reference to the guaranty agreements,
security agreements, pledge agreements, mortgages and other security documents
requested by, and in form and substance satisfactory to, the Domestic
Administrative Agent, in each case executed by Holdco and its Canadian
Subsidiaries in favor of GGC in accordance with the terms hereof.

 

“Interest Payment Date”
means, (a) as to any Eurodollar Loan, the last day of each Interest Period
applicable to such Loan and the Revolving Loan Maturity Date or the Term Loan
Maturity Date, as applicable; provided, however, that if any
Interest Period for a Eurodollar Rate Loan exceeds three months, the respective
dates that fall every three months after the beginning of such Interest Period
shall also be Interest Payment Dates; and (b) as to any Base Rate Loan (including
any Canadian Swing Line Loan), the last Business Day of each March, June,
September and December and the Revolving Loan Maturity Date or the Term
Loan Maturity Date, as applicable.

 

“Interest Period”
means, as to each Eurodollar Rate Loan, the period commencing on the date such
Eurodollar Rate Loan is disbursed or converted to or continued as a Eurodollar
Rate Loan and ending on the date one, two, three or six months thereafter, as
selected by the applicable Borrower in its Loan Notice; provided that:

 

(a)           any Interest Period that would otherwise end
on a day that is not a Business Day shall be extended to the next succeeding
Business Day unless such Business Day falls in another calendar month, in which
case such Interest Period shall end on the next preceding Business Day;

 

(b)           any Interest Period that begins on the last
Business Day of a calendar month (or on a day for which there is no numerically
corresponding day in the calendar month at the end of such Interest Period)
shall end on the last Business Day of the calendar month at the end of such
Interest Period; and

 

(c)           no Interest Period shall extend beyond the
Revolving Loan Maturity Date or the Term Loan Maturity Date, as applicable.

 

“Internal Control Event”
means a material weakness in, or fraud that involves management or other
employees who have a significant role in, GGC’s internal controls over
financial reporting, in each case as described in the Securities Laws.

 

 

“Investment” means,
as to any Person, any direct or indirect acquisition or investment by such
Person, whether by means of (a) the purchase or other acquisition of
Equity Interests of another Person, (b) a loan, advance or capital
contribution to, Guarantee or assumption of debt of, or purchase or other
acquisition of any other debt or equity participation or interest in, another
Person, including any partnership or joint venture interest in such other
Person and any arrangement pursuant to which the investor Guarantees
Indebtedness of such other Person, or (c) an Acquisition. For purposes of
covenant compliance, the amount of any Investment shall be the amount actually
invested, without adjustment for subsequent increases or decreases in the value
of such Investment.

 

“Involuntary Disposition”
means any loss of, damage to or destruction of, or any condemnation or other
taking for public use of, any property of GGC or any of its Subsidiaries.

 

“IP Rights” has the
meaning specified in Section 6.17.

 

“IRS” means the
United States Internal Revenue Service.

 

“ISP” means, with respect
to any standby Letter of Credit, the “International Standby Practices 1998”
published by the Institute of International Banking Law & Practice (or such
later version thereof as may be in effect at the time of issuance).

 

“Issuer Documents”
means the Domestic Issuer Documents and the Canadian Issuer Documents.

 

“Joinder Agreement”
means (a) with respect to any Domestic Subsidiary that is a Material
Subsidiary, a joinder agreement substantially in the form of Exhibit E
executed and delivered by such Domestic Subsidiary in accordance with the
provisions of Section 7.12 and (b) with respect to any Canadian
Subsidiary that is a Material Subsidiary, a joinder agreement substantially in
the form of Exhibit F executed and delivered by such Canadian Subsidiary
in accordance with the provisions of Section 7.12.

 

“Laws” means,
collectively, all international, foreign, Federal, state, provincial, municipal
and local statutes, treaties, rules, bylaws, guidelines, regulations,
ordinances, codes and administrative or judicial precedents or authorities,
including the interpretation or administration thereof by any Governmental
Authority charged with the enforcement, interpretation or administration
thereof, and all applicable administrative orders, directed duties, requests,
licenses, authorizations and permits of, and agreements with, any Governmental
Authority, in each case whether or not having the force of law.

 

“L/C Advance” means a
Domestic L/C Advance and/or a Canadian L/C Advance, as appropriate.

 

“L/C Borrowing” means
Domestic L/C Borrowings and Canadian L/C Borrowing, individually or
collectively, as appropriate.

 

“L/C Credit Extension”
means Domestic L/C Credit Extensions and Canadian L/C Credit Extensions,
individually or collectively, as appropriate.

 

“L/C Issuer” and “L/C
Issuers” means the applicable Domestic L/C Issuer and the applicable
Canadian L/C Issuer, individually or collectively, as appropriate.

 

 

“L/C Obligations”
means the Domestic L/C Obligations and the Canadian L/C Obligations,
individually or collectively, as appropriate.

 

“Lender”
has the meaning specified in the introductory paragraph hereto and, as the
context requires, includes the Canadian Swing Line Lender.

 

“Lending Office”
means, as to any Lender, the office or offices of such Lender described as such
in such Lender’s Administrative Questionnaire, or such other office or offices
as a Lender may from time to time notify the Borrowers and the applicable
Administrative Agent.

 

“Letter of Credit”
means any Domestic Letter of Credit and/or any Canadian Letter of Credit, as
appropriate.

 

“Letter of Credit
Application” means any Domestic Letter of Credit Application and any
Canadian Letter of Credit Application, individually or collectively, as
appropriate.

 

“Letter of Credit
Expiration Date” means the day that is seven days prior to the Revolving
Loan Maturity Date then in effect (or, if such day is not a Business Day, the
next preceding Business Day).

 

“Lien” means any
mortgage, pledge, hypothecation, assignment, deposit arrangement, encumbrance,
lien (statutory or other), charge, or preference, priority or other security
interest or preferential arrangement in the nature of a security interest of
any kind or nature whatsoever (including any conditional sale or other title
retention agreement, any easement, right of way or other encumbrance on title
to real property, and any financing lease having substantially the same
economic effect as any of the foregoing).

 

“Loan” means an
extension of credit by a Lender to a Borrower under Article II in
the form of a Domestic Revolving Loan, Canadian Revolving Loan, Canadian Swing
Line Loan or Term Loan.

 

“Loan Documents”
means this Agreement, each Note, each Issuer Document, the Collateral
Documents, the Disposition and Dissolution Letter and the Administrative Agent
Fee Letter, each as amended, modified, supplemented, extended, renewed,
restated or substituted from time to time.

 

“Loan Notice” means a
notice of (a) a Borrowing of Loans, (b) a conversion of Loans from
one Type to the other, or (c) a continuation of Eurodollar Rate Loans,
pursuant to Section 2.02(a), which, if in writing, shall be
substantially in the form of Exhibit A.

 

“Loan Parties” means
the collective reference to Domestic Loan Parties and the Canadian Loan Parties
and “Loan Party” means any one of them.

 

“Material Adverse Effect”
means (a) a material adverse change in, or a material adverse effect upon, the
business, assets, operations, properties, condition (financial or otherwise) or
contingent liabilities of GGC and its Subsidiaries taken as a whole; (b) a
material impairment of the ability of (i) any Borrower to perform its material
obligations under any Loan Document to which it is a party or (ii) the Loan
Parties taken as a whole to perform their material obligations under the Loan Documents;
or (c) a material adverse effect upon the legality, validity, binding effect or
enforceability against any Loan Party of any Loan Document to which it is a
party.

 

 

“Material Subsidiary”
means, any Subsidiary that on a consolidated basis with its Subsidiaries (a)
has assets in excess of 5% of the total assets of GGC and its Subsidiaries on a
consolidated basis as of the end of the immediately preceding fiscal quarter,
(b) generates more than 5% of the
total revenues of GGC and its Subsidiaries on a consolidated basis, (c)
together with any other Domestic Subsidiaries and Canadian Subsidiaries that
have not provided a Guaranty, has assets, together with such Subsidiaries and
each of its Subsidiaries on a consolidated basis, in excess of 15% of the total
assets of GGC and its Subsidiaries on a consolidated basis as of the end of the
immediately preceding fiscal quarter or (d) together with any other Domestic
Subsidiaries and Canadian Subsidiaries that have not provided a Guaranty
hereunder generates, together with such Subsidiaries and each of its
Subsidiaries on a consolidated basis, more than 15% of the total revenues of
GGC and its Subsidiaries on a consolidated basis, in each case after giving
effect to the Royal Acquisition, for the period of four consecutive fiscal
quarters ending as of the end of the immediately preceding fiscal quarter.

 

“Medium Term Notes
Indenture” means that certain Trust Indenture dated as of April 13, 2000 by
and among the Canadian Borrower, certain subsidiaries of the Canadian Borrower,
as guarantors, and Montreal Trust Company of Canada, as trustee, as amended or
modified from time to time in accordance with the terms hereof and thereof.

 

“Medium Term Notes”
means those certain notes of the Canadian Borrower issued pursuant to the
Medium Term Notes Indenture.

 

“Medium Term Notes
Documents” means the Medium Term Notes, the Medium Term Notes Indenture and
all other documents executed and delivered in connection therewith.

 

“Moody’s” means Moody’s
Investors Service, Inc. and any successor thereto.

 

“Mortgaged Property”
means any real property that is owned or leased (other than any Excluded
Canadian Property or Excluded Domestic Property) by a Loan Party and is subject
to a Mortgage.

 

“Mortgages” means the
mortgages, deeds of trust, deeds to secure debt or like instruments given by
the Loan Parties to the Domestic Collateral Agent or the Canadian Collateral
Agent, as applicable, to secure the applicable Obligations, as such instruments
may be amended or modified from time to time.

 

“Net Cash Proceeds”
means the aggregate cash or cash equivalents proceeds received by GGC or any
Subsidiary in respect of any Disposition, Equity Issuance, Debt Issuance or
Involuntary Disposition, net of (a) direct costs incurred in connection therewith
(including, without limitation, legal, accounting and investment banking fees,
and sales commissions) and (b) taxes and employee severance payments paid or
payable as a result thereof; it being understood that “Net Cash Proceeds” shall
include, without limitation, any cash or cash equivalents received upon the
sale or other disposition of any non-cash consideration received by any
Borrower or any Subsidiary in any Disposition, Equity Issuance, Debt Issuance
or Involuntary Disposition.

 

“Non-Consenting Lender”
has the meaning specified in Section 11.13.

 

“Note” means the
Domestic Revolving Notes, the Canadian Revolving Notes, the Term Notes and the
Canadian Swing Line Note, individually or collectively, as appropriate.

 

 

“Notional BA Proceeds” means, with
respect to a Bankers’ Acceptance Advance, the aggregate Face Amount of the
Bankers’ Acceptance or face amount of an Acceptance Note comprising such
Bankers’ Acceptance Advance, if applicable, less the aggregate of:

 

(a)           a discount from the aggregate Face Amount of
such Bankers’ Acceptance or face amount of such Acceptance Note, as applicable,
calculated in accordance with normal market practices based on the BA Rate for
the term of such Bankers’ Acceptance or Acceptance Note, as applicable; and

 

(b)           the amount of the acceptance fees determined in
accordance with Section 2.02(g) in respect of such Bankers’
Acceptance Advance.

 

“Obligations” means
all advances to, and debts, liabilities, obligations, covenants and duties of,
any Loan Party arising under any Loan Document or otherwise with respect to any
Loan or Letter of Credit, whether direct or indirect (including those acquired
by assumption), absolute or contingent, due or to become due, now existing or
hereafter arising and including interest and fees that accrue after the
commencement by or against any Loan Party or any Affiliate thereof of any
proceeding under any Debtor Relief Laws naming such Person as the debtor in
such proceeding, regardless of whether such interest and fees are allowed
claims in such proceeding. “Obligations” shall also include all obligations
under any Swap Contract between any Loan Party and any Lender or Affiliate of a
Lender and all obligations under any Treasury Management Agreement between any
Loan Party and any Lender or Affiliate of a Lender.

 

“Organization Documents”
means, (a) with respect to any corporation, the certificate or articles of
incorporation and the bylaws (or equivalent or comparable constitutive
documents with respect to any non-U.S. jurisdiction); (b) with respect to
any limited liability company, the certificate or articles of formation or
organization and operating agreement; and (c) with respect to any
partnership, joint venture, trust or other form of business entity, the
partnership, joint venture or other applicable agreement of formation or
organization and any agreement, instrument, filing or notice with respect
thereto filed in connection with its formation or organization with the
applicable Governmental Authority in the jurisdiction of its formation or
organization and, if applicable, any certificate or articles of formation or
organization of such entity.

 

“Other Taxes” means
all present or future stamp or documentary taxes or any other excise or
property taxes, charges or similar levies arising from any payment made
hereunder or under any other Loan Document or from the execution, delivery or
enforcement of, or otherwise with respect to, this Agreement or any other Loan
Document.

 

“Outstanding Amount”
means (i) with respect to any Loans on any date, the aggregate outstanding
principal amount thereof after giving effect to any borrowings and prepayments
or repayments of any Loans occurring on such date; and (ii) with respect
to any L/C Obligations on any date, the amount of such L/C Obligations on such
date after giving effect to any L/C Credit Extension occurring on such date and
any other changes in the aggregate amount of the L/C Obligations as of such
date, including as a result of any reimbursements by the applicable Borrower of
Unreimbursed Amounts.

 

“Overnight Rate”
means, for any day, (a) with respect to any amount denominated in U.S. Dollars,
the greater of (i) the Federal Funds Rate and (ii) an overnight rate determined
by the applicable Administrative Agent or the applicable L/C Issuer, as the
case may be, in accordance with banking industry rules on interbank
compensation and (b) with respect to any amount 

 

 

denominated
in Canadian Dollars, an overnight rate determined by the applicable
Administrative Agent and the applicable L/C Issuer in accordance with banking
industry rules on interbank compensation.

 

“Participant” has the
meaning specified in Section 11.06(d).

 

“Participating Member
State” means each state so described in any EMU Legislation.

 

“PBGC” means the
Pension Benefit Guaranty Corporation.

 

“PCAOB” means the
Public Company Accounting Oversight Board.

 

“Permitted Acquisitions”
means (a) the Royal Acquisition on the Closing Date and (b) any other
Investments consisting of an Acquisition by GGC or any Subsidiary; provided
that (i) both before and immediately after giving effect to such Acquisition,
no Default shall have occurred and be continuing, (ii) the property acquired
(or the property of the Person acquired) in such Acquisition is used or useful
in the same or a similar line of business as GGC and its Subsidiaries were
engaged in on the Closing Date, after giving effect to the Royal Acquisition,
or any reasonable extensions or expansions thereof or complementary thereto,
(iii) the applicable Collateral Agent shall have received all items in respect
of the Equity Interests or property acquired in such Acquisition required to be
delivered by the terms of Section 7.12 and/or Section 7.14, (iv)
in the case of an Acquisition of the Equity Interests of another Person, the
board of directors (or other comparable governing body) of such other Person
shall have duly approved such Acquisition, (v) the representations and
warranties made by the Loan Parties in each Loan Document shall be true and
correct in all material respects at and as if made as of the date of such
Acquisition (after giving effect thereto) except to the extent such
representations and warranties expressly relate to an earlier date, (vi) if
such transaction involves the purchase of an interest in a partnership between
GGC (or a Subsidiary) as a general partner and entities unaffiliated with GGC
or such Subsidiary as the other partners, such transaction shall be effected by
having such equity interest acquired by a corporate holding company directly or
indirectly wholly-owned by GGC newly formed for the sole purpose of effecting
such transaction, (vii)  Consolidated
Leverage Ratio (calculated on a Pro Forma Basis after giving effect to such
Acquisition) is less than or equal to 3.5 to 1.0, and (viii) if the aggregate
consideration (including cash and non-cash consideration, any assumption of
Indebtedness, deferred purchase price and any earn-out payments) paid by GGC or
any Subsidiary for any Acquisition exceeds $200,000,000, GGC shall have
delivered to the Administrative Agents a pro forma compliance certificate
documenting that, upon giving effect to such Acquisition, the Consolidated
Leverage Ratio is less than or equal to 3.5 to 1.0.

 

“Permitted Liens”
means those Liens permitted to exist pursuant to Section 8.01.

 

“Person” means any
natural person, corporation, limited liability company, trust, joint venture,
association, company, partnership, Governmental Authority or other entity.

 

“Platform” has the
meaning specified in Section 7.02.

 

“PPSA” means the
Personal Property Security Act as in force from time to time in the relevant
province or territory.

 

“Praxair Collateral”
means the buildings, structures, improvements, equipment, machinery,
apparatuses, fittings, fixtures and other tangible personal property (other
than inventory) located at GGC’s air separation facility in Placquemine,
Louisiana and used in GGC’s 

 

 

business
operations at such air separation facility, and all parts, accessories and
special tools and all increases and accessions thereto and substitutions and
replacements therefor.

 

“Pro Forma Basis”
means, for purposes of calculating the financial covenants set forth in Section
8.11 and the Consolidated Adjusted Leverage Ratio, that any Disposition,
Involuntary Disposition, Acquisition or Restricted Payment shall be deemed to
have occurred as of the first day of the most recent four fiscal quarter period
preceding the date of such transaction for which GGC has delivered financial
statements pursuant to Section 7.01(a) or (b). In connection with
the foregoing, (a) with respect to any Disposition or Involuntary Disposition,
(i) income statement and cash flow statement items (whether positive or
negative) attributable to the Property disposed of shall be excluded to the
extent relating to any period occurring prior to the date of such transaction
and (ii) Indebtedness which is retired shall be excluded and deemed to have
been retired as of the first day of the applicable period and (b) with respect
to any Acquisition (i) income statement items (whether positive or negative)
attributable to the Person or Property acquired shall be included to the extent
relating to any period applicable in such calculations to the extent (A) such
items are not otherwise included in such income statement items for GGC and its
Subsidiaries in accordance with GAAP or in accordance with any defined terms
set forth in Section 1.01 and (B) such items are supported by audited
financial statements or other information reasonably satisfactory to the
Domestic Administrative Agent and (ii) any Indebtedness incurred or assumed by
GGC or any Subsidiary (including the Person or Property acquired) in connection
with such transaction and any Indebtedness of the Person or Property acquired
which is not retired in connection with such transaction (A) shall be deemed to
have been incurred as of the first day of the applicable period and (B) if such
Indebtedness has a floating or formula rate, shall have an implied rate of
interest for the applicable period for purposes of this definition determined by
utilizing the rate which is or would be in effect with respect to such
Indebtedness as at the relevant date of determination.

 

“Quebec Bond Pledge”
means any pledge of a bond, debenture or other title of indebtedness issued
pursuant to a Deed of Hypothec granted by a Canadian Loan Party to and in favor
of the Canadian Collateral Agent to secure the Canadian Obligations.

 

“Register” has the
meaning specified in Section 11.06(c).

 

“Registered Public
Accounting Firm” has the meaning specified in the Securities Laws and shall
be independent of GGC as prescribed by the Securities Laws.

 

“Related Parties”
means, with respect to any Person, such Person’s Affiliates and the partners,
directors, officers, employees, agents and advisors of such Person and of such
Person’s Affiliates.

 

“Related U.S. Lender”
means with respect to any Canadian Revolving Lender, the Affiliate (including
an agency or branch) of such Lender which maintains a lending office in the
United States of America.

 

“Reportable Event”
means any of the events set forth in Section 4043(c) of ERISA, other than
events for which the 30 day notice period has been waived.

 

“Request for Credit
Extension” means (a) with respect to a Borrowing, conversion or
continuation of Loans, a Loan Notice and (b) with respect to an L/C Credit
Extension, a Letter of Credit Application.

 

 

“Required Canadian
Lenders” means, at any time, the Canadian Revolving Lenders and the
Canadian Swing Line Lender holding in the aggregate more than 50% of
(a) the unfunded Canadian Revolving Commitments and the outstanding
Canadian Revolving Loans and Canadian L/C Obligations and participations
therein and the unfunded Canadian Swing Line Commitment and the outstanding
Canadian Swing Line Loans or (b) if the Canadian Revolving Commitments and
the Canadian Swing Line Commitment have been terminated, the outstanding
Canadian Revolving Loans, Canadian L/C Obligations and participations therein
and Canadian Swing Line Loans (with the aggregate amount of each Canadian
Revolving Lender’s risk participation and funded participation in Canadian L/C
Obligations being deemed “held” by such Canadian Revolving Lender for purposes
of this definition). The unfunded Canadian Revolving Commitments and Canadian
Swing Line Commitment of, and the outstanding Canadian Revolving Loans,
Canadian L/C Obligations and Canadian Swing Line Loans held or deemed held by,
any Defaulting Lender shall be excluded for purposes of making a determination
of Required Canadian Lenders. For the avoidance of doubt, it is understood and
agreed that if a Canadian Revolving Lender includes a Related U.S. Lender such
Canadian Revolving Lender shall be deemed to have a single shared Canadian
Revolving Commitment for purposes of this definition.

 

“Required Canadian
Revolving Lenders” means, at any time, the Canadian Revolving Lenders
holding in the aggregate more than 50% of (a) the unfunded Canadian
Revolving Commitments and the outstanding Canadian Revolving Loans and Canadian
L/C Obligations and participations therein or (b) if the Canadian
Revolving Commitments have been terminated, the outstanding Canadian Revolving
Loans, Canadian L/C Obligations and participations therein (with the aggregate
amount of each Canadian Revolving Lender’s risk participation and funded
participation in Canadian L/C Obligations being deemed “held” by such Canadian
Revolving Lender for purposes of this definition). The unfunded Canadian
Revolving Commitments of, and the outstanding Canadian Revolving Loans and
Canadian L/C Obligations held or deemed held by, any Defaulting Lender shall be
excluded for purposes of making a determination of Required Canadian Revolving
Lenders. For the avoidance of doubt, it is understood and agreed that if a
Canadian Revolving Lender includes a Related U.S. Lender such Canadian
Revolving Lender shall be deemed to have a single shared Canadian Revolving
Commitment for purposes of this definition.

 

“Required Domestic
Lenders” means, at any time, the Lenders holding in the aggregate more than
50% of (a) the unfunded Domestic Revolving Commitments, the outstanding
Loans (other than the Canadian Revolving Loans and Canadian Swing Line Loans),
the Domestic L/C Obligations and participations therein or (b) if the
Domestic Revolving Commitments have been terminated, the outstanding Loans
(other than the Canadian Revolving Loans and Canadian Swing Line Loans),
Domestic L/C Obligations and participations therein (with the aggregate amount
of each such Lender’s risk participation and funded participation in Domestic
L/C Obligations being deemed “held” by such Lender for purposes of this
definition). The unfunded Domestic Revolving Commitments of, and the
outstanding Domestic Revolving Loans, Term Loan and Domestic L/C Obligations
held or deemed held by any Defaulting Lender shall be excluded for purposes of
making a determination of Required Domestic Lenders.

 

“Required Domestic
Revolving Lenders” means, at any time, the Lenders holding in the aggregate
more than 50% of (a) the unfunded Domestic Revolving Commitments and the
outstanding Domestic Revolving Loans, Domestic L/C Obligations and
participations therein or (b) if the Domestic Revolving Commitments have
been terminated, the outstanding Domestic Revolving Loans, Domestic L/C
Obligations and participations therein (with the aggregate amount of each
Domestic Revolving Lender’s risk participation and funded participation in 

 

 

Domestic
L/C Obligations being deemed “held” by such Lender for purposes of this
definition). The unfunded Domestic Revolving Commitments of, and the
outstanding Domestic Revolving Loans and Domestic L/C Obligations held or
deemed held by, any Defaulting Lender shall be excluded for purposes of making
a determination of Required Domestic Revolving Lenders.

 

“Required Lenders”
means, at any time, Lenders holding in the aggregate more than 50% of
(a) the unfunded Commitments and the outstanding Loans, L/C Obligations
and participations therein or (b) if the Commitments have been terminated,
the outstanding Loans, L/C Obligations and participations therein (with the aggregate
amount of each Lender’s risk participation and funded participation in L/C
Obligations being deemed “held” by such Lender for purposes of this definition).
The unfunded Commitments of, and the outstanding Loans and L/C Obligations held
or deemed held by, any Defaulting Lender shall be excluded for purposes of
making a determination of Required Lenders. For the avoidance of doubt, it is
understood and agreed that if a Canadian Revolving Lender includes a Related
U.S. Lender such Canadian Revolving Lender shall be deemed to have a single
shared Canadian Revolving Commitment for purposes of this definition.

 

“Required Term Loan
Lenders” means, at any time, Lenders holding more than 50% of the
outstanding Term Loan. The outstanding Term Loan held or deemed held by, any
Defaulting Lender shall be excluded for purposes of making a determination of
Required Term Loan Lenders.

 

“Responsible Officer”
means the chief executive officer, president, vice president, chief financial
officer, treasurer, assistant treasurer, secretary or controller of a Loan
Party. Any document delivered hereunder that is signed by a Responsible Officer
of a Loan Party shall be conclusively presumed to have been authorized by all
necessary corporate, partnership and/or other action on the part of such Loan
Party and such Responsible Officer shall be conclusively presumed to have acted
on behalf of such Loan Party.

 

“Restricted Payment”
means any dividend or other distribution (whether in cash, securities or other
property) with respect to any Equity Interests of GGC or any Subsidiary, or any
payment (whether in cash, securities or other property), including any sinking
fund or similar deposit, on account of the purchase, redemption, retirement,
acquisition, cancellation or termination of any such Equity Interests, or on
account of any return of capital to GGC’s stockholders, partners or members (or
the equivalent Person thereof), or any setting apart of funds or property for
any of the foregoing.

 

“Reuters Screen CDOR Page”
means the display designated as page CDOR on the Reuters Monitor Money Rates
Service or other page as may, from time to time, replace that page on that
service for the purpose of displaying bid quotations for bankers’ acceptances
accepted by leading Canadian banks.

 

“Revaluation Date”
means each of the following:  (a) with
respect to Eurodollar Rate Loans denominated in an Alternative Currency, (i)
each date of a Borrowing thereof, (ii) each date of a continuation thereof
pursuant to Section 2.02 and (iii) such additional dates as the
applicable Administrative Agent or the Required Lenders shall specify, (b) with
respect to Canadian Letters of Credit denominated in an Alternative Currency,
(i) each date of issuance thereof, (ii) each date of amendment (if such
amendment increases the amount) thereof, (iii) each date of any payment by the
respective Canadian L/C Issuer thereof, (iv) in the case of Existing Canadian
Letters of Credit, the Closing Date and (v) such additional dates as the
Canadian Administrative Agent or the Required Canadian Revolving Lenders shall
require and (c) with 

 

 

respect
to Domestic Letters of Credit denominated in an Alternative Currency, (i) each
date of issuance thereof, (ii) each date of amendment (if such amendment
increases the amount) thereof, (iii) each date of any payment by the respective
Domestic L/C Issuer thereof, (iv) in the case of Existing Domestic Letters of
Credit, the Closing Date and (v) such additional dates as the Domestic
Administrative Agent or the Required Domestic Revolving Lenders shall require.

 

“Revolving Lender”
means any Domestic Revolving Lender and/or Canadian Revolving Lender,
individually or collectively, as appropriate.

 

“Revolving Loan”
means the Domestic Revolving Loan and/or the Canadian Revolving Loan, individually
or collectively, as appropriate.

 

“Revolving Loan Maturity
Date” means October 3, 2011.

 

“Rome” means Rome
Acquisition Corp., a corporation incorporated under the laws of Canada and
Wholly Owned Subsidiary of GGC.

 

“Royal Acquisition”
means the purchase by Rome of the shares of the Canadian Borrower pursuant to
and in accordance with the terms of the Acquisition Documents.

 

“Royal Audited Financial
Statements” means the audited consolidated balance sheet of the Canadian
Borrower and its Subsidiaries as of December 31, 2005, and the related
consolidated statements of income or operations, shareholders’ equity and cash
flows for the fiscal year ended December 31, 2005 of the Canadian Borrower and
its Subsidiaries, including the notes thereto.

 

“Royal Interim Financial
Statements” has the meaning specified in Section 5.01(c)(iv).

 

“RPU” means Royal
Plastics Group (U.S.A.) Limited, a Delaware corporation.

 

“RPU
Preferred Stock” means the 131 shares of Series A preferred stock issued by
RPU to the Canadian Borrower pursuant to that certain Certificate of
Designation of RPU dated as of January 30, 1996.

 

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

 

“Sale and Leaseback
Transaction” means any transaction providing for the leasing by any Person
to GGC or any of its Subsidiaries of any property which has been or is to be
sold or transferred by GGC or any of its Subsidiaries to such Person or to any
Person in exchange for funds which have been or are to be advanced by such
Person on the security of such property.

 

“Sarbanes-Oxley”
means the Sarbanes-Oxley Act of 2002, as it may be amended and in effect on any
applicable date hereunder.

 

“Schedule I Lender”
means any Lender named on Schedule I to the Bank Act (Canada).

 

“SEC” means the
Securities and Exchange Commission, or any Governmental Authority succeeding to
any of its principal functions.

 

“Securities Laws”
means the Securities Act of 1933, the Securities Exchange Act of 

 

 

1934,
Sarbanes-Oxley and the applicable accounting and auditing principles, rules,
standards and practices promulgated, approved or incorporated by the SEC or the
PCAOB, as each of the foregoing may be amended and in effect on any applicable
date hereunder.

 

“Securitization
Transaction” means any financing transaction or series of financing
transactions pursuant to which GGC or any Subsidiary may sell, convey or
otherwise transfer, or grant a security interest in, accounts, payments,
receivables, rights to future lease payments or residuals or similar rights to
payment to a special purpose Subsidiary or Affiliate of GGC (each, a “SPV”).

 

“Series D Note Purchase
Agreement” means that certain Note Purchase Agreement dated as of September
30, 1997 by and among the Canadian Borrower and the purchasers party thereto,
as amended or modified from time to time in accordance with the terms hereof
and thereof.

 

“Series D Notes”
means those certain 7.10% senior unsecured notes, Series D, of the Canadian
Borrower due November 14, 2007 issued pursuant to the Series D Note Purchase
Agreement.

 

“Series D Notes Documents”
means the Series D Notes, the Series D Note Purchase Agreement and all other
documents executed and delivered in connection therewith.

 

“Solvent” and “Solvency”
means, with respect to any Person on any date of determination, that on such
date (a) the fair value of the property of such Person is greater than the
total amount of liabilities, including contingent liabilities, of such Person,
(b) the present fair salable value of the assets of such Person is not
less than the amount that will be required to pay the probable liability of
such Person on its debts as they become absolute and matured, (c) such
Person does not intend to, and does not believe that it will, incur debts or
liabilities beyond such Person’s ability to pay such debts and liabilities as
they mature, (d) such Person is not engaged in business or a transaction,
and is not about to engage in business or a transaction, for which such Person’s
property would constitute an unreasonably small capital, and (e) such Person is
able to pay its debts and liabilities, contingent obligations and other
commitments as they mature in the ordinary course of business. The amount of
contingent liabilities at any time shall be computed as the amount that, in the
light of all the facts and circumstances existing at such time, represents the
amount that can reasonably be expected to become an actual or matured
liability.

 

“Specified Obligations”
means Obligations consisting of principal of and interest on the Loans
(including, without limitation, Bankers’ Acceptance Advances), plus
reimbursement obligations owing in respect of amounts drawn under Letters of
Credit and fees in respect thereof.

 

“Spot Rate” for a
currency means the rate determined by the applicable Administrative Agent, the
applicable Domestic L/C Issuer or the applicable Canadian L/C Issuer, to be the
rate quoted by the Person acting in such capacity as the spot rate for the
purchase by such Person of such currency with another currency through its
principal foreign exchange trading office at approximately 11:00 a.m. on
the date two Business Days prior to the date as of which the foreign exchange
computation is made; provided that
the applicable Administrative Agent, the applicable Domestic L/C Issuer or the
applicable Canadian L/C Issuer may obtain such spot rate from another financial
institution designated by the applicable Administrative Agent, the applicable
Domestic L/C Issuer or the applicable Canadian L/C Issuer if the Person acting
in such capacity does not have as of the date of determination a spot buying
rate for any such currency; and provided  further that the
applicable Domestic L/C Issuer or the applicable Canadian L/C Issuer may use
such spot rate quoted on the date as of which the foreign exchange computation
is made 

 

 

in
the case of any Letter of Credit denominated in an Alternative Currency.

 

“SPV” has the meaning
specified in the definition of “Securitization Transaction” set forth in
Section 1.01.

 

“Sterling” and “£”
mean the lawful currency of the United Kingdom.

 

“Subsidiary” of a
Person means a corporation, partnership, joint venture, limited liability
company or other business entity of which a majority of the shares of
securities or other interests having ordinary voting power for the election of
directors or other governing body (other than securities or interests having
such power only by reason of the happening of a contingency) are at the time
beneficially owned, or the management of which is otherwise controlled,
directly, or indirectly through one or more intermediaries, or both, by such
Person. Unless otherwise specified, all references herein to a “Subsidiary” or
to “Subsidiaries” shall refer to a Subsidiary or Subsidiaries of GGC.

 

“Swap Contract” means
(a) any and all rate swap transactions, basis swaps, credit derivative
transactions, forward rate transactions, commodity swaps, commodity options,
forward commodity contracts, equity or equity index swaps or options, bond or
bond price or bond index swaps or options or forward bond or forward bond price
or forward bond index transactions, interest rate options, forward foreign
exchange transactions, cap transactions, floor transactions, collar
transactions, currency swap transactions, cross-currency rate swap
transactions, currency options, spot contracts, or any other similar
transactions or any combination of any of the foregoing (including any options
to enter into any of the foregoing), whether or not any such transaction is
governed by or subject to any master agreement, and (b) any and all
transactions of any kind, and the related confirmations, which are subject to
the terms and conditions of, or governed by, any form of master agreement
published by the International Swaps and Derivatives Association, Inc., any
International Foreign Exchange Master Agreement, or any other master agreement
(any such master agreement, together with any related schedules, a “Master
Agreement”), including any such obligations or liabilities under any Master
Agreement.

 

“Swap Termination Value”
means, in respect of any one or more Swap Contracts, after taking into account
the effect of any legally enforceable netting agreement relating to such Swap
Contracts, (a) for any date on or after the date such Swap Contracts have
been closed out and termination value(s) determined in accordance therewith,
such termination value(s), and (b) for any date prior to the date
referenced in clause (a), the amount(s) determined as the mark-to-market
value(s) for such Swap Contracts, as determined based upon one or more mid-market
or other readily available quotations provided by any recognized dealer in such
Swap Contracts (which may include a Lender or any Affiliate of a Lender).

 

“Synthetic Lease
Obligation” means the monetary obligation of a Person under (a) a so-called
synthetic, off-balance sheet or tax retention lease, or (b) an agreement for
the use or possession of property (including sale and leaseback transactions),
in each case, creating obligations that do not appear on the balance sheet of
such Person but which, upon the application of any Debtor Relief Laws to such
Person, would be characterized as the indebtedness of such Person (without
regard to accounting treatment).

 

“Taxes” means all
present or future taxes, levies, imposts, duties, deductions, withholdings,
assessments, fees or other charges imposed by any Governmental Authority,
including any interest, additions to tax or penalties applicable thereto.

 

 

“Term Loan” has the
meaning specified in Section 2.01(b).

 

“Term Loan Borrowing”
means a borrowing consisting of simultaneous Term Loans of the same Type and,
in the case of Eurodollar Rate Loans, having the same Interest Period made by
each of the Term Loan Lenders pursuant to Section 2.01(b).

 

“Term Loan Commitment”
means, as to each Term Loan Lender, its obligation to make its portion of the
Term Loan to GGC pursuant to Section 2.01(b), in the principal amount
set forth opposite such Term Loan Lender’s name on Schedule 2.01. The
aggregate principal amount of the Term Loan Commitments of all of the Lenders
as in effect on the Closing Date is EIGHT HUNDRED MILLION U.S. Dollars
($800,000,000).

 

“Term Loan Lender”
means any Lender that has funded a portion of the Term Loan and/or purchased a
portion of the Term Loan pursuant to one or more Assignment and Assumptions in
accordance with the terms hereof.

 

“Term Loan Maturity Date”
means October 3, 2013.

 

“Term Note” has the
meaning specified in Section 2.11(a).

 

“Threshold Amount”
means $25,000,000.

 

“Total Canadian Revolving
Outstandings” means the aggregate Outstanding Amount of all Canadian
Revolving Loans and all Canadian L/C Obligations.

 

“Total Domestic Revolving
Outstandings” means the aggregate Outstanding Amount of all Domestic
Revolving Loans and all Domestic L/C Obligations.

 

“Tranche” means a
category of Commitments and Credit Extensions thereunder. For purposes hereof,
each of the following comprises a separate Tranche: (a) the Domestic Revolving
Commitments and the Domestic Revolving Loans, (b) the Canadian Revolving
Commitments and the Canadian Revolving Loans, (c) the Canadian Swing Line
Commitment and Canadian Swing Line Loans and (d) the Term Loan Commitments and
the Term Loan.

 

“Treasury Management
Agreement” means any agreement governing the provision of treasury or cash
management services, including deposit accounts, overdraft, credit or debit
card, funds transfer, automated clearinghouse, zero balance accounts, returned
check concentration, controlled disbursement, lockbox, account reconciliation
and reporting and trade finance services and other cash management services.

 

“Type” means, with
respect to any Loan, its character as a Base Rate Loan or a Eurodollar Rate
Loan.

 

“U.S. Dollar” and “US$”
mean lawful money of the United States.

 

“U.S. Dollar Equivalent”
means, at any time, (a) with respect to any amount denominated in U.S.
Dollars, such amount, and (b) with respect to any amount denominated in
Canadian Dollars, the equivalent amount thereof in U.S. Dollars as determined
by the applicable Administrative Agent or the applicable L/C Issuer, as the
case may be, at such time on the basis of the Spot Rate (determined in respect
of the most recent Revaluation Date) for the purchase of U.S. Dollars with
Canadian Dollars.

 

 

“U.S. Multiemployer Plan”
means any employee benefit plan of the type described in
Section 4001(a)(3) of ERISA, to which GGC or any ERISA Affiliate makes or
is obligated to make contributions, or during the preceding five plan years,
has made or been obligated to make contributions.

 

“U.S. Pension Plan”
means any “employee pension benefit plan” (as such term is defined in
Section 3(2) of ERISA), other than a U.S. Multiemployer Plan, that is
subject to Title IV of ERISA and is sponsored or maintained by GGC or any
ERISA Affiliate or to which GGC or any ERISA Affiliate contributes or has an
obligation to contribute, or in the case of a multiple employer or other plan
described in Section 4064(a) of ERISA, has made contributions at any time
during the immediately preceding five plan years.

 

“U.S. Plan” means any
“employee benefit plan” (as such term is defined in Section 3(3) of ERISA)
established by GGC or, with respect to any such plan that is subject to
Section 412 of the Code or Title IV of ERISA, any ERISA Affiliate.

 

“U.S. Unfunded Pension
Liability” means the excess of a U.S. Pension Plan’s benefit liabilities
under Section 4001(a)(16) of ERISA, over the current value of that U.S.
Pension Plan’s assets, determined in accordance with the assumptions used for
funding that U.S. Pension Plan pursuant to Section 412 of the Code for the
applicable plan year.

 

“United States” and “U.S.”
mean the United States of America.

 

“Unreimbursed Amount”
means the Domestic Unreimbursed Amount and/or the Canadian Unreimbursed Amount,
as appropriate.

 

“Vinyls” means
Georgia Gulf Chemicals & Vinyls, LLC, a Delaware limited liability company.

 

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

 

“Wholly Owned Subsidiary”
means a Subsidiary of GGC, the Equity Interest of which is 100% owned and
controlled, directly or indirectly, by GGC.

 

“2003 Indenture”
means that certain Indenture dated as of December 3, 2003 by and among GGC,
certain subsidiaries of GGC, as guarantors, and SunTrust Bank, as trustee, as
amended or modified from time to time in accordance with the terms hereof and
thereof.

 

“2003 Senior Notes”
means those certain 7 1/8% senior notes of GGC due December 15, 2013 issued
pursuant to the 2003 Indenture.

 

“2003 Senior Notes
Documents” means the 2003 Senior Notes, the 2003 Indenture and all other
documents executed and delivered in connection therewith.

 

“2006 Senior Indenture”
means that certain Indenture dated as of the Closing Date by and among GGC,
certain subsidiaries of GGC, as guarantors, and LaSalle Bank, N.A., as trustee,
as amended or modified from time to time in accordance with the terms hereof
and thereof.

 

“2006 Senior Notes”
means those certain 9.5% senior notes of GGC due 2014 issued 

 

 

pursuant
to the 2006 Senior Indenture.

 

“2006 Senior Notes
Documents” means the 2006 Senior Notes, the 2006 Senior Indenture and all
other documents executed and delivered in respect of the 2006 Senior Notes.

 

“2006 Senior Subordinated
Indenture” means that certain Indenture dated as of the Closing Date by and
among GGC, certain subsidiaries of GGC, as guarantors, and LaSalle Bank, N.A.,
as trustee, as amended or modified from time to time in accordance with the
terms hereof and thereof.

 

“2006 Senior Subordinated
Debt Documents” means the 2006 Senior Subordinated Indenture, the 2006
Senior Subordinated Notes and any and all other documents, instruments and/or
agreements executed and delivered in connection therewith.

 

“2006 Senior Subordinated
Notes” means those certain 10.75% senior subordinated notes of GGC due 2016
issued pursuant to the 2006 Senior Subordinated Indenture.

 

1.02        Other Interpretive Provisions.

 

With reference to this
Agreement and each other Loan Document, unless otherwise specified herein or in
such other Loan Document:

 

(a)           The definitions of terms herein shall apply
equally to the singular and plural forms of the terms defined. Whenever the
context may require, any pronoun shall include the corresponding masculine,
feminine and neuter forms. The words “include,” “includes” and “including”
shall be deemed to be followed by the phrase “without limitation.”  The word “will” shall be construed to
have the same meaning and effect as the word “shall.”  Unless the context requires otherwise,
(i) any definition of or reference to any agreement, instrument or other
document (including any Organization Document) shall be construed as referring
to such agreement, instrument or other document as from time to time amended,
restated, supplemented, extended or otherwise modified (subject to any
restrictions on such amendments, restatements, 
supplements, extensions or modifications set forth herein or in any other
Loan Document), (ii) any reference herein to any Person shall be construed
to include such Person’s successors and assigns, (iii) the words “herein,”
“hereof” and “hereunder,” and words of similar import when used
in any Loan Document, shall be construed to refer to such Loan Document in its
entirety and not to any particular provision thereof, (iv) all references
in a Loan Document to Articles, Sections, Exhibits and Schedules shall be
construed to refer to Articles and Sections of, and Exhibits and Schedules to,
the Loan Document in which such references appear, (v) any reference to
any law shall include all statutory and regulatory provisions consolidating,
amending, replacing, supplementing or interpreting such law and any reference
to any law or regulation shall, unless otherwise specified, refer to such law
or regulation as amended, modified or supplemented from time to time, and
(vi) the words “asset” and “property” shall be construed to
have the same meaning and effect and to refer to any and all tangible and
intangible assets and real and personal properties, including cash, securities,
accounts and contract rights.

 

(b)           In the computation of periods of time from a
specified date to a later specified date, the word “from” means “from
and including;” the words “to” and “until” each mean “to
but excluding;” and the word “through” means “to and including.”

 

 

(c)           Section headings herein and in the other
Loan Documents are included for convenience of reference only and shall not
affect the interpretation of this Agreement or any other Loan Document.

 

1.03        Accounting Terms.

 

(a)           Generally. All accounting terms not specifically or completely defined herein
shall be construed in conformity with, and all financial data (including
financial ratios and other financial calculations) required to be submitted
pursuant to this Agreement shall be prepared in conformity with, GAAP applied
on a consistent basis, as in effect from time to time, applied in a manner
consistent with that used in preparing the GGC Audited Financial Statements, except
as otherwise specifically prescribed herein.

 

(b)           Changes in GAAP. GGC will provide a written summary of
material changes in GAAP and in the consistent application thereof that affect
its financial data and reporting in any material respect with each annual and
quarterly Compliance Certificate delivered in accordance with Section
7.02(b). If at any time any change in GAAP would affect the computation of
any financial ratio or requirement set forth in any Loan Document, and either
GGC or the Required Lenders shall so request, the Domestic Administrative
Agent, the Lenders and GGC shall negotiate in good faith to amend such ratio or
requirement to preserve the original intent thereof in light of such change in
GAAP (subject to the approval of the Required Lenders); provided  that,
until so amended, (i) such ratio or requirement shall continue to be
computed in accordance with GAAP prior to such change therein and (ii) if
a request for such an amendment has been made, GGC shall provide to the
Domestic Administrative Agent and the Lenders financial statements and other
documents required under this Agreement or as reasonably requested hereunder
setting forth a reconciliation between calculations of such ratio or
requirement made before and after giving effect to such change in GAAP.

 

(c)           Pro Forma Basis Calculation. Notwithstanding the foregoing, the parties
hereto acknowledge and agree that all calculations of the financial covenants
in Section 8.11 and the all calculations of the Consolidated Adjusted
Leverage Ratio shall be made on a Pro Forma Basis.

 

1.04        Rounding.

 

Any financial ratios
required to be maintained by GGC pursuant to this Agreement shall be calculated
by dividing the appropriate component by the other component, carrying the
result to one place more than the number of places by which such ratio is
expressed herein and rounding the result up or down to the nearest number (with
a rounding-up if there is no nearest number).

 

1.05        Exchange Rates; Currency Equivalents.

 

(a)           The Domestic Administrative Agent shall
determine the Spot Rates as of each Revaluation Date to be used for calculating
U.S. Dollar Equivalent amounts of Domestic L/C Credit Extensions and
Outstanding Amounts denominated in Canadian Dollars. The Canadian Administrative
Agent shall determine the Spot Rates as of each Revaluation Date to be used for
calculating Canadian Dollar Equivalent amounts of Canadian L/C Credit
Extensions and Outstanding Amounts denominated in Alternative Currencies. Such
Spot Rates shall become effective as of such Revaluation Date and shall be the
Spot Rates employed in converting any amounts between the applicable currencies
until the next Revaluation Date to occur. Except for purposes of financial
statements delivered by Loan Parties hereunder or calculating financial
covenants hereunder or except as otherwise provided herein, the applicable
amount of any 

 

 

currency
for purposes of the Loan Documents shall be such U.S. Dollar Equivalent amount
as so determined by the Domestic Administrative Agent.

 

(b)           Wherever in this Agreement in connection with
a Borrowing, conversion, continuation or prepayment of a Loan, or a Letter of
Credit, an amount, such as a required maximum, minimum or multiple amount, is
expressed in U.S. Dollars or Canadian Dollars, as applicable, but such
Borrowing, Loan or Letter of Credit is denominated in an Alternative Currency,
such amount shall be the relevant Alternative Currency Equivalent,
respectively, of such amount (rounded to the nearest 1,000 units of the applicable
currency), as determined by the applicable Administrative Agent or applicable
L/C Issuer.

 

1.06        Times of Day.

 

Unless otherwise specified,
all references herein to times of day shall be references to Eastern time
(daylight or standard, as applicable).

 

1.07        Letter of Credit Amounts.

 

Unless otherwise specified
herein, the amount of a Letter of Credit at any time shall be deemed to be the
stated amount of such Letter of Credit in effect at such time; provided,
however, that with respect to any Letter of Credit that, by its terms or
the terms of any Issuer Document related thereto, provides for one or more
automatic increases in the stated amount thereof, the amount of such Letter of
Credit shall be deemed to be the maximum stated amount of such Letter of Credit
after giving effect to all such increases, whether or not such maximum stated
amount is in effect at such time.

 

1.08        Canadian Borrower.

 

This Agreement and the other
Loan Documents shall become effective upon the Canadian Borrower and its Subsidiaries
automatically (and without any further action) upon the consummation of the
Royal Acquisition.

 

ARTICLE II

THE COMMITMENTS AND CREDIT EXTENSIONS

 

2.01        Revolving Loans and Term Loan.

 

(a)           Revolving Loans.

 

(i)            Domestic Revolving Loans. Subject to the terms and conditions set
forth herein, each Domestic Revolving Lender severally agrees to make revolving
loans (each such loan, a “Domestic Revolving Loan”) to GGC in U.S.
Dollars from time to time, on any Business Day during the Domestic Availability
Period, in an aggregate amount not to exceed at any time outstanding the amount
of such Domestic Revolving Lender’s Domestic Revolving Commitment; provided,
however, that after giving effect to any Domestic Revolving Borrowing,
(i) the Total Domestic Revolving Outstandings shall not exceed the
Aggregate Domestic Revolving Commitments and (ii) the aggregate
Outstanding Amount of Domestic Revolving Loans of any Domestic Revolving
Lender, plus such Domestic Revolving Lender’s Applicable Percentage of
the Outstanding Amount of all Domestic L/C Obligations shall not exceed such
Domestic Revolving Lender’s Domestic Revolving Commitment. Within the limits of
each Domestic 

 

 

Revolving Lender’s Domestic
Revolving Commitment, and subject to the other terms and conditions hereof, GGC
may borrow under this Section 2.01, prepay under Section 2.05,
and reborrow under this Section 2.01. Domestic Revolving Loans may
be Base Rate Loans or Eurodollar Rate Loans, as further provided herein. All
Borrowings of Domestic Revolving Loans made on the Closing Date shall be made
as Base Rate Loans.

 

(ii)           Canadian Revolving Loans. Subject to the terms and conditions set
forth herein, each Canadian Revolving Lender severally agrees to make revolving
loans (each such loan, a “Canadian Revolving Loan”) to the Canadian
Borrower and GGC in Canadian Dollars or in U.S. Dollars from time to time, on
any Business Day during the Canadian Availability Period, in an aggregate
amount not to exceed at any time outstanding the amount of such Canadian
Revolving Lender’s Canadian Revolving Commitment; provided, however,
that after giving effect to any Canadian Revolving Borrowing, (i) the
Total Canadian Revolving Outstandings shall not exceed the Aggregate Canadian
Revolving Commitments and (ii) the aggregate Outstanding Amount of
Canadian Revolving Loans of any Canadian Revolving Lender, plus such
Canadian Revolving Lender’s Applicable Percentage of the Outstanding Amount of
all Canadian L/C Obligations shall not exceed such Canadian Revolving Lender’s
Canadian Revolving Commitment. Within the limits of each Canadian Revolving
Lender’s Canadian Revolving Commitment, and subject to the other terms and
conditions hereof, GGC and the Canadian Borrower may borrow under this Section 2.01,
prepay under Section 2.05, and reborrow under this Section 2.01.
Canadian Revolving Loans may be Base Rate Loans, Eurodollar Rate Loans or
Bankers’ Acceptance Advances, as further provided herein; provided, however,
all Borrowings of Canadian Revolving Loans made on the Closing Date shall be
made as Base Rate Loans. Notwithstanding any provision herein to the contrary,
all Bankers’ Acceptance Advances shall be denominated in Canadian Dollars. The
Canadian Revolving Lenders will make the Canadian Revolving Loans pursuant to
this Section 2.01 in accordance with Part II of Schedule 2.01.

 

(b)           Term Loan. Subject to the terms and conditions set forth herein, each Term Loan
Lender severally agrees to make its portion of a term loan (the “Term Loan”)
to GGC in U.S. Dollars on the Closing Date in an amount not to exceed such Term
Loan Lender’s Term Loan Commitment. Amounts repaid on the Term Loan may not be
reborrowed. The Term Loan may consist of Base Rate Loans or Eurodollar Rate
Loans, as further provided herein; provided, however, all Term
Loan Borrowings made on the Closing Date shall be made as Base Rate Loans.

 

2.02        Borrowings, Conversions and Continuations of Loans.

 

(a)           (i)            With respect to Domestic Revolving Loans and
the Term Loan, each Borrowing, each conversion of Domestic Revolving Loans from
one Type to the other, and each continuation of Eurodollar Rate Loans shall be
made upon GGC’s irrevocable notice to the Domestic Administrative Agent, which
may be given by telephone. Each such notice must be received by the Domestic Administrative
Agent not later than 12:00 p.m. (A) three Business Days prior to the
requested date of any Borrowing of, conversion to or continuation of,
Eurodollar Rate Loans that are Domestic Revolving Loans denominated in U.S.
Dollars or of any conversion of Eurodollar Rate Loans to Base Rate Loans and
(B) on the requested date of any Domestic Revolving Borrowing of Base Rate
Loans. Each telephonic notice by GGC pursuant to this Section 2.02(a)(i)
must be confirmed promptly by delivery to the Domestic Administrative Agent of
a written Loan Notice, appropriately completed and signed by a Responsible
Officer of GGC, or a Person certified to the Domestic Administrative Agent in
writing by a Responsible Officer of 

 

 

GGC
to have been authorized to sign and deliver Loan Notices on behalf of GGC. Each
Borrowing of, conversion to or continuation of Eurodollar Rate Loans that are
Domestic Revolving Loans shall be in a principal amount of US$5,000,000 or a
whole multiple of US$1,000,000 in excess thereof. Except as provided in Sections 2.03(c),
each Borrowing of, or conversion to, Base Rate Loans that are Domestic
Revolving Loans shall be in a principal amount of US$500,000 or a whole
multiple of US$250,000 in excess thereof.

 

(ii)           With respect to Canadian Revolving Loans,
each Borrowing, each conversion of Canadian Revolving Loans from one Type to
the other, each conversion of Base Rate Loans to Bankers’ Acceptance Advances,
and each continuation of Eurodollar Rate Loans or Bankers’ Acceptance Advances
shall be made upon the applicable Borrower’s irrevocable notice to the Canadian
Administrative Agent, which may be given by telephone. Each such notice must be
received by the Canadian Administrative Agent not later than (A)12:00 p.m.
three Business Days prior to the requested date of any Borrowing of, conversion
to or continuation of, Eurodollar Rate Loans that are Canadian Revolving Loans
denominated in Canadian Dollars or of any conversion of Eurodollar Rate Loans
to Base Rate Loans, (B) 12:00 p.m. three Business Days prior to the
requested date of any Borrowing of, or continuation of, any Bankers’ Acceptance
Advance or conversion of any Base Rate Loan to Banker Acceptance Advance, (C)
12:00 p.m. four Business Days prior to the requested date of any Borrowing of,
conversion to or continuation of, Eurodollar Rate Loans that are Canadian
Revolving Loans denominated in U.S. Dollars, (D) 10:00 a.m. on the requested
date of Canadian Revolving Borrowing of Base Rate Loans denominated in Canadian
Dollars and (E) 12:00 p.m. one Business Day prior to the requested date of any
Canadian Revolving Borrowing of Base Rate Loans denominated in U.S. Dollars. Each
telephonic notice by the applicable Borrower pursuant to this Section 2.02(a)(ii)
must be confirmed promptly by delivery to the Canadian Administrative Agent of
a written Loan Notice, appropriately completed and signed by a Responsible
Officer of the applicable Borrower or a Person certified to the Canadian
Administrative Agent in writing by a Responsible Officer of the applicable
Borrower to have been authorized to sign and deliver Loan Notices on behalf of
such Borrower. Each Borrowing of, conversion to or continuation of Eurodollar
Rate Loans that are Canadian Revolving Loans denominated in Canadian Dollars
shall be in a principal amount of CAN$5,000,000 or a whole multiple of
CAN$1,000,000 in excess thereof, and each Borrowing of, conversion to or
continuation of Eurodollar Rate Loans that are Canadian Revolving Loans
denominated in U.S. Dollars shall be in a principal amount of US$5,000,000 or a
whole multiple of US$1,000,000 in excess thereof. Except as provided in Sections 2.03(c),
each Borrowing of, or conversion to, Base Rate Loans that are Canadian
Revolving Loans denominated in Canadian Dollars shall be in a principal amount
of CAN$1,000,000 or a whole multiple of CAN$500,000 in excess thereof, and each
Borrowing of, conversion to or continuation of Base Rate Loans that are
Canadian Revolving Loans denominated in U.S. Dollars shall be in a principal
amount of US$1,000,000 or a whole multiple of US$500,000 in excess thereof. Each
Canadian Revolving Loan which is a Bankers’ Acceptance Advance shall be in a
principal amount of CAN$5,000,000 or a whole multiple of CAN$1,000,000 in
excess thereof. If the date upon which a Base Rate Loan that is a Canadian
Revolving Loan is to be converted to a Banker’s Acceptance Advance is not a
Business Day, then such conversion shall be made on the next succeeding
Business Day and during the period from such last day of a BA Period and during
the period to such succeeding Business Day such Canadian Revolving Loan shall
bear interest as if it were a Base Rate Loan.

 

(b)           Each Loan Notice (whether telephonic or
written) shall specify (i) the applicable 

 

 

Borrower,
(ii) whether the applicable Borrower is requesting a Domestic Revolving
Borrowing, a Canadian Revolving Borrowing, a Term Loan Borrowing, a conversion
of the Term Loan or the Revolving Loans from one Type to the other, or a
continuation of Eurodollar Rate Loans, (iii) the requested date of the
Borrowing, conversion or continuation, as the case may be (which shall be a
Business Day), (iv) the principal amount of Loans to be borrowed,
converted or continued, (v) the Type of Loans to be borrowed or to which
existing Loans are to be converted, (vi) with respect to any Canadian Revolving
Borrowing, the currency of the Loans to be borrowed and whether such Canadian
Revolving Borrowing shall be comprised of Bankers’ Acceptance Advances, (vii)
if applicable, the duration of the Interest Period with respect thereto, and
(viii) if Bankers’ Acceptance Advances are requested, the BA Period therefor. If
GGC or the Canadian Borrower fails to specify a currency in a Loan Notice
requesting a Canadian Revolving Borrowing, then the Canadian Revolving Loans so
requested shall be made in Canadian Dollars. If a Borrower fails to specify a
Type of Loan in a Loan Notice or if a Borrower fails to give a timely notice
requesting a conversion or continuation, then the applicable Loans shall be
made as, or converted to, Base Rate Loans. Any such automatic conversion to
Base Rate Loans shall be effective as of the last day of the Interest Period
then in effect with respect to the applicable Eurodollar Rate Loans or last day
of the BA Period then in effect with respect to the Bankers’ Acceptance
Advances. If a Borrower requests a Borrowing of, conversion to, or continuation
of Eurodollar Rate Loans in any such Loan Notice, but fails to specify an
Interest Period, it will be deemed to have specified an Interest Period of one
month. If the Canadian Borrower requests a Bankers’ Acceptance Advance, but
fails to specify a BA Period, it will be deemed to have specified a BA Period
of one month.

 

(c)           Following receipt of a Loan Notice, the
Domestic Administrative Agent shall promptly notify each applicable Lender of
the amount of its Applicable Percentage of the applicable Loans, and if no
timely notice of a conversion or continuation is provided by GGC, the Domestic
Administrative Agent shall notify each applicable Lender of the details of any
automatic conversion to Base Rate Loans, in each case as described in the
preceding subsection. Following receipt of a Loan Notice, the Canadian
Administrative Agent shall promptly notify each applicable Lender of the amount
of its Applicable Percentage of the applicable Loans, and if no timely notice
of a conversion or continuation is provided by GGC or the Canadian Borrower,
the Canadian Administrative Agent shall notify each applicable Lender of the
details of any automatic conversion to Base Rate Loans, in each case as
described in the preceding subsection. In the case of any Domestic Revolving
Borrowing, each Domestic Revolving Lender shall make the amount of its Loan
available to the Domestic Administrative Agent in immediately available funds
at the Domestic Administrative Agent’s Office not later than 1:00 p.m. on the
Business Day specified in the applicable Loan Notice. In the case of any
Canadian Revolving Borrowing, each Canadian Revolving Lender shall make the
amount of its Loan available to the Canadian Administrative Agent in
immediately available funds at the Canadian Administrative Agent’s Office for
the applicable currency not later than 1:00 p.m. (Toronto time), on the
Business Day specified in the applicable Loan Notice. Upon satisfaction of the
applicable conditions set forth in Section 5.02 (and, if such Borrowing
is the initial Credit Extension, Section 5.01), the applicable
Administrative Agent shall make all funds so received available to the
applicable Borrower in like funds as received by the applicable Administrative
Agent either by (i) crediting the account of the applicable Borrower on
the books of Bank of America (including Bank of America, acting through its
Canada branch, as applicable) with the amount of such funds or (ii) wire
transfer of such funds, in each case in accordance with instructions provided
to (and reasonably acceptable to) such Administrative Agent by the applicable
Borrower; provided, however, (1) that if, on the date of a
Borrowing of Domestic Revolving Loans, there are Domestic L/C Borrowings
outstanding, then the proceeds of such Domestic Revolving Borrowing, first,
shall be applied to the payment in full of any such Domestic L/C Borrowings, 

 

 

and
second, shall be made available to GGC as provided above and (2) that
if, on the date of a Borrowing of Canadian Revolving Loans, there are Canadian
L/C Borrowings outstanding, then the proceeds of such Canadian Revolving
Borrowing, first, shall be applied to the payment in full of any such
Canadian L/C Borrowings, and second, shall be made available to the
applicable Borrower as provided above.

 

(d)           Except as otherwise provided herein, (i) a
Eurodollar Rate Loan may be continued or converted only on the last day of an
Interest Period for such Eurodollar Rate Loan and (ii) a Bankers’ Acceptance
Advance may be continued or converted only on the last day of a BA Period for
such Bankers’ Acceptance Advance. During the existence of a Default or Event of
Default, (i) no Loans may be converted to or continued as Eurodollar Rate Loans
or Bankers’ Acceptance Advances and (ii) the Required Canadian Revolving
Lenders may demand any or all of the then outstanding Eurodollar Rate Loans
denominated in U.S. Dollars be redenominated into Canadian Dollars.

 

(e)           The applicable Administrative Agent shall
promptly notify the applicable Borrower and the applicable Lenders of the
interest rate applicable to any Interest Period for Eurodollar Rate Loans upon
determination of such interest rate. At any time that Base Rate Loans are
outstanding, the applicable Administrative Agent shall notify the applicable
Borrower and the applicable Lenders of any change in prime rate as determined
by the applicable Administrative Agent used in determining the Base Rate
promptly following the public announcement of such change.

 

(f)            After giving effect to all Borrowings, all
conversions of Loans from one Type to the other, and all continuations of Loans
as the same Type, there shall not be more than ten Interest Periods in effect
with respect to all Loans, other than Bankers’ Acceptance Advances.

 

(g)           Funding of Bankers Acceptances.

 

(i)            Subject to the
limitations contained in Section 2.01(a)(i), Section 2.02(a)(ii),
Section 2.02(b) and this Section 2.02(g), if the Canadian
Administrative Agent receives from the Canadian Borrower a Loan Notice
requesting a Bankers’ Acceptance Advance or an extension or conversion of a
Base Rate Loan into a Bankers’ Acceptance Advance, the Canadian Administrative
Agent shall notify each of the Canadian Revolving Lenders promptly on the third
Business Day prior to the date of such requested borrowing of such request
except that, if the Face Amount of a Bankers’ Acceptance or Acceptance Note
which would otherwise be accepted or purchased by a Canadian Revolving Lender
would not be in the amount of CAN$100,000, or an integral multiple thereof,
such Face Amount shall be increased or reduced by the Canadian Administrative
Agent in its sole and unfettered discretion to the nearest integral multiple of
CAN$100,000. Each BA Lender or Acceptance Lender, as applicable, shall, not
later than 12:00 noon (Toronto time) on the date of each Bankers’ Acceptance
Advance under the Canadian Revolving Loan, subject to this Section 2.02(g)
and Section 2.02(a)(ii), purchase Bankers’ Acceptances or
Acceptance Notes of the Canadian Borrower which are presented to it for
acceptance or purchase and which have an aggregate Face Amount equal to such BA
Lender’s or Acceptance Lender’s Applicable Percentage of the total Bankers’
Acceptance Advance on such date. Concurrent with the acceptance or purchase of
Bankers’ Acceptances or Acceptance Notes of the Canadian Borrower as aforesaid,
each BA Lender or Acceptance Lender, as applicable, shall make available to the
Canadian Administrative Agent its pro rata portion of the Notional BA Proceeds
with respect to such Bankers’ Acceptance. The Canadian Administrative Agent
shall, upon 

 

 

fulfillment by the Canadian Borrower of the
conditions set out in Section 5.01 or Section 5.02, as
applicable, make such Notional BA Proceeds available to the Canadian Borrower
on the date of such Bankers’ Acceptance Advance by wiring the funds available to the Canadian
Administrative Agent by the Canadian Revolving Lenders and in like funds as
received by the Canadian Administrative Agent in accordance with instructions
provided to (and reasonably acceptable to) the Canadian Administrative Agent by
the Canadian Borrower.

 

(ii)           Acceptance Fees. With
respect to each draft and Acceptance Note of the Canadian Borrower accepted or
issued pursuant hereto, the Canadian Borrower shall pay to the Canadian
Administrative Agent on behalf of the Canadian Revolving Lenders, in advance,
an acceptance fee denominated in Canadian Dollars calculated at the rate per
annum, on the basis of a year of 365 days or 366 days, as the case may be,
equal to the BA Rate plus the Applicable Rate for Bankers’ Acceptance Advances
on the Face Amount of such Bankers’ Acceptance or the face amount of such
Acceptance Note, as applicable for its term, being the actual number of days in
the period commencing on the date of acceptance of the Canadian Borrower’s
draft or date of issuance of such Acceptance Note and ending on, but excluding
the maturity date of, the Bankers’ Acceptance or Acceptance Note. Such acceptance
fees shall be paid by the Canadian Borrower by deduction of the amount thereof
from what would otherwise be Notional BA Proceeds funded pursuant to Section 2.02(g).

 

(iii)          Safekeeping of Drafts
and Power of Attorney.

 

(A)          The BA Lenders agree
that, in respect of the safekeeping of executed drafts of the Canadian Borrower
which are delivered to them for acceptance hereunder, they shall exercise the
same degree of care that the BA Lenders give to their own property, provided
that the BA Lenders shall not be deemed to be insurers thereof.

 

(B)           To facilitate
availment of Bankers’ Acceptances, the Canadian Borrower hereby appoints each
BA Lender as its attorney to sign and endorse on its behalf (in accordance with
a Loan Notice relating to Bankers’ Acceptances) in handwriting or by facsimile
or mechanical signature, as and when deemed necessary by such BA Lender, blank
forms of Bankers’ Acceptances in the form required by the applicable BA Lender.
The Canadian Borrower recognizes and agrees that all Bankers’ Acceptances so
signed or endorsed on its behalf by the a BA Lender shall bind the Canadian
Borrower as fully and effectually as if signed in the handwriting of and duly
issued by the proper signing officers of the Canadian Borrower. The BA Lenders
are hereby authorized (in accordance with a Loan Notice relating to Bankers’
Acceptances) to issue such Bankers’ Acceptances endorsed in blank in such face
amounts as may be determined by them; provided that the aggregate amount
thereof does not exceed the aggregate amount of Bankers’ Acceptances required
to be accepted and purchased by such BA Lenders. Each BA Lender shall not be
liable for any damage, loss or other claim arising by reason of any loss or
improper use of any such instrument except the gross negligence or willful
misconduct of the applicable BA Lender or its officers, employees, agents or
representatives. The applicable BA Lender shall maintain a record with respect
to Bankers’ Acceptances (a) received by it in blank hereunder,
(b) voided by it for any reason, (c) accepted and purchased by it
hereunder and (d) cancelled at their respective maturities.

 

 

(iv)          Term and Interest
Periods. The term of any Bankers’ Acceptance or Acceptance Note shall be
specified in the draft and in the Loan Notice related thereto and the term of
any Bankers’ Acceptance and the term of any Acceptance Note shall be for a BA
Period, unless otherwise agreed to by the Canadian Administrative Agent. The
term of each Bankers’ Acceptance or Acceptance Note shall mature on a Business
Day. No Bankers’ Acceptance or Acceptance Note shall have a maturity date after
the Revolving Loan Maturity Date.

 

(v)           Payment on Maturity. The
Canadian Borrower shall pay to the Canadian Administrative Agent, for the
account of the BA Lenders or Acceptance Lenders, as applicable, on the maturity
date of any Bankers’ Acceptance or Acceptance Note issued by the Canadian
Borrower an amount equal to the Face Amount of such maturing Bankers’
Acceptance or the face amount of such Acceptance Note, as the case may be;
provided that the Canadian Borrower may, at its option, so reimburse the BA
Lenders or Acceptance Lenders, as applicable, in whole or in part, by
delivering to the Canadian Administrative Agent no later than 12:00 noon
(Toronto time) three (3) Business Days’ prior to the maturity date of a
maturing Bankers’ Acceptance or Acceptance Note, as the case may be, a Loan
Notice specifying the term of the Bankers’ Acceptance or the Acceptance Note,
as the case may be, and presenting a draft or Acceptance Note to the BA Lenders
or Acceptance Lenders, as applicable for acceptance and purchase resulting, in
the case of reimbursement in whole by replacement Bankers’ Acceptance or
Acceptance Note, in the aggregate equal to the Face Amount of the maturing Bankers’
Acceptance or face amount of the maturing Acceptance Note. In the event that
the Canadian Borrower fails to deliver a Loan Notice and fails to make payment
to the Canadian Administrative Agent in respect of the maturing Bankers’
Acceptance Advance, the Face Amount of the maturing Bankers’ Acceptances and
the face amount of any Acceptance Note forming part of such Bankers’ Acceptance
Advance shall be deemed to be converted to a Canadian Revolving Loan accruing
interest at the Base Rate on the relevant maturity date.

 

(vi)          Waiver of Days of
Grace. The Canadian Borrower renounces and shall not claim any days of grace
for the payment of any Bankers’ Acceptance or Acceptance Notes.

 

(vii)         Special Provisions
Relating to Acceptance Notes.

 

(A)          The Canadian Borrower
and each Canadian Revolving Lender hereby acknowledge and agree that from time
to time certain Canadian Revolving Lenders may not be authorized to or may, as
a matter of general corporate policy, elect not to accept and purchase Bankers’
Acceptances, and the Canadian Borrower and each Canadian Revolving Lender agree
that any such Canadian Revolving Lender may purchase Acceptance Notes of the
Canadian Borrower in accordance with the provisions of Section 2.02(g)(vii)(B)
in lieu of accepting and purchasing Bankers’ Acceptances for its account.

 

(B)           In the event that any
Canadian Revolving Lender described in Section 2.02(g)(vii)(A)
above is unable to, or elects as a matter of general corporate policy not to,
accept Bankers’ Acceptances hereunder, such Canadian Revolving Lender shall not
be required to accept Bankers’ Acceptances hereunder, but rather, if the
Canadian Borrower requests the acceptance of such 

 

 

Bankers’ Acceptances, then the Canadian
Borrower shall deliver to such BA Lender non-interest bearing promissory notes
(each, an “Acceptance Note”) of the Borrower, substantially in the form
of Exhibit B-5, having the same maturity as the Bankers’ Acceptances to
be accepted and in an aggregate face amount equal to the Face Amount of such
Bankers’ Acceptances. Each such Acceptance Lender hereby agrees to purchase
Acceptance Notes from the Canadian Borrower at a purchase price equal to the
Notional BA Proceeds which would have been applicable if a Bankers’ Acceptance
draft had been accepted by it and such Acceptance Notes shall be governed by
the provisions of this Section 2.02(g) as if they were Bankers’
Acceptances.

 

Notwithstanding the foregoing, unless the
Acceptance Lender otherwise notifies the Canadian Borrower in writing, in lieu
of receiving delivery of Acceptance Notes, such Acceptance Notes shall be
uncertificated and Acceptance Notes shall be evidenced by the account of the
Canadian Revolving Lenders.

 

(viii)        No Market. If the
Canadian Administrative Agent determines in good faith and notifies the
Canadian Borrower in writing that, by reason of circumstances affecting the
Canadian money market, there is no market for Bankers’ Acceptances, then the
right of the Canadian Borrower to request Bankers’ Acceptance Advances shall be
suspended until the Canadian Administrative Agent determines that the
circumstances causing such suspension no longer exists and the Canadian
Administrative Agent so notifies the Canadian Borrower. In such circumstances,
any Loan Notice for a Bankers’ Acceptance Advance which is outstanding shall be
cancelled and the Bankers’ Acceptance Advance requested therein shall, at the
option of the Canadian Borrower, either not be made or be made as a Eurodollar
Rate Loan.

 

(h)           Collateralization of Bankers’ Acceptances. With respect to the prepayment or cash
collateralization of unmatured Bankers’ Acceptances pursuant to Section 2.05
(it being acknowledged that any requirement to pay or prepay Bankers’
Acceptances prior to their maturity shall be construed as a requirement to provide
cash collateral under this provision), the Canadian Borrower shall provide for
the funding of such unmatured Bankers’ Acceptances by paying to and depositing
in a collateral account on terms reasonably satisfactory to the Canadian
Administrative Agent and the Borrowers cash collateral for each such unmatured
Bankers’ Acceptances in an amount equal to the principal amount at maturity of
such Bankers’ Acceptances. Such collateral account shall be held by the
Canadian Administrative Agent as security for the obligations of the Canadian
Borrower in relation to such Bankers’ Acceptances and the security of the
Canadian Administrative Agent thereby created shall rank in priority to all
other Liens and adverse claims against such cash collateral. Such cash collateral
shall be applied to satisfy pro tanto the obligations of the Canadian Borrower
for such Bankers’ Acceptances as they mature and the Canadian Administrative
Agent is hereby irrevocably directed by the Canadian Borrower to apply any such
cash collateral to such maturing Bankers’ Acceptances. Amounts held in such
collateral account may not be withdrawn by the Canadian Borrower. If after
maturity of the Bankers’ Acceptances for which such funds are held and
application by the Canadian Administrative Agent of the amounts in such
collateral accounts to satisfy the obligations of the Canadian Borrower
hereunder with respect to the Bankers’ Acceptances being repaid, any excess
remains, such excess together with any accrued interest thereon shall be
promptly paid by the Canadian Administrative Agent to the Canadian Borrower so
long as no Default or Event of Default is then continuing.

 

 

2.03        Letters of Credit.

 

(a)           The Letter of Credit Commitment.

 

(i)            Subject to the terms and conditions set forth
herein, (A) the applicable Domestic L/C Issuer agrees, in reliance upon
the agreements of the Domestic Revolving Lenders set forth in this Section 2.03,
(1) from time to time on any Business Day during the period from the
Closing Date until the Letter of Credit Expiration Date, to issue Domestic
Letters of Credit denominated in U.S. Dollars or in Canadian Dollars for the
account of GGC or any of its Subsidiaries, and to amend or extend Domestic
Letters of Credit previously issued by it, in accordance with subsection (b)
below, and (2) to honor drawings under the Domestic Letters of Credit; and
(B) the Domestic Revolving Lenders severally agree to participate in
Domestic Letters of Credit issued for the account of GGC or any of its
Subsidiaries and any drawings thereunder; provided that after giving
effect to any Domestic L/C Credit Extension with respect to any Domestic Letter
of Credit, (x) the Total Domestic Revolving Outstandings shall not exceed
the Aggregate Domestic Revolving Commitments, (y) the aggregate Outstanding
Amount of the Domestic Revolving Loans of any Domestic Revolving Lender, plus
such Domestic Revolving Lender’s Applicable Percentage of the Outstanding
Amount of all Domestic L/C Obligations shall not exceed such Domestic Revolving
Lender’s Domestic Revolving Commitment and (z) the Outstanding Amount of the
Domestic L/C Obligations shall not exceed the Domestic Letter of Credit
Sublimit. Each request by GGC for the issuance or amendment of a Domestic
Letter of Credit shall be deemed to be a representation by GGC that the
Domestic L/C Credit Extension so requested complies with the conditions set
forth in the proviso to the preceding sentence. Within the foregoing limits,
and subject to the terms and conditions hereof, GGC’s ability to obtain
Domestic Letters of Credit shall be fully revolving, and accordingly GGC may,
during the foregoing period, obtain Domestic Letters of Credit to replace
Domestic Letters of Credit that have expired or that have been drawn upon and
reimbursed. All Existing Domestic Letters of Credit shall be deemed to have
been issued pursuant hereto, and from and after the Closing Date shall be
subject to and governed by the terms and conditions hereof.

 

(ii)           Subject to the terms and conditions set forth
herein, (A) the applicable Canadian L/C Issuer agrees, in reliance upon
the agreements of the Canadian Revolving Lenders set forth in this Section 2.03,
(1) from time to time on any Business Day during the period from the
Closing Date until the Letter of Credit Expiration Date, to issue Canadian
Letters of Credit denominated in Canadian Dollars or in an Alternative Currency
for the account of the applicable Borrower or any of its Subsidiaries, and to
amend or extend Canadian Letters of Credit previously issued by it, in
accordance with subsection (b) below, and (2) to honor drawings under the
Canadian Letters of Credit; and (B) the Canadian Revolving Lenders
severally agree to participate in Canadian Letters of Credit issued for the
account of the applicable Borrower or any of its Subsidiaries and any drawings
thereunder; provided that after giving effect to any Canadian L/C Credit
Extension with respect to any Canadian Letter of Credit, (x) the Total
Canadian Revolving Outstandings shall not exceed the Aggregate Canadian
Revolving Commitments, (y) the aggregate Outstanding Amount of the
Canadian Revolving Loans of any Canadian Revolving Lender, plus such
Canadian Revolving Lender’s Applicable Percentage of the Outstanding Amount of
all Canadian L/C Obligations shall not exceed such Canadian Revolving Lender’s
Canadian Revolving Commitment and (z) the Outstanding Amount of the Canadian
L/C Obligations shall not exceed the Canadian Letter of Credit Sublimit. Each
request by a Borrower for the 

 

 

issuance or amendment of a
Canadian Letter of Credit shall be deemed to be a representation by such
Borrower that the Canadian L/C Credit Extension so requested complies with the
conditions set forth in the proviso to the preceding sentence. Within the
foregoing limits, and subject to the terms and conditions hereof, the
applicable Borrower’s ability to obtain Canadian Letters of Credit shall be
fully revolving, and accordingly such Borrower may, during the foregoing
period, obtain Canadian Letters of Credit to replace Canadian Letters of Credit
that have expired or that have been drawn upon and reimbursed. All Existing
Canadian Letters of Credit shall be deemed to have been issued pursuant hereto,
and from and after the Closing Date shall be subject to and governed by the
terms and conditions hereof.

 

(iii)          Neither the applicable Domestic L/C Issuer
nor the applicable Canadian L/C Issuer shall issue any Letter of Credit, if:

 

(A)          subject to Section 2.03(b)(iii),
the expiry date of such requested Letter of Credit would occur more than twelve
months after the date of issuance or last extension, unless the Required
Domestic Revolving Lenders or the Required Canadian Revolving Lenders, as
applicable, have approved such expiry date; or

 

(B)           the expiry date of such requested Letter of
Credit would occur after the Letter of Credit Expiration Date, unless (I) the
Domestic Revolving Lenders or the Canadian Revolving Lenders, as applicable,
have approved such expiry date or (II) the applicable Borrower shall, prior to
the issuance of any such Letter of Credit, Cash Collateralize such Letter of
Credit.

 

(iv)          Neither the applicable Domestic L/C Issuer
nor the applicable Canadian L/C Issuer shall issue any Letter of Credit, if:

 

(A)          any order, judgment or decree of any
Governmental Authority or arbitrator shall by its terms purport to enjoin or
restrain such L/C Issuer from issuing such Letter of Credit, or any Law
applicable to such L/C Issuer or any request or directive (whether or not
having the force of law) from any Governmental Authority with jurisdiction over
such L/C Issuer shall prohibit, or request that such L/C Issuer refrain from,
the issuance of letters of credit generally or such Letter of Credit in
particular or shall impose upon such L/C Issuer with respect to such Letter of
Credit any restriction, reserve or capital requirement (for which such L/C
Issuer is not otherwise compensated hereunder) not in effect on the Closing
Date, or shall impose upon such L/C Issuer any unreimbursed loss, cost or
expense which was not applicable on the Closing Date and which such L/C Issuer
in good faith deems material to it;

 

(B)           the issuance of such Letter of Credit would
violate one or more policies of such L/C Issuer applicable to borrowers
generally;

 

(C)           except as otherwise agreed by the applicable
Administrative Agent and the applicable L/C Issuer, such Letter of Credit is
(i) a Domestic Letter of Credit, in an initial stated amount less than
US$10,000 (or such lesser amount as agreed to by the applicable L/C Issuer) and
(ii) a Canadian Letter of Credit, in an initial stated amount less than
CAN$10,000 (or such lesser amount as agreed to by the applicable L/C Issuer);

 

 

(D)          (i) with respect to any Domestic Letter of
Credit, such Domestic Letter of Credit is to be denominated in a currency other
than U.S. Dollars or Canadian Dollars or (ii) with respect to any Canadian
Letter of Credit, such Canadian Letter of Credit is to be denominated in a
currency other than Canadian Dollars or an Alternative Currency;

 

(E)           such L/C Issuer does not as of the issuance
date of such requested Letter of Credit issue Letters of Credit in the
requested currency; or

 

(F)           a default of any Domestic Revolving Lender’s
or Canadian Revolving Lender’s obligations, as applicable, to fund under Section 2.03(c)
exists or any Domestic Revolving Lender or Canadian Revolving Lender, as
applicable, is at such time a Defaulting Lender hereunder, unless the
applicable L/C Issuer has entered into satisfactory arrangements with the
applicable Borrower or such Lender to eliminate such L/C Issuer’s risk with respect
to such Revolving Lender.

 

(v)           Neither the applicable Domestic L/C Issuer
nor the applicable Canadian L/C Issuer shall amend any Letter of Credit if such
L/C Issuer would not be permitted at such time to issue such Letter of Credit
in its amended form under the terms hereof.

 

(vi)          Neither the applicable Domestic L/C Issuer
nor the applicable Canadian L/C Issuer shall be under any obligation to amend
any Letter of Credit if the beneficiary of such Letter of Credit does not
accept the proposed amendment to such Letter of Credit.

 

(vii)         The applicable Domestic L/C Issuer shall act
on behalf of the Domestic Revolving Lenders with respect to any Domestic
Letters of Credit issued by it and the documents associated therewith. The
applicable Canadian L/C Issuer shall act on behalf of the Canadian Revolving
Lenders with respect to any Canadian Letters of Credit issued by it and the
documents associated therewith. Each L/C Issuer shall have all of the benefits
and immunities (A) provided to each Administrative Agent in Article X
with respect to any acts taken or omissions suffered by such L/C Issuer in
connection with Letters of Credit issued by it or proposed to be issued by it
and Issuer Documents pertaining to such Letters of Credit as fully as if the
term “Administrative Agent” as used in Article X included such L/C
Issuer with respect to such acts or omissions, and (B) as additionally provided
herein with respect to the L/C Issuers.

 

(b)           Procedures for Issuance and Amendment of
Letters of Credit; Auto-Extension Letters of Credit.

 

(i)            Each Letter of Credit shall be issued or
amended, as the case may be, upon the request of the applicable Borrower
delivered to the applicable Domestic L/C Issuer or the applicable Canadian L/C
Issuer, as appropriate (with a copy to the applicable Administrative Agent) in
the form of a Domestic Letter of Credit Application or a Canadian Letter of
Credit Application, as applicable, appropriately completed and signed by a
Responsible Officer of the applicable Borrower. Domestic Letter of Credit
Applications must be received by the applicable Domestic L/C Issuer and the
Domestic Administrative Agent not later than 11:00 a.m. at least two
Business Days (or such later date and time as the Domestic Administrative Agent
and the applicable Domestic L/C Issuer may agree in a particular instance in
their sole discretion) prior to the proposed 

 

 

issuance date or date of
amendment, as the case may be. In the case of a request for an initial issuance
of a Domestic Letter of Credit, such Domestic Letter of Credit Application
shall specify in form and detail satisfactory to the applicable Domestic L/C
Issuer: (A) the proposed issuance date of the requested Domestic Letter of
Credit (which shall be a Business Day); (B) the amount and requested currency
thereof and in the absence of specification of currency shall be deemed a
request for a Domestic Letter of Credit denominated in U.S. Dollars;
(C) the expiry date thereof; (D) the name and address of the
beneficiary thereof; (E) the documents to be presented by such beneficiary
in case of any drawing thereunder; (F) the full text of any certificate to
be presented by such beneficiary in case of any drawing thereunder; and
(G) such other matters as the applicable Domestic L/C Issuer may require. Canadian
Letter of Credit Applications must be received by the applicable Canadian L/C
Issuer and the Canadian Administrative Agent not later than 11:00 a.m.
(Toronto time) at least two Business Days (or such later date and time as the
Canadian Administrative Agent and the applicable Canadian L/C Issuer may agree
in a particular instance in their sole discretion) prior to the proposed
issuance date or date of amendment, as the case may be. In the case of a
request for an initial issuance of a Canadian Letter of Credit, such Canadian
Letter of Credit Application shall specify in form and detail satisfactory to
the applicable Canadian L/C Issuer: (A) the proposed issuance date of the
requested Canadian Letter of Credit (which shall be a Business Day); (B) the
amount and requested currency thereof and in the absence of specification of
currency shall be deemed a request for a Canadian Letter of Credit denominated
in Canadian Dollars; (C) the expiry date thereof; (D) the name and
address of the beneficiary thereof; (E) the documents to be presented by
such beneficiary in case of any drawing thereunder; (F) the full text of
any certificate to be presented by such beneficiary in case of any drawing
thereunder; and (G) such other matters as the applicable Canadian L/C Issuer
may require. In the case of a request for an amendment of any outstanding
Letter of Credit, such Letter of Credit Application shall specify in form and
detail satisfactory to the applicable L/C Issuer (1) the Letter of Credit
to be amended; (2) the proposed date of amendment thereof (which shall be
a Business Day); (3) the nature of the proposed amendment; and
(4) such other matters as such L/C Issuer may require. Additionally, the
applicable Borrower shall furnish to the applicable L/C Issuer and the applicable
Administrative Agent such other documents and information pertaining to such
requested Letter of Credit issuance or amendment, including any Issuer
Documents, as the applicable L/C Issuer or the applicable Administrative Agent
may reasonably require.

 

(ii)           Promptly after receipt of any Letter of
Credit Application, the applicable L/C Issuer will confirm with the applicable
Administrative Agent (by telephone or in writing) that such Administrative
Agent has received a copy of such Letter of Credit Application from the
applicable Borrower and, if not, the applicable L/C Issuer will provide such
Administrative Agent with a copy thereof. Unless the applicable L/C Issuer has
received written notice from any Lender, the applicable Administrative Agent or
any Loan Party, at least one Business Day prior to the requested date of
issuance or amendment of the applicable Letter of Credit, that one or more
applicable conditions contained in Article V shall not be
satisfied, then, subject to the terms and conditions hereof, such L/C Issuer
shall, on the requested date, issue a Letter of Credit for the account of the
applicable Borrower (or one of its Subsidiaries) or enter into the applicable
amendment, as the case may be, in each case in accordance with such L/C Issuer’s
usual and customary business practices. Immediately upon the issuance of each
Domestic Letter of Credit, each Domestic Revolving Lender shall be deemed to,
and hereby irrevocably and unconditionally agrees to, purchase from the
applicable Domestic L/C 

 

 

Issuer a risk participation
in such Domestic Letter of Credit in an amount equal to the product of such
Domestic Revolving Lender’s Applicable Percentage times the amount of
such Domestic Letter of Credit, and immediately upon the issuance of each
Canadian Letter of Credit, each Canadian Revolving Lender shall be deemed to,
and hereby irrevocably and unconditionally agrees to, purchase from the
applicable Canadian L/C Issuer a risk participation in such Canadian Letter of
Credit in an amount equal to the product of such Canadian Revolving Lender’s
Applicable Percentage times the amount of such Canadian Letter of
Credit.

 

(iii)          If a Borrower so requests in a Letter of
Credit Application, the applicable L/C Issuer may, in its sole and absolute
discretion, agree to issue a Letter of Credit that has automatic extension
provisions (each, an “Auto-Extension Letter of Credit”); provided
that any such Auto-Extension Letter of Credit must permit the applicable L/C
Issuer to prevent any such extension at least once in each twelve-month period
(commencing with the date of issuance of such Letter of Credit) by giving prior
notice to the beneficiary thereof not later than a day (the “Non-Extension
Notice Date”) in each such twelve-month period to be agreed upon at the
time such Letter of Credit is issued. Unless otherwise directed by the
applicable L/C Issuer, a Borrower shall not be required to make a specific
request to such L/C Issuer for any such extension. Once an Auto-Extension
Letter of Credit has been issued, the applicable Lenders shall be deemed to
have authorized (but may not require) the applicable L/C Issuer to permit the
extension of such Letter of Credit at any time to an expiry date not later than
the Letter of Credit Expiration Date; provided, however, that the
applicable L/C Issuer shall not permit any such extension if (A) such L/C
Issuer has determined that it would not be permitted, or would have no
obligation, at such time to issue such Letter of Credit in its revised form (as
extended) under the terms hereof (by reason of the provisions of
clause (ii) or (iii) of Section 2.03(a) or otherwise), or
(B) it has received notice (which may be by telephone or in writing) on or
before the day that is seven Business Days before the Non-Extension Notice Date
(1) from the applicable Administrative Agent that the Required Domestic
Revolving Lenders or the Required Canadian Revolving Lenders, as applicable,
have elected not to permit such extension or (2) from the Domestic
Administrative Agent, the Canadian Administrative Agent, any Lender or either
Borrower that one or more of the applicable conditions specified in Section
5.02 is not then satisfied, and in each such case directing such L/C Issuer
not to permit such extension.

 

(iv)          If a Borrower so requests in a Letter of
Credit Application, the applicable L/C Issuer may, in its sole and absolute
discretion, agree to issue a Letter of Credit that permits the automatic
reinstatement of all or a portion of the stated amount thereof after any
drawing thereunder (each, an “Auto-Reinstatement Letter of Credit”). Unless
otherwise directed by the applicable L/C Issuer, no Borrower shall be required
to make a specific request to the applicable L/C Issuer to permit such
reinstatement. Once an Auto-Reinstatement Letter of Credit has been issued,
except as provided in the following sentence, the Domestic Revolving Lenders or
the Canadian Revolving Lenders, as applicable, shall be deemed to have
authorized (but may not require) the applicable L/C Issuer to reinstate all or
a portion of the stated amount thereof in accordance with the provisions of
such Letter of Credit. Notwithstanding the foregoing, if such
Auto-Reinstatement Letter of Credit permits the applicable L/C Issuer to
decline to reinstate all or any portion of the stated amount thereof after a
drawing thereunder by giving notice of such non-reinstatement within a
specified number of days after such drawing (the “Non-Reinstatement Deadline”),
the applicable L/C Issuer shall not permit such reinstatement if it has
received a notice (which may be by telephone or in writing) on or before the
day 

 

 

that is five Business Days
before the Non-Reinstatement Deadline (A) from the applicable Administrative
Agent that the Required Domestic Revolving Lenders or the Required Canadian
Revolving Lenders, as applicable, have elected not to permit such reinstatement
or (B) from the applicable Administrative Agent, any Lender or the applicable
Borrower that one or more of the applicable conditions specified in Section
5.02 is not then satisfied (treating such reinstatement as an L/C Credit
Extension for purposes of this clause) and, in each case, directing the
applicable L/C Issuer not to permit such reinstatement.

 

(v)           Promptly after its delivery of any Letter of
Credit or any amendment to a Letter of Credit to an advising bank with respect
thereto or to the beneficiary thereof, the applicable L/C Issuer will also
deliver to the applicable Borrower and the applicable Administrative Agent a
true and complete copy of such Letter of Credit or amendment.

 

(c)           Drawings and Reimbursements; Funding of
Participations.

 

(i)            (A) 
Upon receipt from the beneficiary of any Domestic Letter of Credit of
any notice of a drawing under such Domestic Letter of Credit, the applicable
Domestic L/C Issuer shall notify GGC and the Domestic Administrative Agent
thereof. In the case of a Domestic Letter of Credit denominated in Canadian
Dollars, GGC shall reimburse the applicable Domestic L/C Issuer in U.S. Dollars
in the U.S. Dollar Equivalent of the amount of the applicable drawing promptly
following the determination thereof. Not later than 11:00 a.m. on the date of
any payment by the applicable Domestic L/C Issuer under a Domestic Letter of
Credit (each such date, a “Domestic Honor Date”), GGC shall reimburse
the applicable Domestic L/C Issuer through the Domestic Administrative Agent in
U.S. Dollars in an amount equal to the U.S. Dollar Equivalent of the amount of
such drawing. If GGC fails to so reimburse the applicable Domestic L/C Issuer
by such time (expressed in U.S. Dollars in the amount of the U.S. Dollar
Equivalent thereof), the applicable Domestic L/C Issuer shall promptly notify
the Domestic Administrative Agent of the Domestic Honor Date and the amount of
the unreimbursed drawing shall become the unreimbursed amount (the “Domestic
Unreimbursed Amount”). The Domestic Administrative Agent shall promptly
notify each Domestic Revolving Lender of the Domestic Honor Date, the Domestic
Unreimbursed Amount, and the amount of such Domestic Revolving Lender’s
Applicable Percentage thereof. In such event, GGC shall be deemed to have
requested a Domestic Revolving Borrowing of Base Rate Loans to be disbursed on
the Domestic Honor Date in an amount equal to the Domestic Unreimbursed Amount,
without regard to the minimum and multiples specified in Section 2.02
for the principal amount of Base Rate Loans, but subject to the conditions set
forth in Section 5.02 (other than the delivery of a Loan Notice)
and provided that, after giving effect to such Domestic Revolving Borrowing,
the Total Domestic Revolving Outstandings shall not exceed the Aggregate
Domestic Revolving Commitments. Any notice given by the applicable Domestic L/C
Issuer or the Domestic Administrative Agent pursuant to this Section 2.03(c)(i)(A)
may be given by telephone if immediately confirmed in writing; provided
that the lack of such an immediate confirmation shall not affect the
conclusiveness or binding effect of such notice.

 

(B)           Upon receipt from the beneficiary of any
Canadian Letter of Credit of any notice of a drawing under such Canadian Letter
of Credit, the 

 

 

applicable Canadian L/C
Issuer shall notify the applicable Borrower and the Canadian Administrative
Agent thereof, including, in the case of a Letter of Credit denominated in an Alternative
Currency, both the Alternative Currency amount of such drawing and the Canadian
Dollar Equivalent thereof. In the case of a Canadian Letter of Credit
denominated in an Alternative Currency, the applicable Borrower shall reimburse
the applicable Canadian L/C Issuer in Canadian Dollars; provided, that,
the applicable Borrower may reimburse the applicable Canadian L/C Issuer in the
applicable Alternative Currency if such reimbursement is received by the
applicable Canadian L/C Issuer on the date drawing is paid by the applicable
Canadian L/C Issuer. In the case of any such reimbursement in Canadian Dollars
of a drawing under a Canadian Letter of Credit denominated in an Alternative
Currency, the applicable Canadian L/C Issuer shall notify the applicable
Borrower of the Canadian Dollar Equivalent of the amount of the drawing
promptly following the determination thereof. Not later than 11:00 a.m.
(Toronto time) on the date of any payment by the applicable Canadian L/C Issuer
under a Canadian Letter of Credit to be reimbursed in Canadian Dollars, or
11:00 a.m. on the date of any payment by the applicable Canadian L/C Issuer
under a Canadian Letter of Credit to be reimbursed in U.S. Dollars (each such
date, a “Canadian Honor Date”), the applicable Borrower shall reimburse
the applicable Canadian L/C Issuer through the Canadian Administrative Agent in
an amount equal to the amount of such drawing and in the applicable currency. If
the applicable Borrower fails to so reimburse the applicable Canadian L/C Issuer
by such time, the applicable Canadian L/C Issuer shall promptly notify the
Canadian Administrative Agent of the Canadian Honor Date and the amount of the
unreimbursed drawing shall become the unreimbursed amount (expressed in
Canadian Dollars in the amount of the Canadian Dollar Equivalent thereof in the
case of a Canadian Letter of Credit denominated in an Alternative Currency)
(the “Canadian Unreimbursed Amount”). The Canadian Administrative Agent
shall promptly notify each Canadian Revolving Lender of the Canadian Honor
Date, the Canadian Unreimbursed Amount, and the amount of such Canadian
Revolving Lender’s Applicable Percentage thereof. In such event, the applicable
Borrower shall be deemed to have requested a Canadian Revolving Borrowing of
Base Rate Loans to be disbursed on the Canadian Honor Date in an amount equal
to the Canadian Unreimbursed Amount, without regard to the minimum and
multiples specified in Section 2.02 for the principal amount of
Base Rate Loans, but subject to the conditions set forth in Section 5.02
(other than the delivery of a Loan Notice) and provided that, after giving
effect to such Canadian Revolving Borrowing, the Total Canadian Revolving
Outstandings shall not exceed the Aggregate Canadian Revolving Commitments. Any
notice given by the applicable Canadian L/C Issuer or the Canadian
Administrative Agent pursuant to this Section 2.03(c)(i)(B) may be
given by telephone if immediately confirmed in writing; provided that
the lack of such an immediate confirmation shall not affect the conclusiveness
or binding effect of such notice.

 

(ii)           (A)          Each Domestic Revolving Lender shall upon any
notice pursuant to Section 2.03(c)(i)(A) make funds available to
the Domestic Administrative Agent for the account of the applicable Domestic L/C
Issuer, in U.S. Dollars, at the Domestic Administrative Agent’s Office in an
amount equal to its Applicable Percentage of the Domestic Unreimbursed Amount
not later than 1:00 p.m. on the Business Day specified in such notice by
the Domestic Administrative Agent, 

 

 

whereupon, subject to the
provisions of Section 2.03(c)(iii)(A), each Domestic Revolving
Lender that so makes funds available shall be deemed to have made a Base Rate
Loan to GGC in such amount. The Domestic Administrative Agent shall remit the
funds so received to the applicable Domestic L/C Issuer in U.S. Dollars.

 

(B)           Each Canadian Revolving Lender shall upon any
notice pursuant to Section 2.03(c)(i)(B) make funds available to
the Canadian Administrative Agent for the account of the applicable Canadian
L/C Issuer, in Canadian Dollars, at the Canadian Administrative Agent’s Office
in an amount equal to its Applicable Percentage of the Canadian Unreimbursed
Amount not later than 1:00 p.m. (Toronto time) on the Business Day
specified in such notice by the Canadian Administrative Agent, whereupon,
subject to the provisions of Section 2.03(c)(iii)(B), each Canadian
Revolving Lender that so makes funds available shall be deemed to have made a
Base Rate Loan to the applicable Borrower in such amount. The Canadian
Administrative Agent shall remit the funds so received to the applicable
Canadian L/C Issuer in Canadian Dollars.

 

(iii)          (A) 
With respect to any Domestic Unreimbursed Amount that is not fully
refinanced by a Domestic Revolving Borrowing of Base Rate Loans because the
conditions set forth in Section 5.02 cannot be satisfied or for any
other reason, GGC shall be deemed to have incurred from the applicable Domestic
L/C Issuer a Domestic L/C Borrowing in the amount of the Domestic Unreimbursed Amount
that is not so refinanced, which Domestic L/C Borrowing shall be due and
payable on demand (together with interest) and shall bear interest at the
Default Rate. In such event, each Domestic Revolving Lender’s payment to the
Domestic Administrative Agent for the account of the applicable Domestic L/C
Issuer pursuant to Section 2.03(c)(ii)(A) shall be deemed payment
in respect of its participation in such Domestic L/C Borrowing and shall
constitute a Domestic L/C Advance from such Domestic Revolving Lender in
satisfaction of its participation obligation under this Section 2.03.

 

(B)           With respect to any Canadian Unreimbursed
Amount that is not fully refinanced by a Canadian Revolving Borrowing of Base
Rate Loans because the conditions set forth in Section 5.02 cannot
be satisfied or for any other reason, the applicable Borrower shall be deemed
to have incurred from the applicable Canadian L/C Issuer a Canadian L/C
Borrowing in the amount of the Canadian Unreimbursed Amount that is not so
refinanced, which Canadian L/C Borrowing shall be due and payable on demand
(together with interest) and shall bear interest at the Default Rate. In such
event, each Canadian Revolving Lender’s payment to the Canadian Administrative
Agent for the account of the applicable Canadian L/C Issuer pursuant to Section 2.03(c)(ii)(B)
shall be deemed payment in respect of its participation in such Canadian L/C
Borrowing and shall constitute a Canadian L/C Advance from such Canadian
Revolving Lender in satisfaction of its participation obligation under this Section 2.03.

 

(iv)          Until each Revolving Lender funds its
Revolving Loan or L/C Advance, as applicable, pursuant to this Section 2.03(c)
to reimburse the applicable L/C Issuer for any amount drawn under any Letter of
Credit, interest in respect of such Revolving Lender’s Applicable Percentage of
such amount shall be solely for the account of the applicable L/C Issuer.

 

 

(v)           Each Revolving Lender’s obligation to make
Revolving Loans or L/C Advances to reimburse the applicable L/C Issuer for
amounts drawn under Letters of Credit, as contemplated by this Section 2.03(c),
shall be absolute and unconditional and shall not be affected by any
circumstance, including (A) any setoff, counterclaim, recoupment, defense or
other right which such Revolving Lender may have against the applicable L/C
Issuer, any Borrower, any Subsidiary or any other Person for any reason
whatsoever; (B) the occurrence or continuance of a Default, or (C) any other
occurrence, event or condition, whether or not similar to any of the foregoing;
provided, however, that each Revolving Lender’s obligation to
make Revolving Loans pursuant to this Section 2.03(c) is subject to
the conditions set forth in Section 5.02 (other than delivery by
the applicable Borrower of a Loan Notice). No such making of a L/C Advance
shall relieve or otherwise impair the obligation of the applicable Borrower to
reimburse the applicable L/C Issuer for the amount of any payment made by such
L/C Issuer under any Letter of Credit, together with interest as provided
herein.

 

(vi)          If any Revolving Lender fails to make
available to the applicable Administrative Agent for the account of the
applicable L/C Issuer any amount required to be paid by such Revolving Lender
pursuant to the foregoing provisions of this Section 2.03(c) by the
time specified in Section 2.03(c)(ii), the applicable L/C Issuer
shall be entitled to recover from such Revolving Lender (acting through the
applicable Administrative Agent), on demand, such amount with interest thereon
for the period from the date such payment is required to the date on which such
payment is immediately available to such L/C Issuer at a rate per annum equal
to the applicable Overnight Rate from time to time in effect. If such Revolving
Lender pays such amount (with interest and fees as aforesaid), the amount so
paid shall constitute such Revolving Lender’s Revolving Loan included in the
relevant Revolving Borrowing or L/C Advance in respect of the relevant L/C
Borrowing, as the case may be. A certificate of the applicable L/C Issuer
submitted to any Lender (through the applicable Administrative Agent) with
respect to any amounts owing under this clause (vi) shall be conclusive
absent manifest error.

 

(d)           Repayment of Participations.

 

(i)            At any time after an L/C Issuer has made a
payment under any Letter of Credit and has received from any Lender such
Revolving Lender’s L/C Advance in respect of such payment in accordance with Section 2.03(c),
if the applicable Administrative Agent receives for the account of the
applicable L/C Issuer any payment in respect of the related Unreimbursed Amount
or interest thereon (whether directly from the applicable Borrower or
otherwise, including proceeds of Cash Collateral applied thereto by the
applicable Administrative Agent), the applicable Administrative Agent will
distribute to such Revolving Lender its Applicable Percentage thereof in the
same funds as those received by such Administrative Agent.

 

(ii)           If any payment received by an Administrative
Agent for the account of an L/C Issuer pursuant to Section 2.03(c)(i)
is required to be returned under any of the circumstances described in Section
11.05 (including pursuant to any settlement entered into by the applicable
L/C Issuer in its discretion), each Revolving Lender shall pay to the
applicable Administrative Agent for the account of the applicable L/C Issuer
its Applicable Percentage thereof on demand of the applicable Administrative
Agent, plus interest thereon from the date of such demand to the date such
amount is returned by such 

 

 

Revolving Lender, at a rate
per annum equal to the applicable Overnight Rate from time to time in effect. The
obligations of the Revolving Lenders under this clause shall survive the
payment in full of the Obligations and the termination of this Agreement.

 

(e)           Obligations Absolute. The obligation of the applicable Borrower
to reimburse the applicable L/C Issuer for each drawing under each Letter of
Credit and to repay each L/C Borrowing shall be absolute, unconditional and
irrevocable, and shall be paid strictly in accordance with the terms of this
Agreement under all circumstances, including the following:

 

(i)            any lack of validity or enforceability of
such Letter of Credit, this Agreement, or any other Loan Document;

 

(ii)           the existence of any claim, counterclaim,
setoff, defense or other right that any Borrower or any Subsidiary may have at
any time against any beneficiary or any transferee of such Letter of Credit (or
any Person for whom any such beneficiary or any such transferee may be acting),
the applicable L/C Issuer or any other Person, whether in connection with this
Agreement, the transactions contemplated hereby or by such Letter of Credit or
any agreement or instrument relating thereto, or any unrelated transaction;

 

(iii)          any draft, demand, certificate or other
document presented under such Letter of Credit proving to be forged,
fraudulent, invalid or insufficient in any respect or any statement therein
being untrue or inaccurate in any respect; or any loss or delay in the transmission
or otherwise of any document required in order to make a drawing under such
Letter of Credit;

 

(iv)          any payment by the applicable L/C Issuer
under such Letter of Credit against presentation of a draft or certificate that
does not strictly comply with the terms of such Letter of Credit; or any
payment made by the applicable L/C Issuer under such Letter of Credit to any
Person purporting to be a trustee in bankruptcy, debtor-in-possession, assignee
for the benefit of creditors, liquidator, receiver or other representative of
or successor to any beneficiary or any transferee of such Letter of Credit,
including any arising in connection with any proceeding under any Debtor Relief
Law;

 

(v)           any adverse change in the relevant exchange
rates or in the availability of the relevant Alternative Currency to the
applicable Borrower or in the relevant currency markets generally; or

 

(vi)          any other circumstance or happening
whatsoever, whether or not similar to any of the foregoing, including any other
circumstance that might otherwise constitute a defense available to, or a
discharge of, any Borrower or any Subsidiary.

 

The applicable Borrower
shall promptly examine a copy of each Letter of Credit and each amendment
thereto that is delivered to it and, in the event of any claim of noncompliance
with the applicable Borrower’s instructions or other irregularity, the
applicable Borrower will promptly notify the applicable L/C Issuer. The
applicable Borrower shall be conclusively deemed to have waived any such claim
against the applicable L/C Issuer and its correspondents unless such notice is
given as aforesaid.

 

(f)            Role of the L/C Issuers. Each of the Revolving Lenders and the
Borrowers agrees that, in paying any drawing under a Letter of Credit, the
applicable L/C Issuer shall not 

 

 

have any responsibility to obtain any
document (other than any sight draft, certificates and documents expressly
required by the Letter of Credit) or to ascertain or inquire as to the validity
or accuracy of any such document or the authority of the Person executing or
delivering any such document. None of the L/C Issuers, the Administrative
Agents, any of their respective Related Parties nor any correspondent,
participant or assignee of an L/C Issuer shall be liable to any Revolving Lender
for (i) any action taken or omitted in connection herewith at the request
or with the approval of the Required Domestic Revolving Lenders or the Required
Canadian Revolving Lenders, as applicable; (ii) any action taken or
omitted in the absence of gross negligence or willful misconduct; or
(iii) the due execution, effectiveness, validity or enforceability of any
document or instrument related to any Letter of Credit or Issuer Documents. Each
Borrower hereby assumes all risks of the acts or omissions of any beneficiary
or transferee with respect to such Borrower’s use of any Letter of Credit; provided,
however, that this assumption is not intended to, and shall not, preclude the
applicable Borrower’s pursuing such rights and remedies as such Borrower may
have against the beneficiary or transferee at law or under any other agreement.
None of the L/C Issuers, the Administrative Agents, any of their respective
Related Parties nor any correspondent, participant or assignee of an L/C
Issuer, shall be liable or responsible for any of the matters described in
clauses (i) through (vi) of Section 2.03(e); provided,
however, that anything in such clauses to the contrary notwithstanding, a
Borrower may have a claim against the applicable L/C Issuer, and the applicable
L/C Issuer may be liable to the applicable Borrower, to the extent, but only to
the extent, of any direct, as opposed to consequential or exemplary, damages
suffered by the applicable Borrower that such Borrower proves were caused by
the applicable L/C Issuer’s willful misconduct or gross negligence or such L/C
Issuer’s willful failure to pay under any Letter of Credit after the
presentation to it by the beneficiary of a sight draft and certificate(s)
strictly complying with the terms and conditions of a Letter of Credit. In
furtherance and not in limitation of the foregoing, the applicable L/C Issuer
may accept documents that appear on their face to be in order, without
responsibility for further investigation, regardless of any notice or
information to the contrary, and the applicable L/C Issuer shall not be
responsible for the validity or sufficiency of any instrument transferring or
assigning or purporting to transfer or assign a Letter of Credit or the rights
or benefits thereunder or proceeds thereof, in whole or in part, that may prove
to be invalid or ineffective for any reason.

 

(g)           Cash Collateral.

 

(i)            Upon the request of the applicable
Administrative Agent, (A) if the applicable L/C Issuer has honored any
full or partial drawing request under any Letter of Credit and such drawing has
resulted in a L/C Borrowing, or (B) if, as of the Letter of Credit
Expiration Date, any L/C Obligation for any reason remains outstanding, the
applicable Borrower shall, in each case, immediately Cash Collateralize the
then Outstanding Amount of its L/C Obligations.

 

(ii)           The applicable Collateral Agent may, at any
time and from time to time after the initial deposit of Cash Collateral,
request that additional Cash Collateral be provided in order to protect against
the results of exchange rate fluctuations.

 

(iii)          GGC hereby grants to the Domestic Collateral
Agent, for the benefit of the applicable Domestic L/C Issuers and the Domestic
Revolving Lenders, a security interest in all such cash, deposit accounts and
all balances therein and all proceeds of the foregoing. Cash Collateral for the
Domestic L/C Obligations shall be maintained in blocked, non-interest bearing
deposit accounts at Bank of America. GGC and the Canadian Borrower hereby grant
to the 

 

 

Canadian Collateral Agent,
for the benefit of the applicable Canadian L/C Issuers and the Canadian
Revolving Lenders, a security interest in all such cash, deposit accounts and
all balances therein and all proceeds of the foregoing. Cash Collateral for the
Canadian L/C Obligations shall be maintained in blocked, non-interest bearing
deposit accounts at Bank of America, acting through its Canada branch.

 

(h)           Applicability of ISP and UCP. Unless otherwise expressly agreed by the
applicable L/C Issuer and the applicable Borrower when a Letter of Credit is
issued (including any such agreement applicable to an Existing Domestic Letter
of Credit or Existing Canadian Letter of Credit), (i) the rules of the ISP
shall apply to each standby Letter of Credit and (ii) the rules of the Uniform
Customs and Practice for Documentary Credits, as most recently published by the
International Chamber of Commerce at the time of issuance shall apply to each
commercial Letter of Credit.

 

(i)            Letters of Credit Issued for Subsidiaries. Notwithstanding that a Letter of Credit
issued or outstanding hereunder is in support of any obligations of, or is for
the account of, any Subsidiary of a Borrower, the applicable Borrower shall be
obligated to reimburse the applicable L/C Issuer for any and all drawings under
such Letter of Credit, and neither the Canadian Borrower nor any Canadian
Subsidiary shall have any such obligation with respect to any Domestic Letters
of Credit. The Borrowers hereby acknowledge that the issuance of Letters of
Credit for the account of any Borrower’s Subsidiaries inures to the benefit of
such Borrower, and that the Borrower’s businesses derive substantial benefits
from the businesses of such Subsidiaries.

 

(j)            Letter of Credit Fees. GGC shall pay to the Domestic Administrative
Agent for the account of each Domestic Revolving Lender in accordance with its
Applicable Percentage a Letter of Credit fee (i) for each commercial Domestic
Letter of Credit equal to Applicable Rate times the U.S. Dollar Equivalent of
the daily amount available to be drawn under such Domestic Letter of Credit and
(ii) for each standby Domestic Letter of Credit equal to the Applicable Rate times
the U.S. Dollar Equivalent of the daily amount available to be drawn under such
Domestic Letter of Credit. The applicable Borrower shall pay to the Canadian
Administrative Agent for the account of each Canadian Revolving Lender in
accordance with its Applicable Percentage a Letter of Credit fee (x) for each
commercial Canadian Letter of Credit equal to the Applicable Rate times
the Canadian Dollar Equivalent of the daily amount available to be drawn under
such Canadian Letter of Credit and (y) for each standby Canadian Letter of
Credit equal to the Applicable Rate times the Canadian Dollar Equivalent
of the daily amount available to be drawn under such Canadian Letter of Credit.
For purposes of computing the daily amount available to be drawn under any
Letter of Credit, the amount of such Letter of Credit shall be determined in
accordance with Section 1.07. Letter of Credit fees shall be
(A) computed on a quarterly basis in arrears and (B) due and payable
on the last Business Day of each March, June, September and December,
commencing with the first such date to occur after the issuance of each such Letter
of Credit, on the Letter of Credit Expiration Date and thereafter on demand. If
there is any change in the Applicable Rate during any quarter, the daily amount
available to be drawn under each standby Letter of Credit shall be computed and
multiplied by the Applicable Rate separately for each period during such
quarter that such Applicable Rate was in effect. Notwithstanding anything to
the contrary contained herein, while any Event of Default exists, all Letter of
Credit fees shall accrue at the Default Rate.

 

(k)           Fronting Fee and Documentary and Processing
Charges. GGC shall pay
directly to the applicable Domestic L/C Issuer for its own account in U.S.
Dollars a fronting fee (i) with 

 

 

respect
to each commercial Domestic Letter of Credit, at the rate, in the case of Bank
of America, in its capacity as Domestic L/C Issuer, specified in the Fee
Letter, and in the case of any other Domestic L/C Issuer, as may be agreed upon
between GGC and such Domestic L/C Issuer, computed on the U.S. Dollar
Equivalent of the amount of such Domestic Letter of Credit, and payable upon
the issuance thereof, (ii) with respect to any amendment of a commercial
Domestic Letter of Credit increasing the amount of such Domestic Letter of
Credit, at a rate separately agreed between such Borrower and the applicable
Domestic L/C Issuer, computed on the U.S. Dollar Equivalent of the amount of
such increase, and payable upon the effectiveness of such amendment, and (iii)
with respect to each standby Domestic Letter of Credit, at the rate per annum specified
in the Fee Letter, computed on the U.S. Dollar Equivalent of the daily amount
available to be drawn under such Domestic Letter of Credit (whether or not such
maximum amount is then in effect under such Domestic Letter of Credit) on a
quarterly basis in arrears. The applicable Borrower shall pay directly to the
applicable Canadian L/C Issuer for its own account in Canadian Dollars a
fronting fee (i) with respect to each commercial Canadian Letter of
Credit, at the rate in the case of Bank of America, in its capacity as Canadian
L/C Issuer, specified in the Fee Letter, and in the case of any other Canadian
L/C Issuer, as may be agreed upon between the applicable Borrower and such
Canadian L/C Issuer, computed on the Canadian Dollar Equivalent of the amount
of such Canadian Letter of Credit, and payable upon the issuance thereof, (ii)
with respect to any amendment of a commercial Canadian Letter of Credit
increasing the amount of such Canadian Letter of Credit, at a rate separately
agreed between such Borrower and the applicable Canadian L/C Issuer, computed
on the Canadian Dollar Equivalent of the amount of such increase, and payable
upon the effectiveness of such amendment, and (iii) with respect to each
standby Canadian Letter of Credit, at the rate per annum specified in the Fee
Letter, computed on the Canadian Dollar Equivalent of the daily amount
available to be drawn under such Canadian Letter of Credit (whether or not such
maximum amount is then in effect under such Canadian Letter of Credit) on a quarterly
basis in arrears. Such fronting fees shall be due and payable on the tenth
Business Day after the end of each March, June, September and December in
respect of the most recently-ended quarterly period (or portion thereof, in the
case of the first payment), commencing with the first such date to occur after
the issuance of any such Letter of Credit, on the Letter of Credit Expiration
Date and thereafter on demand. For purposes of computing the daily amount
available to be drawn under any Domestic Letter of Credit, the amount of such
Letter of Credit shall be determined in accordance with Section 1.07.
In addition, (i) GGC shall pay directly to the applicable Domestic L/C Issuer
for its own account the customary issuance, presentation, amendment and other
processing fees, and other standard costs and charges, of the applicable
Domestic L/C Issuer relating to letters of credit as from time to time in
effect and (ii) the applicable Borrower shall pay directly to the applicable
Canadian L/C Issuer for its own account the customary issuance, presentation,
amendment and other processing fees, and other standard costs and charges, of
the applicable Canadian L/C Issuer relating to letters of credit as from time
to time in effect. Such customary fees and standard costs and charges are due
and payable on demand and are nonrefundable.

 

(l)            Conflict with Issuer Documents. In the event of any conflict between the
terms hereof and the terms of any Issuer Document, the terms hereof shall
control.

 

2.04        Canadian Swing Line Loans.

 

(a)           Canadian Swing Line Facility. Subject to the terms and conditions set
forth herein, the Canadian Swing Line Lender agrees to make loans in Canadian
Dollars or U.S. Dollars (each such loan, a “Canadian Swing Line Loan”)
to the Canadian Borrower, without regard to any limitations as to amounts, from
time to time on any Business Day during the Canadian Availability Period in an
aggregate amount not to exceed at any time outstanding the 

 

 

amount
of the Canadian Swing Line Commitment. Subject to the other terms and
conditions hereof, the Canadian Borrower may borrow under this Section 2.04,
prepay under Section 2.05, and reborrow under this Section 2.04. Canadian
Swing Line Loans shall be made available by the Canadian Swing Line Lender
without any notice being given by the Canadian Borrower. Each Canadian Swing
Line Loan shall be a Base Rate Loan. Unless the Canadian Swing Line Lender has
received notice (by telephone or in writing) from the Canadian Administrative
Agent that one or more of the applicable conditions specified in Section
5.02 is not then satisfied, then, subject to the terms and conditions
hereof, the Canadian Swing Line Lender will make Canadian Swing Line Loans
available to the Canadian Borrower.

 

(b)           Interest for Account of Canadian Swing Line
Lender. The Canadian Swing
Line Lender shall be responsible for invoicing the Canadian Borrower for
interest on the Canadian Swing Line Loans.

 

(c)           Payments Directly to Canadian Swing Line
Lender. The Canadian
Borrower shall make all payments of principal and interest in respect of the
Canadian Swing Line Loans directly to the Canadian Swing Line Lender.

 

(d)           Transfer of Canadian Swing Line Commitment.

 

(i)            The Canadian Borrower may, upon prior written
notice to the Canadian Administrative Agent and the Canadian Swing Line Lender,
elect one time during any calendar year to transfer all or a portion of the
Canadian Swing Line Commitment to the Canadian Revolving Commitments; provided
that (i) any such transfer shall be in a minimum principal amount of US$5
million and in integral multiples of US$1 million in excess thereof; (ii) no
Default or Event of Default shall be continuing at the time of such transfer;
and (iii) after giving effect to such transfer, the Canadian Swing Line Loans
outstanding shall not exceed the Canadian Swing Line Commitment.

 

(ii)           If the Canadian Borrower makes the election
described in clause (i) above, the Canadian Swing Line Lender agrees to execute
and deliver a commitment agreement with respect to the new additional Canadian
Revolving Commitment in a form satisfactory to the Canadian Administrative
Agent. The Canadian Swing Line Commitment shall be reduced automatically by the
amount of the transfer pursuant to this Section 2.04(d).

 

(iii)          The Canadian Borrower shall prepay any
Canadian Revolving Loans outstanding on the date of such transfer (and pay any
additional amounts required pursuant to Section 3.05) to the extent
necessary to keep the outstanding Canadian Revolving Loans ratable with the
revised Canadian Revolving Commitments as a result of the transfer of
Commitments pursuant to this Section 2.04(d). In connection with such
transfer, Schedule 2.10 shall be revised by the Canadian Administrative
Agent to reflect the new Canadian Revolving Commitments and distributed to the
Canadian Revolving Lenders.

 

2.05        Prepayments.

 

(a)           Voluntary Prepayment.

 

(i)            Revolving Loans and Term Loan. The Loans may be prepaid, in whole or in
part without premium or penalty, upon notice from the applicable 

 

 

Borrower; provided
that (A) such notice must be received not later than 11:00 a.m. by the Domestic
Administrative Agent, with respect to any Domestic Revolving Loans or the Term
Loan, and not later than 11:00 a.m. (Toronto time) by the Canadian
Administrative Agent, with respect to Canadian Revolving Loans, (1) three
Business Days prior to any date of prepayment of Eurodollar Rate Loans
denominated in U.S. Dollars or Canadian Dollars, (2) on the date of prepayment
of Base Rate Loans that are Domestic Revolving Loans or part of the Term Loan
and (3)(x) one Business Day prior to any date of prepayment of Base Rate Loans
that are Canadian Revolving Loans denominated in U.S. Dollars and (y) on the
date of prepayment of Base Rate Loans that are Canadian Revolving Loans
denominated in Canadian Dollars; (B) any such prepayment of Eurodollar Rate
Loans shall be in a principal amount of (1) with respect to Domestic Revolving
Loans, the Term Loan and Canadian Revolving Loans denominated in U.S. Dollars,
US$5,000,000 or a whole multiple of US$1,000,000 in excess thereof (or, if
less, the entire principal amount thereof then outstanding) and (2) with
respect to Canadian Revolving Loans denominated in Canadian Dollars,
CAN$5,000,000 or a whole multiple of CAN$1,000,000 in excess thereof (or, if
less, the entire principal amount thereof then outstanding); (C) any prepayment
of Base Rate Loans shall be in a principal amount of (1) with respect to
Domestic Revolving Loans, the Term Loan and Canadian Revolving Loans
denominated in U.S. Dollars, US$500,000 or a whole multiple of US$250,000 in
excess thereof (or, if less, the entire principal amount thereof then
outstanding) and (2) with respect to Canadian Revolving Loans denominated in
Canadian Dollars, CAN$1,000,000 or a whole multiple of CAN$500,000 in excess
thereof (or, if less, the entire principal amount thereof then outstanding);
and (D) any prepayment of the Term Loan shall be applied ratably to the
remaining principal amortization payments. Each such notice shall specify the
date and amount of such prepayment and the Type(s) of Loans to be prepaid and,
if Eurodollar Rate Loans are to be prepaid, the Interest Period(s) of such
Loans. The applicable Administrative Agent will promptly notify each Lender of
its receipt of each such notice, and of the amount of such Lender’s Applicable
Percentage of such prepayment. If such notice is given by a Borrower, such
Borrower shall make such prepayment and the payment amount specified in such
notice shall be due and payable on the date specified therein. Any prepayment
of a Eurodollar Rate Loan shall be accompanied by all accrued interest on the
amount prepaid, together with any additional amounts required pursuant to Section
3.05. Each such prepayment shall be applied to the Loans of the Lenders in
accordance with their respective Applicable Percentages. Notwithstanding the
foregoing, the Borrower shall not prepay any Bankers Acceptance Advance prior
to its maturity; provided that, notwithstanding anything to the contrary
contained in this Agreement, if any time Bankers’ Acceptance Advances are
required to be prepaid prior to their maturity, the Canadian Borrower shall be
required to provide cash collateral for such Bankers’ Acceptance Advances in
accordance with Section 2.02(h). Upon deposit of such cash collateral in
accordance with Section 2.02(h), such Bankers’ Acceptance Advances shall
not be considered to be outstanding for any purpose hereunder, including
without limitation, calculation of the Canadian Commitment Fee.

 

(ii)           Canadian Swing Line Loans. The Canadian Borrower may, without notice
to the Canadian Swing Line Lender at any time or from time to time, voluntarily
prepay Canadian Swing Line Loans in whole or in part without 

 

 

premium or penalty without
regard to any limitations as to amount.

 

(b)           Mandatory Prepayments of Loans.

 

(i)            Revolving Commitments.

 

(A)          Domestic Revolving Commitments. If for any reason the Total Domestic
Revolving Outstandings at any time exceed the Aggregate Domestic Revolving
Commitments then in effect, GGC shall immediately prepay the Domestic Revolving
Loans and/or Cash Collateralize the Domestic L/C Obligations in an aggregate
amount equal to such excess.

 

(B)           Canadian Revolving Commitments. If for any reason the Total Canadian
Revolving Outstandings at any time exceed the Aggregate Canadian Revolving
Commitments then in effect, the Borrowers shall immediately prepay their
applicable Canadian Revolving Loans (other than the Bankers’ Acceptance
Advances) and/or Cash Collateralize their applicable Canadian L/C Obligations
and/or Bankers’ Acceptance Advances in an aggregate amount equal to such
excess.

 

(ii)           Dispositions and Involuntary Dispositions.

 

(A)          The applicable Borrower shall promptly prepay
the Loans and/or Cash Collateralize the L/C Obligations as hereafter provided
in an aggregate amount equal to 100% of the Net Cash Proceeds of all
Dispositions by GGC or any Subsidiary to the extent that the Net Cash Proceeds
of all such Dispositions (other than Involuntary Dispositions) received in any
fiscal year exceed $10,000,000. Any prepayment pursuant to this clause (ii)(A)
shall be applied as set forth in clause (vi) below.

 

(B)           In the event there shall occur any
Involuntary Disposition, the Borrowers shall promptly prepay the Loans and/or
Cash Collateralize the L/C Obligations as hereinafter provided in an aggregate
amount equal to 100% of the Net Cash Proceeds of such Involuntary Disposition
to the extent such Net Cash Proceeds are not used to restore or repair the
applicable Property within 340 days of such Involuntary Disposition. Any
prepayment pursuant to this clause (ii)(B) shall be applied as set forth in
clause (vi) below.

 

(iii)          Debt Issuances. Immediately upon receipt by GGC or any
Subsidiary of the Net Cash Proceeds of any Debt Issuance, the applicable Borrower
shall prepay the Loans and/or Cash Collateralize the L/C Obligations as
hereafter provided in an aggregate amount equal to 100% of such Net Cash
Proceeds. Any prepayment pursuant to this clause (iii) shall be applied as set
forth in clause (vi) below.

 

(iv)          Equity Issuances. Immediately upon the receipt by GGC or any
Subsidiary of the Net Cash Proceeds of any Equity Issuance, the applicable
Borrower shall prepay the Loans and/or Cash Collateralize the L/C Obligations
in 

 

 

an aggregate amount equal to
50% of such Net Cash Proceeds. Any prepayment pursuant to this clause (iv)
shall be applied as set forth in clause (vi) below.

 

(v)           Excess Cash Flow. Within ninety-five (95) days after the end
of each fiscal year of GGC, commencing with the fiscal year ending December 31,
2007, GGC shall prepay the Loans and Cash Collateralize the L/C Obligations in
aggregate amount equal 75% (if the Consolidated Leverage Ratio as of the end of
such fiscal year is greater than or equal to 3.5 to 1.0) or 50% (if the Consolidated
Leverage Ratio as of the end of such fiscal year is less than 3.5 to 1.0) of
Excess Cash Flow for such fiscal year. Any prepayment pursuant to this clause
(v) shall be applied as set forth in clause (vi) below.

 

(vi)          Application of Mandatory Prepayments. All amounts required to be paid pursuant to
this Section 2.05(b) shall be applied as follows:

 

(A)          (1)           with respect to all amounts prepaid pursuant
to Section 2.05(b)(i)(A), to Domestic Revolving Loans and (after all
Domestic Revolving Loans have been repaid) to Cash Collateralize the Domestic
L/C Obligations; and

 

(2)           with respect to all amounts prepaid pursuant
to Section 2.05(b)(i)(B), to Canadian Revolving Loans (other than the
Bankers’ Acceptance Advances), to a cash collateral account in respect of the
Bankers’ Acceptance Advances and Canadian Swing Line Loans and (after all
Canadian Revolving Loans and Canadian Swing Line Loans have been repaid and
Bankers’ Acceptance Advances have been cash collateralized) to Cash
Collateralize the Canadian L/C Obligations; provided, however, the applicable
Borrower may direct the Canadian Administrative Agent to use such cash
collateral to repay any Canadian Revolving Loans and/or Canadian Swing Line
Loans borrowed by such Borrower subsequent to the date of such Cash
Collateralization; and

 

(B)           with respect to all amounts prepaid pursuant
to Sections 2.05(b)(ii):

 

(1)           if the assets subject to any such Disposition
or Involuntary Disposition were owned by GGC or any of its Subsidiaries (other
than any Canadian Subsidiary), first to the Term Loan (ratably to the
remaining principal amortization payments), until the Term Loan has been paid
in full, second, pro rata to the Domestic Revolving Loans, the Canadian
Revolving Loans (other than the Bankers’ Acceptance Advances), a cash
collateral account in respect of the Bankers’ Acceptance Advances and the
Canadian Swing Line Loans and then pro rata to Cash Collateralize the Domestic
L/C Obligations and the Canadian L/C Obligations; and

 

(2)           if the assets subject to any such Disposition
or Involuntary Disposition were owned by the Canadian Borrower or any of its
Canadian Subsidiaries, to the Canadian Revolving Loans (other than the Bankers’
Acceptance Advances), a cash collateral 

 

 

account in respect of the
Bankers’ Acceptance Advances and the Canadian Swing Line Loans and then to Cash
Collateralize the Canadian L/C Obligations; or

 

(C)           with respect to all amounts prepaid pursuant
to Sections 2.06(b)(iii)  and (iv):

 

(1)           if the Debt Issuance or the Equity Issuance
subject to a prepayment is with respect to GGC or any of its Subsidiaries
(other than any Canadian Subsidiary), first to the Term Loan (ratably to
the remaining principal amortization payments), until the Term Loan has been
paid in full, second, pro rata to the Domestic Revolving Loans, the
Canadian Revolving Loans (other than the Bankers’ Acceptance Advances), a cash
collateral account in respect of the Bankers’ Acceptance Advances and the
Canadian Swing Line Loans and then pro rata to Cash Collateralize the Domestic
L/C Obligations and the Canadian L/C Obligations; and

 

(2)           if the Debt Issuance or the Equity Issuance
subject to a prepayment is with respect to the Canadian Borrower or any of its
Canadian Subsidiaries, to the Canadian Revolving Loans (other than the Bankers’
Acceptance Advances), a cash collateral account in respect of the Bankers’
Acceptance Advances and Canadian Swing Line Loans and then to Cash
Collateralize the Canadian L/C Obligations; or

 

(D)          with respect to all amounts prepaid pursuant
to Section 2.05(b)(v), first to the Term Loan (ratably to the
remaining principal amortization payments), until the Term Loan has been paid
in full, second, pro rata to the Domestic Revolving Loans, Canadian
Revolving Loans (other than the Bankers’ Acceptance Advances), a cash
collateral account in respect of the Bankers’ Acceptance Advances and Canadian
Swing Line Loans and then (after all Revolving Loans (other than Bankers’
Acceptance Advances) and Swing Line Loans have been repaid and Bankers’
Acceptance Advances cash collateralized) to Cash Collateralize the L/C
Obligations on a pro rata basis.

 

Within
the parameters of the applications set forth above, prepayments shall be
applied first to Base Rate Loans and then to Eurodollar Rate Loans in direct
order of Interest Period maturities. All prepayments under this Section
2.05(b) shall be subject to Section 3.05, but otherwise without
premium or penalty, and shall be accompanied by interest on the principal
amount prepaid through the date of prepayment.

 

(vii)         Eurodollar Prepayment Account. If a Borrower is required to make a
mandatory prepayment of Eurodollar Rate Loans under this Section 2.05(b),
so long as no Default or Event of Default exists, such Borrower shall have the
right, in lieu of making such prepayment in full, to deposit an amount equal to
such mandatory prepayment with the applicable Administrative Agent in a cash
collateral account maintained (pursuant to documentation reasonably
satisfactory to such applicable Administrative Agent) by and in the 

 

 

sole dominion and control of
such Administrative Agent. Any amounts so deposited shall be held by the
applicable Administrative Agent as collateral for the prepayment of such
Eurodollar Rate Loans and shall be applied to the prepayment of the applicable
Eurodollar Rate Loans at the end of the current Interest Periods applicable
thereto or, sooner, at the election of the applicable Administrative Agent,
upon the occurrence of a Default or an Event of Default.

 

2.06        Termination or Reduction of Commitments.

 

(a)           Domestic Revolving Commitments. GGC may, upon notice to the Domestic
Administrative Agent, terminate the Aggregate Domestic Revolving Commitments,
or from time to time permanently reduce the Aggregate Domestic Revolving
Commitments; provided that (i) any such notice shall be received by
the Domestic Administrative Agent not later than 11:00 a.m. five Business
Days prior to the date of termination or reduction, (ii) any such partial
reduction shall be in an aggregate amount of US$5,000,000 or any whole multiple
of US$1,000,000 in excess thereof, (iii) GGC shall not terminate or reduce
the Aggregate Domestic Revolving Commitments if, after giving effect thereto
and to any concurrent prepayments hereunder, the Total Domestic Revolving
Outstandings would exceed the Aggregate Domestic Revolving Commitments and (iv)
if, after giving effect to any reduction of the Aggregate Domestic Revolving
Commitments, the Domestic Letter of Credit Sublimit exceeds the amount of the
Aggregate Domestic Revolving Commitments, such sublimit shall be automatically
reduced by the amount of such excess. The Domestic Administrative Agent will
promptly notify the applicable Lenders of any such notice of termination or
reduction of the Aggregate Domestic Revolving Commitments. The amount of any
such Aggregate Domestic Revolving Commitment reduction shall not be applied to
the Domestic Letter of Credit Sublimit unless otherwise specified by GGC. Any
reduction of the Aggregate Domestic Revolving Commitments shall be applied to
the Domestic Revolving Commitment of each Domestic Revolving Lender according
to its Applicable Percentage. All fees accrued until the effective date of any
termination of the Aggregate Domestic Revolving Commitments shall be paid on
the effective date of such termination.

 

(b)           Canadian Revolving Commitments. The Borrowers may, upon notice to the
Canadian Administrative Agent, terminate the Aggregate Canadian Revolving
Commitments, or from time to time permanently reduce the Aggregate Canadian
Revolving Commitments; provided that (i) any such notice shall be
received by the Canadian Administrative Agent not later than 11:00 a.m.
(Toronto time) five Business Days prior to the date of termination or
reduction, (ii) any such partial reduction shall be in an aggregate amount
of CAN$5,000,000 or any whole multiple of CAN$1,000,000 in excess thereof,
(iii) the Canadian Borrower shall not terminate or reduce the Aggregate
Canadian Revolving Commitments if, after giving effect thereto and to any
concurrent prepayments hereunder, the Total Canadian Revolving Outstandings
would exceed the Aggregate Canadian Revolving Commitments and (iv) if, after
giving effect to any reduction of the Aggregate Canadian Revolving Commitments,
the Canadian Letter of Credit Sublimit exceeds the amount of the Aggregate
Canadian Revolving Commitments, the Canadian Letter of Credit Sublimit shall be
automatically reduced by the amount of such excess. The Canadian Administrative
Agent will promptly notify the applicable Lenders of any such notice of termination
or reduction of the Aggregate Canadian Revolving Commitments. The amount of any
such Aggregate Canadian Revolving Commitment reduction shall not be applied to
the Canadian Letter of Credit Sublimit unless otherwise specified by the
Canadian Borrower or GGC. Any reduction of the Aggregate Canadian Revolving
Commitments shall be applied to the Canadian Revolving Commitment of each
Canadian Revolving Lender according to its Applicable Percentage. All fees
accrued until the effective date of any termination of the 

 

 

Aggregate
Canadian Revolving Commitments shall be paid on the effective date of such
termination.

 

(c)           Canadian Swing Line Commitment. The Canadian Borrower may, upon notice to
the Canadian Administrative Agent and the Canadian Swing Line Lender, terminate
the Canadian Swing Line Commitment, or from time to time permanently reduce the
Canadian Swing Line Commitment; provided that (i) any such notice
shall be received by the Canadian Administrative Agent and the Canadian Swing
Line Lender not later than 11:00 a.m. (Toronto time) five Business Days
prior to the date of termination or reduction, (ii) any such partial
reduction shall be in an aggregate amount of US$5,000,000 or any whole multiple
of US$1,000,000 in excess thereof and (iii) the Canadian Borrower shall
not terminate or reduce the Canadian Swing Line Commitments if, after giving
effect thereto and to any concurrent prepayments hereunder, the Canadian Swing
Line Loans outstanding would exceed the Canadian Swing Line Commitment.

 

2.07        Repayment of Loans.

 

(a)           Revolving Loans.

 

(i)            GGC shall repay to the Domestic Revolving
Lenders on the Revolving Loan Maturity Date the aggregate principal amount of
all Domestic Revolving Loans outstanding on such date.

 

(ii)           The applicable Borrower shall repay to the
Canadian Revolving Lenders on the Revolving Loan Maturity Date the aggregate
principal amount of all Canadian Revolving Loans made to such Borrower
outstanding on such date.

 

(b)           Canadian Swing Line Loans. The Canadian Borrower shall repay each
Canadian Swing Line Loan on the Revolving Loan Maturity Date the aggregate
principal amount of all Canadian Swing Line Loans outstanding on such date.

 

(c)           Term Loan. GGC shall repay the outstanding principal amount of the Term Loan in
installments on the dates and in the amounts set forth in the table below (as
such installments may hereafter be adjusted as a result of prepayments made
pursuant to Section 2.05), unless accelerated sooner pursuant to Section
9.02:

 

 

	
  Payment
  Dates

  	
   

  	
  Principal Amortization

  Payments (% of Term

  Loan, including any

  increased portion pursuant

  to Section 2.14, if

  applicable)

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  December 31, 2006

  	
   

  	
  0.25

  	
  %

  
	
  March 31, 2007

  	
   

  	
  0.25

  	
  %

  
	
  June 30, 2007

  	
   

  	
  0.25

  	
  %

  
	
  September 30, 2007

  	
   

  	
  0.25

  	
  %

  
	
  December 31, 2007

  	
   

  	
  0.25

  	
  %

  
	
  March 31, 2008

  	
   

  	
  0.25

  	
  %

  
	
  June 30, 2008

  	
   

  	
  0.25

  	
  %

  
	
  September 30, 2008

  	
   

  	
  0.25

  	
  %

  
	
  December 31, 2008

  	
   

  	
  0.25

  	
  %

  
	
  March 31, 2009

  	
   

  	
  0.25

  	
  %

  
	
  June 30, 2009

  	
   

  	
  0.25

  	
  %

  
	
  September 30, 2009

  	
   

  	
  0.25

  	
  %

  
	
  December 31, 2009

  	
   

  	
  0.25

  	
  %

  
	
  March 31, 2010

  	
   

  	
  0.25

  	
  %

  
	
  June 30, 2010

  	
   

  	
  0.25

  	
  %

  
	
  September 30, 2010

  	
   

  	
  0.25

  	
  %

  
	
  December 31, 2010

  	
   

  	
  0.25

  	
  %

  
	
  March 31, 2011

  	
   

  	
  0.25

  	
  %

  
	
  June 30, 2011

  	
   

  	
  0.25

  	
  %

  
	
  September 30, 2011

  	
   

  	
  0.25

  	
  %

  
	
  December 31, 2011

  	
   

  	
  0.25

  	
  %

  
	
  March 31, 2012

  	
   

  	
  0.25

  	
  %

  
	
  June 30, 2012

  	
   

  	
  0.25

  	
  %

  
	
  September 30, 2012

  	
   

  	
  0.25

  	
  %

  
	
  December 31, 2012

  	
   

  	
  23.5

  	
  %

  
	
  March 31, 2013

  	
   

  	
  23.5

  	
  %

  
	
  June 30, 2013

  	
   

  	
  23.5

  	
  %

  
	
  Term Loan

  Maturity Date

  	
   

  	
  Outstanding Principal Balance of Term Loan

  	
   

  

 

2.08                        Interest.

 

(a)                                  Subject to the provisions of subsection (b) below,
(i) each Eurodollar Rate Loan shall bear interest on the outstanding
principal amount thereof for each Interest Period at a rate per annum equal to
the sum of the Eurodollar Rate for such Interest Period plus the
Applicable Rate; (ii) each Base Rate Loan shall bear interest on the
outstanding principal amount thereof from the applicable borrowing date at a
rate per annum equal to the Base Rate plus the Applicable Rate; (iii) each
Bankers’ Acceptance Advance shall be entitled to an acceptance fee determined
in accordance with Section 2.02(g) and (iv) each Swing
Line Loan shall bear interest on the outstanding principal amount thereof from
the applicable borrowing date at a rate per annum equal to the Base Rate plus
the Applicable Rate.

 

(b)                                 (i)                                     If any amount of principal of any Loan is not
paid when due (without regard to any applicable grace periods), whether at
stated maturity, by acceleration or otherwise, such amount shall thereafter
bear interest at a fluctuating interest rate per annum at all times equal to
the Default Rate to the fullest extent permitted by applicable Laws.

 

(ii)                                  If any amount (other than principal of any
Loan) payable by any Borrower under any Loan Document is not paid when due
(without regard to any applicable grace periods), whether at stated maturity,
by acceleration or otherwise, such amount shall thereafter bear interest at a
fluctuating interest rate per annum at all times equal to the Default Rate to
the fullest extent permitted by applicable Laws.

 

(iii)                               Upon the request of the Required Domestic
Lenders or the Required Canadian Lenders, as applicable, while any Event of
Default exists, the applicable Borrower shall pay interest on the principal
amount of all outstanding Obligations

 

 

hereunder
at a fluctuating interest rate per annum at all times equal to the Default Rate
to the fullest extent permitted by applicable Laws.

 

(iv)                              Accrued and unpaid interest on past due
amounts (including interest on past due interest) shall be due and payable upon
demand.

 

(c)                                  Interest on each Loan shall be due and
payable in arrears on each Interest Payment Date applicable thereto (or in the
case of Bankers’ Acceptance Advances by discount on the date of funding of such
Bankers’ Acceptance Advance) and at such other times as may be specified
herein. Interest hereunder shall be due and payable in accordance with the
terms hereof before and after judgment, and before and after the commencement
of any proceeding under any Debtor Relief Law.

 

2.09                        Fees.

 

In
addition to certain fees described in subsections (j) and (k) of Section 2.03:

 

(a)                                  (i)                                     Domestic Commitment Fee. GGC shall pay to the Domestic
Administrative Agent for the account of each Domestic Revolving Lender in
accordance with its Applicable Percentage, a commitment fee (the “Domestic
Commitment Fee”) equal to the product of (i) the Applicable Rate times
(ii) the actual daily amount by which the Aggregate Domestic Revolving
Commitments exceed the sum of (y) the Outstanding Amount of Domestic
Revolving Loans and (z) the Outstanding Amount of Domestic L/C Obligations.
The Domestic Commitment Fee shall accrue at all times during the Domestic
Availability Period, including at any time during which one or more of the
conditions in Article V is not met, and shall be due and payable
quarterly in arrears on the last Business Day of each March, June, September and
December, commencing with the first such date to occur after the Closing Date,
and on the last day of the Domestic Availability Period. The Domestic
Commitment Fee shall be calculated quarterly in arrears, and if there is any
change in the Applicable Rate during any quarter, the actual daily amount shall
be computed and multiplied by the Applicable Rate separately for each period
during such quarter that such Applicable Rate was in effect.

 

(ii)                                  Canadian Commitment Fee. The Canadian Borrower or, at the election
of GGC, GGC shall pay to the Canadian Administrative Agent for the account of
each Canadian Revolving Lender in accordance with its Applicable Percentage, a
commitment fee (the “Canadian Commitment Fee”) equal to the product of (i) the
Applicable Rate times (ii) the actual daily amount by which the
Aggregate Canadian Revolving Commitments exceed the sum of (y) the
Outstanding Amount of Canadian Revolving Loans and (z) the Outstanding
Amount of Canadian L/C Obligations. The Canadian Commitment Fee shall accrue at
all times during the Canadian Availability Period, including at any time during
which one or more of the conditions in Article V is not met, and
shall be due and payable quarterly in arrears on the last Business Day of each
March, June, September and December, commencing with the first such date
to occur after the Closing Date, and on the last day of the Canadian
Availability Period. The Canadian Commitment Fee shall be calculated quarterly
in arrears, and if there is any change in the Applicable Rate during any
quarter, the actual daily amount shall be computed and multiplied by the
Applicable Rate separately for each period during such quarter that such
Applicable Rate was in effect.

 

(iii)                               Canadian Swing Line Commitment Fee. The Canadian Borrower shall

 

 

pay
to the Canadian Swing Line Lender a commitment fee (the “Canadian Swing Line
Commitment Fee”) equal to the product of (i) the Applicable Rate times
(ii) the actual daily amount by which the Canadian Swing Line Commitments
exceed the sum of the Outstanding Amount of Canadian Swing Line Loans. The
Canadian Swing Line Commitment Fee shall accrue at all times during the
Canadian Availability Period, including at any time during which one or more of
the conditions in Article V is not met, and shall be due and
payable quarterly in arrears on the last Business Day of each March, June, September and
December, commencing with the first such date to occur after the Closing Date,
and on the last day of the Canadian Availability Period. The Canadian Swing
Line Commitment Fee shall be calculated quarterly in arrears, and if there is
any change in the Applicable Rate during any quarter, the actual daily amount
shall be computed and multiplied by the Applicable Rate separately for each
period during such quarter that such Applicable Rate was in effect.

 

(b)                                 Fee Letter. GGC shall pay to the Domestic Administrative Agent and the Canadian
Administrative Agent for their own respective accounts fees in the amounts and
at the times specified in the Administrative Agent Fee Letter. Such fees shall
be fully earned when paid and shall not be refundable for any reason
whatsoever.

 

2.10                        Computation of Interest and
Fees.

 

(a)                                  All computations of interest for Base Rate
Loans when the Base Rate is determined by Bank of America’s “prime rate” as
determined by the applicable Administrative Agent and the acceptance fee
payable in respect of Bankers’ Acceptance Advances shall be made on the basis
of a year of 365 or 366 days, as the case may be, and actual days elapsed.
All other computations of fees and interest shall be made on the basis of a 360-day
year and actual days elapsed (which results in more fees or interest, as
applicable, being paid than if computed on the basis of a 365-day year). Interest
shall accrue on each Loan for the day on which the Loan is made, and shall not
accrue on a Loan, or any portion thereof, for the day on which the Loan or such
portion is paid, provided that any Loan that is repaid on the same day
on which it is made shall, subject to Section 2.12(a), bear
interest for one day. Each determination by the applicable Administrative Agent
of an interest rate or fee hereunder shall be conclusive and binding for all
purposes, absent manifest error.

 

(b)                                 For the purposes of the Interest Act (Canada),
(i) whenever a rate of interest or fee rate hereunder is calculated on the
basis of a year (the “deemed year”) that contains fewer days than the actual
number of days in the calendar year of calculation, such rate of interest or
fee rate shall be expressed as a yearly rate by multiplying such rate of
interest or fee rate by the actual number of days in the calendar year of
calculation and dividing it by the number of days in the deemed year, (ii) the
principle of deemed reinvestment of interest shall not apply to any interest
calculation hereunder and (iii) the rates of interest stipulated herein
are intended to be nominal rates and not effective rates or yields.

 

2.11                        Evidence of Debt.

 

(a)                                  The Credit Extensions made by each Lender
shall be evidenced by one or more accounts or records maintained by such Lender
and by the applicable Administrative Agent in the ordinary course of business. The
accounts or records maintained by the applicable Administrative Agent and each
Lender shall be conclusive absent manifest error of the amount of the Credit
Extensions made by the Lenders to the Borrowers and the interest and payments
thereon. Any failure to so record or any error in doing so shall not, however,
limit or otherwise

 

 

affect
the obligation of the applicable Borrower hereunder to pay any amount owing
with respect to the Obligations. In the event of any conflict between the
accounts and records maintained by any Lender and the accounts and records of
the applicable Administrative Agent in respect of such matters, the accounts
and records of the applicable Administrative Agent shall control in the absence
of manifest error. Upon the request of any Lender made through the applicable
Administrative Agent, the Borrowers shall execute and deliver to such Lender
(through the applicable Administrative Agent) a Note, which shall evidence such
Lender’s Loans in addition to such accounts or records. Each such Note shall (i) in
the case of Domestic Revolving Loans, be in the form of Exhibit B-1
(a “Domestic Revolving Note”), (ii) in the case of Canadian
Revolving Loans, be in the form of Exhibit B-2 (a “Canadian
Revolving Note”), (iii) in the case of the Term Loan, be in the form of
Exhibit B-3 (the “Term Note”) and (iv) in the case of
the Canadian Swing Line Loans, the promissory note shall be in the form of
Exhibit B-4 (the “Canadian Swing Line Note”). Each Lender may attach
schedules to its Note and endorse thereon the date, Type (if applicable),
amount and maturity of its Loans and payments with respect thereto.

 

(b)                                 In addition to the accounts and records
referred to in subsection (a), each Lender and the applicable
Administrative Agent shall maintain in accordance with its usual practice
accounts or records evidencing the purchases and sales by such Lender of participations
in applicable Letters of Credit. In the event of any conflict between the
accounts and records maintained by the applicable Administrative Agent and the
accounts and records of any Lender in respect of such matters, the accounts and
records of the applicable Administrative Agent shall control in the absence of
manifest error.

 

2.12                        Payments Generally;
Administrative Agent’s Clawback.

 

(a)                                  General. All payments to be made by the Borrowers shall be made without
condition or deduction for any counterclaim, defense, recoupment or setoff. Except
as otherwise expressly provided herein, (i) all payments by GGC hereunder
with respect to principal and interest on Domestic Revolving Loans and the Term
Loan shall be made to the Domestic Administrative Agent, for the account of the
respective Lenders to which such payment is owed, at the Domestic
Administrative Agent’s Office and in immediately available funds not later than
2:00 p.m. on the date specified herein and (ii) all payments by the
Borrowers hereunder with respect to principal and interest on Canadian
Revolving Loans (A) denominated in Canadian Dollars shall be made to the
Canadian Administrative Agent, for the account of the respective Lenders to
which such payment is owed, at the Canadian Administrative Agent’s Office in
Canadian Dollars and in immediately available funds not later than 2:00 p.m.
(Toronto time) on the dates specified herein and (B) denominated in U.S.
Dollars shall be made to the Canadian Administrative Agent, for the account of
the respective Lenders to which such payment is owed, at the Canadian
Administrative Agent’s Office in U.S. Dollars and in immediately available
funds not later than 2:00 p.m. on the dates specified herein. Without
limiting the generality of the foregoing, (i) the Domestic Administrative
Agent may require that any payments due under this Agreement be made in
the United States and (ii) the Canadian Administrative Agent may require
that any payments due (A) from the Canadian Borrower under this Agreement
be made in Canada and (B) from GGC under this Agreement be made in the
United States. If, for any reason, the Borrowers are prohibited by any Law from
making any required payment hereunder in Canadian Dollars, the Borrowers shall
make such payment in U.S. Dollars in the U.S. Dollar Equivalent of Canadian
Dollars. The applicable Administrative Agent will promptly distribute to each
Lender its Applicable Percentage of such payment in like funds as received by
wire transfer to such Lender’s Lending Office. All payments received by (x) the
Domestic Administrative Agent after 2:00 p.m. and (y) the Canadian
Administrative Agent after 2:00 p.m. (Toronto time) shall in each

 

 

case
be deemed received on the next succeeding Business Day and any applicable
interest or fee shall continue to accrue. Subject to the definition of “Interest
Period”, if any payment to be made by the Borrowers (other than payments on
Bankers’ Acceptance Advances) shall come due on a day other than a Business
Day, payment shall be made on the next following Business Day, and such
extension of time shall be reflected in computing interest or fees, as the case
may be.

 

(b)                                 (i)                                     Funding by Lenders; Presumption by the
Administrative Agent. Unless
the applicable Administrative Agent shall have received notice from a Lender
prior to the proposed date of any Borrowing of Eurodollar Rate Loans (or, in
the case of any Borrowing of Base Rate Loans, prior to 12:00 noon Eastern time
on the date of such Borrowing) that such Lender will not make available to the
applicable Administrative Agent such Lender’s share of such Borrowing, the
applicable Administrative Agent may assume that such Lender has made such
share available on such date in accordance with Section 2.02 (or,
in the case of any Borrowing of Base Rate Loans, that such Lender has made such
share available in accordance with and at the time required by Section 2.02)
and may, in reliance upon such assumption, make available to the applicable
Borrower a corresponding amount. In such event, if a Lender has not in fact
made its share of the applicable Borrowing available to the applicable
Administrative Agent, then such Lender and the applicable Borrower severally
agree to pay to the applicable Administrative Agent forthwith on demand such
corresponding amount in immediately available funds with interest thereon, for
each day from and including the date such amount is made available to the
applicable Borrower to but excluding the date of payment to the applicable
Administrative Agent, at (A) in the case of a payment to be made by such
Lender, the Overnight Rate, plus any administrative, processing or similar fees
customarily charged by the applicable Administrative Agent in connection with
the foregoing, and (B) in the case of a payment to be made by the applicable
Borrower, the interest rate applicable to Base Rate Loans. If the applicable
Borrower and such Lender shall pay such interest to the applicable
Administrative Agent for the same or an overlapping period, the applicable
Administrative Agent shall promptly remit to the applicable Borrower the amount
of such interest paid by the applicable Borrower for such period. If such
Lender pays its share of the applicable Borrowing to the applicable
Administrative Agent, then the amount so paid shall constitute such Lender’s
Loan included in such Borrowing. Any payment by the applicable Borrower shall
be without prejudice to any claim the applicable Borrower may have against
a Lender that shall have failed to make such payment to the applicable
Administrative Agent.

 

(ii)                                  Payments by Borrower; Presumptions by
Administrative Agent. Unless
the applicable Administrative Agent shall have received notice from the
applicable Borrower prior to the date on which any payment is due to the
applicable Administrative Agent for the account of the applicable Lenders or
the applicable L/C Issuer hereunder that the applicable Borrower will not make
such payment, the applicable Administrative Agent may assume that the
applicable Borrower has made such payment on such date in accordance herewith
and may, in reliance upon such assumption, distribute to the applicable Lenders
or the applicable L/C Issuer, as the case may be, the amount due. In such
event, if the applicable Borrower has not in fact made such payment, then each
of the applicable Lenders or the applicable L/C Issuer, as the case may be,
severally agrees to repay to the applicable Administrative Agent forthwith on
demand the

 

 

amount
so distributed to such Lender or the applicable L/C Issuer, in immediately
available funds with interest thereon, for each day from and including the date
such amount is distributed to it to but excluding the date of payment to the
applicable Administrative Agent, at the Overnight Rate.

 

A notice of the applicable Administrative Agent to any Lender or any
Borrower with respect to any amount owing under this subsection (b) shall
be conclusive, absent manifest error.

 

(c)                                  Failure to Satisfy Conditions Precedent. If any Lender makes available to the
applicable Administrative Agent, as the case may be, funds for any Loan to
be made by such Lender as provided in the foregoing provisions of this Article II,
and such funds are not made available to the applicable Borrower by the
applicable Administrative Agent because the conditions to the applicable Credit
Extension set forth in Article V are not satisfied or waived in
accordance with the terms hereof, the applicable Administrative Agent shall
return such funds (in like funds as received from such Lender) to such Lender,
without interest.

 

(d)                                 Obligations of Lenders Several. The obligations of the Lenders hereunder to
make Loans, to fund participations in Letters of Credit and to make payments
pursuant to Section 11.04(c) are several and not joint. The
failure of any Lender to make any Loan, to fund any such participations or to
make any payment under Section 11.04(c) on any date required
hereunder shall not relieve any other Lender of its corresponding obligation to
do so on such date, and no Lender shall be responsible for the failure of any
other Lender to so make its Loan, to purchase its participation or to make its
payment under Section 11.04(c).

 

(e)                                  Funding Source. Nothing herein shall be deemed to obligate
any Lender to obtain the funds for any Loan in any particular place or manner
or to constitute a representation by any Lender that it has obtained or will
obtain the funds for any Loan in any particular place or manner.

 

(f)                                    Allocation of Funds. If at any time insufficient funds are
received by or are available to an Administrative Agent to pay fully all
amounts of principal and Domestic L/C Borrowings, Canadian L/C Borrowings,
interest and fees then due hereunder, such funds shall be applied (i) first,
toward costs and expenses (including all reasonable fees, expenses and
disbursements of any law firm or other counsel and amounts payable under Article III)
incurred by each Administrative Agent and each Lender, (ii) second,
toward repayment of interest and fees then due hereunder, ratably among the
parties entitled thereto in accordance with the amounts of interest and fees
then due to such parties, and (iii) third, toward repayment of
principal, Domestic L/C Borrowings and Canadian L/C Borrowings then due
hereunder, ratably among the parties entitled thereto in accordance with the
amounts of principal, Domestic L/C Borrowings and Canadian L/C Borrowings then
due to such parties.

 

2.13                        Sharing of Payments by
Lenders.

 

(a)                                  If any Lender shall, by exercising any right
of setoff or counterclaim or otherwise, obtain payment in respect of any
principal of or interest on any of the Loans made by it, or the participations
in L/C Obligations held by it resulting in such Lender’s receiving payment of a
proportion of the aggregate amount of such Loans or participations and accrued
interest thereon greater than its pro  rata share thereof as
provided herein, then the Lender receiving such greater proportion shall (a) notify
each Administrative Agent of such fact, and (b) purchase (for cash at face
value) participations in (1) the Term Loan, Domestic Revolving Loans and

 

 

subparticipations
in Domestic L/C Obligations of the other Lenders if such Lender is a Domestic
Revolving Lender or (2) the Canadian Revolving Loans, Canadian Swing Line
Loans and subparticipations in Canadian L/C Obligations of the other Lenders if
such Lender is a Canadian Revolving Lender, or make such other adjustments as
shall be equitable, so that the benefit of all such payments shall be shared by
the Lenders, as applicable, ratably in accordance with the aggregate amount of
principal of and accrued interest on their respective Loans and participations
and other amounts owing them, provided that:

 

(i)                                     if any such participations or
subparticipations are purchased and all or any portion of the payment giving
rise thereto is recovered, such participations or subparticipations shall be
rescinded and the purchase price restored to the extent of such recovery,
without interest; and

 

(ii)                                  the provisions of this Section shall not
be construed to apply to (x) any payment made by the Borrowers pursuant to
and in accordance with the express terms of this Agreement or (y) any
payment obtained by a Lender as consideration for the assignment of or sale of
a participation in any of its Loans or subparticipations in L/C Obligations to
any assignee or participant, other than to a Borrower or any Subsidiary thereof
(as to which the provisions of this Section shall apply).

 

Each
Loan Party consents to the foregoing and agrees, to the extent it may effectively
do so under applicable law, that any Lender acquiring a participation pursuant
to the foregoing arrangements may exercise against such Loan Party rights
of setoff and counterclaim with respect to such participation as fully as if
such Lender were a direct creditor of such Loan Party in the amount of such
participation.

 

2.14                        Facility Increase.

 

GGC
may at any time and from time to time, upon prior written notice by GGC to
each Administrative Agent, increase the Commitments (but not Domestic Letter of
Credit Sublimit, the Canadian Letter of Credit Sublimit or the Canadian Swing
Line Sublimit) by up to the U.S. Dollar Equivalent of TWENTY FIVE MILLION
DOLLARS ($25,000,000) with (a) additional Domestic Revolving Commitments
from any existing Domestic Revolving Lender, (b) additional Term Loan
Commitments from any existing Term Loan Lender or (c) additional Canadian
Revolving Commitments from any existing Canadian Revolving Lender or (d) new
Domestic Revolving Commitments, Term Loan Commitments or Canadian Revolving
Commitments, as applicable, from any other Person selected by the Borrowers and
approved by the applicable Administrative Agent and applicable L/C Issuers; provided
that:

 

(i)                                     any such increase shall be in a minimum
principal amount of US$10 million and in integral multiples of US$5 million in
excess thereof (or the Canadian Dollar Equivalent thereof with respect to
Canadian Revolving Commitments);

 

(ii)                                  no Default or Event of Default shall be
continuing at the time of any such increase;

 

(iii)                               no Lender shall be under any obligation to
increase its Commitments and any such decision whether to increase its
Commitments shall be in such Lender’s sole and absolute discretion;

 

(iv)                              any existing Lenders shall increase its
Commitment by executing such

 

 

commitment
agreements as customarily and reasonably required by the applicable
Administrative Agent, and any new Lender shall join this Agreement by executing
such joinder documents as customarily and reasonably required by the applicable
Administrative Agent; and

 

(v)                                 as a condition precedent to such increase,
the applicable Borrower shall deliver to the Domestic Administrative Agent a
certificate of each Loan Party dated as of the date of such increase (in
sufficient copies for each Lender) signed by a Responsible Officer of such Loan
Party (A) certifying and attaching the resolutions adopted by such Loan
Party approving or consenting to such increase and (B) in the case of the
Borrowers, certifying that, before and after giving effect to such increase, (1) the
representations and warranties contained in Article VI and the
other Loan Documents are true and correct on and as of the date of such
increase, except to the extent that such representations and warranties
specifically refer to an earlier date, in which case they are true and correct
as of such earlier date, and except that for purposes of this Section 2.14,
the representations and warranties contained in subsections (a) and (c) of
Section 6.05 shall be deemed to refer to the most recent statements
furnished pursuant to clauses (a) and (b), respectively, of Section 7.01,
and (2) no Default or Event of Default exists.

 

GGC
(with respect to the Domestic Revolving Loans and Term Loan) and the Canadian
Borrower or GGC, as applicable (with respect to the Canadian Revolving Loans)
shall prepay any Loans, as applicable, outstanding on the date of any such
increase (and pay any additional amounts required pursuant to Section 3.05)
to the extent necessary to keep the outstanding Loans, as applicable, ratable
with any revised Commitments arising from any nonratable increase in such
Commitments under this Section 2.14. In connection with any such
increase in the Commitments, Schedule 2.01 shall be revised by the
Administrative Agents to reflect the new Commitments and distributed to the
Lenders.

 

ARTICLE III

TAXES, YIELD PROTECTION AND ILLEGALITY

 

3.01                        Taxes.

 

(a)                                  Payments Free of Taxes. Any and all payments by or on account of
any obligation of the Loan Parties hereunder or under any other Loan Document
shall be made free and clear of and without reduction or withholding for any
Indemnified Taxes or Other Taxes; provided that if any Loan Party shall
be required by applicable law to deduct any Indemnified Taxes (including any
Other Taxes) from such payments, then (i) the sum payable shall be
increased as necessary so that after making all required deductions (including
deductions applicable to additional sums payable under this Section) each
Administrative Agent, Lender or L/C Issuer, as the case may be, receives
an amount equal to the sum it would have received had no such deductions been
made, (ii) such Loan Party shall make such deductions and (iii) such
Loan Party shall timely pay the full amount deducted to the relevant
Governmental Authority in accordance with applicable law.

 

(b)                                 Payment of Other Taxes by the Loan Parties. Without limiting the provisions of subsection (a) above,
the Loan Parties shall timely pay any Other Taxes to the relevant Governmental
Authority in accordance with applicable law.

 

(c)                                  Indemnification by the Loan Parties. The Loan Parties shall indemnify each

 

 

Administrative
Agent, each Lender and each L/C Issuer within ten (10) days after demand
therefor, for the full amount of any Indemnified Taxes or Other Taxes
(including Indemnified Taxes or Other Taxes imposed or asserted on or
attributable to amounts payable under this Section) paid by such Administrative
Agent, such Lender or such L/C Issuer, as the case may be, and any
penalties, interest and reasonable expenses arising therefrom or with respect
thereto, whether or not such Indemnified Taxes or Other Taxes were correctly or
legally imposed or asserted by the relevant Governmental Authority. A
certificate as to the amount of such payment or liability delivered to the
applicable Borrower by a Lender or an L/C Issuer (with a copy to the applicable
Administrative Agent), or by the applicable Administrative Agent on its own
behalf or on behalf of a Lender or an L/C Issuer, shall be conclusive absent
manifest error.

 

(d)                                 Evidence of Payments. As soon as practicable after any payment of
Indemnified Taxes or Other Taxes by any Loan Party to a Governmental Authority,
the applicable Borrower shall deliver to the applicable Administrative Agent
the original or a certified copy of a receipt issued by such Governmental
Authority evidencing such payment, a copy of the return reporting such payment
or other evidence of such payment reasonably satisfactory to the applicable
Administrative Agent.

 

(e)                                  Status of Lenders. Any Foreign Lender that is entitled to an
exemption from or reduction of withholding tax under the law of the
jurisdiction in which a Borrower is resident for tax purposes, or any treaty to
which such jurisdiction is a party, with respect to payments hereunder or under
any other Loan Document shall deliver to the applicable Borrower (with a copy to
the applicable Administrative Agent), at the time or times prescribed by
applicable law or reasonably requested by such Borrower or the applicable
Administrative Agent such properly completed and executed documentation
prescribed by applicable law as will permit such payments to be made without
withholding or at a reduced rate of withholding. In addition, any Lender, if
requested by the applicable Borrower or the applicable Administrative Agent
shall deliver such other documentation prescribed by applicable law or
reasonably requested by such Borrower or the applicable Administrative Agent as
will enable such Borrower or the applicable Administrative Agent to determine
whether or not such Lender is subject to backup withholding, withholding or
information reporting requirements.

 

Without
limiting the generality of the foregoing, in the event that a Borrower is
resident for tax purposes in the United States, any Foreign Lender shall
deliver to such Borrower and the applicable Administrative Agent (in such number
of copies as shall be requested by the recipient) on or prior to the date on
which such Foreign Lender becomes a Lender under this Agreement (and from time
to time thereafter upon the request of the applicable Borrower or the
applicable Administrative Agent, but only if such Foreign Lender is legally
entitled to do so), whichever of the following is applicable:

 

(i)                                     duly completed copies of Internal Revenue
Service Form W-8BEN claiming eligibility for benefits of an income tax
treaty to which the United States is a party,

 

(ii)                                  duly completed copies of Internal Revenue
Service Form W-8ECI,

 

(iii)                               in the case of a Foreign Lender claiming the
benefits of the exemption for portfolio interest under section 881(c) of
the Code, (x) a certificate to the effect that such Foreign Lender is not (A) a
“bank” within the meaning of section 881(c)(3)(A) of the Code, (B) a
“10 percent shareholder” of either Borrower within the meaning of section 881(c)(3)(B) of
the Code, or (C) a “controlled foreign corporation” described in

 

 

section 881(c)(3)(C) of the Code and (y) duly completed
copies of Internal Revenue Service Form W-8BEN, or

 

(iv)                              any other form prescribed by applicable
law as a basis for claiming exemption from or a reduction in United States
Federal withholding tax duly completed together with such supplementary
documentation as may be prescribed by applicable law to permit a Borrower
to determine the withholding or deduction required to be made.

 

Without
limiting the generality of the foregoing, the Canadian Administrative Agent,
the applicable Canadian L/C Issuer, the Canadian Swing Line Lender and each
Canadian Revolving Lender shall have delivered to the Canadian Borrower and the
Canadian Administrative Agent on or prior to the Closing Date such certificates,
forms, documents or other evidence as may be applicable and determined by
the Canadian Borrower to be reasonably satisfactory to establish that each such
person is not a Foreign Lender in respect of the Canadian Borrower (it being
acknowledged that a representation by such person that it is not a Foreign
Lender in respect of the Canadian Borrower shall be considered to be reasonably
satisfactory evidence thereof if such representation is accompanied by an
explanation of the basis for such status).

 

(f)                                    Treatment of Certain Refunds. If an Administrative Agent, any Lender or
any L/C Issuer determines, in its sole discretion, that it has received a
refund of any Taxes or Other Taxes as to which it has been indemnified by any
Loan Party or with respect to which any Loan Party has paid additional amounts
pursuant to this Section, it shall pay to such Loan Party an amount equal to
such refund (but only to the extent of indemnity payments made, or additional
amounts paid, by such Loan Party under this Section with respect to the
Taxes or Other Taxes giving rise to such refund), net of all out-of-pocket
expenses of such Administrative Agent, such Lender or such L/C Issuer, as the
case may be, and without interest (other than any interest paid by the
relevant Governmental Authority with respect to such refund), provided
that each Loan Party, upon the request of such Administrative Agent, such
Lender or such L/C Issuer, agrees to repay the amount paid over to such Loan
Party (plus any penalties, interest or other charges imposed by the relevant
Governmental Authority) to such Administrative Agent, such Lender or such L/C
Issuer in the event such Administrative Agent, such Lender or such L/C Issuer
is required to repay such refund to such Governmental Authority. This subsection shall
not be construed to require either Administrative Agent, any Lender or any L/C
Issuer to make available its tax returns (or any other information relating to
its taxes that it deems confidential) to the Borrowers or any other Person.

 

3.02                        Illegality.

 

If
any Lender determines that any Change in Law has made it unlawful, or that any
Governmental Authority has asserted that it is unlawful, for any Lender or its
applicable Lending Office to make, maintain or fund Eurodollar Rate Loans
(whether denominated in U.S. Dollars or Canadian Dollars), to make or continue
Bankers’ Acceptance Advances, or to determine or charge interest rates based
upon the Eurodollar Rate, or any Governmental Authority has imposed material
restrictions on the authority of such Lender to purchase or sell, or to take
deposits of, U.S. Dollars or Canadian Dollars in the applicable interbank
market, then, on notice thereof by such Lender to the applicable Borrower
through the applicable Administrative Agent any obligation of such Lender to
make or continue Eurodollar Rate Loans or Bankers’ Acceptance Advances in the
affected currency or currencies or, to convert Base Rate Loans to Eurodollar
Rate Loans or Bankers’ Acceptance Advances, as applicable, shall be suspended
until such Lender notifies the applicable Administrative Agent and such
Borrower that the circumstances giving rise to such determination no longer
exist. Upon receipt of such notice, the applicable

 

 

Borrower
shall, upon demand from such Lender (with a copy to the applicable
Administrative Agent), prepay or, if applicable, convert all Eurodollar Rate
Loans or Bankers’ Acceptance Advances of such Lender to Base Rate Loans, either
on the last day of the Interest Period therefor or BA Period therefor, as
applicable, if such Lender may lawfully continue to maintain such
Eurodollar Rate Loans to such day, or immediately, if such Lender may not
lawfully continue to maintain such Eurodollar Rate Loans or Bankers’ Acceptance
Advances, as applicable. Upon any such prepayment or conversion, the applicable
Borrower shall also pay accrued interest on the amount so prepaid or converted.

 

3.03                        Inability to Determine Rates.

 

If
the Required Lenders determine that for any reason in connection with any
request for a Eurodollar Rate Loan or a conversion to or continuation thereof
that (a) deposits (whether in U.S. Dollars or Canadian Dollars) are not
being offered to banks in the applicable offshore interbank market for such
currency for the applicable amount and Interest Period of such Eurodollar Rate
Loan, (b) adequate and reasonable means do not exist for determining the
Eurodollar Rate for any requested Interest Period with respect to a proposed
Eurodollar Rate Loan (whether denominated in U.S. Dollars or Canadian Dollars),
or (c) the Eurodollar Rate for any requested Interest Period with respect
to a proposed Eurodollar Rate Loan does not adequately and fairly reflect the
cost to such Lenders of funding such Loan, the applicable Administrative Agent
will promptly so notify the applicable Borrower and each applicable Lender. Thereafter,
the obligation of the Lenders to make or maintain Eurodollar Rate Loans in the
affected currency or currencies shall be suspended until the applicable
Administrative Agent revokes such notice. Upon receipt of such notice, the
applicable Borrower may revoke any pending request for a Borrowing of,
conversion to or continuation of Eurodollar Rate Loans in the affected currency
or currencies or, failing that, will be deemed to have converted such request into
a request for a Borrowing of Base Rate Loans in the amount specified therein.

 

3.04                        Increased Costs; Reserves on
Eurodollar Rate Loans.

 

(a)                                  Increased Costs Generally. If any Change in Law shall:

 

(i)                                     impose, modify or deem applicable any
reserve, special deposit, compulsory loan, insurance charge or similar
requirement against assets of, deposits with or for the account of, or credit
extended or participated in by, any Lender (except any reserve requirement
contemplated by Section 3.04(e) or any L/C Issuer;

 

(ii)                                  subject any Lender or any L/C Issuer to any
Tax of any kind whatsoever with respect to this Agreement, any Letter of
Credit, any participation in a Letter of Credit, any Eurodollar Rate Loan or
Bankers’ Acceptance Advance made by it, or change the basis of taxation of
payments to such Lender or such L/C Issuer in respect thereof (except for
Indemnified Taxes or Other Taxes covered by Section 3.01 and the
imposition of, or any change in the rate of, any Excluded Tax payable by such
Lender or such L/C Issuer); or

 

(iii)                               impose on any Lender or any L/C Issuer or the
London interbank market any other condition, cost or expense affecting this
Agreement, Eurodollar Rate Loans or Bankers’ Acceptance Advances made by such
Lender, any Letter of Credit or any participation therein;

 

and
the result of any of the foregoing shall be to increase the cost to such Lender
of making or

 

 

maintaining
any Eurodollar Rate Loan or Bankers’ Acceptance Advance (or of maintaining its
obligation to make any such Loan or Bankers’ Acceptance Advance), or to
increase the cost to such Lender or such L/C Issuer of participating in,
issuing or maintaining any Letter of Credit (or of maintaining its obligation
to participate in or to issue any Letter of Credit), or to reduce the amount of
any sum received or receivable by such Lender or such L/C Issuer hereunder
(whether of principal, interest or any other amount) then, upon request of such
Lender or such L/C Issuer, the applicable Borrower will pay to such Lender or
such L/C Issuer, as the case may be, such additional amount or amounts as
will compensate such Lender or such L/C Issuer, as the case may be, for
such additional costs incurred or reduction suffered.

 

(b)                                 Capital Requirements. If any Lender or any L/C Issuer determines
that any Change in Law affecting such Lender or such L/C Issuer or any Lending
Office of such Lender or such Lender’s or such L/C Issuer’s holding company, if
any, regarding capital requirements has or would have the effect of reducing
the rate of return on such Lender’s or such L/C Issuer’s capital or on the
capital of such Lender’s or such L/C Issuer’s holding company, if any, as a
consequence of this Agreement, the Commitments of such Lender or the Loans made
by or participations in Letters of Credit held by, such Lender, the Letters of
Credit issued by such L/C Issuer, to a level below that which such Lender, such
L/C Issuer or such Lender’s or such L/C Issuer’s holding company could have
achieved but for such Change in Law (taking into consideration such Lender’s or
such L/C Issuer’s policies and the policies of such Lender’s or such L/C Issuer’s
holding company with respect to capital adequacy), then from time to time the
applicable Borrower will pay to such Lender or such L/C Issuer, as the case may be,
such additional amount or amounts as will compensate such Lender or such L/C
Issuer or such Lender’s or such L/C Issuer’s holding company for any such
reduction suffered.

 

(c)                                  Certificates for Reimbursement. A certificate of a Lender or any L/C Issuer
setting forth the amount or amounts necessary to compensate such Lender or such
L/C Issuer or its holding company, as the case may be, as specified in subsection (a) or
(b) of this Section, describing the circumstances giving rise to the
request for reimbursement and delivered to the applicable Borrower shall
be conclusive absent manifest error. The applicable Borrower shall pay such
Lender or such L/C Issuer, as the case may be, the amount shown as due on
any such certificate within ten (10) days after receipt thereof.

 

(d)                                 Delay in Requests. Failure or delay on the part of any
Lender or any L/C Issuer to demand compensation pursuant to the foregoing
provisions of this Section shall not constitute a waiver of such Lender’s
or such L/C Issuer’s right to demand such compensation; provided that no
Borrower shall be required to compensate a Lender or an L/C Issuer pursuant to
the foregoing provisions of this Section for any increased costs incurred
or reductions suffered more than six months prior to the date that such Lender
or such L/C Issuer, as the case may be, notifies the applicable Borrower
of the Change in Law giving rise to such increased costs or reductions and of
such Lender’s or such L/C Issuer’s intention to claim compensation therefor
(except that, if the Change in Law giving rise to such increased costs or
reductions is retroactive, then the six month period referred to above shall be
extended to include the period of retroactive effect thereof).

 

(e)                                  Reserves on Eurodollar Rate Loans. The applicable Borrower shall pay to each
Lender, (i) as long as such Lender shall be required to maintain reserves
with respect to liabilities or assets consisting of or including Eurocurrency
funds or deposits (currently known as “Eurocurrency liabilities”), additional
interest on the unpaid principal amount of each Eurodollar Rate Loan equal to
the actual costs of such reserves allocated to such Loan by such Lender (as
determined by such Lender in good faith, which determination shall be
conclusive), and (ii) as long as such Lender shall be required to comply
with any reserve ratio requirement or analogous

 

 

requirement
of any central banking or financial regulatory authority imposed in respect of
the maintenance of the Commitments or the funding of the Eurodollar Rate Loans,
such additional costs (expressed as a percentage per annum and rounded upwards,
if necessary, to the nearest five decimal points) equal to the actual costs
allocated to such Commitment or Loan by such Lender (as determined by such
Lender in good faith, which determination shall be conclusive), which, in each
case, shall be due and payable on each date on which interest is payable on
such Loan; provided the applicable Borrower shall have received at least
10 days’ prior notice (with a copy to the applicable Administrative Agent) of
such additional interest or costs from such Lender. If a Domestic Lender fails
to give notice ten (10) days prior to the relevant Interest Payment Date,
such additional interest or costs shall be due and payable ten (10) days
from receipt of such notice.

 

3.05                        Compensation for Losses.

 

Upon
demand of any Lender (with a copy to the applicable Administrative Agent) from
time to time, the applicable Borrower shall promptly compensate such Lender for
and hold such Lender harmless from any loss, cost or expense incurred by it as
a result of:

 

(a)                                  any continuation, conversion, payment or
prepayment of any Loan other than a Base Rate Loan on a day other than the last
day of the Interest Period for such Loan (whether voluntary, mandatory,
automatic, by reason of acceleration, or otherwise);

 

(b)                                 any failure by such Borrower (for a reason
other than the failure of such Lender to make a Loan) to prepay, borrow,
continue or convert any Eurodollar Rate Loan on the date or in the amount
notified by such Borrower; or

 

(c)                                  any assignment of a Eurodollar Rate Loan on a
day other than the last day of the Interest Period therefor as a result of a
request by such Borrower pursuant to Section 11.13;

 

including
any loss of anticipated profits and any loss or expense arising from the
liquidation or reemployment of funds obtained by it to maintain such Loan or
from fees payable to terminate the deposits from which such funds were obtained.
The applicable Borrower shall also pay any customary administrative fees
charged by such Lender in connection with the foregoing.

 

For
purposes of calculating amounts payable by a Borrower to the Lenders under this
Section 3.05, each Lender shall be deemed to have funded each
Eurodollar Rate Loan made by it at the Eurodollar Rate for such Loan by a
matching deposit or other borrowing in the London interbank eurodollar market
for a comparable amount and for a comparable period, whether or not such
Eurodollar Rate Loan was in fact so funded.

 

3.06                        Mitigation Obligations;
Replacement of Lenders.

 

(a)                                  Designation of a Different Lending Office. If any Lender requests compensation under Section 3.04,
or either Borrower is required to pay any additional amount to any Lender or
any Governmental Authority for the account of any Lender pursuant to Section 3.01,
or if any Lender gives a notice pursuant to Section 3.02, then such
Lender shall (after having provided the applicable Borrower with prior written
notice thereof) use reasonable efforts to designate a different Lending Office
for funding or booking its Loans hereunder or to assign its rights and
obligations hereunder to another of its offices, branches or affiliates, if, in
the reasonable

 

 

judgment
of such Lender, such designation or assignment (i) would eliminate or
reduce amounts payable pursuant to Section 3.01 or 3.04, as
the case may be, in the future, or eliminate the need for the notice
pursuant to Section 3.02, as applicable, and (ii) in each
case, would not subject such Lender to any unreimbursed cost or expense and
would not otherwise be disadvantageous to such Lender in any material respect. Such
Borrower hereby agrees to pay all reasonable costs and expenses incurred by any
Lender in connection with any such designation or assignment.

 

(b)                                 Replacement of Lenders. If any Lender requests compensation under Section 3.04,
or if a Borrower is required to pay any additional amount to any Lender or any
Governmental Authority for the account of any Lender pursuant to Sections 3.01,
3.02 or 3.04, such Borrower may replace such Lender in
accordance with Section 11.13.

 

3.07                        Survival.

 

All
of the obligations of the Borrowers under this Article III shall
survive termination of the Aggregate Commitments and repayment of all other
Obligations hereunder.

 

ARTICLE IV

GUARANTY

 

4.01                        The Guaranty.

 

(a)                                  Each of the Domestic Guarantors hereby
jointly and severally guarantees to each Lender, each Affiliate of a Lender
that enters into a Swap Contract or a Treasury Management Agreement with a Loan
Party, and the Domestic Administrative Agent as hereinafter provided, as
primary obligor and not as surety, the prompt payment of the Obligations in
full when due (whether at stated maturity, as a mandatory prepayment, by
acceleration, as a mandatory cash collateralization or otherwise) strictly in
accordance with the terms thereof. The Domestic Guarantors hereby further agree
that if any of the Obligations are not paid in full when due (whether at stated
maturity, as a mandatory prepayment, by acceleration, as a mandatory cash
collateralization or otherwise), the Domestic Guarantors will, jointly and
severally, promptly pay the same, without any demand or notice whatsoever, and
that in the case of any extension of time of payment or renewal of any of the
Obligations, the same will be promptly paid in full when due (whether at
extended maturity, as a mandatory prepayment, by acceleration, as a mandatory
cash collateralization or otherwise) in accordance with the terms of such
extension or renewal.

 

(b)                                 Each of the Canadian Guarantors hereby jointly
and severally guarantees to each Canadian Revolving Lender, each Affiliate of a
Canadian Revolving Lender that enters into a Swap Contract or a Treasury
Management Agreement with a Canadian Loan Party, and the Canadian
Administrative Agent as hereinafter provided, as primary obligor and not as
surety, the prompt payment of the Canadian Obligations in full when due
(whether at stated maturity, as a mandatory prepayment, by acceleration, as a
mandatory cash collateralization or otherwise) strictly in accordance with the
terms thereof. The Canadian Guarantors hereby further agree that if any of the
Canadian Obligations are not paid in full when due (whether at stated maturity,
as a mandatory prepayment, by acceleration, as a mandatory cash collateralization
or otherwise), the Canadian Guarantors will, jointly and severally, promptly
pay the same, without any demand or notice whatsoever, and that in the case of
any extension of time of payment or renewal of any of the Canadian Obligations,
the same will be promptly paid in full when due (whether at extended maturity,
as a mandatory prepayment, by acceleration, as a mandatory cash
collateralization or otherwise) in accordance with the terms of such extension
or renewal.

 

 

(c)                                  Notwithstanding any provision to the contrary
contained herein or in any other of the Loan Documents or Swap Contracts or
Treasury Management Agreements, the obligations of each Guarantor under this
Agreement and the other Loan Documents shall be limited to an aggregate amount
equal to the largest amount that would not render such obligations subject to
avoidance under the Debtor Relief Laws or any comparable provisions of any
applicable state law.

 

4.02                        Obligations Unconditional.

 

(a)                                  The obligations of the Domestic Guarantors
under Section 4.01(a) are joint and several, absolute and
unconditional, irrespective of the value, genuineness, validity, regularity or
enforceability of any of the Loan Documents, Swap Contracts or Treasury
Management Agreements, or any other agreement or instrument referred to
therein, or any substitution, release, impairment or exchange of any other
guarantee of or security for any of the Obligations, and, to the fullest extent
permitted by applicable law, irrespective of any other circumstance whatsoever
which might otherwise constitute a legal or equitable discharge or defense of a
surety or guarantor, it being the intent of this Section 4.02(a) that
the obligations of the Domestic Guarantors hereunder shall be absolute and
unconditional under any and all circumstances. Each Domestic Guarantor agrees
that such Domestic Guarantor shall have no right of subrogation, indemnity,
reimbursement or contribution against GGC or any other Domestic Guarantor for
amounts paid under this Article IV until such time as the Obligations
(other than any indemnity obligations that, by their terms, survive the
termination of this Agreement) have been paid in full and the Commitments have
expired or terminated.

 

(b)                                 The obligations of the Canadian Guarantors
under Section 4.01(b) are joint and several, absolute and
unconditional, irrespective of the value, genuineness, validity, regularity or
enforceability of any of the Loan Documents, Swap Contracts or Treasury
Management Agreements, or any other agreement or instrument referred to
therein, or any substitution, release, impairment or exchange of any other
guarantee of or security for any of the Canadian Obligations, and, to the
fullest extent permitted by applicable law, irrespective of any other
circumstance whatsoever which might otherwise constitute a legal or equitable
discharge or defense of a surety or guarantor, it being the intent of this Section 4.02(b) that
the obligations of the Canadian Guarantors hereunder shall be absolute and
unconditional under any and all circumstances. Each Canadian Guarantor agrees
that such Canadian Guarantor shall have no right of subrogation, indemnity,
reimbursement or contribution against the Canadian Borrower or any other
Canadian Guarantor for amounts paid under this Article IV until
such time as the Canadian Obligations (other than any indemnity obligations
that, by their terms, survive the termination of this Agreement) have been paid
in full and the Canadian Revolving Commitments have expired or terminated.

 

(c)                                  Without limiting the generality of the
foregoing, it is agreed that, to the fullest extent permitted by law, the
occurrence of any one or more of the following shall not alter or impair the
liability of any Guarantor hereunder which shall remain absolute and
unconditional as described above:

 

(i)                                     at any time or from time to time, without
notice to any Guarantor, the time for any performance of or compliance with any
of the Obligations shall be extended, or such performance or compliance shall
be waived;

 

(ii)                                  any of the acts mentioned in any of the
provisions of any of the Loan Documents, any Swap Contract or any Treasury
Management Agreement between any Loan Party and any Lender, or any Affiliate of
a Lender, or any other agreement or instrument

 

 

referred
to in the Loan Documents or such Swap Contracts or Treasury Management
Agreements shall be done or omitted;

 

(iii)                               the maturity of any of the Obligations shall
be accelerated, or any of the Obligations shall be modified, supplemented or
amended in any respect, or any right under any of the Loan Documents, any Swap
Contract or any Treasury Management Agreement between any Loan Party and any
Lender, or any Affiliate of a Lender, or any other agreement or instrument
referred to in the Loan Documents or such Swap Contracts or such Treasury
Management Agreements shall be waived or any other guarantee of any of the
Obligations or any security therefor shall be released, impaired or exchanged
in whole or in part or otherwise dealt with;

 

(iv)                              any Lien granted to, or in favor of, an
Administrative Agent or any Lender or Lenders as security for any of the
Obligations shall fail to attach or be perfected; or

 

(v)                                 any of the Obligations shall be determined to
be void or voidable (including, without limitation, for the benefit of any
creditor of any Guarantor) or shall be subordinated to the claims of any Person
(including, without limitation, any creditor of any Guarantor).

 

With
respect to its obligations hereunder, each Guarantor hereby expressly waives
diligence, presentment, demand of payment, protest and all notices whatsoever,
and any requirement that any Administrative Agent or any Lender exhaust any
right, power or remedy or proceed against any Person under any of the Loan
Documents, any Swap Contract or any Treasury Management Agreement between any
Loan Party and any Lender, or any Affiliate of a Lender, or any other agreement
or instrument referred to in the Loan Documents or such Swap Contracts or such
Treasury Management Agreements, or against any other Person under any other
guarantee of, or security for, any of the Obligations.

 

4.03                        Reinstatement.

 

(a)                                  The obligations of the Domestic Guarantors
under this Article IV shall be automatically reinstated if and to
the extent that for any reason any payment by or on behalf of any Person in respect
of the Obligations is rescinded or must be otherwise restored by any holder of
any of the Obligations, whether as a result of any proceedings in bankruptcy or
reorganization or otherwise, and each Domestic Guarantor agrees that it will
indemnify each Administrative Agent and each Lender on demand for all
reasonable costs and expenses (including, without limitation, the fees, charges
and disbursements of counsel) incurred by such Administrative Agent or such
Lender in connection with such rescission or restoration, including any such
costs and expenses incurred in defending against any claim alleging that such
payment constituted a preference, fraudulent transfer or similar payment under
any bankruptcy, insolvency or similar law.

 

(b)                                 The obligations of the Canadian Guarantors
under this Article IV shall be automatically reinstated if and to
the extent that for any reason any payment by or on behalf of any Person in
respect of the Canadian Obligations is rescinded or must be otherwise restored
by any holder of any of the Canadian Obligations, whether as a result of any
proceedings in bankruptcy or reorganization or otherwise, and each Canadian
Guarantor agrees that it will indemnify the Canadian Administrative Agent and
each Canadian Revolving Lender on demand for all reasonable costs and expenses
(including, without limitation, the fees, charges and disbursements of counsel)
incurred by the Canadian Administrative Agent or such Canadian Revolving Lender
in connection with such rescission or restoration, including any such costs and
expenses incurred in defending against any

 

 

claim
alleging that such payment constituted a preference, fraudulent transfer or
similar payment under any bankruptcy, insolvency or similar law.

 

4.04                        Certain Additional Waivers.

 

Each
Guarantor agrees that such Guarantor shall have no right of recourse to
security for the Obligations, except through the exercise of rights of
subrogation pursuant to Section 4.02 and through the exercise of
rights of contribution pursuant to Section 4.06.

 

4.05                        Remedies.

 

(a)                                  The Domestic Guarantors agree that, to the
fullest extent permitted by law, as between the Domestic Guarantors, on the one
hand, and the Administrative Agents and the Lenders, on the other hand, the
Obligations may be declared to be forthwith due and payable as provided in
Section 9.02 (and shall be deemed to have become automatically due
and payable in the circumstances provided in said Section 9.02) for
purposes of Section 4.01(a) notwithstanding any stay,
injunction or other prohibition preventing such declaration (or preventing the
Obligations from becoming automatically due and payable) as against any other
Person and that, in the event of such declaration (or the Obligations being
deemed to have become automatically due and payable), the Obligations (whether
or not due and payable by any other Person) shall forthwith become due and
payable by the Domestic Guarantors for purposes of Section 4.01(a).
The Domestic Guarantors acknowledge and agree that their obligations hereunder
are secured in accordance with the terms of the Collateral Documents and that
the Lenders may exercise their remedies thereunder in accordance with the
terms thereof.

 

(b)                                 The Canadian Guarantors agree that, to the
fullest extent permitted by law, as between the Canadian Guarantors, on the one
hand, and the Canadian Administrative Agent and the Canadian Revolving Lenders,
on the other hand, the Canadian Obligations may be declared to be
forthwith due and payable as provided in Section 9.02 (and shall be
deemed to have become automatically due and payable in the circumstances
provided in said Section 9.02) for purposes of Section 4.01(b) notwithstanding
any stay, injunction or other prohibition preventing such declaration (or
preventing the Canadian Obligations from becoming automatically due and
payable) as against any other Person and that, in the event of such declaration
(or the Canadian Obligations being deemed to have become automatically due and
payable), the Canadian Obligations (whether or not due and payable by any other
Person) shall forthwith become due and payable by the Canadian Guarantors for
purposes of Section 4.01(b). The Canadian Guarantors acknowledge
and agree that their obligations hereunder are secured in accordance with the
terms of the Canadian Collateral Documents and that the applicable Lenders may exercise
their remedies thereunder in accordance with the terms thereof.

 

4.06                        Rights of Contribution.

 

(a)                                  The Domestic Guarantors hereby agree as among
themselves that, in connection with payments made hereunder, each Domestic
Guarantor shall have a right of contribution from each other Domestic Guarantor
in accordance with applicable Law. Such contribution rights shall be
subordinate and subject in right of payment to the Obligations until such time
as the Obligations (other than any indemnity obligations that, by their terms,
survive the termination of this Agreement) have been paid in full and the
Commitments have expired or terminated, and none of the Domestic Guarantors
shall exercise any such contribution rights until the Obligations (other than
any indemnity obligations that, by their terms, survive the termination of this
Agreement) have been paid in full and the Commitments have expired or
terminated.

 

 

(b)                                 The Canadian Guarantors hereby agree as among
themselves that, in connection with payments made hereunder, each Canadian
Guarantor shall have a right of contribution from each other Canadian Guarantor
in accordance with applicable Law. Such contribution rights shall be subordinate
and subject in right of payment to the Canadian Obligations until such time as
the Canadian Obligations (other than any indemnity obligations that, by their
terms, survive the termination of this Agreement) have been paid in full and
the Canadian Revolving Commitments have expired or terminated, and none of the
Canadian Guarantors shall exercise any such contribution rights until the
Canadian Obligations (other than any indemnity obligations that, by their
terms, survive the termination of this Agreement) have been paid in full and
the Canadian Revolving Commitments have expired or terminated.

 

4.07                        Guarantee of Payment;
Continuing Guarantee.

 

(a)                                  The guarantee given by the Domestic
Guarantors in this Article IV is a guaranty of payment and not of
collection, is a continuing guarantee, and shall apply to all Obligations
whenever arising.

 

(b)                                 The guarantee given by the Canadian
Guarantors in this Article IV is a guaranty of payment and not of
collection, is a continuing guarantee, and shall apply to all Canadian
Obligations whenever arising.

 

ARTICLE V

CONDITIONS PRECEDENT TO CREDIT EXTENSIONS

 

5.01                        Conditions of Initial Credit
Extension.

 

The
obligation of each L/C Issuer and each Lender to make its initial Credit
Extension hereunder is subject to satisfaction of the following conditions
precedent:

 

(a)                                  Loan Documents. Receipt by the Domestic Administrative
Agent of executed counterparts of this Agreement and the other Loan Documents,
each properly executed by a Responsible Officer of the signing Loan Party and,
in the case of this Agreement, by each Lender.

 

(b)                                 Opinions of Counsel. Receipt by the Domestic Administrative
Agent of favorable opinions of legal counsel to the Loan Parties, addressed to
the Domestic Administrative Agent, the Canadian Administrative Agent and each
Lender, dated as of the Closing Date, and in form and substance
satisfactory to the Domestic Administrative Agent.

 

(c)                                  Financial Statements. The Domestic Administrative Agent shall
have received:

 

(i)                                     consolidated financial statements of GGC and
its Subsidiaries for the fiscal years ended December 31, 2003, December 31,
2004 and December 31, 2005, including balance sheets and income,
shareholders’ equity and cash flow statements, in each case audited by
independent public accountants of recognized national standing and prepared in
conformity with GAAP;

 

 

(ii)                                  consolidated financial statements of the
Canadian Borrower and its Subsidiaries for the fifteen (15) months ended December 31,
2003, and for the fiscal years ended December 31, 2004 and December 31,
2005, including balance sheets and income, shareholders’ equity and cash flow
statements, in each case audited by independent public accountants of
recognized national standing and prepared in conformity with GAAP;

 

(iii)                               unaudited consolidated financial statements of GGC and its Subsidiaries
for fiscal quarters ending March 31, 2006 and June 30, 2006,
including balance sheets and statements of income or operations, shareholders’
equity and cash flows (the “GGC Interim Financial Statements”), prepared
in conformity with GAAP;

 

(iv)                              unaudited consolidated financial statements of the Canadian Borrower
and its Subsidiaries for the fiscal quarters ending March 31, 2006 and June 30,
2006, including balance sheets and statements of income or operations,
shareholders’ equity and cash flows (the “Royal Interim Financial Statements”),
prepared in conformity with GAAP;

 

(v)                                 pro forma financial statements for GGC and
its Subsidiaries after giving effect to the Royal Acquisition for the twelve
month period ending March 31, 2006 which (A) are in form and
substance satisfactory to the Lenders and (B) meet the requirements of
Regulation S-X of the Securities Act of 1933, together with a calculation demonstrating
that pro forma consolidated debt to pro forma EBITDA at March 31, 2006
(calculated in manner consistent with the calculations and adjustments agreed
with the arrangers) after giving effect to the Royal Acquisition is not greater
than 4.75 to 1.0; and

 

(vi)                              pro forma financial projections for GGC and its Subsidiaries after
giving effect to the Royal Acquisition in form and substance satisfactory
to the Lenders of the balance sheets and statements of income or operations,
shareholders’ equity and cash flows for each year commencing with the year ended
December 31, 2006 through December 31, 2010.

 

(d)                                 Organization Documents, Resolutions, Etc. Receipt by the Domestic Administrative Agent
of the following, each of which shall be originals or facsimiles (followed
promptly by originals), in form and substance satisfactory to the Domestic
Administrative Agent and its legal counsel:

 

(i)                                     copies of the Organization Documents of each
Loan Party certified to be true and complete as of a recent date by the
appropriate Governmental Authority of the state or other jurisdiction of its
incorporation or organization, where applicable, and certified by a secretary
or assistant secretary of such Loan Party to be true and correct as of the
Closing Date;

 

(ii)                                  such certificates of resolutions or other
action, incumbency certificates and/or other certificates of Responsible
Officers of each Loan Party as the Domestic Administrative Agent may reasonably
require evidencing the identity, authority and capacity of each Responsible
Officer thereof authorized to act as a Responsible Officer in connection with
this Agreement and the other Loan Documents to which such Loan Party is a
party; and

 

 

(iii)                               such documents and certifications as the Domestic Administrative Agent may reasonably
require to evidence that each Loan Party is duly organized or formed, and is
validly existing, in good standing and qualified to engage in business in its
jurisdiction of organization or formation.

 

(e)                                  Perfection and Priority of Liens. Receipt by the applicable Collateral Agent
of the following:

 

(i)                                     searches of Uniform Commercial Code
filings in the jurisdiction of formation of each Loan Party or where a filing
would need to be made in order to perfect the Domestic Collateral Agent’s
security interest in the Domestic Collateral, the Canadian Collateral Agent’s
security interest in the Canadian Collateral, copies of the financing
statements on file in such jurisdictions and evidence that no Liens exist other
than Permitted Liens;

 

(ii)                                  UCC financing statements, or the equivalent,
for each appropriate jurisdiction as is necessary, in the applicable Collateral
Agent’s reasonable discretion, to perfect the Domestic Collateral Agent’s
security interest in the Domestic Collateral and the Canadian Collateral Agent’s
security interest in the Canadian Collateral;

 

(iii)                               all certificates evidencing any certificated Equity Interests pledged
pursuant to the Collateral Documents, together with duly executed in blank,
undated stock powers attached thereto;

 

(iv)                              searches of ownership of, and Liens on, intellectual property
identified on Schedule 5.01(e) in the appropriate governmental
offices; and

 

(v)                                 duly executed notices of grant of security
interest in the form required by the Collateral Documents as are
necessary, in the applicable Administrative Agent’s reasonable discretion, to
perfect the Domestic Collateral Agent’s security interest in the intellectual
property of the Domestic Loan Parties identified on Schedule 5.01(e) and
to perfect the Canadian Collateral Agent’s security interest in the
intellectual property of the Canadian Loan Parties identified on Schedule 5.01(e).

 

(f)                                    Real Property Collateral. Receipt by the applicable Collateral Agent
of the following:

 

(i)                                     fully executed and, to the extent required,
notarized Mortgages encumbering the fee interest and/or leasehold interest of
any Loan Party (and, with respect to certain properties, encumbering the title
interest of any nominee of the Canadian Borrower) in each of the real
properties designated as a Mortgaged Property on Schedule 6.20;

 

(ii)                                  in the case of each real property leasehold
interest of any Loan Party constituting Mortgaged Property, evidence that
the applicable lease, a memorandum of lease with respect thereto, notice of
lease or other evidence of such lease in form and substance reasonably satisfactory
to the applicable Collateral Agent, has been or will be recorded or registered
in all places to the

 

 

extent
necessary or desirable, in the reasonable judgment of the applicable Collateral
Agent, so as to enable the Mortgage encumbering such leasehold interest to
effectively create a valid and enforceable first priority lien (subject to
Permitted Liens) on such leasehold interest in favor of the applicable
Collateral Agent (or such other Person as may be required or desired under
local law) for the benefit of applicable Lenders;

 

(iii)                               any existing maps or plats of an as-built survey of any Mortgaged
Property in a form and substance satisfactory to the applicable Collateral
Agent and the title insurance company referred to in Section 5.01(g)(iv);

 

(iv)                              ALTA mortgagee title insurance policies (or the Canadian equivalent)
issued by a title insurance company reasonably acceptable to the applicable
Collateral Agent with respect to each Mortgaged Property, assuring the
applicable Collateral Agent that each of the Mortgages creates a valid and
enforceable first priority mortgage lien on the applicable Mortgaged Property,
free and clear of all defects and encumbrances except Permitted Liens, which
title insurance policies shall otherwise be in form and substance
reasonably satisfactory to the applicable Collateral Agent; and

 

(v)                                 evidence as to (A) whether any Mortgaged
Property located in the United States is in an area designated by the Federal
Emergency Management Agency as having special flood or mud slide hazards (a “Flood
Hazard Property”) and (B) if any Mortgaged Property located in the
United States is a Flood Hazard Property, (1) whether the community in
which such Mortgaged Property is located is participating in the National Flood
Insurance Program, (2) the applicable Loan Party’s written acknowledgment
of receipt of written notification from the Domestic Collateral Agent, (a) as
to the fact that such Mortgaged Property is a Flood Hazard Property and (b) as
to whether the community in which each such Flood Hazard Property is located is
participating in the National Flood Insurance Program and (3) copies of
insurance policies or certificates of insurance of GGC and its Subsidiaries
evidencing flood insurance satisfactory to the applicable Collateral Agent and
naming the applicable Collateral Agent, as sole Lender’s loss payee on behalf
of the applicable Lenders.

 

(g)                                 Evidence of Insurance. Receipt by the applicable Administrative
Agent of copies of certificates of insurance of the Loan Parties evidencing
liability and property insurance meeting the requirements set forth in Section 7.07.
Such evidence shall include, but not be limited to, evidence that the
applicable Collateral Agent is an additional insured (in the case of liability
insurance) and Lender’s loss payee (in the case of property insurance) on
behalf of the applicable Lenders.

 

(h)                                 Debt Documents. Receipt by the Domestic Administrative
Agent of (i) a copy, certified by a Responsible Officer of GGC as true and
complete, of each of the following:  (A) the
2003 Indenture (together with all exhibits and schedules thereto), (B) the
2006 Senior Indenture (together with all exhibits and schedules thereto)  (C) the 2006 Senior Subordinated
Indenture (together with all exhibits and schedules thereto), (D) the Series D
Note Purchase Agreement (together with all exhibits and schedules thereto) and (E) the
Medium Term Notes Indenture (together with all exhibits and schedules thereto),
each as originally executed and delivered, together with any amendments or
modifications to such

 

 

documents
as of the Closing Date.

 

(i)                                     Consummation of Royal Acquisition. Receipt by the Domestic Administrative
Agent of satisfactory evidence that the Royal Acquisition will be completed
immediately after the initial funding of the Loans in compliance with
applicable law and regulatory approvals and substantially in accordance with
the Acquisition Documents.

 

(j)                                     Copy of Arrangement Agreement. Receipt by the Domestic Administrative
Agent of a copy, certified by a Responsible Officer of GGC as true and
complete, of the Arrangement Agreement (together with all exhibits and
schedules thereto), which Arrangement Agreement shall not have been altered,
amended or otherwise changed or supplemented, or any condition therein waived,
in any manner that would be adverse in any material respect to GGC or the
Lenders, without the written consent of the Domestic Administrative Agent.

 

(k)                                  Governmental Approvals. Receipt by the Domestic Administrative
Agent of all governmental, shareholder and third party consents (including Hart-Scott-Rodino
clearance) and approvals necessary in connection with the Royal Acquisition and
the related financings and other transactions contemplated hereby and
expiration of all applicable waiting periods without any action being taken by
any authority that could restrain, prevent or impose any material adverse
conditions on GGC and its Subsidiaries or such other transactions or that could
seek or threaten any of the foregoing, and no law or regulation shall be
applicable which in the reasonable judgment of the Domestic Administrative
Agent could reasonably be expected to have such effect.

 

(l)                                     Solvency Certificate. The Domestic Administrative Agent shall
have received certification as to the financial condition and Solvency of GGC
and its Subsidiaries on a consolidated basis (after giving effect to the
transactions contemplated hereby) from a Responsible Officer of GGC.

 

(m)                               Termination of Existing Indebtedness. Receipt by the Domestic Administrative of
evidence that the Existing Credit Agreements will be simultaneously terminated
and all Liens securing obligations under such Existing Credit Agreement will be
simultaneously released with the initial funding of the Loans.

 

(n)                                 Closing Certificate. Receipt by the Domestic Administrative
Agent of a certificate signed by a Responsible Officer of GGC (i) certifying
that the conditions specified in Sections 5.02(a), (b) and (c) have
been satisfied and (ii) setting forth calculations satisfactory to the
Domestic Administrative Agent calculating the Consolidated Leverage Ratio
(after giving effect to the transactions contemplated hereby) for the most
recently ended four fiscal quarters for which financial statements were
delivered pursuant to Section 5.01(c)(iii) at a ratio not
greater than 4.75 to 1.0.

 

(o)                                 Fees. Receipt by the Administrative Agents, the Collateral Agents and the
Lenders of any fees required to be paid on or before the Closing Date.

 

(p)                                 Attorney Costs. GGC shall have paid all fees, charges and
disbursements of counsel of the Administrative Agents to the extent invoiced
prior to or on the Closing Date, plus such additional amounts of such fees,
charges and disbursements as shall constitute its reasonable estimate of fees,
costs and disbursements

 

 

 incurred or to be incurred by it through the
closing proceedings (provided that such estimate shall not thereafter preclude
a final settling of accounts between GGC and the Administrative Agents).

 

(r)                                    Intercompany Security Documents. Receipt by the Domestic Administrative
Agent of the Holdco Note, together with an executed endorsement, the other
Intercompany Security Documents and the Collateral Assignment Documents, each
properly executed and in form and substance satisfactory to the Domestic
Administrative Agent and such other documentation requested by the Domestic
Administrative Agent in form and substance satisfactory to the Domestic
Administrative Agent in order for the Domestic Administrative Agent to obtain a
first priority security interest in the Holdco Note and the Intercompany
Security Documents.

 

Without
limiting the generality of the provisions of Section 11.03, for
purposes of determining compliance with the conditions specified in this Section 5.01,
each Lender that has signed this Agreement shall be deemed to have consented
to, approved or accepted or to be satisfied with, each document or other matter
required thereunder to be consented to or approved by or acceptable or
satisfactory to a Lender unless the applicable Administrative Agent shall have
received notice from such Lender prior to the proposed Closing Date specifying
its objection thereto.

 

5.02                        Conditions to all Credit
Extensions.

 

The
obligation of each Lender and each L/C Issuer to honor any Request for Credit
Extension or make any Loan or other Credit Extension is subject to the
following conditions precedent:

 

(a)                                  The representations and warranties of GGC and
each other Loan Party contained in Article VI or any other Loan
Document, or which are contained in any document furnished at any time under or
in connection herewith or therewith, shall be true and correct in all material
respects on and as of the date of such Credit Extension, except to the extent
that such representations and warranties specifically refer to an earlier date,
in which case they shall be true and correct in all material respects as of
such earlier date, and except that for purposes of this Section 5.02,
the representations and warranties contained in subsections (a) and (c) of
Section 6.05 shall be deemed to refer to the most recent statements
furnished pursuant to clauses (a) and (b), respectively, of Section 7.01.

 

(b)                                 No Default or Event of Default shall exist,
or would result from such proposed Credit Extension or from the application of
the proceeds thereof.

 

(c)                                  The applicable Administrative Agent and, if
applicable, the applicable L/C Issuer shall have received a Request for Credit
Extension in accordance with the requirements hereof.

 

Each
Request for Credit Extension submitted by the applicable Borrower, and each
Borrowing of a Canadian Swing Line Loan, shall be deemed to be a representation
and warranty that the conditions specified in Sections 5.02(a) and
(b) have been satisfied on and as of the date of the applicable
Credit Extension.

 

 

 

ARTICLE VI

REPRESENTATIONS AND WARRANTIES

 

The
Loan Parties represent and warrant to the Domestic Administrative Agent, the
Canadian Administrative Agent and the Lenders that:

 

6.01                        Existence, Qualification and
Power.

 

Each
Loan Party and each Subsidiary thereof (a) is duly organized or formed,
validly existing and, as applicable, in good standing under the Laws of the
jurisdiction of its incorporation or organization, (b) has all requisite
power and authority and all requisite governmental licenses, authorizations,
consents and approvals to (i) own or lease its assets and carry on its
business and (ii) execute, deliver and perform its obligations under
the Loan Documents to which it is a party and (c) is duly qualified and is
licensed and, as applicable, in good standing under the Laws of each
jurisdiction where its ownership, lease or operation of properties or the
conduct of its business requires such qualification or license; except in each
case referred to in clause (b)(i) or (c), to the extent that failure
to do so could not reasonably be expected to have a Material Adverse Effect.

 

6.02                        Authorization; No
Contravention.

 

The
execution, delivery and performance by each Loan Party of each Loan Document to
which such Person is party, have been duly authorized by all necessary
corporate or other organizational action, and do not and will not (a) contravene
the terms of any of such Person’s Organization Documents; (b) conflict
with or result in any breach or contravention of, or the creation of any Lien
(other than Liens created in favor of the holders of the Medium Term Notes
permitted by Section 8.01(q)) under, or require any payment to be
made under (i) any Contractual Obligation to which such Person is a party
or (ii) any order, injunction, writ or decree of any Governmental
Authority or any arbitral award to which such Person or its property is
subject; or (c) violate any Law.

 

6.03                        Governmental Authorization;
Other Consents.

 

No
approval, consent, exemption, authorization, or other action by, or notice to,
or filing with, any Governmental Authority or any other Person is necessary or
required in connection with the execution, delivery or performance by, or
enforcement against, any Loan Party of this Agreement or any other Loan
Document other than filings to perfect the security interests and Liens created
by the Collateral Documents.

 

6.04                        Binding Effect.

 

Each
Loan Document has been duly executed and delivered by each Loan Party that is
party thereto. Each Loan Document constitutes a legal, valid and binding
obligation of such Loan Party, enforceable against each such Loan Party in
accordance with its terms.

 

6.05                        Financial Condition; No
Material Adverse Effect.

 

(a)                                  The GGC Audited Financial Statements (i) were
prepared in accordance with GAAP consistently applied throughout the period
covered thereby, except as otherwise expressly noted therein; (ii) fairly
present in all material respects the financial condition of GGC and its
Subsidiaries as of the date thereof and their results of operations for the period
covered thereby in accordance with GAAP consistently applied throughout the
period covered thereby, except as

 

 

otherwise expressly noted
therein; and (iii) show all material indebtedness and other liabilities,
direct or contingent, of GGC and its Subsidiaries as of the date thereof,
including liabilities for taxes, commitments and Indebtedness.

 

(b)                                 The Royal Audited Financial Statements (i) were
prepared in accordance with GAAP consistently applied throughout the period
covered thereby, except as otherwise expressly noted therein; (ii) fairly
present in all material respects the financial condition of the Canadian
Borrower and its Subsidiaries as of the date thereof and their results of
operations for the period covered thereby in accordance with GAAP consistently
applied throughout the period covered thereby, except as otherwise expressly
noted therein; and (iii) show all material indebtedness and other
liabilities, direct or contingent, of the Canadian Borrower and its
Subsidiaries as of the date thereof, including liabilities for taxes, material
commitments and Indebtedness required to be reflected on a balance sheet in
accordance with GAAP.

 

(c)                                  The GGC Interim Financial Statements (i) were
prepared in accordance with GAAP consistently applied throughout the period
covered thereby, except as otherwise expressly noted therein, and (ii) fairly
present in all material respects the financial condition of GGC and its
Subsidiaries as of the date thereof and their results of operations for the
period covered thereby, subject, in the case of clauses (i) and (ii),
to the absence of footnotes and to normal year-end audit adjustments; and (iii) show
all material indebtedness and other liabilities, direct or contingent, of GGC
and its consolidated Subsidiaries as of the date of such financial statements,
including liabilities for taxes, material commitments and Indebtedness.

 

(d)                                 The Royal Interim Financial Statements (i) were
prepared in accordance with GAAP consistently applied throughout the period
covered thereby, except as otherwise expressly noted therein, and (ii) fairly
present in all material respects the financial condition of the Canadian
Borrower and its Subsidiaries as of the date thereof and their results of
operations for the period covered thereby, subject, in the case of
clauses (i) and (ii), to the absence of footnotes and to normal year-end
audit adjustments; and (iii) show all material indebtedness and other
liabilities, direct or contingent, of the Canadian Borrower and its
consolidated Subsidiaries as of the date of such financial statements,
including liabilities for taxes, material commitments and Indebtedness required
to be reflected on a balance sheet in accordance with GAAP.

 

(e)                                  From the date of the GGC Audited Financial
Statements to and including the Closing Date (other than the Royal
Acquisition), there has been no Disposition by any Borrower or any Subsidiary,
or any Involuntary Disposition, of any material part of the business or
property of GGC and its Subsidiaries, taken as a whole, and no purchase or
other acquisition by any of them of any business or property (including any
Equity Interests of any other Person) material in relation to the consolidated
financial condition of GGC and its Subsidiaries, taken as a whole, in each case,
which is not reflected in the foregoing financial statements or in the notes
thereto and has not otherwise been disclosed in writing to the Lenders on or
prior to the Closing Date.

 

(f)                                    The financial statements delivered pursuant
to Section 7.01(a) and (b) have been prepared in
accordance with GAAP (except as may otherwise be permitted under Section 7.01(a) and
(b)) and present fairly in all material respects (on the basis disclosed
in the footnotes to such financial statements) the consolidated and, in the
case of the financial statements delivered pursuant to Section 7.01(a),
consolidating, financial condition, results of operations and cash flows of GGC
and its Subsidiaries as of the dates thereof and for the periods covered
thereby.

 

(g)                                 Since the date of the GGC Audited Financial
Statements, there has been no event or circumstance, either individually or in
the aggregate, that has had or could reasonably be

 

 

expected
to have a Material Adverse Effect.

 

(h)                                 To the best knowledge of GGC, no Internal Control
Event exists or has occurred since the date of the GGC Audited Financial
Statements that has resulted in or could reasonably be expected to result in a
misstatement in any material respect, in any financial information delivered or
to be delivered to the Domestic Administrative Agent or the Lenders, of (i) covenant
compliance calculations provided hereunder or (ii) the assets,
liabilities, financial condition or results of operations of GGC and its
Subsidiaries on a consolidated basis.

 

6.06                        No Material Litigation.

 

Except
as set forth on Schedule 6.06, there are no actions, suits,
proceedings, claims or disputes pending or, to the knowledge of the Loan
Parties after due and diligent investigation, threatened or contemplated, at
law, in equity, in arbitration or before any Governmental Authority, by or
against GGC or any of its Subsidiaries or against any of their properties or
revenues that (a) purport to affect or pertain to this Agreement or any
other Loan Document, or any of the transactions contemplated hereby, or (b) either
individually or in the aggregate, if determined adversely, could reasonably be
expected to have a Material Adverse Effect. For the avoidance of doubt, if any
action, suit, proceeding, claim, dispute or investigation identified on Schedule 6.06
shall result in a Material Adverse Effect, the Loan Parties hereby agree that
the Lenders shall be under no obligation to make any Loan and the L/C Issuers
shall be under no obligation to issue or extend any Letter of Credit hereunder.

 

6.07                        No Default.

 

Neither
GGC nor any Subsidiary is in default under or with respect to any Contractual
Obligation that could, either individually or in the aggregate, reasonably be
expected to have a Material Adverse Effect. No Default or Event of Default has
occurred and is continuing or would result from the consummation of the
transactions contemplated by this Agreement or any other Loan Document.

 

6.08                        Ownership of Property; Liens.

 

Each
of GGC and its Subsidiaries has good record and marketable title in fee simple
to, or valid leasehold interests in, all real property necessary or used in the
ordinary conduct of its business, except for such defects in title as could
not, individually or in the aggregate, reasonably be expected to have a
Material Adverse Effect. The property of GGC and its Subsidiaries is subject to
no Liens, other than Permitted Liens.

 

6.09                        Environmental Matters.

 

Except
as could not reasonably be expected to have a Material Adverse Effect:

 

(a)                                  Except as disclosed on Schedule 6.09,
each of the Facilities and all operations at the Facilities are in substantial
compliance with all applicable Environmental Laws, and there is no violation of
any Environmental Law with respect to the Facilities or the Businesses, and
there are no conditions relating to the Facilities or the Businesses that could
give rise to liability under any applicable Environmental Laws.

 

(b)                                 Except as disclosed on Schedule 6.09,
none of the Facilities contains, or has previously contained, any Hazardous
Materials at, on or under the Facilities in amounts

 

 

or
concentrations that constitute or constituted a violation of, or could give
rise to liability under, Environmental Laws.

 

(c)                                  Except as disclosed on Schedule 6.09,
within the last three years, neither GGC nor any Subsidiary has received any
written or verbal notice of, or inquiry from any Governmental Authority
regarding, any violation, alleged violation, non-compliance, liability or
potential liability regarding environmental matters or compliance with
Environmental Laws with regard to any of the Facilities or the Businesses that
give rise to material liability and which have not been resolved, nor does any
Responsible Officer of any Loan Party have knowledge or reason to believe that
any such notice will be received or is being threatened.

 

(d)                                 Except as disclosed on Schedule 6.09,
Hazardous Materials have not been transported or disposed of from the
Facilities, or generated, treated, stored or disposed of at, on or under any of
the Facilities or to the knowledge of the Responsible Officers of the Loan
Parties, any other location, in each case by or on behalf any Borrower or any
Subsidiary in material violation of, or in a manner that would be reasonably
likely to give rise to liability under, any applicable Environmental Law (it
being acknowledged that the Borrowers have advised the Lenders that Hazardous
Materials are used and produced in the ordinary course of business in
substantial compliance with Environmental Laws).

 

(e)                                  Except as disclosed on Schedule 6.09,
no judicial proceeding or governmental or administrative action is pending or,
to the knowledge of the Responsible Officers of the Loan Parties, threatened,
under any Environmental Law to which any Borrower or any Subsidiary is or will
be named as a party, nor are there any consent decrees or other decrees,
consent orders, administrative orders or other orders entered into within the
last three (3) years, or other administrative or judicial requirements
outstanding under any Environmental Law with respect to GGC, any Subsidiary,
the Facilities or the Businesses.

 

(f)                                    Except as disclosed on Schedule 6.09,
there has been no release or threat of release of Hazardous Materials at or
from the Facilities, or arising from or related to the operations (including,
without limitation, disposal) of any Borrower or any Subsidiary in connection
with the Facilities or otherwise in connection with the Businesses, in
violation of or in amounts or in a manner that could give rise to liability
under Environmental Laws.

 

6.10                        Taxes.

 

GGC
and its Subsidiaries have filed all Federal, state and other material tax
returns and reports required to be filed, and have paid all Federal, state and
other material taxes, assessments, fees and other governmental charges levied
or imposed upon them or their properties, income or assets otherwise due and
payable, except those which are being contested in good faith by appropriate
proceedings diligently conducted and for which adequate reserves have been
provided in accordance with GAAP. There is no proposed tax assessment against
any Borrower or any Subsidiary that would, if made, have a Material Adverse
Effect. Neither any Loan Party nor any Subsidiary thereof is party to any tax
sharing agreement.

 

6.11                        Pension Plans.

 

(a)                                  (i)                                     Each U.S. Plan is in compliance in all
material respects with its terms and the applicable provisions of ERISA, the
Code and other Federal or state Laws. Each U.S. Plan that is intended to
qualify under Section 401(a) of the Code has received a favorable

 

 

determination
letter from the IRS or an application for such a letter is currently being
processed by the IRS with respect thereto and, to the best knowledge of the
Loan Parties, nothing has occurred which would prevent, or cause the loss of,
such qualification. Each Loan Party and each ERISA Affiliate have made all
required contributions to each U.S. Plan subject to Section 412 of the
Code, and no application for a funding waiver or an extension of any
amortization period pursuant to Section 412 of the Code has been made with
respect to any U.S. Plan.

 

(ii)                                  Each Canadian Pension Plan and Canadian Plan
is in compliance in all material respects with its terms and the applicable
provisions of Canadian federal and provincial Laws. Each Canadian Pension Plan
that is intended to qualify for tax deferred treatment under the Canadian Tax
Act is duly registered under the Canadian Tax Act, and, to the best knowledge
of the Loan Parties, nothing has occurred which would prevent, or cause the
loss of, such treatment. The Canadian Borrower and each Canadian Subsidiary
have made all required contributions to each Canadian Pension Plan and each
Canadian Plan.

 

(b)                                 There are no pending or, to the best
knowledge of the Loan Parties, threatened claims, actions or lawsuits, or
action by any Governmental Authority, with respect to any U.S. Plan, Canadian
Plan or Canadian Pension Plan that could reasonably be expected to have a
Material Adverse Effect. There has been no prohibited transaction or violation
of the fiduciary responsibility rules with respect to any U.S. Plan,
Canadian Plan or Canadian Pension Plan that has resulted or could reasonably be
expected to result in a Material Adverse Effect.

 

(c)                                  (i) No ERISA Event has occurred or is
reasonably expected to occur; (ii) no U.S. Pension Plan has any U.S.
Unfunded Pension Liability; (iii) no Loan Party nor any ERISA Affiliate
has incurred, or reasonably expects to incur, any liability under Title IV
of ERISA with respect to any U.S. Pension Plan (other than premiums due and not
delinquent under Section 4007 of ERISA); (iv) no Loan Party nor any
ERISA Affiliate has incurred, or reasonably expects to incur, any liability
(and no event has occurred which, with the giving of notice under Section 4219
of ERISA, would result in such liability) under Section 4201 or Section 4243
of ERISA with respect to a U.S. Multiemployer Plan; and (v) no Loan Party
nor any ERISA Affiliate has engaged in a transaction that could be subject to
Sections 4069 or 4212(c) of ERISA.

 

(d)                                 (i) No Canadian Pension Event has occurred
or is reasonably likely to occur; (ii) no Canadian Pension Plan has any
Canadian Unfunded Pension Liability which in the aggregate has resulted or
could reasonably be expected to result in liability of the Canadian Borrower or
any Canadian Subsidiary in excess of $2,000,000; (iii) none of the
Canadian Loan Parties or Canadian Subsidiaries has incurred, or reasonably
expects to incur, any liability (and no event has occurred which would result
in such liability) with respect to withdrawal from a Canadian Multiemployer
Plan.

 

6.12                        Insurance.

 

The
properties of GGC and its Subsidiaries are insured in accordance with the terms
of Section 7.07. The insurance coverage of the Loan Parties as in
effect on the Closing Date is outlined as to carrier, policy number, expiration
date, type, amount and deductibles on Schedule 6.12.

 

6.13                        Subsidiaries.

 

Set
forth on Schedule 6.13 is a complete and accurate list as of the
Closing Date of each

 

 

Subsidiary,
together with (i) jurisdiction of formation, (ii) number of shares of
each class of Equity Interests outstanding, (iii) number and
percentage of outstanding shares of each class owned (directly or
indirectly) by any Borrower or any Subsidiary and (iv) number and effect,
if exercised, of all outstanding options, warrants, rights of conversion or
purchase and all other similar rights with respect thereto. The outstanding
Equity Interests of each Subsidiary are validly issued, fully paid and non-assessable.

 

6.14                        Federal Regulations;
Investment Company Act; Other Regulations.

 

(a)                                  Neither Borrower is engaged nor will engage,
principally or as one of its important activities, in the business of
purchasing or carrying margin stock (within the meaning of Regulation U
issued by the FRB), or extending credit for the purpose of purchasing or
carrying margin stock.

 

(b)                                 None of GGC, any Person Controlling GGC, or
any Subsidiary is or is required to be registered as an “investment company”
under the Investment Company Act of 1940.

 

6.15                        Disclosure.

 

Each
Loan Party has disclosed to the applicable Administrative Agent and the Lenders
all agreements, instruments and corporate or other restrictions to which it or
any of its Subsidiaries is subject, and all other matters known to it, that,
individually or in the aggregate, could reasonably be expected to result in a
Material Adverse Effect. No report, financial statement, certificate or other
information furnished (whether in writing or orally) by or on behalf of any
Loan Party to any Administrative Agent or any Lender in connection with the
transactions contemplated hereby and the negotiation of this Agreement or
delivered hereunder or under any other Loan Document (in each case, as modified
or supplemented by other information so furnished) contains any material
misstatement of fact or omits to state any material fact necessary to make the
statements therein, in the light of the circumstances under which they were
made, not misleading; provided that, with respect to projected financial
information, each Loan Party represents only that such information was prepared
in good faith based upon assumptions believed to be reasonable at the time.

 

6.16                        Compliance with Laws.

 

GGC,
each Subsidiary and each of their respective real properties and improvements
thereon is in compliance with the requirements of all Laws and all orders,
writs, injunctions and decrees applicable to it or to its properties, except in
such instances in which (a) such requirement of Law or order, writ,
injunction or decree is being contested in good faith by appropriate proceedings
diligently conducted or (b) the failure to comply therewith, either
individually or in the aggregate, could not reasonably be expected to have a
Material Adverse Effect.

 

6.17                        Intellectual Property;
Licenses.

 

GGC
and its Subsidiaries own, or possess the legal right to use, all of the
trademarks, service marks, trade names, copyrights, patents, patent rights,
franchises, licenses and other intellectual property rights (collectively, “IP
Rights”) that are reasonably necessary for the operation of their
respective businesses. Set forth on Schedule 5.01(e) is a list
of all material IP Rights registered or pending registration with the United
States Copyright Office, the United States Patent and Trademark Office or the
Canadian Intellectual Property Office and owned by each Loan Party as of the
Closing Date. Except for such claims and infringements that could not
reasonably be

 

 

expected
to have a Material Adverse Effect, no claim has been asserted and is pending by
any Person challenging or questioning the use of any IP Rights or the validity
or effectiveness of any IP Rights, nor does any Loan Party know of any such
claim, and, to the knowledge of the Responsible Officers of the Loan Parties,
the use of any IP Rights by any Borrower or any Subsidiary or the granting of a
right or a license in respect of any IP Rights from any Borrower or any
Subsidiary does not infringe on the rights of any Person. As of the Closing
Date, none of the material IP Rights owned by any of the Loan Parties is
subject to any licensing agreement or similar arrangement.

 

6.18                        Solvency.

 

The
Loan Parties are Solvent on a consolidated basis.

 

6.19                        Perfection of Security
Interests in the Collateral.

 

The
Collateral Documents create valid security interests in, and Liens on, the Collateral
purported to be covered thereby, which security interests and Liens will, upon
filing of all requisite financing statements and Mortgages, be perfected
security interests and Liens, prior to all other Liens other than Permitted
Liens.

 

6.20                        Business Locations.

 

Set
forth on Schedule 6.20(a) is a list of all real Property
located in the United States and Canada that is owned or leased by the Loan
Parties as of the Closing Date. Set forth on Schedule 6.20(b) is
a list of all locations where any tangible personal property of any Canadian
Loan Party is located as of the Closing Date. The exact legal name and state of
organization of each Loan Party is as set forth on the signature pages hereto.

 

6.21                        Labor Matters.

 

Except
as set forth on Schedule 6.21, there are no collective bargaining
agreements or U.S. Multiemployer Plans covering the employees of any Borrower
or any Subsidiary as of the Closing Date and neither GGC nor any Subsidiary has
suffered any strikes, walkouts, work stoppages or other material labor
difficulty within the last five years.

 

6.22                        Subordination.

 

The
subordination provisions contained in the 2006 Senior Subordinated Debt
Documents are enforceable against GGC, the other Loan Parties and the holders
of the 2006 Senior Subordinated Notes, and all Obligations hereunder and under
the other Loan Documents constitute “Senior Indebtedness” and “Designated
Senior Indebtedness” (or any comparable terms) under the terms of the 2006
Senior Subordinated Debt Documents.

 

ARTICLE VII

AFFIRMATIVE COVENANTS

 

So
long as any Lender shall have any Commitment hereunder, any Loan or other
Obligation hereunder shall remain unpaid or unsatisfied, or any Letter of
Credit remain outstanding, the Loan Parties shall, and shall cause each
Subsidiary to:

 

 

7.01                        Financial Statements.

 

Deliver
to the Domestic Administrative Agent, in form and detail satisfactory to
the Domestic Administrative Agent and the Required Lenders:

 

(a)                                  upon the earlier of the date that is ninety
days after the end of each fiscal year of GGC or the date such information is
filed with the SEC, a consolidated balance sheet of GGC and its Subsidiaries as
at the end of such fiscal year, and the related consolidated statements of
income or operations, shareholders’ equity and cash flows for such fiscal year,
setting forth in each case in comparative form the figures for the
previous fiscal year, all in reasonable detail and prepared in accordance with
GAAP, audited and accompanied by (i) a report and opinion of a Registered
Public Accounting Firm of nationally recognized standing reasonably acceptable
to the Required Lenders, which report and opinion shall be prepared in
accordance with generally accepted auditing standards and applicable Securities
Laws and shall not be subject to any “going concern” or like qualification or
exception or any qualification or exception as to the scope of such audit or
with respect to the absence of any material misstatement; provided, however,
that the delivery of the consolidated financial statements of GGC and its
Subsidiaries on Form 10K shall satisfy the terms of this Section 7.01(a)(i);
and (ii) an opinion of such Registered Public Accounting Firm
independently assessing the Borrower’s internal controls over financial
reporting in accordance with Item 308 of SEC Regulation S-K, PCAOB Auditing
Standard No. 2, and Section 404 of Sarbanes-Oxley expressing a
conclusion that contains no statement that there is a material weakness in such
internal controls, except for such material weaknesses as to which the Required
Lenders do not object (taking into account any remediation plan that is
developed by GGC); and

 

(b)                                 upon the earlier of the date that is
forty-five (45) days after the end of each of the first three fiscal quarters
of each fiscal year of GGC or the date such information is filed with the SEC,
a consolidated balance sheet of GGC and its Subsidiaries as at the end of such
fiscal quarter, and the related consolidated statements of income or
operations, shareholders’ equity and cash flows for such fiscal quarter and for
the portion of the Borrower’s fiscal year then ended, setting forth in each
case in comparative form the figures for the corresponding fiscal quarter
of the previous fiscal year and the corresponding portion of the previous
fiscal year, all in reasonable detail and certified by a Responsible Officer of
GGC as fairly presenting the financial condition, results of operations,
shareholders’ equity and cash flows of GGC and its Subsidiaries in accordance
with GAAP, subject only to normal year-end audit adjustments and the absence of
footnotes; provided, however, that the delivery of the
consolidated financial statements of GGC and its Subsidiaries on Form 10Q
shall satisfy the terms of this Section 7.01(b).

 

7.02                        Certificates; Other
Information.

 

Deliver
to the Domestic Administrative Agent and each Lender, in form and detail
satisfactory to the Domestic Administrative Agent and the Required Lenders:

 

(a)                                  concurrently with the delivery of the
financial statements referred to in Section 7.01(a), a certificate
of the Registered Public Accounting Firm certifying such financial statements
and stating that in making the examination necessary therefor no knowledge was
obtained of any Event of Default under Section 8.03, 8.06 or
8.11 or, if

 

 

any
such Event of Default shall exist, stating the nature and status of such event
(it being understood that such examination will have extended only to financial
matters);

 

(b)                                 concurrently with the delivery of the
financial statements referred to in Sections 7.01(a) and (b),
a duly completed Compliance Certificate signed by a Responsible Officer of GGC;

 

(c)                                  as soon as available but not later than
thirty (30) days after the end of each fiscal year of GGC, beginning with the
fiscal year ending December 31, 2006, an annual business plan and budget
of GGC and its Subsidiaries containing, among other things, pro forma financial
statements for each quarter of the next fiscal year;

 

(d)                                 promptly after the same are available, copies
of each annual report, proxy or financial statement or other report or
communication sent to the equityholders of any Loan Party, and copies of all
annual, regular, periodic and special reports and registration statements which
a Loan Party may file or be required to file with the SEC under Section 13
or 15(d) of the Securities Exchange Act of 1934, and not otherwise
required to be delivered to the Domestic Administrative Agent pursuant hereto;

 

(e)                                  concurrently with the delivery of the
financial statements referred to in Sections 7.01(a) and (b), a certificate of a Responsible Officer
of GGC containing information regarding the amount of all Dispositions,
Involuntary Dispositions, Debt Issuances, Equity Issuances and Acquisitions, in
each case involving an amount equal to or in excess of $5,000,000 that occurred
during the period covered by such financial statements;

 

(f)                                    promptly after any request by the Domestic
Administrative Agent or any Lender, copies of any detailed audit reports,
management letters or recommendations submitted to the board of directors (or
the audit committee of the board of directors) of GGC by independent
accountants in connection with the accounts or books of any Borrower or any
Subsidiary, or any audit of any of them;

 

(g)                                 promptly after the furnishing thereof, copies
of any statement or report furnished to any holder of debt securities of any
Loan Party or any Subsidiary thereof pursuant to the terms of any indenture,
loan or credit or similar agreement and not otherwise required to be furnished
to the Lenders pursuant to Section 7.01 or any other clause of this
Section 7.02;

 

(h)                                 promptly, and in any event within five
Business Days after receipt thereof by any Loan Party or any Subsidiary
thereof, copies of each notice or other correspondence received from the SEC
(or comparable agency in any applicable non-U.S. jurisdiction) concerning any
investigation or possible investigation or other inquiry by such agency
regarding financial or other operational results of any Loan Party or any
Subsidiary thereof;

 

(i)                                     promptly, such additional information
regarding the business, financial or corporate affairs of any Borrower or any
Subsidiary, or compliance with the terms of the Loan Documents, as the Domestic
Administrative Agent or any Lender may from time to time reasonably
request;

 

(j)                                     concurrently with the delivery of the
financial statements referred to in

 

 

Sections 7.01(a) and (b), a certificate of a
Responsible Officer of GGC (i) listing, with respect to GGC and each
Domestic Subsidiary, (A) all applications, if any, for material Copyrights
or material Patents (each such term as defined in the Domestic Security
Agreement) (such determination of materiality to be made by GGC in its
reasonable discretion) made since the date of the prior certificate (or, in the
case of the first such certificate, the Closing Date), (B) all issuances
of registrations or letters on existing applications for material Copyrights
and material Patents (each such term as defined in the Domestic Security
Agreement) (such determination of materiality to be made by GGC in its
reasonable discretion) received since the date of the prior certificate (or, in
the case of the first such certificate, the Closing Date), and (C) all
material Copyright Licenses and material Patent Licenses (each such term as
defined in the Domestic Security Agreement) (such determination of materiality
to be made by GGC in its reasonable discretion) entered into since the date of
the prior certificate (or, in the case of the first such certificate, the
Closing Date), (ii) listing, with respect to the Canadian Borrower and
each Canadian Subsidiary, (A) all applications, if any, for material
Copyrights, material Patents or material Trademarks (each such term as defined
in the Canadian Security Agreement) (such determination of materiality to be
made by GGC in its reasonable discretion) made since the date of the prior
certificate (or, in the case of the first such certificate, the Closing Date), (B) all
issuances of registrations or letters on existing applications for material
Copyrights, material Patents and material Trademarks (each such term as defined
in the Canadian Security Agreement) (such determination of materiality to be
made by GGC in its reasonable discretion) received since the date of the prior
certificate (or, in the case of the first such certificate, the Closing Date),
and (C) all material Copyright Licenses, material Patent Licenses and
material Trademark Licenses (each such term as defined in the Canadian Security
Agreement) (such determination of materiality to be made by GGC in its
reasonable discretion) entered into since the date of the prior certificate
(or, in the case of the first such certificate, the Closing Date) and (iii) attaching
the insurance binder or other evidence of insurance for any insurance coverage
of any Borrower or any Subsidiary that was renewed, replaced or modified during
the period covered by such financial statements; and

 

(k)                                  promptly, and in any event within two
Business Days after receipt thereof by GGC, copies of each notice or other correspondence
received from Holdco or any of its Subsidiaries, and any notice or other
correspondence provided to Holdco, in connection with the Holdco Note or any
other Intercompany Security Document.

 

Documents
required to be delivered pursuant to Section 7.01 (to the extent
any such documents are included in materials otherwise filed with the SEC) may be
delivered electronically and if so delivered, shall be deemed to have been
delivered on the date (i) on which GGC posts such documents, or provides a
link thereto on the Borrower’s website on the Internet at the website address
listed on Schedule 11.02; or (ii) on which such documents are
posted on the Borrower’s behalf on an Internet or intranet website, if any, to
which each Lender and each Administrative Agent have access (whether a
commercial, third-party website or whether sponsored by an Administrative
Agent); provided that: (i) GGC shall deliver paper copies of such
documents to the Domestic Administrative Agent or any Lender that requests GGC
to deliver such paper copies until a written request to cease delivering paper
copies is given by the Domestic Administrative Agent or such Lender and (ii) GGC
shall notify the Domestic Administrative Agent and each Lender (by telecopier
or electronic mail) of the posting of any such documents and provide to the
Domestic Administrative Agent by electronic mail electronic versions (i.e.,
soft copies) of such documents. Notwithstanding anything contained herein, in
every instance GGC shall be required to provide paper copies of the Compliance
Certificates required by Section 7.02(b) to the Domestic
Administrative Agent. Except for such Compliance

 

 

Certificates,
the Domestic Administrative Agent shall have no obligation to request the
delivery or to maintain copies of the documents referred to above, and in any
event shall have no responsibility to monitor compliance by GGC with any such
request for delivery, and each Lender shall be solely responsible for
requesting delivery to it or maintaining its copies of such documents.

 

GGC
hereby acknowledges that (a) an Administrative Agent and/or BAS will make
available to the Lenders materials and/or information provided by or on behalf
of GGC hereunder (collectively, “Borrower Materials”) by posting the Borrower
Materials on IntraLinks or another similar electronic system (the “Platform”)
and (b) certain of the Lenders may be “public-side” Lenders (i.e., Lenders that do not wish to receive
material non-public information with respect to GGC or its securities) (each, a
“Public Lender”). GGC hereby agrees that (w) all Borrower Materials that are to
be made available to Public Lenders shall be clearly and conspicuously marked “PUBLIC”
which, at a minimum, shall mean that the word “PUBLIC” shall appear prominently
on the first page thereof; (x) by marking Borrower Materials “PUBLIC,” GGC
shall be deemed to have authorized the any Administrative Agent, BAS and the
Lenders to treat such Borrower Materials as not containing any material
non-public information with respect to GGC or its securities for purposes of
United States federal and state securities laws (provided, however,
that to the extent such Borrower Materials constitute Information, they shall
be treated as set forth in Section 11.07); (y) all Borrower
Materials marked “PUBLIC” are permitted to be made available through a portion
of the Platform designated as “Public Investor;” and (z) the
Administrative Agents and BAS shall be entitled to treat any Borrower Materials
that are not marked “PUBLIC” as being suitable only for posting on a portion of
the Platform not marked as “Public Investor.”

 

7.03                        Notices.

 

(a)                                  Promptly (and in any event within two (2) Business
Days of any Responsible Officer obtaining knowledge thereof) notify the
Administrative Agents and each Lender of the occurrence of any Default.

 

(b)                                 Within five (5) Business Days of any
Responsible Officer obtaining knowledge thereof notify the Administrative
Agents and each Lender of any matter that has resulted or could reasonably be
expected to result in a Material Adverse Effect, including (i) breach or
non-performance of, or any default under, a Contractual Obligation of any
Borrower or any Subsidiary; (ii) any dispute, litigation, investigation,
proceeding or suspension between any Borrower or any Subsidiary and any
Governmental Authority; or (iii) the commencement of, or any material
development in, any litigation or proceeding affecting any Borrower or any
Subsidiary, including pursuant to any applicable Environmental Laws.

 

(c)                                  Within five (5) Business Days of any
Responsible Officer obtaining knowledge thereof notify the Administrative
Agents and each Lender of the occurrence of any ERISA Event or Canadian Pension
Event.

 

(d)                                 Within five (5) Business Days of any
Responsible Officer obtaining knowledge thereof notify the Administrative
Agents and each Lender of any material change in accounting policies or
financial reporting practices by any Borrower or any Subsidiary.

 

(e)                                  Upon the reasonable written request of the
applicable Administrative Agent following the occurrence of any event or the
discovery of any condition which such Administrative Agent or the Required
Lenders reasonably believe has caused (or could be reasonably expected to

 

 

cause)
the representations and warranties set forth in Section 6.09 to be
untrue in any material respect, furnish or cause to be furnished to the
applicable Administrative Agent, at the Loan Parties’ expense, a report of an
environmental assessment of reasonable scope, form and depth, (including,
where appropriate, invasive soil or groundwater sampling) by a consultant
reasonably acceptable to the applicable Administrative Agent as to the nature
and extent of the presence of any Hazardous Materials on any Facilities and as
to the compliance by GGC or any of its Subsidiaries with Environmental Laws at
such Facilities. If the Loan Parties fail to deliver such an environmental
report within seventy-five (75) days after receipt of such written request then
the applicable Administrative Agent may arrange for the same, and the Loan
Parties hereby grant to the applicable Administrative Agent and their
representatives access to the Facilities to reasonably undertake such an
assessment (including, where appropriate, invasive soil or groundwater
sampling). The reasonable cost of any assessment arranged for by an
Administrative Agent pursuant to this provision will be payable by the Loan
Parties on demand and added to the obligations secured by the Collateral
Documents; provided, however, that no such environmental assessment,
including invasive soil or groundwater sampling, shall be considered to be
reasonable or appropriate where such assessment will impair the indemnity
rights of GGC by third parties, or where such assessment, not otherwise
required under applicable Environmental Laws, may reasonably be expected
to result in liability to a Governmental Authority.

 

Each
notice pursuant to this Section 7.03(a) through (e) shall
be accompanied by a statement of a Responsible Officer of GGC setting forth
details of the occurrence referred to therein and stating what action GGC has
taken and proposes to take with respect thereto. Each notice pursuant to this Section 7.03
shall describe with particularity any and all provisions of this Agreement and
any other Loan Document that have been breached.

 

7.04                        Payment of Obligations.

 

Pay
and discharge as the same shall become due and payable, all its obligations and
liabilities, including (a) all tax liabilities, assessments and
governmental charges or levies upon it or its properties or assets, unless the
same are being contested in good faith by appropriate proceedings diligently
conducted and adequate reserves in accordance with GAAP are being maintained by
GGC or such Subsidiary; and (b) all lawful claims which, if unpaid, would
by law become a Lien upon its property, other than Permitted Liens.

 

7.05                        Maintenance of Existence.

 

(a) Preserve,
renew and maintain in full force and effect its legal existence and good
standing under the Laws of the jurisdiction of its organization except in a
transaction permitted by Section 8.04 or 8.05; (b) take
all reasonable action to maintain all rights, privileges, permits, licenses and
franchises necessary or desirable in the normal conduct of its business, except
to the extent that failure to do so could not reasonably be expected to have a
Material Adverse Effect; and (c) preserve or renew all of its registered
copyrights, patents, trademarks, trade names and service marks, the non-preservation
of which could reasonably be expected to have a Material Adverse Effect.

 

7.06                        Maintenance of Property.

 

(a) Maintain,
preserve and protect all of its material properties and equipment necessary in
the operation of its business in good working order and condition, ordinary
wear and tear excepted; (b) make all necessary repairs thereto and
renewals and replacements thereof except where the failure to do so could not
reasonably be expected to have a Material Adverse Effect; 

 

 

and (c) use the standard
of care typical in the industry in the operation and maintenance of its facilities.

 

7.07                        Maintenance of Insurance.

 

Maintain
in full force and effect insurance (including worker’s compensation insurance,
liability insurance, casualty insurance and business interruption insurance)
with financially sound and reputable insurance companies not Affiliates of GGC,
in such amounts, with such deductibles and covering such risks as are
customarily carried by companies engaged in similar businesses and owning
similar properties in localities where GGC or the applicable Subsidiary
operates. The applicable Collateral Agent shall be named as loss payee or
mortgagee, as its interest may appear, and/or additional insured with
respect to any such insurance providing coverage in respect of any Collateral
owned by a Loan Party, and each provider of any such insurance shall agree, by
endorsement upon the policy or policies issued by it or by independent
instruments furnished to the applicable Collateral Agent, that it will give
such Collateral Agent thirty (30) days prior written notice before any such policy
or policies shall be altered or canceled.

 

7.08                        Compliance with Laws.

 

Comply
with the requirements of all Laws and all orders, writs, injunctions and
decrees applicable to it or to its business or property, except in such
instances in which (a) such requirement of Law or order, writ, injunction
or decree is being contested in good faith by appropriate proceedings
diligently conducted; or (b) the failure to comply therewith could not
reasonably be expected to have a Material Adverse Effect.

 

7.09                        Books and Records.

 

(a)                                  Maintain proper books of record and account,
in which full, true and correct entries in conformity with GAAP consistently
applied shall be made of all financial transactions and matters involving the
assets and business of GGC or such Subsidiary, as the case may be.

 

(b)                                 Maintain such books of record and account in
material conformity with all applicable requirements of any Governmental
Authority having regulatory jurisdiction over GGC or such Subsidiary, as the
case may be.

 

7.10                        Inspection Rights.

 

(a)                                  Permit representatives and independent
contractors of any Administrative Agent and each Lender to visit and inspect
any of its properties, to examine its corporate, financial and operating
records, and make copies thereof or abstracts therefrom, and to discuss its
affairs, finances and accounts with its directors, officers, and independent
public accountants, all at the expense of GGC and at such reasonable times
during normal business hours and as often as may be reasonably desired,
upon reasonable advance notice to the Borrower; provided, however,
that when an Event of Default exists any Administrative Agent or any Lender (or
any of their respective representatives or independent contractors) may do
any of the foregoing at the expense of GGC at any time during normal business
hours and without advance notice.

 

(b)                                 If requested by any Administrative Agent in
its sole discretion, permit such Administrative Agent, and its representatives,
upon reasonable advance notice to the applicable Borrower, to conduct an annual
audit of the applicable Collateral at the expense of GGC.

 

 

(c)                                  If requested by any Administrative Agent in
its sole discretion (it being understood and agreed that no Administrative
Agent shall make any such request more than once in any fiscal year unless an
Event of Default exists, in which case any Administrative Agent may make
as many requests of the following as it deems necessary), promptly deliver to
such Administrative Agent (a) asset appraisal reports with respect to all
of the real and personal property owned by GGC and its Subsidiaries, and (b) a
written audit of the accounts receivable, inventory, payables, controls and
systems of GGC and its Subsidiaries.

 

7.11                        Use of Proceeds.

 

Use
the proceeds of the Credit Extensions for general corporate purposes not in
contravention of any Law or of any Loan Document.

 

7.12                        Additional Subsidiaries.

 

(a)                                  Within thirty (30) days after the acquisition
or formation of any Subsidiary, notify the applicable Administrative Agent
thereof in writing, together with the (i) jurisdiction of formation, (ii) number
of shares of each class of Equity Interests outstanding, (iii) number
and percentage of outstanding shares of each class owned (directly or
indirectly) by GGC or any Subsidiary and (iv) number and effect, if
exercised, of all outstanding options, warrants, rights of conversion or
purchase and all other similar rights with respect thereto; and

 

(b)                                 Within thirty (30) days after (i) the
acquisition or formation of any Domestic Subsidiary or Canadian Subsidiary
(other than any SPV) that is a Material Subsidiary or (ii) the date on
which any Domestic Subsidiary or Canadian Subsidiary becomes a Material
Subsidiary (other than any SPV), cause such Person to (A) become a
Domestic Guarantor or a Canadian Guarantor, as applicable, by executing and
delivering to the applicable Administrative Agent a Joinder Agreement or such
other documents as such Administrative Agent shall deem appropriate for such
purpose, and (B) deliver to the applicable Administrative Agent and
Collateral Agent documents of the types referred to in Sections 5.01(e) and
(f) and favorable opinions of counsel to such Person (which shall
cover, among other things, the legality, validity, binding effect and
enforceability of the documentation referred to in clause (A) above), all
in form, content and scope reasonably satisfactory to such Administrative Agent
and Collateral Agent.

 

(b)                                 If at any time any Subsidiary that is not
required to be a Guarantor hereunder provides a guarantee of GGC’s obligations
under the 2003 Senior Notes, the 2006 Senior Notes or the 2006 Senior
Subordinated Notes, then promptly (and in any event within thirty (30) days
thereof), cause such Subsidiary to (i) become a Guarantor by executing and
delivering to the applicable Administrative Agent a Joinder Agreement or such
other documents as the such Administrative Agent shall deem appropriate for
such purpose, and (ii) deliver to the applicable Administrative Agent and
Collateral Agent documents of the types referred to in Sections 5.01(e) and
(f) and favorable opinions of counsel to such Person (which shall
cover, among other things, the legality, validity, binding effect and
enforceability of the documentation referred to in clause (a)), all in form,
content and scope reasonably satisfactory to such Administrative Agent and
Collateral Agent.

 

 

7.13                        ERISA Compliance.

 

Do,
and cause each of its ERISA Affiliates to do, each of the following: (a) maintain
each U.S. Plan in compliance in all material respects with the applicable
provisions of ERISA, the Code and other federal or state law and maintain each
Canadian Plan in compliance in all material respects with the applicable
provisions of Canadian federal and provincial law; (b) cause each U.S.
Plan that is qualified under Section 401(a) of the Code to maintain
such qualification and cause each Canadian Pension Plan and Canadian Plan that
is registered under the Canadian Tax Act to maintain such registration and (c) make
all required contributions to (i) any U.S. Plan subject to Section 412
of the Code and (ii) all Canadian Plans and Canadian Pension Plans.

 

7.14                        Pledged Assets.

 

(a)                                  Real and Personal Property.

 

(i)                                     With respect to each Domestic Loan Party,
cause all of its owned and leased real and personal Property other than
Excluded Domestic Property to be subject at all times to first priority,
perfected and, in the case of real Property (whether leased or owned), title
insured Liens in favor of the Domestic Collateral Agent to secure the
Obligations pursuant to the terms and conditions of the Domestic Collateral
Documents or, with respect to any such Property acquired subsequent to the
Closing Date, such other additional security documents as the Domestic
Collateral Agent shall reasonably request, subject in any case to Permitted
Liens and deliver such other documentation as the Domestic Collateral Agent may reasonably
request in connection with the foregoing, including, without limitation,
appropriate UCC-1 financing statements, notice filings with respect to material
intellectual property, real estate title insurance policies, surveys, if
available, landlord’s waivers, certified resolutions and other organizational
and authorizing documents of such Person, favorable opinions of counsel to such
Person (which shall cover, among other things, the legality, validity, binding
effect and enforceability of the documentation referred to above and the
perfection of the Domestic Collateral Agent’s Liens thereunder) and other items
of the types required to be delivered pursuant to Section 5.01(e) and
(f), all in form, content and scope satisfactory to the Domestic
Collateral Agent.

 

(ii)                                  With respect to each Canadian Loan Party,
cause all of its owned and leased real and personal Property other than
Excluded Canadian Property to be subject at all times to first priority,
perfected and, in the case of real Property (whether leased or owned), title
insured Liens in favor of the Canadian Collateral Agent to secure the Canadian
Obligations pursuant to the terms and conditions of the Canadian Collateral
Documents or, with respect to any such Property acquired subsequent to the
Closing Date, such other additional security documents as the Canadian
Collateral Agent shall reasonably request, subject in any case to Permitted Liens
and deliver such other documentation as the Canadian Collateral Agent may reasonably
request in connection with the foregoing, including, without limitation,
appropriate PPSA financing statements, notice filings with respect to material
intellectual property, real estate title insurance policies, surveys, if
available, landlord’s waivers, certified resolutions and other organizational
and authorizing documents of such Person, favorable opinions of counsel to such
Person (which shall cover, among other things, the legality, validity, binding
effect and enforceability of the documentation referred to above and the
perfection of the Canadian Collateral Agent’s Liens thereunder) and other items
of the types required to be delivered pursuant to Section 5.01(e) and
(f), all in form, content and scope satisfactory

 

 

to
the Canadian Collateral Agent.

 

(b)                                 Equity Interests.

 

(i)                                     With respect to each Domestic Loan Party,
cause 100% of the issued and outstanding Equity Interests of each Domestic
Subsidiary and 65% (or such greater percentage that, due to a change in an
applicable Law after the date hereof, (y) could not reasonably be expected to
cause the undistributed earnings of such Foreign Subsidiary as determined for
United States federal income tax purposes to be treated as a deemed dividend to
such Foreign Subsidiary’s United States parent and (z) could not reasonably be
expected to cause any material adverse tax consequences) of the issued and
outstanding Equity Interests entitled to vote (within the meaning of Treas.
Reg. Section 1.956-2(c)(2)) and 100% of the issued and outstanding Equity
Interests not entitled to vote (within the meaning of Treas. Reg. Section 1.956-2(c)(2))
owned by such Domestic Loan Party in each First-Tier Foreign Subsidiary to be
subject at all times to a first priority, perfected Lien in favor of the
Domestic Collateral Agent to secure the Obligations pursuant to the terms and
conditions of the Collateral Documents or such other security documents as the
Domestic Collateral Agent shall reasonably request; and

 

(ii)                                  With respect to each Canadian Loan Party,
cause 100% of the issued and outstanding Equity Interests of each Canadian
Subsidiary and Domestic Subsidiary owned by such Canadian Loan Party to be
subject at all times to a first priority, perfected Lien in favor of the
Canadian Collateral Agent to secure the Canadian Obligations pursuant to the
terms and conditions of the Canadian Collateral Documents or such other
security documents as the Canadian Collateral Agent shall reasonably request.

 

7.15                        Further Assurances Regarding
Collateral.

 

Each
Loan Party shall, upon the reasonable request of the applicable Collateral
Agent, promptly perform or cause to be performed any and all acts and
execute or cause to be executed and delivered any and all documents which are
necessary or advisable to maintain in favor of the applicable Collateral Agent,
for the benefit of the applicable Lenders, Liens on the applicable Collateral
that are duly perfected in accordance with all applicable Laws.

 

7.16                        Landlord and Warehouseman
Waivers.

 

Each
Loan Party shall use commercially reasonable efforts to deliver to the
applicable Collateral Agent waivers of contractual and statutory landlord’s,
landlord’s mortgagee’s and warehouseman’s Liens in form and substance
satisfactory to the applicable Collateral Agent under each existing lease,
warehouse agreement or similar agreement to which any Loan Party is a party; provided
that unless the applicable Collateral Agent agrees otherwise, such waivers also
will be sought when the existing lease, warehouse agreement or similar
agreement is amended, renewed or extended and the applicable Loan Party will
use commercially reasonable efforts to obtain waivers of both contractual and
statutory landlord’s, landlord’s mortgagee’s and warehouseman’s Liens in form and
substance satisfactory to such Collateral Agent in connection with each new
lease, warehouse agreement or similar agreement entered into by any Loan Party.

 

7.17                        Post-Closing Deliverables.

 

(a)                                  On or before the date 45 days after the
Closing Date, with respect to the movable (personal) and immovable (real)
property of the Canadian Borrower located in Quebec, deliver to

 

 

(i) the
Canadian Collateral Agent a fully executed Deed of Hypothec and such other
documentation reasonably required by the Canadian Collateral Agent with respect
to such property in a form reasonably satisfactory to the Canadian
Collateral Agent, including those items satisfying the terms of Section 5.01(b) and
5.01(f)(iii) and (iv) with respect to such property, (ii) GGC
a fully executed Deed of Hypothec and such other documentation reasonably
required by GGC or the Domestic Collateral Agent with respect to such property
in a form reasonably satisfactory to the Domestic Collateral Agent,
including those items satisfying the terms of Section 5.01(b) and
5.01(f)(iii) and (iv) with respect to such property and
(c) the Domestic Collateral Agent fully executed amendments to the
applicable Collateral Assignment Documents sufficient to add such documents referenced
in subclause (ii) above to the referenced “Documents” collaterally
assigned by GGC to the Domestic Collateral Agent pursuant to such Collateral
Assignment Documents.

 

(b)                                 On or before the applicable dates indicated
on Schedule 7.17, deliver to the applicable Administrative Agent or
Collateral Agent the items identified on such Schedule 7.17 in form and
substance reasonably satisfactory to the applicable Administrative Agent or
Collateral Agent.

 

ARTICLE VIII

NEGATIVE COVENANTS

 

So
long as any Lender shall have any Commitment hereunder, any Loan or other
Obligation hereunder shall remain unpaid or unsatisfied, or any Letter of
Credit shall remain outstanding, no Loan Party shall, nor shall it permit any
Subsidiary to, directly or indirectly:

 

8.01                        Liens.

 

Create,
incur, assume or suffer to exist any Lien upon any of its property, assets or
revenues, whether now owned or hereafter acquired, other than the following:

 

(a)                                  Liens pursuant to any Loan Document;

 

(b)                                 Liens existing on the date hereof and listed
on Schedule 8.01 and any renewals or extensions thereof, provided
that (i) the property covered thereby is not changed, (ii) the amount
secured or benefited thereby is not increased, (iii) the direct or any
contingent obligor with respect thereto is not changed, and (iv) any
renewal or extension of the obligations secured or benefited thereby is
permitted by Section 8.03(b);

 

(c)                                  Liens for taxes, assessments, government
charges or levies not yet due or which are being contested in good faith and by
appropriate proceedings diligently conducted, if adequate reserves with respect
thereto are maintained on the books of the applicable Person in accordance with
GAAP;

 

(d)                                 carriers’, warehousemen’s, mechanics’,
materialmen’s, repairmen’s, construction or other like Liens arising in the
ordinary course of business which are not overdue for a period of more than
thirty (30) days or which are being contested in good faith and by appropriate
proceedings diligently conducted, if adequate reserves with respect thereto are
maintained on the books of the applicable Person;

 

(e)                                  pledges or deposits in the ordinary course of
business in connection with workers’ compensation, unemployment insurance and
other social security legislation,

 

 

other
than any Lien imposed by ERISA;

 

(f)                                    deposits to secure the performance of bids,
trade contracts and leases (other than Indebtedness), statutory obligations,
surety and appeal bonds, performance bonds and other obligations of a like
nature incurred in the ordinary course of business;

 

(g)                                 easements, rights-of-way, title defects,
zoning, restrictions and other similar encumbrances or irregularities affecting
real property which do not in any case materially detract from the value of the
property subject thereto or materially interfere with the ordinary conduct of
the business of the applicable Person;

 

(h)                                 Liens securing judgments for the payment of
money (or appeal or other surety bonds relating to such judgments) not
constituting an Event of Default under Section 9.01(i);

 

(i)                                     Liens securing Indebtedness permitted under Section 8.03(e);
provided that (i) such Liens do not at any time encumber any
property other than the Property financed by such Indebtedness; (ii) the
Indebtedness secured thereby does not exceed the cost or fair market value,
whichever is lower, of the Property being acquired on the date of acquisition;
and (iii) such Liens attach to such property concurrently with or within
ninety days after the acquisition thereof; and

 

(j)                                     leases or subleases granted to others not
interfering in any material respect with the business of GGC or any of its
Subsidiaries;

 

(k)                                  any interest of title of a lessor under, and
Liens arising from UCC financing statements (or equivalent filings,
registrations or agreements in foreign jurisdictions) relating to, leases
permitted by this Agreement;

 

(l)                                     Liens deemed to exist in connection with
Investments in repurchase agreements permitted under Section 8.02;

 

(m)                               normal and customary rights of setoff upon
deposits of cash in favor of banks or other depository institutions;

 

(n)                                 Liens of a collection bank arising under Section 4-210
of the Uniform Commercial Code on items in the course of collection;

 

(o)                                 Liens of sellers of goods to GGC and any of
its Subsidiaries arising under Article 2 of the Uniform Commercial
Code or similar provisions of applicable law in the ordinary course of
business, covering only the goods sold and securing only the unpaid purchase
price for such goods and related expenses;

 

(p)                                 Liens in favor of GGC on the assets of Holdco
and its Canadian Subsidiaries pursuant to any Intercompany Security Document;

 

(q)                                 Liens in favor of the holders of the Medium
Term Notes securing Indebtedness under the Medium Term Notes permitted under Section 8.03(k);

 

(r)                                    Liens created or deemed to exist in
connection with any Securitization Transaction permitted under Section 8.03(i),
but only to the extent that any such Lien

 

 

relates
to accounts receivable and related rights which have been transferred or
otherwise assigned pursuant to such Securitization Transaction;

 

(s)                                  Liens on property of a Person existing at the
time such Person becomes a Subsidiary of GGC or is merged or consolidated with
GGC or any Subsidiary of GGC in accordance with Section 8.02(f),
provided that such Liens were not created in contemplation of such merger,
consolidation or Acquisition and do not extend to any assets other than those
of the Person merged into or consolidated with GGC or such Subsidiary or
acquired by GGC or such Subsidiary;

 

(t)                                    the reservations, limitations, provisos and
conditions expressed in any original grants from the Crown of real or immovable
property, which do not materially interfere with (i) the ordinary conduct
of the business of the applicable Person or (ii) the use and enjoyment of
such real or immovable property; and

 

(u)                                 Liens on any monies held by a trustee of any
note or bond issuance which secure unpaid fees and indemnity obligations of the
trustee.

 

8.02                        Investments.

 

Make
any Investments, except:

 

(a)                                  Investments held by GGC or such Subsidiary in
the form of Cash Equivalents;

 

(b)                                 Investments existing as of the Closing Date
and set forth in Schedule 8.02;

 

(c)                                  Investments by any Domestic Loan Party in any
other Domestic Loan Party;

 

(d)                                 Investments by any Canadian Loan Party in any
other Loan Party;

 

(e)                                  Investments of GGC or any Subsidiary directly
related to any Securitization Transaction permitted under Section 8.03(i);

 

(f)                                    Permitted Acquisitions;

 

(g)                                 Holdco Loan by GGC to Holdco in the aggregate
principal amount of CAN$666,000,000; provided that (x) such Holdco Loan is evidenced by the Holdco Note and
secured by the assets of Holdco and its Canadian Subsidiaries pursuant to the Intercompany Security
Documents and such other documentation reasonably satisfactory to the Domestic
Collateral Agent, (y) the rights of GGC under such Holdco Note and Intercompany
Security Documents have been pledged to the Domestic Collateral Agent pursuant
to the Collateral Assignment Documents and (z) the entire principal amount of
such Holdco Loan remains outstanding for the entire term of this Agreement;

 

(h)                                 temporary loan by GGC to Holdco in the
aggregate principal amount of CAN$345,000,000; provided that such temporary
loan is repaid by Holdco within 40 days of the Closing Date by transferring to
GGC the shares of RPU;

 

 

(i)                                     Guarantees permitted by Section 8.03;
and

 

(j)                                     other Investments not exceeding $25,000,000 in the aggregate in any fiscal year of
GGC.

 

8.03                        Indebtedness.

 

Create,
incur, assume or suffer to exist any Indebtedness, except:

 

(a)                                  Indebtedness under the Loan Documents;

 

(b)                                 Indebtedness outstanding on the date hereof
and listed on Schedule 8.03 (and renewals, refinancings and
extensions thereof (a) that do not increase the outstanding principal
amount thereof or result in an earlier maturity date or decreased weighted
average life thereof and (b) the material terms of which are at least as
favorable to the obligors and Lenders as the material terms of the refinanced
Indebtedness);

 

(c)                                  intercompany Indebtedness permitted under Section 8.02;

 

(d)                                 obligations (contingent or otherwise) of any
Borrower or any Subsidiary existing or arising under any Swap Contract; provided
that (i) such obligations are (or were) entered into by such Person in the
ordinary course of business for the purpose of directly mitigating risks
associated with liabilities, commitments, investments, assets, or property held
or reasonably anticipated by such Person, or changes in the value of securities
issued by such Person, and not for purposes of speculation or taking a “market
view” and (ii) such Swap Contract does not contain any provision
exonerating the non-defaulting party from its obligation to make payments on
outstanding transactions to the defaulting party;

 

(e)                                  purchase money Indebtedness (including
obligations in respect of Capital Leases or Synthetic Leases) hereafter
incurred by GGC or any of its Subsidiaries to finance the purchase of fixed
assets, and renewals, refinancings and extensions thereof; provided that
(i) the total of all such Indebtedness for all such Persons taken together
shall not exceed an aggregate principal amount of $25,000,000 at any one time outstanding; (ii) such
Indebtedness when incurred shall not exceed the purchase price of the asset(s)
financed; and (iii) no such Indebtedness shall be refinanced for a
principal amount in excess of the principal balance outstanding thereon at the
time of such refinancing;

 

(f)                                    Indebtedness of GGC under the 2003 Senior
Notes in an aggregate principal amount not to exceed US$108,000,000 at any one
time outstanding;

 

(g)                                 Indebtedness of GGC under the 2006 Senior
Notes in an aggregate principal amount not to exceed US$500,000,000 at any one
time outstanding;

 

(h)                                 Indebtedness of GGC under the 2006 Senior
Subordinated Notes in an aggregate principal amount not to exceed
US$200,000,000 at any one time outstanding;

 

(i)                                     non-recourse Indebtedness and other
obligations of GGC and its Subsidiaries in connection with any Securitization
Transaction; provided that the aggregate principal amount for all such
Securitization Transactions entered into by GGC and its Subsidiaries at any one
time outstanding shall not exceed the sum of (i)

 

 

$350,000,000
plus (ii) the aggregate amount by which GGC reduces the Domestic Revolving
Commitments and/or the Canadian Revolving Commitments pursuant to Section 2.05;

 

(j)                                     Indebtedness of the Canadian Borrower under
the Series D Notes in an aggregate principal amount not to exceed
US$10,000,000 at any one time outstanding;

 

(k)                                  Indebtedness of the Canadian Borrower under
the Medium Term Notes up to $117,000,000 at any one time outstanding (it being
understood and agreed however that the Indebtedness under the Medium Term Notes
shall only be permitted under this Section 8.03(k) until the date
forty (40) days after the Closing Date);

 

(l)                                     Guarantees (which Guarantees in respect of
the 2006 Senior Subordinated Notes shall be similarly subordinated) with
respect to Indebtedness permitted under clauses (a) through (k) of this Section 8.03;

 

(m)                               the RPU Preferred Stock; and

 

(n)                                 other unsecured Indebtedness in an aggregate
principal amount at any time outstanding not to exceed an amount equal to 5.0%
of Consolidated Net Worth.

 

8.04                        Fundamental Changes.

 

Merge,
dissolve, liquidate, consolidate with or into another Person, or Dispose of (whether
in one transaction or in a series of transactions) all or substantially
all of its assets (whether now owned or hereafter acquired) to or in favor of
any Person; provided that, notwithstanding the foregoing provisions of
this Section 8.04 but subject to the terms of Sections 7.12
and 7.14, so long as no Default or Event of Default shall have occurred
and be continuing or would result therefrom, (a) GGC may merge or
consolidate with any of its Domestic Subsidiaries provided that GGC shall be
the continuing or surviving corporation, (b) the Canadian Borrower may amalgamate,
merge or consolidate with any of its Canadian Subsidiaries provided that the
Canadian Borrower shall be a continuing or surviving corporation, (c) any
Domestic Loan Party other than GGC may merge or consolidate with any other
Domestic Loan Party other than GGC, (d) any Canadian Subsidiary (other
than the Canadian Borrower) may be amalgamated, merged or consolidated
with or into any Canadian Loan Party provided that such Canadian Loan Party
shall be a continuing or surviving corporation, (e) any Canadian
Subsidiary that is not a Loan Party may be amalgamated, merged or
consolidated with or into any other Canadian Subsidiary, (f) any Foreign
Subsidiary that is not a Canadian Subsidiary may merge with any other
Foreign Subsidiary that is not a Canadian Subsidiary and (g) any
Subsidiary identified in the Disposition and Dissolution Letter as a Subsidiary
to be dissolved may be dissolved provided that if such Subsidiary is a
Domestic Subsidiary such Subsidiary’s assets are transferred to a Domestic Loan
Party prior to such dissolution and if such Subsidiary is a Canadian Subsidiary
such Subsidiary’s assets are transferred to a Canadian Loan Party prior to such
dissolution.

 

8.05                        Dispositions.

 

Make
any Disposition other than (a) the sale of those certain Subsidiaries and
assets identified in the Disposition and Dissolution Letter and (b) any
other Dispositions in which (i) at least 80% of the total consideration
paid in connection therewith shall be cash or Cash Equivalents paid
contemporaneous with consummation of the transaction and shall be in an amount
not less than the fair market value of the property disposed of, (ii) if
such transaction is a Sale and Leaseback

 

 

Transaction,
such transaction is not prohibited by the terms of Section 8.14, (iii) such
transaction does not involve the sale or other disposition of a minority equity
interest in any Subsidiary, (iv) such transaction does not involve a sale
or other disposition of receivables other than (A) receivables owned by or
attributable to other property concurrently being disposed of in a transaction
otherwise permitted under this Section 8.05 and (B) the sale
of accounts receivable pursuant to a permitted Securitization Transaction and (v) the
aggregate fair market value of all of the assets sold or otherwise disposed of
by GGC and its Subsidiaries in all such transactions in any fiscal year of GGC
shall not exceed $150,000,000.

 

8.06                        Restricted Payments.

 

Declare
or make, directly or indirectly, any Restricted Payment, or incur any
obligation (contingent or otherwise) to do so, except that so long as no
Default or Event of Default shall have occurred and be continuing at the time
any action described below or would result therefrom:

 

(a)                                  each Subsidiary may make Restricted
Payments to any Domestic Loan Party;

 

(b)                                 each Canadian Subsidiary may make
Restricted Payments to any Canadian Loan Party;

 

(c)                                  each Borrower and each Subsidiary may declare
and make dividend payments or other distributions payable solely in the Equity
Interests of such Person;

 

(d)                                 GGC may purchase shares of Restricted
Stock (as defined in any Incentive Equity Plan) from employees of GGC or its
Subsidiaries upon termination of such employees’ employment, in accordance with
an Incentive Equity Plan in amounts not to exceed $5,000,000 during any fiscal
year and $30,000,000 in the aggregate during the term of this Agreement; and

 

(e)                                  GGC may make Restricted Payments in
addition to those permitted pursuant to the foregoing clauses if (i) no
Default shall have occurred and be continuing and (ii) after giving effect
to any such payment, the cumulative amount of all payments made in reliance on
this clause (e) does not exceed the sum of $50,000,000 plus 50% of
Cumulative Net Income calculated on the date of such payment.

 

For
purposes of this Section 8.06, “Cumulative Net Income” means, on
any date of determination, the cumulative amount of Consolidated Net Income of
GGC and its Subsidiaries from and including the fiscal quarter ending December 31,
2006 to and including the fiscal quarter of GGC most recently ended prior to
such date of determination for which financial statements have been provided
pursuant to Section 7.01.

 

8.07                        Change in Nature of Business.

 

Engage
in any material line of business substantially different from those lines of
business conducted by GGC and its Subsidiaries on the Closing Date or any
business substantially related or incidental or complementary thereto.

 

 

 

8.08                        Transactions with Affiliates.

 

Enter
into or permit to exist any transaction or series of transactions with any
officer, director or Affiliate of such Person other than (a) advances of
working capital from a Domestic Loan Party to another Domestic Loan Party, (b) transfers
of cash and assets from a Domestic Loan Party to another Domestic Loan Party, (c) advances
of working capital from a Canadian Loan Party to another Canadian Loan Party, (d) transfers
of cash and assets from a Canadian Loan Party to another Canadian Loan Party, (e) intercompany
transactions expressly permitted by Section 8.02, Section 8.03,
Section 8.04, Section 8.05 or Section 8.06,
(f) normal and reasonable compensation and reimbursement of expenses of
officers and directors and (e) except as otherwise specifically limited in
this Agreement, other transactions which are entered into in the ordinary
course of such Person’s business on terms and conditions substantially as
favorable to such Person as would be obtainable by it in a comparable arms-length
transaction with a Person other than an officer, director or Affiliate.

 

8.09                        Burdensome Agreements.

 

(a)                                  Enter into, or permit to exist, any
Contractual Obligation that encumbers or restricts on the ability of any such
Person to (i) pay dividends or make any other distributions to any Loan
Party on its Equity Interests or with respect to any other interest or
participation in, or measured by, its profits, (ii) pay any Indebtedness
or other obligation owed to any Loan Party, (iii) make loans or advances
to any Loan Party, (iv) sell, lease or transfer any of its property to any
Loan Party, (v) pledge its property pursuant to the Loan Documents or any
renewals, refinancings, exchanges, refundings or extension thereof or (vi) act
as a Loan Party pursuant to the Loan Documents or any renewals, refinancings,
exchanges, refundings or extension thereof, except (in respect of any of the
matters referred to in clauses (i)-(iv) above) for (A) this Agreement
and the other Loan Documents, (B) the Medium Term Notes Documents, (C) the
2003 Senior Notes Documents, (D) the 2006 Senior Notes Documents, (E) the
2006 Senior Subordinated Debt Documents, (F) any document or instrument
governing Indebtedness incurred pursuant to Section 8.03(e); provided
that any such restriction contained therein relates only to the asset or assets
constructed or acquired in connection therewith, (G) any Permitted Lien or
any document or instrument governing any Permitted Lien; provided that
any such restriction contained therein relates only to the asset or assets
subject to such Permitted Lien or (H) customary restrictions and
conditions contained in any agreement relating to the sale of any property
permitted under Section 8.05 pending the consummation of such sale.

 

(b)                                 Enter into, or permit to exist, any
Contractual Obligation that prohibits or otherwise restricts the existence of
any Lien upon any of its property in favor of the applicable Collateral Agent
(for the benefit of the applicable Lenders) for the purpose of securing the
Obligations or the Canadian Obligations, as applicable, whether now owned or
hereafter acquired, or requiring the grant of any security for any obligation
if such property is given as security for the Obligations or the Canadian
Obligations, as applicable, except (i) the Medium Term Notes Documents, (ii) the
2003 Senior Notes Documents, (iii) the 2006 Senior Notes Documents, (iv) the
2006 Senior Subordinated Debt Documents, (v) any document or instrument
governing Indebtedness incurred pursuant to Section 8.03(e); provided
that any such restriction contained therein relates only to the asset or assets
constructed or acquired in connection therewith, (vi) in connection with
any Permitted Lien or any document or instrument governing any Permitted Lien; provided
that any such restriction contained therein relates only to the asset or assets
subject to such Permitted Lien, (vii) pursuant to customary restrictions
and conditions contained in any agreement relating to the sale of any property
permitted under Section 8.05, pending the consummation of such
sale, (viii) any such restriction contained in the Gallman Reimbursement
and Security Agreement with respect to the Gallman Property and (ix) any
such restriction with

 

 

respect
to the Praxair Collateral contained in any agreement governing the indebtedness
owing to Praxair, Inc.

 

8.10                        Use of Proceeds.

 

Use
the proceeds of any Credit Extension, whether directly or indirectly, and
whether immediately, incidentally or ultimately, to purchase or carry margin
stock (within the meaning of Regulation U of the FRB) or to extend credit
to others for the purpose of purchasing or carrying margin stock or to refund
indebtedness originally incurred for such purpose.

 

8.11                        Financial Covenants.

 

(a)                                  Consolidated Interest Coverage Ratio. Permit the Consolidated Interest Coverage
Ratio as of the end of any fiscal quarter of GGC to be less than (i) 2.5
to 1.0 as of any fiscal quarter ending on or before September 30, 2007, (ii) 2.75
to 1.0 as of any fiscal quarter ending on or before September 30, 2008 and
(iii) 3.0 to 1.0 as of any fiscal quarter ending thereafter.

 

(b)                                 Consolidated Leverage Ratio. Permit the Consolidated Leverage Ratio as
of the end of any fiscal quarter of GGC to be greater than (i) 5.0 to 1.0
as of any fiscal quarter ending on or before September 30, 2007, (ii) 4.5
to 1.0 as of any fiscal quarter ending on or before September 30, 2008, (iii) 4.0
to 1.0 as of any fiscal quarter ending on or before September 30, 2009 and
(iv) 3.5 to 1.0 as of any fiscal quarter ending thereafter.

 

8.12                        Prepayment of Other
Indebtedness, Etc.

 

(a)                                  Amend or modify any of the terms of the
Medium Term Notes Documents, the 2003 Senior Notes Documents, the 2006 Senior
Notes Documents, the 2006 Senior Subordinated Notes Documents or any other
documentation governing Indebtedness of the Borrowers or any Subsidiary (other
than Indebtedness arising under the Loan Documents) if such amendment or
modification would (i) add or change any terms in a manner adverse to such
Borrower or any Subsidiary or (ii) add or change any terms in a manner
adverse to the Lenders.

 

(b)                                 Make (or give any notice with respect
thereto) any voluntary or optional payment or prepayment or redemption or
acquisition for value of (including without limitation, by way of depositing
money or securities with the trustee with respect thereto before due for the
purpose of paying when due), refund, refinance or exchange of the 2003 Senior
Notes, the 2006 Senior Notes, the 2006 Senior Subordinated Notes, the RPU
Preferred Stock or any other Indebtedness of the Borrowers or any Subsidiary
(other than Indebtedness arising under the Loan Documents), it being understood
and agreed however that (i) the Medium Term Notes shall be prepaid in full
within forty (40) days of the Closing Date and (ii) the Series D
Notes permitted by Section 8.03(j) and the payable-in-kind note
made by GGC (and assumed by Vinyls) in favor of Praxair, Inc. in an
aggregate principal amount outstanding not to exceed $12,300,000 may be
prepaid at any time.

 

(c)                                  (i) Accept or permit to be made any
principal payment on the Holdco Loan; provided, however,
prepayments may be made by Holdco, and accepted by GGC, on the Holdco Loan
provided that after giving effect to any such prepayment the U.S. Dollar Equivalent
of the principal amount outstanding under the Holdco Loan equals or exceeds the
sum of (A) the principal amount of the Term Loan then outstanding and (B) the
Aggregate Domestic Revolving Commitments then in effect, (ii) amend or
modify the Holdco Note or any Intercompany Security Document or (iii) assign,
or consent to any assignment by Holdco or any Canadian Subsidiary, of the

 

 

Holdco
Note or any Intercompany Security Document.

 

(d)                                 The Canadian Borrower shall not require (or
otherwise cause) the purchase, redemption, defeasance or payment of any kind by
RPU of the RPU Preferred Stock during the term of this Agreement.

 

8.13                        Organization Documents;
Fiscal Year; Legal Name, State of Formation and Form of Entity.

 

(a)                                  Amend, modify or change its Organization Documents
in a manner adverse to the Lenders (in their capacity as creditors).

 

(b)                                 Change, or permit any Subsidiary to change,
its fiscal year (except that a Subsidiary may change its fiscal year to
conform to that of the Borrowers).

 

(c)                                  Without providing ten (10) days prior
written notice to the Domestic Administrative Agent, change, or permit any
Subsidiary to change, its name, state of formation or form of
organization.

 

(d)                                 (i) Permit any Subsidiary of GGC to
issue or have outstanding any shares of preferred Equity Interests that are
mandatorily redeemable, redeemable at the option of the holder or provide for
cash payments (other than the RPU Preferred Stock and any such preferred shares
permitted by Sections 8.02(c) or 8.02(d)) or (ii) create, incur, assume or
suffer to exist any Lien on any Equity Interests of any Subsidiary of GGC,
except for Permitted Liens.

 

8.14                        Sale Leasebacks.

 

Enter
into subsequent to the Closing Date any Sale and Leaseback Transactions which,
considered in the aggregate with all Sale and Leaseback Transactions engaged in
by GGC and its Subsidiaries subsequent to the Closing Date, involve properties
having a fair market value in excess of $10,000,000; provided, that the
foregoing limitation shall not apply to (i) temporary, short-term
leasebacks with a term not to exceed six (6) months at a market rent to
facilitate transition following a sale of a business or (ii) other sale
leasebacks of space for convenience where the aggregate lease payments
(undiscounted) for such leases do not exceed $20,000,000 at any time. For
avoidance of doubt, it is understood and agreed that all Sale and Leaseback
Transactions are Dispositions and therefore subject to the limitations on
Dispositions in Section 8.05.

 

8.15                        Capital Expenditures.

 

Permit
Consolidated Capital Expenditures to exceed an amount equal to the sum of:

 

(a)                                  during fiscal year 2007, $200,000,000 plus
the amount of Excess Cash Flow for the prior fiscal year not required to be
prepaid pursuant to Section 2.05(b)(v);

 

(b)                                 during fiscal year 2008, $175,000,000 plus
the amount of Excess Cash Flow for the prior fiscal year not required to be
prepaid pursuant to Section 2.05(b)(v);

 

(c)                                  during fiscal year 2009, $135,000,000 plus
the amount of Excess Cash Flow for the prior fiscal year not required to be
prepaid pursuant to

 

 

Section 2.05(b)(v); and

 

(d)                                 for each fiscal year thereafter, $135,000,000
plus the amount of Excess Cash Flow for the prior fiscal year not required to
be prepaid pursuant to Section 2.05(b)(v) plus the unused
amount available for Consolidated Capital Expenditures from the immediately
preceding fiscal year (excluding any carry forward available from any prior
fiscal year);

 

plus
commencing with fiscal year 2009, an amount to be used only in the fiscal years
commencing with fiscal year 2009 (such amount to be allocated and used by GGC
in its discretion over the remaining fiscal years) equal to excess (if any) of
the aggregate amount of Consolidated Capital Expenditures permitted by clauses (a) and
(b) above for fiscal years 2007 and 2008 over the aggregate amount of
Consolidated Capital Expenditures actually made during such fiscal years.

 

ARTICLE IX

EVENTS OF DEFAULT AND REMEDIES

 

9.01                        Events of Default.

 

Any
of the following shall constitute an Event of Default:

 

(a)                                  Non-Payment. Any Borrower or any other Loan Party fails to pay (i) when and
as required to be paid herein, any amount of principal of any Loan or any L/C
Obligation, or (ii) within three days after the same becomes due, any
interest on any Loan or on any L/C Obligation, or (iii) within five days
after the same becomes due, any other amount payable hereunder or under any
other Loan Document; or

 

(b)                                 Specific Covenants. Any Loan Party fails to perform or
observe any term, covenant or agreement contained in any of Sections 7.03,
7.05(a), 7.10(a), 7.11 or Article VIII (other
than Section 8.01); or

 

(c)                                  Information Covenants. Any Loan Party fails to perform or
observe any term, covenant or agreement contained in any of Sections 7.01,  7.02 or 7.07 and such failure continues
for five (5) days; or

 

(d)                                 Other Defaults. Any Loan Party fails to perform or
observe any other covenant or agreement (not specified in subsection (a), (b) or
(c) above) contained in any Loan Document on its part to be performed
or observed and such failure continues for thirty (30) days; or

 

(e)                                  Representations and Warranties. Any representation, warranty, certification
or statement of fact made or deemed made by or on behalf of GGC or any other
Loan Party herein, in any other Loan Document, or in any document delivered in
connection herewith or therewith shall be incorrect or misleading in any
material respect when made or deemed made; or

 

(f)                                    Cross-Default. (i) Any Loan Party (A) fails to
make any payment when due (whether by scheduled maturity, required prepayment,
acceleration, demand, or otherwise) in respect of any Indebtedness or Guarantee
(other than Indebtedness

 

 

hereunder
and Indebtedness under Swap Contracts) having an aggregate principal amount
(including undrawn committed or available amounts and including amounts owing
to all creditors under any combined or syndicated credit arrangement) of more
than the Threshold Amount, or (B) fails to observe or perform any
other agreement or condition relating to any such Indebtedness or Guarantee or
contained in any instrument or agreement evidencing, securing or relating
thereto, or any other event occurs, the effect of which default or other event
is to cause, or to permit the holder or holders of such Indebtedness or the
beneficiary or beneficiaries of such Guarantee (or a trustee or agent on behalf
of such holder or holders or beneficiary or beneficiaries) to cause, with the
giving of notice if required, such Indebtedness to be demanded or to become due
or to be repurchased, prepaid, defeased or redeemed (automatically or
otherwise), or an offer to repurchase, prepay, defease or redeem such
Indebtedness to be made, prior to its stated maturity, or such Guarantee to
become payable or cash collateral in respect thereof to be demanded; or (ii) there
occurs under any Swap Contract an Early Termination Date (as defined in such
Swap Contract) resulting from (A) any event of default under such Swap
Contract as to which any Loan Party is the Defaulting Party (as defined in such
Swap Contract) or (B) any Termination Event (as so defined) under such
Swap Contract as to which any Loan Party is an Affected Party (as so defined)
and, in either event, the Swap Termination Value owed by such Loan Party as a
result thereof is greater than the Threshold Amount; or

 

(g)                                 Insolvency Proceedings, Etc. Any Loan Party institutes or consents to
the institution of any proceeding under any Debtor Relief Law, or makes an
assignment for the benefit of creditors; or applies for or consents to the
appointment of any receiver, trustee, custodian, conservator, liquidator,
rehabilitator or similar officer for it or for all or any material part of
its property; or any receiver, trustee, custodian, conservator, liquidator,
rehabilitator or similar officer is appointed without the application or
consent of such Person and the appointment continues undischarged or unstayed
for sixty (60) calendar days; or any proceeding under any Debtor Relief Law
relating to any such Person or to all or any material part of its property
is instituted without the consent of such Person and continues undismissed or
unstayed for sixty (60) calendar days, or an order for relief is entered in any
such proceeding; or

 

(h)                                 Inability to Pay Debts; Attachment. (i) Any Loan Party becomes unable or
admits in writing its inability or fails generally to pay its debts as they
become due, or (ii) any writ or warrant of attachment or execution or
similar process is issued or levied against all or any material part of
the property of any such Person and is not released, vacated or fully bonded
within sixty (60) days after its issue or levy; or

 

(i)                                     Judgments. There is entered against any Loan Party (i) one or more final
judgments or orders for the payment of money in an aggregate amount (as to all
such judgments or orders) exceeding the Threshold Amount (to the extent not
covered by independent third-party insurance as to which the insurer does not
dispute coverage), or (ii) any one or more non-monetary final judgments
that have, or could reasonably be expected to have, individually or in the
aggregate, a Material Adverse Effect and, in either case, (A) enforcement
proceedings are commenced by any creditor upon such judgment or order, or (B) there
is a period of sixty (60) consecutive days during which a stay of enforcement
of such judgment, by reason of a pending appeal or otherwise, is not in effect;
or

 

(j)                                     ERISA. (i) An ERISA Event occurs with respect to a U.S. Pension Plan

 

 

or
U.S. Multiemployer Plan which has resulted or could reasonably be expected to
result in liability of GGC under Title IV of ERISA to the U.S. Pension
Plan, U.S. Multiemployer Plan or the PBGC in an aggregate amount in excess of
the Threshold Amount, (ii) GGC or any ERISA Affiliate fails to pay when
due, after the expiration of any applicable grace period, any installment
payment with respect to its withdrawal liability under Section 4201 of
ERISA under a U.S. Multiemployer Plan in an aggregate amount in excess of the
Threshold Amount, (iii) a Canadian Pension Event occurs with respect to a
Canadian Pension Plan which has resulted or could reasonably be expected to
result in liability of the Canadian Borrower or any Canadian Loan Party in an
aggregate amount in excess of the Threshold Amount; or (iv) the Canadian
Borrower or any Canadian Loan Party fails to pay when due, after the expiration
of any applicable grace period, any payment with respect to its withdrawal
liability from a Canadian Multiemployer Plan in an aggregate amount in excess
of the Threshold Amount; or

 

(k)                                  Invalidity of Loan Documents. Any provision of any Loan Document, at any
time after its execution and delivery and for any reason other than as
expressly permitted hereunder or thereunder or satisfaction in full of all the
Obligations, ceases to be in full force and effect; or any Loan Party or any
other Person on behalf of any Loan Party contests in any manner the validity or
enforceability of any provision of any Loan Document; or any Loan Party denies
that it has any or further liability or obligation under any Loan Document, or
purports to revoke, terminate or rescind any provision of any Loan Document; or

 

(l)                                     Change of Control. There occurs any Change of Control; or

 

(m)                               Medium Term Notes. There shall occur an “Event of Default” (or
any comparable term) under, and as defined in, the Medium Term Notes Documents;
or

 

(n)                                 2003 Senior Notes. There shall occur an “Event of Default” (or
any comparable term) under, and as defined in, the 2003 Senior Notes Documents;
or

 

(o)                                 2006 Senior Notes. There shall occur an “Event of Default” (or
any comparable term) under, and as defined in, the 2006 Senior Notes Documents;
or

 

(p)                                 2006 Senior Subordinated Notes. (i) There shall occur an “Event of
Default” (or any comparable term) under, and as defined in, the 2006 Senior
Subordinated Debt Documents or (ii) the subordination provisions of the
2006 Senior Subordinated Debt Documents shall, in whole or in part, terminate,
cease to be effective or cease to be legally valid, binding and enforceable
against any holder of any 2006 Senior Subordinated Notes during such time as
any 2006 Senior Subordinated Notes are outstanding; or

 

(q)                                 Holdco Note Documents. There shall occur a “Default” or an “Event
of Default” (or any comparable terms) under, and as defined in, the Holdco Note
or any Intercompany Security Document.

 

9.02                        Remedies Upon Event of
Default.

 

(a)                                  If any Event of Default occurs and is
continuing, the Domestic Administrative Agent shall, at the request of, or may,
with the consent of, the Required Domestic Revolving Lenders, take any or all
of the following actions:

 

 

(i)                                     declare the commitment of each Lender with a
Domestic Revolving Commitment to make Loans and any obligation of the Domestic
L/C Issuer to make Domestic L/C Credit Extensions to be terminated, whereupon
such commitments and obligation shall be terminated; and

 

(ii)                                  require that GGC Cash Collateralize the
Domestic L/C Obligations (in an amount equal to the then applicable Outstanding
Amount thereof).

 

(b)                                 If any Event of Default occurs and is
continuing, the Canadian Administrative Agent shall, at the request of, or may,
with the consent of, the Required Canadian Lenders, take any or all of the
following actions:

 

(i)                                     declare the commitment of each Lender with a
Canadian Revolving Commitment to make Canadian Revolving Loans, any obligation
of the Canadian L/C Issuer to make Canadian L/C Credit Extensions and any
obligation of the Canadian Swing Line Lender to make Canadian Swing Line Loans
to be terminated, whereupon such commitments and obligation shall be
terminated; and

 

(ii)                                  require that the Borrowers Cash Collateralize
the Canadian L/C Obligations (in an amount equal to the then applicable
Outstanding Amount thereof).

 

(c)                                  If any Event of Default occurs and is
continuing, the applicable Administrative Agent and/or applicable Collateral
Agent shall, at the request of, or may, with the consent of, the Required
Lenders, take any or all of the following actions

 

(i)                                     (a) declare the unpaid principal amount
of all outstanding Loans, all interest accrued and unpaid thereon, and all other
amounts owing or payable hereunder or under any other Loan Document to be
immediately due and payable, without presentment, demand, protest or other
notice of any kind, all of which are hereby expressly waived by the Borrowers
and (b) with respect to the Canadian Administrative Agent, demand that the
Canadian Borrower deliver cash to the Canadian Collateral Agent, for the
benefit of the BA Lenders and the Acceptance Lenders, in the amount of 100% of
the aggregate Face Amount of outstanding Bankers’ Acceptances and Acceptance
Notes; and

 

(ii)                                  exercise on behalf of itself and the Lenders
all rights and remedies available to it and the Lenders under the Loan
Documents;

 

provided, however, that upon the occurrence of
an actual or deemed entry of an order for relief with respect to a Borrower
under any Debtor Relief Law, the obligation of each Lender to make Loans and
any obligation of the L/C Issuers to make L/C Credit Extensions shall
automatically terminate, the unpaid principal amount of all outstanding Loans
and all interest and other amounts as aforesaid shall automatically become due
and payable, and the obligation of the Borrowers to Cash Collateralize the L/C
Obligations as aforesaid shall automatically become effective, in each case
without further act of any Administrative Agent or any Lender.

 

9.03                        Application of Funds.

 

After
the exercise of remedies provided for in Section 9.02 (or after the
Loans have automatically become immediately due and payable and the L/C
Obligations have automatically been required to be Cash Collateralized as set
forth in the proviso to Section 9.02), any amounts

 

 

received
on account of the Obligations shall be applied the following order:

 

(a)                                  any amounts received on account of the
Obligations (other than the Canadian Obligations) shall be applied in the
following order:

 

First, to
payment of that portion of the Obligations constituting fees, indemnities,
expenses and other amounts (including fees, charges and disbursements of
counsel to the Domestic Administrative Agent and the Domestic Collateral Agent
and amounts payable under Article III) payable to the Domestic
Administrative Agent and the Domestic Collateral Agent, each in its capacity as
such;

 

Second, to
payment of that portion of the Obligations constituting fees, indemnities and
other amounts (other than principal, interest and Letter of Credit Fees)
payable to the Lenders (including fees, charges and disbursements of counsel
and amounts payable under Article III), ratably among the Lenders
in proportion to the respective amounts described in this clause Second
payable to them;

 

Third, to
payment of that portion of the Obligations constituting accrued and unpaid
Letter of Credit fees and interest on the Loans, L/C Borrowings and other
Obligations, ratably among the Lenders and the L/C Issuers in proportion to the
respective amounts described in this clause Third payable to them;

 

Fourth, to (i) payment
of that portion of the Obligations constituting unpaid principal of the Loans
and L/C Borrowings, (ii) payment of breakage, termination or other
payments, and any interest accrued thereon, due under any Swap Contract between
any Loan Party and any Lender, or any Affiliate of a Lender, (iii) payments
of amounts due under any Treasury Management Agreement between any Loan Party
and any Lender, or any Affiliate of a Lender and (d) Cash Collateralize
that portion of the L/C Obligations comprised of the aggregate undrawn amount
of Letters of Credit, ratably among such parties in proportion to the
respective amounts described in this clause Fourth held by them; and

 

Last, the
balance, if any, after all of the Obligations have been indefeasibly paid in
full, to the Borrowers or as otherwise required by Law.

 

Subject to Section 2.03(c), amounts used to Cash
Collateralize the aggregate undrawn amount of Letters of Credit pursuant to
clause Fourth above shall be applied to satisfy drawings under such
Letters of Credit as they occur. If any amount remains on deposit as Cash
Collateral after all Letters of Credit have either been fully drawn or expired,
such remaining amount shall be applied to the other Obligations, if any, in the
order set forth above.

 

(b)                                 any amounts received on account of the
Canadian Obligations shall be applied in the following order:

 

First, to
payment of that portion of the Canadian Obligations constituting fees,
indemnities, expenses and other amounts (including fees, charges and
disbursements of counsel to the Canadian Administrative Agent and the Domestic
Collateral Agent and amounts payable under Article III) payable to
the Canadian Administrative Agent and the Domestic Collateral Agent, each in
its capacity as such;

 

 

Second, to
payment of that portion of the Canadian Obligations constituting fees,
indemnities and other amounts (other than principal, interest and Letter of
Credit Fees) payable to the Lenders (including fees, charges and disbursements
of counsel and amounts payable under Article III), ratably among
the Lenders in proportion to the respective amounts described in this clause Second
payable to them;

 

Third, to
payment of that portion of the Canadian Obligations constituting accrued and
unpaid Letter of Credit fees and interest on the Canadian Revolving Loans,
Canadian Swing Line Loans, Canadian L/C Borrowings and other Canadian
Obligations, ratably among the Lenders, Canadian Swing Line Lender and the
Canadian L/C Issuer in proportion to the respective amounts described in this
clause Third payable to them;

 

Fourth, to (i) payment
of that portion of the Canadian Obligations constituting unpaid principal of
the Loans and Canadian L/C Borrowings, (ii) payment of breakage,
termination or other payments, and any interest accrued thereon, due under any
Swap Contract with respect to the Canadian Obligations between any Loan Party
and any Lender, or any Affiliate of a Lender and (iii) payments of amounts
due under any Treasury Management Agreement with respect to any Canadian
Obligations between any Loan Party and any Lender, or any Affiliate of any
Lender and (d) Cash Collateralize that portion of the Canadian L/C
Obligations comprised of the aggregate undrawn amount of Canadian Letters of
Credit, ratably among such parties in proportion to the respective amounts
described in this clause Fourth held by them; and

 

Last, the
balance, if any, after all of the Canadian Obligations have been indefeasibly
paid in full, to the Canadian Borrower or as otherwise required by Law.

 

Subject to Section 2.03(c), amounts used to Cash
Collateralize the aggregate undrawn amount of Canadian Letters of Credit
pursuant to clause Fourth above shall be applied to satisfy drawings
under such Canadian Letters of Credit as they occur. If any amount remains on
deposit as Cash Collateral after all Canadian Letters of Credit have either
been fully drawn or expired, such remaining amount shall be applied to the
other Canadian Obligations, if any, in the order set forth above.

 

9.04                        Collection Allocation
Mechanism.

 

(a)                                  On the CAM Exchange Date, the Lenders shall
automatically and without further action be deemed to have exchanged interests
in the Specified Obligations under the Tranches (and participation interests in
Letters of Credit) such that, in lieu of the interest of each Lender in the
Specified Obligations under each Tranche in which it shall participate as of
such date (including the principal, reimbursement, interest and fee obligations
of each Loan Party in respect of each such Tranche) and, if such Lender holds a
Domestic Revolving Commitment, a Canadian Revolving Commitment or a Canadian
Swing Line Commitment as of such date, such Lender’s participation interests in
applicable Letters of Credit, such Lender shall own an interest equal to such
Lender’s CAM Percentage in the Specified Obligations under each of the Tranches
(including the principal, reimbursement, interest and fee obligations of each
Loan Party in respect of each such Tranche) and hold a participation interest
in each Letter of Credit equal to its CAM Percentage thereof. Simultaneously
with any CAM Exchange, the interests to be received by any Lender in such CAM
Exchange shall, if applicable, be automatically and with no further action
required, converted into the U.S. Dollar Equivalent, calculated in accordance
with the terms hereof, of such amount and on and after the CAM Exchange Date
all amounts accruing and owed to the Lenders in respect of such Obligations
shall accrue and be payable in U.S. Dollars at the

 

 

rate
otherwise applicable hereunder. Each Lender, each Participant, each Loan Party
and each Administrative Agent hereby consents and agrees to the CAM Exchange. Each
Lender and each Loan Party hereby agrees from time to time to execute and
deliver to the applicable Administrative Agent all such promissory notes and
other instruments and documents as the applicable Administrative Agent shall
reasonably request to evidence and confirm the respective interests and
obligations of the Lenders after giving effect to the CAM Exchange, and each
Lender agrees to surrender any promissory notes originally received by such
Lender to the applicable Administrative Agent against delivery of any
promissory notes so executed and delivered; provided, however,
that the failure of any Loan Party to execute and deliver or of any Lender to
accept any such promissory note, instrument or document shall not affect the
validity or effectiveness of the CAM Exchange. On the CAM Exchange Date, each
Lender whose funded Exposures after giving effect to the CAM Exchange shall
exceed its funded Exposures before giving effect thereto shall pay to the
applicable Administrative Agent the amount of such excess in the applicable
currency or currencies (or, if requested by the applicable Administrative
Agent, in U.S. Dollars), and such Administrative Agent shall pay to each of the
Lenders, out of the amount so received by it, the amount by which such Lender’s
funded Exposures before giving effect to the CAM Exchange exceeds such funded
Exposures after giving effect to the CAM Exchange.

 

(b)                                 Each Lender’s obligation to exchange its
interests pursuant to the CAM Exchange shall be absolute and unconditional and
shall not be affected by any circumstance including, without limitation, (i) any
setoff, counterclaim, recoupment, defense or other right which such Lender may have
against any other Lender, any Loan Party or any other Person for any reason
whatsoever, (ii) the occurrence or continuance of a Default, (iii) any
adverse change in the condition (financial or otherwise) of any Loan Party or
any of its Subsidiaries or any other Person, (iv) any breach of this
Agreement by any Loan Party, any Lender or any other Person, or (v) any
other circumstance, happening or event whatsoever, whether or not similar to
any of the foregoing.

 

ARTICLE X

ADMINISTRATIVE AGENTS

 

10.01                 Appointment and Authority.

 

(a)                                  Each of the Lenders and the L/C Issuers
hereby irrevocably appoints the Domestic Administrative Agent and the Canadian
Administrative Agent, as applicable, to act on its behalf as hereunder and
under the other Loan Documents and authorizes the Domestic Administrative Agent
and the Canadian Administrative Agent, as applicable, to take such actions on
its behalf and to exercise such powers as are delegated to the Domestic
Administrative Agent and the Canadian Administrative Agent by the terms hereof
or thereof, together with such actions and powers as are reasonably incidental
thereto. The provisions of this Article are solely for the benefit of the
Domestic Administrative Agent, the Canadian Administrative Agent, the Lenders
and the L/C Issuers, and neither GGC nor any other Loan Party shall have rights
as a third party beneficiary of any of such provisions.

 

(b)                                 The Domestic Collateral Agent and the
Canadian Collateral Agent, as applicable, shall also act as the collateral
agent under the Collateral Documents, and each of the Lenders (in its
capacities as a Lender, potential Lender or Affiliate of a Lender under a Swap
Contract and potential Lender or Affiliate of a Lender under a Treasury
Management Agreement) and the L/C Issuers hereby irrevocably appoints and
authorizes the Domestic Collateral Agent and the Canadian Collateral Agent, as
applicable, to act as the collateral agent of such Lender and such

 

 

L/C
Issuer for purposes of acquiring, holding and enforcing any and all Liens on
Collateral granted by any of the Loan Parties to secure any of the Obligations
or the Canadian Obligations, as applicable, together with such powers and
discretion as are reasonably incidental thereto. In this connection, the
Domestic Collateral Agent or the Canadian Collateral Agent, as collateral agent
and any co-agents, sub-agents and attorneys-in-fact appointed by such Domestic
Collateral Agent or Canadian Collateral Agent pursuant to Section 10.05
for purposes of holding or enforcing any Lien on the applicable Collateral (or
any portion thereof) granted under the applicable Collateral Documents, or for
exercising any rights and remedies thereunder at the direction of the Domestic
Collateral Agent or the Canadian Collateral Agent, as applicable, shall be
entitled to the benefits of all provisions of this Article X and Article XI
(including Section 11.04(c), as though such Domestic Collateral
Agent, Canadian Collateral Agent, co-agents, sub-agents and attorneys-in-fact
were the Domestic Administrative Agent or Canadian Administrative Agent, as
applicable, under the Loan Documents) as if set forth in full herein with
respect thereto.

 

(c)                                  Each of the Lenders hereby acknowledges that
it has reviewed the Disposition and Dissolution Letter, and hereby authorizes
the Administrative Agents to execute the Disposition and Dissolution Letter.

 

(d)                                 (i)                                     To the extent
necessary, each Canadian Revolving Lender for itself and for all present and
future Affiliates of such Canadian Revolving Lender that are parties to any
Swap Contract or Treasury Management Agreement with any Canadian Loan Party,
the Canadian Swing Line Lender and each Canadian L/C Issuer (collectively, the “Canadian
Secured Parties”) hereby irrevocably appoints and authorizes the Canadian
Collateral Agent (and any successor acting as Canadian Collateral Agent) to act
as the person holding the power of attorney (in such capacity, the “Fondé de
pouvoir”) of each Canadian Secured Party, as contemplated under Article 2692
of the Civil Code of Québec, and to enter into, take and hold on their behalf,
and for their benefit, the hypothecs granted by any Canadian Loan Party in
favour of the Fondé de pouvoir under the Civil Code of Québec pursuant to any
Deed of Hypothec, and to exercise such powers and duties which are conferred
upon the Fondé de pouvoir under the Deeds of Hypothec. Moreover, without
prejudice to such appointment and authorization to act as the person holding
the power of attorney as aforesaid, each Canadian Revolving Lender for itself
and for all present and future Affiliates of such Canadian Revolving Lender
that are parties to any Swap Contract or Treasury Management Agreement with any
Canadian Loan Party, the Canadian Swing Line Lender and each Canadian L/C
Issuer hereby irrevocably appoints and authorizes the Canadian Collateral Agent
(and any successor acting as Canadian Collateral Agent) to act as agent or
mandatary and custodian for and on behalf of the Canadian Secured Parties to
hold and to be the sole registered holder of any bond which may be issued
or secured under the Deeds of Hypothec (in such capacity, the “Custodian”),
the whole notwithstanding Section 32 of An Act Respecting the Special
Powers of Legal Persons (Québec) or any other applicable law. In this respect, (i) records
shall be kept indicating the names and addresses of, and the pro rata portion
of the obligations and indebtedness secured by any Quebec Bond Pledge granted
in respect of any such bond and owing to each Canadian Secured Party, and (ii) each
Canadian Secured Party will be entitled to the benefits of any property
hypothecated under any Deeds of Hypothec and will participate in the proceeds
of realization of any such hypothecated property, the whole in accordance with
the terms hereof.

 

Each of the Fondé de pouvoir
and the Custodian shall (a) exercise, in accordance with the terms hereof
and applicable laws, all rights and remedies given to the Fondé de pouvoir and
the Custodian, as applicable, with respect to the property hypothecated under
any Deed of Hypothec, any bond issued or secured under any Deed of Hypothec and
any

 

 

Quebec Bond Pledge, (b) benefit from and
be subject to all provisions hereof with respect to the Canadian Collateral
Agent, mutatis mutandis, including, without limitation, all such provisions
with respect to the liability or responsibility to and indemnification by the
Canadian Secured Parties, and (c) be entitled to delegate from time to
time any of its powers or duties under any Deed of Hypothec, any bond issued
under any Deed of Hypothec and any Quebec Bond Pledge, and on such terms and
conditions as it may determine from time to time. Any person who becomes a
Canadian Secured Party shall be deemed to have consented to and confirmed: (i) the
Fondé de pouvoir as the person holding the power of attorney as aforesaid and
to have ratified, as of the date it becomes a Canadian Secured Party, all
actions taken by the Fondé de pouvoir as the person holding the power of
attorney as aforesaid and to have ratified, as of the date it becomes a
Canadian Secured Party, all actions taken by the Fondé de pouvoir in such
capacity; and (ii) the Custodian as the agent or mandatary and custodian
as aforesaid and to have ratified, as of the date it becomes a Canadian Secured
Party, all actions taken by the Custodian in such capacity.

 

(ii)                                  Moreover,
to the extent any Domestic Loan Party is required to grant security under the
laws of the Province of Quebec to the Domestic Collateral Agent, each Domestic
Lender for itself and for all present and future Affiliates of such Domestic
Lender that are parties to any Swap Contract or Treasury Management Agreement
with any Domestic Loan Party, and each Domestic L/C Issuer (collectively, the “Domestic
Secured Parties”) hereby irrevocably appoints and authorizes the Domestic
Collateral Agent (and any successor acting as Domestic Collateral Agent) to act
as the person holding the power of attorney (in such capacity, the “Domestic
fondé de pouvoir”) of each Domestic Secured Party, as contemplated under Article 2692
of the Civil Code of Québec, and to enter into, take and hold on their behalf,
and for their benefit, the hypothecs granted by any Domestic Loan Party in
favour of the Domestic fondé de pouvoir under the Civil Code of Québec pursuant
to any deed of hypothec, and to exercise such powers and duties which are
conferred upon the Domestic fondé de pouvoir under the deeds of hypothec. Moreover,
without prejudice to such appointment and authorization to act as the person
holding the power of attorney as aforesaid, each Domestic Lender for itself and
for all present and future Affiliates of such Domestic Lender that are parties
to any Swap Contract or Treasury Management Agreement with any Domestic Loan
Party, and each Domestic L/C Issuer hereby irrevocably appoints and authorizes
the Domestic Collateral Agent (and any successor acting as Domestic Collateral
Agent) to act as agent or mandatary and custodian for and on behalf of the
Domestic Secured Parties to hold and to be the sole registered holder of any
bond which may be issued or secured under the deeds of hypothec (in such
capacity, the “Domestic Custodian”), the whole notwithstanding Section 32
of An Act Respecting the Special Powers of Legal Persons (Québec) or any other
applicable law. In this respect, (i) records shall be kept indicating the
names and addresses of, and the pro rata portion of the obligations and
indebtedness secured by any Quebec bond pledge granted in respect of any such
bond and owing to each Domestic Secured Party, and (ii) each Domestic
Secured Party will be entitled to the benefits of any property hypothecated
under any deeds of hypothec and will participate in the proceeds of realization
of any such hypothecated property, the whole in accordance with the terms
hereof.

 

Each of the Domestic fondé
de pouvoir and the Domestic Custodian shall (a) exercise, in accordance
with the terms hereof and applicable laws, all rights and remedies given to the
Domestic fondé de pouvoir and the Domestic Custodian, as applicable, with
respect to the property hypothecated under any deed of hypothec, any bond
issued or

 

 

secured under any deed of hypothec and any Quebec
bond pledge, (b) benefit from and be subject to all provisions hereof with
respect to the Domestic Collateral Agent, mutatis mutandis, including, without
limitation, all such provisions with respect to the liability or responsibility
to and indemnification by the Domestic Secured Parties, and (c) be
entitled to delegate from time to time any of its powers or duties under any
deed of hypothec, any bond issued under any deed of hypothec and any Quebec
bond pledge, and on such terms and conditions as it may determine from
time to time. Any person who becomes a Domestic Secured Party shall be deemed
to have consented to and confirmed: (i) the Domestic fondé de pouvoir as
the person holding the power of attorney as aforesaid and to have ratified, as
of the date it becomes a Domestic Secured Party, all actions taken by the
Domestic fondé de pouvoir as the person holding the power of attorney as
aforesaid and to have ratified, as of the date it becomes a Domestic Secured
Party, all actions taken by the Domestic fondé de pouvoir in such capacity; and
(ii) the Domestic Custodian as the agent or mandatary and custodian as
aforesaid and to have ratified, as of the date it becomes a Domestic Secured
Party, all actions taken by the Domestic Custodian in such capacity.

 

10.02                 Rights as a Lender.

 

The
Persons serving as Domestic Administrative Agent or Canadian Administrative
Agent hereunder shall have the same rights and powers in its capacity as a
Lender as any other Lender and may exercise the same as though it were not
the Domestic Administrative Agent or the Canadian Administrative Agent and the
term “Lender” or “Lenders” shall, unless otherwise expressly indicated or
unless the context otherwise requires, include the Person serving as Domestic
Administrative Agent or Canadian Administrative Agent hereunder in its
individual capacity. Such Person and its Affiliates may accept deposits
from, lend money to, act as the financial advisor or in any other advisory
capacity for and generally engage in any kind of business with any Loan Party
or any Subsidiary or other Affiliate thereof as if such Person were not
Domestic Administrative Agent or Canadian Administrative Agent hereunder and
without any duty to account therefor to the Lenders.

 

10.03                 Exculpatory Provisions.

 

Neither
any Administrative Agent nor any Collateral Agent shall have any duties or
obligations except those expressly set forth herein and in the other Loan
Documents. Without limiting the generality of the foregoing, neither any
Administrative Agent nor any Collateral Agent:

 

(a)                                  shall be subject to any fiduciary or other
implied duties, regardless of whether a Default has occurred and is continuing;

 

(b)                                 shall have any duty to take any discretionary
action or exercise any discretionary powers, except discretionary rights and
powers expressly contemplated hereby or by the other Loan Documents that the
applicable Administrative Agent or the applicable Collateral Agent is required
to exercise as directed in writing by the requisite Lenders, as applicable; provided
that neither any Administrative Agent nor any Collateral Agent shall be
required to take any action that, in its opinion or the opinion of its counsel,
may expose such Administrative Agent or Collateral Agent to liability or
that is contrary to any Loan Document or applicable law; and

 

(c)                                  shall, except as expressly set forth herein
and in the other Loan

 

 

Documents,
have any duty to disclose, and shall be liable for the failure to disclose, any
information relating to any Loan Party or any of its Affiliates that is
communicated to or obtained by the Person serving as an Administrative Agent, a
Collateral Agent or any of their Affiliates in any capacity.

 

Neither
any Administrative Agent nor any Collateral Agent shall be liable for any
action taken or not taken by it (i) with the consent or at the request of
the requisite Lenders, as applicable or (ii) in the absence of its own
gross negligence or willful misconduct. Neither any Administrative Agent nor
any Collateral Agent shall be deemed to have knowledge of any Default unless
and until notice describing such Default is given to such Administrative Agent
or Collateral Agent by a Borrower, a Lender or an L/C Issuer.

 

Neither
any Administrative Agent nor any Collateral Agent shall be responsible for or
have any duty to ascertain or inquire into (i) any statement, warranty or
representation made in or in connection with this Agreement or any other Loan
Document, (ii) the contents of any certificate, report or other document
delivered hereunder or thereunder or in connection herewith or therewith, (iii) the
performance or observance of any of the covenants, agreements or other terms or
conditions set forth herein or therein or the occurrence of any Default, (iv) the
validity, enforceability, effectiveness or genuineness of this Agreement, any
other Loan Document or any other agreement, instrument or document or (v) the
satisfaction of any condition set forth in Article V or elsewhere
herein, other than to confirm receipt of items expressly required to be
delivered to such Administrative Agent or such Collateral Agent, as applicable.

 

10.04                 Reliance by Administrative
Agent.

 

Each
Administrative Agent and Collateral Agent shall be entitled to rely upon, and
shall not incur any liability for relying upon, any notice, request,
certificate, consent, statement, instrument, document or other writing
(including any electronic message, Internet or intranet website posting or
other distribution) believed by it to be genuine and to have been signed, sent
or otherwise authenticated by the proper Person. Each Administrative Agent and
Collateral Agent also may rely upon any statement made to it orally or by
telephone and believed by it to have been made by the proper Person, and shall
not incur any liability for relying thereon. In determining compliance with any
condition hereunder to the making of a Loan, the issuance of a Letter of
Credit, that by its terms must be fulfilled to the satisfaction of a Lender or
the applicable L/C Issuer, as applicable, the applicable Administrative Agent may presume
that such condition is satisfactory to such Lender or the applicable L/C Issuer
unless the applicable Administrative Agent shall have received notice to the
contrary from such Lender or such L/C Issuer prior to the making of such Loan
or the issuance of such Letter of Credit, as applicable. Each Administrative
Agent and Collateral Agent may consult with legal counsel (who may be
counsel for the Loan Parties), independent accountants and other experts
selected by it, and shall not be liable for any action taken or not taken by it
in accordance with the advice of any such counsel, accountants or experts.

 

10.05                 Delegation of Duties.

 

Each
Administrative Agent and each Collateral Agent may perform any and
all of its duties and exercise its rights and powers hereunder or under any
other Loan Document by or through any one or more sub-agents appointed by such
Administrative Agent or such Collateral Agent, as applicable. Each
Administrative Agent, each Collateral Agent and any such sub-agent may perform any
and all of its duties and exercise its rights and powers by or through their
respective Related Parties. The exculpatory provisions of this Article shall
apply to any such sub-

 

 

agent
and to the Related Parties of each Administrative Agent and/or each Collateral
Agent and any such sub-agent, and shall apply to their respective activities in
connection with the syndication of the credit facilities provided for herein as
well as activities as such Administrative Agent and such Collateral Agent.

 

10.06                 Resignation of
Administrative Agent.

 

Each
Administrative Agent may at any time give notice of its resignation to the
Lenders and the applicable Borrower. Upon receipt of any such notice of
resignation, the requisite Lenders shall have the right, in consultation with
the applicable Borrower, to appoint a successor, which, in the case of a
successor Domestic Administrative Agent, shall be a bank with an office in the
United States, or an Affiliate of any such bank with an office in the United
States or, in the case of a successor Canadian Administrative Agent, shall be a
bank with an office in Canada, or an Affiliate of any such bank with an office
in Canada. If no such successor shall have been so appointed by the requisite
Lenders and shall have accepted such appointment within thirty (30) days
after the retiring Administrative Agent gives notice of its resignation, then
the retiring Administrative Agent may on behalf of the applicable Lenders,
appoint a successor Domestic Administrative Agent and/or Canadian
Administrative Agent, as applicable, meeting the qualifications set forth
above; provided that if the applicable Administrative Agent shall notify
the applicable Borrower and the Lenders that no qualifying Person has accepted
such appointment, then such resignation shall nonetheless become effective in
accordance with such notice and (1) the retiring Administrative Agent
shall each be discharged from its duties and obligations hereunder and under
the other Loan Documents (except that in the case of any collateral security
held by the applicable Administrative Agent on behalf of the Lenders under any
of the Loan Documents, the retiring Administrative Agent shall continue to hold
such collateral security until such time as a successor Domestic Administrative
Agent or Canadian Administrative Agent, as applicable, is appointed) and (2) all
payments, communications and determinations provided to be made by, to or
through such Administrative Agent shall instead be made by or to each
applicable Lender directly, until such time as the requisite Lenders appoint a
successor Domestic Administrative Agent and/or Canadian Administrative Agent,
as applicable, as provided for above in this Section. Any successor to the
Canadian Administrative Agent must not be a non-resident of Canada for purposes
of the Canadian Tax Act. Upon the acceptance of a successor’s appointment as
Domestic Administrative Agent and/or Canadian Administrative Agent hereunder,
such successor shall succeed to and become vested with all of the rights,
powers, privileges and duties of the retiring (or retired) Domestic
Administrative Agent and/or Canadian Administrative Agent, as applicable, and
the retiring Domestic Administrative Agent and/or Canadian Administrative Agent
shall be discharged from all of their duties and obligations hereunder or under
the other Loan Documents (if not already discharged therefrom as provided above
in this Section). The fees payable by the Borrowers to a successor Domestic
Administrative Agent and/or Canadian Administrative Agent shall be the same as
those payable to its predecessor unless otherwise agreed between such Borrower
and such successor. After a retiring Domestic Administrative Agent and Canadian
Administrative Agent’s resignation hereunder and under the other Loan
Documents, the provisions of this Article X and Section 11.04
shall continue in effect for the benefit of such retiring Domestic
Administrative Agent and/or Canadian Administrative Agent, their sub-agents and
their respective Related Parties in respect of any actions taken or omitted to
be taken by any of them while the retiring Domestic Administrative Agent and/or
Canadian Administrative Agent was acting as Domestic Administrative Agent or
Canadian Administrative Agent, as applicable.

 

Any
resignation by Bank of America as Domestic Administrative Agent pursuant to
this Section shall also constitute its resignation as Domestic L/C Issuer
and Domestic Collateral

 

 

Agent.
Upon the acceptance of a successor’s appointment as Domestic Administrative
Agent hereunder, (a) such successor shall succeed to and become vested
with all of the rights, powers, privileges and duties of such retiring Domestic
L/C Issuer and Domestic Collateral Agent and (b) such retiring Domestic
L/C Issuer and Domestic Collateral Agent shall be discharged from all of their
respective duties and obligations hereunder or under the other Loan Documents.

 

Any
resignation by Bank of America as Canadian Administrative Agent pursuant to
this Section shall also constitute its resignation as Canadian L/C Issuer
and Canadian Collateral Agent. Upon the acceptance of a successor’s appointment
as Canadian Administrative Agent hereunder, (a) such successor shall
succeed to and become vested with all of the rights, powers, privileges and
duties of such retiring Canadian L/C Issuer and Canadian Collateral Agent and (b) such
retiring Canadian L/C Issuer and Canadian Collateral Agent shall be discharged
from all of their respective duties and obligations hereunder or under the
other Loan Documents.

 

10.07                 Non-Reliance on
Administrative Agent and Other Lenders.

 

Each
Lender and each L/C Issuer acknowledges that it has, independently and without
reliance upon the Domestic Administrative Agent, the Canadian Administrative
Agent or any other Lender or any of their Related Parties and based on such
documents and information as it has deemed appropriate, made its own credit
analysis and decision to enter into this Agreement. Each Lender and each L/C
Issuer also acknowledges that it will, independently and without reliance upon
the Domestic Administrative Agent, the Canadian Administrative Agent or any
other Lender or any of their Related Parties and based on such documents and
information as it shall from time to time deem appropriate, continue to make
its own decisions in taking or not taking action under or based upon this
Agreement, any other Loan Document or any related agreement or any document
furnished hereunder or thereunder.

 

10.08                 No Other Duties, Etc.

 

Anything
herein to the contrary notwithstanding, none of the bookrunners, arrangers,
syndication agents, documentation agents or co-agents shall have any powers,
duties or responsibilities under this Agreement or any of the other Loan
Documents, except in its capacity, as applicable, as an Administrative Agent, a
Collateral Agent, a Lender or an L/C Issuer hereunder.

 

10.09                 Administrative Agent May File
Proofs of Claim.

 

In
case of the pendency of any proceeding under any Debtor Relief Law or any other
judicial proceeding relative to any Loan Party, the Administrative Agents
(irrespective of whether the principal of any Loan or L/C Obligation shall then
be due and payable as herein expressed or by declaration or otherwise and
irrespective of whether the Administrative Agents shall have made any demand on
the applicable Borrower) shall be entitled and empowered, by intervention in
such proceeding or otherwise:

 

(a)                                  to file and prove a claim for the whole
amount of the principal and interest owing and unpaid in respect of the Loans,
L/C Obligations and all other Obligations that are owing and unpaid and to file
such other documents as may be necessary or advisable in order to have the
claims of the Lenders, the L/C Issuers, the Domestic Administrative Agent, the
Domestic Collateral Agent, the Canadian Administrative Agent and the Canadian
Collateral Agent (including any claim for the reasonable compensation,
expenses, disbursements and advances of the Lenders, the L/C

 

 

Issuers,
the Domestic Administrative Agent, the Domestic Collateral Agent, the Canadian
Administrative Agent and the Canadian Collateral Agent and their respective
agents and counsel and all other amounts due the Lenders, the L/C Issuers, the
Domestic Administrative Agent, the Domestic Collateral Agent, the Canadian Administrative
Agent and the Canadian Collateral Agent under Sections 2.03(i) and
(j), 2.09 and 11.04) allowed in such judicial proceeding;
and

 

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

 

and
any custodian, receiver, assignee, trustee, liquidator, sequestrator or other
similar official in any such judicial proceeding is hereby authorized by each
Lender and each L/C Issuer to make such payments to the applicable
Administrative Agent and, in the event that the applicable Administrative Agent
shall consent to the making of such payments directly to the Lenders and the
L/C Issuers to pay to the applicable Administrative Agent any amount due for
the reasonable compensation, expenses, disbursements and advances of such
Administrative Agent and its agents and counsel, and any other amounts due such
Administrative Agent under Sections 2.09 and 11.04.

 

Nothing
contained herein shall be deemed to authorize any Administrative Agent to authorize
or consent to or accept or adopt on behalf of any Lender or any L/C Issuer any
plan of reorganization, arrangement, adjustment or composition affecting the
Obligations or the Canadian Obligations, as appropriate or the rights of any
Lender or any L/C Issuer or to authorize any Administrative Agent to vote in
respect of the claim of any Lender in any such proceeding.

 

10.10                 Collateral and Guaranty
Matters.

 

The
Lenders and the L/C Issuers irrevocably authorize the Domestic Administrative
Agent, the Domestic Collateral Agent, the Canadian Administrative Agent and the
Canadian Collateral Agent, each at its option and in its discretion,

 

(a)                                  to release any Lien on any property granted
to or held by the Domestic Collateral Agent under any Loan Document (i) upon
termination of the Aggregate Domestic Revolving Commitments and payment in full
of all Obligations (other than contingent indemnification obligations) and the
expiration or termination of all Domestic Letters of Credit, (ii) that is
transferred or to be transferred as part of or in connection with any
Disposition permitted hereunder or under any other Loan Document or any
Involuntary Disposition, or (iii) as approved in accordance with Section 11.01;

 

(b)                                 to release any Lien on any property granted to
or held by the Canadian Collateral Agent under any Loan Document (i) upon
termination of the Aggregate Canadian Revolving Commitments and payment in full
of all Canadian Obligations (other than contingent indemnification obligations)
and the expiration or termination of all Canadian Letters of Credit, (ii) that
is transferred or to be transferred as part of or in connection with any
Disposition permitted hereunder or under any other Loan Document or any
Involuntary Disposition, or (iii) as approved in accordance with Section 11.01;

 

(c)                                  to release any Guarantor from its obligations
under the Guaranty if such Person ceases to be a Subsidiary as a result of a
transaction permitted hereunder; and

 

(d)                                 to subordinate any Lien on any property
granted to or held by the

 

 

Domestic
Collateral Agent or the Canadian Collateral Agent under any Loan Document to
the holder of any Lien on such property that is permitted by Section 8.01(i).

 

The
Domestic Collateral Agent and the Canadian Collateral Agent hereby agree to
take such action as is reasonably necessary to release, at the expense of the
applicable Borrowers, its lien on any Domestic Collateral or Canadian
Collateral, as applicable, that is sold or otherwise transferred by a Loan
Party to a Person not a Loan Party pursuant to a transaction permitted
hereunder.

 

ARTICLE XI

MISCELLANEOUS

 

11.01                 Amendments, Etc.

 

No
amendment or waiver of any provision of this Agreement or any other Loan
Document, and no consent to any departure by any Borrower or any other Loan Party
therefrom, shall be effective unless in writing signed by the Required Lenders
and the applicable Borrower or the applicable Loan Party, as the case may be,
and acknowledged by the Administrative Agents, and each such waiver or consent
shall be effective only in the specific instance and for the specific purpose
for which given; provided, however, that no such amendment,
waiver or consent shall:

 

(a)                                  extend or increase the Commitment of any
Lender (or reinstate any Commitment terminated pursuant to Section 9.02)
without the written consent of such Lender directly affected thereby;

 

(b)                                 postpone any date fixed by this Agreement or
any other Loan Document for any payment of principal (excluding mandatory
prepayments), interest, fees or other amounts due to the Lenders (or any of
them) or any scheduled or mandatory reduction of any Commitments hereunder or
under any other Loan Document without the written consent of each Lender
directly affected thereby;

 

(c)                                  reduce the principal of, or the rate of
interest specified herein on, any Loan, L/C Borrowing, or (subject to clause (v) of
the second proviso to this Section 11.01) any fees or other amounts
payable hereunder or under any other Loan Document without the written consent
of each Lender directly affected thereby; provided, however, that
only the consent of the Required Lenders shall be necessary to amend the
definition of “Default Rate” or to waive any obligation of the Borrowers to pay
interest or Letter of Credit fees at the Default Rate;

 

(d)                                 change Section 2.13 or Section 9.03
in a manner that would alter the pro rata sharing of payments required thereby
without the written consent of each Lender directly affected thereby;

 

(e)                                  amend Section 1.05 or the
definition of “Alternative Currency” without the written consent of each Lender
directly affected thereby;

 

(f)                                    (i) change any provision of this Section or
the definition of “Required Lenders”, (ii) change the definition of “Required
Domestic Lenders”, “Required Domestic Revolving Lenders”, “Required Canadian
Lenders”, “Required Canadian Revolving Lenders” or “Required Term Loan Lenders”
without the written consent of

 

 

each
Lender directly affected thereby or (iii) change any other provision
hereof specifying the number or percentage of Lenders required to amend, waive
or otherwise modify any rights hereunder or make any determination or grant any
consent hereunder without the written consent of each Lender directly affected
thereby;

 

(g)                                 except in connection with a Disposition
permitted under Section 8.05, release all or substantially all of
the Collateral without the written consent of each Lender directly affected
thereby;

 

(h)                                 release any Borrower or, except in connection
with a transaction permitted under Section 8.04 or Section 8.05,
all or substantially all of the Guarantors without the written consent of each
Lender directly affected thereby;

 

(i)                                     without the consent of the Required Domestic
Revolving Lenders, (i) waive any Default or Event of Default under Section 5.02
for purposes of any Domestic Revolving Borrowing or Domestic L/C Credit
Extension, (ii) amend, waive, discharge or terminate Section 2.01(a)(i),
2.02(a)(i), 2.03, 2.05(b)(i)(A), (b)(ii), (iii),
(iv), (v), or (vi) or any term, covenant or agreement
contained in Article VIII or Article IX or (iii) amend
or change any provision of this Section 11.01(i);

 

(j)                                     without the consent of the Required Canadian
Revolving Lenders, (i) waive any Default or Event of Default under Section 5.02
for purposes of any Canadian Revolving Borrowing or Canadian L/C Credit
Extension, (ii) amend, waive, discharge or terminate Section 2.01(a)(ii),
2.02(a)(ii), 2.03, 2.05(b)(i)(B), (b)(ii), (iii),
(iv), (v), or (vi) or any term, covenant or agreement
contained in Article VIII or Article IX or (iii) amend
or change any provision of this Section 11.01(j); or

 

(k)                                  without the consent of Required Term Loan
Lenders (i) amend, waive, discharge or terminate Section 2.05(b)(vi) so
as to alter the manner of application of proceeds of any mandatory prepayment
required by Section 2.05(b)(ii), (iii), (iv), (v) or
(vi) hereof or (ii) amend or change any provision of Section 9.04
or this Section 11.01(k);

 

and,
provided  further, that (i) no amendment, waiver or consent
shall, unless in writing and signed by the effected L/C Issuer in addition to
the Lenders required above, affect the rights or duties of such L/C Issuer
under this Agreement or any Issuer Document relating to any Letter of Credit
issued or to be issued by it; (ii) no amendment, waiver or consent shall,
unless in writing and signed by the Domestic Administrative Agent or the
Domestic Collateral Agent, as applicable, in addition to the Lenders required
above, affect the rights or duties of the Domestic Administrative Agent or the
Domestic Collateral Agent under this Agreement or any other Loan Document; (iii) no
amendment, waiver or consent shall, unless in writing and signed by the
Canadian Administrative Agent or the Canadian Collateral Agent, as applicable,
in addition to the Lenders required above, affect the rights or duties of the
Canadian Administrative Agent or the Canadian Collateral Agent, as applicable,
under this Agreement or any other Loan Document; (iv) no amendment, waiver
or consent shall, unless in writing and signed by the Canadian Swing Line
Lender in addition to the Lenders required above, affect the rights or duties
of the Canadian Swing Line Lender under this Agreement or any other Loan
Document; and (v) the Administrative Agent Fee Letter may be amended,
or rights or privileges thereunder waived, in a writing executed only by the
parties thereto. Notwithstanding anything to the contrary herein, no Defaulting
Lender shall have any right to approve or disapprove any amendment, waiver or
consent hereunder, except that the Domestic Revolving Commitment, the Canadian
Revolving

 

 

Commitment
or the Term Loan Commitment of such Lender may not be increased or
extended without the consent of such Lender.

 

11.02                 Notices; Effectiveness;
Electronic Communication.

 

(a)                                  Notices Generally. Except in the case of notices and other
communications expressly permitted to be given by telephone (and except as
provided in subsection (b) below), all notices and other
communications provided for herein shall be in writing and shall be delivered
by hand or overnight courier service, mailed by certified or registered mail or
sent by telecopier as follows, and all notices and other communications
expressly permitted hereunder to be given by telephone shall be made to the
applicable telephone number, as follows:

 

(i)                                     if to GGC or any other Loan Party, an
Administrative Agent, a Collateral Agent, an L/C Issuer or the Canadian Swing
Line Lender, to the address, telecopier number, electronic mail address or
telephone number specified for such Person on Schedule 11.02; and

 

(ii)                                  if to any other Lender, to the address,
telecopier number, electronic mail address or telephone number specified in its
Administrative Questionnaire.

 

Notices
sent by hand or overnight courier service, or mailed by certified or registered
mail, shall be deemed to have been given when received; notices sent by
telecopier shall be deemed to have been given when sent (except that, if not
given during normal business hours for the recipient, shall be deemed to have
been given at the opening of business on the next business day for the
recipient). Notices delivered through electronic communications to the extent
provided in subsection (b) below, shall be effective as provided in
such subsection (b).

 

(b)                                 Electronic Communications. Notices and other communications to the
Lenders and the L/C Issuers hereunder may be delivered or furnished by
electronic communication (including e-mail and Internet or intranet websites)
pursuant to procedures approved by the applicable Administrative Agent; provided
that the foregoing shall not apply to notices to any Lender or any L/C Issuer
pursuant to Article II if such Lender or such L/C Issuer, as
applicable, has notified the applicable Administrative Agent that it is
incapable of receiving notices under such Article by electronic communication.
The applicable Administrative Agent or GGC may, in its discretion, agree to
accept notices and other communications to it hereunder by electronic
communications pursuant to procedures approved by it; provided that
approval of such procedures may be limited to particular notices or
communications.

 

Unless
the applicable Administrative Agent otherwise prescribes, (i) notices and
other communications sent to an e-mail address shall be deemed received upon
the sender’s receipt of an acknowledgement from the intended recipient (such as
by the “return receipt requested” function, as available, return e-mail or
other written acknowledgement), provided that if such notice or other
communication is not sent during the normal business hours of the recipient, such
notice or communication shall be deemed to have been sent at the opening of
business on the next business day for the recipient, and (ii) notices or
communications posted to an Internet or intranet website shall be deemed
received upon the deemed receipt by the intended recipient at its e-mail
address as described in the foregoing clause (i) of notification that
such notice or communication is available and identifying the website address
therefor.

 

(c)                                  THE PLATFORM IS PROVIDED “AS IS” AND “AS
AVAILABLE.”  THE AGENT PARTIES (AS
DEFINED BELOW) DO NOT WARRANT THE ACCURACY OR

 

 

COMPLETENESS
OF THE BORROWER MATERIALS OR THE ADEQUACY OF THE PLATFORM, AND EXPRESSLY
DISCLAIM LIABILITY FOR ERRORS IN OR OMISSIONS FROM THE BORROWER MATERIALS. NO
WARRANTY OF ANY KIND, EXPRESS, IMPLIED OR STATUTORY, INCLUDING ANY WARRANTY OF
MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, NON-INFRINGEMENT OF THIRD
PARTY RIGHTS OR FREEDOM FROM VIRUSES OR OTHER CODE DEFECTS, IS MADE BY ANY
AGENT PARTY IN CONNECTION WITH THE BORROWER MATERIALS OR THE PLATFORM. In no
event shall any Administrative Agent, any Collateral Agent or any of its
Related Parties (collectively, the “Agent Parties”) have any liability
to the Borrowers, any Lender, any L/C Issuer, or any other Person for losses,
claims, damages, liabilities or expenses of any kind (whether in tort, contract
or otherwise) arising out of any Borrower’s, or any Administrative Agent’s
transmission of Borrower Materials through the Internet, except to the extent
that such losses, claims, damages, liabilities or expenses result from the
gross negligence or willful misconduct of such Agent Party; provided, however,
that in no event shall any Agent Party have any liability to any Borrower, any
Lender, any L/C Issuer, or any other Person for indirect, special, incidental,
consequential or punitive damages (as opposed to direct or actual damages).

 

(d)                                 Change of Address, Etc. Any Borrower, any Administrative Agent, any
Collateral Agent or any L/C Issuer may change its address, telecopier or
telephone number for notices and other communications hereunder by notice to
the other parties hereto. Each Lender may change its address, telecopier
or telephone number for notices and other communications hereunder by notice to
the applicable Borrower, the applicable Administrative Agent or the applicable
L/C Issuer. In addition, each Lender agrees to notify the applicable
Administrative Agent from time to time to ensure that such Administrative Agent
has on record (i) an effective address, contact name, telephone number,
telecopier number and electronic mail address to which notices and other
communications may be sent and (ii) accurate wire instructions for
such Lender.

 

(e)                                  Reliance by Administrative Agents, L/C
Issuers and Lenders. Each
Administrative Agent, each Collateral Agent, each L/C Issuer and the Lenders
shall be entitled to rely and act upon any notices (including telephonic Loan
Notices) purportedly given by or on behalf of any Loan Party even if (i) such
notices were not made in a manner specified herein, were incomplete or were not
preceded or followed by any other form of notice specified herein, or (ii) the
terms thereof, as understood by the recipient, varied from any confirmation
thereof. The Borrowers shall indemnify each Administrative Agent, each
Collateral Agent, each L/C Issuer, each Lender and the Related Parties of each
of them from all losses, costs, expenses and liabilities resulting from the
reliance by such Person on each notice purportedly given by or on behalf of a
Borrower. All telephonic notices to and other telephonic communications with
each Administrative Agent or each Collateral Agent may be recorded by such
Administrative Agent or such Collateral Agent, as applicable, and each of the
parties hereto hereby consents to such recording.

 

11.03                 No Waiver; Cumulative
Remedies.

 

No
failure by any Lender, any L/C Issuer, any Administrative Agent or any
Collateral Agent to exercise, and no delay by any such Person in exercising,
any right, remedy, power or privilege hereunder shall operate as a waiver
thereof; nor shall any single or partial exercise of any right, remedy, power
or privilege hereunder preclude any other or further exercise thereof or the
exercise of any other right, remedy, power or privilege. The rights, remedies,
powers and privileges herein provided are cumulative and not exclusive of any
rights, remedies, powers and privileges provided by law.

 

 

11.04                 Expenses; Indemnity; Damage
Waiver.

 

(a)                                  Costs and Expenses. The Loan Parties shall pay (i) all
reasonable out-of-pocket expenses incurred by the Administrative Agents, the
Collateral Agents and their Affiliates (including the reasonable fees, charges
and disbursements of counsel for the Administrative Agents and the Collateral
Agents), in connection with the syndication of the credit facilities provided
for herein, the preparation, negotiation, execution, delivery and
administration of this Agreement and the other Loan Documents or any
amendments, modifications or waivers of the provisions hereof or thereof (whether
or not the transactions contemplated hereby or thereby shall be consummated), (ii) all
reasonable out-of-pocket expenses incurred by an L/C Issuer in connection with
the issuance, amendment, renewal or extension of any Letter of Credit or any
demand for payment thereunder and (iii) all out-of-pocket expenses
incurred by any Administrative Agent, any Collateral Agent, any Lender or any
L/C Issuer (including the reasonable fees, charges and disbursements of any
counsel for any Administrative Agent, any Collateral Agent, any Lender or any
L/C Issuer), and shall pay all reasonable fees and time charges for attorneys
who may be employees of any Administrative Agent, any Lender or any L/C
Issuer, in connection with the enforcement or protection of its rights (A) in
connection with this Agreement and the other Loan Documents, including its
rights under this Section, or (B) in connection with the Loans made or
Letters of Credit issued hereunder, including all such out-of-pocket expenses
incurred during any workout, restructuring or negotiations in respect of such
Loans or Letters of Credit.

 

(b)                                 Indemnification by the Loan Parties. The Loan Parties shall indemnify each
Administrative Agent (and any sub-agent thereof), each Collateral Agent (and
any sub-agent thereof), each Lender, each L/C Issuer and each Related Party of
any of the foregoing Persons (each such Person being called an “Indemnitee”)
against, and hold each Indemnitee harmless from, any and all losses, claims,
damages, liabilities and related expenses (including the reasonable fees,
charges and disbursements of any counsel for any Indemnitee), other than Taxes,
and shall indemnify and hold harmless each Indemnitee from all reasonable fees
and time charges and disbursements for attorneys who may be employees of
any Indemnitee, incurred by any Indemnitee or asserted against any Indemnitee
by any third party or by GGC or any other Loan Party arising out of, in
connection with, or as a result of (i) the execution or delivery of this
Agreement, any other Loan Document or any agreement or instrument contemplated
hereby or thereby, the performance by the parties hereto of their respective
obligations hereunder or thereunder, the consummation of the transactions
contemplated hereby or thereby, or, in the case of the Domestic Administrative
Agent (and any sub-agent thereof) and its Related Parties only, the Domestic
Collateral Agent (and any sub-agent thereof) and its Related Parties only, the
Canadian Administrative Agent (and any sub-agent thereof) and its Related
Parties only and the Canadian Collateral Agent (and any sub-agent thereof) and
its Related Parties only, the administration of this Agreement and the other
Loan Documents and/or the syndication of the facilities contemplated by this
Agreement, (ii) any Loan or Letter of Credit or the use or proposed use of
the proceeds therefrom (including any refusal by an L/C Issuer to honor a
demand for payment under a Letter of Credit if the documents presented in
connection with such demand do not strictly comply with the terms of such
Letter of Credit), (iii) any actual or alleged presence or release of
Hazardous Materials on or from any property owned or operated by a Loan Party
or any of its Subsidiaries, or any Environmental Liability related in any way
to a Loan Party or any of its Subsidiaries, or (iv) any actual or
prospective claim, litigation, investigation or proceeding relating to any of
the foregoing, whether based on contract, tort or any other theory, whether
brought by a third party or by GGC or any other Loan Party, and regardless of
whether any Indemnitee is a party thereto, in all cases, whether or not caused
by or arising, in whole or in part,

 

 

out
of the comparative, contributory or sole negligence of the Indemnitee; provided
that such indemnity shall not, as to any Indemnitee, be available to the extent
that such losses, claims, damages, liabilities or related expenses (x) are
determined by a court of competent jurisdiction by final and nonappealable
judgment to have resulted from the gross negligence or willful misconduct of
such Indemnitee or (y) result from a claim brought by GGC or any other
Loan Party against an Indemnitee for breach in bad faith of such Indemnitee’s
obligations hereunder or under any other Loan Document, if GGC or such Loan Party
has obtained a final and nonappealable judgment in its favor on such claim as
determined by a court of competent jurisdiction.

 

(c)                                  Reimbursement by Lenders. To the extent that the Loan Parties for any
reason fail to indefeasibly pay any amount required under subsection (a) or (b) of
this Section to be paid by them to any Administrative Agent (or any sub-agent
thereof), any Collateral Agent (or any sub-agent thereof), any L/C Issuer or
any Related Party of any of the foregoing, each Lender severally agrees to pay
to the applicable Administrative Agent (or any such sub-agent), the applicable
Collateral Agent (or any sub-agent thereof), the applicable L/C Issuer or such
Related Party, as the case may be, such Lender’s Applicable Percentage
(determined as of the time that the applicable unreimbursed expense or
indemnity payment is sought) of such unpaid amount; provided that the
unreimbursed expense or indemnified loss, claim, damage, liability or related
expense, as the case may be, was incurred by or asserted against the
applicable Administrative Agent (or any sub-agent thereof), the applicable
Collateral Agent (or any sub-agent thereof) or the applicable L/C Issuer in its
capacity as such, or against any Related Party of any of the foregoing acting
for the applicable Administrative Agent (or any sub-agent thereof), the
applicable Collateral Agent (or any sub-agent thereof) or the applicable L/C
Issuer in connection with such capacity. The obligations of the Lenders under
this subsection (c) are subject to the provisions of Section 2.12(d).

 

(d)                                 Waiver of Consequential Damages, Etc. To the fullest extent permitted by applicable
law, no Loan Party shall assert, and each Loan Party hereby waives, any claim
against any Indemnitee, on any theory of liability, for special, indirect,
consequential or punitive damages (as opposed to direct or actual damages)
arising out of, in connection with, or as a result of, this Agreement, any
other Loan Document or any agreement or instrument contemplated hereby, the
transactions contemplated hereby or thereby, any Loan or Letter of Credit or
the use of the proceeds thereof. No Indemnitee referred to in subsection (b) above
shall be liable for any damages arising from the use by unintended recipients
of any information or other materials distributed by it through
telecommunications, electronic or other information transmission systems in
connection with this Agreement or the other Loan Documents or the transactions
contemplated hereby or thereby.

 

(e)                                  Payments. All amounts due under this Section shall be payable not later
than ten (10) Business Days after demand therefor.

 

(f)                                    Survival. The agreements in this Section 11.04 shall survive
the resignation of the Domestic Administrative Agent, the Domestic Collateral
Agent, the Canadian Administrative Agent, the Canadian Collateral Agent, any
L/C Issuer and the Canadian Swing Line Lender, the replacement of any Lender,
the termination of the Commitments and the repayment, satisfaction or discharge
of all the other Obligations.

 

11.05                 Payments Set Aside.

 

To
the extent that any payment by or on behalf of any Loan Party is made to any

 

 

Administrative
Agent, any L/C Issuer or any Lender, or any Administrative Agent, any
Collateral Agent, any L/C Issuer or any Lender exercises its right of setoff,
and such payment or the proceeds of such setoff or any part thereof is
subsequently invalidated, declared to be fraudulent or preferential, set aside
or required (including pursuant to any settlement entered into by such
Administrative Agent, such Collateral Agent, such L/C Issuer or such Lender in
its discretion) to be repaid to a trustee, receiver or any other party, in
connection with any proceeding under any Debtor Relief Law or otherwise, then (a) to
the extent of such recovery, the obligation or part thereof originally
intended to be satisfied shall be revived and continued in full force and
effect as if such payment had not been made or such setoff had not occurred,
and (b) each Lender and each L/C Issuer severally agrees to pay to the applicable
Administrative Agent upon demand its applicable share (without duplication) of
any amount so recovered from or repaid by such Administrative Agent plus
interest thereon from the date of such demand to the date such payment is made
at a rate per annum equal to the Federal Funds Rate from time to time in effect.
The obligations of the Lenders and the L/C Issuers under clause (b) of
the preceding sentence shall survive the payment in full of the Obligations and
the termination of this Agreement.

 

11.06                 Successors and Assigns.

 

(a)                                  Successors and Assigns Generally. The provisions of this Agreement and the
other Loan Documents shall be binding upon and inure to the benefit of the
parties hereto and thereto and their respective successors and assigns permitted
hereby, except that neither GGC nor any other Loan Party may assign or
otherwise transfer any of its rights or obligations hereunder or thereunder
without the prior written consent of the applicable Administrative Agent and
each Lender and no Lender may assign or otherwise transfer any of its
rights or obligations hereunder except (i) to an Eligible Assignee in
accordance with the provisions of subsection (b) of this Section, (ii) by
way of participation in accordance with the provisions of subsection (d) of
this Section or (iii) by way of pledge or assignment of a security
interest subject to the restrictions of subsection (f) of this Section (and
any other attempted assignment or transfer by any party hereto shall be null
and void). Nothing in this Agreement, expressed or implied, shall be construed
to confer upon any Person (other than the parties hereto, their respective
successors and assigns permitted hereby, Participants to the extent provided in
subsection (d) of this Section and, to the extent expressly
contemplated hereby, the Related Parties of each of the Domestic Administrative
Agent, the Domestic Collateral Agent, the Canadian Administrative Agent, the
Canadian Collateral Agent, the L/C Issuers and the Lenders) any legal or
equitable right, remedy or claim under or by reason of this Agreement.

 

(b)                                 Assignments by Lenders. Any Lender may at any time assign to
one or more Eligible Assignees all or a portion of its rights and obligations
under this Agreement and the other Loan Documents (including all or a portion
of its Domestic Revolving Commitment, Canadian Revolving Commitment, Term Loan
Commitment and the Loans (including for purposes of this subsection (b),
participations in L/C Obligations) at the time owing to it); provided
that any such assignment shall be subject to the following conditions:

 

(i)                                     Minimum Amounts.

 

(A)                              in the case of an assignment of the entire remaining amount of the
assigning Lender’s Domestic Revolving Commitment, Canadian Revolving Commitment
or Term Loan Commitment and the Loans at the time owing to it or in the case of
an assignment to a Lender or an Affiliate of a Lender or an Approved Fund, no
minimum amount need be assigned;

 

 

(B)                                in any case not described in subsection (b)(i)(A) of this
Section, the aggregate amount of the Domestic Revolving Commitment, the
Canadian Revolving Commitment or the Term Loan Commitment (which for this
purpose includes Loans outstanding thereunder) or, if the Domestic Revolving
Commitment, the Canadian Revolving Commitment or the Term Loan Commitment is
not then in effect, the principal outstanding balance of the Loans of the
assigning Lender subject to each such assignment, determined as of the date the
Assignment and Assumption with respect to such assignment is delivered to the
applicable Administrative Agent or, if “Trade Date” is specified in the
Assignment and Assumption, as of the Trade Date, shall not be less than
US$5,000,000, in the case of an assignment of Domestic Revolving Loans, and
CAN$5,000,000, in the case of an assignment of Canadian Revolving Loans, or
US$1,000,000, in the case of an assignment of the Term Loan, unless the respective Administrative Agent
and, so long as no Event of Default has occurred and is continuing, GGC
otherwise consents (each such consent not to be unreasonably withheld or
delayed); provided, however, that concurrent assignments to
members of an Assignee Group and concurrent assignments from members of an
Assignee Group to a single Eligible Assignee (or to an Eligible Assignee and
members of its Assignee Group) will be treated as a single assignment for
purposes of determining whether such minimum amount has been met;

 

(ii)                                  Proportionate Amounts. Each partial assignment shall be made as an
assignment of a proportionate part of all the assigning Lender’s rights
and obligations under this Agreement with respect to the Loans or Commitment
assigned, except that this clause (ii) shall not (A) apply to
rights in respect of Canadian Swing Line Loans or (B) prohibit any Lender
from assigning all or a portion of its rights and obligations in respect of its
Domestic Revolving Commitment (and the related Revolving Loans thereunder) and
its Canadian Revolving Commitment (and the related Revolving Loans thereunder)
on a non-pro rata basis (it being understood and agreed that any assignment of
the Term Loan shall be on a pro rata basis);

 

(iii)                               Required Consents. No consent shall be required for any
assignment except to the extent required by subsection (b)(i)(B) of
this Section and, in addition:

 

(A)                              the consent of GGC (such consent not to be unreasonably withheld or
delayed) shall be required unless (1) an Event of Default has occurred and
is continuing at the time of such assignment or (2) such assignment is to
a Lender, an Affiliate of a Lender or an Approved Fund; provided
however, with respect to any assignment of a Canadian Revolving Commitment to a
Lender, an Affiliate of a Lender or an Approved Fund that is a Foreign Lender,
GGC shall have the right to consent to any assignment of such Canadian
Revolving Commitment to such Person unless an Event of Default has occurred and
is continuing;

 

(B)                                the consent of the Domestic Administrative Agent (such consent not to
be unreasonably withheld or delayed) shall be required for assignments in
respect of (i) Domestic Revolving Commitments if such assignment is to a
Person that is not a Lender with a Domestic Revolving Commitment, an Affiliate
of such Lender or an Approved Fund with respect to such Lender or (ii) any
Term Loan to a Person that is not a Lender, an Affiliate of a Lender or an

 

 

Approved
Fund;

 

(C)                                the consent of the Canadian Administrative Agent (such consent not to
be unreasonably withheld or delayed) shall be required for assignments in
respect of (i) the Canadian Revolving Commitments if such assignment is to
a Person that is not a Lender with a Canadian Revolving Commitment, an
Affiliate of such Lender or an Approved Fund with respect to such Lender; and

 

(D)                               the consent of the Domestic L/C Issuers or the Canadian L/C Issuers
shall be required for any assignment that increases the obligation of the
assignee to participate in exposure under one or more Domestic Letters of
Credit or Canadian Letters of Credit, respectively (whether or not such Letters
of Credit are then outstanding).

 

(iv)                              Canadian Swing Line Lender. The Canadian Swing Line Lender must assign
all of its Canadian Swing Line Commitment (rather than just a portion thereof)
if the Canadian Swing Line elects to make any assignment of the Canadian Swing
Line Commitment

 

(v)                                 Assignment and Assumption. The parties to each assignment shall
execute and deliver to the applicable Administrative Agent an Assignment and
Assumption, together with a processing and recordation fee, if any, required as
set forth in Schedule 11.06; provided, however, that
the applicable Administrative Agent may, in its sole discretion, elect to waive
such processing and recordation fee in the case of any assignment. The
assignee, if it shall not be a Lender, shall deliver to the applicable
Administrative Agent an Administrative Questionnaire.

 

(vi)                              No Assignment to Borrowers. No such assignment shall be made to the
Borrowers or any of the Borrowers’ Affiliates or Subsidiaries.

 

(ivii)                        No Assignment to Natural Persons. No such assignment shall be made to a
natural person.

 

Subject
to acceptance and recording thereof by the applicable Administrative Agent
pursuant to subsection (c) of this Section, from and after the
effective date specified in each Assignment and Assumption, the assignee
thereunder shall be a party to this Agreement and, to the extent of the
interest assigned by such Assignment and Assumption, have the rights and
obligations of a Lender under this Agreement, and the assigning Lender
thereunder shall, to the extent of the interest assigned by such Assignment and
Assumption, be released from its obligations under this Agreement (and, in the
case of an Assignment and Assumption covering all of the assigning Lender’s
rights and obligations under this Agreement, such Lender shall cease to be a
party hereto but shall continue to be entitled to the benefits of Sections
3.01, 3.04, 3.05 and 11.04 with respect to facts and
circumstances occurring prior to the effective date of such assignment). Upon
request, the applicable Borrower (at its expense) shall execute and deliver a
Note to the assignee Lender. Any assignment or transfer by a Lender of rights
or obligations under this Agreement that does not comply with this subsection shall
be treated for purposes of this Agreement as a sale by such Lender of a
participation in such rights and obligations in accordance with Section 11.06(d).

 

(c)                                  Register. The applicable Administrative Agent, acting solely for this purpose
as an agent of the applicable Borrower, shall maintain a copy of each
Assignment and Assumption

 

 

delivered
to it and a register for the recordation of the names and addresses of the
Lenders, and the Commitments of, and principal amounts of the Loans and L/C
Obligations owing to, each such Lender pursuant to the terms hereof from time
to time (each, a “Register”). The entries in each Register shall be
conclusive, and the Borrowers, the Administrative Agents and the Lenders may treat
each Person whose name is recorded in such Register pursuant to the terms
hereof as a Lender hereunder for all purposes of this Agreement,
notwithstanding notice to the contrary. Each Register shall be available for
inspection by each of the Borrowers and the L/C Issuers at any reasonable time
and from time to time upon reasonable prior notice.

 

(d)                                 Participations. Any Lender may at any time, without
the consent of, or notice to, the applicable Borrower or the applicable
Administrative Agent, sell participations to any Person (other than a natural
person or the Borrowers or any of the Borrowers’ Affiliates or Subsidiaries or
any Person identified on Schedule 1.01(d)) (each, a “Participant”)
in all or a portion of such Lender’s rights and/or obligations under this
Agreement (including all or a portion of its Domestic Revolving Commitment, the
Canadian Revolving Commitment, the Term Loan Commitment and/or the Loans
(including such Lender’s participations in L/C Obligations) owing to it); provided
that (i) such Lender’s obligations under this Agreement shall remain
unchanged, (ii) such Lender shall remain solely responsible to the other
parties hereto for the performance of such obligations and (iii) the
Borrowers, the applicable Administrative Agent, the Lenders and the L/C Issuers
shall continue to deal solely and directly with such Lender in connection with
such Lender’s rights and obligations under this Agreement. Any agreement or
instrument pursuant to which a Lender sells such a participation shall provide
that such Lender shall retain the sole right to enforce this Agreement and to
approve any amendment, modification or waiver of any provision of this
Agreement; provided that such agreement or instrument may provide
that such Lender will not, without the consent of the Participant, agree to any
amendment, waiver or other modification described in the first proviso to Section 11.01
that affects such Participant. Subject to subsection (e) of this
Section, GGC agrees that each Participant shall be entitled to the benefits of Sections 3.01,
3.04 and 3.05 to
the same extent as if it were a Lender and had acquired its interest by
assignment pursuant to subsection (b) of this Section. To the extent
permitted by law, each Participant also shall be entitled to the benefits of Section 11.08 as though it were a Lender, provided
such Participant agrees to be subject to Section 2.13 as though it
were a Lender.

 

(e)                                  Limitations upon Participant Rights. A Participant shall not be entitled to
receive any greater payment under Section 3.01 or 3.04 than the applicable Lender would have
been entitled to receive with respect to the participation sold to such
Participant, unless the sale of the participation to such Participant is made
with the Borrower’s prior written consent. A Participant that would be a
Foreign Lender if it were a Lender shall not be entitled to the benefits of Section 3.01
unless the applicable Borrower is notified of the participation sold to such
Participant and such Participant agrees, for the benefit of the Borrowers, to
comply with Section 3.01(e) as though it were a Lender.

 

(f)                                    Certain Pledges. Any Lender may at any time pledge or
assign a security interest in all or any portion of its rights under this
Agreement (including under its Note, if any) to secure obligations of such
Lender, including any pledge or assignment to secure obligations to a Federal
Reserve Bank; provided that no such pledge or assignment shall release
such Lender from any of its obligations hereunder or substitute any such
pledgee or assignee for such Lender as a party hereto.

 

(g)                                 Electronic Execution of Assignments. The words “execution,” “signed,” “signature,”
and words of like import in any Assignment and Assumption shall be deemed to
include electronic signatures or the keeping of records in electronic form,
each of which shall be

 

 

of
the same legal effect, validity or enforceability as a manually executed
signature or the use of a paper-based recordkeeping system, as the case may be,
to the extent and as provided for in any applicable law, including the Federal
Electronic Signatures in Global and National Commerce Act, the New York State
Electronic Signatures and Records Act, or any other similar state laws based on
the Uniform Electronic Transactions Act.

 

(h)                                 Resignation after Assignment. (i)  Notwithstanding anything to the
contrary contained herein, if at any time any Lender assigns all of its
Commitments and Loans pursuant to subsection (b) above, such Lender
may, upon 30 days’ notice to the Borrowers and the Lenders, resign as Domestic
L/C Issuer and/or Canadian L/C Issuer, as applicable. In the event of any such
resignation as Domestic L/C Issuer or Canadian L/C Issuer, the applicable
Borrower shall be entitled to appoint from among the Lenders a successor
Domestic L/C Issuer or Canadian L/C Issuer hereunder; provided, however,
that no failure by a Borrower to appoint any such successor shall affect the
resignation of such Lender as Domestic L/C Issuer or Canadian L/C Issuer. If
any Lender resigns as Domestic L/C Issuer or Canadian L/C Issuer, it shall
retain all the rights, powers, privileges and duties of Domestic L/C Issuer or
Canadian L/C Issuer, as applicable, hereunder with respect to all Domestic
Letters of Credit or Canadian Letters of Credit outstanding as of the effective
date of its resignation as Domestic L/C Issuer or Canadian L/C Issuer and all
Domestic L/C Obligations or Canadian L/C Obligations, as applicable, with
respect thereto (including the right to require the Lenders to make Base Rate
Loans or fund risk participations in Unreimbursed Amounts pursuant to Section 2.03(c)).
Upon the appointment of a successor L/C Issuer, (a) such successor shall
succeed to and become vested with all of the rights, powers, privileges and
duties of the retiring L/C Issuer and (b) the successor L/C Issuer shall
issue letters of credit in substitution for the Letters of Credit, if any,
outstanding at the time of such succession or make other arrangements
satisfactory to such Lender to effectively assume the obligations of such
Lender with respect to such Letters of Credit.

 

11.07                 Treatment of Certain
Information; Confidentiality.

 

Each
Administrative Agent, each Collateral Agent, the Lenders and the L/C Issuers
agrees to maintain the confidentiality of the Information (as defined below),
except that Information may be disclosed (a) to its Affiliates and to
its and its Affiliates’ respective partners, directors, officers, employees,
agents, advisors and representatives (it being understood that the Persons to
whom such disclosure is made will be informed of the confidential nature of
such Information and instructed to keep such Information confidential), (b) to
the extent requested by any regulatory authority purporting to have
jurisdiction over it (including any self-regulatory authority, such as the
National Association of Insurance Commissioners), (c) to the extent
required by applicable laws or regulations or by any subpoena or similar legal
process, (d) to any other party hereto, (e) in connection with the
exercise of any remedies hereunder or under any other Loan Document or any
action or proceeding relating to this Agreement or any other Loan Document or
the enforcement of rights hereunder or thereunder, (f) subject to an
agreement containing provisions substantially the same as those of this
Section, to (i) any assignee of or Participant in, or any prospective
assignee of or Participant in, any of its rights or obligations under this
Agreement, (ii) any pledge referred to in Section 11.06(f) or
(iii) any actual or prospective counterparty (or its advisors) to any swap
or derivative transaction relating to the Borrowers and their obligations, (g) with
the consent of GGC or (h) to the extent such Information (x) becomes
publicly available other than as a result of a breach of this Section or
(y) becomes available to either Administrative Agent, either Collateral Agent,
any Lender, any L/C Issuer or any of their respective Affiliates on a
nonconfidential basis from a source other than the Borrowers.

 

 

For
purposes of this Section, “Information” means all information received from
any Borrower or any Subsidiary relating to any Borrower or any Subsidiary or
any of their respective businesses, other than any such information that is
available to either Administrative Agent, either Collateral Agent, any Lender
or any L/C Issuer on a nonconfidential basis prior to disclosure by any
Borrower or any Subsidiary. Any Person required to maintain the confidentiality
of Information as provided in this Section shall be considered to have
complied with its obligation to do so if such Person has exercised the same
degree of care to maintain the confidentiality of such Information as such
Person would accord to its own confidential information.

 

Each
of the Administrative Agents, the Collateral Agents, the Lenders and the L/C
Issuers acknowledges that (a) the Information may include material
non-public information concerning GGC or a Subsidiary, as the case may be,
(b) it has developed compliance procedures regarding the use of material
non-public information and (c) it will handle such material non-public
information in accordance with applicable Law, including Federal and state
securities Laws.

 

11.08                 Right of Setoff.

 

If
an Event of Default shall have occurred and be continuing, each Lender, each
L/C Issuer, and each of their respective Affiliates is hereby authorized at any
time and from time to time, to the fullest extent permitted by applicable law,
to set off and apply any and all deposits (general or special, time or demand,
provisional or final, in whatever currency) at any time held and other
obligations (in whatever currency) at any time owing by such Lender, such L/C
Issuer or any such Affiliate to or for the credit or the account of the
Borrowers or any other Loan Party  against any and all of the
obligations of the applicable Borrower or such Loan Party now or hereafter
existing under this Agreement or any other Loan Document to such Lender or such
L/C Issuer, irrespective of whether or not such Lender or such L/C Issuer shall
have made any demand under this Agreement or any other Loan Document and
although such obligations of such Borrower or
such Loan Party may be contingent or unmatured or are owed to a branch or
office of such Lender or such L/C Issuer different from the branch or office
holding such deposit or obligated on such indebtedness. The rights of each
Lender, each L/C Issuer and their respective Affiliates under this Section are
in addition to other rights and remedies (including other rights of setoff)
that such Lender, such L/C Issuer or their respective Affiliates may have.
Each Lender and each L/C Issuer agrees to notify the applicable Borrower and
the applicable Administrative Agent promptly after any such setoff and
application, provided that the failure to give such notice shall not
affect the validity of such setoff and application.

 

11.09                 Interest Rate Limitation.

 

Notwithstanding
anything to the contrary contained in any Loan Document, the interest paid or
agreed to be paid under the Loan Documents shall not exceed the maximum rate of
non-usurious interest permitted by applicable Law (the “Maximum Rate”). If
Domestic Administrative Agent, the Canadian Administrative Agent or any Lender
shall receive interest in an amount that exceeds the Maximum Rate, the excess
interest shall be applied to the principal of the Loans or, if it exceeds such
unpaid principal, refunded to the applicable Borrower. In determining whether
the interest contracted for, charged, or received by the Domestic
Administrative Agent, the Canadian Administrative Agent or a Lender exceeds the
Maximum Rate, such Person may, to the extent permitted by applicable Law, (a) characterize
any payment that is not principal as an expense, fee, or premium rather than
interest, (b) exclude voluntary prepayments and the effects thereof, and (c) amortize,
prorate, allocate, and spread in equal or

 

 

unequal
parts the total amount of interest throughout the contemplated term of the
Obligations hereunder.

 

11.10                 Counterparts; Integration;
Effectiveness.

 

This
Agreement may be executed in counterparts (and by different parties hereto
in different counterparts), each of which shall constitute an original, but all
of which when taken together shall constitute a single contract. This Agreement
and the other Loan Documents constitute the entire contract among the parties
relating to the subject matter hereof and supersede any and all previous
agreements and understandings, oral or written, relating to the subject matter
hereof. Except as provided in Section 5.01, this Agreement shall
become effective when it shall have been executed by the Domestic
Administrative Agent and the Canadian Administrative Agent and when the
Domestic Administrative Agent shall have received counterparts hereof that,
when taken together, bear the signatures of each of the other parties hereto. Delivery
of an executed counterpart of a signature page of this Agreement by
telecopy shall be effective as delivery of a manually executed counterpart of
this Agreement.

 

11.11                 Survival of Representations
and Warranties.

 

All
representations and warranties made hereunder and in any other Loan Document or
other document delivered pursuant hereto or thereto or in connection herewith
or therewith shall survive the execution and delivery hereof and thereof. Such
representations and warranties have been or will be relied upon by each
Administrative Agent, each Collateral Agent and each Lender, regardless of any
investigation made by any Administrative Agent, any Collateral Agent or any
Lender or on their behalf and notwithstanding that any Administrative Agent,
any Collateral Agent or any Lender may have had notice or knowledge of any
Default at the time of any Credit Extension, and shall continue in full force
and effect as long as any Loan or any other Obligation hereunder shall remain
unpaid or unsatisfied or any Letter of Credit shall remain outstanding.

 

11.12                 Severability.

 

If
any provision of this Agreement or the other Loan Documents is held to be
illegal, invalid or unenforceable, (a) the legality, validity and
enforceability of the remaining provisions of this Agreement and the other Loan
Documents shall not be affected or impaired thereby and (b) the parties
shall endeavor in good faith negotiations to replace the illegal, invalid or
unenforceable provisions with valid provisions the economic effect of which comes
as close as possible to that of the illegal, invalid or unenforceable
provisions. The invalidity of a provision in a particular jurisdiction shall
not invalidate or render unenforceable such provision in any other
jurisdiction.

 

11.13                 Replacement of Lenders.

 

If
(a) any Lender requests compensation under Section 3.04, (b) any
Borrower is required to pay any additional amount to any Lender or any
Governmental Authority for the account of any Lender pursuant to Section 3.01,
(c) a Lender (a “Non-Consenting Lender”) does not consent to a
proposed change, waiver, discharge or termination with respect to any Loan
Document that has been approved by the Required Lenders as provided in Section 11.01
but requires unanimous consent of all Lenders or all Lenders directly affected
thereby (as applicable) or (d) any Lender is a Defaulting Lender, then the
applicable Borrower may, at its sole expense and effort, upon notice to such
Lender and the applicable Administrative Agent, require such Lender to assign
and

 

 

delegate,
without recourse (in accordance with and subject to the restrictions contained
in, and consents required by, Section 11.06), all of its interests,
rights and obligations under this Agreement and the related Loan Documents to
an assignee that shall assume such obligations (which assignee may be
another Lender, if a Lender accepts such assignment), provided that:

 

(i)                                     the applicable Administrative Agent shall
have received the assignment fee specified in Section 11.06(b);

 

(ii)                                  such Lender shall have received payment of an
amount equal to the outstanding principal of its Loans and L/C Advances,
accrued interest thereon, accrued fees and all other amounts payable to it
hereunder and under the other Loan Documents (including any amounts under Section 3.05)
from the assignee (to the extent of such outstanding principal and accrued
interest and fees) or the applicable Borrower (in the case of all other
amounts);

 

(iii)                               in the case of any such assignment resulting
from a claim for compensation under Section 3.04 or payments
required to be made pursuant to Section 3.01, such assignment will
result in a reduction in such compensation or payments thereafter;

 

(iv)                              such assignment does not conflict with
applicable Laws; and

 

(v)                                 in the case of any such assignment resulting
from a Non-Consenting Lender’s failure to consent to a proposed change, waiver,
discharge or termination with respect to any Loan Document, the applicable
replacement bank, financial institution or Fund consents to the proposed
change, waiver, discharge or termination; provided that the failure by
such Non-Consenting Lender to execute and deliver an Assignment and Assumption
shall not impair the validity of the removal of such Non-Consenting Lender and
the mandatory assignment of such Non-Consenting Lender’s Commitments and
outstanding Loans and participations in L/C Obligations and Canadian Swing Line
Loans pursuant to this Section 11.13 shall nevertheless be
effective without the execution by such Non-Consenting Lender of an Assignment
and Assumption.

 

A
Lender shall not be required to make any such assignment or delegation if,
prior thereto, as a result of a waiver by such Lender or otherwise, the
circumstances entitling the applicable Borrower to require such assignment and
delegation cease to apply.

 

11.14                 Governing Law; Jurisdiction;
Etc.

 

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

 

(b)                                 SUBMISSION TO JURISDICTION. EACH BORROWER AND EACH OTHER LOAN PARTY
IRREVOCABLY AND UNCONDITIONALLY SUBMITS, FOR ITSELF AND ITS PROPERTY, TO THE
NONEXCLUSIVE JURISDICTION OF THE COURTS OF THE STATE OF NEW YORK SITTING IN NEW
YORK CITY AND OF THE UNITED STATES DISTRICT COURT OF THE SOUTHERN DISTRICT, AND
ANY APPELLATE COURT FROM ANY THEREOF, IN ANY ACTION OR PROCEEDING ARISING OUT
OF OR RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT, OR FOR RECOGNITION
OR ENFORCEMENT OF ANY JUDGMENT, AND EACH OF THE PARTIES HERETO IRREVOCABLY AND
UNCONDITIONALLY AGREES

 

 

THAT
ALL CLAIMS IN RESPECT OF ANY SUCH ACTION OR PROCEEDING MAY BE HEARD AND
DETERMINED IN SUCH NEW YORK STATE COURT OR, TO THE FULLEST EXTENT PERMITTED BY
APPLICABLE LAW, IN SUCH FEDERAL COURT. EACH OF THE PARTIES HERETO AGREES THAT A
FINAL JUDGMENT IN ANY SUCH ACTION OR PROCEEDING SHALL BE CONCLUSIVE AND MAY BE
ENFORCED IN OTHER JURISDICTIONS BY SUIT ON THE JUDGMENT OR IN ANY OTHER MANNER
PROVIDED BY LAW. NOTHING IN THIS AGREEMENT OR IN ANY OTHER LOAN DOCUMENT SHALL
AFFECT ANY RIGHT THAT ANY ADMINISTRATIVE AGENT, ANY COLLATERAL AGENT, ANY
LENDER, OR ANY L/C ISSUER MAY OTHERWISE HAVE TO BRING ANY ACTION OR
PROCEEDING RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT AGAINST GGC OR
ANY OTHER LOAN PARTY OR ITS PROPERTIES IN THE COURTS OF ANY JURISDICTION.

 

(c)                                  WAIVER OF VENUE. EACH BORROWER AND EACH OTHER LOAN PARTY
IRREVOCABLY AND UNCONDITIONALLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY
APPLICABLE LAW, ANY OBJECTION THAT IT MAY NOW OR HEREAFTER HAVE TO THE
LAYING OF VENUE OF ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS
AGREEMENT OR ANY OTHER LOAN DOCUMENT IN ANY COURT REFERRED TO IN
PARAGRAPH (B) OF THIS SECTION. EACH OF THE PARTIES HERETO HEREBY
IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, THE
DEFENSE OF AN INCONVENIENT FORUM TO THE MAINTENANCE OF SUCH ACTION OR
PROCEEDING IN ANY SUCH COURT.

 

(d)                                 SERVICE OF PROCESS. EACH PARTY HERETO IRREVOCABLY CONSENTS TO
SERVICE OF PROCESS IN THE MANNER PROVIDED FOR NOTICES IN SECTION 11.02.
NOTHING IN THIS AGREEMENT WILL AFFECT THE RIGHT OF ANY PARTY HERETO TO SERVE
PROCESS IN ANY OTHER MANNER PERMITTED BY APPLICABLE LAW.

 

11.15                 Waiver of Jury Trial.

 

EACH
PARTY HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY
APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL
PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT
OR ANY OTHER LOAN DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY
(WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY). EACH PARTY HERETO (A) CERTIFIES
THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PERSON HAS REPRESENTED,
EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PERSON WOULD NOT, IN THE EVENT OF
LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT
IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT
AND THE OTHER LOAN DOCUMENTS BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND
CERTIFICATIONS IN THIS SECTION.

 

11.16                 No Advisory or Fiduciary
Responsibility.

 

In
connection with all aspects of each transaction contemplated hereby, each
Borrower acknowledges and agrees, and acknowledge its Affiliates’
understanding, that: (i) the credit facilities provided for hereunder and
any related arranging or other services in connection

 

 

therewith
(including in connection with any amendment, waiver or other modification
hereof or of any other Loan Document) are an arm’s-length commercial
transaction between each Borrower and its Affiliates, on the one hand, and any
Administrative Agent, and BAS, on the other hand, and each Borrower is capable
of evaluating and understanding and understands and accepts the terms, risks
and conditions of the transactions contemplated hereby and by the other Loan
Documents (including any amendment, waiver or other modification hereof or
thereof); (ii) in connection with the process leading to such transaction,
each Administrative Agent and BAS each is and has been acting solely as a
principal and is not the financial advisor, agent or fiduciary, for each
Borrower or any of its Affiliates, stockholders, creditors or employees or any
other Person; (iii) neither any Administrative Agent nor BAS has assumed
or will assume an advisory, agency or fiduciary responsibility in favor of
either Borrower with respect to any of the transactions contemplated hereby or
the process leading thereto, including with respect to any amendment, waiver or
other modification hereof or of any other Loan Document (irrespective of
whether any Administrative Agent or BAS has advised or is currently advising a
Borrower or any of its Affiliates on other matters) and neither any
Administrative Agent nor BAS has any obligation to any Borrower or any of its
Affiliates with respect to the transactions contemplated hereby except those
obligations expressly set forth herein and in the other Loan Documents; (iv) the
Administrative Agents and BAS and their respective Affiliates may be
engaged in a broad range of transactions that involve interests that differ
from those of any Borrower and its Affiliates, and neither any Administrative
Agent nor BAS has any obligation to disclose any of such interests by virtue of
any advisory, agency or fiduciary relationship; and (v) the Administrative
Agents and BAS have not provided and will not provide any legal, accounting,
regulatory or tax advice with respect to any of the transactions contemplated
hereby (including any amendment, waiver or other modification hereof or of any
other Loan Document) and each Borrower has consulted its own legal, accounting,
regulatory and tax advisors to the extent it has deemed appropriate. Each
Borrower hereby waives and releases, to the fullest extent permitted by law,
any claims that it may have against any Administrative Agent and BAS with
respect to any breach or alleged breach of agency or fiduciary duty.

 

11.17                 USA PATRIOT Act Notice.

 

Each
Lender that is subject to the Act (as hereinafter defined), the Domestic
Administrative Agent (for itself and not on behalf of any Lender) and the
Canadian Administrative Agent (for itself and not on behalf of any Lender)
hereby notifies the Borrowers that pursuant to the requirements of the USA
Patriot Act (Title III of Pub. L. 107-56 (signed into law October 26,
2001)) (the “Act”), it is required to obtain, verify and record
information that identifies each Borrower, which information includes the name
and address of each Borrower and other information that will allow such Lender,
such Administrative Agent, as applicable, to identify such Borrower in
accordance with the Act.

 

11.18                 Entire Agreement.

 

THIS
AGREEMENT AND THE OTHER LOAN DOCUMENTS REPRESENT THE FINAL AGREEMENT AMONG THE
PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS,
OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL
AGREEMENTS AMONG THE PARTIES.

 

 

11.19                 Conversion of
Currencies.

 

(a)                                  If, for the purpose of obtaining judgment in
any court, it is necessary to convert a sum owing hereunder in one currency
into another currency, each party hereto agrees, to the fullest extent that it may effectively
do so, that the rate of exchange used shall be that at which in accordance with
normal banking procedures in the relevant jurisdiction the first currency could
be purchased with such other currency on the Business Day immediately preceding
the day on which final judgment is given.

 

(b)                                 The obligations of each Loan Party in respect
of any sum due to any party hereto or any holder of the obligations owing
hereunder (the “Applicable Creditor”) shall, notwithstanding any
judgment in a currency (the “Judgment Currency”) other than the currency
in which such sum is stated to be due hereunder (the “Agreement Currency”),
be discharged only to the extent that, on the Business Day following receipt by
the Applicable Creditor of any sum adjudged to be so due in the Judgment
Currency, the Applicable Creditor may in accordance with normal banking
procedures in the relevant jurisdiction purchase the Agreement Currency with
the Judgment Currency; if the amount of the Agreement Currency so purchased is
less than the sum originally due to the Applicable Creditor in the Agreement
Currency, such Loan Party agrees, as a separate obligation and notwithstanding
any such judgment, to indemnify the Applicable Creditor against such loss. The
obligations of the Loan Parties contained in this Section 11.19
shall survive the termination of this Agreement and the payment of all other
amounts owing hereunder.

 

 

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

 

	
  BORROWERS:

  	
  GEORGIA GULF CORPORATION,

  
	
   

  	
  a
  Delaware corporation, as a Borrower and, with

  
	
   

  	
  respect
  to the Canadian Obligations, as a Guarantor

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Joel I. Beerman

  	
   

  
	
   

  	
  Name:

  	
  Joel
  I. Beerman

  
	
   

  	
  Title:

  	
  Vice
  President & Secretary

  
	
   

  	
   

  	
   

  
	
   

  	
  ROYAL GROUP TECHNOLOGIES LIMITED,

  
	
   

  	
  a
  Canadian federal corporation, as a Borrower

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Joel I. Beerman

  	
   

  
	
   

  	
  Name:

  	
  Joel
  I. Beerman

  
	
   

  	
  Title:

  	
  Vice
  President

  
	
   

  	
   

  	
   

  
	
  DOMESTIC GUARANTORS:

  	
  GEORGIA GULF CHEMICALS & VINYLS, LLC,

  
	
   

  	
  a
  Delaware limited liability company

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Joel I. Beerman

  	
   

  
	
   

  	
  Name:

  	
  Joel
  I. Beerman

  
	
   

  	
  Title:

  	
  Vice
  President & Secretary

  
	
   

  	
   

  	
   

  
	
   

  	
  GEORGIA GULF LAKE CHARLES, LLC,

  
	
   

  	
  a
  Delaware limited liability company

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Joel I. Beerman

  	
   

  
	
   

  	
  Name:

  	
  Joel
  I. Beerman

  
	
   

  	
  Title:

  	
  Vice
  President & Secretary

  
	
   

  	
   

  	
   

  
	
   

  	
  GREAT RIVER OIL & GAS CORPORATION,

  
	
   

  	
  a
  Delaware corporation

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Joel I. Beerman

  	
   

  
	
   

  	
  Name:

  	
  Joel
  I. Beerman

  
	
   

  	
  Title:

  	
  Vice
  President & Secretary

  
					

 

 

	
   

  	
  ROME DELAWARE CORP.,

  
	
   

  	
  a
  Delaware corporation

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Joel I. Beerman

  	
   

  
	
   

  	
  Name:

  	
  Joel
  I. Beerman

  
	
   

  	
  Title:

  	
  Vice
  President & Secretary

  
	
   

  	
   

  
	
   

  	
  ROYAL PLASTICS GROUP (U.S.A.) LIMITED,

  
	
   

  	
  a
  Delaware corporation

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Joel I. Beerman

  	
   

  
	
   

  	
  Name:

  	
  Joel
  I. Beerman

  
	
   

  	
  Title:

  	
  Vice
  President

  
	
   

  	
   

  
	
   

  	
  PLASTIC TRENDS, INC.,

  
	
   

  	
  a
  Michigan corporation

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Joel I. Beerman

  	
   

  
	
   

  	
  Name:

  	
  Joel
  I. Beerman

  
	
   

  	
  Title:

  	
  Vice
  President

  
	
   

  	
   

  
	
   

  	
  ROYBRIDGE INVESTMENTS (U.S.A.) LIMITED,

  
	
   

  	
  a
  Delaware corporation

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Joel I. Beerman

  	
   

  
	
   

  	
  Name:

  	
  Joel
  I. Beerman

  
	
   

  	
  Title:

  	
  Vice
  President

  
	
   

  	
   

  
	
  CANADIAN GUARANTORS:

  	
  ROME ACQUISITION HOLDING CORP.,

  
	
   

  	
  a
  Nova Scotia unlimited liability company

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Joel I. Beerman

  	
   

  
	
   

  	
  Name:

  	
  Joel
  I. Beerman

  
	
   

  	
  Title:

  	
  Vice
  President & Secretary

  
	
   

  	
   

  
	
   

  	
  ROME ACQUISITION CORP.,

  
	
   

  	
  a
  Canadian federal corporation

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Joel I. Beerman

  	
   

  
	
   

  	
  Name:

  	
  Joel
  I. Beerman

  
	
   

  	
  Title:

  	
  Vice
  President & Secretary

  
					

 

 

	
   

  	
  6632149 CANADA INC.,

  
	
   

  	
  a
  Canadian federal corporation

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Joel I. Beerman

  	
   

  
	
   

  	
  Name:

  	
  Joel
  I. Beerman

  
	
   

  	
  Title:

  	
  Vice
  President

  
					

 

 

	
  DOMESTIC

  	
   

  
	
  ADMINISTRATIVE AGENT:

  	
  BANK OF AMERICA,

  
	
   

  	
  NATIONAL ASSOCIATION,

  
	
   

  	
  as
  Domestic Administrative Agent and

  
	
   

  	
  Domestic
  Collateral Agent

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Colleen M. Briscoe

  	
   

  
	
   

  	
  Name:

  	
  Colleen
  M. Briscoe

  
	
   

  	
  Title:

  	
  Vice
  President

  
	
   

  	
   

  	
   

  
	
  CANADIAN

  	
   

  
	
  ADMINISTRATIVE AGENT:

  	
  BANK OF AMERICA,

  
	
   

  	
  NATIONAL ASSOCIATION,

  
	
   

  	
  acting
  through its Canada branch,

  
	
   

  	
  as
  Canadian Administrative Agent and

  
	
   

  	
  Canadian
  Collateral Agent

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Medina Sales de Andrade

  	
   

  
	
   

  	
  Name:

  	
  Medina
  Sales de Andrade

  
	
   

  	
  Title:

  	
  Assistant
  Vice President

  
						

 

 

	
  LENDERS:

  	
  BANK OF AMERICA,

  
	
   

  	
  NATIONAL ASSOCIATION,

  
	
   

  	
  as
  a Lender and a Domestic L/C Issuer

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Colleen M. Briscoe

  	
   

  
	
   

  	
  Name:

  	
  Colleen
  M. Briscoe

  
	
   

  	
  Title:

  	
  Vice
  President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  BANK OF AMERICA,

  
	
   

  	
  NATIONAL ASSOCIATION,

  
	
   

  	
  acting through its Canada branch,

  
	
   

  	
  as
  a Lender and a Canadian L/C Issuer

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Medina Sales de Andrade

  	
   

  
	
   

  	
  Name:

  	
  Medina
  Sales de Andrade

  
	
   

  	
  Title:

  	
  Assistant
  Vice President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  THE BANK OF NOVA SCOTIA,

  
	
   

  	
  as
  a Lender and Canadian Swing Line Lender

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Anuj Dhawan

  	
   

  
	
   

  	
  Name:

  	
  Anuj
  Dhawan

  
	
   

  	
  Title:

  	
  Director

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Jamie Davis

  	
   

  
	
   

  	
  Name:

  	
  Jamie
  Davis

  
	
   

  	
  Title:

  	
  Associate

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  N. Bell

  	
   

  
	
   

  	
  Name:

  	
  N.
  Bell

  
	
   

  	
  Title:

  	
  Senior
  Manager

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  SCOTIABANC INC.,

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  William E. Zarrett

  	
   

  
	
   

  	
  Name:

  	
  William
  E. Zarrett

  
	
   

  	
  Title:

  	
  Managing
  Director

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  LEHMAN COMMERCIAL PAPER INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Frank P. Turner

  	
   

  
	
   

  	
  Name:

  	
  Frank
  P. Turner

  
	
   

  	
  Title:

  	
  Vice
  President

  
						

 

 

	
   

  	
  BANK OF TOKYO-MITSUBISHI

  
	
   

  	
  UFJ TRUST COMPANY

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Mary Coseo

  	
   

  
	
   

  	
  Name:

  	
  Mary
  Coseo

  
	
   

  	
  Title:

  	
  Assistant
  Vice President

  
					

 

 

	
   

  	
  MIZUHO CORPORATE BANK, LTD.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Leon Mo

  	
   

  
	
   

  	
  Name:

  	
  Leon
  Mo

  
	
   

  	
  Title:

  	
  Senior
  Vice President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  COMMERZBANK AG NEW YORK

  
	
   

  	
  AND GRAND CAYMAN BRANCHES

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Edward C. A. Forsberg, Jr.

  	
   

  
	
   

  	
  Name:

  	
  Edward
  C. A. Forsberg, Jr.

  
	
   

  	
  Title:

  	
  Senior
  Vice President and Manager

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Nivedita Persaud

  	
   

  
	
   

  	
  Name:

  	
  Nivedita
  Persaud

  
	
   

  	
  Title:

  	
  Vice
  President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  MERRILL LYNCH CAPITAL CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Don Burkitt

  	
   

  
	
   

  	
  Name:

  	
  Don
  Burkitt

  
	
   

  	
  Title:

  	
  Vice
  President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  MERRILL LYNCH CAPITAL CANADA, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Marcelo Corma

  	
   

  
	
   

  	
  Name:

  	
  Marcelo
  Corma

  
	
   

  	
  Title:

  	
  Vice
  President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  LASALLE BANK NATIONAL ASSOCIATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  W. P. Fischer

  	
   

  
	
   

  	
  Name:

  	
  W.
  P. Fischer

  
	
   

  	
  Title:

  	
  Senior
  Vice President

  
					

 

 

	
   

  	
  ABN AMRO BANK N.V.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  L. Geoffrey Morphy

  	
   

  
	
   

  	
  Name:

  	
  L.
  Geoffrey Morphy

  
	
   

  	
  Title:

  	
  First
  Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Darcy Mack

  	
   

  
	
   

  	
  Name:

  	
  Darcy
  Mack

  
	
   

  	
  Title:

  	
  First
  Vice President

  
					

 

 

	
   

  	
  WACHOVIA BANK NATIONAL ASSOCIATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Barbara Van Meerten

  	
   

  
	
   

  	
  Name:

  	
  Barbara
  Van Meerten

  
	
   

  	
  Title:

  	
  Director

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  WACHOVIA CAPITAL FINANCE CORPORATION (CANADA)

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Carmela Massari

  	
   

  
	
   

  	
  Name:

  	
  Carmela
  Massari

  
	
   

  	
  Title:

  	
  First
  Vice President

  
	
   

  	
   

  	
  Wachovia
  Capital Finance Corporation (Canada)

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  BAYERISCHE LANDESBANK,

  
	
   

  	
  NEW YORK BRANCH

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Georgina Fiordalisi

  	
   

  
	
   

  	
  Name:

  	
  Georgina
  Fiordalisi

  
	
   

  	
  Title:

  	
  Vice
  President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Donna M. Quilty

  	
   

  
	
   

  	
  Name:

  	
  Donna
  M. Quilty

  
	
   

  	
  Title:

  	
  Vice
  President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  NORTHERN TRUST COMPANY

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  John C. Canty

  	
   

  
	
   

  	
  Name:

  	
  John
  C. Canty

  
	
   

  	
  Title:

  	
  Vice
  President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  JPMORGAN CHASE BANK, N.A.,

  
	
   

  	
  TORONTO BRANCH

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Christine Chan

  	
   

  
	
   

  	
  Name:

  	
  Christine
  Chan

  
	
   

  	
  Title:

  	
  Vice
  President

  
						

 

 

	
   

  	
  JPMORGAN CHASE BANK, N.A.,

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Peter A. Dedousis

  	
   

  
	
   

  	
  Name:

  	
  Peter
  A. Dedousis

  
	
   

  	
  Title:

  	
  Vice
  President

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00111-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00111-of-00352.parquet"}]]