Document:

Exhibit 4.3

 

EXECUTION COPY

 

SUPPLEMENTAL INDENTURE IN RESPECT OF GUARANTEE

 

SECOND
SUPPLEMENTAL INDENTURE, dated as of April 28, 2006 (this “Supplemental
Indenture”), among Santana Holdings Corp., a Delaware corporation, and
Santana Products, Inc., a Delaware corporation (the “New Guarantors”),
Compression Polymers Holding Corporation, a Delaware corporation (together with
its successors and assigns, the “Company”), Compression Polymers Holding
II Corporation, Compression Polymers Corp., Vycom Corp., CPCapitol Acquisition
Corp., CPH Sub I Corporation, CPH Sub II Corporation, CPC Sub I Corporation and
VC Sub I Corporation (collectively, the “Existing Guarantors” and
together with the New Guarantors, the “Guarantors”) and Wells Fargo
Bank, N.A., a national banking association, as Trustee (the “Trustee”)
under the Indenture referred to below.

 

W I T N E S S E T H:

 

WHEREAS, the
Company, the Existing Guarantors and the Trustee are parties to an Indenture,
dated as of July 5, 2005 (as amended, supplemented, waived or otherwise
modified, the “Indenture”), providing for the issuance of Senior
Floating Rate Notes due 2012 (the “Floating Rate Notes”) and 101⁄2% Senior
Notes due 2013 (the “Fixed Rate Notes” and, together with the Floating
Rate Notes, the “Notes”) of the Company;

 

WHEREAS,
Section 4.16 of the Indenture provides that the Company is required to
cause the New Guarantors to execute and deliver to the Trustee a supplemental
indenture pursuant to which the New Guarantors shall guarantee the Notes
pursuant to Guarantees on the terms and conditions set forth herein and in
Article XI of the Indenture;

 

WHEREAS, each
New Guarantor desires to enter into this Supplemental Indenture for good and
valuable consideration, including substantial economic benefit in that the financial
performance and condition of such New Guarantor is dependent on the financial
performance and condition of the Company;

 

WHEREAS,
pursuant to Section 9.1 of the Indenture, the parties hereto are authorized
to execute and deliver this Supplemental Indenture to amend the Indenture,
without the consent of any Holder; and

 

WHEREAS,
all things necessary have been done to make this Supplemental Indenture, when
executed and delivered by the Company, the Existing Guarantors and each New
Guarantor, the legal, valid and binding agreement of the Company, the Existing
Guarantors and each New Guarantor, in accordance with its terms.

 

NOW,
THEREFORE, in consideration of the foregoing and for other good and valuable
consideration, the receipt of which is hereby acknowledged, the Guarantors, the
Company and the Trustee mutually covenant and agree for the benefit of the
Holders of the Notes as follows:

 

1.             Defined Terms. As used in
this Supplemental Indenture, terms defined in the Indenture or in the preamble
or recital hereto are used herein as therein defined. The words 

 

 

“herein,” “hereof” and “hereby” and other
words of similar import used in this Supplemental Indenture refer to this
Supplemental Indenture as a whole and not to any particular section hereof.

 

2.             Agreement to Guarantee. Each
New Guarantor hereby agrees, jointly and severally with all Existing
Guarantors, unconditionally, to guarantee the Notes and the obligations of the
Company under the Indenture and the Notes on the terms and subject to the conditions
set forth in Article XI of the Indenture and to be bound by (and shall be
entitled to the benefits of) all other applicable provisions of the Indenture
as a Guarantor.

 

3.             Termination, Release and
Discharge. Each New Guarantor’s Guarantee shall terminate and be of no
further force or effect, and each New Guarantor shall be released and
discharged from all obligations in respect of its Guarantee, only as and when
provided in Section 11.5 of the Indenture.

 

4.             Parties. Nothing in this
Supplemental Indenture is intended or shall be construed to give any Person,
other than the Holders and the Trustee, any legal or equitable right, remedy or
claim under or in respect of each New Guarantor’s Guarantee or any provision
contained herein or in Article XI of the Indenture.

 

5.             Governing Law. THIS
SUPPLEMENTAL INDENTURE, THE INDENTURE, THE GUARANTEES AND THE NOTES SHALL BE
GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.

 

6.             Ratification of Indenture;
Supplemental Indentures Part of Indenture. Except as expressly amended
hereby, the Indenture is in all respects ratified and confirmed and all the
terms, conditions and provisions thereof shall remain in full force and effect.
This Supplemental Indenture shall form a part of the Indenture for all
purposes, and every Holder of Notes heretofore or hereafter authenticated and
delivered shall be bound hereby. The Trustee makes no representation or
warranty as to the validity or sufficiency of this Supplemental Indenture.

 

7.             Counterparts. The parties
hereto may sign one or more copies of this Supplemental Indenture in
counterparts, all of which together shall constitute one and the same
agreement.

 

8.             Headings. The section
headings herein are for convenience of reference only and shall not be deemed
to alter or affect the meaning or interpretation of any provisions hereof.

 

2

 

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

 

	
   

  	
  SANTANA HOLDINGS CORP., as Guarantor

  
	
   

  	
  SANTANA PRODUCTS, INC., as Guarantor

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ SCOTT C. HARRISON

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Scott C. Harrison

  
	
   

  	
   

  	
  Title:

  	
  Vice President, Treasurer
  and

  Assistant Secretary

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  COMPRESSION
  POLYMERS HOLDING CORPORATION

  
	
   

  	
  COMPRESSION
  POLYMERS HOLDING II CORPORATION

  
	
   

  	
  COMPRESSION
  POLYMERS CORP.

  
	
   

  	
  VYCOM CORP.

  
	
   

  	
  CPCAPITOL
  ACQUISITION CORP.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ SCOTT C. HARRISON

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Scott C. Harrison

  
	
   

  	
   

  	
  Title:

  	
  Senior Vice President and
  Chief

  Financial Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  CPH SUB I CORPORATION

  
	
   

  	
  CPH SUB II CORPORATION

  
	
   

  	
  CPC SUB I CORPORATION

  
	
   

  	
  VC SUB I CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ SHIVANANDAN A. DALVIE

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Shivanandan A. Dalvie

  
	
   

  	
   

  	
  Title:

  	
  Vice President, Assistant
  Secretary

  and Treasurer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  WELLS FARGO
  BANK, N.A., as Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ JOSEPH P. O’DONNELL

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Joseph P. O’Donnell

  
	
   

  	
   

  	
  Title:

  	
  Vice PresidentExhibit 4.5

 

REGISTRATION RIGHTS
AGREEMENT

 

This REGISTRATION RIGHTS AGREEMENT is dated as of July 5,
2005 (the “Agreement”), by and among Compression Polymers Holding
Corporation, a Delaware corporation (the “Company”) and Compression
Polymers Holding II Corporation, a Delaware corporation ( “Holdings”),
Compression Polymers Corp., a Delaware corporation (“Compression”),
Vycom Corp., a Delaware corporation (“Vycom”) and CPCapitol Acquisition
Corp., a Delaware corporation (“CPCapitol,” and collectively with
Holdings, Compression and Vycom, the “Guarantors” and together with the
Company, the “Issuers”), on the one hand, and Wachovia Capital Markets,
LLC (the “Initial Purchaser”), on the other hand.

 

This Agreement is entered into in connection with
the Purchase Agreement by and between the Issuers and the Initial Purchaser,
dated as of June 29, 2005 (the “Purchase Agreement”) which provides
for, among other things, the sale by the Company to the Initial Purchaser of
$65.0 million aggregate principal amount of the Company’s Senior Floating Rate
Notes due 2012 (the “Floating Rate Notes”) and $150.0 million aggregate
principal amount of the Company’s % Senior Notes due 2013 (the “Fixed Rate
Notes” and, together with the Floating Rate Notes, the “Notes”)
which will be guaranteed on an unsecured senior basis by each of the Guarantors
(the “Guarantees”). References herein to the “Securities” refer
to the Notes and the Guarantees collectively. In order to induce the Initial
Purchaser to enter into the Purchase Agreement, the Issuers have agreed to
provide the registration rights set forth in this Agreement for the benefit of
the Initial Purchaser and any subsequent holder or holders of the Securities.
The execution and delivery of this Agreement is a condition to the Initial
Purchaser’s obligations under the Purchase Agreement.

 

In consideration of the foregoing, the parties
hereto agree as follows:

 

1.                                       Definitions. As used in this Agreement, the following terms shall have the
following meanings:

 

“Business Day” shall mean any day that is not a
Saturday, Sunday or other day on which commercial banks in New York City are
authorized or required by law to remain closed.

 

“Closing Date” shall mean the Closing Date as
defined in the Purchase Agreement.

 

“Company” shall have the meaning set forth in the
preamble and shall also include the Company’s successors.

 

“Exchange Act” shall mean the Securities Exchange
Act of 1934, as amended from time to time.

 

“Exchange Dates” shall have the meaning set forth in
Section 2(a)(ii) hereof.

 

“Exchange Offer” shall mean an exchange offer by the
Company and the Guarantors of Exchange Securities for Registrable Securities
pursuant to Section 2(a) hereof.

 

 

“Exchange Offer Registration” shall mean a
registration under the Securities Act effected pursuant to Section 2(a) hereof.

 

“Exchange Offer Registration Statement” shall mean
an exchange offer registration statement on Form S-4 (or, if applicable,
on another appropriate form) and all amendments and supplements to such
registration statement, in each case including the Prospectus contained
therein, all exhibits thereto and any document incorporated by reference
therein.

 

“Exchange Securities” shall mean senior notes issued
by the Company and guaranteed by the Guarantors under the Indenture containing
terms identical to the Securities (except that the Exchange Securities will not
be subject to restrictions on transfer or to any increase in annual interest
rate for failure to comply with this Agreement) and to be offered to Holders of
Securities in exchange for Securities pursuant to an Exchange Offer.

 

“Guarantors” shall have the meaning set forth in the
preamble and shall also include any Guarantor’s successors.

 

“Holders” shall mean the Initial Purchaser, for so
long as it owns any Registrable Securities, and each of its successors, assigns
and direct and indirect transferees who become owners of Registrable Securities
under the Indenture; provided that for purposes of Sections 4 and 5 of
this Agreement, the term “Holders” shall include Participating Broker-Dealers.

 

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

 

“Indenture” shall mean the Indenture relating to the
Securities dated as of July 1, 2005 among the Issuers and Wells Fargo
Bank, N.A., as trustee, and as the same may be amended and supplemented
from time to time in accordance with the terms thereof.

 

“Inspector” shall have the meaning set forth in Section 3(m)
hereof.

 

“Majority Holders” shall mean the Holders of a
majority of the aggregate principal amount of outstanding Registrable
Securities; provided that whenever the consent or approval of Holders of
a specified percentage of Registrable Securities is required hereunder,
Registrable Securities owned directly or indirectly by the Company or any of
its subsidiaries shall not be counted in determining whether such consent or
approval was given by the Holders of such required percentage or amount; and provided,
further, that if the Company shall issue any additional Securities under
the Indenture prior to consummation of an Exchange Offer or, if applicable, the
effectiveness of any Shelf Registration Statement, such additional Securities
and the Registrable Securities to which this Agreement relates shall be treated
together as one class for purposes of determining whether the consent or
approval of Holders of a specified percentage of Registrable Securities has
been obtained.

 

“Market-Maker” shall have the meaning set forth in Section 2(c) hereof.

 

“Market-Maker’s Information” shall have the meaning
set forth in Section 2(c) hereof.

 

2

 

“Market-Making Registration” shall have the meaning
set forth in Section 2(c) hereof.

 

“Market-Making Registration Statement” shall have
the meaning set forth in Section 2(c) hereof.

 

“Participating Broker-Dealers” shall have the
meaning set forth in Section 4(a) hereof.

 

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

 

“Prospectus” shall mean the prospectus included in a
Registration Statement, including any preliminary prospectus, and any such
prospectus as amended or supplemented by any prospectus supplement, including a
prospectus supplement with respect to the terms of the offering of any portion
of the Registrable Securities covered by a Shelf Registration Statement, and by
all other amendments and supplements to such prospectus, and in each case
including any document incorporated by reference therein.

 

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

 

“Registrable Securities” shall mean the Securities; provided
that the Securities shall cease to be Registrable Securities (i) when a
Registration Statement with respect to such Securities has been declared
effective under the Securities Act and such Securities have been exchanged or
disposed of pursuant to such Registration Statement, (ii) when such
Securities are eligible to be sold pursuant to Rule 144(k) (or any similar
provision then in force, but not Rule 144A) under the Securities Act or (iii) when
such Securities cease to be outstanding.

 

“Registration Expenses” shall mean any and all
expenses incident to performance of or compliance by the Issuers with this
Agreement, including, without limitation, (i) all SEC, stock exchange or
National Association of Securities Dealers, Inc. registration and filing
fees, (ii) all fees and expenses incurred in connection with compliance
with state securities or blue sky laws (including reasonable fees and
disbursements of counsel for any Underwriters or Holders in connection with
blue sky qualification of any Exchange Securities or Registrable Securities), (iii) all
expenses of any Persons in preparing or assisting in preparing, word
processing, printing and distributing any Registration Statement, any
Prospectus and any amendments or supplements thereto, any underwriting
agreements, securities sales agreements or other similar agreements and any
other documents relating to the performance of and compliance with this
Agreement, (iv) all rating agency fees, (v) all fees and
disbursements relating to the qualification of the Indenture under applicable
securities laws, (vi) the fees and disbursements of the Trustee and its
counsel, (vii) the fees and disbursements of counsel for the Issuers and,
in the case of a Shelf Registration Statement, the reasonable fees and
disbursements of one counsel for the Holders (which counsel shall be selected
by the Majority Holders and which counsel may also be counsel for the
Initial Purchaser) and (viii) the fees and disbursements of the
independent public accountants of the Issuers, including the expenses of any
special audits or “comfort” letters required by or incident to the performance
of and compliance with this Agreement, but excluding fees and 

 

3

 

expenses
of counsel to the Underwriters (other than fees and expenses set forth in
clause (ii) above) or the Holders and underwriting discounts and
commissions and transfer taxes, if any, relating to the sale or disposition of
Registrable Securities by a Holder.

 

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

 

“SEC” shall mean the Securities and Exchange
Commission.

 

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

 

“Securities Act” shall mean the Securities Act of
1933, as amended from time to time.

 

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

 

“Shelf Registration” shall mean a registration
effected pursuant to Section 2(b) hereof.

 

“Shelf Registration Statement” shall mean a “shelf”
registration statement of the Issuers that covers all the Registrable
Securities (but no other securities unless approved by the Majority Holders
whose Registrable Securities are to be covered by such Shelf Registration
Statement) on an appropriate form under Rule 415 under the Securities
Act, or any similar rule that may be adopted by the SEC, and all
amendments and supplements to such registration statement, including
post-effective amendments, in each case including the Prospectus contained
therein, all exhibits thereto and any document incorporated by reference
therein.

 

“Staff” shall mean the staff of the SEC.

 

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

 

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

 

“Underwriter” shall have the meaning set forth in Section 3
hereof.

 

“Underwritten Offering” shall mean an offering in
which Registrable Securities are sold to an Underwriter for reoffering to the
public.

 

2.                                       Registration
Under the Securities Act. (a)  To the extent not prohibited by any
applicable law or applicable interpretations of the Staff, the Issuers shall
use their commercially reasonable efforts to (i) cause to be filed an
Exchange Offer Registration Statement covering an offer to the Holders to
exchange all the Registrable Securities for Exchange Securities, (ii) cause
the Exchange Offer Registration Statement to be declared effective under the
Securities 

 

4

 

Act, (iii) have such Exchange Offer Registration Statement remain
effective until the closing of the Exchange Offer and (iv) cause the
Exchange Offer to be consummated not later than 270 days following the Closing
Date.

 

The Issuers shall commence the Exchange Offer by
mailing the related Prospectus, appropriate letters of transmittal and other
accompanying documents to each Holder stating, in addition to such other
disclosures as are required by applicable law, substantially the following:

 

(i)                  that the Exchange Offer is being made
pursuant to this Agreement and that all Registrable Securities validly tendered
and not properly withdrawn will be accepted for exchange;

 

(ii)               the dates of acceptance for exchange (which
shall be a period of at least 20 Business Days from the date such notice is
mailed) (the “Exchange Dates”);

 

(iii)            that any Registrable Security not tendered
will remain outstanding and continue to accrue interest but will not retain any
rights under this Agreement;

 

(iv)           that any Holder electing to have a Registrable Security exchanged
pursuant to the Exchange Offer will be required to surrender such Registrable
Security, together with the appropriate letters of transmittal, to the
institution and at the address (located in the Borough of Manhattan, The City
of New York) and in the manner specified in the notice, prior to the close of
business on the last Exchange Date; and

 

(v)              that any Holder will be entitled to withdraw
its election, not later than the close of business on the last Exchange Date,
by sending to the institution and at the address (located in the Borough of
Manhattan, The City of New York) specified in the notice, a telegram, telex,
facsimile transmission or letter setting forth the name of such Holder, the
principal amount of Registrable Securities delivered for exchange and a
statement that such Holder is withdrawing its election to have such Securities
exchanged.

 

As a condition to participating in the Exchange
Offer, a Holder will be required to represent to the Issuers that (i) any
Exchange Securities to be received by it will be acquired in the ordinary
course of its business, (ii) at the time of the commencement of the
Exchange Offer it has no arrangement or understanding with any Person to
participate in the distribution (within the meaning of the Securities Act) of
the Exchange Securities in violation of the provisions of the Securities Act, (iii) it
is not an “affiliate” (within the meaning of Rule 405 under Securities
Act) of any Issuer and (iv) if such Holder is a broker-dealer that will
receive Exchange Securities for its own account in exchange for Registrable
Securities that were acquired as a result of market-making or other trading
activities, then such Holder will deliver a Prospectus in connection with any
resale of such Exchange Securities.

 

5

 

As soon as reasonably practicable after the last
Exchange Date, the Issuers shall

 

(i)                  accept for exchange Registrable Securities or
portions thereof validly tendered and not properly withdrawn pursuant to the
Exchange Offer; and

 

(ii)               deliver, or cause to be delivered, to the
Trustee for cancellation all Registrable Securities or portions thereof so
accepted for exchange by the Company and issue, and cause the Trustee to
promptly authenticate and deliver to each Holder, Exchange Securities equal in
principal amount to the principal amount of the Registrable Securities
surrendered by such Holder.

 

The Issuers shall use their commercially reasonable
efforts to complete the Exchange Offer as provided above and shall comply with
the applicable requirements of the Securities Act, the Exchange Act and other
applicable laws and regulations in connection with the Exchange Offer. The
Exchange Offer shall not be subject to any conditions, other than that
(x) the Exchange Offer does not violate any applicable law or applicable
interpretations of the Staff and (y) there is no action or proceeding
instituted or threatened in any court or by any governmental agency that in the
Company’s judgment would reasonably be expected to impair the Company’s ability
to proceed with the Exchange Offer. If the Company determines in its reasonable
judgment that either of the foregoing conditions is not satisfied, the Company may (a) refuse
to accept any Registrable Securities and return all tendered Registrable
Securities to the tendering Holders, (b) extend the Exchange Offer and
retain all Registrable Securities tendered before the expiration of the
Exchange Offer, subject, however, to the rights of holders to withdraw those
Registrable Securities, or (c) waive the unsatisfied conditions with
respect to the Exchange Offer and accept all properly tendered Registrable
Securities that have not been withdrawn.

 

(b)                                 In the event that (i) the Issuers
determine that the Exchange Offer Registration provided for in Section 2(a) above
is not available or may not be completed as soon as reasonably practicable
after the last Exchange Date because it would violate any applicable law or
applicable interpretations of the Staff or otherwise, (ii) the Exchange
Offer is not for any other reason completed by the 270th day
following the Closing Date or (iii) any Holder notifies the Issuers on or
prior to the 30th day following the consummation of the Exchange
Offer that (A) it is not permitted under law or SEC policy to participate
in the Exchange Offer, (B) it cannot publicly resell new Exchange
Securities that it acquires in the Exchange Offer without delivering a
Prospectus, and the Prospectus contained in the Exchange Offer Registration
Statement is not appropriate or available for resales by the Holder or (C) it
is a broker-dealer and holds Registrable Securities that it has not exchanged
and that it acquired directly from the Issuers or one of their affiliates, then
in addition to or in lieu of conducting the Exchange Offer, the Issuers shall
be required to file a Shelf Registration Statement with the SEC to cover
resales of the Registrable Securities or the Exchange Securities, as the case may be.
In that case, the Issuers will use their commercially reasonable efforts (a) to
file the Shelf Registration Statement by the 30th day after
they become obligated to make the filing, (b) to cause the Shelf
Registration Statement to become effective by the 120th day
after they become obligated to make the filing and (c) to maintain the
effectiveness of the Shelf Registration Statement during the Shelf
Effectiveness Period (defined below). In the event that the Issuers are
required to file a Shelf Registration Statement solely as a result of the
matters referred to in clause (ii) of this paragraph, but the Exchange
Offer 

 

6

 

is
subsequently completed, upon consummation of the Exchange Offer the Company
will no longer be required to file, have declared effective or continue the
effectiveness of the Shelf Registration Statement pursuant to such clause (ii) (without
prejudice to its obligations under clause (i) or (iii) of this
paragraph). In the event that the Issuers are required to file a Shelf
Registration Statement solely as a result of the matters referred to in clause (iii) of
this paragraph, the Issuers shall use their commercially reasonable efforts to
file and have declared effective by the SEC both an Exchange Offer Registration
Statement pursuant to Section 2(a) with respect to all Registrable
Securities and a Shelf Registration Statement (which may be a combined
Registration Statement with the Exchange Offer Registration Statement) with
respect to offers and sales of Registrable Securities held by any such Holder
that has notified the Issuers pursuant to such clause (iii) after
completion of the Exchange Offer.

 

The Issuers agree to use their commercially
reasonable efforts to keep the Shelf Registration Statement continuously
effective until the earliest of (i) two years from the Closing Date, (ii) the
expiration of the period referred to in Rule 144(k) (or any similar rule then
in force, but not Rule 144A) under the Securities Act with respect to the
Registrable Securities (iii) or such shorter period that will terminate
when all the Registrable Securities covered by the Shelf Registration Statement
have been sold pursuant to the Shelf Registration Statement (the “Shelf
Effectiveness Period”). The Issuers further agree to supplement or amend
the Shelf Registration Statement and the related Prospectus if required by the
rules, regulations or instructions applicable to the registration form used
by the Company for such Shelf Registration Statement or by the Securities Act
or by any other rules and regulations thereunder for shelf registration or
if reasonably requested by a Holder of Registrable Securities with respect to
information relating to such Holder, and to use their commercially reasonable
efforts to cause any such amendment to become effective and such Shelf
Registration Statement and Prospectus to become usable as soon as thereafter
practicable. The Issuers agree to furnish to the Holders of Registrable
Securities copies of any such supplement or amendment promptly after its being
used or filed with the SEC.

 

(c)                                  (1)  For the sole benefit of the Initial
Purchaser (in such capacity, the “Market-Maker”) or any of its
affiliates (as defined in the rules and regulations of the SEC), so long
as (x) any of the Registrable Securities or Exchange Securities are
outstanding and (y) the Market-Maker (or any of its affiliates) is an affiliate
of the Issuers and proposes to make a market in the Registrable Securities or
Exchange Securities as part of its business in the ordinary course, the
following provisions shall apply for the sole benefit of the Market-Maker:

 

(i)                  The Issuers shall file under the Securities
Act a registration statement (which may be the Exchange Offer Registration
Statement or the Shelf Registration Statement if permitted by the rules and
regulations of the SEC), in a form reasonably acceptable to the
Market-Maker (such filing, the “Market-Making Registration,” and such
registration statement, the “Market-Making Registration Statement”). The
Issuers agree to use their commercially reasonable efforts to cause the
Market-Making Registration Statement to be declared effective on or prior to (i) the
date the initial Exchange Offer is completed pursuant to Section 2(a) above
or (ii) the date the Shelf Registration becomes or is declared effective
pursuant to Section 2(b) above, and to keep such Market-Making
Registration Statement continuously 

 

7

 

effective for so long as the Market-Maker may be
required to deliver a Prospectus in connection with transactions in the
Securities or the Exchange Securities, as the case may be. In the event
that the Market-Maker holds Securities at the time an Exchange Offer is to be
conducted under Section 2(a) above, the Issuers agree that the
Market-Making Registration shall, if permitted by SEC rules and
regulations, provide for the resale by the Market-Maker of such Securities and
shall be kept continuously effective for so long as the Market-Maker may be
required to deliver a Prospectus in connection with the sale of such
Securities. The Issuers further agree to supplement or make amendments to the
Market-Making Registration Statement, as and when required by the rules,
regulations or instructions applicable to the registration form used by
the Issuers for such Market-Making Registration Statement, and the Issuers
agree to furnish to the Market-Maker copies of any such supplement or amendment
(excluding any documents incorporated by reference therein) prior to its being
used or promptly following its filing with the SEC. The Market-Maker shall
promptly notify the Issuers if it is no longer required to deliver a Prospectus
in connection with transactions in the Securities or the Exchange Securities,
as the case may be.

 

(ii)               Notwithstanding the foregoing, the Company may suspend
the offering and sale under the Market-Making Registration Statement for such
period or periods that the Company reasonably determines to be advisable for
valid business reasons, but in any event not to exceed 120 days (plus any time
required in connection with updating the Market-Making Registration Statement
in accordance with Section 10(a)(3) of the Securities Act) (or as
otherwise acceptable to the Market-Maker) in each year during which the
Market-Making Registration Statement is required to be effective and usable
hereunder (measured from the effective time of the Market-Making Registration
Statement to successive anniversaries thereof) if (A) (i) the Company
determines in good faith that such action is in the best interests of the
Company or (ii) the Market Making Registration Statement, prospectus or
amendment or supplement thereto contains an untrue statement of a material fact
or omits to state a material fact necessary in order to make the statements
therein, in light of the circumstances under which they were made, not
misleading, and (B) the Company notifies the Market-Maker within five
business days after such Board of Directors makes the relevant determination
set forth in clause (A).

 

(iii)            The Company shall notify the Market-Maker (A) when
any post-effective amendment to the Market-Making Registration Statement or any
amendment or supplement to the related prospectus has been filed (excluding any
documents incorporated by reference therein), and, with respect to any
post-effective amendment, when the same has become effective; (B) of any
request by the SEC for any post-effective amendment to the Market-Making
Registration Statement, any supplement or amendment to the related prospectus
or for additional information; (C) the issuance by the SEC of any stop
order suspending the effectiveness of the Market-Making Registration Statement
or the initiation of any proceedings for that purpose; (D) of the receipt
by the Company of any notification with respect to 

 

8

 

the suspension of the qualification of the
Registrable Securities or Exchange Securities for sale in any jurisdiction or
the initiation or threatening of any proceedings for such purpose; and (E) within
five business days after the happening of any event that results in the
Market-Making Registration Statement, the related prospectus or any amendment
or supplement containing an untrue statement of a material fact or omitting to
state a material fact necessary in order to make the statements therein, in
light of the circumstances under which they were made, not misleading.

 

(iv)           If any event contemplated by Section 2(c)(iii)(B) through (E) occurs
during the period for which the Issuers are required to maintain an effective
Market-Making Registration Statement, the Issuers shall use commercially
reasonable efforts to prepare and file with the SEC a post-effective amendment
to the Market-Making Registration Statement or a supplement to the related
prospectus or file any other required document, to the extent information is
available and public at the time, so that the prospectus will not include an
untrue statement of a material fact or omit to state a material fact necessary
in order to make the statements therein, in the light of the circumstances
under which they were made, not misleading.

 

(v)              In the event of the issuance of any stop
order suspending the effectiveness of the Market-Making Registration Statement
or of any order suspending the qualification of the Registrable Securities or
Exchange Securities for sale in any jurisdiction, the Issuers shall promptly
use their commercially reasonable efforts to obtain its withdrawal.

 

(vi)           The Company shall furnish to the Market-Maker, without charge, (i) at
least one conformed copy of the Market-Making Registration Statement and any
post-effective amendment thereto; and (ii) as many copies of the related
prospectus and any amendment or supplement thereto as the Market-Maker may reasonably
request.

 

(vii)        The Issuers shall consent to the use of the prospectus contained in the
Market-Making Registration Statement or any amendment or supplement thereto by
the Market-Maker in connection with its market-making activities.

 

(viii)     Notwithstanding the foregoing provisions of this Section 2(c), the
Issuers may for valid business reasons, including without limitation, a
potential acquisition, divestiture of assets or other material corporate
transaction or if required under the Securities Act or the Exchange Act, issue
a notice that the Market-Making Registration Statement is no longer effective
or the prospectus included therein is no longer usable for offers and sales of
Registrable Securities or Exchange Securities and may issue any notice
suspending use of the Market-Making Registration Statement required under
applicable securities laws to be issued for so long as valid business reasons
exist and the Company shall not be obligated to amend or supplement the
Market-Making Registration Statement or the prospectus included therein until
it reasonably deems appropriate. The Market-Maker agrees that upon receipt of
any notice from the Company pursuant to this Section 2(c)(viii), it 

 

9

 

will discontinue use of the Market-Making
Registration Statement until receipt of copies of the supplemented or amended
prospectus relating thereto and until advised in writing by the Company that
the use of the Market-Making Registration Statement may be resumed.

 

(2)                                  In connection with the Market-Making
Registration, the Company shall (i) make reasonably available for
inspection by a representative of, and counsel acting for, the Market-Maker all
relevant financial and other records, pertinent corporate documents and
properties of the Issuers and (ii) use its commercially reasonable efforts
to have its officers, directors, employees, accountants and counsel supply all
relevant information reasonably requested by such representative or counsel or
the Market-Maker.

 

(3)                                  Prior to the effective date of the
Market-Making Registration Statement, the Issuers will use their commercially
reasonable efforts to register or qualify such Registrable Securities or
Exchange Securities for offer and sale under the securities or blue sky laws of
such jurisdictions as the Market-Maker reasonably requests in writing and do
any and all other acts or things necessary or advisable to enable the offer and
sale in such jurisdictions of the Registrable Securities or Exchange Securities
covered by the Market-Making Registration Statement; provided that neither
the Company nor any Guarantor shall be required to (i) qualify as a
foreign corporation or other entity or as a dealer in securities in any such
jurisdiction where it would not otherwise be required to so qualify, (ii) file
any general consent to service of process in any such jurisdiction, (iii) subject
itself to taxation in any such jurisdiction if it is not so subject or (iv) make
any change to its certificate of incorporation or by-laws or any agreement
between it and its stockholders.

 

(4)                                  The Company represents that the Market-Making
Registration Statement, any post-effective amendments thereto, any amendments
or supplements to the related prospectus and any documents filed by them under
the Exchange Act will, when they become effective or are filed with the SEC, as
the case may be, conform in all material respects to the requirements
of the Securities Act and the Exchange Act and the rules and regulations
of the SEC thereunder and will not, as of the effective date of such
Market-Making Registration Statement or post-effective amendments and as of the
filing date of amendments or supplements to such prospectus or filings under
the Exchange Act, contain an untrue statement of a material fact or omit to
state a material fact required to be stated therein or necessary to make the
statements therein, in light of the circumstances under which they were made,
not misleading; provided that no representation or warranty is made as
to information contained in or omitted from the Market-Making Registration
Statement or the related prospectus in reliance upon and in conformity with
written information furnished to the Company by the Market-Maker specifically
for inclusion therein, which information the parties hereto agree will be
limited to the statements concerning the market-making activities of the
Market-Maker to be set forth on the cover page and in the “Plan of
Distribution” section of the prospectus (the “Market-Maker’s
Information”).

 

(5)                                  At the time of effectiveness of the
Market-Making Registration Statement (unless it is the same as the time of
effectiveness of the Exchange Offer Registration Statement) and concurrently
with each time the Market-Making Registration Statement or the related
prospectus 

 

10

 

shall
be amended or such prospectus shall be supplemented, the Company shall notify
the Market-Maker or its counsel that:

 

(i)                  the Market-Making Registration Statement has
been declared effective;

 

(ii)               in the case of an amendment or supplement,
such amendment has become effective under the Securities Act; and

 

(iii)            as of the date of the Market Making
Registration Statement, amendment or supplement, as applicable, the Market
Making Registration Statement and the Prospectus, as amended or supplemented,
if applicable, did not include any untrue statement of a material fact and did
not omit to state a material fact required to be stated therein or necessary to
make the statements therein not misleading.

 

(6)                                  The Issuers, on the one hand, and the
Market-Maker, on the other hand, hereby agree to indemnify each other, and, if
applicable, contribute to the other, in accordance with Section 5 of this
Agreement.

 

(7)                                  The Company will comply with the provisions
of this Section 2(c) at its own expense and will reimburse the
Market-Maker for its expenses associated with this Section 2(c) (including
reasonable fees of counsel).

 

(8)                                  The agreements contained in this Section 2(c) and
the representations, warranties and agreements contained in this Agreement
shall survive all offers and sales of the Registrable Securities or Exchange
Securities and shall remain in full force and effect for so long as any of the
Registrable Securities or Exchange Securities are outstanding, regardless of
any termination or cancellation of this Agreement or any investigation made by
or on behalf of any indemnified party.

 

(d)                                 The Issuers shall pay all Registration
Expenses in connection with the registration pursuant to Section 2(a) and
Section 2(b) hereof. Each Holder shall pay all underwriting discounts
and commissions, brokerage commissions and transfer taxes, if any, relating to
the sale or disposition of such Holder’s Registrable Securities pursuant to the
Shelf Registration Statement.

 

(e)                                  An Exchange Offer Registration Statement pursuant
to Section 2(a) hereof or a Shelf Registration Statement pursuant to Section 2(b) hereof
will not be deemed to have become effective unless it has been declared
effective by the SEC.

 

In the event that (A) the Exchange Offer is not
consummated by the 270th day after the Closing Date, or (B) the
Issuers have chosen or are required to file a Shelf Registration Statement
pursuant to Section 2(b), and such Shelf Registration is not declared
effective by the dates specified in Section 2(b) (in the case of clause (A) or
(B), the “Target Registration Date”), the interest rate on the
Registrable Securities will be increased by (i) 0.25% per annum for the
first 90-day period immediately following the applicable Target Registration
Date and (ii) an additional 0.25% per annum with respect to each
subsequent 90-day period, in each case until the Exchange Offer is completed or
the Shelf Registration Statement, if required hereby, is declared 

 

11

 

effective
by the SEC or the Securities become freely tradable under the Securities Act,
at which time the interest rate on the Registrable Securities will revert to
the original interest rate borne by such Registrable Securities.
Notwithstanding the foregoing, a Holder of Registrable Securities who is not
entitled to the benefits of the Shelf Registration Statement shall not be
entitled to such additional interest with respect to clause (B) in the
preceding sentence.

 

If the Shelf Registration Statement, if required
hereby, has been declared effective and thereafter either ceases to be
effective or the Prospectus contained therein ceases to be usable at any time
during the Shelf Effectiveness Period, and such failure to remain effective or
usable exists for more than 60 days (whether or not consecutive) (plus any time
required in connection with updating the Shelf Registration Statement in
accordance with Section 10(a)(3) of the Securities Act) in any
12-month period, then the interest rate on the Registrable Securities will be
increased by 0.25% per annum for the first 90-day period immediately commencing
on the 61st day (whether or not consecutive) in any 12-month period, which rate
shall be increased by an additional 0.25% per annum at the beginning of each
subsequent 90-day period, and continue thereafter, in each case until the Shelf
Registration Statement has again been declared effective or the Prospectus
again becomes usable, at which time the interest rate on the Registrable
Securities will revert to the original interest rate borne by such Registrable
Securities.

 

Notwithstanding the foregoing, the maximum aggregate
increase in the interest rate borne by the Registrable Securities pursuant to
this Section 2(e) shall in no event exceed 1.00% per annum.

 

(f)                                    Without limiting the remedies available to
the Initial Purchaser and the Holders, the Issuers acknowledge that any failure
by the Issuers to comply with their obligations under Section 2(a) and
Section 2(b) hereof may result in material irreparable injury to
the Initial Purchaser or the Holders for which there is no adequate remedy at
law, that it will not be possible to measure damages for such injuries
precisely and that, in the event of any such failure, the Initial Purchaser or
any Holder may obtain such relief as may be required to specifically
enforce the Issuers’ obligations under Section 2(a) and Section 2(b) hereof.

 

3.                                       Registration Procedures. In connection with their obligations
pursuant to Section 2(a) and Section 2(b) hereof, the
Issuers shall as expeditiously as reasonably possible

 

(a)                                  prepare and file with the SEC a Registration
Statement on the appropriate form under the Securities Act, which form (x)
shall be selected by the Issuers, (y) shall, in the case of a Shelf
Registration, be available for the sale of the Registrable Securities by the
selling Holders thereof and (z) shall comply as to form in all material
respects with the requirements of the applicable form and include all
financial statements required by the SEC to be filed therewith; and use their commercially
reasonable efforts to cause such Registration Statement to become effective and
remain effective for the applicable period in accordance with Section 2
hereof;

 

(b)                                 prepare and file with the SEC such amendments
and post-effective amendments to each Registration Statement as may be
necessary to keep such Registration Statement effective for the applicable
period in accordance with Section 2 hereof and cause each Prospectus to be
supplemented by any required prospectus supplement and, as 

 

12

 

so supplemented, to be filed pursuant to Rule 424 under the
Securities Act; and keep each Prospectus current during the period described in
Section 4(3) of and Rule 174 under the Securities Act that is
applicable to transactions by brokers or dealers with respect to the
Registrable Securities or Exchange Securities;

 

(c)                                  in the case of a Shelf Registration, furnish
to each Holder of Registrable Securities, to counsel for the Initial Purchaser,
to counsel for such Holders (which counsel shall be selected by Holders of a
majority in principal amount covered by the Shelf Registration) and to each
Underwriter of an Underwritten Offering of Registrable Securities, if any,
without charge, as many copies of each Prospectus, including each preliminary
Prospectus, and any amendment or supplement thereto, in order to facilitate the
sale or other disposition of the Registrable Securities thereunder; and the
Issuers consent to the use of such Prospectus and any amendment or supplement
thereto in accordance with applicable law by each of the selling Holders of
Registrable Securities and any such Underwriters in connection with the
offering and sale of the Registrable Securities covered by and in the manner
described in such Prospectus or any amendment or supplement thereto in
accordance with applicable law;

 

(d)                                 use their commercially reasonable efforts to
register or qualify the Registrable Securities under all applicable state
securities or blue sky laws of such jurisdictions as any Holder of Registrable
Securities covered by a Registration Statement shall reasonably request in
writing by the time the applicable Registration Statement is declared effective
by the SEC; cooperate with the Holders in connection with any filings required
to be made with the National Association of Securities Dealers, Inc.; and
do any and all other acts and things that may be reasonably necessary or
advisable to enable each Holder to complete the disposition in each such
jurisdiction of the Registrable Securities owned by such Holder; provided
that neither the Company nor any Guarantor shall be required to (i) qualify
as a foreign corporation or other entity or as a dealer in securities in any
such jurisdiction where it would not otherwise be required to so qualify, (ii) file
any general consent to service of process in any such jurisdiction, (iii) subject
itself to taxation in any such jurisdiction if it is not so subject or (iv) make
any change to its certificate of incorporation or by-laws or any agreement
between it and its stockholders;

 

(e)                                  in the case of a Shelf Registration, notify
each Holder of Registrable Securities, counsel for Holders of Registrable
Securities (which counsel shall be selected by Holders of a majority in
principal amount covered by the Shelf Registration) and counsel for the Initial
Purchaser promptly and, if requested by any such Holder or counsel, confirm
such advice in writing (i) when a Registration Statement has become
effective and when any post-effective amendment thereto has been filed and
becomes effective, (ii) of any request by the SEC or any state securities
authority for amendments and supplements to a Registration Statement and
Prospectus or for additional information after the Registration Statement has
become effective, (iii) of the issuance by the SEC or any state securities
authority of any stop order suspending the effectiveness of a Registration
Statement or the initiation of any proceedings for that purpose, (iv) if,
between the effective date of a Registration Statement and the closing of any
sale of Registrable Securities covered thereby, the representations and
warranties of any Issuer contained in any underwriting 

 

13

 

agreement, securities sales agreement or other similar agreement, if
any, relating to an offering of such Registrable Securities cease to be true
and correct in all material respects or if any Issuer receives any notification
with respect to the suspension of the qualification of the Registrable
Securities for sale in any jurisdiction or the initiation of any proceeding for
such purpose, (v) of the happening of any event during the period a Shelf
Registration Statement is effective that makes any statement made in such
Registration Statement or the related Prospectus untrue in any material respect
or that requires the making of any changes in such Registration Statement or
Prospectus in order to make the statements therein not misleading and (vi) of
any determination by any Issuer that a post-effective amendment to a
Registration Statement would be appropriate;

 

(f)                                    use their commercially reasonable efforts to
obtain the withdrawal of any order suspending the effectiveness of a
Registration Statement at the earliest possible moment and provide immediate
notice to each Holder of the withdrawal of any such order;

 

(g)                                 in the case of a Shelf Registration, furnish
to each Holder of Registrable Securities, without charge, at least one
conformed copy of each Registration Statement and any post-effective amendment
thereto (without any documents incorporated therein by reference or exhibits
thereto, unless requested);

 

(h)                                 in the case of a Shelf Registration,
cooperate with the selling Holders of Registrable Securities to facilitate the
timely preparation and delivery of certificates representing Registrable
Securities to be sold and not bearing any restrictive legends and enable such
Registrable Securities to be issued in such denominations and registered in
such names (consistent with the provisions of the Indenture) as the selling
Holders may reasonably request at least one Business Day prior to the
closing of any sale of Registrable Securities;

 

(i)                                     in the case of a Shelf Registration, upon the
occurrence of any event contemplated by Section 3(e)(v) hereof, use
their commercially reasonable efforts to prepare and file with the SEC a
supplement or post-effective amendment to a Registration Statement or the
related Prospectus or any document incorporated therein by reference or file
any other required document so that, as thereafter delivered to purchasers of
the Registrable Securities, such Prospectus will not contain any untrue
statement of a material fact or omit to state a material fact necessary to make
the statements therein, in the light of the circumstances under which they were
made, not misleading; and the Issuers shall notify the Holders of Registrable
Securities to suspend use of the Prospectus as promptly as practicable after
the occurrence of such an event, and such Holders hereby agree to suspend use
of the Prospectus until the Issuers have amended or supplemented the Prospectus
to correct such misstatement or omission;

 

(j)                                     a reasonable time prior to the filing of any
Registration Statement, any Prospectus, any amendment to a Registration Statement
or amendment or supplement to a Prospectus (excluding any document that is to
be incorporated by reference into a Registration Statement or a Prospectus
after initial filing of a Registration Statement), provide copies of such
document to the Initial Purchaser and its counsel (and, in the case of a 

 

14

 

Shelf Registration Statement, to the Majority Holders of Registrable
Securities and their counsel) and make such of the representatives of the
Issuers as shall be reasonably requested by the Initial Purchaser or its
counsel (and, in the case of a Shelf Registration Statement, the Majority
Holders of Registrable Securities or their counsel) available for discussion of
such document; and the Issuers shall not, at any time after initial filing of a
Registration Statement, file any Prospectus, any amendment of or supplement to
a Registration Statement or a Prospectus, (excluding any document that is to be
incorporated by reference into a Registration Statement or a Prospectus), of
which the Initial Purchaser and its counsel (and, in the case of a Shelf
Registration Statement, the Majority Holders of Registrable Securities and
their counsel) shall not have previously been advised and furnished a copy and
shall give good faith consideration to their comments thereon;

 

(k)                                  obtain a CUSIP number for all Exchange
Securities or Registrable Securities, as the case may be, not later than
the effective date of a Registration Statement;

 

(l)                                     cause the Indenture to be qualified under the
Trust Indenture Act in connection with the registration of the Exchange
Securities or Registrable Securities, as the case may be; cooperate with
the Trustee and the Holders to effect such changes to the Indenture as may be
required for the Indenture to be so qualified in accordance with the terms of
the Trust Indenture Act; and execute, and use their commercially reasonable
efforts to cause the Trustee to execute, all documents as may be required
to effect such changes and all other forms and documents required to be filed
with the SEC to enable the Indenture to be so qualified in a timely manner;

 

(m)                               in the case of an Underwritten Offering off of a Shelf Registration,
make available for inspection by a representative of the Holders of the Registrable
Securities (an “Inspector”), any Underwriter participating in any
disposition pursuant to such Shelf Registration Statement, and one firm of
attorneys and one firm of accountants designated by the Inspector, at
reasonable times and in a reasonable manner, all pertinent financial and other
records, documents and properties of the Issuers, and cause the respective
officers, directors and employees of the Issuers to supply all information
reasonably requested by any such Inspector, Underwriter, attorney or accountant
in connection with an Underwritten Offering off of a Shelf Registration
Statement; provided that if any such information is identified by the
Issuers as being confidential or proprietary, each Person receiving such
information shall take such actions as are reasonably necessary to protect the
confidentiality of such information to the extent such action is otherwise not
inconsistent with, an impairment of or in derogation of the rights and
interests of any Inspector, Holder or Underwriter and shall sign customary
confidentiality agreements reasonably requested by the Issuers prior to the
receipt of such information;

 

(n)                                 in the case of a Shelf Registration, use
their commercially reasonable efforts to cause all Registrable Securities to be
listed on any securities exchange or any automated quotation system on which
similar securities issued or guaranteed by the Issuers are then listed if
requested by the Majority Holders, to the extent such Registrable Securities
satisfy applicable listing requirements;

 

15

 

(o)                                 if reasonably requested by any Holder of
Registrable Securities covered by a Registration Statement, promptly
incorporate in a Prospectus supplement or post-effective amendment such information
with respect to such Holder as such Holder reasonably requests to be included
therein and make all required filings of such Prospectus supplement or such
post-effective amendment as soon as the Company has received notification of
the matters to be incorporated in such filing; and

 

(p)                                 in the case of an Underwritten Offering off
of a Shelf Registration, enter into such customary agreements and take all such
other actions in connection therewith (including those requested by the Holders
of a majority in principal amount of the Registrable Securities being sold) in
order to expedite or facilitate the disposition of such Registrable Securities
including, but not limited to, an Underwritten Offering and in such connection,
(i) to the extent possible, make such representations and warranties to
the Holders and any Underwriters of such Registrable Securities with respect to
the business of the Company and its subsidiaries, the Registration Statement,
Prospectus and documents incorporated by reference or deemed incorporated by
reference, if any, in each case, in form, substance and scope as are
customarily made by issuers to underwriters in underwritten offerings and
confirm the same if and when requested, (ii) obtain opinions of counsel to
the Issuers (which counsel and opinions, in form, scope and substance, shall be
reasonably satisfactory to the Holders and such Underwriters and their
respective counsel) addressed to each selling Holder and Underwriter of
Registrable Securities, covering the matters customarily covered in opinions
requested in underwritten offerings, (iii) use commercially reasonable
efforts to obtain “comfort” letters from the independent certified public
accountants of the Issuers (and, if necessary, any other certified public
accountant of any subsidiary of the Company or any Guarantor, or of any
business acquired by the Company or any Guarantor for which financial
statements and financial data are or are required to be included in the
Registration Statement) addressed to each selling Holder and Underwriter of
Registrable Securities, such letters to be in customary form and covering
matters of the type customarily covered in “comfort” letters in connection with
underwritten offerings and (iv) deliver such documents and certificates as
may be reasonably requested by the Holders of a majority in principal
amount of the Registrable Securities being sold or the Underwriters, and which
are customarily delivered in underwritten offerings, to evidence the continued
validity of the representations and warranties of the Issuers made pursuant to
clause (i) above and to evidence compliance with any customary conditions
contained in an underwriting agreement; provided, however, that
in the event of an Underwritten Offering off of a Shelf Registration for the
benefit of the Initial Purchaser, the Initial Purchaser shall be limited to one
opinion of counsel to the Issuers and one “comfort letter,” each at the Initial
Purchaser’s reasonable expense.

 

In the case of a Shelf Registration Statement, the
Company may require each Holder of Registrable Securities to furnish to
the Company such information regarding such Holder (including, without
limitation, a customary selling Holder questionnaire) and the proposed
disposition by such Holder of such Registrable Securities as the Issuers may from
time to time reasonably request in writing.

 

16

 

In the case of a Shelf Registration Statement, each
Holder of Registrable Securities agrees that, upon receipt of any notice from
the Issuers of the happening of any event of the kind described in Section 3(e)(iii) or
3(e)(v) hereof, such Holder will forthwith discontinue disposition of
Registrable Securities pursuant to a Registration Statement until such Holder’s
receipt of the copies of the supplemented or amended Prospectus contemplated by
Section 3(i) hereof and, if so directed by the Issuers, such Holder
will deliver to the Issuers all copies in its possession, other than permanent
file copies then in such Holder’s possession, of the Prospectus covering such
Registrable Securities that is current at the time of receipt of such notice.

 

If the Issuers shall give any such notice to suspend
the disposition of Registrable Securities pursuant to a Registration Statement,
the Issuers shall extend the period during which the Registration Statement
shall be maintained effective pursuant to this Agreement by the number of days
during the period from and including the date of the giving of such notice to
and including the date when the Holders shall have received copies of the
supplemented or amended Prospectus necessary to resume such dispositions. The
Issuers may give any such notice only twice during any 365-day period and
any such suspensions shall not exceed 60 days (plus any time required in
connection with updating the Registration Statement in accordance with Section 10(a)(3) of
the Securities Act) per year for all extensions.

 

The Holders of Registrable Securities covered by a
Shelf Registration Statement who desire to do so may sell such Registrable
Securities in an Underwritten Offering. In any such Underwritten Offering, the
investment banker or investment bankers and manager or managers (the “Underwriters”)
that will administer the offering will be selected by the Majority Holders of
the Registrable Securities included in such offering with the Company’s
consent, not to be unreasonably withheld.

 

4.                                       Participation
of Broker-Dealers in Exchange Offer. (a)  The Staff has taken the
position that any broker-dealer that receives Exchange Securities for its own
account in the Exchange Offer in exchange for Securities that were acquired by
such broker-dealer as a result of market-making or other trading activities (a “Participating
Broker-Dealer”) may be deemed to be an “underwriter” within the meaning of
the Securities Act and must deliver a prospectus meeting the requirements of
the Securities Act in connection with any resale of such Exchange Securities.

 

The Issuers understand that it is the Staff’s
position that if the Prospectus contained in the Exchange Offer Registration
Statement includes a plan of distribution containing a statement to the above
effect and the means by which Participating Broker-Dealers may resell the
Exchange Securities, without naming the Participating Broker-Dealers or
specifying the amount of Exchange Securities owned by them, such Prospectus may be
delivered by Participating Broker-Dealers to satisfy their prospectus delivery
obligation under the Securities Act in connection with resales of Exchange
Securities for their own accounts, so long as the Prospectus otherwise meets
the requirements of the Securities Act.

 

(b)                                 In light of the above, and notwithstanding
the other provisions of this Agreement, the Issuers agree to amend or
supplement the Prospectus contained in the Exchange Offer Registration
Statement, as would otherwise be contemplated by Section 3(i), for a
period of up to 180 days after the last Exchange Date (as such period may be
extended pursuant to the 

 

17

 

penultimate
paragraph of Section 3 of this Agreement), if requested by the Initial
Purchaser or by one or more Participating Broker-Dealers, in order to expedite
or facilitate the disposition of any Exchange Securities by Participating
Broker-Dealers consistent with the positions of the Staff recited in Section 4(a) above.
The Issuers further agree that Participating Broker-Dealers shall be authorized
to deliver such Prospectus during such period in connection with the resales
contemplated by this Section 4.

 

(c)                                  The Initial Purchaser shall have no liability
to the Company, any Guarantor or any Holder with respect to any request that
they may make pursuant to Section 4(b) above.

 

5.                                       Indemnification
and Contribution. (a)  The Issuers, jointly and severally, agree to
indemnify and hold harmless the Initial Purchaser and each Holder, their
respective affiliates, directors and officers and each Person, if any, who
controls any Initial Purchaser or any Holder within the meaning of Section 15
of the Securities Act or Section 20 of the Exchange Act, from and against
any and all out-of-pocket losses, claims, damages and liabilities (including,
without limitation, reasonable legal fees and other expenses incurred in
connection with any suit, action or proceeding or any claim asserted, as such
fees and expenses are incurred), joint or several, that arise out of, or are
based upon, any untrue statement or alleged untrue statement of a material fact
contained in any Registration Statement, Market-Making Registration Statement
or any Prospectus or any omission or alleged omission to state therein a
material fact required to be stated therein or necessary in order to make the
statements therein, in the light of the circumstances under which they were
made, not misleading or, in the case of the Market-Maker, any breach by the
Issuers of their representations, warranties and agreements contained in Section 2(c) hereof,
except insofar as such losses, claims, damages or liabilities arise out of, or
are based upon, any untrue statement or omission or alleged untrue statement or
omission made in reliance upon and in conformity with any information relating
to the Initial Purchaser or any Holder furnished to the Company in writing
through Wachovia Capital Markets, LLC or any selling Holder expressly for use
therein. In connection with any Underwritten Offering permitted by Section 3,
the Issuers, jointly and severally, will also indemnify the Underwriters, if
any, selling brokers, dealers and similar securities industry professionals
participating in the distribution, their respective affiliates and each Person
who controls such Persons (within the meaning of the Securities Act and the
Exchange Act) to the same extent as provided above with respect to the
indemnification of the Holders, if requested in connection with any
Registration Statement. Notwithstanding the foregoing, with respect to any
untrue statement in or omission from any related preliminary Prospectus, the
indemnity agreement contained in this Section 5 shall not inure to the
benefit of any Holder from whom the person asserting any such loss, claim,
damage or liability received Securities or Exchange Securities to the extent
that such loss, claim, damage or liability of or with respect to such Holder
results from the fact that both (i) a copy of the final Prospectus was not
sent or given to such person at or prior to the written confirmation of the
sale of such Securities or Exchange Securities to such person and (ii) the
untrue statement in or omission from the related preliminary Prospectus was
corrected in the final Prospectus unless, in either case, such failure to
deliver the final Prospectus was the result of non-compliance by the Company
and the Guarantors with Section 2(b), 3(c) or 3(g) hereof.

 

(b)                                 Each Holder agrees, severally and not
jointly, to indemnify and hold harmless the Company, the Guarantors, the
Initial Purchaser and the other selling Holders, their 

 

18

 

respective
affiliates, the directors of the Issuers, each officer of the Issuers who
signed the Registration Statement and each Person, if any, who controls the
Company, the Guarantors, the Initial Purchaser and any other selling Holder
within the meaning of Section 15 of the Securities Act or Section 20
of the Exchange Act to the same extent as the indemnity set forth in paragraph (a) above,
but only with respect to any losses, claims, damages or liabilities that arise
out of, or are based upon, any untrue statement or omission or alleged untrue statement
or omission made in reliance upon and in conformity with any information
relating to such Holder furnished to the Company in writing by such Holder
expressly for use in any Registration Statement, Market-Making Registration
Statement and any Prospectus.

 

(c)                                  If any suit, action, proceeding (including
any governmental or regulatory investigation), claim or demand shall be brought
or asserted against any Person in respect of which indemnification may be
sought pursuant to either paragraph (a) or (b) above, such Person
(the “Indemnified Person”) shall promptly notify the Person against whom
such indemnification may be sought (the “Indemnifying Person”) in writing;
provided that the failure to notify the Indemnifying Person shall not
relieve it from any liability that it may have under this Section 5
except to the extent that it has been materially prejudiced (through the
forfeiture of substantive rights or defenses) by such failure; and provided,
further, that the failure to notify the Indemnifying Person shall not
relieve it from any liability that it may have to an Indemnified Person
otherwise than under this Section 5. If any such proceeding shall be
brought or asserted against an Indemnified Person and it shall have notified
the Indemnifying Person thereof, the Indemnifying Person shall retain counsel
reasonably satisfactory to the Indemnified Person to represent the Indemnified
Person and any others entitled to indemnification pursuant to this Section 5
that the Indemnifying Person may designate in such proceeding and shall
pay the reasonable fees and expenses of such counsel related to such
proceeding, as incurred. In any such proceeding, any Indemnified Person shall
have the right to retain its own counsel, but the fees and expenses of such
counsel shall be at the expense of such Indemnified Person unless (i) the
Indemnifying Person and the Indemnified Person shall have mutually agreed in
writing to the contrary; (ii) the Indemnifying Person has failed within a
reasonable time to retain counsel reasonably satisfactory to the Indemnified
Person; (iii) the Indemnified Person shall have reasonably concluded that
there may be legal defenses available to it that are different from or in
addition to those available to the Indemnifying Person; or (iv) the named
parties in any such proceeding (including any impleaded parties) include both
the Indemnifying Person and the Indemnified Person and representation of both
parties by the same counsel would be inappropriate due to actual or potential
differing interests between them. It is understood and agreed that the
Indemnifying Person shall not, in connection with any proceeding or related
proceeding in the same jurisdiction, be liable for the fees and expenses of
more than one separate firm (in addition to any local counsel) for all
Indemnified Persons, and that all such fees and expenses shall be reimbursed as
they are incurred. Any such separate firm (x) for the Initial Purchaser, its
affiliates, directors and officers and any control Persons of the Initial Purchaser
shall be designated in writing by Wachovia Capital Markets, LLC, (y) for any
Holder, its affiliates, directors and officers and any control Persons of such
Holder shall be designated in writing by the Majority Holders and (z) in all
other cases shall be designated in writing by the Company. The Indemnifying
Person shall not be liable for any settlement of any proceeding effected
without its written consent, but if settled with such consent or if there be a
final judgment for the plaintiff, the Indemnifying Person agrees to indemnify
each Indemnified Person from and against any loss or liability by reason of
such settlement or judgment, as required by 

 

19

 

paragraphs (a) and
(b) of this Section 5. Notwithstanding the foregoing sentence, if at
any time an Indemnified Person shall have requested that an Indemnifying Person
reimburse the Indemnified Person for the reasonable fees and expenses of
counsel as contemplated by this paragraph, the Indemnifying Person shall be
liable for any settlement of any proceeding effected without its written
consent if (i) such settlement is entered into more than 45 days after
receipt by the Indemnifying Person of such request, (ii) the Indemnifying
Person shall not have reimbursed the Indemnified Person in accordance with such
request prior to the date of such settlement and (iii) such Indemnified
Person shall have given the Indemnifying Person at least 30 days prior written
notice of its intention to settle. No Indemnifying Person shall, without the
written consent of the Indemnified Person, effect any settlement of any pending
or threatened proceeding in respect of which any Indemnified Person is or could
have been a party and indemnification could have been sought hereunder by such
Indemnified Person, unless such settlement includes an unconditional release of
such Indemnified Person, in form and substance reasonably satisfactory to
such Indemnified Person, from all liability on claims that are the subject
matter of such proceeding.

 

(d)                                 If the indemnification provided for in
paragraphs (a) and (b) above is unavailable to an Indemnified Person
or insufficient in respect of any losses, claims, damages or liabilities
referred to therein, then each Indemnifying Person under such paragraph, in
lieu of indemnifying such Indemnified Person thereunder, shall contribute to
the amount paid or payable by such Indemnified Person as a result of such
losses, claims, damages or liabilities (i) in such proportion as is
appropriate to reflect the relative benefits received by the Issuers from the
offering of the Securities and the Exchange Securities, on the one hand, and by
the Holders from receiving Securities or Exchange Securities registered under
the Securities Act, on the other hand, or (ii) if the allocation provided
by clause (i) is not permitted by applicable law, in such proportion as is
appropriate to reflect not only the relative benefits referred to in clause (i) but
also the relative fault of the Issuers on the one hand and the Holders on the
other in connection with the statements or omissions that resulted in such
losses, claims, damages or liabilities, as well as any other relevant equitable
considerations. The relative fault of the Issuers on the one hand and the
Holders on the other shall be determined by reference to, among other things,
whether the untrue or alleged untrue statement of a material fact or the
omission or alleged omission to state a material fact relates to information
supplied by the Issuers or by the Holders and the parties’ relative intent,
knowledge, access to information and opportunity to correct or prevent such
statement or omission.

 

(e)                                  The Issuers and the Holders agree that it
would not be just and equitable if contribution pursuant to this Section 5
were determined by pro  rata allocation (even if the Holders were
treated as one entity for such purpose) or by any other method of allocation
that does not take account of the equitable considerations referred to in
paragraph (d) above. The amount paid or payable by a party as a result of
the losses, claims, damages and liabilities referred to in paragraph (d) above
shall be deemed to include, subject to the limitations set forth above, any
legal or other expenses reasonably incurred by such party in connection with
any such action or claim. Notwithstanding the provisions of this Section 5,
in no event shall a Holder be required to contribute any amount in excess of
the amount by which the total price at which the Securities or Exchange
Securities sold by such Holder exceeds the amount of any damages that such
Holder has otherwise been required to pay by reason of such untrue or alleged
untrue statement or omission or alleged omission. No Person guilty of
fraudulent misrepresentation (within the meaning 

 

20

 

of
Section 11(f) of the Securities Act) shall be entitled to
contribution from any Person who was not guilty of such fraudulent
misrepresentation.

 

(f)                                    The remedies provided for in this Section 5
are not exclusive and shall not limit any rights or remedies that may otherwise
be available to any Indemnified Person at law or in equity.

 

(g)                                 The indemnity and contribution provisions
contained in this Section 5 shall remain operative and in full force and
effect regardless of (i) any termination of this Agreement, (ii) any
investigation made by or on behalf of the Initial Purchaser or any Holder,
their respective affiliates or any Person controlling the Initial Purchaser or
any Holder, or by or on behalf of the Issuers, their respective affiliates or
the officers or directors of or any Person controlling the Issuers, (iii) acceptance
of any of the Exchange Securities and (iv) any sale of Registrable
Securities pursuant to a Shelf Registration Statement.

 

6.                                       General.

 

(a)                                  No Inconsistent Agreements. The Issuers represent, warrant and agree
that (i) the rights granted to the Holders hereunder do not in any way
conflict with and are not inconsistent with the rights granted to the holders
of any other outstanding securities issued or guaranteed by the Company or any
Guarantor under any other agreement and (ii) neither the Company nor any
Guarantor has entered into, or on or after the date of this Agreement will
enter into, any agreement that is inconsistent with the rights granted to the
Holders of Registrable Securities in this Agreement or otherwise conflicts with
the provisions hereof.

 

(b)                                 Amendments and Waivers. The provisions of this Agreement, including
the provisions of this sentence, may not be amended, modified or
supplemented, and waivers or consents to departures from the provisions hereof may not
be given unless the Issuers have obtained the written consent of Holders of at
least a majority in aggregate principal amount of the outstanding Registrable
Securities affected by such amendment, modification, supplement, waiver or
consent; provided that no amendment, modification, supplement, waiver or
consent to any departure from the provisions of Section 5 hereof shall be
effective as against any Holder of Registrable Securities unless consented to
in writing by such Holder. Any amendments, modifications, supplements, waivers
or consents pursuant to this Section 6(b) shall be by a writing
executed by each of the parties hereto. Any amendments, modifications, supplements,
waivers or consents pursuant to Section 2(c) or any related sections
shall require the written consent of the Market-Maker.

 

(c)                                  Notices. All notices and other communications provided for or permitted
hereunder shall be made in writing by hand-delivery, registered first-class mail,
telex, telecopier, or any courier guaranteeing overnight delivery (i) if
to a Holder or the Market-Maker, at the most current address given by such
Holder or the Market-Maker to the Company by means of a notice given in accordance
with the provisions of this Section 6(c), which address initially is, with
respect to the Initial Purchaser, the address set forth in the Purchase
Agreement; (ii) if to the Issuers, initially at the Company’s address set
forth in the Purchase Agreement and thereafter at such other address, notice of
which is given in accordance with the provisions of this Section 6(c); and
(iii) to such other persons at their respective addresses as provided in
the Purchase Agreement 

 

21

 

and
thereafter at such other address, notice of which is given in accordance with
the provisions of this Section 6(c). All such notices and communications
shall be deemed to have been duly given at the time delivered by hand, if
personally delivered; five Business Days after being deposited in the mail,
postage prepaid, if mailed; when answered back, if telexed; when receipt is
acknowledged, if telecopied; and on the next Business Day if timely delivered
to an air courier guaranteeing overnight delivery. Copies of all such notices,
demands or other communications shall be concurrently delivered by the Person
giving the same to the Trustee, at the address specified in the Indenture.

 

(d)                                 Successors and Assigns. This Agreement shall inure to the benefit
of and be binding upon the successors, assigns and transferees of each of the
parties, including, without limitation and without the need for an express
assignment, subsequent Holders; provided that nothing herein shall be
deemed to permit any assignment, transfer or other disposition of Registrable
Securities in violation of the terms of the Purchase Agreement or the
Indenture. If any transferee of any Holder shall acquire Registrable Securities
in any manner, whether by operation of law or otherwise, such Registrable
Securities shall be held subject to all the terms of this Agreement, and by
taking and holding such Registrable Securities such Person shall be
conclusively deemed to have agreed to be bound by and to perform all of
the terms and provisions of this Agreement and such Person shall be entitled to
receive the benefits hereof. The Initial Purchaser (in its capacity as Initial
Purchaser) shall have no liability or obligation to the Company or the
Guarantors with respect to any failure by a Holder to comply with, or any
breach by any Holder of, any of the obligations of such Holder under this
Agreement.

 

(e)                                  Third Party Beneficiaries. Each Holder shall be a third party
beneficiary to the agreements made hereunder between the Issuers, on the one
hand, and the Initial Purchaser, on the other hand, and shall have the right to
enforce such agreements directly to the extent it deems such enforcement
necessary or advisable to protect its rights or the rights of other Holders
hereunder.

 

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

 

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

 

(h)                                 Governing Law. This Agreement shall be governed by and
construed in accordance with the laws of the State of New York.

 

(i)                                     Miscellaneous. This Agreement contains the entire
agreement between the parties relating to the subject matter hereof and
supersedes all oral statements and prior writings with respect thereto. If any
term, provision, covenant or restriction contained in this Agreement is held by
a court of competent jurisdiction to be invalid, void or unenforceable or
against public policy, the remainder of the terms, provisions, covenants and
restrictions contained herein shall remain in full force and effect and shall
in no way be affected, impaired or 

 

22

 

invalidated.
The Issuers and the Initial Purchaser shall endeavor in good faith negotiations
to replace the invalid, void or unenforceable provisions with valid provisions
the economic effect of which comes as close as possible to that of the invalid,
void or unenforceable provisions.

 

23

 

IN WITNESS WHEREOF, the parties have executed this
Agreement as of the date first written above.

 

	
   

  	
  COMPRESSION POLYMERS
  HOLDING

  CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ JAMES KEISLING

  	
   

  
	
   

  	
   

  	
  Name:

  	
  James Keisling

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Chief Executive Officer

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ GARY SPITZ

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Gary Spitz

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Chief Financial Officer

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  COMPRESSION POLYMERS
  HOLDING II CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ JAMES KEISLING

  	
   

  
	
   

  	
   

  	
  Name:

  	
  James Keisling

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Chief Executive Officer

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ GARY SPITZ

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Gary Spitz

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Chief Financial Officer

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  COMPRESSION POLYMERS CORP.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ JAMES KEISLING

  	
   

  
	
   

  	
   

  	
  Name:

  	
  James Keisling

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Chief Executive Officer

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ GARY SPITZ

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Gary Spitz

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Chief Financial Officer

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  VYCOM CORP.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ JAMES KEISLING

  	
   

  
	
   

  	
   

  	
  Name:

  	
  James Keisling

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Chief Executive Officer

  	
   

  
						

 

24

 

	
   

  	
  By:

  	
  /s/ GARY SPITZ

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Gary Spitz

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Chief Financial Officer

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  CPCAPITOL ACQUISITION CORP.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ JAMES KEISLING

  	
   

  
	
   

  	
   

  	
  Name:

  	
  James Keisling

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Chief Executive Officer

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ GARY SPITZ

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Gary Spitz

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Chief Financial Officer

  	
   

  
						

 

 

Confirmed
and accepted as of the date first

above written:

 

 

WACHOVIA
CAPITAL MARKETS, LLC

 

 

	
  By:

  	
   /s/ RIT AMIN

  	
   

  
	
   

  	
  Name:  Rit Amin

  
	
   

  	
  Title:    Vice President

  

 

25

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