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                                                                    Exhibit 4.27

                                                                  EXECUTION COPY

                               PLIANT CORPORATION

                      11 5/8% SENIOR SECURED NOTES DUE 2009

                   EXCHANGE AND REGISTRATION RIGHTS AGREEMENT

                                                                     May 6, 2005

J.P. MORGAN SECURITIES INC.
270 Park Avenue, 5th floor
New York, New York 10017

Ladies and Gentlemen:

          Pliant Corporation, a Utah corporation (the "COMPANY"), has solicited
consents (the "CONSENTS") from holders of its outstanding 11 1/8% Senior Secured
Discount Notes due 2009 (the "NOTES") to certain amendments to the Notes and the
Indenture (as defined below) upon the terms and subject to the conditions set
forth in the solicitation agent agreement dated April 8, 2005, among the
Company, certain of the Note Guarantors (as defined below) and the Solicitation
Agent (the "SOLICITATION AGENT AGREEMENT") and the Confidential Consent
Solicitation Statement dated April 8, 2005 (as amended, the "Consent
Solicitation"). Capitalized terms used but not defined herein shall have the
meanings given to such terms in the Solicitation Agent Agreement.

          The Notes were issued pursuant to an indenture (the "INDENTURE") dated
as of February 17, 2004, by and among the Company, Pliant Corporation
International, Pliant Film Products of Mexico, Inc., Pliant Solutions
Corporation ("PLIANT SOLUTIONS"), Pliant Packaging of Canada, LLC, Uniplast
Holdings, Inc., Uniplast U.S., Inc., Turex, Inc. ("TUREX"), Pierson Industries,
Inc. ("PIERSON"), Uniplast Midwest, Inc. ("UNIPLAST MIDWEST") and Uniplast
Industries Co. (collectively, but excluding the Company, Pliant Solutions,
Turex, Pierson and Uniplast Midwest, the "NOTE GUARANTORS") and Wilmington Trust
Company, as trustee (the "TRUSTEE"). If Consents are received from the holders
of at least 66 2/3% in principal amount at maturity of the Notes and are
accepted by the Company, the Indenture will be amended and restated (the
"AMENDED AND RESTATED INDENTURE"). Notes whose holders deliver Consents that are
accepted by the Company are referred to herein as "Consenting Notes". Notes
whose holders do not deliver Consents are referred to herein as "Non-Consenting
Notes". The date on which the Amended and Restated Indenture goes into effect is
referred to herein as the "Closing Date".

          As an inducement to the Solicitation Agent to enter into the
Solicitation Agent Agreement and in satisfaction of a condition to the
obligations of the Solicitation Agent thereunder, the Company and the Note
Guarantors agree with the Solicitation Agent, for the benefit of the holders
(and the Market-Maker (as defined herein)) of the Consenting Notes, the Exchange
Notes (as defined herein) and the Private Exchange Notes (as defined herein)
(collectively, the "HOLDERS"), as follows:

          1. REGISTERED EXCHANGE OFFER. Unless, because of any change in law or
applicable interpretations thereof by the Commission's staff, the Company and
the Note Guarantors determine in good faith after consultation with counsel that
they are not permitted to effect the Registered Exchange Offer (as defined
herein), the Company and the Note Guarantors shall (i) prepare and, not later
than 75 days following the Closing Date, file with the Commission a registration
statement (the "EXCHANGE OFFER REGISTRATION STATEMENT") on an appropriate form

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under the Securities Act with respect to a proposed offer to the Holders of the
Consenting Notes (the "REGISTERED EXCHANGE OFFER") to issue and deliver to such
Holders, in exchange for the Consenting Notes, a like aggregate principal amount
of debt securities of the Company (the "EXCHANGE NOTES") that are identical in
all material respects to the Consenting Notes, except for the transfer
restrictions relating to the Consenting Notes and provisions relating to
liquidated damages or additional interest, (ii) use commercially reasonable
efforts to cause the Exchange Offer Registration Statement to become effective
under the Securities Act no later than 150 days after the Closing Date and the
Registered Exchange Offer to be consummated no later than 190 days after the
Closing Date and (iii) keep the Registered Exchange Offer open for not less than
20 business days (or longer, if required by applicable law) after the date on
which notice of the Registered Exchange Offer is mailed to the Holders (such
period being called the "EXCHANGE OFFER REGISTRATION PERIOD"). The Exchange
Notes will be issued under the Amended and Restated Indenture or an indenture
(the "EXCHANGE NOTES INDENTURE") among the Company, the Note Guarantors and the
Trustee or such other bank or trust company that is reasonably satisfactory to
the Solicitation Agent, as trustee (the "EXCHANGE NOTES TRUSTEE"), such
indenture to be identical in all material respects to the Amended and Restated
Indenture, except for the transfer restrictions relating to the Consenting Notes
and provisions relating to liquidated damages or additional interest (as
described above). All references in this Agreement to "prospectus" shall, except
where the context otherwise requires, include any prospectus (or amendment or
supplement thereto) filed with the Commission pursuant to Section 6 of this
Agreement.

          Upon the effectiveness of the Exchange Offer Registration Statement,
the Company shall promptly commence the Registered Exchange Offer, it being the
objective of such Registered Exchange Offer to enable each Holder electing to
exchange Consenting Notes for Exchange Notes (assuming that such Holder (a) is
not an affiliate (within the meaning of Rule 405 under the Securities Act) of
the Company or an Exchanging Dealer (as defined herein) not complying with the
requirements of the next sentence, (b) acquires the Exchange Notes in the
ordinary course of such Holder's business, (c) has no arrangements or
understandings with any person to participate in the distribution of the
Exchange Notes and (d) if such Holder is not an Exchanging Dealer (as defined
below), it is not engaged in, and does not intend to engage in, a distribution
of the Exchange Notes) and to trade such Exchange Notes from and after their
receipt without any limitations or restrictions under the Securities Act and
without material restrictions under the securities laws of the several states of
the United States. The Company, the Note Guarantors, the Solicitation Agent and
each Exchanging Dealer acknowledge that, pursuant to current interpretations by
the Commission's staff of Section 5 of the Securities Act, each Holder that is a
broker-dealer electing to exchange Consenting Notes, acquired for its own
account as a result of market-making activities or other trading activities, for
Exchange Notes (an "EXCHANGING DEALER"), is required to deliver a prospectus
containing substantially the information set forth in Annex A hereto on the
cover, in Annex B hereto in the "Exchange Offer Procedures" section and the
"Purpose of the Exchange Offer" section (if any) and in Annex C hereto in the
"Plan of Distribution" section of such prospectus in connection with a sale of
any such Exchange Notes received by such Exchanging Dealer pursuant to the
Registered Exchange Offer.

          If, prior to the consummation of the Registered Exchange Offer, any
Holder shall notify the Company in writing that it holds any Consenting Notes
acquired by it that have, or that are reasonably likely to be determined to
have, the status of an unsold allotment in an initial distribution, or any
Holder notifies the Company in writing that it believes that it is not entitled
to participate in the Registered Exchange Offer (other than because it has an
understanding or

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arrangement with any person to participate in the distribution of the Exchange
Notes) and such Holder has not received a written opinion from counsel to the
Company, reasonably acceptable to such Holder to the effect that such Holder is
legally permitted to participate in the Registered Exchange Offer, the Company
shall, upon the request of any such Holder, simultaneously with the delivery of
the Exchange Notes in the Registered Exchange Offer, issue and deliver to any
such Holder, in exchange for the Consenting Notes held by such Holder (the
"PRIVATE EXCHANGE"), a like aggregate principal amount of debt securities of the
Company (the "PRIVATE EXCHANGE NOTES") that are identical in all material
respects to the Exchange Notes, except for the transfer restrictions relating to
such Private Exchange Notes and provisions relating to liquidated damages and
additional interest. The Private Exchange Notes will be issued under the same
indenture as the Exchange Notes, and, if permitted under the policies
established at such time by the CUSIP Service Bureau of Standard & Poor's
Corporation, the Company shall use commercially reasonable efforts to cause the
Private Exchange Notes to bear the same CUSIP number as the Exchange Notes.

          In connection with the Registered Exchange Offer, the Company shall:

          (a) mail to each Holder a copy of the prospectus forming part of the
     Exchange Offer Registration Statement, together with an appropriate letter
     of transmittal and related documents;

          (b) keep the Registered Exchange Offer open for not less than 20
     business days (or longer, if required by applicable law) after the date on
     which notice of the Registered Exchange Offer is mailed to the Holders;

          (c) utilize the services of a depositary for the Registered Exchange
     Offer with an address in the Borough of Manhattan, The City of New York;

          (d) permit Holders to withdraw tendered Consenting Notes at any time
     prior to the close of business, New York City time, on the last business
     day on which the Registered Exchange Offer shall remain open; and

          (e) otherwise comply in all respects with all laws that are applicable
     to the Registered Exchange Offer.

          As soon as practicable after the close of the Registered Exchange
Offer and any Private Exchange, as the case may be, the Company shall:

          (a) accept for exchange all Consenting Notes tendered and not validly
     withdrawn pursuant to the Registered Exchange Offer and the Private
     Exchange;

          (b) deliver to the Trustee for cancelation all Consenting Notes so
     accepted for exchange; and

          (c) cause the Trustee or the Exchange Notes Trustee, as the case may
     be, promptly to authenticate and deliver to each Holder, Exchange Notes or
     Private Exchange Notes, as the case may be, equal in principal amount at
     maturity to the Consenting Notes of such Holder so accepted for exchange.

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          The Company and the Note Guarantors shall use commercially reasonable
efforts to keep the Exchange Offer Registration Statement effective and to amend
and supplement the prospectus contained therein in order to permit such
prospectus to be used by all persons (including Exchanging Dealers) subject to
the prospectus delivery requirements of the Securities Act for 180 days after
the consummation of the Registered Exchange Offer (such 180 days, the
"APPLICABLE PERIOD").

          Subject to limited exceptions, the Amended and Restated Indenture or
the Exchange Notes Indenture, as the case may be, shall provide that the
Consenting Notes, the Exchange Notes, the Non-Consenting Notes and the Private
Exchange Notes shall vote and consent together on all matters as one class and
that none of the Consenting Notes, the Exchange Notes, the Non-Consenting Notes
or the Private Exchange Notes will have the right to vote or consent as a
separate class on any matter.

          Interest on each Exchange Note and Private Exchange Note issued
pursuant to the Registered Exchange Offer and in the Private Exchange will
accrue from the last interest payment date on which interest was paid on the
Consenting Notes surrendered in exchange therefor or, if no interest has been
paid on the Consenting Notes, from the Closing Date.

          Each Holder participating in the Registered Exchange Offer shall be
required to represent to the Company and the Note Guarantors in writing (which
may be contained in the applicable letter of transmittal) that at the time of
the consummation of the Registered Exchange Offer (i) any Exchange Notes
received by such Holder will be acquired in the ordinary course of business,
(ii) such Holder will have no arrangements or understanding with any person to
participate in the distribution of the Consenting Notes or the Exchange Notes
within the meaning of the Securities Act, (iii) such Holder is not an affiliate
(within the meaning of Rule 405 under the Securities Act) of the Company or, if
it is such an affiliate, such Holder will comply with the registration and
prospectus delivery requirements of the Securities Act to the extent applicable
and (iv) if such Holder is a broker-dealer, that it will deliver a prospectus in
connection with any resale of such Exchange Notes during the Applicable Period.

          Notwithstanding any other provisions hereof, the Company and the Note
Guarantors will ensure that (i) any Exchange Offer Registration Statement and
any amendment thereto and any prospectus forming part thereof and any supplement
thereto complies in all material respects with the Securities Act and the rules
and regulations of the Commission thereunder, (ii) any Exchange Offer
Registration Statement and any amendment thereto does not, when it becomes
effective, contain an untrue statement of a material fact or omit to state a
material fact required to be stated therein or necessary to make the statements
therein not misleading and (iii) any prospectus forming part of any Exchange
Offer Registration Statement, and any supplement to such prospectus, does not,
as of the consummation of the Registered Exchange Offer, 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.

          2. SHELF REGISTRATION. If (i) because of any change in law or
applicable interpretations thereof by the Commission's staff the Company and the
Note Guarantors determine in good faith after consultation with counsel that
they are not permitted to effect the Registered Exchange Offer as contemplated
by Section 1 hereof, or (ii) any Consenting Notes validly tendered pursuant to
the Registered Exchange Offer are not exchanged for Exchange

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Notes within 190 days after the Closing Date, or (iii) the Solicitation Agent so
requests with respect to Consenting Notes or Private Exchange Notes not eligible
to be exchanged for Exchange Notes in the Registered Exchange Offer, or (iv) any
applicable law or interpretations do not permit any Holder to participate in the
Registered Exchange Offer (other than because such Holder has an understanding
or arrangement with any person to participate in the distribution of the
Exchange Notes), or (v) any Holder that participates in the Registered Exchange
Offer notifies the Company in writing within 30 days following the consummation
of the Registered Exchange Offer that such Holder may not resell the Exchange
Notes acquired by it in the Registered Exchange Offer to the public without
delivering a prospectus and the prospectus contained in the Exchange Offer
Registration Statement is not legally available for such resales by such Holder,
or (vi) the Company so elects, then the following provisions shall apply:

          (a) The Company and the Note Guarantors shall use commercially
     reasonable efforts to file as promptly as practicable (but in no event more
     than 60 days after so required or requested pursuant to this Section 2;
     PROVIDED that in the case of any filing in response to clause (i) or (iii)
     or (iv) of the preceding paragraph, the Company and the Note Guarantors
     shall not be required to make any such filing earlier than 75 days
     following the Closing Date (the date of such filing, the "SHELF FILING
     DATE")) with the Commission, and thereafter shall use commercially
     reasonable efforts to cause to be declared effective on or prior to 115
     days after the Shelf Filing Date (but, in the case of any filing in
     response to clause (i), (iii), (iv) or (vi) of the preceding paragraph, in
     no event earlier than the 190th day after the Closing Date), a shelf
     registration statement on an appropriate form under the Securities Act
     relating to the offer and sale of the Transfer Restricted Notes (as defined
     below) by the Holders thereof from time to time in accordance with the
     methods of distribution set forth in such registration statement
     (hereafter, a "SHELF REGISTRATION STATEMENT" and, together with any
     Exchange Offer Registration Statement, a "REGISTRATION STATEMENT").

          (b) The Company and the Note Guarantors shall use commercially
     reasonable efforts to keep the Shelf Registration Statement continuously
     effective in order to permit the prospectus forming part thereof to be used
     by Holders of Transfer Restricted Notes for a period ending on the earlier
     of (i) two years from the Closing Date or such shorter period that will
     terminate when all the Transfer Restricted Notes covered by the Shelf
     Registration Statement have been sold pursuant thereto and (ii) the date on
     which the Consenting Notes become eligible for resale without volume
     restrictions pursuant to Rule 144 under the Securities Act (in any such
     case, such period being called the "SHELF REGISTRATION PERIOD"). The
     Company and the Note Guarantors shall be deemed not to have used
     commercially reasonable efforts to keep the Shelf Registration Statement
     effective during the requisite period if any of them voluntarily take any
     action that would result in Holders of Transfer Restricted Notes covered
     thereby not being able to offer and sell such Transfer Restricted Notes
     during that period, unless (A) such action is required by applicable law or
     (B) such action was permitted by Section 2(c).

          (c) Notwithstanding the provisions of Section 2(b) (but subject to the
     provisions of Section 3(b)), the Company and the Note Guarantors may for
     valid business reasons, including without limitation, a potential
     acquisition, divestiture of assets or other material corporate transaction,
     issue a notice that the Shelf Registration Statement is no longer effective
     or the prospectus included therein is no longer usable for offers and sales
     of Transfer Restricted Notes and may issue any notice suspending use of the
     Shelf

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     Registration Statement required under applicable securities laws to be
     issued. The provisions of this Section 2(c) shall also be applicable to the
     Exchange Offer Registration Statement during the Applicable Period;
     PROVIDED that the Applicable Period shall be extended for the number of
     days (which shall not exceed 60) that the use of the Exchange Offer
     Registration Statement is suspended.

          (d) Notwithstanding any other provisions hereof, the Company and the
     Note Guarantors shall ensure that (i) any Shelf Registration Statement and
     any amendment thereto and any prospectus forming part thereof and any
     supplement thereto complies in all material respects with the Securities
     Act and the rules and regulations of the Commission thereunder, (ii) any
     Shelf Registration Statement and any amendment thereto (in either case,
     other than with respect to information included therein in reliance upon or
     in conformity with written information furnished to the Company by or on
     behalf of any Holder specifically for use therein (the "HOLDERS'
     INFORMATION")) does not contain an untrue statement of a material fact or
     omit to state a material fact required to be stated therein or necessary to
     make the statements therein not misleading and (iii) any prospectus forming
     part of any Shelf Registration Statement, and any supplement to such
     prospectus (in either case, other than with respect to Holders'
     Information), does 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.

          3. LIQUIDATED DAMAGES. (a) The parties hereto agree that the Holders
of Transfer Restricted Notes will suffer damages if the Company and the Note
Guarantors fail to fulfill their obligations under Section 1 or Section 2, as
applicable, and that it would not be feasible to ascertain the extent of such
damages. Accordingly, if (i) the applicable Registration Statement is not filed
with the Commission on or prior to the date specified in this Agreement, (ii)
the Exchange Offer Registration Statement or the Shelf Registration Statement,
as the case may be, is not declared effective on or prior to the date specified
in this Agreement, (iii) the Registered Exchange Offer is not consummated on or
prior to 190 days after the Closing Date (other than in the event the Company is
requested or required or elected to file a Shelf Registration Statement), or
(iv) the Shelf Registration Statement is filed and declared effective on or
prior to the date specified in this Agreement but shall thereafter cease to be
effective (at any time that the Company and the Note Guarantors are obligated to
maintain the effectiveness thereof) without being succeeded within 60 days by an
additional Registration Statement or a post-effective amendment to the Shelf
Registration Statement filed and declared effective (each such event referred to
in clauses (i) through (iv), a "REGISTRATION DEFAULT"), the interest rate on the
Transfer Restricted Notes will be increased by 1.00% per annum (the amount paid
as a result of such increase being herein referred to as "liquidated damages")
until (i) the applicable Registration Statement is filed, (ii) the Exchange
Offer Registration Statement is declared effective and the Registered Exchange
Offer is consummated, (iii) the Shelf Registration Statement is declared
effective or (iv) the Shelf Registration Statement again becomes effective, an
additional Registration Statement becomes effective or a post-effective
amendment to the Shelf Registration Statement becomes effective, as the case may
be. Following the cure of all Registration Defaults, the accrual of liquidated
damages will cease. As used herein, the term "TRANSFER RESTRICTED NOTES" means
(i) each Consenting Note until the date on which such Consenting Note has been
exchanged for a freely transferable Exchange Note in the Registered Exchange
Offer (it being understood that the requirement that an Exchanging Dealer
deliver a prospectus in connection with sales of Exchange Notes acquired in the
Registered Exchange

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Offer shall not mean that the Exchange Note is not freely transferable for
purposes of this Section 3), (ii) each Consenting Note or Private Exchange Note
until the date on which it has been effectively registered under the Securities
Act and disposed of in accordance with the Shelf Registration Statement or (iii)
each Consenting Note or Private Exchange Note until the date on which it is
distributed to the public pursuant to Rule 144 under the Securities Act or is
saleable pursuant to Rule 144(k) under the Securities Act. Notwithstanding
anything to the contrary in this Section 3(a), the Company shall not be required
to pay liquidated damages to a Holder of Transfer Restricted Notes if such
Holder failed to comply with its obligations to make the representations set
forth in the second to last paragraph of Section 1 or failed to provide the
information required to be provided by it, if any, pursuant to Section 4(o).

          (b) Notwithstanding the foregoing provisions of Section 3(a), the
Company and the Note Guarantors may for valid business reasons, including
without limitation, a potential acquisition, divestiture of assets or other
material corporate transaction, issue a notice that the Shelf Registration
Statement is no longer effective or the prospectus included therein is no longer
usable for offers and sales of Transfer Restricted Notes and may issue any
notice suspending use of the Shelf Registration Statement required under
applicable securities laws to be issued and, in the event that the aggregate
number of days in any consecutive twelve-month period for which all such notices
are issued and effective exceeds 60 days in the aggregate, then the interest
rate on the Transfer Restricted Notes covered by the Shelf Registration
Statement will be increased by 1.00% per annum (the amount paid as a result of
such increase being herein referred to as "liquidated damages"). Upon the
Company and the Note Guarantors declaring that the Shelf Registration Statement
is useable after the period of time described in the preceding sentence, accrual
of liquidated damages shall cease; PROVIDED, HOWEVER, that if after any such
cessation of the accrual of liquidated damages the Shelf Registration Statement
again ceases to be useable beyond the period permitted above, liquidated damages
will again accrue pursuant to the foregoing provisions.

          (c) The Company shall notify the Trustee and the Paying Agent under
the Indenture immediately upon the happening of each and every Registration
Default. Each obligation to pay liquidated damages shall be deemed to accrue
from and including the date of the applicable Registration Default. The
liquidated damages due shall be payable on each interest payment date and in the
form specified by the Amended and Restated Indenture and the Consenting Notes to
the record holder entitled to receive the interest payment to be made on such
date.

          (d) The parties hereto agree that the liquidated damages provided for
in this Section 3 constitute a reasonable estimate of and are intended to
constitute the sole damages that will be suffered by Holders of Transfer
Restricted Notes by reason of the failure of (i) the Shelf Registration
Statement or the Exchange Offer Registration Statement to be filed, (ii) the
Shelf Registration Statement to remain effective or (iii) the Exchange Offer
Registration Statement to be declared effective and the Registered Exchange
Offer to be consummated, in each case to the extent required by this Agreement.

          4. REGISTRATION PROCEDURES. In connection with any Registration
Statement, the following provisions shall apply:

          (a) The Company shall (i) furnish to the Solicitation Agent, prior to
     the filing thereof with the Commission, a copy of the Exchange Offer
     Registration Statement and

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     each amendment thereof and each supplement, if any, to the prospectus
     included therein and shall use commercially reasonable efforts to reflect
     in each such document, when so filed with the Commission, such comments as
     the Solicitation Agent may reasonably propose; (ii) include information
     substantially as set forth in Annex A hereto on the cover, in Annex B
     hereto in the "Exchange Offer Procedures" section and the "Purpose of the
     Exchange Offer" section (if any) and in Annex C hereto in the "Plan of
     Distribution" section of the prospectus forming a part of the Exchange
     Offer Registration Statement, and include information substantially as set
     forth in Annex D hereto in the Letter of Transmittal delivered pursuant to
     the Registered Exchange Offer; and (iii) if requested in writing by the
     Solicitation Agent, include the information required by Items 507 or 508 of
     Regulation S-K, as applicable, in the prospectus forming a part of the
     Exchange Offer Registration Statement.

          (b) The Company shall advise the Solicitation Agent, each Exchanging
     Dealer and the Holders (if applicable) and, if requested by any such
     person, confirm such advice in writing (which advice pursuant to clauses
     (ii)-(v) hereof shall be accompanied by an instruction to suspend the use
     of the prospectus until the requisite changes have been made):

               (i) when any Registration Statement and any amendment thereto has
          been filed with the Commission and when such Registration Statement or
          any post-effective amendment thereto has become effective;

               (ii) of any request by the Commission for amendments or
          supplements to any Registration Statement or the prospectus included
          therein or for additional information;

               (iii) of the issuance by the Commission of any stop order
          suspending the effectiveness of any Registration Statement or the
          initiation of any proceedings for that purpose;

               (iv) of the receipt by the Company of any notification with
          respect to the suspension of the qualification of the Consenting
          Notes, the Exchange Notes or the Private Exchange Notes for sale in
          any jurisdiction or the initiation or threatening of any proceeding
          for such purpose; and

               (v) of the happening of any event that requires the making of any
          changes in any Registration Statement or the prospectus included
          therein in order that the statements therein are not misleading and do
          not omit to state a material fact required to be stated therein or
          necessary to make the statements therein not misleading.

          (c) The Company and the Note Guarantors will make every reasonable
     effort to obtain the withdrawal at the earliest possible time of any order
     suspending the effectiveness of any Registration Statement.

          (d) The Company will furnish to each Holder of Transfer Restricted
     Notes included within the coverage of any Shelf Registration Statement,
     without charge, at least one conformed copy of such Shelf Registration
     Statement and any post-effective amendment thereto, including financial
     statements and schedules and, if any such Holder

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     so requests in writing, all exhibits thereto (including those, if any,
     incorporated by reference).

          (e) The Company will, during the Shelf Registration Period, promptly
     deliver to each Holder of Transfer Restricted Notes included within the
     coverage of any Shelf Registration Statement, without charge, as many
     copies of the prospectus (including each preliminary prospectus) included
     in such Shelf Registration Statement and any amendment or supplement
     thereto as such Holder may reasonably request; and the Company consents to
     the use of such prospectus or any amendment or supplement thereto by each
     of the selling Holders of Transfer Restricted Notes in connection with the
     offer and sale of the Transfer Restricted Notes covered by such prospectus
     or any amendment or supplement thereto.

          (f) The Company will furnish to the Solicitation Agent, each
     Exchanging Dealer who so requests in writing, and to any other Holder who
     so requests in writing, without charge, at least one conformed copy of the
     Exchange Offer Registration Statement and any post-effective amendment
     thereto, including financial statements and schedules and, if the
     Solicitation Agent or Exchanging Dealer or any such Holder so requests in
     writing, all exhibits thereto (including those, if any, incorporated by
     reference).

          (g) The Company will, during the Exchange Offer Registration Period or
     the Shelf Registration Period, as applicable, promptly deliver to the
     Solicitation Agent, each Exchanging Dealer and such other persons that are
     required to deliver a prospectus following the Registered Exchange Offer,
     without charge, as many copies of the final prospectus included in the
     Exchange Offer Registration Statement or the Shelf Registration Statement
     and any amendment or supplement thereto as the Solicitation Agent, such
     Exchanging Dealer or other persons may reasonably request in writing; and
     the Company and the Note Guarantors consent to the use of such prospectus
     or any amendment or supplement thereto by the Solicitation Agent, such
     Exchanging Dealer or other persons, as applicable, as aforesaid.

          (h) Prior to the effective date of any Registration Statement, the
     Company and the Note Guarantors will use commercially reasonable efforts to
     register or qualify, or cooperate with the Holders of Consenting Notes,
     Exchange Notes or Private Exchange Notes included therein and their
     respective counsel in connection with the registration or qualification of,
     such Consenting Notes, Exchange Notes or Private Exchange Notes for offer
     and sale under the securities or blue sky laws of such jurisdictions as any
     such Holder 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 Consenting Notes, Exchange Notes or Private Exchange
     Notes covered by such Registration Statement; PROVIDED that the Company and
     the Note Guarantors will not be required to qualify generally to do
     business in any jurisdiction where they are not then so qualified or to
     take any action which would subject them to general service of process or
     to taxation in any such jurisdiction where they are not then so subject.

          (i) The Company and the Note Guarantors will cooperate with the
     Holders of Consenting Notes, Exchange Notes or Private Exchange Notes to
     facilitate the timely preparation and delivery of certificates representing
     Consenting Notes, Exchange Notes or Private Exchange Notes to be sold
     pursuant to any Registration Statement free of any restrictive legends and
     in such denominations and registered in such names as the

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     Holders thereof may request in writing prior to sales of Consenting Notes,
     Exchange Notes or Private Exchange Notes pursuant to such Registration
     Statement.

          (j) If any event contemplated by Section 4(b)(ii) through (v) occurs
     during the period for which the Company and the Note Guarantors are
     required to maintain an effective Registration Statement, the Company and
     the Note Guarantors will promptly prepare and file with the Commission a
     post-effective amendment to the Registration Statement or a supplement to
     the related prospectus or file any other required document so that, as
     thereafter delivered to purchasers of the Consenting Notes, Exchange Notes
     or Private Exchange Notes from a Holder, 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.

          (k) If any event contemplated by Section 2(c) or 3(b) occurs during
     the period for which the Company and the Note Guarantors are required to
     maintain an effective Registration Statement, the Company and the Note
     Guarantors will, to the extent required after the end of the applicable
     periods referred to in Sections 2(c) and 3(b), promptly prepare and file
     with the Commission a post-effective amendment to the Registration
     Statement or a supplement to the related prospectus or file any other
     required document so that, as thereafter delivered to purchasers of the
     Consenting Notes, Exchange Notes or Private Exchange Notes from a Holder,
     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.

          (l) Not later than the effective date of the applicable Registration
     Statement, the Company will provide a CUSIP number for the Consenting
     Notes, the Exchange Notes and the Private Exchange Notes, as the case may
     be, and provide the applicable trustee with certificates for the Consenting
     Notes, the Exchange Notes or the Private Exchange Notes, as the case may
     be, in a form eligible for deposit with The Depository Trust Company.

          (m) The Company and the Note Guarantors will comply with all
     applicable rules and regulations of the Commission and the Company and the
     Note Guarantors will make generally available to their security holders as
     soon as practicable after the effective date of the applicable Registration
     Statement an earnings statement of the Company satisfying the provisions of
     Section 11(a) of the Securities Act; PROVIDED that in no event shall such
     earning statement be delivered later than 45 days after the end of a
     12-month period (or 90 days, if such period is a fiscal year) beginning
     with the first month of the Company's first fiscal quarter commencing after
     the effective date of the applicable Registration Statement, which
     statement shall cover such 12-month period.

          (n) The Company and the Note Guarantors will cause the Amended and
     Restated Indenture or the Exchange Notes Indenture, as the case may be, to
     be qualified under the Trust Indenture Act as required by applicable law in
     a timely manner.

          (o) The Company may require each Holder of Transfer Restricted Notes
     to be registered pursuant to any Shelf Registration Statement to furnish to
     the Company such information concerning the Holder and the distribution of
     such Transfer Restricted Notes

<Page>

                                                                              11

     as the Company may from time to time reasonably require for inclusion in
     such Shelf Registration Statement, and the Company may exclude from such
     registration the Transfer Restricted Notes of any Holder that fails to
     furnish such information within a reasonable time after receiving such
     request. Each Holder of Transfer Restricted Notes as to which a Shelf
     Registration Statement is being effected, by its participation in the Shelf
     Registration Statement, shall be deemed to agree to furnish the Company and
     the Note Guarantors all information concerning such Holder required to be
     described in order to make the information previously furnished by such
     Holder to the Company and the Note Guarantors not materially misleading.

          (p) In the case of (A) a Shelf Registration Statement, each Holder of
     Transfer Restricted Notes to be registered pursuant thereto agrees by
     acquisition of such Transfer Restricted Notes that, and (B) the Exchange
     Offer Registration Statement during the Applicable Period only, each Holder
     of Exchange Notes subject to the prospectus delivery requirements of the
     Securities Act agrees that, upon receipt of any notice from the Company
     pursuant to Sections 2(c), 3(b) or 4(b)(ii) through (v), such Holder will
     discontinue disposition of such Transfer Restricted Notes or Exchange
     Notes, as applicable, until such Holder's receipt of copies of the
     supplemental or amended prospectus contemplated by Section 4(j) or 4(k), as
     the case may be, or until advised in writing by the Company that the use of
     the applicable prospectus may be resumed (the "Advice"). If the Company
     shall give any notice under Sections 2(c), 3(b) or 4(b)(ii) through (v)
     during the period that the Company is required to maintain an effective
     Registration Statement (the "EFFECTIVENESS PERIOD"), such Effectiveness
     Period shall be extended by the number of days during such period from and
     including the date of the giving of such notice to and including the date
     when each seller of Transfer Restricted Notes or Exchange Notes, as
     applicable, covered by such Registration Statement shall have received (x)
     the copies of the supplemental or amended prospectus contemplated by
     Section 4(j) or 4(k), as the case may be, (if an amended or supplemental
     prospectus is required) or (y) the Advice (if no amended or supplemental
     prospectus is required).

          (q) In the case of a Shelf Registration Statement, the Company and the
     Note Guarantors shall enter into such customary agreements (including, if
     requested by Holders of a majority in aggregate principal amount of the
     Consenting Notes, an underwriting agreement in customary form) and take all
     such other action, if any, as Holders of a majority in aggregate principal
     amount of the Consenting Notes, Exchange Notes and Private Exchange Notes
     covered by the Shelf Registration Statement or the managing underwriters
     (if any) shall reasonably request in order to facilitate any disposition of
     Consenting Notes, Exchange Notes or Private Exchange Notes pursuant to such
     Shelf Registration Statement. Notwithstanding anything to the contrary
     contained in this Agreement, the Company and the Note Guarantors shall not
     be required to engage in more than one underwritten offering pursuant to
     this Agreement.

          (r) In the case of a Shelf Registration Statement, the Company shall
     (i) make reasonably available for inspection by a representative of, and
     Special Counsel (as defined below) acting for, Holders of a majority in
     aggregate principal amount of the Consenting Notes, Exchange Notes and
     Private Exchange Notes covered by the Shelf Registration Statement and any
     underwriter participating in any disposition of Consenting Notes, Exchange
     Notes or Private Exchange Notes pursuant to such Shelf Registration
     Statement, all relevant financial and other records, pertinent corporate
     documents and

<Page>

                                                                              12

     properties of the Company and its subsidiaries and (ii) use commercially
     reasonable efforts to have its officers, directors, employees, accountants
     and counsel supply all relevant information reasonably requested by such
     representative, Special Counsel or any such underwriter (an "INSPECTOR") in
     connection with such Shelf Registration Statement.

          (s) In the case of a Shelf Registration Statement, the Company shall,
     if requested by Holders of a majority in aggregate principal amount of the
     Consenting Notes, Exchange Notes and Private Exchange Notes covered by the
     Shelf Registration Statement, their Special Counsel or the managing
     underwriters (if any) in connection with such Shelf Registration Statement,
     use commercially reasonable efforts to cause (i) its counsel to deliver an
     opinion relating to the Shelf Registration Statement and the Consenting
     Notes, Exchange Notes or Private Exchange Notes, as applicable, in
     customary form, (ii) its officers to execute and deliver all customary
     documents and certificates requested by Holders of a majority in aggregate
     principal amount of the Consenting Notes, Exchange Notes and Private
     Exchange Notes being sold, its Special Counsel or the managing underwriters
     (if any) and (iii) its independent public accountants to provide a comfort
     letter or letters in customary form, subject to receipt of appropriate
     documentation as contemplated, and only if permitted, by Statement of
     Auditing Standards No. 72.

          5. REGISTRATION EXPENSES. The Company and the Note Guarantors will
jointly and severally bear all expenses incurred in connection with the
performance of their obligations under Sections 1, 2, 3 and 4 and the Company
will reimburse the Solicitation Agent or the Holders, as applicable, for the
reasonable fees and disbursements of one firm of attorneys (in addition to any
local counsel) chosen by the Holders of a majority in aggregate principal amount
of the Consenting Notes, the Exchange Notes and the Private Exchange Notes
covered by each Registration Statement (the "SPECIAL COUNSEL") acting for the
Solicitation Agent or Holders in connection therewith. The Company and the Note
Guarantors are not required to pay any commissions or concessions of any
broker-dealers.

          6. MARKET-MAKING. (a) For so long as any of the Consenting Notes,
Exchange Notes or Private Exchange Notes are outstanding and JPMorgan (in such
capacity, the "Market-Maker") or any of its affiliates (as defined in the rules
and regulations of the Commission) owns any equity securities of the Company,
the Note Guarantors or any of their affiliates and proposes to make a market in
the Consenting Notes, Exchange Notes or Private Exchange Notes as part of its
business in the ordinary course, the following provisions shall apply for the
sole benefit of the Market-Maker:

          (i) The Company and the Note Guarantors shall (A) on the date that the
     Exchange Offer Registration Statement or, if required hereby, the Shelf
     Registration Statement, is filed with the Commission, file a registration
     statement (the "Market-Making Registration Statement") (which may be the
     Exchange Offer Registration Statement or the Shelf Registration Statement
     if permitted by the rules and regulations of the Commission) and use
     commercially reasonable efforts to cause such Market-Making Registration
     Statement to be declared effective by the Commission on or prior to the
     consummation of the Exchange Offer or the effective date of the Shelf
     Registration Statement, as applicable; (B) periodically amend such
     Market-Making Registration Statement so that the information contained
     therein complies with the requirements of Section 10(a) under the
     Securities Act; (C) if reasonably requested in writing by the

<Page>

                                                                              13

     Market-Maker, within 45 days following the end of each of the Company's
     fiscal quarters (other than the fourth quarter), file a supplement to the
     prospectus contained in the Market-Making Registration Statement that sets
     forth the financial results of the Company for such quarter; (D) amend the
     Market-Making Registration Statement or amend or supplement the related
     prospectus when necessary to reflect any material changes in the
     information provided therein; and (E) amend the Market-Making Registration
     Statement when required to do so in order to comply with Section 10(a)(3)
     of the Securities Act; PROVIDED, HOWEVER, that (1) prior to filing the
     Market-Making Registration Statement, any amendment thereto or any
     amendment or supplement to the related prospectus (other than a supplement
     filed pursuant to clause (C) of this paragraph unless the Market-Maker
     reasonably requests), the Company will furnish to the Market-Maker copies
     of all such documents proposed to be filed, which documents will be subject
     to the review of the Market-Maker and its counsel and (2) the Company and
     the Note Guarantors will not file the Market-Making Registration Statement,
     any amendment thereto or any supplement to the related prospectus (other
     than a supplement filed pursuant to clause (C) of this paragraph unless the
     Market-Maker reasonably requests) to which the Market-Maker and its counsel
     shall reasonably object unless the Company and the Note Guarantors are
     advised by counsel that such Market-Making Registration Statement,
     amendment or supplement is required to be filed under applicable securities
     laws and the Company will provide the Market-Maker and its counsel with
     copies of the Market-Making Registration Statement and each amendment and
     supplement filed.

          (ii) The Company shall notify the Market-Maker and, if requested by
     the Market-Maker, confirm such advice in writing, (A) when any
     Market-Making Registration Statement, any post-effective amendment to the
     Market-Making Registration Statement or any amendment or supplement to the
     related prospectus has been filed, and, with respect to any post-effective
     amendment, when the same has become effective; (B) of any request by the
     Commission 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
     Commission 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 the suspension of the qualification of the Consenting Notes
     or Exchange Notes for sale in any jurisdiction or the initiation or
     threatening of any proceedings for such purpose; (E) of the happening of
     any event that makes any statement made in the Market-Making Registration
     Statement, the related prospectus or any amendment or supplement thereto
     untrue or that requires the making of any changes in the Market-Making
     Registration Statement, such prospectus or any amendment or supplement
     thereto, in order to make the statements therein not misleading; and (F) of
     any advice from a nationally recognized statistical rating organization
     that such organization has placed the Company under surveillance or review
     with negative implications or has determined to downgrade the rating of the
     Consenting Notes, Exchange Notes or Private Exchange Notes or any other
     debt obligation of the Company whether or not such downgrade shall have
     been publicly announced.

          (iii) If any event contemplated by Section 6(a)(ii)(B) through (E)
     occurs during the period for which the Company and the Note Guarantors are
     required to maintain an effective Market-Making Registration Statement, the
     Company and the Note Guarantors shall promptly prepare and file with the
     Commission a post-effective amendment to the

<Page>

                                                                              14

     Market-Making Registration Statement or an amendment or supplement to the
     related prospectus or file any other required document 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.

          (iv) 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 Consenting Notes, Exchange Notes or
     Private Exchange Notes for sale in any jurisdiction, the Company and the
     Note Guarantors shall use promptly commercially reasonable efforts to
     obtain its withdrawal.

          (v) 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.

          (vi) The Company and the Note Guarantors 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.

          (vii) For so long as the Consenting Notes, Exchange Notes or Private
     Exchange Notes shall be outstanding, the Company shall furnish to the
     Market-Maker (A) as soon as practicable after the end of each of the
     Company's fiscal years, the number of copies reasonably requested by the
     Market-Maker of the Company's annual report for such year, (B) as soon as
     available, the number of copies reasonably requested by the Market-Maker of
     each report (including, without limitation, reports on Forms 10-K, 10-Q and
     8-K) or definitive proxy statements of the Company filed under the Exchange
     Act or mailed to stockholders and (C) all public reports and all reports
     and financial statements furnished by the Company to the Nasdaq National
     Market System or any U.S. national securities exchange or quotation service
     upon which the Consenting Notes or Exchange Notes may be listed pursuant to
     requirements of or agreements with such exchange or quotation service or to
     the Commission pursuant to the Exchange Act or any rule or regulation of
     the Commission thereunder.

          (viii) Notwithstanding the foregoing provisions of Section 6, the
     Company and the Note Guarantors may for valid business reasons, including
     without limitation, a potential material acquisition, divestiture of assets
     or other material corporate transaction, notify the Market-Maker in writing
     that the Market-Making Registration Statement is no longer effective or the
     prospectus included therein is no longer usable for offers and sales of
     Consenting Notes, Exchange Notes or Private Exchange Notes; PROVIDED that
     the use of the Market-Making Registration Statement or the prospectus
     contained therein shall not be suspended for more than 60 days in the
     aggregate in any consecutive 12 month period. The Market-Maker agrees that
     upon receipt of any notice from the Company pursuant to Section 6(a)(ii)(B)
     through (E) or this Section 6(a)(viii), it will discontinue use of the
     prospectus contained in the Market-Making Registration Statement until
     receipt of copies of the supplemented or amended prospectus relating
     thereto or until advised in writing by the Company that the use of the
     prospectus contained in the Market-Making Registration Statement may be
     resumed.

<Page>

                                                                              15

          (b) In connection with the Market-Making Registration Statement, 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 Company and its
subsidiaries 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.

          (c) Prior to the effective date of the Market-Making Registration
Statement, the Company and the Note Guarantors will use commercially reasonable
efforts to register or qualify, or cooperate with the Market-Maker and its
counsel in connection with the registration or qualification of, the Consenting
Notes, Exchange Notes or Private Exchange Notes 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 Consenting
Notes, Exchange Notes or Private Exchange Notes covered by the Market-Making
Registration Statement; PROVIDED that the Company and the Note Guarantors will
not be required to qualify generally to do business in any jurisdiction where
they are not then so qualified or to take any action which would subject them to
general service of process or to taxation in any such jurisdiction where they
are not then so subject.

          (d) The Company and the Note Guarantors represent and agree 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 Commission, as the case may be, conform in all respects to the requirements
of the Securities Act and the Exchange Act and the rules and regulations of the
Commission 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 the 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").

          (e) At the time of effectiveness of the Market-Making Registration
Statement and concurrently with each time the Market-Making Registration
Statement or the related prospectus shall be amended or such prospectus shall be
supplemented, the Company shall (if requested by the Market-Maker) furnish the
Market-Maker and its counsel with a certificate of its Chairman of the Board of
Directors or its President and Chief Financial Officer to the effect that:

          (i) the Market-Making Registration Statement has been declared
     effective; (ii) in the case of an amendment to the Market-Making
     Registration Statement, such amendment has become effective under the
     Securities Act as of the date and time specified in such certificate, if
     applicable; and in the case of an amendment or supplement to the related
     prospectus, such amendment or supplement to the prospectus was filed with
     the Commission pursuant to the subparagraph of Rule 424(b) under the
     Securities Act specified in such certificate on the date specified therein;
     (iii) to the

<Page>

                                                                              16

     knowledge of such officers, no stop order suspending the effectiveness of
     the Market-Making Registration Statement has been issued and no proceeding
     for that purpose is pending or threatened by the Commission; (iv) such
     officers have carefully examined the Market-Making Registration Statement
     and the prospectus (and, in the case of an amendment or supplement, such
     amendment or supplement) and as of the date of such 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.

          (f) At the time of effectiveness of the Market-Making Registration
Statement and concurrently with each time the Market-Making Registration
Statement or the related prospectus shall be amended or such prospectus shall be
supplemented, the Company shall (if requested by the Market-Maker) furnish the
Market-Maker and its counsel with the written opinion of counsel for the Company
satisfactory to the Market-Maker to the effect that:

          (i) the Market-Making Registration Statement has been declared
     effective; (ii) in the case of an amendment to the Market-Making
     Registration Statement, such amendment has become effective under the
     Securities Act as of the date and time specified in such opinion, if
     applicable; and in the case of an amendment or supplement to the related
     prospectus, such amendment or supplement to the prospectus was filed with
     the Commission pursuant to the subparagraph of Rule 424(b) under the
     Securities Act specified in such opinion on the date specified therein;
     (iii) to the knowledge of such counsel, no stop order suspending the
     effectiveness of the Market-Making Registration Statement has been issued
     and no proceeding for that purpose is pending or threatened by the
     Commission; and (iv) such counsel has reviewed the Market-Making
     Registration Statement and the prospectus (and, in the case of an amendment
     or supplement, such amendment or supplement) and participated with officers
     of the Company and independent public accountants for the Company in the
     preparation of such Market-Making Registration Statement and prospectus
     (and, in the case of an amendment or supplement, such amendment or
     supplement) and has no reason to believe that (except for the financial
     statements and other financial and statistical data contained therein as to
     which such counsel need express no belief) as of the date of such
     Market-Making Registration Statement, amendment or supplement, as
     applicable, the Market-Making Registration Statement and the prospectus, as
     amended or supplemented, if applicable, contained any untrue statement of a
     material fact or omitted to state a material fact required to be stated
     therein or necessary to make the statements therein not misleading.

          (g) At the time of effectiveness of the Market-Making Registration
Statement and concurrently with each time the Market-Making Registration
Statement or the related prospectus shall be amended or such prospectus shall be
supplemented to include audited annual financial information, the Company shall
(if requested by the Market-Maker) furnish the Market-Maker and its counsel with
a letter of Ernst & Young LLP (or other independent public accountants for the
Company or the Note Guarantors of nationally recognized standing) in form
satisfactory to the Market-Maker, addressed to the Market-Maker and dated the
date of delivery of such letter, (i) confirming that they are independent public
accountants within the meaning of the Securities Act and are in compliance with
the applicable requirements relating to the qualification of accountants under
Rule 2-01 of Regulation S-X of the Commission and, (ii) in all

<Page>

                                                                              17

other respects, substantially in the form of the letter delivered to the
Solicitation Agent pursuant to Section 5(g) of the Solicitation Agent Agreement,
with, in the case of an amendment or supplement that includes audited financial
information, such changes as may be necessary to reflect the amended or
supplemented financial information.

          (h) The Company and the Note Guarantors, 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 Sections 7 and 8 of this
Agreement.

          (i) The Company will comply with the provisions of this Section 6 at
its own expense and will reimburse the Market-Maker for its expenses associated
with this Section 6 (including reasonable fees of counsel for the Market-Maker).

          (j) The agreements contained in this Section 6 and the
representations, warranties and agreements contained in this Agreement shall
survive all offers and sales of the Consenting Notes and Exchange Notes and
shall remain in full force and effect, regardless of any termination or
cancelation of this Agreement or any investigation made by or on behalf of any
indemnified party.

          (k) For purposes of this Section 6, (i) any reference to the terms
"amend", "amendment" or "supplement" with respect to the Market-Making
Registration Statement or the prospectus contained therein shall be deemed to
refer to and include the filing under the Exchange Act of any document deemed to
be incorporated therein by reference and (ii) any reference to the terms
"Consenting Notes", "Exchange Notes" or "Private Exchange Notes" shall be deemed
to refer to and include any securities issued in exchange for or with respect to
such Consenting Notes, Exchange Notes or Private Exchange Notes.

          7. INDEMNIFICATION. (a) In the event of a Shelf Registration Statement
or in connection with any prospectus delivery pursuant to an Exchange Offer
Registration Statement by an Exchanging Dealer, or in connection with the
Market-Making Registration Statement, the Company and the Note Guarantors shall
jointly and severally indemnify and hold harmless each Holder (including,
without limitation, the Solicitation Agent, the Market-Maker or such Exchanging
Dealer), its affiliates, its respective officers, directors, employees,
representatives and agents, and each person, if any, who controls such Holder
within the meaning of the Securities Act or the Exchange Act (collectively
referred to for purposes of this Section 7 and Section 8 as a Holder) from and
against any loss, claim, damage or liability, joint or several, or any action in
respect thereof (including, without limitation, any loss, claim, damage,
liability or action relating to purchases and sales of Consenting Notes,
Exchange Notes or Private Exchange Notes), to which that Holder may become
subject, whether commenced or threatened, under the Securities Act, the Exchange
Act, any other federal or state statutory law or regulation, at common law or
otherwise, insofar as such loss, claim, damage, liability or action arises out
of, or is based upon, (i) any untrue statement or alleged untrue statement of a
material fact contained in any such Registration Statement or Market-Making
Registration Statement or any prospectus forming part thereof or in any
amendment or supplement thereto, (ii) the 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 (iii) in the case of the Market-Maker, any material
breach by the Company of the representations, warranties and agreements
contained in Section 6, and shall reimburse each Holder promptly upon demand for
any legal or other expenses reasonably incurred by that Holder in connection

<Page>

                                                                              18

with investigating or defending or preparing to defend against or appearing as a
third party witness in connection with any such loss, claim, damage, liability
or action as such expenses are incurred; PROVIDED, HOWEVER, that the Company and
the Note Guarantors shall not be liable in any such case to the extent that any
such loss, claim, damage, liability or action arises out of, or is based upon,
an untrue statement or alleged untrue statement in or omission or alleged
omission from any of such documents in reliance upon and in conformity with any
Holders' Information or Market-Maker's Information, respectively; and PROVIDED,
FURTHER, that with respect to any such untrue statement in or omission from any
related preliminary prospectus, the indemnity agreement contained in this
Section 7(a) shall not inure to the benefit of any Holder from whom the person
asserting any such loss, claim, damage, liability or action received Consenting
Notes, Exchange Notes or Private Exchange Notes to the extent that such loss,
claim, damage, liability or action of or with respect to such Holder results
from the fact that both (A) 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
Consenting Notes, Exchange Notes or Private Exchange Notes to such person and
(B) 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 a result of non-compliance by the Company with
Section 4(d), 4(e), 4(f), 4(g) or 6(a)(v), as applicable.

          (b) In (i) the event of a Shelf Registration Statement, each Holder or
(ii) connection with the Market-Making Registration Statement, the Market-Maker,
as applicable, shall indemnify and hold harmless the Company, its affiliates,
its respective officers, directors, employees, representatives and agents, and
each person, if any, who controls the Company within the meaning of the
Securities Act or the Exchange Act (collectively referred to for purposes of
this Section 7(b) and Section 8 as the Company), from and against any loss,
claim, damage or liability, joint or several, or any action in respect thereof,
to which the Company may become subject, whether commenced or threatened, under
the Securities Act, the Exchange Act, any other federal or state statutory law
or regulation, at common law or otherwise, insofar as such loss, claim, damage,
liability or action arises out of, or is based upon, (i) any untrue statement or
alleged untrue statement of a material fact contained in any such Registration
Statement or Market-Making Registration Statement, respectively, or any
prospectus forming part thereof or in any amendment or supplement thereto or
(ii) the 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, but
in each case only to the extent that the untrue statement or alleged untrue
statement or omission or alleged omission was made in reliance upon and in
conformity with any Holders' Information or Market-Maker's Information,
respectively, furnished to the Company by such Holder and shall reimburse the
Company for any legal or other expenses reasonably incurred by the Company in
connection with investigating or defending or preparing to defend against or
appearing as a third party witness in connection with any such loss, claim,
damage, liability or action as such expenses are incurred; PROVIDED, HOWEVER,
that no such Holder shall be liable for any indemnity claims hereunder in excess
of the amount of net proceeds received by such Holder from the sale of
Consenting Notes, Exchange Notes or Private Exchange Notes pursuant to such
Shelf Registration Statement, Market-Making Registration Statement or
prospectus.

          (c) Promptly after receipt by an indemnified party under this
Section 7 of notice of any claim or the commencement of any action, the
indemnified party shall, if a claim in respect thereof is to be made against the
indemnifying party pursuant to Section 7(a) or 7(b), notify the indemnifying
party in writing of the claim or the commencement of that action; PROVIDED,
HOWEVER, that the failure to notify the indemnifying party shall not relieve it
from any liability

<Page>

                                                                              19

which it may have under this Section 7 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 party shall not relieve it from any liability which it may have to
an indemnified party otherwise than under this Section 7. If any such claim or
action shall be brought against an indemnified party, and it shall notify the
indemnifying party thereof, the indemnifying party shall be entitled to
participate therein and, to the extent that it wishes, jointly with any other
similarly notified indemnifying party, to assume the defense thereof with
counsel reasonably satisfactory to the indemnified party. After notice from the
indemnifying party to the indemnified party of its election to assume the
defense of such claim or action, the indemnifying party shall not be liable to
the indemnified party under this Section 7 for any legal or other expenses
subsequently incurred by the indemnified party in connection with the defense
thereof other than the reasonable costs of investigation; PROVIDED, HOWEVER,
that an indemnified party shall have the right to employ its own counsel in any
such action, but the fees, expenses and other charges of such counsel for the
indemnified party will be at the expense of such indemnified party unless (1)
the employment of counsel by the indemnified party has been authorized in
writing by the indemnifying party, (2) the indemnified party has reasonably
concluded (based upon advice of counsel to the indemnified party) that there may
be legal defenses available to it or other indemnified parties that are
different from or in addition to those available to the indemnifying party, (3)
a conflict or potential conflict exists (based upon advice of counsel to the
indemnified party) between the indemnified party and the indemnifying party (in
which case the indemnifying party will not have the right to direct the defense
of such action on behalf of the indemnified party) or (4) the indemnifying party
has not in fact employed counsel reasonably satisfactory to the indemnified
party to assume the defense of such action within a reasonable time after
receiving notice of the commencement of the action, in each of which cases the
reasonable fees, disbursements and other charges of counsel will be at the
expense of the indemnifying party or parties. It is understood that the
indemnifying party or parties shall not, in connection with any proceeding or
related proceedings in the same jurisdiction, be liable for the reasonable fees,
disbursements and other charges of more than one separate firm of attorneys (in
addition to any local counsel) at any one time for all such indemnified party or
parties. Each indemnified party, as a condition of the indemnity agreements
contained in Sections 7(a) and 7(b), shall use all reasonable efforts to
cooperate with the indemnifying party in the defense of any such action or
claim. No indemnifying party shall be liable for any settlement of any such
action effected without its written consent (which consent shall not be
unreasonably withheld), but if settled with its written consent or if there be a
final judgment for the plaintiff in any such action, the indemnifying party
agrees to indemnify and hold harmless any indemnified party from and against any
loss or liability by reason of such settlement or judgment. No indemnifying
party shall, without the prior written consent of the indemnified party (which
consent shall not be unreasonably withheld), effect any settlement of any
pending or threatened proceeding in respect of which any indemnified party is or
could have been a party and indemnity could have been sought hereunder by such
indemnified party, unless such settlement includes an unconditional release of
such indemnified party from all liability on claims that are the subject matter
of such proceeding.

          8. CONTRIBUTION. If the indemnification provided for in Section 7 is
unavailable or insufficient to hold harmless an indemnified party under
Section 7(a) or 7(b), then each indemnifying party shall, in lieu of
indemnifying such indemnified party, contribute to the amount paid or payable by
such indemnified party as a result of such loss, claim, damage or liability, or
action in respect thereof, (a) in such proportion as shall be appropriate to
reflect the relative benefits received by the Company from the Consent
Solicitation and the issuance of the

<Page>

                                                                              20

Consenting Notes, on the one hand, and by a Holder from receiving Consenting
Notes, Exchange Notes or Private Exchange Notes, as applicable, registered under
the Securities Act or, if applicable, by the Market Maker from the filing and
effectiveness of a Market Making Registration Statement on the other, or (b) if
the allocation provided by clause (a) above is not permitted by applicable law,
in such proportion as is appropriate to reflect not only the relative benefits
referred to in clause (a) above but also the relative fault of the Company and
the Note Guarantors, on the one hand, and such Holder, on the other, with
respect to the statements or omissions that resulted in such loss, claim, damage
or liability, or action in respect thereof, as well as any other relevant
equitable considerations. The relative fault 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 the Company and the Note Guarantors or information supplied by the
Company and the Note Guarantors, on the one hand, or to any Holders' Information
or Market-Maker's Information, respectively, supplied by such Holder, on the
other, the intent of the parties and their relative knowledge, access to
information and opportunity to correct or prevent such untrue statement or
omission. The parties hereto agree that it would not be just and equitable if
contributions pursuant to this Section 8 were to be determined by PRO RATA
allocation or by any other method of allocation that does not take into account
the equitable considerations referred to herein. The amount paid or payable by
an indemnified party as a result of the loss, claim, damage or liability, or
action in respect thereof, referred to above in this Section 8 shall be deemed
to include, for purposes of this Section 8, any legal or other expenses
reasonably incurred by such indemnified party in connection with investigating
or defending or preparing to defend any such action or claim. Notwithstanding
the provisions of this Section 8, an indemnifying party that is a Holder of
Consenting Notes, Exchange Notes or Private Exchange Notes or the Market-Maker
shall not be required to contribute any amount in excess of the amount by which
the total price at which the Consenting Notes, Exchange Notes or Private
Exchange Notes sold by such indemnifying party to any purchaser exceeds the
amount of any damages which such indemnifying party has otherwise paid or become
liable to pay by reason of any untrue or alleged untrue statement or omission or
alleged omission. No person guilty of fraudulent misrepresentation (within the
meaning of Section 11(f) of the Securities Act) shall be entitled to
contribution from any person who was not guilty of such fraudulent
misrepresentation.

          9. RULES 144 AND 144A. The Company and the Note Guarantors shall use
commercially reasonable efforts to file the reports required to be filed by them
under the Securities Act and the Exchange Act in a timely manner and, if at any
time the Company and the Note Guarantors are not required to file such reports,
they will, upon the written request of any Holder of Transfer Restricted Notes
or the Market-Maker, make publicly available other information so long as
necessary to permit sales of such Holder's or the Market-Maker's securities
pursuant to Rules 144 and 144A. The Company and the Note Guarantors covenant
that they will take such further action as any Holder of Transfer Restricted
Notes or the Market-Maker may reasonably request, all to the extent required
from time to time to enable such Holder or the Market-Maker to sell Transfer
Restricted Notes without registration under the Securities Act within the
limitation of the exemptions provided by Rules 144 and 144A (including, without
limitation, the requirements of Rule 144A(d)(4)). Upon the written request of
any Holder of Transfer Restricted Notes, the Company and the Note Guarantors
shall deliver to such Holder or the Market-Maker a written statement as to
whether they have complied with such requirements. Notwithstanding the
foregoing, nothing in this Section 9 shall be deemed to require the Company to
register any of its securities pursuant to the Exchange Act.

<Page>

                                                                              21

          10. UNDERWRITTEN REGISTRATIONS. If any of the Transfer Restricted
Notes covered by any Shelf Registration Statement are to be sold in an
underwritten offering, the investment banker or investment bankers and manager
or managers that will administer the offering will be selected by the Holders of
a majority in aggregate principal amount at maturity of such Transfer Restricted
Notes included in such offering, subject to the consent of the Company and the
Note Guarantors (which shall not be unreasonably withheld or delayed), and such
Holders shall be responsible for all underwriting commissions and discounts in
connection therewith.

          No person may participate in any underwritten registration hereunder
unless such person (i) agrees to sell such person's Transfer Restricted Notes on
the basis reasonably provided in any underwriting arrangements approved by the
persons entitled hereunder to approve such arrangements and (ii) completes and
executes all questionnaires, powers of attorney, indemnities, underwriting
agreements and other documents reasonably required under the terms of such
underwriting arrangements.

          11. MISCELLANEOUS. (a) AMENDMENTS AND WAIVERS. The provisions of this
Agreement may not be amended, modified or supplemented, and waivers or consents
to departures from the provisions hereof may not be given, unless the Company
has obtained the written consent of Holders of a majority in aggregate principal
amount of the Consenting Notes, the Exchange Notes and the Private Exchange
Notes, taken as a single class (and, with respect to the provisions of
Section 6, the written consent of the Market-Maker). Notwithstanding the
foregoing, a waiver or consent to depart from the provisions hereof with respect
to a matter that relates exclusively to the rights of Holders whose Consenting
Notes, Exchange Notes or Private Exchange Notes are being sold pursuant to a
Registration Statement and that does not directly or indirectly affect the
rights of other Holders may be given by Holders of a majority in aggregate
principal amount of the Consenting Notes, the Exchange Notes and the Private
Exchange Notes being sold by such Holders pursuant to such Registration
Statement whose rights are so affected.

          (b) NOTICES. All notices and other communications provided for or
permitted hereunder shall be made in writing by hand-delivery, first-class mail,
telecopier or air courier guaranteeing next-day delivery:

          (1) if to a Holder, at the most current address given by such Holder
     to the Company in accordance with the provisions of this Section 11(b),
     which address initially is, with respect to each Holder, the address of
     such Holder maintained by the registrar under the Indenture, with a copy in
     like manner to JPMorgan;

          (2) if to the Solicitation Agent or the Market-Maker, initially
     pursuant to Section 9 of the Solicitation Agent Agreement; and

          (3) if to the Company or the Note Guarantors, initially at the address
     of the Company set forth in the Solicitation Agent Agreement.

          All such notices and communications shall be deemed to have been duly
given: when delivered by hand, if personally delivered; one business day after
being delivered to a next-day air courier; five business days after being
deposited in the mail; and when receipt is acknowledged by the recipient's
telecopier machine, if sent by telecopier.

<Page>

                                                                              22

          The Company and the Note Guarantors or the Solicitation Agent may, by
written notice to the other, designate additional or different addresses for
subsequent notices or communications.

          (c) SUCCESSORS AND ASSIGNS. This Agreement shall be binding upon the
Company and its successors and assigns.

          (d) COUNTERPARTS. This Agreement may be executed in any number of
counterparts (which may be delivered in original form or by telecopier) 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.

          (e) DEFINITION OF TERMS. For purposes of this Agreement, (a) the term
"business day" means any day on which the New York Stock Exchange, Inc. is open
for trading, (b) the term "subsidiary" has the meaning set forth in Rule 405
under the Securities Act and (c) except where otherwise expressly provided, the
term "affiliate" has the meaning set forth in Rule 405 under the Securities Act.

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

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

          (h) REMEDIES. In the event of a breach by the Company, the Note
Guarantors or by any Holder of any of their obligations under this Agreement,
each Holder, the Company or the Note Guarantors, as the case may be, in addition
to being entitled to exercise all rights granted by law, including recovery of
damages (other than the recovery of damages for a breach by the Company or the
Note Guarantors of their obligations under Sections 1 or 2 hereof for which
liquidated damages have been paid pursuant to Section 3 hereof), will be
entitled to specific performance of its rights under this Agreement. The
Company, the Note Guarantors and each Holder agree that monetary damages would
not be adequate compensation for any loss incurred by reason of a breach by each
such person of any of the provisions of this Agreement and hereby further agree
that, in the event of any action for specific performance in respect of such
breach, each such person shall waive the defense that a remedy at law would be
adequate.

          (i) NO INCONSISTENT AGREEMENTS. Each of the Company and the Note
Guarantors represents, warrants and agrees with the Solicitation Agent that (i)
it has not entered into, and shall not, on or after the date of this Agreement,
enter into any agreement that is inconsistent with the rights granted to the
Holders in this Agreement or otherwise conflicts with the provisions hereof,
(ii) it has not previously entered into any agreement which remains in effect
granting any registration rights with respect to any of its debt securities to
any person and (iii) (with respect to the Company) without limiting the
generality of the foregoing, without the written consent of the Holders of a
majority in aggregate principal amount at maturity of the then outstanding
Transfer Restricted Notes and the Market-Maker, it shall not grant to any person
the right to request the Company to register any debt securities of the Company
under the Securities Act unless the rights so granted are not in conflict or
inconsistent with the provisions of this Agreement.

<Page>

                                                                              23

          (j) NO PIGGYBACK ON REGISTRATIONS. Neither the Company nor any of its
security holders (other than the Holders of Transfer Restricted Notes in such
capacity) shall have the right to include any securities of the Company in any
Shelf Registration or Registered Exchange Offer other than Transfer Restricted
Notes.

          (k) SEVERABILITY. If any term, provision, covenant or restriction of
this Agreement is held by a court of competent jurisdiction to be invalid,
illegal, void or unenforceable, the remainder of the terms, provisions,
covenants and restrictions set forth herein shall remain in full force and
effect and shall in no way be affected, impaired or invalidated, and the parties
hereto shall use commercially reasonable efforts to find and employ an
alternative means to achieve the same or substantially the same result as that
contemplated by such term, provision, covenant or restriction. It is hereby
stipulated and declared to be the intention of the parties that they would have
executed the remaining terms, provisions, covenants and restrictions without
including any of such that may be hereafter declared invalid, illegal, void or
unenforceable.

<Page>

                                                                              24

          Please confirm that the foregoing correctly sets forth the agreement
among the Company, the Note Guarantors and the Solicitation Agent.

                                         Very truly yours,

                                         PLIANT CORPORATION,

                                         by
                                           -------------------------------------
                                           Name:
                                           Title:

                                         PLIANT CORPORATION INTERNATIONAL,
                                         PLIANT FILM PRODUCTS OF MEXICO, INC.,
                                         PLIANT PACKAGING OF CANADA, LLC,
                                         UNIPLAST HOLDINGS INC.,
                                         UNIPLAST U.S., INC.,
                                         UNIPLAST INDUSTRIES CO.,

                                         by
                                           -------------------------------------
                                           Name:
                                           Title:

<Page>

                                                                              25

Confirmed and accepted as of the date first written above.

J.P. MORGAN SECURITIES INC.,

by
  -------------------------------------
  Name:
  Title:

<Page>

                                                                         ANNEX A

          Each broker-dealer that receives Exchange Notes for its own account
pursuant to the Registered Exchange Offer must acknowledge that it will deliver
a prospectus in connection with any resale of such Exchange Notes. The Letter of
Transmittal states that by so acknowledging and by delivering a prospectus, a
broker-dealer will not be deemed to admit that it is an "underwriter" within the
meaning of the Securities Act. This Prospectus, as it may be amended or
supplemented from time to time, may be used by a broker-dealer in connection
with resales of Exchange Notes received in exchange for Consenting Notes where
such Consenting Notes were acquired by such broker-dealer as a result of
market-making activities or other trading activities. The Company has agreed
that, for a period of 180 days after the Expiration Date (as defined herein), it
will make this Prospectus available to any broker-dealer for use in connection
with any such resale. See "Plan of Distribution".

<Page>

                                                                         ANNEX B

          Each broker-dealer that receives Exchange Notes for its own account in
exchange for Consenting Notes, where such Consenting Notes were acquired by such
broker-dealer as a result of market-making activities or other trading
activities, must acknowledge that it will deliver a prospectus in connection
with any resale of such Exchange Notes. See "Plan of distribution".

<Page>

                                                                         ANNEX C

                              PLAN OF DISTRIBUTION

          Each broker-dealer that receives Exchange Notes for its own account
pursuant to the Registered Exchange Offer must acknowledge that it will deliver
a prospectus in connection with any resale of such Exchange Notes. This
Prospectus, as it may be amended or supplemented from time to time, may be used
by a broker-dealer in connection with resales of Exchange Notes received in
exchange for Consenting Notes where such Consenting Notes were acquired as a
result of market-making activities or other trading activities. The Company has
agreed that, for a period of 180 days after the Expiration Date, it will make
this prospectus, as amended or supplemented, available to any broker-dealer for
use in connection with any such resale.

          The Company will not receive any proceeds from any sale of Exchange
Notes by broker-dealers. Exchange Notes received by broker-dealers for their own
account pursuant to the Registered Exchange Offer may be sold from time to time
in one or more transactions in the over-the-counter market, in negotiated
transactions, through the writing of options on the Exchange Notes or a
combination of such methods of resale, at market prices prevailing at the time
of resale, at prices related to such prevailing market prices or at negotiated
prices. Any such resale may be made directly to purchasers or to or through
brokers or dealers who may receive compensation in the form of commissions or
concessions from any such broker-dealer or the purchasers of any such Exchange
Notes. Any broker-dealer that resells Exchange Notes that were received by it
for its own account pursuant to the Registered Exchange Offer and any broker or
dealer that participates in a distribution of such Exchange Notes may be deemed
to be an "underwriter" within the meaning of the Securities Act and any profit
on any such resale of Exchange Notes and any commission or concessions received
by any such persons may be deemed to be underwriting compensation under the
Securities Act. The Letter of Transmittal states that, by acknowledging that it
will deliver and by delivering a prospectus, a broker-dealer will not be deemed
to admit that it is an "underwriter" within the meaning of the Securities Act.

          For a period of 180 days after the Expiration Date the Company will
promptly send additional copies of this Prospectus and any amendment or
supplement to this Prospectus to any broker-dealer that requests such documents
in the Letter of Transmittal. The Company has agreed to pay all expenses
incident to the Registered Exchange Offer (including the expenses of one counsel
for the Holders of the Consenting Notes) other than commissions or concessions
of any broker-dealers and will indemnify the Holders of the Consenting Notes
(including any broker-dealers) against certain liabilities, including
liabilities under the Securities Act.

<Page>

                                                                         ANNEX D

               / /  CHECK HERE IF YOU ARE A BROKER-DEALER AND WISH TO RECEIVE 10
                    ADDITIONAL COPIES OF THE PROSPECTUS AND 10 COPIES OF ANY
                    AMENDMENTS OR SUPPLEMENTS THERETO.

               Name:
               Address:

If the undersigned is not a broker-dealer, the undersigned represents that it is
not engaged in, and does not intend to engage in, a distribution of Exchange
Notes. If the undersigned is a broker-dealer that will receive Exchange Notes
for its own account in exchange for Consenting Notes that were acquired as a
result of market-making activities or other trading activities, it acknowledges
that it will deliver a prospectus in connection with any resale of such Exchange
Notes; however, by so acknowledging and by delivering a prospectus, the
undersigned will not be deemed to admit that it is an "underwriter" within the
meaning of the Securities Act.Filed by Automated Filing Services Inc. (604) 609-0244 - Phage Genomics, Inc. - Exhibit 10.1

 ASSIGNMENT AGREEMENT
  

 THIS AGREEMENT is made and dated for reference effective as of the
  1 day of June, 2005. 

 BETWEEN:

NANOMINERALS CORP., a company
  incorporated under the laws of the State of Nevada and having an address for
  delivery and notice located at P.O. Box 530696, Henderson, Nevada, U.S.A., 89053.

(hereinafter “NMC”)

OF THE FIRST PART

 AND:

PHAGE GENOMICS INC. (TO BE RENAMED
  SEARCHLIGHT MINERALS CORP.), a company incorporated under the laws of the
  State of Nevada and having an address for delivery and notice located at 2215
  Lucerne Circle, Henderson, Nevada, U.S.A., 89114.

(hereinafter “SMC”) 

OF THE SECOND PART  

 WHEREAS:

For good and valuable consideration, the sufficiency of which is hereby acknowledged, the parties agree as follows: 

	 1)      	 NMC has a Joint Venture Agreement (hereinafter “Project
        Agreement”) with Verde River Iron Company, LLC (hereinafter “VRIC”)
        to fund and develop the Clarkdale Slag Project (hereinafter “Project”),
        including the right to assign NMC’s interest in the Project to an
        entity controlled by NMC or controlled by the principles of NMC (Exhibit
        A). The Project Agreement was executed on May 20, 2005 and notification
        of receipt of funds ($530,000.00) was received by NMC on May 23, 2005.
        SMC desires NMC to assign its interest in the Project Agreement to SMC.
      

 - Page 1 - 

 

	 2)      	 NMC agrees to assign its interest in the Project Agreement
      to SMC subject to the following terms and conditions: 
	 
	 	 a.      	 Repayment to NMC for Project acquisition costs of Six Hundred Ninety
      Thousand Dollars $690,000.00 (Exhibit B); 
	 
	 	 b.      	 Assignment to NMC, or its designates, of a five
        percent (5%) Net Smelter Return Royalty payable from SMC’s share
        of production from the Project; 

	 
	 	 c.      	 Election of a principle or principles of NMC to
        SMC’s Board of Directors (hereinafter “New Directors”)
        so that the New Directors shall have a majority of the seats on the Board
        of Directors of SMC. This is a requirement for NMC to assign its interest
        in the Project Agreement to SMC (Exhibit A – Paragraph 19); 

	 
	 	 d.      	 Confirmation to NMC, on or before June 25,
        2005, that SMC is in receipt of the funds from the underwriting agreement
        with Dominick & Dominick in the amount of Two Million Dollars ($2,000,000.00)
        less commissions; and 

	 
	 	 e.      	 Receipt by NMC, or its designates, of 6,000,000
        warrants from SMC to purchase 6,000,000 shares of SMC at an exercise price
        of $0.75 per share and a term of 10 years from the date
        of this Agreement. 

	 
	 3)      	 This Agreement is binding on NMC and SMC.
        By this Agreement, NMC and SMC agree to proceed as outlined above, with
        all of the terms and conditions contained in this Agreement, and to sign
        and deliver any additional documents that are reasonably necessary to
        carry out the intent of this Agreement. NMC and SMC agree to proceed in
        good faith and with all due haste, time being of the essence as to each
        and every term of this Agreement. The parties signing this Agreement unconditionally
        represent that they have the full authority to bind NMC and SMC, respectively,
        to all of the terms and conditions stated in this Agreement. The laws
        of the State of Nevada shall govern the validity, performance and enforcement
        of this Agreement. 

 - Page 2 - 

 

	 4)      	 This Agreement may be executed in several counterparts
        and delivered by facsimile transmission, each of which shall be deemed
        to be an original, but all of which shall constitute one and the same
        instrument. In addition, this Agreement may contain more than one counterpart
        of the signature pages and this Agreement may be executed by the affixing
        of the signature pages and all of such counterpart signature pages shall
        be read as though one and they shall have the same force and effect as
        though all the signers had signed a single signature page. 

	 
	 5)      	 Except as disclosed in the SMC Financial Statements
        provided to NMC, SMC has as of the date of this Agreement, any liabilities
        or obligation (whether absolute, accrued, contingent or otherwise) of
        any nature, except liabilities, obligations or contingencies, which, (A)
        were incurred in the ordinary course of business after the date of the
        Financial Statements, (B) were incurred in connection with the preparation,
        negotiation and consummation of this Agreement and the transactions contemplated
        hereby, or (C) would not, individually or in the aggregate, result in
        a Material Adverse Effect as to SMC. 

 IN WITNESS WHEREOF the Parties hereto have entered
  into this Agreement as of the day and year first written above. 

 NANOMINERALS CORP. 

  By: 

 /s/ Charles A. Ager 

  ___________________________________

  Dr. Charles A. Ager 

  Founder & Chairman 

AND 

 PHAGE GENOMICS INC. 

  By: 

 /s/ K. Ian Matheson 

  ____________________________________

  Mr. K. Ian Matheson, C.A.

  President 

 - Page 3 - 

 EXHIBIT A 

 NMC-VRIC JOINT VENTURE AGREEMENT 

 Joint Venture Agreement 

 This Joint Venture Agreement (the “Agreement”) is entered into
  and effective as of this 20 day of May, 2005. 

 1. The “Parties” to this Agreement are Verde River
  Iron Company, LLC, a Nevada limited liability company (“Verde”)
  and Nanominerals Corp., a Nevada corporation (“Nano”). Verde and
  Nano desire to enter into this Agreement for the purpose of jointly pursuing
  the processing of copper smelter slag at the Clarkdale smelter site in Clarkdale,
  Arizona. The Parties intend to process the slag to extract valuable minerals
  such as gold, silver, copper, zinc and iron for sale to the market. The slag
  is located on a parcel containing approximately two hundred (200) acres in the
  Town of Clarkdale, Arizona (the “Project Site”). An affiliated entity
  of Verde owns the slag and the Project Site, and Verde warrants that it has
  full legal authority to enter into this agreement.

 2. Verde and Nano hereby agree to proceed in a joint venture
  in four (4) Phases as set forth on Exhibit A attached and made a part hereof
  and in accordance with the terms set forth in this Agreement. Providing that
  the drilling, coring and sampling of the slag pile as detailed in Phase 1 yields
  mutually acceptable results as further provided below, the parties agree to
  form a new limited liability company (“OPCO”), in order to process
  the slag on the Project Site. OPCO will extract, market and sell the valuable
  minerals and by-products obtained from the Project Slag for a profit. This joint
  pursuit of Verde and Nano through OPCO, is referred to as the “Project”.
  The Project shall be limited to a volume of slag that is equal to the greater
  of two-thirds (2/3) of the entire slag pile, or 20,000,000 tons (the “Project
  Slag”). 

 3. OPCO will be a limited liability company comprised of two
  (2), and only two members, Verde and Nano. Verde and Nano will each own fifty
  percent (50%) of OPCO. Verde and Nano will share equally in the profits of OPCO.
  OPCO will be a manager managed limited liability company that will have two
  (2) and only two managers. Verde will have the exclusive right to appoint one
  (1) manager, and Nano will have the exclusive right to appoint one (1) manager.
  All decisions involving the management, supervision and operation of OPCO will
  require the joint approval of both managers. Verde and Nano will agree upon
  a speedy means of arbitration to settle any dispute between the managers involving

 1 

 any decisions to be made regarding OPCO. Verde and Nano intend
  that this arbitration process will be implemented so as to prevent any possibility
  of a deadlock in the management of OPCO. The arbitration process will be guided
  by the overriding principle that all decisions are to be made in the best interest
  of the Project, within the confines of the express agreements between Verde
  and Nano as to their individual rights, duties and obligations. 

 4. For purposes of this Agreement, “Project Expenses”
  shall mean the costs and expenses necessary to complete Phase 1 through Phase
  4 of the Project including the costs of: (i) consultants, architects, engineers,
  professionals and others employed to complete the items set forth in this paragraph
  4, and to otherwise effect the overall goals of this Agreement; (ii) perfecting
  building and use permits and certificates of occupancy from the Town of Clarkdale,
  and any other permits necessary to conduct operations on the Project Site; (iii)
  making whatever improvements are necessary on the Project Site, including certifications
  for or improvements to existing buildings and other structures, and the construction
  of any out-buildings or other structures that may be necessary or required in
  order to perfect and maintain all necessary operating permits and/or certificates
  of occupancy; (iv) funding ancillary improvements to property surrounding the
  Project Site in conjunction with agreements between Verde, its affiliates and
  the Town of Clarkdale; (v) funding the administrative salaries of Verde, which
  shall be limited to the amount of $30,000 per month until “Full Project
  Funding” (defined below); (vi) providing insurance (Phase 2 forward) for
  Verde, its affiliates, Nano, its affiliates, OPCO and the Project Site including
  “all-risk” property casualty and damage covering all buildings,
  structures and equipment on the Project Site, and liability coverage in such
  amounts as may be required by Verde and Nano; (vii) constructing and operating
  pilot processing facilities (up to a maximum of 300 tons/day) as deemed necessary
  by the independent engineers in support of the Bankable Feasibility Study (Phase
  2), including but not limited to the purchase of all equipment, all engineering,
  transportation, labor and other costs associated therewith; (vi) paying real
  property taxes on the Property Site and personal property taxes directly related
  to the Project; and (viii) paying any other items set forth on Exhibit B attached
  and made a part hereof. 

 5. Upon execution and delivery of this agreement by the Parties,
  Nano will contribute Five Hundred Thirty Thousand Dollars ($530,000.00)
  to Verde by immediate wire transfer to Verde’s account. This Agreement
  shall become 

 2 

 effective only upon receipt of that payment, not later than
  two (2) business days after the execution and delivery of this Agreement by
  facsimile, as provided below. Nano understands and agrees that $100,000
  of the $530,000 will be immediately disbursed to Gerald Lembas, a principal
  of Verde, $300,000 shall be used at the discretion of Verde for other than
  Project Expenses which will not be subject to review by Nano, and $30,000
  will be used to pay administrative salaries of Verde’s key personnel.
  Nano shall continue to pay the amount of $30,000 to Verde for its administrative
  salaries on a monthly basis, in each successive month on same calendar day as
  the date of this Agreement. Verde shall use the remaining $100,000 solely
  for the purpose of paying the cost of, or reimbursing Verde for paying the outstanding
  liabilities as set forth in Exhibit B. These funds can also be used for paying
  Additional Project Expenses on a go-forward basis from the date of this agreement
  as set forth on Exhibit B. 

 6. Upon the execution and delivery of this Agreement, Nano
  will immediately proceed to engage the professionals necessary to complete Phase
  1. The professionals engaged to perform Phase 1 and all contracts relating thereto
  and all criteria to be utilized in Phase 1 shall be mutually agreed upon by
  Nano and Verde prior to commencement. The full cost and expense of Phase 1 shall
  be borne solely by Nano. Prior to any professionals entering upon the slag pile
  for testing, Nano shall provide Verde with documentation evidencing the allocated
  funds to satisfy payment in payment in full of all amounts due under the contracts
  involved and all professionals shall execute and deliver to Verde signed lien
  waivers and releases for all work to be performed. Any and all reports generated
  by Phase 1 shall be certified to Verde and to Nano. 

 7. During Phase 1, the parties will proceed with the formation of OPCO, and
  Verde may incur and/or pay for such Project Expenses as defined above, as Verde
  reasonably deems necessary. In the event that Phase 1 extends beyond sixty (60)
  days from the date of this Agreement, Nano shall, within five (5) days after
  receipt of notice from Verde: (i) immediately reimburse Verde for any such Project
  Expenses paid for by Verde; (ii) pay the amount of any outstanding contracts
  or other such amounts due in relation to such Project Expenses; and (iii) thereafter
  continue to pay the cost of any and all ongoing Project Expenses. Upon completion
  of Phase 1, Nano shall have fourteen (14) days in which to elect whether or
  not it intends to proceed with the Joint Venture. If Nano elects to proceed,
  it shall be required to fund OPCO by depositing Three Million Dollars 

 3 

 ($3,000,000.00) into OPCO’s account, with the Managers
  as joint signatories on that account. If for any reason Nano fails to make the
  $3,000,000 deposit within the 14-day period, or if Nano fails to contribute
  any additional amounts necessary to pay ongoing Project Expenses as set forth
  above, Verde may elect to terminate this Agreement, the Joint Venture and OPCO.
  In addition, prior to the completion of Phase 2, Nano may elect to terminate
  this Agreement, the Joint Venture and OPCO, by delivering thirty (30) days prior
  written notice to Verde. In the event of termination by Verde, Nano shall remain
  obligated to make any required payments for Project Expenses incurred by or
  contracted for by Verde, and any monthly payments coming due within the notice
  period, and Nano shall not be entitled to any reimbursement for funds invested.
  In the event of termination by Nano prior to completion of Phase 2, pursuant
  to the 30-day notice provision, Nano shall likewise be obligated to make any
  required payments for Project Expenses incurred by or contracted for by Verde
  and any monthly payments coming due within the notice period, but if Nano has
  made the $3,000,000 contribution, it shall be entitled to the return of
  any unused portion thereof after making the foregoing payments. 

 8. During Phase 2, OPCO will retain engineers to produce a Bankable Feasibility
  Study (the “Bankable Feasibility Study”). The criteria to be established
  in the Feasibility Study are set forth in Exhibit A. Nano will have until ninety
  (90) days after receiving the Bankable Feasibility Study (the “Funding
  Date), to contribute not less than Twenty-Seven Million Dollars ($27,000,000.00)
  to OPCO (“Full Project Funding”). Provided however, if at any time
  the Project requires additional funds to continue to operate, Nano will be obligated
  to contribute those funds. Verde is never obligated to contribute money to the
  Project. Subject to “Force Majeure” as defined below, in the event
  that Nano fails to make the full Project Funding contribution on or before the
  Funding Date, Verde may elect to terminate the Joint Venture and OPCO. Provided
  however, the Funding Date shall be extended for up to an additional fifteen
  (15) days so long as Nano is able to provide commercially reasonable evidence
  that the required contribution will be delivered to OPCO within that time frame.
  In addition, at any time after the completion of the Bankable Feasibility Study,
  Nano may elect to terminate the Joint Venture and OPCO by delivering thirty
  (30) days prior written notice to Verde. In the event that either Verde or Nano
  terminates the Joint Venture and OPCO, Nano shall remain obligated for the payment
  of any Project Expenses incurred by or contracted for by Verde and/or OPCO,
  and any monthly payments coming due to either of them within the notice period.
  In the event of termination 

 4 

 by either party, provided that Phase 2 has been completed
  and provided that Nano has not otherwise defaulted in its obligations under
  this Agreement or under the operative agreements for OPCO, Verde will grant
  Nano an assignment of ten percent (10%) of Verde’s net operating profits
  from the Project, until such time as Nano has received an amount equal to two
  (2) times the amount of its total invested capital in the Project, at which
  time the assignment of profits shall terminate. The investment in Phase 2 and
  Phase 3 is estimated at a total of thirty million dollars ($30,000,000).
  To the extent that the cost of these Phases exceeds $30,000,000, Nano will
  receive priority distributions of cash flow from operations to reimburse them
  for the overage.

 9. Nano is aware that in order for the Project to proceed,
  Gerald Lembas, a principal and/or affiliate of Verde’s must be paid the
  amount of Ten Million Dollars ($10,000,000.00) . Lembas will be paid $100,000
  from the $530,000 advanced by Nano upon execution of this Agreement. From
  the Full Project Funding payment described above, an additional Six Million,
  Four Hundred Thousand Dollars ($6,400,000.00) will be paid to Verde, for
  disbursement to Lembas, through, and as directed by Verde. Verde and Nano also
  agree that the $3,500,000.00 balance of the $10,000,000 will be paid
  off from net cash flow of the Project before any money is withheld for reserves
  as provided below, or before any money is otherwise distributed to Verde or
  Nano. The balance of the Full Project Funding payment will be used to fund the
  Project. In the event that additional funds are required to complete the Project,
  it shall be the responsibility of Nano to invest whatever additional sums may
  be necessary to fund the Project. Funding of the Project is all inclusive. It
  includes all of the Project Expenses described above, and the amount necessary
  to purchase all of the equipment and machinery to construct and operate a “Full
  Production Module” as defined in the Bankable Fesibility Study, and the
  payment of all overhead and expenses of the Project until they can be funded
  from cash flow. A Full Production Module shall mean a processing plant or plants
  that are capable of processing approximately two thousand (2,000) tons of Project
  Slag per day.

 10. Except as specifically provided above, none of the Full
  Project Funding contribution will be paid to Verde or returned to Nano. Any
  money left over once the Project is fully funded and cash-flowing, will be retained
  as a portion of the herein required operating reserves. After the payments described
  in paragraph 9 above are made, OPCO will not make any distributions of profits
  until the 

 5 

 company has at least ten million dollars ($10,000,000)
  in operating reserves. After that, OPCO will continue to maintain at least $10,000,000
  in reserves. To the extent that those reserves are after-tax dollars from profits,
  OPCO will always make distributions to Verde and Nano that are sufficient to
  cover the tax liability of their members as they set aside those funds as reserves.
  Other than as expressly stated in this Agreement, neither Verde nor Nano will
  be entitled to receive any amount from OPCO in consideration of their capital
  contributions, other than their share of the profits from the Project. The parties
  acknowledge that the Full Project Funding will fund the “Initial Phase”
  of the Project, which is one Full Production Module. 

 11. The parties agree that they will progress to Processing
  Plant Expansion (Phase 4) and construct additional Full Production Modules in
  accordance with the following protocol. For each 10,000,000 tons of slag or
  portion thereof comprising the Project Slag, the parties will construct an additional
  Full Production Module, or proportional part of a Full Production Module providing
  it is economically viable. Nano will fund the completion of all additional Full
  Production Modules and ancillary construction and/or renovation to buildings
  that may be required. As soon as Nano and Verde have each received distributions
  of profits equal to twenty-five million dollars ($25,000,000) net of estimated
  taxes, Nano will invest the amount necessary to complete another Full Production
  Module. That investment is estimated at ten million dollars ($10,000,000).
  To the extent that the cost of additional Full Production Modules exceeds $10,000,000,
  Nano will receive priority distributions of cash flow from operations to reimburse
  them for the overage. The foregoing procedure will be repeated so as to continuously
  complete the number of Project Modules necessary to process 2,000 tons of slag
  per day, for each 10,000,000 tons of slag, or portion thereof, comprising the
  total Project Slag. The parties intend that the foregoing procedure will be
  designed for a Project life of 15 - 20 years. In the event that Nano elects
  not to proceed with Processing Plant Expansion, then the balance of the Project
  Slag processing rights and license shall revert back to Verde. Provided however
  the foregoing provision shall not apply in the event that the engineers preparing
  the Bankable Feasibility Study determine that expansion is not economically
  viable at any particular time. 

 12. At the time Nano makes the $3,000,000 contribution,
  Verde will transfer to OPCO all rights to process the Project Slag to OPCO.
  Verde will also deliver a license for OPCO to use the Project Site for the Project.
  The license will give 

 6 

 OPCO the right to use any part of the site that is necessary
  for the success of the Project, including existing buildings and other structures.
  The parties agree that the Project Slag will be determined by the parties upon
  completion of Phase 1. The Project Slag will be delineated by allocating to
  OPCO, two-thirds (2/3) of the entire slag pile. The slag pile will be divided
  by mutual agreement of the parties, with the understanding that it must be done
  by creating a dividing line which cuts the slag pile in a reasonably straight-across
  manner, dividing the slag pile on a north-south basis. An example of a proposed
  division alignment is attached as Exhibit C. The Project Slag will be the 2/3
  of the slag pile extending from the southerly boundary of the slag pile, and
  Verde shall retain the remaining 1/3 of the slag pile running from the northerly
  boundary at the Verde River. Verde agrees that should Phase 1 reveal any major
  discrepancies in the quality of the slag, the parties will use their best efforts
  to create a division of the slag pile subject to the foregoing criteria that
  allocates the most economically viable slag to OPCO. Verde agrees that throughout
  the term of the Project, Verde will not conduct any processing operations on
  its portion of the slag, at the Project Site. Verde will limit its use of its
  portion of the slag, and of the Project Site, to the shipment of raw slag. At
  no time will Verde do anything that unreasonably interferes with the operation
  of the Project. 

 13. Although the managers must jointly agree on all decisions
  involving OPCO, Verde and Nano agree that OPCO will primarily rely on Nano personnel
  to handle the “technical” side of the Project and on Verde personnel
  to handle the “business” side. The technical side includes every
  aspect of processing the slag, and the business side includes all other aspects
  of running the company. The managers will be paid a salary for running OPCO,
  and other key personnel from both Nano and Verde will be paid by OPCO as employees,
  consultants, agents or subcontractors, in key managerial and administrative
  positions on both the technical and business sides of the Project. The parties
  hereby agree that until such time as the Managers mutually agree to the contrary,
  from and after Full Project Funding is received, Nano and Verde will each receive
  the annual amount of Five Hundred Thousand Dollars ($500,000.00) as compensation
  for their administrative personnel 

 14. Nano represents, covenants and warrants that: (i) although
  Verde and/or its affiliates have provided Nano with substantial technical data
  relating to the slag, neither Verde nor any of its affiliates have made any
  representation or warranty of 

 7 

 any kind relating to the amount or quality of the slag or
  the constituent minerals and/or by-products contained in the slag; (ii) neither
  Verde nor any of its affiliates have made any representation or warranty of
  any kind relating to the economic viability of the Project; (iii) that Verde
  is specifically relying upon Nano and its consultants to provide the information
  described in sub-paragraphs (i) and (ii) immediately above. Furthermore, Nano
  hereby indemnifies and holds Verde and its affiliates harmless from and against
  any and all claims, demands, causes of action or liability of any kind or nature
  that is related to or arises out of any regulatory or reporting requirements,
  and/or any investigatory actions by any governmental or quasi-governmental agency
  that are related to the participation in the Project by a company whose shares
  are publicly traded. 

 15. This Agreement is binding on Verde and Nano. By this Agreement,
  Verde and Nano agree to proceed as outlined above, to form and fund OPCO, to
  create an Operating Agreement for OPCO that reflects all of the terms and conditions
  contained in this Agreement, and to sign and deliver any additional documents
  that are reasonably necessary to carry out the intent of this Agreement. Verde
  and Nano agree to proceed in good faith and with all due haste, time being of
  the essence as to each and every term of this Agreement. The parties signing
  this Agreement unconditionally represent that they have the full authority to
  bind Verde and Nano, respectively, to all of the terms and conditions stated
  in this Agreement. The laws of the State of Arizona shall govern the validity,
  performance and enforcement of this Agreement. In the event of a dispute arising
  out of the terms hereunder, the prevailing party shall be awarded reasonable
  attorneys' fees in addition to court costs and other costs incidental thereto.

 16. If any party hereto shall be prevented by “Force
  Majeure” from the timely performance of any obligation arising under this
  Agreement, the failure shall be excused and the period for performance shall
  be extended for a period equal to the duration of Force Majeure. Force Majeure
  includes only the following causes beyond a party’s reasonable control
  that directly prevent such party from performing: (i) the imposition of any
  law, regulation, action or inaction by governmental authorities; (ii) the inability
  to obtain any permit or governmental authorization necessary to operate the
  Project; (iii) damage or destruction to the slag pile, plants or equipment by
  fire, explosion or flood; (iv) labor disputes or inability to obtain workmen
  or material; (v) delays in transportation; and (vi) acts of God. 

 8 

 17. The waiver by any party of any breach of any term, covenant
  or condition herein contained shall not be deemed to be a waiver of any subsequent
  breach of the same or any other term, condition or covenant herein contained.
  Any and all rights, remedies and options given in this Agreement to any party
  shall be cumulative an in addition to and without waiver of or in derogation
  of any right or remedy given under any law now or hereafter in effect. This
  Agreement represents the entire agreement of the parties with respect to the
  subject matter hereof, and all agreements entered into prior hereto are revoked
  and superseded by this Agreement, and no representations, warranties, inducements,
  or oral agreements have been made by any of the parties except as expressly
  set forth herein, or in other contemporaneous written agreements. This Agreement
  may not be changed, modified or rescinded, except in writing, signed by all
  parties hereto, and any attempt at oral modification of this Agreement shall
  be void and of no force and effect. 

 18. "Affiliate" shall mean: (i) any person or entity directly
  or indirectly controlling, controlled by or under common control with, or related
  within the third degree of consanguinity to another person or entity; and/or,
  (ii) any person or entity owning or controlling any of the outstanding voting
  interest or securities of such other person or entity; and/or (iii) any officer,
  director, member, manager or partner of such person or entity, and (iv) if such
  person or entity is an officer, director or partner of a company, then any such
  company for which such person or entity acts in any such capacity. 

 19. Nano shall have the right to assign its rights under this
  Agreement to an entity controlled by Nano or the principals of Nano. Provided
  however, such assignment must be made prior to the formation of OPCO, and no
  such assignment shall in any way relieve Nano of its duties and obligations
  hereunder. 

 20. This Agreement may be executed in several counterparts
  and delivered by facsimile transmission, each of which shall be deemed to be
  an original, but all of which shall constitute one and the same instrument.
  In addition, this Agreement may contain more than one counterpart of the signature
  pages and this Agreement may be executed by the affixing of the signature pages
  and all of such counterpart signature pages shall be read as though one, and
  they shall have the same force and effect as though all the signers had signed
  a single signature page. 

 9 

 IN WITNESS WHEREOF, the Parties have entered into this Agreement as of the
  day and year first above written. 

	 Verde River Iron Company, LLC  	 Nanominerals Corp.  
	  	 
	  	 
	 By:  	 “Harry B. Crockett”  	 By:  	 “Charles Ager” 
	  	 Harry B. Crockett  	  	 Charles Ager 
	  	 Managing Member  	  	 Chairman 

 10

 Exhibit A 

 Phase 1 – Drilling & Ore Reserve Study 

   “Drilling & Ore Reserve Study” shall mean
    drilling, assaying and extraction tests of the Clarkdale Slag Project by independent
    engineers. This work will result in the production of a report that contains
    the extractable grade and tonnage of the slag pile (Ore Reserves). This study
    will be conducted in such a manner so as to classify the ore reserves in sufficient
    detail to support the Bankable Feasibility Study (Phase 2). The Drilling &
    Ore Reserve Study shall be certified to Nano and to Verde. 

 Phase 2 - Bankable Feasibility Study

   “Bankable Feasibility Study” shall mean a report
    of the commercial, technical and environmental feasibility of processing and
    selling metals and other products from a deposit. Such a study shall include,
    in reasonable detail, an estimate of mineral resources (ore reserves); necessary
    pilot studies; description of the processing and waste disposal (if any) methods;
    environmental risk analysis; a list and time-line for issuance of all necessary
    permits; and an economic evaluation of the capital requirements, operating
    costs and expected profits. The economic evaluation and permit timing should
    be sufficiently positive to allow for financing of the project to progress
    to Processing Plant Construction & Operation (Phase 3). In the event that
    the certifying engineers selected by OPCO require the construction of a pilot
    plant, then OPCO will proceed as required. If the certifying engineers do
    not require a pilot plant, then OPCO will proceed with completion of the Bankable
    Feasibility Study without constructing a pilot plant. 

 Phase 3 – Processing Plant Construction & Operation 

   “Processing Plant Construction & Operation”
    shall mean the construction, start-up and operation of a commercial production
    facility to process the Clarkdale Slag as recommended in the Bankable Feasibility
    Study. OPCO will initially construct a module of the processing plant that
    will process approximately 300 tons of slag per day. OPCO will then perform
    such changes and modifications as are necessary until that modular plant achieves
    approximately 80% capacity, 80% of the recoveries, and 80% of the operating
    profits as outlined in the Bankable Feasibility Study (Phase 2). At that time,
    OPCO will proceed to complete a “Full Production Module” capable
    of processing approximately 2,000 tons of slag per day.

 Phase 4 – Processing Plant Expansion 

   “Processing Plant Expansion” shall mean the
    construction, start-up and operation of additional commercial production capacity
    to process the Clarkdale Slag at a higher yearly rate, provided such expansion
    is commercially viable. 

 11

 Exhibit B

  Project Expenses 

	 Current Project Expenses  	  	  	  
	  
	 1.	 Architect Contract (Site Plan)  	 $  	 15,000  	  
	 2.	 URS contract (permits only)  	 $  	 25,000  	 + expenses  
	 3.	 Hewlitt / Lassiter contract  	 $  	 15,000  	  
	 4.	 ALTA survey (project site)  	 $  	 11,000  	  
	 5. 	 Road extension survey (1⁄2 with Town)  	 $  	 10,000  	  
	 6. 	 Equipment and transportation payables  	 $  	 12,000  	  
	  
	 Additional Project Expenses  	  	  	  
	  
	 7. 	 Grinder payment  	 $  	 2,000  	 per month  
	 8. 	 Settlement payment (on partition action)  	 $  	 35,000 due on August __, 2005  
	 9. 	 Real estate taxes  	 $  	 estimated at 2,500 per month  
	 	  	  	 Semi-annual payments due on March 15th 
    
	 	  	  	 (unpaid) and October 15th  
	  
	 Future Project Expenses  	  	  	  
	  
	 10.	 Architect / Engineering (building renovation)  	 $  	 25,000  	 (est.) (contract pending)  
	 11. 	 Road Engineering  	 $  	 20,000  	 (est.)  
	 12. 	 Town Fees  	 $  	 15,000  	 (est.)  
	 13. 	 Building renovation  	 $  	 unknown  
	 14. 	 Bridge engineering and renovation  	 $  	 unknown  

 12 

 EXHIBIT B 

 PROJECT ACQUISITION COSTS 

 

	 
	
      INVOICE 

 May 31, 2005 

 Mr. Ian Matheson

  Phage Genomics Inc

  2215 Lucerne Circle

  Henderson, NV

  89014 

 RE: CLARKDALE SLAG PROJECT COSTS 

	 Date of Service 
    	  	 Description 
    	 	 Total  
	  
	 Jan 1 – May 31  	 Clarkdale Property Payments  	 $ 	 530,000.00  
	  	 •	 Signing commitment & 1st month option 
    	 	  
	  	 •	 Paid to VRIC on May 20th on signing  	 	  
	  
	  	 Sierra Mineral Management Payment  	 $ 	 60,000.00  
	  	 •	 Clarkdale Engineering Report (delivered)  	 	  
	  	 •	 Commitment to become Project Manager  	 	  
	  	 •	 Relocate to Phoenix – Phase 1  	 	  
	  
	  	 Clarkdale Acquisition Flat Fee  	 $ 	 100,000.00  
	  	 •	 Technical consulting, legal fees, bridge  	 	  
	  	  	 financing fees, marketing expenses, travel  	 	  
	  	  	 expenses etc.  	 	  
	  
	  	 TOTAL DUE 
    	 $
    	 690,000.00 
    

 PLEASE MAKE PAYMENT OUT TO NANOMINERALS CORP. 

 If you have any questions or concerns with this invoice please contact Charles
  Ager at 702.523.3881. 

 Thank you. 

	

    	
	
	

	Vancouver Corporate Office	17146 20th Avenue

      Surrey, BC V3S 9N4

      www.nanomineralscorp.com	Las Vegas Field Office	PO Box 530696

      Henderson, NV 89053

      Fax: 702.263.8178

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