Document:

Exhibit 10.13

EXECUTIVE EMPLOYMENT AGREEMENT

This Executive
Employment Agreement (“Agreement”) is entered into as of APRIL 23RD, 2004, by and between GenuTec
Business Solutions, Inc., a Montana Corporation (hereinafter referred to as
“the Company) and Matt Pekarek (hereinafter referred to as “the Executive).

RECITALS

A.                                   The
Company is an Enhanced Communications Provider.

B.                                     Executive
has substantial experience in financial management and has significant
knowledge of the business and the products of the Company.

C.                                     The
Company desires the Executive serve as its Executive Vice President and its
Chief Financial Officer and Executive desires to serve as Executive Vice
President and Chief Financial Officer of the Company.

D.                                    The
Company and Executive have agreed to enter into this Agreement upon the terms
and conditions set forth below.

NOW, THEREFORE, in
consideration of their mutual undertakings, obligations and covenants, the
Company and Executive hereby agree as follows:

1.                                       EMPLOYMENT
– TERM-DUTIES

1.1                                 Term.   Subject to the provisions of Section 4,
Company hereby employs Executive and Executive hereby accepts employment as
Executive Vice President and Chief Financial Officer with the Company to
perform the duties described below for a term commencing as of July 6, 2004 for
a period of two years (2) ending July 5, 2006. 
This Agreement shall be automatically renewed for additional one year
terms unless either party gives written notice of non-renewal to the other
party at least ninety (90) days prior to the end of the initial or any renewal
term.

1.2                                 Duties.
Executive shall serve the Company in the capacity of Executive Vice President
and Chief Financial Officer and, subject to the direction of the President/C.O.O.
and Board of Directors, shall perform and discharge well and faithfully those
duties customarily performed by an Executive Vice President and Chief Financial
Officer of a business similarly situated to that of Company or which may
otherwise be assigned from time to time by the Company in connection with the
conduct of its business.  Nothing herein
shall preclude the Board of Directors of the Company from changing the duties
of Executive if the Board concludes in its discretion that such changes are in
the Company’s best interests.  If
Executive is appointed or elected to serve as a director or other officer of
the Company or any subsidiary thereof during the term of this Agreement,
Executive will serve in such capacity without any additional compensation,
unless agreed to in writing by Company and Executive.

 1
 

 

2.                                       EXTENT
OF SERVICES

2.1                                 Conflict
Of Interest.  During the Term,
Employee shall devote Employee’s full working time, ability, and attention to
the business of the Company, and shall not accept other employment or engage in
any other outside business activity that materially interferes with or
constitutes a conflict of interest with the performance of Employee’s duties
and responsibilities under this Agreement. 
The Employee represents to the Company that he has no other outstanding
commitments inconsistent with any of the terms of this Agreement.  During the Term and during any period
thereafter during which the Employee is receiving severance or consulting
payments from the Company, the Employee shall not, either on his own behalf or
as an employee, partner, agent, employer, principal, stockholder, officer,
director, consultant, or in any other individual or representative capacity,
knowingly engage in any activity or business, or be employed in any activity or
business, which is of the same nature as, or substantially similar to, and in
competition with the activity or business of the Company, where “activity or
business of the Company” means development, marketing and selling of services
or products for enablement or management of computer telephony enhanced
communications services, specifically voice messaging and GenuTec platform
services; provided that nothing set forth herein shall prohibit the Employee
from purchasing or otherwise acquiring, directly or indirectly, up to one
percent (1%) of any class of publicly traded securities.

3.                                       COMPENSATION,
FRINGE BENEFITS AND EXPENSES

3.1                                 Salary.  The initial base annual salary to be paid by
the Company to Executive for services rendered under this Agreement shall be
$10,000.00, payable semi-monthly, and shall be established from time to time by
the Compensation Committee of the Company’s Board of Directors, provided that
such annual salary shall be no less than ten percent (10%) more than the next
highest paid executive in the Company and shall not be less than Ten Thousand
Dollars ($10,000.00) base salary per month. Each monthly payment installment
shall be subject to all authorized and required payroll deductions for taxes,
social security and the like.  In
addition, The Boards Compensation Committee will establish a performance based
annual cash bonus program as well as a stock option program, based on the last
stock price of $1.00 per share as of 5/01/04, with a minimum of 100,000 shares
for the first year plus 100,000 shares as a signing bonus.  Such options shall be subject to the terms of
the stock option plan under which they are granted and shall vest as provided
in the stock option agreement evidencing such options.  All compensation the Executive under the
terms of this Agreement shall be due and payable upon termination of Executive
as specified herein.

3.2                                 Vacation.  Executive shall be entitled to a paid annual
vacation of at least ten percent (10%) more than vacations received by
Department Managers.  Vacation shall be
taken at times annually agreed upon by Executive and the Company.

3.3                                 Benefits.  During the term of his employment pursuant to
this Agreement, Executive shall be entitled to participate in all Executive
benefit plans or program of the Company, which are instituted by the Company
and in which all, or substantially all, other salaried Executives of the
Company are entitled to participate, including but not limited to, Group Health

 2
 

 

Insurance including medical, dental and vision minimum coverage, short
and long term disability insurance and automobile insurance for a Company
automobile or an allowance for automobile insurance if Executive is not
provided with a Company owned automobile, if any, all in accordance with
Company’s Policy And Procedures Manual.

 

3.4                                 Company
Travel Expenses.  All reasonable
expenses related to Company business incurred by Executive during the terms of
his employment shall be paid by Company or reimbursed to Executive in the event
Executive may have paid for such expenses in advance, upon presentment of
receipts for such expenses, in accordance with Company’s expense reimbursement
policies as established from time to time.

4.                                       TERMINATION
PRIOR TO EXPIRATION OF TERM

4.1                                 Breach
or Neglect.  If Executive breaches
any term or provision of this Agreement or habitually neglects the duties or
obligations required of him under this Agreement, or for other good cause, the
Company may at its option terminate this Agreement by giving written notice to
Executive; provided, however, in the event the Company contends that Executive
has breached or is not performing the services required by this Agreement or
that it has good cause to terminate Executive’s employment pursuant to this
Paragraph 4.1, the Company shall provide Executive with a written notice
specifying in reasonable detail the breach or the services or matters which it
contends Executive had not been adequately performing and why the Company has
good cause to terminate this Agreement and what Executive should do to
adequately perform his obligations hereunder. 
If Executive remedies such breach or performs the required services
within ten (10) business days of receipt of the notice or modifies his
performance to correct the matters complained of (if such breach is capable of
cure or if such matters can be corrected), Executive’s breach will be deemed
cured and he shall not be terminated.  If
Executive does not remedy such breach or perform the required services or
modify his performance to correct the matters complained of, the Company shall
have the right to immediately terminate this Agreement at the end of said ten
(10) business day period.  If such,
breach is not capable of cure or such performance cannot be corrected, then
this Agreement shall be deemed terminated immediately upon written notice to
the Executive.

4.2                                 Business
Closure.  If the Company ceases
business operations or is unable or not permitted to continue its business for
any reason, the Company may, at its option, terminate this Agreement by giving
written notice to Executive without further obligation to Executive.

4.3                                 Disability.  If Executive becomes disabled during the term
of this Agreement and such disability continues for a period of ninety (90)
days, the Company may, at its option, upon or after the expiration of such
ninety day period, terminate this Agreement by giving written notice to
Executive.  While Executive is so
disabled, the Company shall pay to Executive his full monthly salary
installment for the first month and fifty percent (50%) of his monthly salary
for the next five months as provided in Paragraph 3.1, provided such
installments shall be reduced by all amounts paid to Executive on account of
disability insurance provided by the Company, worker’s compensation, social
security, or other payments made to Executive arising out of his disability;
provided further, however, that such payments by the Company shall cease upon
the earlier of (a)

 3
 

 

the expiration of the term of this Agreement, or (b) the earlier
termination of this Agreement pursuant to Paragraphs 4.1 and 4.2.  For the purpose of this Agreement, the term “disabled”
shall be defined as Executive’s inability, through physical or mental illness
or other such cause, to perform substantially all of the duties, which he is
required to perform under this Agreement. 
In determining whether Executive is disabled, the Company may rely upon
the written statement provided by a licensed physician acceptable to the
Company.  Executive shall allow himself
to be examined from time to time by any licensed physician selected by the
Company in relation to the disability.

 

4.4                                 Effect
of Termination.  If this Agreement is
terminated before the end of its then-current term under the provisions of
Paragraphs 4.1 or 4.2 or because of the Executive’s resignation, the Company
shall only pay Employee the base salary earned by him up to the date of
termination, and the Company shall have no further obligation to Employee
thereafter. Any termination of Employee’s employment shall be without prejudice
to any right or remedy to which the Company may be entitled whether at law, in
equity, or under this Agreement.

4.5                                 Return
of Company Property.  Upon
termination of this Agreement for any reason, Employee shall immediately return
to the Company, without condition, all documents, files, records, keys, and
other property of the Company in Employee’s possession regardless of the media
on which such items are stored, and Employee shall not retain any copies or
duplicates thereof.  Employee has signed
a Proprietary Information and Inventors Agreement, a copy of which is attached
hereto as Exhibit A, that covers protection of the Company’s confidential
information and assignment of inventions (the “Confidentiality Agreement).  Employee hereby represents and warrants to
the Company that he has complied with all obligations under the Confidentiality
Agreement and agrees to continue to abide by the Confidentiality Agreement and
further agrees that the provisions of the Confidentiality Agreement shall
survive any termination of this Agreement or of the Employee’s employment relationship
with the Company.

4.6                                 Without
Cause.  Notwithstanding any other
subparagraph of this Paragraph 4, the Company shall have the right to terminate
this Agreement at any time during its term by written notice to that effect,
delivered to Executive, whereupon all salaries and benefits shall be paid by
Company for the balance of the term of this Agreement, but not to exceed one
year.  The sums shall be paid on a
semi-monthly basis during such period, in accordance with Company’s normal
payroll policies and procedures; provided that, the Company’s obligation to pay
such accounts shall cease immediately upon Executive’s breach of the provisions
of Section 5 below or of any Proprietary Invention Agreement entered into
between the Company and the Executive.

4.7                                 Separate
Causes for Termination.  Except as
otherwise provided herein, the paragraphs in this Agreement providing for the
Company’s right to terminate this Agreement shall be interpreted wholly
independent from and without reference to one another.

4.8                                 Death
During Employment.  If Executive dies
during the term of this employment, the Company shall pay to the estate of
Executive the compensation which would otherwise be payable to Executive up to
the end of the period remaining under the terms of this Agreement, and the
Company shall have no further obligations under this Agreement or otherwise in
respect of Executive’s employment.  All
back salary, if owed, would be due and payable, plus

 4
 

 

personal Guarantees would be removed. 
Per Section 4.8.

 

5.                                       NONDISCLOSURE
OF CONFIDENTIAL INFORMATION

5.1                                 Except
with the Company’s prior written consent, Executive agrees that he will not
disclose or use at any time, during the term of his employment with the Company
or thereafter, any confidential Information of the Company.  For purposes of this Agreement, “Confidential
Information” includes, without limitation, all information which is known or
intended to be known only by Executives of the Company or by persons who are in
a confidential relationship with the Company, including, without limitation,
trade secrets, proprietary information, unique processes, research or marketing
reports, operating techniques, licenses, trademarks and copyrights whether
provided to Executive by the Company or developed or discovered by him while at
the Company, and including further any such Confidential Information relating
to any customer, vendor, licensor, licensee or party transacting business with
the Company.

5.2                                 Executive
recognizes and acknowledges that the lists of the Company’s customers,
distributors, resellers and dealers as they may exist from time to time are
valuable, confidential, special and unique assets of the Company’s business in
the nature of a trade secret and Executive will not, during the term of this
Agreement or thereafter disclose such lists or any part thereof to any person,
firm, corporation, association or entity for any purpose or reason whatsoever.

5.3                                 Executive
agrees to hold as the Company’s property, all memoranda, books, papers,
letters, formulae and other data and all copies thereof and information
generated there from, in any way relating to the Company’s business and
affairs, made by him or otherwise coming into his possession, and at
termination of his employment, or on demand of the Company at any time, to
deliver the same to the Company.

5.4                                 Non-Solicitation.  The Employee covenants and agrees with the
Company that during the Term and for a period expiring two (2) years after the
termination of this Agreement, neither the Employee nor any of his Controlled
Affiliates (as hereinafter defined) shall, directly or indirectly, (i.e.)
solicit encourage, or entice, or attempt to solicit, encourage, or entice any
of the employees of the Company or any of its affiliates to terminate their
employment with the Company or to become employed by any firm, company, or
other business enterprise with which the Employee may then be connected, or
(ii) solicit, induce, or entice, or attempt to solicit, induce, or entice, any
company with which the Company has an agreement, or any company with which the
Company has pursued an agreement during the Employee’s employment period, on
behalf of himself or any other person, firm, company, or business enterprise
with which the Employee may then be connected to sever, terminate or diminish
its relationship with the Company.  In
addition, for a period expiring two (2) years after the termination of this
Agreement, the Employee shall not, directly or indirectly, hire any person
employed by the Company during the twelve (12) month period prior to the
Employee’s date of termination.  As used
herein, “Controlled Affiliate” of the Employee means any member of the Employee’s
immediate family (including, without limitation, his spouse, children, parents
and siblings) and any other person or entity which, directly or indirectly, is
at any time controlled by the Employee. 
For purposes of this definition, “control” of a person or entity means
the power, direct or indirect, to direct or cause the direction of the
management and policies of such person, whether by contract or otherwise.

 5
 

 

6.                                       GENERAL
PROVISIONS

6.1                                 Notices.  All notices, requests, demands and other
communications to be given or sent pursuant to this Agreement shall be in
writing and shall be deemed to have been duly given when delivered by hand or
mailed by first class certified mail, return receipt requested, addressed as
follows:

If to the Company:

GenuTec Business
Solutions, Inc.

27121 Aliso Creek Road,
Suite# 130

Aliso Viejo, CA 92656

Attention: 
Board of Directors

If to Executive:

Matt Pekarek

Either party may change
its address set forth above by notice to the other party given in accordance
with this Paragraph.

6.2                                 Severability.  If any provision of this Agreement shall, for
any reason, be adjudged by any court of competent jurisdiction to be invalid or
unenforceable, such judgment shall not effect, impair or invalidate the
remainder of this Agreement but shall be confirmed in its operation to the
provision of this Agreement directly involved in the controversy in which such
judgment shall have been rendered.

6.3                                 Attorney’s
Fees and Costs.  If any action at law
or in equity is necessary to enforce or interpret the terms of this Agreement,
the prevailing party shall be entitled to reasonable attorneys’ fees, costs,
and necessary disbursements in addition to any relief to which it may be
entitled.

6.4                                 Assignment.  This Agreement shall be binding upon and
inure to the benefit of the Company, its successors and assigns.  Because of the special, unique and
extraordinary character of Executive’s services, Executive may not assign all
or any part of his obligations under this Agreement.

6.5                                 Receipt
of Agreement.  Each of the parties
hereto acknowledges that it has read this Agreement in its entirety and does
hereby acknowledge receipt of a fully executed copy thereof.  A fully executed copy shall be an original
for all purposes, and is a duplicate original.

6.6                                 Governing
Law.  This Agreement shall be
governed by and construed in accordance with the laws of the State of
California.

6.7                                 Captions
and Paragraph Headings.  Captions and
paragraph headings used herein are for convenience and shall not affect the
construction of this Agreement.

 6
 

 

6.8                                 Entire
Agreement.  This Agreement contains
the entire agreement between the parties with respect to the employment of
Executive by the Company and supercedes all prior and contemporaneous
agreements, representations and understandings of the parties, whether written
or oral.  No modification, amendment or
waiver of any of the provisions of this Agreement shall be effective unless in
writing signed by both parties.

6.9                                 Waiver
of Breach.  The failure to enforce at
any time any of the provisions of this Agreement, or to require at any time
performance by the other party of any of the provisions hereof, shall in no way
be construed to be a waiver of such provisions or to affect either the validity
of this Agreement or any part hereof or the right of either party thereafter to
enforce each and every provision in accordance with the terms of this
Agreement.

6.10                           Agreement
Prevails.  The parties agree that in
the event of any conflict or inconsistency between the terms of this Agreement
and the Company’s personnel policies or procedures, the terms of this Agreement
shall prevail.

6.11                           Contingency.  This Agreement is subject to and contingent
upon, and shall not become effective, until the consummation of the Company’s
acquisition of Sound Media Group, as contemplated in that certain Letter of
Intent dated January 2, 2004.

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

	
  

  	
   

  	
  GenuTec Business Solutions, Inc.

  
	
   

  	
   

  	
   

  
	
  /s/ Matt Pekarek

  	
   

  	
   

  	
  By:

  	
  /s/ Lee J. Danna

  	
   

  
	
  Matt Pekarek,
  Individually

  	
   

  	
  Title:

  	
  C.E.O.

  	
   

  
						

 

 7Exhibit
4.1

 

EXECUTION
COPY

 

 

GEORGIA
GULF CORPORATION

 

AND
EACH OF THE GUARANTORS PARTY HERETO

 

9.5%
SENIOR NOTES DUE 2014

 

 

INDENTURE

 

Dated
as of October 3, 2006

 

 

LASALLE
BANK, NATIONAL ASSOCIATION

 

Trustee

 

 

 

 

 

CROSS-REFERENCE
TABLE*

 

	
  Trust
  Indenture

  Act Section

  	
   

  	
  Indenture Section

  	
   

  
	
  310(a)(1)

  	
   

  	
  7.10

  	
   

  
	
  (a)(2)

  	
   

  	
  7.10

  	
   

  
	
  (a)(3)

  	
   

  	
  N.A.

  	
   

  
	
  (a)(4)

  	
   

  	
  N.A.

  	
   

  
	
  (a)(5)

  	
   

  	
  7.10

  	
   

  
	
  (b)

  	
   

  	
  7.10

  	
   

  
	
  (c)

  	
   

  	
  N.A.

  	
   

  
	
  311(a)

  	
   

  	
  7.11

  	
   

  
	
  (b)

  	
   

  	
  7.11

  	
   

  
	
  (c)

  	
   

  	
  N.A.

  	
   

  
	
  312(a)

  	
   

  	
  2.05

  	
   

  
	
  (b)

  	
   

  	
  12.03

  	
   

  
	
  (c)

  	
   

  	
  12.03

  	
   

  
	
  313(a)

  	
   

  	
  7.06

  	
   

  
	
  (b)(2)

  	
   

  	
  7.06; 7.07

  	
   

  
	
  (c)

  	
   

  	
  7.06; 12.02

  	
   

  
	
  (d)

  	
   

  	
  7.06

  	
   

  
	
  314(a)

  	
   

  	
  4.03;12.02; 12.05

  	
   

  
	
  (c)(1)

  	
   

  	
  12.04

  	
   

  
	
  (c)(2)

  	
   

  	
  12.04

  	
   

  
	
  (c)(3)

  	
   

  	
  N.A.

  	
   

  
	
  (e)

  	
   

  	
  12.05

  	
   

  
	
  (f)

  	
   

  	
  N.A.

  	
   

  
	
  315(a)

  	
   

  	
  7.01

  	
   

  
	
  (b)

  	
   

  	
  7.05; 12.02

  	
   

  
	
  (c)

  	
   

  	
  7.01

  	
   

  
	
  (d)

  	
   

  	
  7.01

  	
   

  
	
  (e)

  	
   

  	
  6.11

  	
   

  
	
  316(a) (last sentence)

  	
   

  	
  2.09

  	
   

  
	
  (a)(1)(A)

  	
   

  	
  6.05

  	
   

  
	
  (a)(1)(B)

  	
   

  	
  6.04

  	
   

  
	
  (a)(2)

  	
   

  	
  N.A.

  	
   

  
	
  (b)

  	
   

  	
  6.07

  	
   

  
	
  (c)

  	
   

  	
  2.12

  	
   

  
	
  317(a)(1)

  	
   

  	
  6.08

  	
   

  
	
  (a)(2)

  	
   

  	
  6.09

  	
   

  
	
  (b)

  	
   

  	
  2.04

  	
   

  
	
  318(a)

  	
   

  	
  12.01

  	
   

  
	
  (b)

  	
   

  	
  N.A.

  	
   

  
	
  (c)

  	
   

  	
  12.01

  	
   

  

 

N.A. means not applicable.

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

 

 

TABLE
OF CONTENTS

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  ARTICLE 1

  DEFINITIONS AND INCORPORATION

  BY REFERENCE

  
	
   

  	
   

  	
   

  
	
  Section
  1.01

  	
  Definitions

  	
  1

  
	
  Section
  1.02

  	
  Other Definitions

  	
  27

  
	
  Section
  1.03

  	
  Incorporation by Reference of Trust Indenture Act

  	
  28

  
	
  Section
  1.04

  	
  Rules of Construction

  	
  28

  
	
   

  	
   

  	
   

  
	
  ARTICLE 2

  THE NOTES

  
	
   

  	
   

  	
   

  
	
  Section
  2.01

  	
  Form and Dating

  	
  29

  
	
  Section
  2.02

  	
  Execution and Authentication

  	
  29

  
	
  Section
  2.03

  	
  Registrar and Paying Agent

  	
  30

  
	
  Section
  2.04

  	
  Paying Agent to Hold Money in Trust

  	
  30

  
	
  Section
  2.05

  	
  Holder Lists

  	
  30

  
	
  Section
  2.06

  	
  Transfer and Exchange

  	
  31

  
	
  Section
  2.07

  	
  Replacement Notes

  	
  42

  
	
  Section
  2.08

  	
  Outstanding Notes

  	
  42

  
	
  Section
  2.09

  	
  Treasury Notes

  	
  43

  
	
  Section
  2.10

  	
  Temporary Notes

  	
  43

  
	
  Section
  2.11

  	
  Cancellation

  	
  43

  
	
  Section
  2.12

  	
  Defaulted Interest

  	
  43

  
	
   

  	
   

  	
   

  
	
  ARTICLE 3

  REDEMPTION AND PREPAYMENT

  
	
   

  	
   

  	
   

  
	
  Section
  3.01

  	
  Notices to Trustee

  	
  44

  
	
  Section
  3.02

  	
  Selection of Notes to Be Redeemed or Purchased

  	
  44

  
	
  Section
  3.03

  	
  Notice of Redemption

  	
  44

  
	
  Section
  3.04

  	
  Effect of Notice of Redemption

  	
  45

  
	
  Section
  3.05

  	
  Deposit of Redemption or Purchase Price

  	
  45

  
	
  Section
  3.06

  	
  Notes Redeemed or Purchased in Part

  	
  46

  
	
  Section
  3.07

  	
  Optional Redemption

  	
  46

  
	
  Section
  3.08

  	
  Mandatory Redemption

  	
  47

  
	
  Section
  3.09

  	
  Offer to Purchase by Application of Excess Proceeds

  	
  47

  
	
   

  	
   

  	
   

  
	
  ARTICLE 4

  COVENANTS

  
	
   

  	
   

  	
   

  
	
  Section
  4.01

  	
  Payment of Notes

  	
  48

  
	
  Section
  4.02

  	
  Maintenance of Office or Agency

  	
  49

  
	
  Section
  4.03

  	
  Reports

  	
  49

  
	
  Section
  4.04

  	
  Compliance Certificate

  	
  50

  
	
  Section
  4.05

  	
  Taxes

  	
  51

  
	
  Section
  4.06

  	
  Stay, Extension and Usury Laws

  	
  51

  
	
  Section
  4.07

  	
  Restricted Payments

  	
  51

  
	
  Section
  4.08

  	
  Dividend and Other Payment Restrictions Affecting Subsidiaries

  	
  55

  
	
  Section
  4.09

  	
  Incurrence of Indebtedness and Issuance of Preferred Stock

  	
  57

  
	
  Section
  4.10

  	
  Asset Sales

  	
  60

  

 

 

	
  Section
  4.11

  	
  Transactions with Affiliates

  	
  62

  
	
  Section
  4.12

  	
  Liens

  	
  63

  
	
  Section
  4.13

  	
  Business Activities

  	
  63

  
	
  Section
  4.14

  	
  Corporate Existence

  	
  63

  
	
  Section
  4.15

  	
  Offer to Repurchase Upon Change of Control

  	
  63

  
	
  Section
  4.16

  	
  Payments for Consent

  	
  65

  
	
  Section
  4.17

  	
  Additional Note Guarantees

  	
  65

  
	
  Section
  4.18

  	
  Designation of Restricted and Unrestricted Subsidiaries

  	
  66

  
	
  Section
  4.19

  	
  Changes in Covenants When Notes Rated Investment Grade

  	
  66

  
	
   

  	
   

  	
   

  
	
  ARTICLE 5

  SUCCESSORS

  
	
   

  	
   

  	
   

  
	
  Section
  5.01

  	
  Merger, Consolidation, or Sale of Assets

  	
  67

  
	
  Section
  5.02

  	
  Successor Corporation Substituted

  	
  68

  
	
   

  	
   

  	
   

  
	
  ARTICLE 6

  DEFAULTS AND REMEDIES

  
	
   

  	
   

  	
   

  
	
  Section
  6.01

  	
  Events of Default

  	
  68

  
	
  Section
  6.02

  	
  Acceleration

  	
  70

  
	
  Section
  6.03

  	
  Other Remedies

  	
  70

  
	
  Section
  6.04

  	
  Waiver of Past Defaults

  	
  70

  
	
  Section
  6.05

  	
  Control by Majority

  	
  70

  
	
  Section
  6.06

  	
  Limitation on Suits

  	
  71

  
	
  Section
  6.07

  	
  Rights of Holders of Notes to Receive Payment

  	
  71

  
	
  Section
  6.08

  	
  Collection Suit by Trustee

  	
  71

  
	
  Section
  6.09

  	
  Trustee May File Proofs of Claim

  	
  71

  
	
  Section
  6.10

  	
  Priorities

  	
  72

  
	
  Section
  6.11

  	
  Undertaking for Costs

  	
  72

  
	
   

  	
   

  	
   

  
	
  ARTICLE 7

  TRUSTEE

  
	
   

  	
   

  	
   

  
	
  Section
  7.01

  	
  Duties of Trustee

  	
  72

  
	
  Section
  7.02

  	
  Rights of Trustee

  	
  73

  
	
  Section
  7.03

  	
  Individual Rights of Trustee

  	
  74

  
	
  Section
  7.04

  	
  Trustee’s Disclaimer

  	
  74

  
	
  Section
  7.05

  	
  Notice of Defaults

  	
  74

  
	
  Section
  7.06

  	
  Reports by Trustee to Holders of the Notes

  	
  74

  
	
  Section
  7.07

  	
  Compensation and Indemnity

  	
  75

  
	
  Section
  7.08

  	
  Replacement of Trustee

  	
  76

  
	
  Section
  7.09

  	
  Successor Trustee by Merger, etc

  	
  76

  
	
  Section
  7.10

  	
  Eligibility; Disqualification

  	
  77

  
	
  Section
  7.11

  	
  Preferential Collection of Claims Against Company

  	
  77

  
	
   

  	
   

  	
   

  
	
  ARTICLE 8

  LEGAL DEFEASANCE AND COVENANT DEFEASANCE

  
	
   

  	
   

  	
   

  
	
  Section
  8.01

  	
  Option to Effect Legal Defeasance or Covenant Defeasance

  	
  77

  
	
  Section
  8.02

  	
  Legal Defeasance and Discharge

  	
  77

  
	
  Section
  8.03

  	
  Covenant Defeasance

  	
  78

  
	
  Section
  8.04

  	
  Conditions to Legal or Covenant Defeasance

  	
  78

  
	
  Section
  8.05

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

  	
  79

  

 

ii

 

	
  Section
  8.06

  	
  Repayment to Company

  	
  80

  
	
  Section
  8.07

  	
  Reinstatement

  	
  80

  
	
   

  	
   

  	
   

  
	
  ARTICLE 9

  AMENDMENT, SUPPLEMENT AND WAIVER

  
	
   

  	
   

  	
   

  
	
  Section
  9.01

  	
  Without Consent of Holders of Notes

  	
  80

  
	
  Section
  9.02

  	
  With Consent of Holders of Notes

  	
  81

  
	
  Section
  9.03

  	
  Compliance with Trust Indenture Act

  	
  83

  
	
  Section
  9.04

  	
  Revocation and Effect of Consents

  	
  83

  
	
  Section
  9.05

  	
  Notation on or Exchange of Notes

  	
  83

  
	
  Section
  9.06

  	
  Trustee to Sign Amendments, etc

  	
  83

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE 10

  NOTE GUARANTEES

  
	
   

  	
   

  	
   

  
	
  Section
  10.01.

  	
  Guarantee

  	
  83

  
	
  Section
  10.02.

  	
  Limitation on Guarantor Liability

  	
  84

  
	
  Section
  10.03.

  	
  Execution and Delivery of Note Guarantee

  	
  85

  
	
  Section
  10.04.

  	
  Guarantors May Consolidate, etc., on Certain Terms

  	
  85

  
	
  Section
  10.05.

  	
  Releases

  	
  86

  
	
   

  	
   

  	
   

  
	
  ARTICLE 11

  SATISFACTION AND DISCHARGE

  
	
   

  	
   

  	
   

  
	
  Section
  11.01

  	
  Satisfaction and Discharge

  	
  86

  
	
  Section
  11.02

  	
  Application of Trust Money

  	
  87

  
	
   

  	
   

  	
   

  
	
  ARTICLE 12

  MISCELLANEOUS

  
	
   

  	
   

  	
   

  
	
  Section
  12.01

  	
  Trust Indenture Act Controls

  	
  88

  
	
  Section
  12.02

  	
  Notices

  	
  88

  
	
  Section
  12.03

  	
  Communication by Holders of Notes with Other Holders of Notes

  	
  89

  
	
  Section
  12.04

  	
  Certificate and Opinion as to Conditions Precedent

  	
  89

  
	
  Section
  12.05

  	
  Statements Required in Certificate or Opinion

  	
  89

  
	
  Section
  12.06

  	
  Rules by Trustee and Agents

  	
  90

  
	
  Section
  12.07

  	
  No Personal Liability of Directors, Officers, Employees and Stockholders

  	
  90

  
	
  Section
  12.08

  	
  Governing Law

  	
  90

  
	
  Section
  12.09

  	
  No Adverse Interpretation of Other Agreements

  	
  90

  
	
  Section
  12.10

  	
  Successors

  	
  90

  
	
  Section
  12.11

  	
  Severability

  	
  90

  
	
  Section
  12.12

  	
  Counterpart Originals

  	
  90

  
	
  Section
  12.13

  	
  Table of Contents, Headings, etc

  	
  91

  
	
   

  	
   

  	
   

  
	
  EXHIBITS

  
	
   

  	
   

  	
   

  
	
  Exhibit
  A

  	
  FORM OF NOTE

  	
   

  
	
  Exhibit
  B

  	
  FORM OF CERTIFICATE OF TRANSFER

  	
   

  
	
  Exhibit
  C

  	
  FORM OF CERTIFICATE OF EXCHANGE

  	
   

  
	
  Exhibit
  D

  	
  FORM OF CERTIFICATE OF ACQUIRING INSTITUTIONAL
  ACCREDITED INVESTOR

  	
   

  
	
  Exhibit
  E

  	
  FORM OF NOTATION OF GUARANTEE

  	
   

  
	
  Exhibit
  F

  	
  FORM OF SUPPLEMENTAL INDENTURE

  	
   

  
				

 

iii

 

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

 

The Company, the Guarantors and the Trustee agree as
follows for the benefit of each other and for the equal and ratable benefit of
the Holders (as defined) of the 9.5%
Senior Notes due 2014 (the “Notes”):

 

ARTICLE 1

DEFINITIONS AND INCORPORATION

BY REFERENCE

 

Section 1.01           Definitions.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

1

 

(2)           the
excess of:

 

(a)           the
present value at such redemption date of (i) the redemption price of the Note
at October 15, 2010 (such redemption price being set forth in the table
appearing under Section 3.07 hereof) plus (ii) all required interest payments
due on the Note through October 15, 2010 (excluding interest paid prior to the
redemption date and accrued but unpaid interest to the redemption date),
computed using a discount rate equal to the Treasury Rate as of such redemption
date plus 50 basis points; over

 

(b)           the
principal amount of the Note.

 

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

 

“Asset Sale”
means:

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

2

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

“Board of Directors”
means:

 

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

 

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

 

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

 

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

 

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

 

3

 

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

 

“Canadian Credit Parties”
means each of:

 

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

 

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

 

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

 

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

 

“Capital Stock”
means:

 

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

 

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

 

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

 

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

 

“Cash Equivalents”
means:

 

(1)           United
States dollars or Canadian dollars;

 

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

 

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

 

4

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

“Clearstream”
means Clearstream Banking, S.A.

 

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

 

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

 

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

 

(a)           has
incurred or assumed any Indebtedness since the beginning of such period that
remains outstanding on such date of determination or if the transaction giving
rise to the need to calculate the Consolidated Coverage Ratio is an incurrence
of Indebtedness, Consolidated EBITDA and Consolidated Interest Expense for such
period will be calculated after giving effect on a pro forma
basis to such Indebtedness as if such Indebtedness had been incurred on the first
day of such period (except that in making such computation, the amount of
revolving credit Indebtedness under any Credit Facility outstanding on the date
of such calculation will be deemed to be (i) the average daily balance of such
Indebtedness during such four fiscal quarters or such shorter period for which
such facility was outstanding, or (ii) if such facility was created after the
end of such four fiscal quarters, the average daily balance of such
Indebtedness during the

 

5

 

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

 

(b)           has
repaid, repurchased, defeased or otherwise discharged any Indebtedness since
the beginning of the period that is no longer outstanding on such date of
determination or if the transaction giving rise to the need to calculate the
Consolidated Coverage Ratio involves a discharge of Indebtedness (in each case
other than Indebtedness incurred under any revolving Credit Facility unless
such Indebtedness has been permanently repaid and the related commitment
terminated), Consolidated EBITDA and Consolidated Interest Expense for such
period will be calculated after giving effect on a pro forma
basis to such discharge of such Indebtedness, including with the proceeds of
such new Indebtedness, as if such discharge had occurred on the first day of such
period;

 

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

 

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

 

(b)           Consolidated
Interest Expense for such period will be reduced by an amount equal to the
Consolidated Interest Expense directly attributable to any Indebtedness of the
Company or any of its Restricted Subsidiaries repaid, repurchased, defeased or
otherwise discharged with respect to the Company and its continuing Restricted
Subsidiaries in connection with such Asset Sale or disposition for such period
(or, if the Capital Stock of any Restricted Subsidiary is sold, the
Consolidated Interest Expense for such period directly attributable to the
Indebtedness of such Restricted Subsidiary to the extent the Company and its
continuing Restricted Subsidiaries are no longer liable for such Indebtedness
after such sale);

 

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

 

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

 

6

 

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

 

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

 

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

 

(1)           Consolidated
Interest Expense;

 

(2)           Consolidated
Income Taxes;

 

(3)           consolidated
depreciation expense;

 

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

 

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

 

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

 

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

 

7

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

(3)           non-cash
interest expense;

 

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

 

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

 

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

 

8

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

9

 

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

 

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

 

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

 

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

 

(4)           any
extraordinary gain or loss; and

 

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

 

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

 

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

 

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

 

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

 

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

 

“Corporate Trust Office of the
Trustee” will be at the address of the Trustee specified in
Section 12.02 hereof or such other address as to which the Trustee may give
notice to the Company.

 

10

 

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

 

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

 

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

 

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

 

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

 

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

 

“Disqualified Stock”
means any Capital Stock that, by its terms (or by the terms of any security
into which it is convertible, or for which it is exchangeable, in each case at
the option of the holder of the Capital Stock), or upon the happening of any
event, matures or is mandatorily redeemable, pursuant to a sinking fund
obligation or otherwise, or redeemable at the option of the holder of the
Capital Stock, in whole or in part, on or prior to the date that is 91 days
after the date on which the Notes mature. Notwithstanding the preceding
sentence, any Capital Stock that would constitute Disqualified Stock solely
because the holders of the Capital Stock have the right to require the Company
to repurchase such Capital Stock upon the occurrence of a change of control or
an asset sale will not constitute Disqualified Stock if the terms of such Capital
Stock provide that the Company may not repurchase or redeem any such Capital
Stock pursuant to such provisions unless such repurchase or redemption complies
with Section 4.07 hereof. The amount of Disqualified Stock deemed to be
outstanding at any time for purposes of this Indenture will be the maximum
amount that the Company and its Restricted Subsidiaries may become obligated to
pay upon the maturity of, or pursuant to any mandatory redemption provisions
of, such Disqualified Stock, exclusive of accrued dividends.

 

11

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

“GAAP” means
generally accepted accounting principles set forth in the opinions and
pronouncements of the Accounting Principles Board of the American Institute of
Certified Public Accountants and statements and pronouncements of the Financial
Accounting Standards Board or in such other statements by such other entity as
have been approved by a significant segment of the accounting profession, which
are in effect on the date of this Indenture.

 

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

 

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

 

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

 

12

 

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

 

“Guarantors”
means each of:

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

13

 

(4)           indebtedness
representing Capital Lease Obligations;

 

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

 

(6)           net
obligations under any Hedging Obligations,

 

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

 

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

 

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

 

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

 

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

 

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

 

(b)           if less
than the amount determined pursuant to clause (a) immediately above, the actual
amount of such Indebtedness that is recourse to such Person or a Restricted
Subsidiary of such Person, if the Indebtedness is evidenced by a writing and is
for a determinable amount and the related interest expense shall be included in
Consolidated Interest Expense to the extent actually paid by the Company or its
Restricted Subsidiaries.

 

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

 

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

 

14

 

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

 

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

 

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

 

“Initial Notes”
means the first $500.0 million aggregate principal amount of Notes issued under
this Indenture on the date hereof.

 

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

 

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

 

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

 

“Legal Holiday”
means a Saturday, a Sunday or a day on which banking institutions in the City
of Chicago, Illinois (for so long as the Company maintains an office or agency
in such location, or alternatively, in the City of New York, if at such time
the Company maintains an office or agency in the Borough of Manhattan, the City
of New York) or at a place of payment are authorized by law, regulation or
executive order to remain closed. If a payment date is a Legal Holiday at a
place of payment, payment may be made at that place on the next succeeding day
that is not a Legal Holiday, and no interest shall accrue on such payment for
the intervening period.

 

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

 

“Lien” means,
with respect to any asset, any mortgage, lien, pledge, charge, security
interest or encumbrance of any kind in respect of such asset, whether or not
filed, recorded or otherwise perfected under applicable law, including any
conditional sale or other title retention agreement, any lease in the

 

15

 

nature thereof, any option or other agreement to sell
or give a security interest in and any filing of or agreement to give any
financing statement under the Uniform Commercial Code (or equivalent statutes)
of any jurisdiction.

 

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

 

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

 

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

 

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

 

“Non-Recourse Debt”
means Indebtedness:

 

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

 

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

 

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

 

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

 

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

 

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

 

16

 

unless the context otherwise requires, all references
to the Notes shall include the Initial Notes, the Exchange Notes and any
Additional Notes.

 

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

 

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

 

“Officers’ Certificate”
means a certificate signed on behalf of the Company by two Officers of the
Company, one of whom must be the principal executive officer, the principal
financial officer, the treasurer or the principal accounting officer of the
Company, that meets the requirements of Section 12.05 hereof.

 

“Opinion of Counsel”
means an opinion from legal counsel who is reasonably acceptable to the
Trustee, that meets the requirements of Section 12.05 hereof. The counsel may
be an employee of or counsel to the Company, any Subsidiary of the Company or
the Trustee.

 

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

 

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

 

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

 

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

 

“Permitted Investments”
means:

 

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

 

(2)           any
Investment in Cash Equivalents;

 

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

 

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

 

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

 

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

 

17

 

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

 

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

 

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

 

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

 

(7)           Investments
represented by Hedging Obligations;

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

18

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

“Permitted Liens”
means:

 

(1)           Liens on
assets of the Company or any of its Restricted Subsidiaries securing
Indebtedness and other Obligations under Credit Facilities that was incurred
pursuant to Section 4.09(b)(1) or Section 4.09(b)(15) hereof and/or securing
Hedging Obligations or Treasury Management Agreements contemplated thereby;

 

(2)           Liens in
favor of the Company or the Guarantors;

 

(3)           Liens on
property of a Person existing at the time such Person is merged with or into or
consolidated with the Company or any Subsidiary of the Company; provided that such Liens were in existence prior to the
contemplation of such merger or consolidation and do not extend to any assets
other than those of the Person merged into or consolidated with the Company or
the Subsidiary;

 

(4)           Liens on property
(including Capital Stock) existing at the time of acquisition of the property
by the Company or any Subsidiary of the Company; provided
that such Liens were in existence prior to, such acquisition, and not incurred
in contemplation of, such acquisition;

 

19

 

(5)           Liens to
secure the performance of statutory obligations, surety or appeal bonds,
performance bonds or other obligations of a like nature incurred in the
ordinary course of business;

 

(6)           Liens to
secure Indebtedness (including Capital Lease Obligations) permitted by Section
4.09(b)(4) hereof covering only the assets acquired with or financed by such
Indebtedness;

 

(7)           Liens existing
on the date of this Indenture;

 

(8)           Liens for
taxes, assessments or governmental charges or claims that are not yet
delinquent or that are being contested in good faith by appropriate proceedings
promptly instituted and diligently concluded; provided
that any reserve or other appropriate provision as is required in conformity
with GAAP has been made therefor;

 

(9)           Liens
imposed by law, such as carriers’, warehousemen’s, landlord’s and mechanics’
Liens, in each case, incurred in the ordinary course of business;

 

(10)         survey
exceptions, ground leases, encumbrances, easements or reservations of, or
rights of others for, licenses, rights-of-way, sewers, electric lines,
telegraph and telephone lines and other similar purposes, or zoning or building
codes or other restrictions as to the use of real property that were not incurred
in connection with Indebtedness and that do not in the aggregate materially
adversely affect the value of said properties or materially impair their use in
the operation of the business of such Person;

 

(11)         Liens
created for the benefit of (or to secure) the Notes (or the Note Guarantees);

 

(12)         Liens to
secure any Permitted Refinancing Indebtedness permitted to be incurred under
this Indenture; provided, however, that:

 

(a)           the new
Lien shall be limited to all or part of the same property and assets that
secured or, under the written agreements pursuant to which the original Lien
arose, could secure the original Lien (plus improvements and accessions to,
such property or proceeds or distributions thereof); and

 

(b)           the
Indebtedness secured by the new Lien is not increased to any amount greater
than the sum of (x) the outstanding principal amount, or, if greater, committed
amount, of the Permitted Refinancing Indebtedness and (y) an amount necessary
to pay any fees and expenses, including premiums, related to such renewal,
refunding, refinancing, replacement, defeasance or discharge;

 

(13)         Liens in
favor of the holders of the Medium Term Notes securing Indebtedness under the
Medium Term Notes permitted to be incurred pursuant to Section 4.09(b)(2) hereof;

 

(14)         pledges or
deposits by such Person under workmen’s compensation laws, unemployment
insurance laws or similar legislation, or good faith deposits in connection
with bids, tenders, contracts (other than for the payment of Indebtedness) or
leases to which such Person is a party, or deposits to secure public or
statutory obligations of such Person or deposits or cash or United States
government bonds to secure surety or appeal bonds to which such Person is a
party, or deposits as security for contested taxes or import or customs duties
or for the payment of rent, in each case incurred in the ordinary course of
business;

 

20

 

(15)         Liens
incurred under leases, licenses, subleases and sublicenses of assets (including,
without limitation, real property and intellectual property rights) which do
not materially interfere with the ordinary conduct of the business of the
Company or any of its Restricted Subsidiaries;

 

(16)         judgment
Liens not giving rise to a Default; provided that
such Lien is adequately bonded and any appropriate legal proceedings which may
have been duly initiated for the review of such judgment have not been finally
terminated or the period within which such proceedings may be initiated has not
expired;

 

(17)         Liens for
the purpose of securing the payment of all or a part of the purchase price of,
or Capital Lease Obligations, purchase money obligations or other payments
incurred to finance the acquisition, improvement or construction of, assets or
property acquired or constructed in the ordinary course of business; provided that:

 

(a)           the
aggregate principal amount of Indebtedness secured by such Liens is otherwise
permitted to be incurred under this Indenture and does not exceed the cost of
the assets or property so acquired or constructed; and

 

(b)           such Liens
are created within 180 days of construction or acquisition of such assets or
property and do not encumber any other assets or property of the Company or any
of its Restricted Subsidiaries other than such assets or property and assets
affixed or appurtenant thereto;

 

(18)         any interest
or title of a lessor under any Capital Lease Obligation or operating lease;

 

(19)         any Liens
securing Hedging Obligations related to Indebtedness so long as such Indebtedness
is, and is permitted under this Indenture to be, secured by a Lien on the same
property securing such Hedging Obligations;

 

(20)         Liens
arising solely by virtue of any statutory or common law provisions relating to
banker’s Liens, rights of set-off or similar rights and remedies as to deposit
accounts or other funds maintained with a depositary institution; provided that:

 

(a)           such
deposit account is not a dedicated cash collateral account and is not subject
to restrictions against access by the Company in excess of those set forth by
regulations promulgated by the Federal Reserve Board; and

 

(b)           such
deposit account is not intended by the Company or any Restricted Subsidiary to
provide collateral to the depository institution;

 

(21)         Liens of a collection
bank arising under the Uniform Commercial Code on items in the ordinary course
of collection;

 

(22)         Liens
arising from Uniform Commercial Code financing statement filings regarding
operating leases entered into by the Company and its Restricted Subsidiaries in
the ordinary course of business;

 

(23)         Liens
securing Indebtedness or other obligations of a Restricted Subsidiary owing to the
Company or a Restricted Subsidiary of the Company;

 

21

 

(24)         Liens on
Receivables and Related Assets of

 

(a) the Company and its Restricted Subsidiaries, or

 

(b) a Receivables Entity, in each case incurred in
connection with a Qualified Receivables Transaction; and

 

(25)         Liens
securing Indebtedness of the Company or any Subsidiary of the Company; provided that such Indebtedness does not exceed an amount
equal to 5.0% of Consolidated Net Tangible Assets at any one time outstanding.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

“Qualified Receivables
Transaction” means any transaction or series of transactions entered
into by the Company or any of its Subsidiaries pursuant to which the Company or
any of its Subsidiaries sells, conveys or otherwise transfers to (i) a
Receivables Entity (in the case of a transfer by the Company or any of its
Subsidiaries) and (ii) any other Person (in the case of a transfer by a
Receivables Entity), or grants a security interest in and/or pledge, any Receivables
(whether now existing or arising in the future) of the Company or any of its
Subsidiaries, and any Related Assets, which transfer, grant of security
interest or

 

22

 

pledge is funded in whole or in part, directly or
indirectly, by the incurrence or issuance by the transferee or any successor
transferee of Indebtedness, fractional undivided interests, or other securities
that are to receive payments from, or that represent interests in, the cash flow
derived from such Receivables and Related Assets or interests in Receivables
and Related Assets, it being understood that a Qualified Receivables
Transaction may involve:

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

(2)           neither
the Company nor any of its Subsidiaries has any material contract, agreement,
arrangement or understanding with such Person other than on terms no less
favorable to the Company or such Subsidiary than those that might be obtained
at the time from Persons

 

23

 

who are not
Affiliates of the Company, other than fees payable in the ordinary course of
business in connection with servicing accounts receivable; and

 

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

 

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

 

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

 

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

 

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

 

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

 

(1)           any
interests in such Receivables;

 

(2)           all
collateral securing such Receivables;

 

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

 

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

 

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

 

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

 

“Responsible Officer,”
when used with respect to the Trustee, means any officer within the Corporate
Trust Administration of the Trustee (or any successor group of the Trustee) or
any other officer of the Trustee customarily performing functions similar to
those performed by any of the above designated officers and also means, with
respect to a particular corporate trust matter, any other officer to whom such
matter is referred because of his knowledge of and familiarity with the
particular subject.

 

24

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

“SEC” means the
Securities and Exchange Commission.

 

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

 

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

 

“Senior Subordinated Notes”
means $200.0 million in aggregate principal amount of the Company’s 10.75%
Senior Subordinated Notes due 2016.

 

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

 

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

 

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

 

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

 

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

 

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

 

25

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

“Treasury Rate”
means, as of any redemption date, the yield to maturity as of such redemption
date of United States Treasury securities with a constant maturity (as compiled
and published in the most recent Federal Reserve Statistical Release H.15 (519)
that has become publicly available at least two business days prior to the
redemption date (or, if such Statistical Release is no longer published, any
publicly available source of similar market data)) most nearly equal to the
period from the redemption date to October 15, 2010; provided,
however, that if the period from the redemption date to October 15,
2010, is less than one year, the weekly average yield on actually traded United
States Treasury securities adjusted to a constant maturity of one year will be
used.

 

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

 

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

 

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

 

26

 

“Unrestricted Subsidiary”
means any:

 

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

 

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

 

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

 

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

 

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

 

(2)           Subsidiary
of an Unrestricted Subsidiary.

 

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

 

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

 

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

 

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

 

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

 

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

 

27

 

Section 1.02           Other Definitions.

 

	
   

  	
   

  	
  Defined in

  	
   

  
	
  Term

  	
   

  	
  Section

  	
   

  
	
  “Additional Credit Facility
  Obligor”

  	
   

  	
  4.17

  	
   

  
	
  “Affiliate Transaction”

  	
   

  	
  4.11

  	
   

  
	
  “Additional Credit Facility
  Obligor”

  	
   

  	
  4.17

  	
   

  
	
  “Affiliate Transaction”

  	
   

  	
  4.11

  	
   

  
	
  “Asset Sale Offer”

  	
   

  	
  3.09

  	
   

  
	
  “Authentication Order”

  	
   

  	
  2.02

  	
   

  
	
  “Change of Control Offer”

  	
   

  	
  4.15

  	
   

  
	
  “Change of Control Payment”

  	
   

  	
  4.15

  	
   

  
	
  “Change of Control Payment
  Date”

  	
   

  	
  4.15

  	
   

  
	
  “Covenant Defeasance”

  	
   

  	
  8.03

  	
   

  
	
  “DTC”

  	
   

  	
  2.03

  	
   

  
	
  “Event of Default”

  	
   

  	
  6.01

  	
   

  
	
  “Excess Proceeds”

  	
   

  	
  4.10

  	
   

  
	
  “incur”

  	
   

  	
  4.09

  	
   

  
	
  “Legal Defeasance”

  	
   

  	
  8.02

  	
   

  
	
  “Offer Amount”

  	
   

  	
  3.09

  	
   

  
	
  “Offer Period”

  	
   

  	
  3.09

  	
   

  
	
  “Paying Agent”

  	
   

  	
  2.03

  	
   

  
	
  “Permitted Debt”

  	
   

  	
  4.09

  	
   

  
	
  “Payment Default”

  	
   

  	
  6.01

  	
   

  
	
  “Purchase Date”

  	
   

  	
  3.09

  	
   

  
	
  “Registrar”

  	
   

  	
  2.03

  	
   

  
	
  “Restricted Payments”

  	
   

  	
  4.07

  	
   

  

 

Section 1.03           Incorporation by Reference of Trust Indenture Act.

 

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

 

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

 

“indenture securities” means the
Notes;

 

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

 

“indenture to be qualified” means
this Indenture;

 

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

 

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

 

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

 

Section 1.04           Rules of Construction.

 

Unless the context otherwise requires:

 

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

 

28

 

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

 

(3)           “or” is not exclusive;

 

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

 

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

 

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

 

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

 

ARTICLE 2

THE NOTES

 

Section 2.01           Form and Dating.

 

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

 

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

 

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

 

Section 2.02           Execution and Authentication.

 

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

 

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

 

29

 

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

 

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

 

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

 

Section 2.03           Registrar and Paying Agent.

 

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

 

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

 

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

 

Section 2.04           Paying Agent to Hold Money in Trust.

 

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

 

Section 2.05           Holder Lists.

 

The Trustee will preserve in as current a form as is
reasonably practicable the most recent list available to it of the names and
addresses of all Holders and shall otherwise comply with TIA § 312(a). If

 

30

 

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

 

Section 2.06           Transfer and Exchange.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

31

 

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

 

(A)          both:

 

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

 

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

 

(B)           both:

 

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

 

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

 

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

 

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

 

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

 

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

 

(C)           if the transferee will take delivery in the form of a
beneficial interest in the IAI Global Note, then the transferor must deliver a
certificate in the form of Exhibit B

 

32

 

hereto, including the certifications, certificates and
Opinion of Counsel required by item (3) thereof, if applicable.

 

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

 

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

 

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

 

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

 

(D)          the Registrar receives the following:

 

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

 

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

 

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

 

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

 

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

 

33

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

34

 

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

 

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

 

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

 

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

 

(D)          the Registrar receives the following:

 

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

 

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

 

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

 

(3)           Beneficial Interests in Unrestricted Global Notes
to Unrestricted Definitive Notes. If any holder of a beneficial interest in an
Unrestricted Global Note proposes to exchange such beneficial interest for a
Definitive Note or to transfer such beneficial interest to a Person who takes
delivery thereof in the form of a Definitive Note, then, upon satisfaction of
the conditions set forth in Section 2.06(b)(2) hereof, the Trustee will cause
the aggregate principal amount of the applicable Global Note to be reduced
accordingly pursuant to Section 2.06(h) hereof, and the Company will execute
and the Trustee will authenticate and deliver to the Person designated in the
instructions a Definitive Note in the appropriate principal amount. Any
Definitive Note issued in exchange for a beneficial interest pursuant to this
Section 2.06(c)(3) will be registered in such name or names and in such
authorized denomination or denominations as the holder of such beneficial
interest requests through instructions to the Registrar from or through the
Depositary and the Participant or Indirect Participant. The Trustee will
deliver such Definitive Notes to the Persons in whose names such Notes are so
registered. Any Definitive

 

35

 

Note issued in exchange for a beneficial interest pursuant to
this Section 2.06(c)(3) will not bear the Private Placement Legend.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

(2)           Restricted Definitive Notes to Beneficial Interests
in Unrestricted Global Notes. A Holder of a Restricted Definitive Note may exchange
such Note for a beneficial interest in an

 

36

 

Unrestricted Global Note or transfer such Restricted
Definitive Note to a Person who takes delivery thereof in the form of a
beneficial interest in an Unrestricted Global Note only if:

 

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

 

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

 

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

 

(D)          the Registrar receives the following:

 

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

 

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

 

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

 

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

 

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

 

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

 

37

 

Global Notes in an aggregate principal amount equal to
the principal amount of Definitive Notes so transferred.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

(D)          the Registrar receives the following:

 

38

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

(1)           Private Placement Legend.

 

39

 

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

 

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

 

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

 

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

 

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

 

40

 

TRUSTEE FOR CANCELLATION PURSUANT TO SECTION 2.11 OF
THE INDENTURE AND (4) THIS GLOBAL NOTE MAY BE TRANSFERRED TO A SUCCESSOR
DEPOSITARY WITH THE PRIOR WRITTEN CONSENT OF GEORGIA GULF CORPORATION.

 

UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART
FOR NOTES IN DEFINITIVE FORM, THIS NOTE MAY NOT BE TRANSFERRED EXCEPT AS A
WHOLE BY THE DEPOSITARY TO A NOMINEE OF THE DEPOSITARY OR BY A NOMINEE OF THE
DEPOSITARY TO THE DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY OR BY THE
DEPOSITARY OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH
SUCCESSOR DEPOSITARY. UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED
REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY (55 WATER STREET, NEW YORK, NEW
YORK) (“DTC”), TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER,
EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF
CEDE & CO. OR SUCH OTHER NAME AS MAY BE REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR SUCH OTHER
ENTITY AS MAY BE REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY
TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON
IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN
INTEREST HEREIN.”

 

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

 

(i)            General Provisions Relating to
Transfers and Exchanges.

 

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

 

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

 

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

 

41

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

Section 2.07           Replacement Notes.

 

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

 

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

 

Section 2.08           Outstanding Notes.

 

The Notes outstanding at any time are all the Notes
authenticated by the Trustee except for those canceled by it, those delivered
to it for cancellation, those reductions in the interest in a Global Note
effected by the Trustee in accordance with the provisions hereof, and those
described in this Section 2.08 as not outstanding. Except as set forth in
Section 2.09 hereof, a Note does not cease to be outstanding

 

42

 

because the Company or an
Affiliate of the Company holds the Note; however, Notes held by the Company or
a Subsidiary of the Company shall not be deemed to be outstanding for purposes
of Section 3.07(a) hereof.

 

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

 

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

 

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

 

Section 2.09           Treasury Notes.

 

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

 

Section 2.10           Temporary Notes.

 

Until certificates representing Notes are ready for
delivery, the Company may prepare and the Trustee, upon receipt of an Authentication
Order, will authenticate temporary Notes. Temporary Notes will be substantially
in the form of certificated Notes but may have variations that the Company
considers appropriate for temporary Notes and as may be reasonably acceptable
to the Trustee. Without unreasonable delay, the Company will prepare and the
Trustee will authenticate definitive Notes in exchange for temporary Notes.

 

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

 

Section 2.11           Cancellation.

 

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

 

Section 2.12           Defaulted Interest.

 

If the Company defaults in a payment of interest on
the Notes, it will pay the defaulted interest in any lawful manner plus, to the
extent lawful, interest payable on the defaulted interest, to the Persons who
are Holders on a subsequent special record date, in each case at the rate
provided in the Notes and in Section 4.01 hereof. The Company will notify the
Trustee in writing of the amount of defaulted interest proposed to be paid on
each Note and the date of the proposed payment. The Company will fix or cause

 

43

 

to be fixed each such
special record date and payment date; provided that
no such special record date may be less than 10 days prior to the related
payment date for such defaulted interest. At least 15 days before the special
record date, the Company (or, upon the written request of the Company, the
Trustee in the name and at the expense of the Company) will mail or cause to be
mailed to Holders a notice that states the special record date, the related
payment date and the amount of such interest to be paid.

 

ARTICLE 3

REDEMPTION AND PREPAYMENT

 

Section 3.01           Notices to Trustee.

 

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

 

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

 

(2)           the redemption date;

 

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

 

(4)           the redemption price.

 

Section 3.02           Selection of Notes to Be Redeemed or Purchased.

 

If less than all of the Notes are to be redeemed or
purchased in an offer to purchase at any time, the Trustee will select Notes
for redemption or purchase on a pro rata
basis (or, in the case of Notes issued in global form, based on a method that
most nearly approximates a pro rata
selection as the Trustee deems fair and appropriate) unless otherwise required
by law or applicable stock exchange requirements.

 

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

 

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

 

Section 3.03           Notice of Redemption.

 

Subject to the provisions of Section 3.09 hereof, at
least 30 days but not more than 60 days before a redemption date, the Company
will mail or cause to be mailed, by first class mail, a notice of redemption to
each Holder whose Notes are to be redeemed at its registered address, except
that redemption notices may be mailed more than 60 days prior to a redemption
date if the notice is issued in

 

44

 

connection with a
defeasance of the Notes or a satisfaction and discharge of this Indenture
pursuant to Articles 8 or 11 hereof.

 

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

 

(1)           the redemption date;

 

(2)           the redemption price;

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

Section 3.04           Effect of Notice of Redemption.

 

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

 

Section 3.05           Deposit of Redemption or Purchase Price.

 

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

 

If the Company complies with the provisions of the
preceding paragraph, on and after the redemption or purchase date, interest
will cease to accrue on the Notes or the portions of Notes called for

 

45

 

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

 

Section 3.06           Notes Redeemed or Purchased in Part.

 

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

 

Section 3.07           Optional Redemption.

 

(a)           At any time prior to October 15,
2009, the Company may on any one or more occasions redeem up to 35% of the
aggregate principal amount of Notes issued under this Indenture at a redemption
price of 109.5% of the principal amount, plus accrued and unpaid interest and
Additional Interest, if any, to the redemption date, with the net cash proceeds
of one or more Equity Offerings; provided that:

 

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

 

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

 

(b)           At any time prior to October 15,
2010, the Company may also redeem all or a part of the Notes, upon not less
than 30 nor more than 60 days’ prior notice, at a redemption price equal to
100% of the principal amount of the Notes redeemed plus the Applicable Premium
as of, and accrued and unpaid interest and Additional Interest, if any, to the
date of redemption, subject to the rights of holders of Notes on the relevant
record date to receive interest due on the relevant interest payment date.

 

(c)           Except pursuant to the preceding two
paragraphs, the Notes will not be redeemable at the Company’s option prior to October
15, 2010.

 

(d)           On or after October 15, 2010, the
Company may redeem all or a part of the Notes, upon not less than 30 nor more
than 60 days’ notice, at the redemption prices (expressed as percentages of
principal amount) set forth below plus accrued and unpaid interest and
Additional Interest, if any, on the Notes redeemed to the applicable redemption
date, if redeemed during the twelve-month period beginning on October 15 of the
years indicated below, subject to the rights of Holders on the relevant record
date to receive interest on the relevant interest payment date:

 

	
  Year

  	
   

  	
  Percentage

  	
   

  
	
  2010

  	
   

  	
  104.750

  	
  %

  
	
  2011

  	
   

  	
  102.375

  	
  %

  
	
  2012 and thereafter

  	
   

  	
  100.000

  	
  %

  

 

46

 

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

 

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

 

Section 3.08           Mandatory Redemption.

 

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

 

Section 3.09           Offer to Purchase by Application of Excess Proceeds.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

47

 

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

 

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

 

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

 

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

 

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

 

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

 

ARTICLE 4

COVENANTS

 

Section 4.01           Payment of Notes.

 

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

 

48

 

sufficient to pay all
principal, premium, if any, and interest then due. The Company will pay all Additional
Interest, if any, in the same manner on the dates and in the amounts set forth
in the Registration Rights Agreement.

 

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

 

Section 4.02           Maintenance of Office or Agency.

 

The Company will
maintain in the City of
Chicago, Illinois (or if not such location, in the Borough of Manhattan, the
City of New York), an office or agency (which may be an office of the
Trustee or an affiliate of the Trustee, Registrar or co-registrar) where Notes
may be surrendered for registration of transfer or for exchange and where
notices and demands to or upon the Company in respect of the Notes and this
Indenture may be served. The Company will give prompt written notice to the
Trustee of the location, and any change in the location, of such office or
agency. If at any time the Company fails to maintain any such required office
or agency or fails to furnish the Trustee with the address thereof, such
presentations, surrenders, notices and demands may be made or served at the
Corporate Trust Office of the Trustee.

 

The Company may also from time to time designate one
or more other offices or agencies where the Notes may be presented or
surrendered for any or all such purposes and may from time to time rescind such
designations; provided, however, that no such
designation or rescission will in any manner relieve the Company of its
obligation to maintain an office or agency in the City of Chicago, Illinois (or if not
such location, in the Borough of Manhattan, the City of New York) for
such purposes. The Company will give prompt written notice to the Trustee of
any such designation or rescission and of any change in the location of any
such other office or agency.

 

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

 

Section 4.03           Reports.

 

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

 

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

 

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

 

In addition, the Company will file a copy of each of
the reports referred to in clauses (1) and (2) above with the SEC for public
availability within the time periods specified in the rules and regulations

 

49

 

applicable to such
reports (unless the SEC will not accept such a filing) and will post the
reports on its website within those time periods. The Company will at all times
comply with TIA § 314(a).

 

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

 

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

 

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

 

(c)           For so long as any Notes remain
outstanding, if at any time they are not required to file with the SEC the
reports required by paragraphs (a) and (b) of this Section 4.03, the Company
and the Guarantors will furnish to the Holders and to securities analysts and
prospective investors, upon their request, the information required to be
delivered pursuant to Rule 144A(d)(4) under the Securities Act.

 

Section 4.04           Compliance Certificate.

 

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

 

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

 

50

 

Section 4.05           Taxes.

 

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

 

Section 4.06           Stay, Extension and Usury Laws.

 

The Company and each of the Guarantors covenants (to
the extent that it may lawfully do so) that it will not at any time insist
upon, plead, or in any manner whatsoever claim or take the benefit or advantage
of, any stay, extension or usury law wherever enacted, now or at any time
hereafter in force, that may affect the covenants or the performance of this
Indenture; and the Company and each of the Guarantors (to the extent that it
may lawfully do so) hereby expressly waives all benefit or advantage of any
such law, and covenants that it will not, by resort to any such law, hinder,
delay or impede the execution of any power herein granted to the Trustee, but
will suffer and permit the execution of every such power as though no such law
has been enacted.

 

Section 4.07           Restricted Payments.

 

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

 

(1)           declare or pay any dividend or make any other payment
or distribution on account of the Company’s or any of its Restricted
Subsidiaries’ Equity Interests (including, without limitation, any payment in
connection with any merger or consolidation involving the Company or any of its
Restricted Subsidiaries) or to the direct or indirect holders of the Company’s or
any of its Restricted Subsidiaries’ Equity Interests in their capacity as such
(other than dividends or distributions payable in Equity Interests (other than
Disqualified Stock) of the Company and other than dividends or distributions
payable to the Company or a Restricted Subsidiary of the Company);

 

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

 

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

 

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

 

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

 

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

 

51

 

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

 

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

 

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

 

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

 

(C)           without duplication, the amount by which Indebtedness
of the Company or its Restricted Subsidiaries is reduced on the Company’s
balance sheet upon the conversion or exchange (other than by a Subsidiary of
the Company) subsequent to the date of this Indenture of any Indebtedness of
the Company or its Restricted Subsidiaries into or for Equity Interests (other
than Disqualified Stock) of the Company (less the amount of any cash, or the
fair market value of any other property, distributed by the Company upon such
conversion or exchange); plus

 

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

 

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

 

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

 

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

 

52

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

53

 

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

 

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

 

(12)         so long as no Default has occurred and is continuing
or would be caused thereby, the purchase, repurchase, redemption, defeasance or
other acquisition or retirement of Disqualified Stock of the Company or any of
its Restricted Subsidiaries made by exchange for or out of the proceeds of the
substantially concurrent sale of Disqualified Stock of the Company or such
Restricted Subsidiary, that in each case is permitted to be incurred pursuant
to Section 4.09(b)(5) hereof;

 

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

 

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

 

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

 

54

 

Section 4.08           Dividend and Other Payment Restrictions Affecting
Subsidiaries.

 

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

 

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

 

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

 

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

 

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

 

(1)           any encumbrance or restriction pursuant to an
agreement as in effect at the date of this Indenture, including agreements
governing Existing Indebtedness and Credit Facilities as in effect on the date
of this Indenture and any amendments, restatements, modifications, renewals,
supplements, refundings, replacements or refinancings of those agreements; provided that the amendments, restatements, modifications,
renewals, supplements, refundings, replacements or refinancings are not
materially more restrictive, taken as a whole, with respect to such dividend
and other payment restrictions than those contained in those agreements on the
date of this Indenture;

 

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

 

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

 

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

 

55

 

contained in any such instrument on the date of acquisition; provided, further, that, in the case of Indebtedness, such
Indebtedness was permitted by the terms of this Indenture to be incurred;

 

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

 

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

 

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

 

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

 

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

 

(10)         provisions limiting the disposition or distribution of
assets or property in joint venture agreements, asset sale agreements,
sale-leaseback agreements, stock sale agreements and other similar agreements
entered into with the approval of the Company’s Board of Directors, which
limitation is applicable only to the assets or property that are the subject of
such agreements;

 

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

 

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

 

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

 

56

 

Section 4.09           Incurrence of Indebtedness and Issuance of Preferred
Stock.

 

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

 

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

 

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

 

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

 

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

 

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

 

57

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

58

 

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

 

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

 

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

 

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

 

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

 

The Company will not incur, and will not permit any
Guarantor to incur, any Indebtedness (including Permitted Debt) that is
contractually subordinated in right of payment to any other Indebtedness of the
Company or such Guarantor unless such Indebtedness is also contractually
subordinated in right of payment to the Notes and the applicable Note Guarantee
on substantially identical terms; provided, however,
that no Indebtedness shall be deemed to be contractually subordinated in right
of payment to any other Indebtedness of the Company solely by virtue of being
unsecured or by virtue of being secured on a first or junior Lien basis.

 

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

 

59

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

Section 4.10           Asset Sales.

 

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

 

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

 

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

 

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

 

60

 

novation agreement that releases the Company or such Restricted
Subsidiary from further liability;

 

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

 

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

 

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

 

(1)           to repay, prepay or purchase Indebtedness and other
Obligations (other than Disqualified Stock, Indebtedness of the Company or any
Restricted Subsidiary that is contractually subordinated to the Notes or any
Note Guarantee or any intercompany Indebtedness between or among the Company
and any of its Restricted Subsidiaries) and, if the Indebtedness repaid is revolving
credit Indebtedness under a Credit Facility, to correspondingly reduce
commitments with respect thereto; provided, that
the Company or such Restricted Subsidiary shall not be required to reduce the
related commitments to an aggregate principal amount less than $400.0 million;

 

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

 

(3)           to make a capital expenditure; or

 

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

 

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

 

Any Net Proceeds from Asset Sales that are not applied
or invested as provided in the second paragraph of this Section 4.10 will
constitute “Excess Proceeds.”  When the aggregate amount of Excess Proceeds
exceeds $50.0 million, within five days thereof, the Company will make an Asset
Sale Offer to all Holders of Notes and all holders of other Indebtedness that
is pari passu with the Notes containing
provisions similar to those set forth in this Indenture with respect to offers
to purchase or redeem with the proceeds of sales of assets in accordance with
Section 3.09 hereof to purchase the maximum principal amount of Notes and such
other pari passu Indebtedness that may be
purchased out of the Excess Proceeds. The offer price in any Asset Sale Offer
will be equal to 100% of the principal amount plus accrued and unpaid interest and
Additional Interest, if any, to the date of purchase and will be payable in
cash. If any Excess Proceeds remain after consummation of an Asset Sale Offer,
the Company may use those Excess Proceeds for any purpose not otherwise
prohibited by this Indenture. If the aggregate principal amount of Notes and
other pari passu Indebtedness tendered into
such Asset Sale Offer exceeds the amount of Excess Proceeds, the Trustee shall
select the Notes and such other pari passu
Indebtedness to be purchased on a pro rata
basis. Upon completion of each Asset Sale Offer, the amount of Excess Proceeds
will be reset at zero.

 

61

 

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

 

Section 4.11           Transactions with Affiliates.

 

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

 

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

 

(2)           the Company delivers to the Trustee:

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

62

 

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

 

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

 

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

 

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

 

Section 4.12           Liens.

 

The Company will not, and will not permit any of its
Restricted Subsidiaries to, directly or indirectly, create, incur, assume or
suffer to exist any Lien of any kind (other than Permitted Liens) on any of
their properties or assets, now owned or hereafter acquired, unless all
payments due under this Indenture and the Notes are secured on an equal and
ratable basis with the obligations so secured until such time as such
obligations are no longer secured by a Lien.

 

Section 4.13           Business Activities.

 

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

 

Section 4.14           Corporate Existence.

 

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

 

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

 

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

 

Section 4.15           Offer to Repurchase Upon Change of Control.

 

(a)           Upon the occurrence of a Change of
Control, the Company will make an offer (a “Change of Control Offer”)
to each Holder to repurchase all or any part (equal to $2,000 or an integral
multiple of $1,000 in excess thereof) of that Holder’s Notes at a purchase
price in cash equal to 101% of

 

63

 

the aggregate principal amount of
Notes repurchased plus accrued and unpaid interest and Additional Interest, if
any, on the Notes repurchased to the date of purchase, subject to the rights of
Holders on the relevant record date to receive interest due on the relevant
interest payment date (the “Change of Control Payment”).
Within ten days following any Change of Control, the Company will mail a notice
to each Holder describing the transaction or transactions that constitute the
Change of Control and stating:

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

64

 

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

 

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

 

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

 

Section 4.16           Payments for Consent.

 

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

 

Section 4.17           Additional Note Guarantees.

 

If, on or after the date of this Indenture:

 

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

 

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

 

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

 

65

 

Section 4.18           Designation of Restricted and Unrestricted
Subsidiaries.

 

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

 

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

 

Section 4.19           Changes in Covenants When Notes Rated Investment Grade.

 

If on
any date following the date of this Indenture:

 

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

 

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

 

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

 

(1)           Section
4.10 hereof;

 

(2)           Section
4.07 hereof;

 

(3)           Section
4.09 hereof;

 

(4)           Section
4.08 hereof;

 

66

 

(5)           Section
4.18 hereof;

 

(6)           Section
4.11 hereof; and

 

(7)           Section
5.01(4) hereof.

 

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

 

ARTICLE 5

SUCCESSORS

 

Section 5.01           Merger, Consolidation, or Sale of Assets.

 

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

 

(1)           either:

 

(A)          the Company is the surviving corporation; or

 

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

 

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

 

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

 

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

 

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

 

This
Section 5.01 will not apply to:

 

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

 

67

 

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

 

Section 5.02           Successor Corporation Substituted.

 

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

 

ARTICLE 6

DEFAULTS AND REMEDIES

 

Section 6.01           Events of Default.

 

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

 

(1)           default for 30 days in the payment when due of interest
on, or Additional Interest, if any, with respect to, the Notes;

 

(2)           default in the payment when due (at maturity, upon
redemption or otherwise) of the principal of, or premium, if any, on, the
Notes;

 

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

 

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

 

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

 

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

 

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

 

68

 

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

 

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

 

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

 

(a)           commences a voluntary case,

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

69

 

Section 6.02           Acceleration.

 

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

 

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

 

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

 

Section 6.03           Other Remedies.

 

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

 

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

 

Section 6.04           Waiver of Past Defaults.

 

Holders of not less than a majority in aggregate
principal amount of the then outstanding Notes by notice to the Trustee may on
behalf of the Holders of all of the Notes waive an existing Default or Event of
Default and its consequences hereunder, except a continuing Default or Event of
Default in the payment of the principal of, premium and Additional Interest, if
any, or interest on, the Notes (including in connection with an offer to
purchase); provided, however, that the Holders of a
majority in aggregate principal amount of the then outstanding Notes may
rescind an acceleration and its consequences, including any related payment
default that resulted from such acceleration. Upon any such waiver, such
Default shall cease to exist, and any Event of Default arising therefrom shall
be deemed to have been cured for every purpose of this Indenture; but no such
waiver shall extend to any subsequent or other Default or impair any right
consequent thereon.

 

Section 6.05           Control by Majority.

 

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

 

70

 

Section 6.06           Limitation on Suits.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

Section 6.07           Rights of Holders of Notes to Receive Payment.

 

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

 

Section 6.08           Collection Suit by Trustee.

 

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

 

Section 6.09           Trustee May File Proofs of Claim.

 

The Trustee is authorized to file such proofs of claim
and other papers or documents as may be necessary or advisable in order to have
the claims of the Trustee (including any claim for the reasonable compensation,
expenses, disbursements and advances of the Trustee, its agents and counsel)
and the Holders of the Notes allowed in any judicial proceedings relative to
the Company (or any other obligor upon the Notes), its creditors or its
property and shall be entitled and empowered to collect, receive and distribute
any money or other property payable or deliverable on any such claims and any
custodian in any such judicial proceeding is hereby authorized by each Holder
to make such payments to the Trustee, and in the event that the Trustee shall
consent to the making of such payments directly to the Holders, to pay to the
Trustee any amount due to it for the reasonable compensation, expenses,
disbursements and advances of the Trustee, its agents and counsel, and any
other amounts due the Trustee under Section 7.07

 

71

 

hereof. To the extent
that the payment of any such compensation, expenses, disbursements and advances
of the Trustee, its agents and counsel, and any other amounts due the Trustee
under Section 7.07 hereof out of the estate in any such proceeding, shall be
denied for any reason, payment of the same shall be secured by a Lien on, and
shall be paid out of, any and all distributions, dividends, money, securities
and other properties that the Holders may be entitled to receive in such
proceeding whether in liquidation or under any plan of reorganization or
arrangement or otherwise. Nothing herein contained shall be deemed to authorize
the Trustee to authorize or consent to or accept or adopt on behalf of any
Holder any plan of reorganization, arrangement, adjustment or composition
affecting the Notes or the rights of any Holder, or to authorize the Trustee to
vote in respect of the claim of any Holder in any such proceeding.

 

Section 6.10           Priorities.

 

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

 

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

 

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

 

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

 

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

 

Section 6.11           Undertaking for Costs.

 

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

 

ARTICLE 7

TRUSTEE

 

Section 7.01           Duties of Trustee.

 

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

 

72

 

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

 

(1)           the duties of the Trustee will be determined solely by
the express provisions of this Indenture and the Trustee need perform only
those duties that are specifically set forth in this Indenture and no others,
and no implied covenants or obligations shall be read into this Indenture
against the Trustee; and

 

(2)           in the absence of bad faith on its part, the Trustee
may conclusively rely, as to the truth of the statements and the correctness of
the opinions expressed therein, upon certificates or opinions furnished to the
Trustee and conforming to the requirements of this Indenture. However, the
Trustee will examine the certificates and opinions to determine whether or not
they conform to the requirements of this Indenture.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

Section 7.02           Rights of Trustee.

 

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

 

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

 

73

 

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

 

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

 

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

 

(f)            The Trustee will be under no
obligation to exercise any of the rights or powers vested in it by this
Indenture at the request or direction of any of the Holders unless such Holders
have offered to the Trustee reasonable indemnity or security against the
losses, liabilities and expenses that might be incurred by it in compliance
with such request or direction.

 

Section 7.03           Individual Rights of Trustee.

 

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

 

Section 7.04           Trustee’s Disclaimer.

 

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

 

Section 7.05           Notice of Defaults.

 

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

 

Section 7.06           Reports by Trustee to Holders of the Notes.

 

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

 

74

 

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

 

Section 7.07           Compensation and Indemnity.

 

(a)           The Company will pay to the Trustee
from time to time reasonable compensation for its acceptance of this Indenture
and services hereunder as the Company and the Trustee may agree upon from time
to time in writing. The Trustee’s compensation will not be limited by any law
on compensation of a trustee of an express trust. The Company will reimburse
the Trustee promptly upon request for all reasonable out-of-pocket disbursements,
advances and expenses incurred or made by it in addition to the compensation
for its services. Such expenses will include the reasonable compensation,
disbursements and out-of-pocket expenses of the Trustee’s agents and counsel.

 

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

 

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

 

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

 

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

 

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

 

75

 

Section 7.08           Replacement of Trustee.

 

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

 

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

 

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

 

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

 

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

 

(4)           the Trustee becomes incapable of acting hereunder.

 

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

 

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

 

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

 

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

 

Section 7.09           Successor Trustee by Merger, etc.

 

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

 

76

 

Section 7.10           Eligibility; Disqualification.

 

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

 

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

 

Section 7.11           Preferential Collection of Claims Against Company.

 

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

 

ARTICLE 8

LEGAL DEFEASANCE AND COVENANT DEFEASANCE

 

Section 8.01           Option to Effect Legal Defeasance or Covenant
Defeasance.

 

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

 

Section 8.02           Legal Defeasance and Discharge.

 

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

 

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

 

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

 

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

 

77

 

(4)           this Article 8.

 

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

 

Section 8.03           Covenant Defeasance.

 

Upon the Company’s exercise under Section 8.01 hereof
of the option applicable to this Section 8.03, the Company and each of the
Guarantors will, subject to the satisfaction of the conditions set forth in
Section 8.04 hereof, be released from their obligations under the covenants
contained in Sections 4.03, 4.07, 4.08, 4.09, 4.10, 4.11, 4.12, 4.13, 4.15,
4.16, 4.17, 4.18 hereof and clause (4) of Section 5.01 hereof with respect to
the outstanding Notes on and after the date the conditions set forth in Section
8.04 hereof are satisfied (hereinafter, “Covenant Defeasance”),
and the Notes will thereafter be deemed not “outstanding” for the purposes of
any direction, waiver, consent or declaration or act of Holders (and the
consequences of any thereof) in connection with such covenants, but will
continue to be deemed “outstanding” for all other purposes hereunder (it being
understood that such Notes will not be deemed outstanding for accounting
purposes). For this purpose, Covenant Defeasance means that, with respect to
the outstanding Notes and Note Guarantees, the Company and the Guarantors may
omit to comply with and will have no liability in respect of any term,
condition or limitation set forth in any such covenant, whether directly or
indirectly, by reason of any reference elsewhere herein to any such covenant or
by reason of any reference in any such covenant to any other provision herein
or in any other document and such omission to comply will not constitute a
Default under Section 6.01 hereof, but, except as specified above, the
remainder of this Indenture and such Notes and Note Guarantees will be
unaffected thereby. In addition, upon the Company’s exercise under Section 8.01
hereof of the option applicable to this Section 8.03, subject to the
satisfaction of the conditions set forth in Section 8.04 hereof, Sections 6.01(3)
through 6.01(5), inclusive, hereof will not constitute Events of Default.

 

Section 8.04           Conditions to Legal or Covenant Defeasance.

 

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

 

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

 

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

 

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

 

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

 

78

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

79

 

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

 

Section 8.06           Repayment to Company.

 

Any money deposited with the Trustee or any Paying
Agent, or then held by the Company, in trust for the payment of the principal
of, premium or Additional Interest, if any, or interest on, any Note and
remaining unclaimed for two years after such principal, premium or Additional
Interest, if any, or interest has become due and payable shall be paid to the
Company on its request or (if then held by the Company) will be discharged from
such trust; and the Holder of such Note will thereafter be permitted to look
only to the Company for payment thereof, and all liability of the Trustee or
such Paying Agent with respect to such trust money, and all liability of the
Company as trustee thereof, will thereupon cease; provided,
however, that the Trustee or such Paying Agent, before being
required to make any such repayment, may at the expense of the Company cause to
be published once, in the New York Times and The Wall Street Journal (national
edition), notice that such money remains unclaimed and that, after a date
specified therein, which will not be less than 30 days from the date of such
notification or publication, any unclaimed balance of such money then remaining
will be repaid to the Company.

 

Section 8.07           Reinstatement.

 

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

 

ARTICLE 9

AMENDMENT, SUPPLEMENT AND WAIVER

 

Section 9.01           Without Consent of Holders of Notes.

 

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

 

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

 

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

 

80

 

(3)           to provide for the assumption of the Company’s or a
Guarantor’s obligations to the Holders of the Notes and Note Guarantees by a
successor to the Company or such Guarantor pursuant to Article 5 or Article 10
hereof;

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

Section 9.02           With Consent of Holders of Notes.

 

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

 

81

 

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

 

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

 

After an amendment, supplement or waiver under this
Section 9.02 becomes effective, the Company will mail to the Holders of Notes
affected thereby a notice briefly describing the amendment, supplement or
waiver. Any failure of the Company to mail such notice, or any defect therein,
will not, however, in any way impair or affect the validity of any such amended
or supplemental indenture or waiver. Subject to Sections 6.04 and 6.07 hereof,
the Holders of a majority in aggregate principal amount of the Notes then
outstanding voting as a single class may waive compliance in a particular
instance by the Company with any provision of this Indenture or the Notes or
the Note Guarantees. However, without the consent of each Holder affected, an
amendment, supplement or waiver under this Section 9.02 may not (with respect
to any Notes held by a non-consenting Holder):

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

82

 

Section 9.03           Compliance with Trust Indenture Act.

 

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

 

Section 9.04           Revocation and Effect of Consents.

 

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

 

Section 9.05           Notation on or Exchange of Notes.

 

The Trustee may place an appropriate notation about an
amendment, supplement or waiver on any Note thereafter authenticated. The
Company in exchange for all Notes may issue and the Trustee shall, upon receipt
of an Authentication Order, authenticate new Notes that reflect the amendment,
supplement or waiver.

 

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

 

Section 9.06           Trustee to Sign Amendments, etc.

 

The Trustee will sign any amended or supplemental
indenture authorized pursuant to this Article 9 if the amendment or supplement
does not adversely affect the rights, duties, liabilities or immunities of the
Trustee. The Company may not sign an amended or supplemental indenture until
the Board of Directors of the Company approves it. In executing any amended or
supplemental indenture, the Trustee will be entitled to receive and (subject to
Section 7.01 hereof) will be fully protected in relying upon, in addition to
the documents required by Section 12.04 hereof, an Officers’ Certificate and an
Opinion of Counsel stating that the execution of such amended or supplemental
indenture is authorized or permitted by this Indenture.

 

ARTICLE 10

NOTE GUARANTEES

 

Section
10.01.      Guarantee.

 

(a)           Subject to this Article 10, each of
the Guarantors hereby, jointly and severally, unconditionally guarantees to
each Holder of a Note authenticated and delivered by the Trustee and to the
Trustee and its successors and assigns, irrespective of the validity and
enforceability of this Indenture, the Notes or the obligations of the Company hereunder
or thereunder, that:

 

(1)           the principal of, premium and Additional Interest, if
any, and interest on, the Notes will be promptly paid in full when due, whether
at maturity, by acceleration, redemption or otherwise, and interest on the
overdue principal of and interest on the Notes, if any, if lawful, and all
other obligations of the Company to the Holders or the Trustee hereunder or
thereunder will be promptly paid in full or performed, all in accordance with
the terms hereof and thereof; and

 

83

 

(2)           in case of any extension of time of payment or renewal
of any Notes or any of such other obligations, that same will be promptly paid
in full when due or performed in accordance with the terms of the extension or
renewal, whether at stated maturity, by acceleration or otherwise.

 

Failing payment when due of any amount so guaranteed
or any performance so guaranteed for whatever reason, the Guarantors will be
jointly and severally obligated to pay the same immediately. Each Guarantor
agrees that this is a guarantee of payment and not a guarantee of collection.

 

(b)           The Guarantors hereby agree that
their obligations hereunder are unconditional, irrespective of the validity,
regularity or enforceability of the Notes or this Indenture, the absence of any
action to enforce the same, any waiver or consent by any Holder of the Notes
with respect to any provisions hereof or thereof, the recovery of any judgment
against the Company, any action to enforce the same or any other circumstance
which might otherwise constitute a legal or equitable discharge or defense of a
guarantor except by complete performance of the obligations contained in the
Notes and this Indenture. Each Guarantor hereby waives diligence, presentment, demand
of payment, filing of claims with a court in the event of insolvency or
bankruptcy of the Company, any right to require a proceeding first against the
Company, protest, notice and all demands whatsoever and covenant that this Note
Guarantee will not be discharged except by complete performance of the
obligations contained in the Notes and this Indenture.

 

(c)           If any Holder or the Trustee is
required by any court or otherwise to return to the Company, the Guarantors or
any custodian, trustee, liquidator or other similar official acting in relation
to either the Company or the Guarantors, any amount paid by either to the
Trustee or such Holder, this Note Guarantee, to the extent theretofore
discharged, will be reinstated in full force and effect.

 

(d)           Each Guarantor agrees that it will
not be entitled to any right of subrogation in relation to the Holders in
respect of any obligations guaranteed hereby until payment in full of all
obligations guaranteed hereby. Each Guarantor further agrees that, as between
the Guarantors, on the one hand, and the Holders and the Trustee, on the other
hand, (1) the maturity of the obligations guaranteed hereby may be accelerated
as provided in Article 6 hereof for the purposes of this Note Guarantee,
notwithstanding any stay, injunction or other prohibition preventing such
acceleration in respect of the obligations guaranteed hereby, and (2) in the
event of any declaration of acceleration of such obligations as provided in
Article 6 hereof, such obligations (whether or not due and payable) will
forthwith become due and payable by the Guarantors for the purpose of this Note
Guarantee. The Guarantors will have the right to seek contribution from any
non-paying Guarantor so long as the exercise of such right does not impair the
rights of the Holders under the Note Guarantee.

 

Section
10.02.      Limitation on Guarantor
Liability.

 

Each Guarantor, and by its acceptance of Notes, each
Holder, hereby confirms that it is the intention of all such parties that the
Note Guarantee of such Guarantor not constitute a fraudulent transfer or
conveyance for purposes of Bankruptcy Law, the Uniform Fraudulent Conveyance
Act, the Uniform Fraudulent Transfer Act or any similar federal or state law to
the extent applicable to any Note Guarantee. To effectuate the foregoing
intention, the Trustee, the Holders and the Guarantors hereby irrevocably agree
that the obligations of such Guarantor will be limited to the maximum amount
that will, after giving effect to such maximum amount and all other contingent
and fixed liabilities of such Guarantor that are relevant under such laws, and
after giving effect to any collections from, rights to receive contribution
from or payments made by or on behalf of any other Guarantor in respect of the
obligations of such other Guarantor under this Article 10, result in the
obligations of such Guarantor under its Note Guarantee not constituting a
fraudulent transfer or conveyance.

 

84

 

Section
10.03.      Execution and Delivery of
Note Guarantee.

 

To evidence its Note Guarantee set forth in Section
10.01 hereof, each Guarantor hereby agrees that a notation of such Note
Guarantee substantially in the form attached as Exhibit E hereto will be endorsed
by an Officer of such Guarantor on each Note authenticated and delivered by the
Trustee and that this Indenture will be executed on behalf of such Guarantor by
one of its Officers.

 

Each Guarantor hereby agrees that its Note Guarantee
set forth in Section 10.01 hereof will remain in full force and effect
notwithstanding any failure to endorse on each Note a notation of such Note
Guarantee.

 

If an Officer whose signature is on this Indenture or
on the Note Guarantee no longer holds that office at the time the Trustee
authenticates the Note on which a Note Guarantee is endorsed, the Note
Guarantee will be valid nevertheless.

 

The delivery of any Note by the Trustee, after the
authentication thereof hereunder, will constitute due delivery of the Note Guarantee
set forth in this Indenture on behalf of the Guarantors.

 

In the event that the Company or any of its Restricted
Subsidiaries creates or acquires any Domestic Subsidiary after the date of this
Indenture, if required by Section 4.17 hereof, the Company will cause such
Domestic Subsidiary to comply with the provisions of Section 4.17 hereof and
this Article 10, to the extent applicable.

 

Section
10.04.      Guarantors May Consolidate,
etc., on Certain Terms.

 

Except as otherwise provided in Section 10.05 hereof,
no Guarantor may sell or otherwise dispose of all or substantially all of its
assets to, or consolidate with or merge with or into (whether or not such
Guarantor is the surviving Person) another Person, other than the Company or
another Guarantor, unless:

 

(1)           immediately after giving effect to such transaction,
no Default exists; and

 

(2)           either:

 

(a)           subject to Section 10.05 hereof, the Person acquiring
the property in any such sale or disposition or the Person formed by or
surviving any such consolidation or merger unconditionally assumes all the
obligations of that Guarantor under this Indenture, its Note Guarantee and the Registration
Rights Agreement on the terms set forth herein or therein, pursuant to a
supplemental indenture in form and substance reasonably satisfactory to the
Trustee; or

 

(b)           the Net Proceeds of such sale or other disposition are
applied in accordance with the applicable provisions of this Indenture,
including without limitation, Section 4.10 hereof.

 

In case of any such consolidation, merger, sale or
conveyance and upon the assumption by the successor Person, by supplemental
indenture, executed and delivered to the Trustee and reasonably satisfactory in
form to the Trustee, of the Note Guarantee endorsed upon the Notes and the due
and punctual performance of all of the covenants and conditions of this
Indenture to be performed by the Guarantor, such successor Person will succeed
to and be substituted for the Guarantor with the same effect as if it had been
named herein as a Guarantor. Such successor Person thereupon may cause to be
signed any or all of the Note Guarantees to be endorsed upon all of the Notes
issuable hereunder which theretofore shall not have been signed by the Company
and delivered to the Trustee. All the Note

 

85

 

Guarantees so issued will
in all respects have the same legal rank and benefit under this Indenture as
the Note Guarantees theretofore and thereafter issued in accordance with the
terms of this Indenture as though all of such Note Guarantees had been issued
at the date of the execution hereof.

 

Except as set forth in Articles 4 and 5 hereof, and
notwithstanding clauses 2(a) and (b) above, nothing contained in this Indenture
or in any of the Notes will prevent any consolidation or merger of a Guarantor
with or into the Company or another Guarantor, or will prevent any sale or
conveyance of the property of a Guarantor as an entirety or substantially as an
entirety to the Company or another Guarantor.

 

Section
10.05.      Releases.

 

(a)           In the
event of any sale or other disposition of all or substantially all of the
assets of any Guarantor, by way of merger, consolidation or otherwise, or a
sale or other disposition of all of the Capital Stock of any Guarantor, in each
case to a Person that is not (either before or after giving effect to such
transactions) the Company or a Restricted Subsidiary of the Company, then such
Guarantor (in the event of a sale or other disposition, by way of merger,
consolidation or otherwise, of all of the Capital Stock of such Guarantor) or
the corporation acquiring the property (in the event of a sale or other
disposition of all or substantially all of the assets of such Guarantor) will
be released and relieved of any obligations under its Note Guarantee; provided that the Net Proceeds of such sale or other
disposition are applied in accordance with the applicable provisions of this
Indenture, including without limitation Section 4.10 hereof. Upon delivery by
the Company to the Trustee of an Officers’ Certificate and an Opinion of
Counsel to the effect that such sale or other disposition was made by the
Company in accordance with the provisions of this Indenture, including without
limitation Section 4.10 hereof, the Trustee will execute any documents
reasonably required in order to evidence the release of any Guarantor from its
obligations under its Note Guarantee.

 

(b)           Upon
designation of any Guarantor as an Unrestricted Subsidiary in accordance with
the terms of this Indenture, such Guarantor will be released and relieved of
any obligations under its Note Guarantee.

 

(c)           Upon Legal
Defeasance in accordance with Article 8 hereof or satisfaction and discharge of
this Indenture in accordance with Article 11 hereof, each Guarantor will be
released and relieved of any obligations under its Note Guarantee.

 

Any Guarantor not released from its obligations under
its Note Guarantee as provided in this Section 10.05 will remain liable for the
full amount of principal of and interest and premium and Additional Interest,
if any, on the Notes and for the other obligations of any Guarantor under this
Indenture as provided in this Article 10.

 

ARTICLE 11

SATISFACTION AND DISCHARGE

 

Section 11.01         Satisfaction and Discharge.

 

This Indenture will be discharged and will cease to be
of further effect as to all Notes, issued hereunder, when:

 

(1)           either:

 

(a)           all Notes that have been authenticated, except lost,
stolen or destroyed Notes that have been replaced or paid and all Notes for
whose payment money has theretofore been

 

86

 

deposited in trust and thereafter repaid to the Company, have
been delivered to the Trustee for cancellation; or

 

(b)           all Notes that have not been delivered to the Trustee
for cancellation have become due and payable by reason of the mailing of a
notice of redemption or otherwise or will become due and payable within one
year and the Company or any Guarantor has irrevocably deposited or caused to be
deposited with the Trustee as trust funds in trust solely for the benefit of
the Holders, cash in U.S. dollars, non-callable Government Securities, or a
combination thereof, in such amounts as will be sufficient, without
consideration of any reinvestment of interest, to pay and discharge the entire
Indebtedness on the Notes not delivered to the Trustee for cancellation for
principal, premium and Additional Interest, if any, and accrued interest to the
date of maturity or redemption;

 

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

 

(3)           the Company or any Guarantor has paid or caused to be
paid all sums payable by it under this Indenture; and

 

(4)           the Company has delivered irrevocable instructions to
the Trustee under this Indenture to apply the deposited money toward the
payment of the Notes at maturity or on the redemption date, as the case may be.

 

In addition, the Company must deliver an Officers’
Certificate and an Opinion of Counsel to the Trustee stating that all conditions
precedent to satisfaction and discharge have been satisfied.

 

Notwithstanding the satisfaction and discharge of this
Indenture, if money has been deposited with the Trustee pursuant to subclause
(b) of clause (1) of this Section 11.01, the provisions of Sections 11.02 and
8.06 hereof will survive. In addition, nothing in this Section 11.01 will be
deemed to discharge those provisions of Section 7.07 hereof, that, by their
terms, survive the satisfaction and discharge of this Indenture.

 

Section 11.02         Application of Trust Money.

 

Subject to the provisions of Section 8.06 hereof, all
money deposited with the Trustee pursuant to Section 11.01 hereof shall be held
in trust and applied by it, in accordance with the provisions of the Notes and
this Indenture, to the payment, either directly or through any Paying Agent
(including the Company acting as its own Paying Agent) as the Trustee may
determine, to the Persons entitled thereto, of the principal (and premium and Additional
Interest, if any) and interest for whose payment such money has been deposited
with the Trustee; but such money need not be segregated from other funds except
to the extent required by law.

 

If the Trustee or Paying Agent is unable to apply any
money or Government Securities in accordance with Section 11.01 hereof by
reason of any legal proceeding or by reason of any order or judgment of any
court or governmental authority enjoining, restraining or otherwise prohibiting
such application, the Company’s and any Guarantor’s obligations under this
Indenture and the Notes shall be revived and reinstated as though no deposit
had occurred pursuant to Section 11.01 hereof; provided
that if the Company has made any payment of principal of, premium or Additional
Interest, if any, or interest on, any Notes because of the reinstatement of its
obligations, the Company shall be subrogated to the

 

87

 

rights of the Holders of
such Notes to receive such payment from the money or Government Securities held
by the Trustee or Paying Agent.

 

ARTICLE 12

MISCELLANEOUS

 

Section 12.01         Trust Indenture Act Controls.

 

If any provision of this Indenture limits, qualifies
or conflicts with the duties imposed by TIA §318(c), the duties imposed by TIA
§318(c) will control.

 

Section 12.02         Notices.

 

Any notice or communication by the Company, any
Guarantor or the Trustee to the others is duly given if in writing and
delivered in Person or by first class mail (registered or certified, return
receipt requested), facsimile transmission or overnight air courier
guaranteeing next day delivery, to the others’ address:

 

If to
the Company and/or any Guarantor:

Georgia Gulf Corporation

115 Perimeter Center Place

Suite 460

Atlanta, Georgia 30346

Facsimile No.:  (770) 395-4563

Attention:  General Counsel

 

With a
copy to:

Jones Day

1420 Peachtree Street

N.E. Suite 800

Atlanta, Georgia 30309-3053

Facsimile No.:  (404) 581-8330

Attention:  John E. Zamer, Esq.

 

If to
the Trustee:

LaSalle Bank, National Association

135 S. LaSalle Street

Suite 1560

Chicago, Illinois 60603

Facsimile No.:  (312) 904-2236

Attention:  Corporate Trust Services
Division

 

The Company, any Guarantor or the Trustee, by notice
to the others, may designate additional or different addresses for subsequent
notices or communications.

 

All notices and communications (other than those sent
to Holders) will be deemed to have been duly given: at the time delivered by
hand, if personally delivered; five Business Days after being deposited in the
mail, postage prepaid, if mailed; when receipt acknowledged, if transmitted by
facsimile; and the next Business Day after timely delivery to the courier, if
sent by overnight air courier guaranteeing next day delivery.

 

88

 

Any notice or communication to a Holder will be mailed
by first class mail, certified or registered, return receipt requested, or by
overnight air courier guaranteeing next day delivery to its address shown on
the register kept by the Registrar. Any notice or communication will also be so
mailed to any Person described in TIA § 313(c), to the extent required by
the TIA. Failure to mail a notice or communication to a Holder or any defect in
it will not affect its sufficiency with respect to other Holders.

 

If a notice or communication is mailed in the manner
provided above within the time prescribed, it is duly given, whether or not the
addressee receives it.

 

If the Company mails a notice or communication to
Holders, it will mail a copy to the Trustee and each Agent at the same time.

 

Section 12.03         Communication by Holders of Notes with Other Holders
of Notes.

 

Holders may communicate pursuant to TIA § 312(b)
with other Holders with respect to their rights under this Indenture or the
Notes. The Company, the Trustee, the Registrar and anyone else shall have the
protection of TIA § 312(c).

 

Section 12.04         Certificate and Opinion as to Conditions Precedent.

 

Upon any request or application by the Company to the
Trustee to take any action under this Indenture, the Company shall furnish to
the Trustee:

 

(1)           an Officers’ Certificate in form and substance
reasonably satisfactory to the Trustee (which must include the statements set
forth in Section 12.05 hereof) stating that, in the opinion of the signers, all
conditions precedent and covenants, if any, provided for in this Indenture
relating to the proposed action have been satisfied; and

 

(2)           an Opinion of Counsel in form and substance reasonably
satisfactory to the Trustee (which must include the statements set forth in
Section 12.05 hereof) stating that, in the opinion of such counsel, all such
conditions precedent and covenants have been satisfied.

 

Section 12.05         Statements Required in Certificate or Opinion.

 

Each certificate or opinion with respect to compliance
with a condition or covenant provided for in this Indenture (other than a
certificate provided pursuant to TIA § 314(a)(4)) must comply with the
provisions of TIA § 314(e) and must include:

 

(1)           a statement that the Person making such certificate or
opinion has read such covenant or condition;

 

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

 

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

 

(4)           a statement as to whether or not, in the opinion of
such Person, such condition or covenant has been satisfied.

 

89

 

In giving an Opinion of
Counsel, counsel may rely as to factual matters on an Officer’s Certificate.

 

Section 12.06         Rules by Trustee and Agents.

 

The Trustee may make reasonable rules for action by or
at a meeting of Holders. The Registrar or Paying Agent may make reasonable
rules and set reasonable requirements for its functions.

 

Section 12.07         No Personal Liability of Directors, Officers,
Employees and Stockholders.

 

No past, present or future director, officer,
employee, incorporator or stockholder of the Company or any Guarantor, as such,
will have any liability for any obligations of the Company or the Guarantors under
the Notes, this Indenture, the Note Guarantees or for any claim based on, in
respect of, or by reason of, such obligations or their creation. Each Holder of
Notes by accepting a Note waives and releases all such liability. The waiver
and release are part of the consideration for issuance of the Notes. The waiver
may not be effective to waive liabilities under the federal securities laws.

 

Section 12.08         Governing Law.

 

THE INTERNAL LAW OF THE STATE OF NEW YORK WILL GOVERN
AND BE USED TO CONSTRUE THIS INDENTURE, THE NOTES AND THE NOTE GUARANTEES
WITHOUT GIVING EFFECT TO APPLICABLE PRINCIPLES OF CONFLICTS OF LAW TO THE
EXTENT THAT THE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION WOULD BE
REQUIRED THEREBY.

 

Section 12.09         No Adverse Interpretation of Other Agreements.

 

This Indenture may not be used to interpret any other
indenture, loan or debt agreement of the Company or its Subsidiaries or of any
other Person. Any such indenture, loan or debt agreement may not be used to
interpret this Indenture.

 

Section 12.10         Successors.

 

All agreements of the Company in this Indenture and
the Notes will bind its successors. All agreements of the Trustee in this
Indenture will bind its successors. All agreements of each Guarantor in this
Indenture will bind its successors, except as otherwise provided in Section
10.05 hereof.

 

Section 12.11         Severability.

 

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

 

Section 12.12         Counterpart Originals.

 

The parties may sign any number of copies of this
Indenture. Each signed copy will be an original, but all of them together
represent the same agreement.

 

90

 

Section 12.13         Table of Contents, Headings, etc.

 

The Table of Contents, Cross-Reference Table and
Headings of the Articles and Sections of this Indenture have been inserted for
convenience of reference only, are not to be considered a part of this Indenture
and will in no way modify or restrict any of the terms or provisions hereof.

 

[Signatures
on following page]

 

91

 

SIGNATURES

 

 

IN WITNESS WHEREOF, the parties have caused this
Indenture to be duly executed as of the day and year first written above.

 

	
   

  	
  GEORGIA GULF CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/Joel I. Beerman

  
	
   

  	
   

  	
  Name: 
  Joel I. Beerman

  
	
   

  	
   

  	
  Title: 
  Vice President, General Counel and Secretary

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  GEORGIA GULF CHEMICALS
  &

  VINYLS, LLC

  
	
   

  	
  GEORGIA GULF LAKE CHARLES, LLC

  
	
   

  	
  GREAT RIVER OIL & GAS CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/Joel I. Beerman

  
	
   

  	
   

  	
  Name: Joel I. Beerman

  
	
   

  	
   

  	
  Title: 
  Vice President and Secretary

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  LASALLE BANK NATIONAL ASSOCIATION,

  
	
   

  	
  As Trustee

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/Margaret M. Muir

  
	
   

  	
   

  	
  Name: 
  Margaret M. Muir

  
	
   

  	
   

  	
  Title: 
  First Vice President

  

 

 

[Face of Note]

 

CUSIP/CINS                        

 

9.5% Senior Notes
due 2014

 

	
  No.

  	
   

  	
   

  	
  $

  	
   

  

 

 

GEORGIA
GULF CORPORATION

 

promises to pay to                or registered
assigns, 

 

the principal sum of                                                                                                                           
DOLLARS on OCTOBER 15, 2014.

 

Interest Payment Dates:  APRIL 15 and OCTOBER 15

 

Record Dates:  APRIL
1 and OCTOBER 1

 

Dated:                         ,
200  

 

	
   

  	
  GEORGIA GULF CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
  This is one of the Notes referred to

  	
   

  	
   

  
	
  in the within-mentioned Indenture:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  LASALLE BANK NATIONAL ASSOCIATION,

  	
   

  	
   

  
	
  as Trustee

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Authorized Signatory

  	
   

  
						

 

A-1

 

[Back
of Note]

9.5%
Senior Notes due 2014

 

[Insert the Global Note Legend,
if applicable pursuant to the provisions of the Indenture]

 

[Insert the Private Placement
Legend, if applicable pursuant to the provisions of the Indenture]

 

Capitalized terms used herein have the meanings
assigned to them in the Indenture referred to below unless otherwise indicated.

 

(1)           INTEREST. Georgia Gulf Corporation, a Delaware corporation
(the “Company”), promises to pay
interest on the principal amount of this Note at 9.5% per annum from                              ,
20    until maturity and shall pay the Additional Interest, if
any, payable pursuant to Section 2.5 of the Registration Rights Agreement
referred to below. The Company will pay interest and Additional Interest, if
any, semi-annually in arrears on April 15 and October 15 of each year, or if
any such day is not a Business Day, on the next succeeding Business Day (each,
an “Interest Payment Date”). Interest
on the Notes will accrue from the most recent date to which interest has been
paid or, if no interest has been paid, from the date of issuance; provided that if there is no existing Default in the payment
of interest, and if this Note is authenticated between a record date referred
to on the face hereof and the next succeeding Interest Payment Date, interest
shall accrue from such next succeeding Interest Payment Date; provided further that the first Interest Payment Date shall
be                             ,
20   . The Company will pay interest (including post-petition
interest in any proceeding under any Bankruptcy Law) on overdue principal and
premium, if any, from time to time on demand at a rate that is 1% per annum in
excess of the rate then in effect to the extent lawful; it will pay interest
(including post-petition interest in any proceeding under any Bankruptcy Law)
on overdue installments of interest and Additional Interest, if any, (without
regard to any applicable grace periods) from time to time on demand at the same
rate to the extent lawful. Interest will be computed on the basis of a 360-day
year of twelve 30-day months.

 

(2)           METHOD OF PAYMENT. The Company will pay interest on
the Notes (except defaulted interest) and Additional Interest, if any, to the
Persons who are registered Holders of Notes at the close of business on the April
1 or October 1 next preceding the Interest Payment Date, even if such Notes are
canceled after such record date and on or before such Interest Payment Date,
except as provided in Section 2.12 of the Indenture with respect to defaulted
interest. The Notes will be payable as to principal, premium and Additional
Interest, if any, and interest at the office or agency of the Company
maintained for such purpose within or without the City and State of New York,
or, at the option of the Company, payment of interest and Additional Interest,
if any, may be made by check mailed to the Holders at their addresses set forth
in the register of Holders; provided that
payment by wire transfer of immediately available funds will be required with
respect to principal of and interest, premium and Additional Interest, if any,
on, all Global Notes and all other Notes the Holders of which will have
provided wire transfer instructions to the Company or the Paying Agent. Such
payment will be in such coin or currency of the United States of America as at
the time of payment is legal tender for payment of public and private debts.

 

(3)           PAYING AGENT AND REGISTRAR. Initially, LaSalle Bank National
Association, the Trustee under the Indenture, will act as Paying Agent and
Registrar. The Company may change any Paying Agent or Registrar without notice
to any Holder. The Company or any of its Subsidiaries may act in any such
capacity.

 

A-2

 

(4)           INDENTURE. The Company issued the Notes under an Indenture
dated as of October 3, 2006 (the “Indenture”)
among the Company, the Guarantors and the Trustee. The terms of the Notes
include those stated in the Indenture and those made part of the Indenture by
reference to the TIA. The Notes are subject to all such terms, and Holders are
referred to the Indenture and such Act for a statement of such terms. To the
extent any provision of this Note conflicts with the express provisions of the
Indenture, the provisions of the Indenture shall govern and be controlling. The
Notes are unsecured obligations of the Company. The Indenture does not limit
the aggregate principal amount of Notes that may be issued thereunder.

 

(5)           OPTIONAL REDEMPTION.

 

(a)           Except as set forth in subparagraph
(b) and (c) of this Paragraph 5, the Company will not have the option to redeem
the Notes prior to October 15, 2010. On or after October 15, 2010, the Company
will have the option to redeem all or a part of the Notes upon not less than 30
nor more than 60 days’ notice, at the redemption prices (expressed as
percentages of principal amount) set forth below plus accrued and unpaid
interest and Additional Interest, if any, on the Notes redeemed to the applicable
redemption date, if redeemed during the twelve-month period beginning on October
15 of the years indicated below, subject to the rights of Holders on the
relevant record date to receive interest on the relevant interest payment date:

 

	
  Year

  	
   

  	
  Percentage

  	
   

  
	
  2010

  	
   

  	
  104.750

  	
  %

  
	
  2011

  	
   

  	
  102.375

  	
  %

  
	
  2012 and thereafter

  	
   

  	
  100.000

  	
  %

  

 

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

 

(b)           Notwithstanding the provisions of
subparagraph (a) of this Paragraph 5, at any time prior to October 15, 2009,
the Company may on any one or more occasions redeem up to 35% of the aggregate
principal amount of Notes issued under the Indenture with the net cash proceeds
of one or more Equity Offerings at a redemption price equal to 109.5% of the aggregate
principal amount thereof, plus accrued and unpaid interest and Additional
Interest, if any to the redemption date; provided that
at least 65% in aggregate principal amount of the Notes originally issued under
the Indenture (excluding Notes held by the Company and its Subsidiaries)
remains outstanding immediately after the occurrence of such redemption and
that such redemption occurs within 60 days of the date of the closing of such
Equity Offering.

 

(c)           At any
time prior to October 15, 2010, the Company may also redeem all or a part of
the Notes, upon not less than 30 nor more than 60 days’ prior notice, at a
redemption price equal to 100% of the principal amount of the Notes redeemed
plus the Applicable Premium as of, and accrued and unpaid interest and
Additional Interest, if any, to the date of redemption, subject to the rights
of Holders of Notes on the relevant record date to receive interest due on the
relevant interest payment date.

 

(6)           MANDATORY REDEMPTION.

 

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

 

A-3

 

(7)           REPURCHASE AT THE OPTION OF HOLDER.

 

(a)           If there is a Change of Control, the Company will be
required to make an offer (a “Change of
Control Offer”) to each Holder to repurchase all or any part (equal
to $2,000 or integral multiples of $1,000 in excess thereof) of each Holder’s
Notes at a purchase price in cash equal to 101% of the aggregate principal
amount thereof plus accrued and unpaid interest and Additional Interest, if
any, thereon to the date of purchase, subject to the rights of Holders on the
relevant record date to receive interest due on the relevant interest payment
date (the “Change of Control Payment”).
Within 10 days following any Change of Control, the Company will mail a notice
to each Holder setting forth the procedures governing the Change of Control
Offer as required by the Indenture.

 

(b)           If the Company or a Restricted Subsidiary consummates
any Asset Sales, within five days of each date on which the aggregate amount of
Excess Proceeds exceeds $50.0 million, the Company will commence an offer to
all Holders of Notes and all holders of other Indebtedness that is pari passu with the Notes containing provisions similar to
those set forth in the Indenture with respect to offers to purchase or redeem
with the proceeds of sales of assets (an “Asset
Sale Offer”) pursuant to Section 3.09 of the Indenture to purchase
the maximum principal amount of Notes (including any Additional Notes) and such
other pari passu Indebtedness that may be
purchased out of the Excess Proceeds at an offer price in cash in an amount
equal to 100% of the principal amount thereof plus accrued and unpaid interest and
Additional Interest, if any, thereon to the date of purchase, in accordance
with the procedures set forth in the Indenture. If any Excess Proceeds remain
after consummation of an Asset Sale Offer, the Company may use those Excess
Proceeds for any purpose not otherwise prohibited by the Indenture. If the
aggregate principal amount of Notes and other pari passu
Indebtedness tendered into such Asset Sale Offer exceeds the amount of Excess
Proceeds, the Trustee shall select the Notes and such other pari passu Indebtedness to be purchased on a pro rata basis. Holders of Notes that are
the subject of an offer to purchase will receive an Asset Sale Offer from the
Company prior to any related purchase date and may elect to have such Notes
purchased by completing the form entitled “Option
of Holder to Elect Purchase” attached to the Notes.

 

(8)           NOTICE OF REDEMPTION. Notice of redemption will be
mailed at least 30 days but not more than 60 days before the redemption date to
each Holder whose Notes are to be redeemed at its registered address, except
that redemption notices may be mailed more than 60 days prior to a redemption
date if the notice is issued in connection with a defeasance of the Notes or a
satisfaction or discharge of the Indenture. Notes in denominations larger than
$2,000 may be redeemed in part but only in whole multiples of $1,000, unless
all of the Notes held by a Holder are to be redeemed.

 

(9)           DENOMINATIONS, TRANSFER, EXCHANGE. The Notes are in registered form
without coupons in denominations of $2,000 and integral multiples of $1,000 in
excess thereof. The transfer of Notes may be registered and Notes may be
exchanged as provided in the Indenture. The Registrar and the Trustee may
require a Holder, among other things, to furnish appropriate endorsements and
transfer documents and the Company may require a Holder to pay any taxes and
fees required by law or permitted by the Indenture. The Company need not
exchange or register the transfer of any Note or portion of a Note selected for
redemption in whole or in part, except for the unredeemed portion of any Note
being redeemed in part. Also, the Company need not exchange or register the
transfer of any Notes for a period of 15 days before a selection of Notes to be
redeemed or during the period between a record date and the corresponding
Interest Payment Date.

 

A-4

 

(10)         PERSONS DEEMED OWNERS. The registered Holder of a Note
may be treated as its owner for all purposes.

 

(11)         AMENDMENT, SUPPLEMENT AND WAIVER. Subject to certain exceptions, the
Indenture or the Notes or the Note Guarantees may be amended or supplemented
with the consent of the Holders of at least a majority in aggregate principal
amount of the then outstanding Notes including Additional Notes, if any, voting
as a single class, and any existing Default or compliance with any provision of
the Indenture or the Notes or the Note Guarantees may be waived with the
consent of the Holders of a majority in aggregate principal amount of the then
outstanding Notes including Additional Notes, if any, voting as a single class.
Without the consent of any Holder of a Note, the Indenture or the Notes or the
Note Guarantees may be amended or supplemented to cure any ambiguity, defect or
inconsistency, to provide for uncertificated Notes in addition to or in place
of certificated Notes, to provide for the assumption of the Company’s or a
Guarantor’s obligations to Holders of the Notes and Note Guarantees in case of
a merger or consolidation, to make any change that would provide any additional
rights or benefits to the Holders of the Notes or that does not adversely
affect the legal rights under the Indenture of any such Holder, to comply with
the requirements of the SEC in order to effect or maintain the qualification of
the Indenture under the TIA, to conform the text of the Indenture or the Notes
to any provision of the “Description of Notes” section of the Company’s Offering
Memorandum dated September 28, 2006, relating to the initial offering of the
Notes, to the extent that such provision in that “Description of Notes” was
intended to be a verbatim recitation of a provision of the Indenture, the Note
Guarantees or the Notes; to provide for the issuance of Additional Notes in
accordance with the limitations set forth in the Indenture, to allow any
Guarantor to execute a supplemental indenture to the Indenture and/or a Note
Guarantee with respect to the Notes, to secure the Notes or any Note Guarantee,
or to add to the covenants of the Company for the benefit of the Holders of
Notes or surrender any right or power conferred upon the Company.

 

(12)         DEFAULTS AND REMEDIES. Events of Default include:  (i) default for 30 days in the payment when
due of interest on, or Additional Interest, if any, with respect to the Notes;
(ii) default in the payment when due of the principal of, or premium, if any,
on, the Notes when the same becomes due and payable at maturity, upon
redemption (including in connection with an offer to purchase) or otherwise,
(iii) failure by the Company or any of its Restricted Subsidiaries to comply
with Section 4.10, 4.15 or 5.01 of the Indenture; (iv) failure by the Company
or any of its Restricted Subsidiaries for 60 days after notice to the Company
by the Trustee or the Holders of at least 25% in aggregate principal amount of
the Notes including Additional Notes, if any, then outstanding voting as a
single class to comply with any of the other agreements in the Indenture or the
Notes; (v) default under certain other agreements relating to Indebtedness of
the Company which default results in the acceleration of such Indebtedness
prior to its express maturity; (vi) certain final judgments (net of any amounts
paid by an insurance carrier) for the payment of money that remain undischarged
for a period of 60 days; (vii) certain events of bankruptcy or insolvency with
respect to the Company or any of its Restricted Subsidiaries that is a
Significant Subsidiary or any group of Restricted Subsidiaries that, taken
together, would constitute a Significant Subsidiary; and (viii) except as
permitted by the Indenture, any Note Guarantee is held in any judicial
proceeding to be unenforceable or invalid or ceases for any reason to be in
full force and effect or any Guarantor or any Person acting on its behalf
denies or disaffirms its obligations under such Guarantor’s Note Guarantee. If
any Event of Default occurs and is continuing, the Trustee or the Holders of at
least 25% in aggregate principal amount of the then outstanding Notes may
declare all the Notes to be due and payable immediately. Notwithstanding the
foregoing, in the case of an Event of Default arising from certain events of
bankruptcy or insolvency, all outstanding Notes will become due and payable
immediately

 

A-5

 

without further action or notice. Holders may not enforce the
Indenture or the Notes except as provided in the Indenture. Subject to certain
limitations, Holders of a majority in aggregate principal amount of the then
outstanding Notes may direct the Trustee in its exercise of any trust or power.
The Trustee may withhold from Holders of the Notes notice of any continuing
Default or Event of Default (except a Default or Event of Default relating to
the payment of principal or interest or premium or Additional Interest, if
any,) if it determines that withholding notice is in their interest. The
Holders of a majority in aggregate principal amount of the then outstanding
Notes by notice to the Trustee may, on behalf of the Holders of all of the
Notes, rescind an acceleration or waive any existing Default or Event of
Default and its consequences under the Indenture except a continuing Default or
Event of Default in the payment of interest or premium or Additional Interest,
if any, on, or the principal of, the Notes. The Company is required to deliver
to the Trustee annually a statement regarding compliance with the Indenture,
and the Company is required, upon becoming aware of any Default or Event of
Default, to deliver to the Trustee a statement specifying such Default or Event
of Default.

 

(13)         TRUSTEE DEALINGS WITH COMPANY. The Trustee, in its individual or
any other capacity, may make loans to, accept deposits from, and perform
services for the Company or its Affiliates, and may otherwise deal with the
Company or its Affiliates, as if it were not the Trustee.

 

(14)         NO RECOURSE AGAINST OTHERS. A director, officer, employee,
incorporator or stockholder of the Company or any of the Guarantors, as such,
will not have any liability for any obligations of the Company or the
Guarantors under the Notes, the Note Guarantees or the Indenture or for any
claim based on, in respect of, or by reason of, such obligations or their
creation. Each Holder by accepting a Note waives and releases all such
liability. The waiver and release are part of the consideration for the
issuance of the Notes. Such waiver may not be effective to waive liabilities
under the federal securities laws and it is the view of the SEC that such a
waiver is against public policy.

 

(15)         AUTHENTICATION. This Note will not be valid until authenticated by
the manual signature of the Trustee or an authenticating agent.

 

(16)         ABBREVIATIONS. Customary abbreviations may be used in the name of a
Holder or an assignee, such as:  TEN COM
(= tenants in common), TEN ENT (= tenants by the entireties), JT TEN (= joint
tenants with right of survivorship and not as tenants in common), CUST (=
Custodian), and U/G/M/A (= Uniform Gifts to Minors Act).

 

(17)         ADDITIONAL RIGHTS OF HOLDERS OF RESTRICTED GLOBAL
NOTES AND RESTRICTED DEFINITIVE NOTES. In addition to the rights provided to Holders of
Notes under the Indenture, Holders of Restricted Global Notes and Restricted
Definitive Notes will have all the rights set forth in the Registration Rights
Agreement dated as of October 3, 2006, among the Company, the Guarantors and
the other parties named on the signature pages thereof or, in the case of
Additional Notes, Holders of Restricted Global Notes and Restricted Definitive
Notes will have the rights set forth in one or more registration rights
agreements, if any, among the Company, the Guarantors and the other parties
thereto, relating to rights given by the Company and the Guarantors to the purchasers
of any Additional Notes (collectively, the “Registration
Rights Agreement”).

 

(18)         CUSIP NUMBERS. Pursuant to a recommendation promulgated by the
Committee on Uniform Security Identification Procedures, the Company has caused
CUSIP numbers to be printed on the Notes, and the Trustee may use CUSIP numbers
in notices of redemption as a

 

A-6

 

convenience to Holders. No representation is made as to the
accuracy of such numbers either as printed on the Notes or as contained in any
notice of redemption, and reliance may be placed only on the other
identification numbers placed thereon.

 

(19)         GOVERNING LAW. THE INTERNAL LAW OF THE STATE OF NEW YORK WILL GOVERN
AND BE USED TO CONSTRUE THE INDENTURE, THIS NOTE AND THE NOTE GUARANTEES
WITHOUT GIVING EFFECT TO APPLICABLE PRINCIPLES OF CONFLICTS OF LAW TO THE
EXTENT THAT THE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION WOULD BE
REQUIRED THEREBY.

 

The Company will furnish to any Holder upon written
request and without charge a copy of the Indenture and/or the Registration
Rights Agreement. Requests may be made to:

 

Georgia Gulf
Corporation

115 Perimeter Center Place

Suite 460

Atlanta, Georgia 30346

Attention:  General Counsel

 

A-7

 

ASSIGNMENT
FORM

 

To assign this Note, fill in the form below:

 

	
  (I) or (we) assign and
  transfer this Note to:

  	
   

  
	
   

  	
  (Insert assignee’s
  legal name)

  
	
   

  
	
   

  
	
  (Insert assignee’s soc.
  sec. or tax I.D. no.)

  
	
   

  
	
   

  
	
   

  
	
  (Print or type
  assignee’s name, address and zip code)

  

 

and irrevocably appoint                                                                                                                                                                                 

to transfer this Note on the books of the Company. The agent may substitute
another to act for him.

 

	
  Date:

  	
   

  	
   

  
	
   

  
	
  Your Signature:  

  	
   

  
	
   

  	
  (Sign exactly as
  your name appears on the face of this Note)

  
	
   

  
	
  Signature
  Guarantee*:

  	
   

  	
   

  
							

 

*              Participant in a
recognized Signature Guarantee Medallion Program (or other signature guarantor
acceptable to the Trustee).

 

A-8

 

Option of
Holder to Elect Purchase

 

If you want to elect to have this Note purchased by
the Company pursuant to Section 4.10 or 4.15 of the Indenture, check the
appropriate box below:

 

	
   

  	
  oSection
  4.10

  	
  oSection
  4.15

  

 

If you want to elect to have only part of the Note
purchased by the Company pursuant to Section 4.10 or Section 4.15 of the
Indenture, state the amount you elect to have purchased:

 

$                       

 

	
  Date:

  	
   

  	
   

  
	
   

  
	
  Your Signature:  

  	
   

  
	
   

  	
  (Sign exactly as
  your name appears on the face of this Note)

  
	
   

  
	
  Tax
  Identification No.:  

  	
   

  
	
   

  	
   

  
	
  Signature
  Guarantee*:

  	
   

  	
   

  
								

 

*              Participant in a
recognized Signature Guarantee Medallion Program (or other signature guarantor
acceptable to the Trustee).

 

A-9

 

SCHEDULE
OF EXCHANGES OF INTERESTS IN THE GLOBAL NOTE *

 

The following exchanges of a part of this Global Note
for an interest in another Global Note or for a Definitive Note, or exchanges
of a part of another Global Note or Definitive Note for an interest in this
Global Note, have been made:

 

 

	
  Date of Exchange

  	
   

  	
  Amount of decrease in

  Principal Amount

  of

  this Global Note

  	
   

  	
  Amount of increase in

  Principal Amount

  of

  this Global Note

  	
   

  	
  Principal Amount

  of this Global Note

  following such

  decrease

  (or increase)

  	
   

  	
  Signature of authorized

  officer of Trustee or

  Custodian

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

*                 This schedule should be included only if the Note is issued in global
form.

 

A-10

 

EXHIBIT B

 

FORM
OF CERTIFICATE OF TRANSFER

 

Georgia Gulf
Corporation

115 Perimeter Center Place

Suite 460

Atlanta, Georgia 30346

 

LaSalle Bank National Association.

135 S. LaSalle Street

Suite 1560

Chicago, Illinois 60603

 

Re:  9.5 %
Senior Notes due 2014

 

Reference is hereby made to the Indenture, dated as of
October 3, 2006 (the “Indenture”),
among Georgia Gulf Corporation, as issuer (the “Company”),
the Guarantors party thereto and LaSalle Bank National Association, as trustee.
Capitalized terms used but not defined herein shall have the meanings given to
them in the Indenture.

 

                                  ,
(the “Transferor”) owns and proposes to
transfer the Note[s] or interest in such Note[s] specified in Annex A hereto,
in the principal amount of $                   
in such Note[s] or interests (the “Transfer”), to                                    
(the “Transferee”), as further specified in
Annex A hereto. In connection with the Transfer, the Transferor hereby
certifies that:

 

[CHECK
ALL THAT APPLY]

 

1. o   Check if Transferee will
take delivery of a beneficial interest in the 144A Global Note or a Restricted
Definitive Note pursuant to Rule 144A. The Transfer is being
effected pursuant to and in accordance with Rule 144A under the Securities Act
of 1933, as amended (the “Securities Act”),
and, accordingly, the Transferor hereby further certifies that the beneficial
interest or Definitive Note is being transferred to a Person that the
Transferor reasonably believes is purchasing the beneficial interest or
Definitive Note for its own account, or for one or more accounts with respect
to which such Person exercises sole investment discretion, and such Person and
each such account is a “qualified institutional buyer” within the meaning of
Rule 144A in a transaction meeting the requirements of Rule 144A, and such
Transfer is in compliance with any applicable blue sky securities laws of any
state of the United States. Upon consummation of the proposed Transfer in
accordance with the terms of the Indenture, the transferred beneficial interest
or Definitive Note will be subject to the restrictions on transfer enumerated
in the Private Placement Legend printed on the 144A Global Note and/or the
Restricted Definitive Note and in the Indenture and the Securities Act.

 

2. o   Check if Transferee will
take delivery of a beneficial interest in the Regulation S Global Note or a
Restricted Definitive Note pursuant to Regulation S. The
Transfer is being effected pursuant to and in accordance with Rule 903 or Rule
904 under the Securities Act and, accordingly, the Transferor hereby further
certifies that (i) the Transfer is not being made to a Person in the United
States and (x) at the time the buy order was originated, the Transferee was
outside the United States or such Transferor and any Person acting on its
behalf reasonably believed and believes that the Transferee was outside the
United States or (y) the transaction was executed in, on or through the
facilities of a designated offshore securities market and neither such
Transferor nor any Person acting on its behalf knows that the transaction was
prearranged with a buyer in the United States, (ii) no directed selling efforts
have been made in contravention of the requirements of Rule 903(b) or Rule
904(b) of Regulation

 

B-1

 

S under the Securities
Act, (iii) the transaction is not part of a plan or scheme to evade the
registration requirements of the Securities Act and (iv) if the proposed
transfer is being made prior to the expiration of the Restricted Period, the
transfer is not being made to a U.S. Person or for the account or benefit of a
U.S. Person (other than an Initial Purchaser). Upon consummation of the
proposed transfer in accordance with the terms of the Indenture, the
transferred beneficial interest or Definitive Note will be subject to the
restrictions on Transfer enumerated in the Private Placement Legend printed on
the Regulation S Global Note and/or the Restricted Definitive Note and in the
Indenture and the Securities Act.

 

3. o   Check and complete if
Transferee will take delivery of a beneficial interest in the IAI Global Note
or a Restricted Definitive Note pursuant to any provision of the Securities Act
other than Rule 144A or Regulation S. The Transfer is being
effected in compliance with the transfer restrictions applicable to beneficial
interests in Restricted Global Notes and Restricted Definitive Notes and
pursuant to and in accordance with the Securities Act and any applicable blue
sky securities laws of any state of the United States, and accordingly the
Transferor hereby further certifies that (check one):

 

(a)           o   such Transfer is being effected pursuant to
and in accordance with Rule 144 under the Securities Act;

 

or

 

(b)           o   such Transfer is being effected to the
Company or a subsidiary thereof;

 

or

 

(c)           o   such Transfer is being effected pursuant to
an effective registration statement under the Securities Act and in compliance
with the prospectus delivery requirements of the Securities Act;

 

or

 

(d)           o   such Transfer is being effected to an
Institutional Accredited Investor and pursuant to an exemption from the
registration requirements of the Securities Act other than Rule 144A, Rule 144,
Rule 903 or Rule 904, and the Transferor hereby further certifies that it has
not engaged in any general solicitation within the meaning of Regulation D
under the Securities Act and the Transfer complies with the transfer restrictions
applicable to beneficial interests in a Restricted Global Note or Restricted
Definitive Notes and the requirements of the exemption claimed, which
certification is supported by (1) a certificate executed by the Transferee in
the form of Exhibit D to the Indenture and (2) if such Transfer is in respect
of a principal amount of Notes at the time of transfer of less than $250,000,
an Opinion of Counsel provided by the Transferor or the Transferee (a copy of
which the Transferor has attached to this certification), to the effect that
such Transfer is in compliance with the Securities Act. Upon consummation of
the proposed transfer in accordance with the terms of the Indenture, the
transferred beneficial interest or Definitive Note will be subject to the restrictions
on transfer enumerated in the Private Placement Legend printed on the IAI
Global Note and/or the Restricted Definitive Notes and in the Indenture and the
Securities Act.

 

4. o   Check if Transferee will
take delivery of a beneficial interest in an Unrestricted Global Note or of an
Unrestricted Definitive Note.

 

(a)  o   Check if Transfer is
pursuant to Rule 144. (i) The Transfer is being effected pursuant to
and in accordance with Rule 144 under the Securities Act and in compliance with
the transfer

 

B-2

 

restrictions contained in
the Indenture and any applicable blue sky securities laws of any state of the
United States and (ii) the restrictions on transfer contained in the Indenture
and the Private Placement Legend are not required in order to maintain
compliance with the Securities Act. Upon consummation of the proposed Transfer
in accordance with the terms of the Indenture, the transferred beneficial
interest or Definitive Note will no longer be subject to the restrictions on
transfer enumerated in the Private Placement Legend printed on the Restricted
Global Notes, on Restricted Definitive Notes and in the Indenture.

 

(b)  o   Check if Transfer is
Pursuant to Regulation S. (i) The Transfer is being effected
pursuant to and in accordance with Rule 903 or Rule 904 under the Securities
Act and in compliance with the transfer restrictions contained in the Indenture
and any applicable blue sky securities laws of any state of the United States
and (ii) the restrictions on transfer contained in the Indenture and the
Private Placement Legend are not required in order to maintain compliance with
the Securities Act. Upon consummation of the proposed Transfer in accordance
with the terms of the Indenture, the transferred beneficial interest or
Definitive Note will no longer be subject to the restrictions on transfer
enumerated in the Private Placement Legend printed on the Restricted Global
Notes, on Restricted Definitive Notes and in the Indenture.

 

(c)  o   Check if Transfer is
Pursuant to Other Exemption. (i) The Transfer is being effected
pursuant to and in compliance with an exemption from the registration
requirements of the Securities Act other than Rule 144, Rule 903 or Rule 904
and in compliance with the transfer restrictions contained in the Indenture and
any applicable blue sky securities laws of any State of the United States and
(ii) the restrictions on transfer contained in the Indenture and the Private
Placement Legend are not required in order to maintain compliance with the
Securities Act. Upon consummation of the proposed Transfer in accordance with
the terms of the Indenture, the transferred beneficial interest or Definitive
Note will not be subject to the restrictions on transfer enumerated in the
Private Placement Legend printed on the Restricted Global Notes or Restricted
Definitive Notes and in the Indenture.

 

This certificate and the statements contained herein
are made for your benefit and the benefit of the Company.

 

 

	
   

  	
   

  	
   

  
	
   

  	
   

  	
  [Insert Name of Transferor]

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

Dated:                                                   

 

B-3

 

ANNEX
A TO CERTIFICATE OF TRANSFER

 

1.             The
Transferor owns and proposes to transfer the following:

 

[CHECK
ONE OF (a) OR (b)]

 

(a)   o   a beneficial interest in the:

 

(i)          o   144A Global Note (CUSIP                   ), or

 

(ii)         o   Regulation S Global Note (CUSIP                   ), or

 

(iii)        o    IAI Global Note (CUSIP                   ); or

 

(b)   o    a Restricted Definitive Note.

 

2.             After
the Transfer the Transferee will hold:

 

[CHECK
ONE]

 

(a)   o   a beneficial interest in the:

 

(i)          o   144A Global Note (CUSIP                   ), or

 

(ii)         o   Regulation S Global Note (CUSIP                   ), or

 

(iii)        o   IAI Global Note (CUSIP                   ); or

 

(iv)        o   Unrestricted Global Note (CUSIP                   ); or

 

(b)   o   a Restricted Definitive Note; or

 

(c)   o   an Unrestricted Definitive Note,

 

in accordance with the
terms of the Indenture.

 

B-4

 

EXHIBIT C

 

FORM
OF CERTIFICATE OF EXCHANGE

 

Georgia Gulf
Corporation

115 Perimeter Center Place

Suite 460

Atlanta, Georgia 30346

 

LaSalle Bank National Association

135 S. LaSalle Street

Suite 1560

Chicago, Illinois 60603

 

Re:  9.5%
Senior Notes due 2014

 

Reference is hereby made to the Indenture, dated as of
October 3, 2006 (the “Indenture”),
among Georgia Gulf Corporation, as issuer (the “Company”),
the Guarantors party thereto and LaSalle Bank National Association, as trustee.
Capitalized terms used but not defined herein shall have the meanings given to
them in the Indenture.

 

                                       ,
(the “Owner”) owns and proposes to exchange
the Note[s] or interest in such Note[s] specified herein, in the principal
amount of $                   in such Note[s] or interests (the “Exchange”). In connection with the Exchange, the Owner
hereby certifies that:

 

1.             Exchange of Restricted Definitive Notes or
Beneficial Interests in a Restricted Global Note for Unrestricted Definitive
Notes or Beneficial Interests in an Unrestricted Global Note

 

(a)  o
Check if Exchange is from beneficial interest in a
Restricted Global Note to beneficial interest in an Unrestricted Global Note.
In connection with the Exchange of the Owner’s beneficial interest in a
Restricted Global Note for a beneficial interest in an Unrestricted Global Note
in an equal principal amount, the Owner hereby certifies (i) the beneficial
interest is being acquired for the Owner’s own account without transfer, (ii)
such Exchange has been effected in compliance with the transfer restrictions
applicable to the Global Notes and pursuant to and in accordance with the
Securities Act of 1933, as amended (the “Securities Act”),
(iii) the restrictions on transfer contained in the Indenture and the Private
Placement Legend are not required in order to maintain compliance with the
Securities Act and (iv) the beneficial interest in an Unrestricted Global Note
is being acquired in compliance with any applicable blue sky securities laws of
any state of the United States.

 

(b)  o
Check if Exchange is from beneficial interest in a
Restricted Global Note to Unrestricted Definitive Note. In
connection with the Exchange of the Owner’s beneficial interest in a Restricted
Global Note for an Unrestricted Definitive Note, the Owner hereby certifies (i)
the Unrestricted Definitive Note is being acquired for the Owner’s own account
without transfer, (ii) such Exchange has been effected in compliance with the
transfer restrictions applicable to the Restricted Global Notes and pursuant to
and in accordance with the Securities Act, (iii) the restrictions on transfer
contained in the Indenture and the Private Placement Legend are not required in
order to maintain compliance with the Securities Act and (iv) the Unrestricted Definitive
Note is being acquired in compliance with any applicable blue sky securities
laws of any state of the United States.

 

(c)  o
Check if Exchange is from Restricted Definitive
Note to beneficial interest in an Unrestricted Global Note. In
connection with the Owner’s Exchange of a Restricted Definitive Note for a
beneficial interest in an Unrestricted Global Note, the Owner hereby certifies
(i) the beneficial interest is being acquired for the Owner’s own account
without transfer, (ii) such Exchange has been effected in

 

C-1

 

compliance with the
transfer restrictions applicable to Restricted Definitive Notes and pursuant to
and in accordance with the Securities Act, (iii) the restrictions on transfer
contained in the Indenture and the Private Placement Legend are not required in
order to maintain compliance with the Securities Act and (iv) the beneficial
interest is being acquired in compliance with any applicable blue sky
securities laws of any state of the United States.

 

(d)  o
Check if Exchange is from Restricted Definitive
Note to Unrestricted Definitive Note. In connection with the Owner’s
Exchange of a Restricted Definitive Note for an Unrestricted Definitive Note,
the Owner hereby certifies (i) the Unrestricted Definitive Note is being
acquired for the Owner’s own account without transfer, (ii) such Exchange has
been effected in compliance with the transfer restrictions applicable to
Restricted Definitive Notes and pursuant to and in accordance with the
Securities Act, (iii) the restrictions on transfer contained in the Indenture
and the Private Placement Legend are not required in order to maintain
compliance with the Securities Act and (iv) the Unrestricted Definitive Note is
being acquired in compliance with any applicable blue sky securities laws of
any state of the United States.

 

2.             Exchange of Restricted Definitive Notes or
Beneficial Interests in Restricted Global Notes for Restricted Definitive Notes
or Beneficial Interests in Restricted Global Notes

 

(a)  o
Check if Exchange is from beneficial interest in a
Restricted Global Note to Restricted Definitive Note. In connection
with the Exchange of the Owner’s beneficial interest in a Restricted Global
Note for a Restricted Definitive Note with an equal principal amount, the Owner
hereby certifies that the Restricted Definitive Note is being acquired for the
Owner’s own account without transfer. Upon consummation of the proposed
Exchange in accordance with the terms of the Indenture, the Restricted
Definitive Note issued will continue to be subject to the restrictions on
transfer enumerated in the Private Placement Legend printed on the Restricted
Definitive Note and in the Indenture and the Securities Act.

 

(b)  o
Check if Exchange is from Restricted Definitive
Note to beneficial interest in a Restricted Global Note. In
connection with the Exchange of the Owner’s Restricted Definitive Note for a
beneficial interest in the [CHECK ONE] o
144A Global Note, o Regulation S
Global Note,  o
IAI Global Note with an equal principal amount, the Owner hereby certifies (i)
the beneficial interest is being acquired for the Owner’s own account without
transfer and (ii) such Exchange has been effected in compliance with the
transfer restrictions applicable to the Restricted Global Notes and pursuant to
and in accordance with the Securities Act, and in compliance with any
applicable blue sky securities laws of any state of the United States. Upon
consummation of the proposed Exchange in accordance with the terms of the
Indenture, the beneficial interest issued will be subject to the restrictions
on transfer enumerated in the Private Placement Legend printed on the relevant
Restricted Global Note and in the Indenture and the Securities Act.

 

This certificate and the statements contained herein
are made for your benefit and the benefit of the Company.

 

 

	
   

  	
   

  	
   

  
	
   

  	
   

  	
  [Insert Name of Transferor]

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

 

Dated:                                         

 

C-2

 

EXHIBIT D

 

FORM
OF CERTIFICATE FROM

ACQUIRING INSTITUTIONAL ACCREDITED INVESTOR

 

Georgia Gulf
Corporation

115 Perimeter Center Place

Suite 460

Atlanta, Georgia 30346

 

LaSalle Bank National Association

135 S. LaSalle Street

Suite 1560

Chicago, Illinois 60603

 

Re:  9.5%
Senior Notes due 2014

 

Reference is hereby made to the Indenture, dated as of
October 3, 2006 (the “Indenture”),
among Georgia Gulf Corporation, as issuer (the “Company”),
the Guarantors party thereto and LaSalle Bank National Association, as trustee.
Capitalized terms used but not defined herein shall have the meanings given to
them in the Indenture.

 

In connection with our proposed purchase of $                        
aggregate principal amount of:

 

(a)  o
a beneficial interest in a Global Note, or

 

(b)  o
a Definitive Note,

 

we confirm that:

 

1.             We
understand that any subsequent transfer of the Notes or any interest therein is
subject to certain restrictions and conditions set forth in the Indenture and
the undersigned agrees to be bound by, and not to resell, pledge or otherwise
transfer the Notes or any interest therein except in compliance with, such
restrictions and conditions and the Securities Act of 1933, as amended (the “Securities Act”).

 

2.             We
understand that the offer and sale of the Notes have not been registered under
the Securities Act, and that the Notes and any interest therein may not be
offered or sold except as permitted in the following sentence. We agree, on our
own behalf and on behalf of any accounts for which we are acting as hereinafter
stated, that if we should sell the Notes or any interest therein, we will do so
only (A) to the Company or any subsidiary thereof, (B) in accordance with Rule
144A under the Securities Act to a “qualified institutional buyer” (as defined
therein), (C) to an institutional “accredited investor” (as defined below)
that, prior to such transfer, furnishes (or has furnished on its behalf by a
U.S. broker-dealer) to you and to the Company a signed letter substantially in
the form of this letter and, if such transfer is in respect of a principal
amount of Notes, at the time of transfer of less than $250,000, an Opinion of
Counsel in form reasonably acceptable to the Company to the effect that such
transfer is in compliance with the Securities Act, (D) outside the United
States in accordance with Rule 904 of Regulation S under the Securities Act,
(E) pursuant to the provisions of Rule 144(k) under the Securities Act or (F)
pursuant to an effective registration statement under the Securities Act, and
we further agree to provide to any Person purchasing the Definitive Note or
beneficial interest in a Global Note from us in a transaction meeting the
requirements of clauses (A) through (E) of this paragraph a notice advising
such purchaser that resales thereof are restricted as stated herein.

 

D-1

 

3.             We
understand that, on any proposed resale of the Notes or beneficial interest
therein, we will be required to furnish to you and the Company such
certifications, legal opinions and other information as you and the Company may
reasonably require to confirm that the proposed sale complies with the
foregoing restrictions. We further understand that the Notes purchased by us
will bear a legend to the foregoing effect.

 

4.             We are
an institutional “accredited investor” (as defined in Rule 501(a)(1), (2), (3)
or (7) of Regulation D under the Securities Act) and have such knowledge and
experience in financial and business matters as to be capable of evaluating the
merits and risks of our investment in the Notes, and we and any accounts for
which we are acting are each able to bear the economic risk of our or its
investment.

 

5.             We are acquiring
the Notes or beneficial interest therein purchased by us for our own account or
for one or more accounts (each of which is an institutional “accredited
investor”) as to each of which we exercise sole investment discretion.

 

You and the Company are entitled to rely upon this
letter and are irrevocably authorized to produce this letter or a copy hereof
to any interested party in any administrative or legal proceedings or official
inquiry with respect to the matters covered hereby.

 

	
   

  	
   

  	
   

  
	
   

  	
   

  	
  [Insert Name of Accredited Investor]

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

Dated:                                  

 

D-2

 

EXHIBIT E

 

FORM
OF NOTATION OF GUARANTEE

 

For value received, each Guarantor (which term
includes any successor Person to a Guarantor under the Indenture) has, jointly
and severally, unconditionally guaranteed, to the extent set forth in the
Indenture and subject to the provisions in the Indenture dated as of October 3,
2006 (the “Indenture”) among Georgia Gulf
Corporation, (the “Company”), the Guarantors party
thereto and LaSalle Bank National Association, as trustee (the “Trustee”), (a) the due and punctual payment of the principal
of, premium and Additional Interest, if any, and interest on, the Notes,
whether at maturity, by acceleration, redemption or otherwise, the due and
punctual payment of interest on overdue principal of and interest on the Notes,
if any, if lawful, and the due and punctual performance of all other
obligations of the Company to the Holders or the Trustee all in accordance with
the terms of the Indenture and (b) in case of any extension of time of payment
or renewal of any Notes or any of such other obligations, that the same will be
promptly paid in full when due or performed in accordance with the terms of the
extension or renewal, whether at stated maturity, by acceleration or otherwise.
The obligations of the Guarantors to the Holders of Notes and to the Trustee
pursuant to the Note Guarantee and the Indenture are expressly set forth in
Article 10 of the Indenture and reference is hereby made to the Indenture for
the precise terms of the Note Guarantee.

 

Capitalized terms used but not defined herein have the
meanings given to them in the Indenture.

 

	
   

  	
  [NAME OF GUARANTOR(S)]

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
				

 

E-1

 

EXHIBIT F

 

FORM
OF SUPPLEMENTAL INDENTURE

TO BE DELIVERED BY SUBSEQUENT GUARANTORS

 

SUPPLEMENTAL INDENTURE (this “Supplemental
Indenture”), dated as of                                 ,
200   , among                                     
(the “Guaranteeing Subsidiary”), a subsidiary
of Georgia Gulf Corporation (or its permitted successor), a Delaware
corporation (the “Company”), the Company, the other
Guarantors (as defined in the Indenture referred to herein) and LaSalle Bank
National Association, as trustee under the Indenture referred to below (the “Trustee”).

 

W I T
N E S S E T H

 

WHEREAS, the Company has heretofore executed and
delivered to the Trustee an indenture (the “Indenture”),
dated as of October 3, 2006, providing for the issuance of 9.5% Senior Notes
due 2014 (the “Notes”);

 

WHEREAS, the Indenture provides that under certain
circumstances the Guaranteeing Subsidiary shall execute and deliver to the
Trustee a supplemental indenture pursuant to which the Guaranteeing Subsidiary
shall unconditionally guarantee all of the Company’s Obligations under the
Notes and the Indenture on the terms and conditions set forth therein and herein
(the “Note Guarantee”); and

 

WHEREAS, pursuant to Section 9.01 of the Indenture,
the Trustee is authorized to execute and deliver this Supplemental Indenture.

 

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

 

1.             CAPITALIZED
TERMS. Capitalized terms used herein without definition shall have the meanings
assigned to them in the Indenture.

 

2.             AGREEMENT
TO GUARANTEE. The Guaranteeing Subsidiary hereby agrees to provide an
unconditional Guarantee on the terms and subject to the conditions set forth in
the Note Guarantee and in the Indenture including but not limited to Article 10
thereof.

 

4.             NO
RECOURSE AGAINST OTHERS. No past, present or future director, officer,
employee, incorporator, stockholder or agent of the Guaranteeing Subsidiary, as
such, shall have any liability for any obligations of the Company or any
Guaranteeing Subsidiary under the Notes, any Note Guarantees, the Indenture or
this Supplemental Indenture or for any claim based on, in respect of, or by
reason of, such obligations or their creation. Each Holder of the Notes by
accepting a Note waives and releases all such liability. The waiver and release
are part of the consideration for issuance of the Notes. Such waiver may not be
effective to waive liabilities under the federal securities laws and it is the
view of the SEC that such a waiver is against public policy.

 

5.             NEW YORK
LAW TO GOVERN. THE INTERNAL LAW OF THE STATE OF NEW YORK SHALL GOVERN AND BE
USED TO CONSTRUE THIS SUPPLEMENTAL INDENTURE WITHOUT GIVING EFFECT TO
APPLICABLE PRINCIPLES OF CONFLICTS OF LAW TO THE EXTENT THAT THE APPLICATION OF
THE LAWS OF ANOTHER JURISDICTION WOULD BE REQUIRED THEREBY.

 

6.             COUNTERPARTS.
The parties may sign any number of copies of this Supplemental Indenture. Each
signed copy shall be an original, but all of them together represent the same
agreement.

 

F-1

 

7.             EFFECT
OF HEADINGS. The Section headings herein are for convenience only and shall not
affect the construction hereof.

 

8.             THE
TRUSTEE. The Trustee shall not be responsible in any manner whatsoever for or
in respect of the validity or sufficiency of this Supplemental Indenture or for
or in respect of the recitals contained herein, all of which recitals are made
solely by the Guaranteeing Subsidiary and the Company.

 

F-2

 

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

 

Dated:                               ,
20   

 

 

	
   

  	
  [GUARANTEEING SUBSIDIARY]

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
  GEORGIA GULF CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
  GEORGIA GULF CHEMICALS
  &

  VINYLS, LLC

  
	
   

  	
  GEORGIA GULF LAKE CHARLES, LLC

  
	
   

  	
  GREAT RIVER OIL & GAS CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  LASALLE BANK NATIONAL ASSOCIATION,

  
	
   

  	
  as Trustee

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Authorized Signatory

  
					

 

F-3

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00111-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00111-of-00352.parquet"}]]