Document:

Exhibit
4.4

 

EXECUTION
COPY

 

$151,000,000

 

PIH ACQUISITION
CO.

 

10 3/4% SENIOR
SUBORDINATED NOTES DUE 2013

 

PURCHASE AGREEMENT

 

September 16, 2005

 

CREDIT
SUISSE FIRST BOSTON LLC

JEFFERIES & COMPANY, INC.,

   c/o Credit Suisse First Boston LLC

     Eleven Madison Avenue 

       New York, New York 10010-3629

 

Dear Sirs:

 

1.                           Introductory. PIH Acquisition Co., a Delaware corporation (“PIH”), proposes, subject to the terms and
conditions stated herein, to issue and sell to the several initial purchasers
named in Schedule A hereto (the “Purchasers”)
U.S.$151,000,000 principal amount of their 10 3/4% Senior Subordinated Notes
Due 2013 (the “Offered Securities”)
to be issued under an indenture to be dated as of the Closing Date (as defined
below) (the “Indenture”) among the
Company, the Guarantors (as defined below) and Wells Fargo Bank, National
Association, as Trustee in a private transaction pursuant to Section 4(2) of
the United States Securities Act of 1933, as amended (the “Securities Act”).

 

As
part of the transactions described under the heading “The Transactions” in the
Offering Document (as defined below), PIH, an affiliate of Genstar Capital
Partners (“Genstar”) and the other
equity investors (collectively with Genstar, the “Investors”), pursuant to that certain Agreement and Plan of
Merger, dated July 16, 2005 (the “Merger
Agreement”), by and among Panolam Holdings II Co., PIH, Panolam
Industries Holdings, Inc. (“Holdings”)
and TC Group, L.L.C., will merge (the “Acquisition”)
with and into Holdings. Through a series of mergers (collectively, the “Mergers”), Holdings will ultimately be
merged with and into Panolam Industries International, Inc. (the “Company”) and the Company and its
subsidiaries will become direct or indirect wholly owned subsidiaries of Holdings.
Upon consummation of the Acquisition and the Mergers, the Company, by operation
of law, will assume all of PIH’s obligations under this Agreement, and the
Company will be the issuer of the Offered Securities.

 

The
Offered Securities will be, on the Closing Date (as defined below), guaranteed
(the “Guarantees”) on a senior
subordinated basis by each of the subsidiaries listed on Schedule B hereto
(collectively, the “Guarantors”).

 

The
holders of the Offered Securities will be entitled to the benefits of a
Registration Rights Agreement to be dated as of the Closing Date among the
Company, the Guarantors and the Purchasers (the “Registration Rights Agreement”), pursuant to which the Company
and the Guarantors agree to file a registration statement with the Securities
and Exchange Commission (the “Commission”)
registering the exchange and/or resale of the Offered Securities under the
Securities Act.

 

This
Agreement (including the counterparts to be executed concurrently with the
consummation of the Acquisition and the Mergers by the Company and the
Guarantors), the Indenture, the Offered Securities, the Guarantees, the
Exchange Securities (as defined in the Registration Rights Agreement), the
Guarantees of the Exchange Securities and the Registration Rights Agreement are
referred to in this Agreement collectively as the

 

 

“Operative Documents.” Those material agreements and
instruments relating to the Transactions (including, but not limited to, the
Merger Agreement, the agreements governing the Mergers, the New Credit Facility
(as defined in the Offering Document) and all agreements pursuant to which the
Equity Contribution (as defined in the Offering Document) is effected are
referred to in this Agreement collectively as the “Transaction Agreements.” The Operative Documents and the
Transaction Agreements are referred to in this Agreement collectively as the “Transaction Documents.”

 

References
in this Agreement to the “Issuer”
means, prior to the Acquisition and the Merger, PIH and, thereafter, the Company.

 

2.                           Representations and
Warranties of the Issuer and the Guarantors. Each of the Issuer and Guarantors, jointly and severally, represents and
warrants to, and agrees with, the several Purchasers that:

 

(a)                      A preliminary confidential offering circular
and a confidential offering circular relating to the Offered Securities to be
offered by the Purchasers have been prepared by the Issuer. Such preliminary
confidential offering circular (the “Preliminary
Offering Circular”) and confidential offering circular (the “Offering Circular”), as supplemented as of
the date of this Agreement, are hereinafter collectively referred to as the “Offering Document.” As of the date thereof,
the Preliminary Offering Circular did not include, and on the date of this
Agreement, the Offering Document does not include any untrue statement of a
material fact or omit to state any material fact necessary in order to make the
statements therein, in the light of the circumstances under which they were
made, not misleading. The preceding sentence does not apply to statements in or
omissions from the Offering Document based upon written information furnished
to the Company by the Purchasers through Credit Suisse First Boston LLC (“CSFB”) specifically for use therein, it
being understood and agreed that the only such information is that described as
such in Section 7(b) hereof.

 

(b)                     Each of PIH and the Company has been duly
incorporated and is an existing corporation in good standing under the laws of
the State of Delaware, with corporate power and authority to own its properties
and conduct its business as described in the Offering Document; and each of PIH
and the Company is duly qualified to do business as a foreign corporation in
good standing in all other jurisdictions in which its ownership or lease of
property or the conduct of its business requires such qualification, except
where failure to be so qualified or in good standing would not individually or
in the aggregate have a material adverse effect on the condition (financial or
other), business, properties or results of operations of each of PIH and the
Company and their subsidiaries taken as a whole (“Material Adverse Effect”).

 

(c)                      The entities listed on Schedule C hereto are
the only subsidiaries, direct or indirect, of the Company.

 

(d)                     Each subsidiary of the Company has been duly
incorporated and is an existing corporation in good standing under the laws of
the jurisdiction of its incorporation, with corporate power and authority to
own its properties and conduct its business as described in the Offering
Document; and each subsidiary of the Company is duly qualified to do business
as a foreign corporation in good standing in all other jurisdictions in which
its ownership or lease of property or the conduct of its business requires such
qualification, except where the failure to be so qualified or in good standing
would not individually or in the aggregate have a Material Adverse Effect; all
of the issued and outstanding capital stock of each subsidiary of the Company
has been duly authorized and validly issued and is fully paid and
nonassessable; the capital stock of each subsidiary owned by the Company,
directly or through subsidiaries, is owned free from liens, encumbrances and
defects except liens, encumbrances or defects to be in place on the Closing
Date in connection with the New Credit Facility.

 

(e)                      PIH has been formed by the Investors or their
affiliates in connection with the Acquisition. As of the date of this
Agreement, PIH is a wholly owned subsidiary of Panolam Holdings II Co. and, as
part of the Transactions, PIH ultimately will be merged with and into the

 

2

 

Company, with the Company as the surviving company. As
of the date of this Agreement, PIH holds no material assets and has no material
liabilities or other obligations, and for the period from the date of this
Agreement to the Closing Date, PIH will hold no material assets and will have
no material liabilities or other obligations, other than the Offered Securities
issued on the Closing Date and the other Transaction Documents to which it is
or will become a party. From the date of this Agreement to the Closing Date,
PIH will not be engaged in any significant business activities other than as
issuer of the Offered Securities and those incidental to closing the
Transactions.

 

(f)                        The Indenture has been duly authorized by PIH,
and immediately upon consummation of the Acquisition and the Mergers, will be
duly authorized by the Company and the Guarantors; the Offered Securities have
been duly authorized by PIH, and immediately upon consummation of the
Acquisition and the Mergers, will be duly authorized by the Company and the
Guarantors and when the Offered Securities are delivered and paid for pursuant
to this Agreement on the Closing Date (as defined below), the Indenture will
have been duly executed and delivered, such Offered Securities will have been
duly executed, authenticated, issued and delivered and will conform to the
description thereof contained in the Offering Document and the Indenture and
such Offered Securities will constitute valid and legally binding obligations
of PIH, and immediately upon consummation of the Mergers, the Company and the
Guarantors, as applicable, enforceable in accordance with their terms, subject
to bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium and
similar laws of general applicability relating to or affecting creditors’
rights and to general equity principles. On the Closing Date, the Indenture
will conform in all material respects as to legal matters to the description
thereof in the Offering Circular.

 

(g)                     On the Closing Date, the Indenture will
conform in all material respects to the requirements of the Trust Indenture Act
of 1939, as amended (the “Trust Indenture Act”),
and the rules and regulations of the Commission applicable to an indenture that
is qualified thereunder.

 

(h)                     The Exchange Securities will have been duly
authorized by PIH, and immediately upon consummation of the Merger, will be
duly authorized by the Company and the Guarantors; and when the Exchange
Securities are issued, executed and authenticated in accordance with the terms
of the Registered Exchange Offer (as defined in the Registration Rights
Agreement) and the Indenture, the Exchange Securities will be entitled to the
benefits of the Indenture and will be the valid and legally binding obligations
of the Company and the Guarantors, enforceable in accordance with their terms,
subject to bankruptcy, insolvency, fraudulent transfer, reorganization,
moratorium and similar laws of general applicability relating to or affecting
creditors’ rights and to general equity principles.

 

(i)                         Immediately upon consummation of the
Acquisition and the Mergers, the Guarantees of the Offered Securities of each
Guarantor will be duly authorized by such Guarantor. The Guarantee by each
Guarantor of the Offered Securities, when issued will have been duly executed
and delivered by such Guarantor and will conform to the description thereof
contained in the Offering Circular. When the Guarantees are executed and
delivered in accordance with the terms of the Indenture and when the Offered
Securities have been issued, authenticated in accordance with the terms of the
Indenture, the Guarantee of each Guarantor with respect to the Offered
Securities will be the valid and legally binding obligation of such Guarantor,
enforceable in accordance with their terms, subject to bankruptcy, insolvency,
fraudulent transfer, reorganization, moratorium and similar laws of general applicability
relating to or affecting creditors’ rights and to general equity principles.

 

(j)                         Immediately upon consummation of the
Acquisition and the Mergers, the Guarantee to be endorsed on the Exchange
Securities by each Guarantor will be duly authorized by such Guarantor; and
when issued, will have been duly executed and delivered by each such Guarantor
and will conform in all material respects to the description thereof contained
in the Offering Circular. When the Exchange Securities have been issued, executed
and authenticated in accordance with the terms of the Registered Exchange Offer
and the Indenture, the Guarantees of

 

3

 

each Guarantor with respect thereto will constitute
valid and legally binding obligations of such Guarantor, enforceable in
accordance with their terms, subject to bankruptcy, insolvency, fraudulent
transfer, reorganization, moratorium and similar laws of general applicability
relating to or affecting creditors’ rights and to general equity principles.

 

(k)                      No consent,
approval, authorization, or order of, or filing with, any governmental agency
or body or any court is required for the consummation of the transactions
contemplated by this Agreement and the Registration Rights Agreement in
connection with the issuance and sale of the Offered Securities and the
Exchange Securities (as defined in the Registration Rights Agreement) or the
issuance of the Guarantees or the guarantees related to the Exchange Securities
by the Guarantors, the Company or PIH, as applicable, or the other transactions
contemplated by the Transaction Documents, except (i) such as may be required
under the blue sky or securities laws of any jurisdiction in which the
Securities or the Exchange Securities are offered and sold and (ii) for the
order of the Commission declaring the Exchange Offer Registration Statement or
the Shelf Registration Statement (each as defined in the Registration Rights
Agreement) effective.

 

(l)                         The
execution, delivery and performance by each of PIH, the Company and the
Guarantors (each to the extent a party thereto) of the Transaction Documents
and compliance with the terms and provisions thereof and the consummation of
the transactions contemplated thereby (including the issue and sale of the
Offered Securities) will not result in a breach or violation of any of the
terms and provisions of, or constitute a default under (i) any statute, rule,
regulation or order of any governmental agency or body or any court, domestic
or foreign, having jurisdiction over PIH, the Company or the Guarantors or any
of their properties, (ii) any agreement or instrument to which PIH, the Company
or the Guarantors is a party or by which PIH, the Company or the Guarantors is
bound or to which any of the properties of PIH, the Company or the Guarantors
is subject or (iii) the charter or by-laws of PIH, the Company or the
Guarantors, except, in the case of clause (i)
and (ii), such breaches, violations or defaults that would not
individually or in the aggregate have a Material Adverse Effect, and each of
PIH, the Company and the Guarantors has full corporate power and authority to
authorize, issue and sell the Offered Securities as contemplated by this
Agreement and the Exchange Securities and provide their respective Guarantees
as contemplated by this Agreement and the Registration Rights Agreement.

 

(m)                   Except as
described in the Offering Circular, there are no contracts, agreements or
understandings between the Company or any Guarantor and any person granting
such person the right to require the Company or any Guarantor to file a
registration statement under the Securities Act with respect to any securities
of the Company or any Guarantor or to require the Company or any Guarantor to
include such securities with the Offered Securities and Guarantees registered
pursuant to any Registration Statement other than as contemplated by the
Registration Rights Agreement.

 

(n)                     This
Agreement has been duly authorized, executed and delivered by PIH and,
immediately upon consummation of the Acquisition and the Mergers, will be duly
authorized, executed and delivered by the Company and the Guarantors.

 

(o)                     The
Registration Rights Agreement has been duly authorized by PIH and, immediately
upon the consummation of the Acquisition and the Mergers, will have been duly
executed and delivered by the Company and each of the Guarantors. When the
Registration Rights Agreement has been duly executed and delivered, the
Registration Rights Agreement will constitute a valid and legally binding obligation
of PIH and, immediately upon consummation of the Acquisition and Mergers, the
Company and each of the Guarantors, enforceable against PIH in accordance with
its terms, subject to bankruptcy, insolvency, fraudulent transfer,
reorganization, moratorium and similar laws of general applicability relating
to or affecting creditors’ rights and to general equity principles. On the
Closing Date, the Registration Rights Agreement will conform in all material
respects as to legal matters to the description thereof in the Offering
Circular.

 

4

 

(p)                     Each
Transaction Agreement has been, or as of the Closing Date will have been, duly
authorized, executed and delivered by PIH, the Company, the Guarantors and
their respective subsidiaries (each to the extent a party thereto). Each
Transaction Agreement conforms or will conform in all material respects to the
descriptions thereof contained in the Offering Circular, and, assuming the due
authorization, execution and delivery thereof by the other parties thereto each
Transaction Agreement constitutes or will constitute a valid and legally
binding obligation of each of PIH, the Company, the Guarantors and their
respective subsidiaries (each to the extent a party thereto), enforceable
against such party in accordance with its terms, subject to bankruptcy,
insolvency, fraudulent transfer, reorganization, moratorium and similar laws of
general applicability relating to or affecting creditors’ rights and to general
equity principles.

 

(q)                     Except as
disclosed in the Offering Circular, PIH, the Company and the Company’s
subsidiaries have good and marketable title to all real properties and good
title to all other properties and assets owned by them, in each case free from
liens, encumbrances and defects that would materially affect the value thereof
or materially interfere with the use made or to be made thereof by them; and
except as disclosed in the Offering Document, PIH, the Company and the Company’s
subsidiaries hold any leased real or personal property under valid and
enforceable leases with no exceptions that would materially interfere with the
use made or to be made thereof by them.

 

(r)                        PIH, the
Company and the Company’s subsidiaries possess adequate certificates,
authorities or permits issued by appropriate governmental agencies or bodies
necessary to conduct the business now operated by them and have not received
any notice of proceedings relating to the revocation or modification of any
such certificate, authority or permit that, if determined adversely to PIH, the
Company and the Company’s subsidiaries, would individually or in the aggregate
have a Material Adverse Effect.

 

(s)                      No labor
dispute with the employees of PIH, the Company or any of the Company’s
subsidiaries exists or, to the knowledge of PIH or the Company, is imminent
that would be reasonably likely to have a Material Adverse Effect.

 

(t)                        PIH, the
Company and the Company’s subsidiaries own, possess or can acquire on
reasonable terms, adequate trademarks, trade names and other rights to
inventions, know-how, patents, copyrights, confidential information and other
intellectual property (collectively, “intellectual
property  rights”)
necessary to conduct the business now operated by them, or presently employed
by them, and have not received any written notice of infringement of or
conflict with asserted rights of others with respect to any intellectual
property rights that, if determined adversely to PIH, the Company or any of the
Company’s subsidiaries, would individually or in the aggregate have a Material
Adverse Effect.

 

(u)                     Except as
disclosed in the Offering Circular, none of PIH, the Company or any of the
Company’s subsidiaries is in violation of any statute, any rule, regulation,
decision or order of any governmental agency or body or any court, domestic or
foreign, relating to the use, disposal or release of hazardous or toxic
substances or relating to the protection or restoration of the environment or
human exposure to hazardous or toxic substances (collectively, “environmental laws”), owns or operates any
real property contaminated with any substance that is subject to any
environmental laws, is liable for any off-site disposal or contamination
pursuant to any environmental laws, or is subject to any claim relating to any
environmental laws, which violation, contamination, liability or claim would
individually or in the aggregate have a Material Adverse Effect; and none of
PIH, the Company or any of the Company’s subsidiaries is aware of any pending
investigation that would lead to such a claim.

 

(v)                     Except as
disclosed in the Offering Circular, there are no pending actions, suits or
proceedings against or affecting PIH, the Company or any of the Company’s
subsidiaries or any of their respective properties that if determined adversely
to PIH, the Company or any of the Company’s Subsidiaries, would individually or
in the aggregate have a Material Adverse Effect,

 

5

 

or would materially and adversely affect the ability
of PIH, the Company or any of the Company’s subsidiaries to perform its
obligations under the Indenture, this Agreement or the Registration Rights
Agreement, and to the Company’s knowledge, no such actions, suits or
proceedings are threatened.

 

(w)                   The financial
statements included in the Offering Circular present fairly the financial
position of Holdings and its consolidated subsidiaries as of the dates shown
and their results of operations and cash flows for the periods shown, and such
financial statements have been prepared in conformity with the generally
accepted accounting principles in the United States applied on a consistent
basis except as disclosed in the Offering Circular; and the assumptions used in
preparing the pro forma financial statements included in the Offering Circular
provide a reasonable basis for presenting the significant effects directly
attributable to the Transactions or events described therein and the related
pro forma adjustments give appropriate effect to those assumptions, and the pro
forma columns therein reflect the proper application of those adjustments to
the corresponding historical financial statement amounts, and except as
disclosed in the Offering Circular in “Risk Factors—Risks Relating to Our
Business—The unaudited pro forma financial data contained in this offering
circular have been prepared without giving effect to the requirement that we
allocate the purchase price to be paid in the Acquisition to our assets and
liabilities based on their fair value, and are subject to further review and
modification.” and “Unaudited Pro Forma Consolidated Financial Data”, the Pro
Forma Financial Information complies as to form in all material respects with
the applicable accounting requirements of rule 11-02 of Regulation S-X, and the
pro forma adjustments have been properly applied to the historical amounts in
the compilation of the Pro Forma Financial Information.

 

(x)                       Except as
disclosed in the Offering Circular, since the date of the latest audited
financial statements included in the Offering Circular there has been no
material adverse change, nor any development or event involving a prospective
material adverse change, in the condition (financial or other), business,
properties or results of operations of the Company and its subsidiaries taken
as a whole, and, except as disclosed in or contemplated by the Offering
Circular, there has been no dividend or distribution of any kind declared, paid
or made by the Company on any class of its capital stock.

 

(y)                     None of PIH,
the Company or the Guarantors is an open-end investment company, unit
investment trust or face-amount certificate company that is or is required to
be registered under Section 8 of the United States Investment Company Act of
1940 (the “Investment Company Act”);
and none of PIH, the Company or the Guarantors is and, after giving effect to
the offering and sale of the Offered Securities and the application of the
proceeds thereof as described in the Offering Circular, will be an “investment
company” as defined in the Investment Company Act.

 

(z)                       The
statistical and market-related data in the Offering Circular are based on or
are derived from sources that PIH, the Company and the Guarantors believe are
reliable and accurate.

 

(aa)                No securities of
the same class (within the meaning of Rule 144A(d)(3) under the Securities Act)
as the Offered Securities are listed on any national securities exchange
registered under Section 6 of the United States Securities Exchange Act of 1934
(the “Exchange Act”) or quoted in
a U.S. automated inter-dealer quotation system.

 

(bb)              Assuming the
accuracy of the Purchasers’ representations and undertakings set forth in
Section 4 hereof, the offer and sale of the Offered Securities in the manner
contemplated by this Agreement will be exempt from the registration
requirements of the Securities Act by reason of Section 4(2) thereof and
Regulation S under the Securities Act (“Regulation
S”) thereunder; and it is not necessary to qualify an indenture in
respect of the Offered Securities under the Trust Indenture Act.

 

6

 

(cc)                None of PIH, the
Company, any Guarantor or any of their respective affiliates, nor to their
knowledge, any person acting on its or their behalf (other than the Purchasers,
as to whom no representation is made) (i) has, within the six-month period
prior to the date hereof, offered or sold in the United States or to any U.S.
person (as such terms are defined in Regulation S) the Offered Securities or
any security of the same class or series as the Offered Securities or (ii) has
offered or will offer or sell the Offered Securities (A) in the United States
by means of any form of general solicitation or general advertising within the
meaning of Rule 502(c) under the Securities Act or (B) with respect to any such
securities sold in reliance on Rule 903 of Regulation S, by means of any
directed selling efforts within the meaning of Rule 902(c) of Regulation S.
PIH, the Company, the Guarantors and their respective affiliates and any person
acting on its or their behalf (other than the Purchasers, as to whom no
representation is made) have complied and will comply with the offering
restrictions requirement of Regulation S. The Company has not entered and will
not enter into any contractual arrangement with respect to the distribution of
the Offered Securities except for this Agreement and the Registration Rights
Agreement.

 

(dd)              None of PIH, the
Company or any of the Company’s subsidiaries nor any agent thereof acting on
the behalf of them (other than the Purchasers, as to whom no representation is
made) has taken, and none of them will take, any action that might cause this
Agreement or the issuance or sale of the Offered Securities to violate
Regulation T, Regulation U or Regulation X of the Board of Governors of the
Federal Reserve System.

 

(ee)                No “nationally
recognized statistical rating organization” as such term is defined for
purposes of Rule 436(g)(2) under the Securities Act (i) has imposed (or has
informed the Company or any Guarantor that it is considering imposing) any
condition (financial or otherwise) on the Company’s or any Guarantor’s
retaining any rating assigned to the Company or any Guarantor, any securities
of the Company or any Guarantor or (ii) has indicated to the Company or any
Guarantor that it is considering (a) the downgrading, suspension, or withdrawal
of, or any review for a possible change that does not indicate the direction of
the possible change in, any rating so assigned or (b) any change in the outlook
for any rating of the Company, any Guarantor or any securities of the Company
or any Guarantor.

 

(ff)                    No form of
general solicitation or general advertising (as defined in Regulation D under
the Securities Act) was used by PIH, the Company, the Guarantors or any of
their respective representatives (other than the Purchasers, as to whom PIH,
the Company and the Guarantors make no representation) in connection with the
offer and sale of the Offered Securities contemplated hereby, including, but
not limited to, articles, notices or other communications published in any
newspaper, magazine, or similar medium or broadcast over television or radio,
or any seminar or meeting whose attendees have been invited by any general
solicitation or general advertising. No securities of the same class as the
Offered Securities have been issued and sold by the Company within the
six-month period immediately prior to the date hereof.

 

(gg)              None of PIH, the
Company, the Guarantors nor any of their respective affiliates or any person
acting on its or their behalf (other than the Purchasers, as to whom the
Company and the Guarantors make no representation) has engaged or will engage
in any directed selling efforts within the meaning of Regulation S with respect
to the Offered Securities or the Guarantees.

 

(hh)              Assuming the
accuracy of the Purchasers’ representations and undertakings set forth in
Section 4 hereof, the Offered Securities offered and sold in reliance on
Regulation S have been and will be offered and sold only in offshore transactions.

 

(ii)                      The sale of
the Offered Securities pursuant to Regulation S is not part of a plan or scheme
to evade the registration provisions of the Securities Act.

 

(jj)                      No
registration under the Securities Act of the Offered Securities or the Guarantees
is required for the sale of the Offered Securities and the Guarantees to the
Purchasers as contemplated hereby or for the Exempt Resales assuming the
accuracy of the Purchasers’

 

7

 

representations set forth in Section 4 hereof, and it
is not necessary to qualify an indenture in respect of the Offered Securities
under the Trust Indenture Act.

 

(kk)                None of PIH, the
Company or any of the Company’s subsidiaries is in violation of its respective
charter or by-laws or in default in the performance of any obligation,
agreement, covenant or condition contained in any indenture, loan agreement,
mortgage, lease or other agreement or instrument to which such party or any of
its subsidiaries is a party or by which such party or any of its subsidiaries
or their respective property is bound, except for such violations or defaults
as would not individually or in the aggregate have a Material Adverse Effect.

 

3.                           Purchase, Sale and Delivery of Offered Securities.
On the basis of the representations, warranties and agreements herein
contained, but subject to the terms and conditions herein set forth, the Issuer
agrees to sell to the Purchasers, and the Purchasers agree, severally and not
jointly, to purchase from the Issuer, at a purchase price of 96.717% of the
principal amount thereof plus accrued interest from September 30, 2005 to the
Closing Date the principal amounts of Offered Securities set forth opposite the
names of the several Purchasers in Schedule A hereto.

 

The Issuer will deliver
against payment of the purchase price the Offered Securities to be offered and
sold by the Purchasers in reliance on Regulation S in the form of one or more
permanent global Securities in registered form (the “Regulation S Global Securities”) that will be deposited with
the Trustee as custodian for The Depository Trust Company (“DTC”) and registered in the name of Cede
& Co., as nominee for DTC. The Issuer will deliver against payment of the
purchase price the Offered Securities to be offered and sold by the Purchasers
in reliance on Rule 144A (“Rule 144A”)
under the Securities Act in the form of one or more permanent global securities
in definitive form (the “144A Securities”),
and together with the Regulation S Global Securities, the “Restricted Global Securities”) deposited
with the Trustee as custodian for DTC and registered in the name of Cede &
Co., as nominee for DTC. The Regulation S Global Securities and the 144A
Securities shall be assigned separate CUSIP numbers. Interests in any Global
Securities will be held only in book-entry form through DTC, as the case may
be, except in the limited circumstances described in the Offering Circular.

 

Payment for the Offered
Securities shall be made by the Purchasers in Federal (same day) funds by wire
transfer to an account at a bank acceptable to CSFB drawn to the order of the
Issuer at the office of Weil, Gotshal & Manges LLP, 767 Fifth Avenue, New
York, New York 10153 at 10:00 A.M. (New York time), on September 30, 2005 or at
such other time not later than seven full business days thereafter as CSFB and
the Issuer determine, such time being herein referred to as the “Closing Date”, against delivery to the
Trustee as custodian for DTC of the Global Securities representing all of the
Global Securities. The Global Securities will be made available for checking at
the above office of Weil, Gotshal & Manges LLP at least 24 hours prior to
the Closing Date.

 

4.                           Representations by Purchasers; Resale by Purchasers.

 

(a)                      Each
Purchaser severally represents and warrants to the Issuer that it is an “accredited
investor” within the meaning of Regulation D under the Securities Act.

 

(b)                     Each
Purchaser severally acknowledges that the Offered Securities have not been
registered under the Securities Act and may not be offered or sold within the
United States or to, or for the account or benefit of, U.S. persons except in
accordance with Regulation S or pursuant to an exemption from the registration
requirements of the Securities Act. Each Purchaser severally represents and
agrees that it has offered and sold the Offered Securities and will offer and
sell the Offered Securities (i) as part of its distribution at any time and
(ii) otherwise until 40 days after the later of the commencement of the
offering and the Closing Date, only to those it reasonably believes to be “qualified
institutional buyers” (as defined in Rule 144A) and in accordance with Rule
144A or in accordance with Rule 903 under the Securities Act. Accordingly,
neither such Purchaser nor its affiliates, nor any persons acting on its or
their behalf, have engaged or will engage in any directed selling efforts with
respect to the Offered Securities, and such Purchaser, its affiliates and all
persons acting on its or their behalf have complied and will comply with the
offering restrictions requirement of Regulation S. Each Purchaser severally
agrees that, at or prior to confirmation of sale of the Offered Securities,
other than a sale pursuant

 

8

 

to Rule 144A, such Purchaser will have sent to each
distributor, dealer or person receiving a selling concession, fee or other
remuneration that purchases the Offered Securities from it during the
restricted period a confirmation or notice to substantially the following
effect:

 

“The Securities covered hereby have not been
registered under the U.S. Securities Act of 1933 (the “Securities Act”) and may
not be offered or sold within the United States or to, or for the account or
benefit of, U.S. persons (i) as part of their distribution at any time or (ii)
otherwise until 40 days after the later of the date of the commencement of the
offering and the closing date, except in either case in accordance with
Regulation S (or Rule 144A if available) under the Securities Act. Terms used
above have the meanings given to them by Regulation S.”

 

Terms used in this subsection (b) have the meanings
given to them by Regulation S.

 

(c)                      Each
Purchaser severally agrees that it and each of its affiliates has not entered
and will not enter into any contractual arrangement with respect to the
distribution of the Offered Securities except for this Agreement and any such
arrangements with the other Purchasers or affiliates of the other Purchasers or
with the prior written consent of the Company.

 

(d)                     Each
Purchaser severally agrees that it and each of its affiliates will not offer or
sell the Offered Securities in the United States by means of any form of
general solicitation or general advertising within the meaning of Rule 502(c)
under the Securities Act, including, but not limited to (i) any advertisement,
article, notice or other communication published in any newspaper, magazine or
similar media or broadcast over television or radio or (ii) any seminar or
meeting whose attendees have been invited by any general solicitation or
general advertising. Each Purchaser severally agrees, with respect to resales
made in reliance on Rule 144A of any of the Offered Securities, to deliver
either with the confirmation of such resale or otherwise prior to settlement of
such resale a notice to the effect that the resale of such Offered Securities
has been made in reliance upon the exemption from the registration requirements
of the Securities Act provided by Rule 144A.

 

(e)                      Each of the
Purchasers severally represents and agrees that (i) it has not offered or sold
and prior to the expiry of a period of six months from the Closing Date, will
not offer or sell any Offered Securities to persons in the United Kingdom
except to persons whose ordinary activities involve them in acquiring, holding,
managing or disposing of investments (as principal or agent) for the purposes
of their businesses or otherwise in circumstances which have not resulted and
will not result in an offer to the public in the United Kingdom within the
meaning of the Public Offers of Securities Regulations 1995; (ii) it has only
communicated or caused to be communicated and will only communicate or cause to
be communicated any invitation or inducement to engage in investment activity
(within the meaning of section 21 of the Financial Services and Markets Act
2000 (the “FSMA”)) received by it in connection with the issue or sale of any
Offered Securities in circumstances in which section 21(1) of the FSMA does not
apply to the Company and any Guarantor; and (iii) it has complied and will
comply with all applicable provisions of the FSMA with respect to anything done
by it in relation to the Offered Securities in, from or otherwise involving the
United Kingdom.

 

5.                           Certain Agreements of the Issuer and the Guarantors.
Each of the Issuer and the Guarantors, jointly and severally, agrees with the
several Purchasers that:

 

(a)                      The Issuer
will advise CSFB promptly of any proposal to amend or supplement the Offering
Document and will not effect such amendment or supplementation without CSFB’s
consent, such consent not to be unreasonably withheld or delayed. If, at any
time prior to the completion of the resale of the Offered Securities by the
Purchasers any event occurs as a result of which the Offering Document as then
amended or supplemented would include an untrue statement of a material fact or
omit to state any material fact necessary in order to make the

 

9

 

statements therein, in the light of the circumstances
under which they were made, not misleading, the Company promptly will notify
CSFB of such event and promptly will prepare, at its own expense, an amendment
or supplement which will correct such statement or omission. Neither CSFB’s
consent to, nor the Purchasers’ delivery to offerees or investors of, any such
amendment or supplement shall constitute a waiver of any of the conditions set
forth in Section 6.

 

(b)                     The Issuer
will furnish to CSFB copies of any Preliminary Offering Circular, the Offering
Circular and all amendments and supplements to such documents, in each case as
soon as available and in such quantities as CSFB requests and the Issuer will
furnish to CSFB on the date hereof three copies of the Offering Document signed
by a duly authorized officer of the Issuer, one of which will include the
independent accountants’ reports therein manually signed by such independent
accountants. At any time when the Issuer is not subject to Section 13 or 15(d)
of the Exchange Act, the Issuer will promptly furnish or cause to be furnished
upon request of CSFB, the other Purchasers or holders and prospective
purchasers of the Offered Securities copies of the information required to be
delivered to holders and prospective purchasers of the Offered Securities
pursuant to Rule 144A(d)(4) under the Securities Act (or any successor
provision thereto) in order to permit compliance with Rule 144A in connection
with resales by such holders of the Offered Securities. The Issuer will pay the
expenses of printing and distributing to the Purchasers all such documents.

 

(c)                      The Issuer
will arrange for the qualification of the Offered Securities for sale and the
determination of their eligibility for investment under the laws of such
jurisdictions in the United States and Canada as CSFB designates and will
continue such qualifications in effect so long as required for the resale of
the Offered Securities by the Purchasers, provided that the Issuer will not be
required to qualify as a foreign corporation or to file a general consent to
service of process in any such state or province.

 

(d)                     To the extent
not publicly available on the Commission’s website, during the period of five
years hereafter, the Issuer will furnish, upon request, to CSFB and each of the
other Purchasers, as soon as practicable after the end of each fiscal year, a
copy of their annual reports to stockholders for such year.

 

(e)                      During the
period of two years after the Closing Date, the Issuer will, upon request,
furnish to CSFB, each of the other Purchasers and any holder of Offered
Securities a copy of the restrictions on transfer applicable to the Offered
Securities.

 

(f)                        During the
period of two years after the Closing Date, the Issuer will not, and will not
permit any of its affiliates (as defined in Rule 144 under the Securities Act)
to, resell any of the Offered Securities that have been reacquired by it unless
such Offered Securities are sold in a transaction registered under the
Securities Act.

 

(g)                     During the
period of two years after the Closing Date, the Issuer will not be or become,
an open-end investment company, unit investment trust or face-amount
certificate company that is or is required to be registered under Section 8 of
the Investment Company Act.

 

(h)                     The Issuer
and the Guarantors will, jointly and severally, pay all expenses incidental to
the performance of their obligations under the Operative Documents, including
(i) the fees and expenses of the Trustee and its professional advisors; (ii)
all expenses in connection with the execution, issue, authentication, packaging
and initial delivery of the Offered Securities and, as applicable, the Exchange
Securities, the preparation and printing of this Agreement, the Registration
Rights Agreement, the Offered Securities, the Offering Document and amendments
and supplements thereto, and any other document relating to the issuance,
offer, sale and delivery of the Offered Securities and as applicable the
Exchange Securities; (iii) the cost of qualifying the Offered Securities for
trading in The PortalSM Market and any expenses incidental thereto; (iv) the
cost of any advertising approved by the Company in connection with the issue of
the Offered Securities; (v) for any expenses (including reasonable fees and
disbursements of counsel) incurred

 

10

 

in connection with qualification of the Offered
Securities or the Exchange Securities for sale under the laws of such
jurisdictions in the United States and Canada as CSFB designates and the
printing of memoranda relating thereto; (vi) for any fees charged by investment
rating agencies for the rating of the Offered Securities or the Exchange
Securities and (vii) for expenses incurred in distributing Preliminary Offering
Circulars and the Offering Circular (including any amendments and supplements
thereto) to the Purchasers. The Issuer and the Company will also pay or
reimburse the Purchasers (to the extent incurred by them) for all travel
expenses of the Issuer’s and Company’s officers and employees and any other
expenses of the Issuer and the Company in connection with attending or hosting
meetings with prospective purchasers of the Offered Securities from the
Purchasers; provided, however the Purchasers shall pay 50% of the cost relating
to a chartered aircraft to be used by the Purchasers and the Issuers in
connection with meetings with prospective purchasers.

 

(i)                         In connection with the offering, until CSFB
shall have notified the Issuer and the other Purchasers of the completion of
the resale of the Offered Securities, neither the Issuer nor any of their
affiliates has or will, either alone or with one or more other persons, bid for
or purchase for any account in which it or any of its affiliates has a
beneficial interest any Offered Securities or attempt to induce any person to
purchase any Offered Securities; and neither it nor any of its affiliates will
make bids or purchases for the purpose of creating actual, or apparent, active
trading in, or of raising the price of, the Offered Securities.

 

(j)                         For a period of 180 days after the date of the
initial offering of the Offered Securities by the Purchasers, neither the
Issuer nor any Guarantor will offer, sell, contract to sell, pledge or
otherwise dispose of, directly or indirectly, or file with the Commission a
registration statement under the Securities Act (other than as contemplated by
the Registration Rights Agreement and as provided for in the Offering Document)
relating to, any United States dollar-denominated debt securities issued or
guaranteed by the Issuer or any Guarantor and having a maturity of more than
one year from the date of issue (other than the Exchange Securities or
Guarantees thereof), or publicly disclose the intention to make any such offer,
sale, pledge, disposition or filing, without the prior written consent of CSFB.
Neither the Issuer nor any Guarantor will at any time offer, sell, contract to
sell, pledge or otherwise dispose of, directly or indirectly, any securities
under circumstances where such offer, sale, pledge, contract or disposition
would cause the exemption afforded by Section 4(2) of the Securities Act or the
safe harbor of Regulation S thereunder to cease to be applicable to the offer
and sale of the Offered Securities.

 

(k)                      The Issuer will use the net proceeds from the
sale of the Offered Securities in the manner described in the Offering Document
under the caption “Use of Proceeds.”

 

6.                           Conditions of the
Obligations of the Purchasers. The
obligations of the several Purchasers to purchase and pay for the
Offered Securities will be subject to the accuracy of the representations and
warranties on the part of the Issuer and the Guarantors herein, to the accuracy
of the statements of officers of the Issuer and any Guarantor made pursuant to
the provisions hereof, to the performance by the Issuer and each Guarantor of
their obligations hereunder and to the following additional conditions
precedent:

 

(a)                      The
Purchasers shall have received a letter, dated the date of this Agreement, of
Deloitte & Touche LLP, in form and substance satisfactory to the
Purchasers, concerning certain financial information for the fiscal year 2004
with respect to Holdings set forth in the Offering Document.

 

(b)                     The
Purchasers shall have received a letter, dated the date of this Agreement, of
Ernst & Young LLP, in form and substance satisfactory to the Purchasers,
concerning certain financial information for the fiscal years 2000, 2001, 2002
and 2003 with respect to Holdings set forth in the Offering Document.

 

11

 

(c)                      Subsequent
to the execution and delivery of this Agreement, there shall not have occurred
(i) any change, or any development or event involving a prospective change, in
the condition (financial or other), business, properties or results of operations
of the Company and its subsidiaries taken as one enterprise that, in the
judgment of a majority in interest of the Purchasers, including CSFB, is
material and adverse and makes it impractical or inadvisable to proceed with
completion of the offering or the sale of and payment for the Offered
Securities; (ii) any downgrading in the rating of any debt securities of the
Company or the Guarantors by any “nationally recognized statistical rating
organization” (as defined for purposes of Rule 436(g) under the Securities
Act), or any public announcement that any such organization has under
surveillance or review its rating of any debt securities of the Company or the
Guarantors (other than an announcement with positive implications of a possible
upgrading, and no implication of a possible downgrading, of such rating) or any
announcement that the Company or the Guarantors have been placed on negative
outlook; (iii) any change in U.S. or international financial, political or
economic conditions or currency exchange rates or exchange controls as would,
in the judgment of a majority in interest of the Purchasers, including CSFB, be
likely to prejudice materially the success of the proposed issue, sale or
distribution of the Offered Securities, whether in the primary market or in
respect of dealings in the secondary market; (iv) any material suspension or
material limitation of trading in securities generally on the New York Stock
Exchange or any setting of minimum prices for trading on such exchange, or any
suspension of trading of any securities of the Company or the Guarantors on any
exchange or in the over-the-counter market; (v) any banking moratorium declared
by U.S. Federal or New York authorities; (vi) any major disruption of
settlements of securities or clearance services in the United States or (vii)
any attack on, outbreak or escalation of hostilities or act of terrorism
involving the United States, any declaration of war by Congress or any other
national or international calamity or emergency if, in the judgment of a
majority in interest of the Purchasers, including CSFB, the effect of any such
attack, outbreak, escalation, act, declaration, calamity or emergency makes it
impractical or inadvisable to proceed with completion of the offering or sale
of and payment for the Offered Securities.

 

(d)                     The
Purchasers shall have received an opinion dated the Closing Date, of Weil,
Gotshal & Manges LLP counsel for the Company in the form set forth on
Exhibit A hereto.

 

(e)                      The
Purchasers shall have received an opinion, dated the Closing Date, of Jeffrey
Muller, Vice President, Human Resources and General Counsel for the Company, in
the form set forth on Exhibit B hereto.

 

(f)                        The
Purchasers shall have received from O’Melveny &
Myers LLP, counsel for the Purchasers, such opinion or opinions,
dated the Closing Date, with respect to the incorporation of PIH, the Company
and the Guarantors, with respect to the validity of the Offered Securities, the
Guarantee, the Offering Document, the exemption from registration for the offer
and sale of the Offered Securities by the Issuer to the several Purchasers and
the resales by the several Purchasers as contemplated hereby and other related
matters as CSFB may require, and the Issuer and Guarantors shall have furnished
to such counsel such documents as they request for the purpose of enabling them
to pass upon such matters.

 

(g)                     The
Purchasers shall have received a certificate, dated the Closing Date, of the
President or any Vice President and a principal financial or accounting officer
of the Company in which such officers, to the best of their knowledge after
reasonable investigation, shall state that the representations and warranties
of the Company in this Agreement, insofar as they relate to the Company, are
true and correct, that the Company has complied with all agreements and
satisfied all conditions on its part to be performed or satisfied hereunder at
or prior to the Closing Date, and that, subsequent to the date of the most
recent financial statements in the Offering Document there has been no material
adverse change, nor any development or event involving a prospective material
adverse change, in the condition (financial or other), business, properties or
results of operations of the Company and its subsidiaries taken as a whole
except as set forth in the Offering Document or as described in such
certificate.

 

12

 

(h)                     The
Purchasers shall have received a certificate, dated the Closing Date, of the President or any Vice President and a principal
financial or accounting officer of PIH in which such officers, to the
best of their knowledge after reasonable investigation, shall state that the
representations and warranties of PIH in this Agreement are true and correct,
that the Company has complied with all agreements and satisfied all conditions
on its part to be performed or satisfied
hereunder at or prior to the Closing Date.

 

(i)                         The Issuer and the Guarantors shall deliver to the
Purchasers, among other documents and certificates as the Purchasers
shall reasonably request, Secretary’s Certificates, dated the Closing Date,
reasonably satisfactory to the Purchasers that shall include the following documents with respect to the Company and each of
the Guarantors: (a) certificates of incorporation, (b) by-laws, (c)
resolutions of the Board of Directors of each entity, (d) certificates of good standing from the jurisdiction of
incorporation or organization of each such entity and (e) certificates
of good standing and/or qualifications to do business as a foreign corporation
in such jurisdictions as the Purchasers’
reasonably request.

 

(j)                         The Purchasers shall have received a letter, dated
the Closing Date, of Deloitte & Touche LLP which meets the
requirements of subsection (a) of this Section, except that the specified date
referred to in such subsection will be a date not more than three days prior to
the Closing Date for the purposes of this subsection.

 

(k)                      On or prior to the Closing Date, the Issuer and
the Guarantors shall have executed the Registration Rights Agreement and
the Purchasers shall have received a copy thereof;
the Issuer, the Guarantors and the Trustee shall have entered into the
Indenture and the Purchasers shall have received copies, conformed as
executed, thereof.

 

(l)                         The Company and the Guarantors shall have executed
counterparts of this Agreement and the Purchasers shall have received
copies, conformed as executed, thereof.

 

(m)                   On or prior to
the Closing Date, the Issuer shall have provided to the Purchasers and counsel
to the Purchasers true and correct executed copies of all Transaction Documents
executed and delivered on or prior to such date (including but not limited to
all legal opinions delivered in connection
therewith).

 

(n)                     On the Closing Date, the Acquisition, the Mergers
and the related transactions (including
borrowings under the New Credit Facility and the Equity Contribution) shall
have been consummated as described
in the Offering Document.

 

(o)                     The New
Credit Facility (as defined in the Offering Document), which contains terms similar in all material respects to those
described in the Offering Document, shall have become effective in
accordance with its terms and there shall exist at and as of the Closing Date (after giving effect to the Transactions
contemplated by this Agreement and the application of the proceeds
received by the Issuers from the sale of the Offered Securities) no condition
that would constitute an Event of Default
(as defined in the Credit Agreement) under the Credit Agreement.

 

PIH, the Company and the Guarantors will furnish the Purchasers with
such conformed copies of such opinions, certificates, letters and documents as
the Purchasers reasonably request. CSFB may in its sole discretion waive on
behalf of the Purchasers compliance with any conditions to the obligations of
the Purchasers hereunder.

 

                       7.                          Indemnification and
Contribution. (a) The
Issuer and Guarantors will, jointly and severally, indemnify and hold harmless
each Purchaser, its partners, members, affiliates, directors and officers and
each person, if any, who controls such Purchaser within the meaning of Section
15 of the Securities Act, against any losses, claims, damages or liabilities,
joint or several, to which such Purchaser may become subject, under the Securities
Act or the Exchange Act or otherwise, insofar as such losses, claims, damages
or liabilities (or actions in respect thereof) arise out of or are based upon
any untrue statement or alleged untrue statement of any material fact

 

13

 

contained in the Offering Document, or any amendment or supplement
thereto, or any related preliminary confidential offering circular or arise out
of or are based upon the omission or alleged omission to state therein a
material fact necessary in order to make the statements therein, in the light
of the circumstances under which they were made, not misleading, including any
losses, claims, damages or liabilities arising out of or based upon the Company’s
failure to perform its obligations under Section 5(a) of this Agreement, and
will reimburse each Purchaser for any legal or other expenses reasonably
incurred by such Purchaser in connection with investigating or defending any
such loss, claim, damage, liability or action as such expenses are incurred;
provided, however, that the Company and the Guarantors will not be liable in
any such case to the extent that any such loss, claim, damage or liability
arises out of or is based upon an untrue statement or alleged untrue statement
in or omission or alleged omission from any of such documents in reliance upon
and in conformity with written information furnished to the Company by any of
the Purchasers specifically for use therein, it being understood and agreed
that the only such information consists of the information described as such in
subsection (b) below; provided, further, however, that the foregoing indemnity
agreement with respect to losses, claims, damages or liabilities shall not
inure to the benefit of any Purchaser, its officers, partners, members or
directors (or any person controlling any Purchaser within the meaning of
Section 15 of the Securities Act) with respect to any losses, claims, damages
or liabilities arising out of or based upon (x) any untrue statement or alleged
untrue statement of any material fact in the Preliminary Offering Circular or
(y) the omission or alleged omission to state in the Preliminary Offering
Circular a material fact necessary in order to make the statements therein, in
light of the circumstances under which they were made, not misleading, if: (1)
the Company furnished sufficient copies to the Purchasers of the Offering
Circular on a timely basis to permit delivery of the Offering Circular to all
persons purchasing Offered Securities from the Purchasers in the initial resale
of such Offered Securities (such persons, the “Initial
Resale Purchasers”) at or prior to the written confirmation of the
sale of the Offered Securities to such person; (2) the Initial Resale Purchaser
asserting such losses, claims, damages or liabilities purchased Offered
Securities in the initial resale from the Purchasers and a copy of the Offering
Circular was not sent or given by or on behalf of such Purchaser to such
Initial Resale Purchaser; and (3) the Offering Circular would have cured the
defect giving rise to such losses, claims, damages or liabilities.

 

(b)                     Each Purchaser will severally and not jointly
indemnify and hold harmless the Company, the Guarantors and their respective
directors and officers and each person, if any, who controls the Company or the
Guarantors within the meaning of Section 15 of the Securities Act (“Controlling Persons”), against any losses,
claims, damages or liabilities to which the Company, any of the Guarantors or
their respective directors, offices or Controlling
Persons may become subject, under the Securities Act or the Exchange Act or
otherwise, insofar as such losses,
claims, damages or liabilities (or actions in respect thereof) arise out of or
are based upon any untrue statement
or alleged untrue statement of any material fact contained in the Offering
Document, or any amendment or supplement
thereto, or arise out of or are based upon the omission or the alleged omission
to state therein a material fact
necessary in order to make the statements therein, in the light of the
circumstances under which they were made, not misleading, in each case
to the extent, but only to the extent, that such untrue statement or alleged
untrue statement or omission or alleged omission was made in reliance upon and
in conformity with written information furnished to the Company by such
Purchasers through CSFB specifically for use therein, and will reimburse any legal or other expenses reasonably incurred by
the Company or the Guarantors in connection with investigating or defending
any such loss, claim, damage, liability or action as such expenses are
incurred, it being understood and agreed that the only such information
furnished by any Purchaser consists of the following information in the Offering Document furnished on behalf of each
Purchaser: the sixth, ninth and tenth paragraphs, the first sentence of the
third paragraph and the fourth sentence of the eighth paragraph, in each case
under the caption “Plan of Distribution”; provided,
however, that the Purchasers shall not be liable for any losses, claims,
damages or liabilities arising out of or based upon the Company’s or any
Guarantor’s failure to perform its obligations under Section 5(a) of this Agreement.

 

                       (c)                     Promptly
after receipt by an indemnified party under this Section of notice of the
commencement of any action, such indemnified party will, if a claim in respect
thereof is to be made against the indemnifying party under subsection (a) or
(b) above, notify the indemnifying party of the commencement thereof; but the
failure to notify the indemnifying party shall not relieve it from any
liability that it may have under subsection (a) or (b) above except to the
extent that it has been materially prejudiced (through the forfeiture of
substantive rights or defenses) by such failure; provided that the failure to
notify the indemnifying party shall not relieve it from any liability that it
may have to an indemnified party otherwise than under subsection (a) or (b)
above.  In case any such action is brought
against any indemnified party and the indemnified party notifies the

 

14

 

indemnifying party of the commencement thereof, the indemnifying party
will be entitled to participate therein and, to the extent that it may wish,
jointly with any other indemnifying party similarly notified, to assume the
defense thereof, with counsel reasonably satisfactory to such indemnified party
(who shall not, except with the consent of the indemnified party, be counsel to
the indemnifying party), and after notice from the indemnifying party to such
indemnified party of its election so to assume the defense thereof, the
indemnifying party will not be liable to such indemnified party under this
Section for any legal or other expenses subsequently incurred by such
indemnified party in connection with the defense thereof other than reasonable
costs of investigation. No indemnifying party shall, without the prior written
consent of the indemnified party, which consent shall not be unreasonably
withheld, effect any settlement of any pending or threatened action in respect
of which any indemnified party is or could have been a party and indemnity
could have been sought hereunder by such indemnified party unless such
settlement includes (i) an unconditional release of such indemnified party from
all liability on any claims that are the subject matter of such action and (ii)
does not include a statement as to or an admission of fault, culpability or
failure to act by or on behalf of any indemnified party.

 

(d)                     If the indemnification provided for in this
Section is unavailable or insufficient to hold harmless an indemnified party under subsection (a) or (b) above, then
each indemnifying party shall contribute to the amount paid or payable
by such indemnified party as a result of the losses, claims, damages or
liabilities referred to in subsection (a) or (b) above (i) in such proportion
as is appropriate to reflect the relative benefits received by the Company and the Guarantors on the one hand and the
Purchasers on the other from the offering of the Offered Securities or (ii) if
the allocation provided by clause (i) above is not permitted by applicable law,
in such proportion as is appropriate to reflect not only the relative benefits
referred to in clause (i) above but also the relative fault of the Company and
the Guarantors on the one hand and the Purchasers on the other in connection
with the statements or omissions which resulted in such losses, claims, damages
or liabilities as well as any other relevant equitable considerations.
The relative benefits received by the Company on the one hand and the
Purchasers on the other shall be deemed to be
in the same proportion as the total net proceeds from the offering (before
deducting expenses) received by the Company and the Guarantors bear to
the total discounts and commissions received
by the Purchasers from the Company or the
Guarantors under this Agreement. The relative fault shall be determined by
reference to, among other things, whether the untrue or alleged untrue
statement of a material fact or the omission or alleged omission to state a
material fact relates to information supplied by the Company or the Purchasers
and the parties’ relative intent, knowledge, access to information and opportunity
to correct or prevent such untrue statement or omission. The amount paid by an
indemnified party as a result of the losses, claims, damages or liabilities
referred to in the first sentence of
this subsection (d) shall be deemed to include any legal or other expenses
reasonably incurred by such indemnified party in connection with
investigating or defending any action or claim which is the subject of this subsection (d). Notwithstanding
the provisions of this subsection (d), no Purchaser shall be required to
contribute any amount in excess of the amount by which the total price at which
the Offered Securities sold by such Purchaser exceeds the amount of any damages
which such Purchaser has otherwise been required to pay by reason of such untrue or alleged untrue statement
or omission or alleged omission. The Purchasers’ obligations in this
subsection (d) to contribute are several in proportion to their respective
purchase obligations and not joint.

 

(e)          The obligations of the Company and the Guarantors
under this Section shall be in addition to any liability which the Company and the Guarantors may
otherwise have and shall extend, upon the same terms and conditions, to each
person, if any, who controls any Purchaser within the meaning of the Securities
Act or the Exchange Act; and the obligations of the Purchasers under this
Section shall be in addition to any liability which the respective Purchasers
may otherwise have and shall extend, upon the same terms and conditions, to
each person, if any, who controls the Company or any Guarantor within the
meaning of the Securities Act or the Exchange Act.

 

8.                           Default of Purchasers. If any Purchaser or Purchasers default in their
obligations to purchase Offered
Securities hereunder and the aggregate principal amount of the Offered
Securities that such defaulting
Purchaser or Purchasers agreed but failed to purchase does not exceed 10% of
the total principal amount of the
Offered Securities, CSFB may make arrangements satisfactory to the Company for
the purchase of such Offered
Securities by other persons, including any of the Purchasers, but if no such
arrangements are made by the Closing
Date, the non-defaulting Purchasers shall be obligated severally, in proportion
to their respective commitments
hereunder, to purchase the Offered Securities that such defaulting Purchasers
agreed but failed to purchase. If any
Purchaser or Purchasers so default and the aggregate principal amount of the
Offered Securities with respect to which such default or defaults occur exceeds
10% of the total principal amount of the Offered Securities and arrangements satisfactory to CSFB and the Company for the
purchase of such Offered Securities by

 

15

 

other persons are not made within 36 hours after such
default, this Agreement will terminate without liability on the part of any
non-defaulting Purchaser or the Company, except as provided in Section 9. As
used in this Agreement, the term “Purchaser” includes any person substituted
for a Purchaser under this Section. Nothing herein will relieve a defaulting
Purchaser from liability for its default.

 

9.                           Survival of Certain Representations and Obligations. The
respective indemnities, agreements, representations, warranties and other
statements of the Company or any Guarantor or their respective officers and of
the several Purchasers set forth in or made pursuant to this Agreement will
remain in full force and effect, regardless of any investigation, or statement
as to the results thereof, made by or on behalf of any Purchaser, the Company,
the Guarantors or any of their respective representatives, officers or
directors or any controlling person, and will survive delivery of and payment
for the Offered Securities. If this Agreement is terminated pursuant to Section
8 or if for any reason the purchase of the Offered Securities by the Purchasers
is not consummated, the Company and the Guarantors shall remain responsible for
the expenses to be paid or reimbursed by it pursuant to Section 5 and the respective
obligations of the Company, Guarantors and the Purchasers pursuant to Section 7
shall remain in effect. If the purchase of the Offered Securities by the
Purchasers is not consummated for any reason other than solely because of the
termination of this Agreement pursuant to Section 8 or the occurrence of any
event specified in clauses (iii), (iv), (vi), (vii) and (viii) of Section 6(c),
the Company and Guarantors, will, jointly and severally, reimburse the
Purchasers for all out-of-pocket expenses (including fees and disbursements of
counsel) reasonably incurred by them in connection with the offering of the
Offered Securities.

 

10.                     Notices. All communications hereunder will
be in writing and, if sent to the Purchasers will be mailed, delivered or telegraphed
and confirmed to the Purchasers c/o  Credit
Suisse First Boston LLC, Eleven Madison Avenue, New York, New York 10010-3629,
Attention: Transactions Advisory Group, or, if sent to the Company or the
Guarantors, will be mailed, delivered or telegraphed and confirmed to it at
Panolam Industries International, Inc., 20 Progress Drive, Shelton,
Connecticut, 06484, Attention: General Counsel; provided, however,
that any notice to a Purchaser pursuant to Section 7 will be mailed,
delivered or telegraphed and confirmed to such Purchaser.

 

11.                     Successors. This Agreement will inure to
the benefit of and be binding upon the parties hereto and their respective
successors and the controlling persons referred to in Section 7, and no other
person will have any right or obligation hereunder, except that holders of
Offered Securities shall be entitled to enforce the agreements for their
benefit contained in the second and third sentences of Section 5(b) hereof
against the Company and the Guarantors as if such holders were parties hereto.

 

12.                     Representation of Purchasers. CSFB will
act for the several Purchasers in connection with this purchase, and any action
under this Agreement taken by CSFB will be binding upon all the Purchasers.

 

13.                     Counterparts. This Agreement may be
executed in any number of counterparts, each of which shall be deemed to be an
original, but all such counterparts shall together constitute one and the same
Agreement.

 

14.                     Absence of Fiduciary Relationship. The
Issuer and Guarantors, jointly and severally, acknowledge and agree that:

 

(a)                      the
Representatives have been retained solely to act as initial purchasers in
connection with the sale of Company’s securities and that no fiduciary,
advisory or agency relationship between Company or any Guarantor and the
Representatives have been created in respect of any of the transactions
contemplated by this Agreement, irrespective of whether the Representatives
have advised or are advising Company on other matters;

 

(b)                     the price of
the securities set forth in this Agreement was established by Company following
discussions and arms-length negotiations with the Representatives and the
Company is capable of evaluating and understanding and understands and accepts
the terms, risks and conditions of the transactions contemplated by this
Agreement;

 

16

 

(c)                      they have
been advised that the Representatives and their affiliates are engaged in a
broad range of transactions which may involve interests that differ from those of
Company and that the Representatives have no obligation to disclose such
interests and transactions to Company by virtue of any fiduciary, advisory or
agency relationship; and

 

(d)                     they waive,
to the fullest extent permitted by law, any claims they may have against the
Representatives for breach of fiduciary duty or alleged breach of fiduciary
duty and agree that the Representatives shall have no liability (whether direct
or indirect) to Company or any Guarantor in respect of such a fiduciary duty
claim or to any person asserting a fiduciary duty claim on behalf of or in
right of Company, including stockholders, employees or creditors of Company.

 

15.                     Applicable Law. This Agreement shall be
governed by, and construed in accordance with, the laws of the State of New
York without regard to principles of conflicts of laws.

 

16.                     The Company
and the Guarantors hereby submit to the non-exclusive jurisdiction of, the
Federal and state courts in the Borough of Manhattan in the City of New York in
any suit or proceeding arising out of or relating to this Agreement or the
transactions contemplated hereby.

 

If the foregoing is in
accordance with the Purchasers’ understanding of our agreement, kindly sign and
return to the Company one of the counterparts hereof, whereupon it will become
a binding agreement among the Company, the Guarantors and the several
Purchasers in accordance with its terms.

 

17

 

	
   

  	
  Very truly yours,

  
	
   

  	
  

  PIH ACQUISITION CO.

  
	
  

  	
   

  	
  by: 

  	
  

  /s/ Darren J. Gold

  	
   

  
	
   

  	
   

  	
   

  	
  Name: Darren J. Gold

  Title: President 

  

 

 

The foregoing Purchase Agreement is hereby confirmed
and accepted as of the date first above
written.

 

	
  CREDIT SUISSE FIRST BOSTON LLC

  	
   

  	
   

  	
   

  
	
  

  by: 

  	
  /s/ Ted Iantuono

  	
   

  	
   

  	
   

  	
  

  
	
   

  	
  Name: Ted Iantuono

  Title: Managing Director

  	
   

  	
   

  	
   

  
						

 

 

	
  JEFFERIES & COMPANY,
  INC.

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  by: 

  	
  /s/ M. Brent Stevens

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Name: M. Brent Stevens

  Title: Executive Vice PresidentExhibit
4.5

 

PANOLAM HOLDINGS
CO.

 

REGISTRATION
RIGHTS AGREEMENT

 

This Registration Rights
Agreement (“Agreement”) is made and entered into by and among Panolam Holdings
Co., a Delaware corporation (“Company”), and the other signatories hereto who
have committed, subject to certain conditions, to become holders of Qualified
Registrable Securities (as defined herein) on the Effective Date whose names
appear on the signature pages of this Agreement:

 

1.                          Certain
Definitions. As used in this Agreement:

 

1.1                     The term
“Affiliate” shall mean any person or entity directly or indirectly controlling,
controlled by, or under common control with the Company.  As used in this definition, the term
“control,” including the correlative terms “controlling,” “controlled by,” and
“under common control with,” shall mean possession, directly or indirectly, of
a majority of the outstanding voting securities of such person or entity.

 

1.2                     The term
“Commission” shall mean the Securities and Exchange Commission and any
successor agency.

 

1.3                     The term
“Common Equity Securities” shall mean Common Shares, any option, warrant or right
to subscribe for, acquire or purchase Common Shares (whether or not currently
exercisable), and any security convertible into or exchangeable for Common Shares
(whether or not currently convertible or exchangeable).

 

1.4                     The term
“Common Shares” shall mean any shares in the share capital of any class of the
Company that has no preference in respect of dividends or amounts payable in
the event of any voluntary or involuntary liquidation, dissolution or
winding-up of the Company and is not subject to redemption by the Company,
including shares of any voting or non-voting common stock of the Company.

 

1.5                     The term
“Effective Date” shall mean the date of the closing of the transactions
(collectively, the “Acquisition”) contemplated in the Agreement and Plan of
Merger dated as of July 16, 2005, as amended, by and among GS Holdings Co., a
Delaware corporation now known as Panolam Holdings II Co., Panolam Industries Holdings,
Inc., a Delaware corporation and TC Group, L.L.C., a Delaware limited liability
company (the “Purchase Agreement”).

 

1.6                     The term
“Holder” shall mean (1) any party who is a signatory to this Agreement and, at
the time of determination of whether such party is a “Holder,” holds Qualified
Registrable Securities of record, and (2) any party who hereafter acquires
Qualified Registrable Securities from a Holder and, at the time of
determination of whether such party is a “Holder,” holds Qualified Registrable
Securities of record and who is permitted to become, and has at such time
become, a party to this Agreement under Section 11.1 of this Agreement.

 

 

1.7                     The term
“Initial Public Offering” shall mean the first underwritten public offering of
Common Shares pursuant to a registration statement filed under the Securities
Act after the Effective Date; provided, however, that the term “Initial Public
Offering” shall not include any registration statement (1) relating to any
capital stock of the Company or options, warrants or other rights to acquire
any such capital stock issued or granted or to be issued or granted primarily
to directors, officers or employees of the Company, (2) relating to any
employee benefit plan or interests therein, (3) filed pursuant to Rule 145
under the Securities Act or any successor or similar provision or (4) relating
solely to any shares of preferred stock or debt securities of the Company.

 

1.8                     The term
“Permitted Transferee” shall mean any person or entity to which Qualified Registrable
Securities may be transferred pursuant to Section 4.3, Section 6 (other than
Sections 6.2, 6.10 or 6.11), Section 9 or Section 10 of the Stockholders
Agreement.

 

1.9                     The term
“Qualified Registrable Securities” shall mean any Common Equity Securities of
the Company. Any Holder of Qualified Registrable Securities will be deemed to
be the Holder of any Common Shares issuable upon the exercise, conversion or
exchange of such Qualified Registrable Securities, whether or not such
exercise, conversion or exchange is then permitted by the terms of such Common
Equity Securities or by applicable statutes, regulations or agreements. Any
Qualified Registrable Securities shall cease to be Qualified Registrable
Securities whenever (1) a registration statement with respect to such
securities becomes effective under the Securities Act and such securities have
been disposed of in accordance with such registration statement; (2) such
securities have ceased to be outstanding; (3) such securities have been sold
pursuant to Rule 144 or Rule 144A under the Securities Act or any successor or
similar provisions; or (4) at the time of determination of whether such
securities are Qualified Registrable Securities, such securities may be sold by
the Holder thereof without registration under the Securities Act and free of
contractual restrictions with the Company, including the provisions of Section
9.

 

1.10               The term “Qualified
Registration” shall mean a registration statement of the Company under the
Securities Act on a form that permits the sale of Common Equity Securities in
the United States (other than a registration statement (1) on Form S-4 or S-8,
or similar forms available to foreign private issuers, or any successor or
similar forms, respectively, (2) in connection with the Initial Public Offering
(unless the Company, in its sole discretion, consents to the secondary sale of
shares in the Initial Public Offering), or before (but not in connection with)
the Initial Public Offering, (3) pursuant to Section 3 in connection with a
Demand Registration (as defined therein), (4) relating to any capital stock of
the Company or options, warrants or other rights to acquire any such capital
stock issued or granted or to be issued or granted primarily to directors,
officers or employees of the Company, (5) filed pursuant to Rule 145 under the
Securities Act or any successor or similar provision, (6) relating to any
employee benefit plan or interests therein, or (7) relating to preferred stock
or debt securities of the Company).

 

1.11               The term “Required
Voting Percentage” shall mean, at any particular time, 66 2/3% of
the Shares Subject to this Agreement determined as at such time. For so long as
the Stockholders Agreement is in effect, the Voting Representative (as defined
therein) for each Designated Holder Group (as defined therein) shall be
exclusively authorized to act on behalf of

 

2

 

and directed by each Holder included in such
Designated Holder Group with respect to any matter requiring the consent, vote
or approval of the Required Voting Percentage.

 

1.12               The term “Requisite
Amount” shall mean (1) for the purposes of Section 3, an amount of Qualified
Registrable Securities proposed to be registered under Section 3 pursuant to a Demand
Registration (as defined herein) which are expected to have an aggregate
offering price of at least $20 million, as determined in good faith by the
Company in consultation with the Sponsor Holders making a Demand Request (as
defined herein); and (2) for the purposes of Section 8, the aggregate amount of
Qualified Registrable Securities and other securities of the Company which, in
the good faith opinion of the Company, are expected to have an aggregate
offering price of at least $20 million.

 

1.13               The term
“Securities Act” shall mean the Securities Act of 1933, as amended.

 

1.14               The term “Shares
Subject to this Agreement” shall mean the aggregate of all Qualified
Registrable Securities on a fully-diluted basis held by the Holders.

 

1.15               The term “Sponsor
Holders” shall mean Genstar Capital Partners IV, L.P., Stargen IV, L.P.,
Sterling Group Partners II, L.P., and Sterling Group Partners II (Parallel),
L.P.

 

1.16               The term
“Stockholders Agreement” shall mean that certain Panolam Holdings Co.
Stockholders Agreement dated as of the Effective Date among the Company and the
Holders and the other parties thereto, as amended from time to time in
accordance with such agreement.

 

2.                          Piggyback
Registrations.

 

2.1                     Right to
Piggyback Registration. After the Initial Public Offering (or in the
Initial Public Offering, if the Company, in its sole discretion, permits the
secondary sale of shares of Qualified Registrable Securities in the Initial
Public Offering), whenever the Company proposes to register any of its Common
Equity Securities in a Qualified Registration other than a Demand Registration
under Section 3, whether or not for sale for its own account, the Company shall
give prompt written notice (the “Piggyback Notice”) to the Holders of Qualified
Registrable Securities of its intention to effect such Qualified Registration.
Upon written request of any Holder of Qualified Registrable Securities made
within 20 days after delivery of any Piggyback Notice (which request shall
specify the Qualified Registrable Securities requested to be included in such
Qualified Registration by such Holder), the Company shall, subject to Sections
2.2 and 2.3, use its reasonable best efforts to include in such Qualified
Registration all Qualified Registrable Securities that the Holders have so
requested be included in such Qualified Registration, to permit the disposition
by such Holders of such Qualified Registrable Securities; provided, however,
that (1) if, at any time after giving the Piggyback Notice and before the
effective date of the registration statement filed in connection with such
Qualified Registration, the Company determines for any reason not to register
such Common Equity Securities (other than the Qualified Registrable Securities
requested to be included therein pursuant to this Section 2), the Company, at
its election, may give written notice of such determination to all Holders of
Qualified Registrable Securities requesting the inclusion of their Qualified
Registrable Securities

 

3

 

therein
and, thereupon, shall be relieved of its obligation to register any Qualified
Registrable Securities in connection with such registration (without prejudice,
however, to the rights of the Holders under Section 3 or the future rights of the
Holders under this Section 2); (2) if, at any time after giving the Piggyback
Notice and before the effective date of the registration statement filed in
connection with such Qualified Registration, the Company determines for any
reason to delay such registration of the Common Equity Securities (other than
the Qualified Registrable Securities requested to be included therein pursuant
to this Section 2), the Company shall be permitted to delay the registration of
such Qualified Registrable Securities for the same period as the delay in
registering such other Common Equity Securities; and (3) the Company shall not
be required to effect any registration pursuant to this Section 2.1 unless it
shall have received reasonable assurances that the Holders of any Qualified
Registrable Securities included therein will pay any expenses required to be
paid by them as provided in Section 5. As used herein, the term “Piggyback
Registration” shall mean any registration of Qualified Registrable Securities
requested pursuant to this Section 2.1.

 

2.2                     Priority on Piggyback Registrations. If a Piggyback Registration is an
underwritten offering and the managing underwriter thereof advises the Company
in writing that, in its opinion, the number of shares of Qualified Registrable
Securities requested or proposed to be included in such Qualified Registration
exceeds the number that can be sold in such offering without materially
affecting the offering price of any such securities, the Company shall include
in such Qualified Registration (1) first, to the extent that such securities of
the Company may be included in such Qualified Registration without materially
affecting the offering price thereof, in the opinion of such managing
underwriter, if such registration is initiated by the Company proposing to
register any of its Common Equity Securities, such Common Equity Securities
proposed to be sold by the Company, (2) second, to the extent that such
Qualified Registrable Securities may be included in such Qualified Registration
without materially affecting the offering price of the securities referred to
in clause (1), in the opinion of such managing underwriter, the Qualified
Registrable Securities requested by the Holders to be included in such
Piggyback Registration pursuant to Section 2.1 pro rata among such Holders on
the basis of the total number of Qualified Registrable Securities, held by each
such Holder and eligible to be included therein, and (3) third, to the extent
that such securities may be included in such Qualified Registration without
materially affecting the offering price of the securities referred to in
clauses (1) and (2), in the opinion of such managing underwriter, any other
securities of the Company held by persons other than the Holders having rights
to participate in such Piggyback Registration, in accordance with agreements
with respect to such registration rights between the Company and such persons.

 

2.3                     Selection of Underwriters. Except as otherwise provided in any
registration rights agreement with respect to any other securities of the
Company, if any Piggyback Registration is an underwritten offering, the Company
shall have the sole right to select the managing underwriter or underwriters
thereof.

 

3.                          Demand
Registrations.

 

3.1                     Right to Demand Registration. After the Initial Public Offering, upon the
written request (“Demand Request”) of one or more Sponsor Holder(s) who at the
time owns Qualified Registrable Securities requesting the Company to effect the
registration of any

 

4

 

Qualified
Registrable Securities of such Sponsor Holder(s) under the Securities Act
(which request shall state the intended method of disposition of such Qualified
Registrable Securities by such Sponsor Holder(s)), and such Qualified
Registrable Securities requested in the Demand Request to be included therein
have, in the good faith opinion of the Company, an aggregate fair market value
of at least $5 million, the Company shall promptly give the written notice
required under Section 3.2, and thereupon, subject to this Section 3 and
Section 4 and as expeditiously as reasonably practicable and in any event
within 60 days of the date of the Demand Request (subject to Section 3.3),
shall file a registration statement under the Securities Act relating to, and
shall use its reasonable best efforts to effect, the registration (“Demand
Registration”) under the Securities Act of (1) the Qualified Registrable
Securities that the Company has been so requested to register by the Sponsor
Holder(s), for disposition in accordance with the intended method of
disposition stated in the Demand Request, and (2) all other Qualified
Registrable Securities, the Holders of which have made a written request to the
Company for registration thereof as provided in Section 3.2, in each case to
permit the disposition by such Holders of such Qualified Registrable
Securities.

 

3.2                    Obligations of Company after Demand Request. Upon the receipt of a Demand Request, the
Company promptly shall give written notice of the proposed Demand Registration
and the intended method of disposition stated in the Demand Request to all
other Holders and all other persons having registration rights under other
agreements with respect to the Demand Registration and, subject to the terms of
this Section 3 and Section 4, shall include in such Demand Registration all
Qualified Registrable Securities of the Holders with respect to which the
Company has received written requests for inclusion therein (which requests, to
be effective, shall contain a consent to the intended method of disposition
included in the Demand Request) within 20 days after the delivery of such
notice.

 

3.3                    Conditions to Company’s Obligations under Demand Registration. Notwithstanding the foregoing, the Company
shall not be required to file a registration statement for a Demand
Registration under any of the following circumstances:

 

3.3.1            (a)
within 90 days after the effective date of a registration statement filed in
connection with the Initial Public Offering (or up to 180 days if required by
the underwriters), (b) within 45 days of after the effective date of a
registration statement filed in connection with an underwritten public offering
of securities of the Company other than the Initial Public Offering (or up to
90 days if required by the underwriters), or (c) within 45 days after the
effective date of a registration statement filed in connection with a prior
Demand Registration (or up to 90 days if required by the underwriters);

 

3.3.2            the
Company promptly delivers written notice (“Delay Notice”) to the Sponsor
Holders making the Demand Request that the Company:

 

(1)                       (a) had previously determined by resolution of
the Company’s Board of Directors to file a registration statement for an
underwritten public offering of Common Equity Securities as to which the
Company expects to receive net proceeds of at least $20 million (after
deducting all costs, discounts, commissions and other expenses of the
offering), or (b) has initiated bona fide discussions with underwriters in preparation
for a public offering of its securities as to which it expects to receive net
proceeds of at least $20 million

 

5

 

(after
deducting all costs, discounts, commissions and other expenses of the offering)
and in each case its underwriters reasonably believe (as evidenced by a letter
to the Company) that such public offering would be materially adversely
affected by the Demand Registration so requested; provided, however, that the
Company may postpone the filing of a registration statement in connection with
a Demand Registration under this clause (l) no longer than (a) 120 days after
the effective date of the registration statement to be filed by the Company as
stated in the Delay Notice, if such registration statement is filed within 45
days after the date of delivery of the Delay Notice and becomes effective
within 90 days after the date of delivery of the Delay Notice, (b) 90 days
after the date of delivery of the Delay Notice, if such registration statement
is filed within 45 days after the date of delivery of the Delay Notice but does
not become effective within such 90-day period, or (c) 45 days after the date
of delivery of the Delay Notice, if such registration statement is not filed
within 45 days after the date of delivery of the Delay Notice; and provided
further, that the Company may exercise the rights in this clause (1) no more
than once in any 24-month period and any of such periods in (a) and (b) above
may be extended to up to 180 days after the effective date of the registration
statement to be filed by the Company as stated in the Delay Notice if so
required by the underwriters; or

 

(2)                       is in possession of material information that
it reasonably deems advisable not to disclose in a registration statement;
provided, however, that the Company may postpone the filing of a registration
statement in connection with a Demand Registration under this clause (2) only
for so long as such information continues to be material and non-public, but in
no event longer than 90 days after the Demand Request or for more than an
aggregate of 90 days during any 18-month period;

 

3.3.3            the
Company has previously effected six Demand Registrations pursuant to this
Section 3, which have been declared or ordered effective by the Commission;

 

3.3.4            the
Company determines, in good faith and after consultation with the Sponsor
Holders making the Demand Request, that the Qualified Registrable Securities
proposed to be registered in the Demand Request are not expected to have an
aggregate offering price of at least the Requisite Amount; or

 

3.3.5            the
Company promptly delivers written notice (“Prior Registration Notice”) to the
Sponsor Holders making the Demand Request and any Holder who has requested to
be included in such demand registration that it has filed and is using
reasonable best efforts to have declared effective, or at the time of receipt
of the Demand Request is required to file, or has delivered a Piggyback Notice
under Section 2.1 with respect to, a registration statement pursuant to (1)
demand registration rights granted to any person or entity (other than pursuant
to this Section 3) or (2) Section 2 (“Prior Registration Rights”); provided,
however, that the Company may postpone the filing of a registration statement
pursuant to a Demand Request for a period of no longer than (1) 120 days after
the effective date of the registration statement filed pursuant to the Prior
Registration Rights, if such registration statement was filed before the date
of delivery of the Prior Registration Notice or within 45 days thereafter and,
in either case, becomes effective within 90 days after the date of delivery of
the Prior Registration Notice; (2) 90 days after the date of delivery of the
Prior Registration Notice, if such registration statement was filed before the
date of delivery of the Prior Registration Notice or within 45 days thereafter
but, in either case, does not become effective within such 90-day period; or
(3) 45 days after the date of

 

6

 

delivery of the Prior Registration Notice, if such
registration statement was not filed before the date of delivery of the Prior
Registration Notice and is not filed within 45 days thereafter; provided,
however, that any of such periods in (1) and (2) above may be extended to up to
180 days after the effective date of the registration statement to be filed by
the Company as stated in the Delay Notice if so required by the underwriters.

 

3.4                     Priority
on Demand Registrations. If the Demand Registration is an underwritten
offering and the managing underwriter thereof advises the Company in writing
that, in its opinion, the number of shares of Qualified Registrable Securities
and other securities of the Company requested to be included in such offering
exceeds the number that can be sold in such offering without materially
affecting the offering price of any such securities, the Company shall include
in such registration (1) first, the Qualified Registrable Securities requested
by the Holders to be included in the Demand Registration pursuant to Sections
3.1 and 3.2, pro rata among such Holders on the basis of the total number of
Qualified Registrable Securities then held by such Holders requesting to be
included in such Demand Registration; and (2) second, to the extent that such
securities of the Company may be included in such Demand Registration without
materially affecting the offering price of the Qualified Registrable Securities
in the opinion of such managing underwriter, (a) any other securities of the
Company held by persons having rights to participate in such Demand
Registration that are non-preferential to the Holders in accordance with their
agreements with respect thereto and (b) securities of the Company to be issued
or sold by the Company.

 

3.5                     Selection
of Underwriters. If any Demand Registration is an underwritten offering,
the Holders of the majority of Qualified Registrable Securities to be included
in such Demand Registration shall have the sole right to select, after consultation
with the Company, the managing underwriter or underwriters thereof, at least
one of which shall be of nationally recognized standing.

 

3.6                     Clean-Up
Demand. If, after an aggregate of six Demand Registrations in compliance
with this Section 3 have become effective, any Holder shall not have sold all
of its Qualified Registrable Securities due to proration with other
registration participants, then the Holders, acting by the Required Voting
Percentage, shall be entitled to one additional Demand Request in which the
Holders then holding Qualified Registrable Securities shall not be subject to
proration with any other holders of securities of the Company entitled to
participate in such registration; provided, however, that each such Holder
shall be subject to proration on the basis of the number of shares of Qualified
Registrable Securities then held by such Holder requesting to be included
therein compared to the total number of shares of Qualified Registrable
Securities then held by all such Holders of Qualified Registrable Securities
requesting to be included therein. In the event a Demand Request is made in
accordance with this Section 3.6, the Holders shall be deemed to be Sponsor
Holders solely for the purposes effecting such Demand Request pursuant to this
Section 3.6.

 

3.7                     Form.
A Demand Registration shall be on such appropriate registration form of the
Commission for the disposition of the Qualified Registrable Securities in an
underwritten public offering as may be used and selected by the Company. Except
as provided in Section 4.4, a Demand Registration shall not be deemed to have
been effected unless it has become effective; provided, however, that if, after
a Demand Registration has become effective,

 

7

 

the offering of Qualified Registrable Securities
pursuant thereto is suspended, blocked by any stop order, injunction or other
order of the Commission or any other governmental agency or court, or withdrawn
(except a Demand Registration withdrawn under Section 4.4), such Demand
Registration will be deemed not to have been effected for purposes of Section
3.3.3.

 

4.                          Registration
Procedures. If and when the Company is required by this Agreement to use
its reasonable best efforts to effect the registration of any Qualified
Registrable Securities:

 

4.1                     Company’s
Actions. The Company shall, as soon as 
reasonably practicable:

 

4.1.1            prepare and file with
the Commission under the Securities Act a registration statement with respect
to such Qualified Registrable Securities which shall state that the Qualified
Registrable Securities are covered thereby, and use its reasonable best efforts
to cause such registration statement to become effective and to remain
effective as provided herein; provided, however, that the Company may
discontinue any registration of Qualified Registrable Securities being effected
pursuant to Section 2 at any time before the effective date of the registration
statement relating thereto;

 

4.1.2            prepare and file with
the Commission such amendments and supplements, if any, to such registration
statement and the prospectus used in connection therewith as may be necessary
to (1) keep such registration statement effective until the earlier of (a) 180
days after the effectiveness thereof and (b) the completion of the distribution
under such registration statement, and (2) comply with the provisions of the
Securities Act applicable to it with respect to the disposition of all
securities covered by such registration statement during such period in
accordance with the intended methods of disposition by the sellers thereof set
forth in such registration statement;

 

4.1.3            furnish to each seller
of such Qualified Registrable Securities and each underwriter (if any) such
number of copies of such registration statement (including exhibits), each
amendment and supplement thereto, the prospectus included in such registration
statement or filed with the Commission (including each preliminary prospectus),
and each amendment and supplement thereto as such seller and underwriter may
reasonably request to facilitate the disposition of the Qualified Registrable
Securities owned by such seller and covered by such registration statement;

 

4.1.4            use its reasonable
best efforts to (1) register or qualify such Qualified Registrable Securities
under the securities or “blue sky” laws of such jurisdictions as any seller of
such Qualified Registrable Securities or the managing underwriter (if any) may
reasonably request; (2) keep such registrations or qualifications in effect for
so long as such registration statement is in effect; and (3) take any and all
other reasonable actions that may be necessary or appropriate to enable each
seller of Qualified Registrable Securities or other securities of the Company
covered by such registration statement and each underwriter (if any) to
consummate the disposition in such jurisdictions of the relevant Qualified
Registrable Securities and other securities of the Company; provided, however,
that the Company shall not be required to (a) qualify generally to transact
business as a foreign corporation in any jurisdiction where it would not
otherwise be required to qualify but for the requirements of this

 

8

 

Section 4.1; (b) subject itself to taxation in any
such jurisdiction; (c) consent to general service of process in any such
jurisdiction; or (d) register or qualify Qualified Registrable Securities or
take any other action under the securities or blue sky laws of any jurisdiction
if, in the judgment of the Board of Directors of the Company, the consequences
of such registration, qualification or other action would be unduly burdensome
to the Company;

 

4.1.5            (1) at any time when a
prospectus relating thereto is required to be delivered under the Securities
Act, notify each seller of Qualified Registrable Securities covered by a
registration statement when the Company becomes aware of the occurrence of any
event as a result of which the prospectus (as then amended or supplemented)
contains any untrue statement of a material fact or omits any fact necessary to
make the statements therein, in the light of the circumstances under which they
were made, not misleading; and (2) at the request of any such seller, as
promptly as practicable thereafter, prepare in sufficient quantities and
furnish to such seller and each underwriter (if any) a reasonable number of
copies of a prospectus supplemented or amended so that, as thereafter delivered
to the offerees or purchasers of such Qualified Registrable Securities, such
prospectus will not contain any untrue statement of a material fact or omit to
state any fact necessary to make the statements therein, in the light of the
circumstances then existing, not misleading;

 

4.1.6            comply with all
applicable rules and regulations of the Commission, and make generally
available to its security holders, as soon as reasonably practicable, an
earning statement covering the period of at least twelve consecutive months
beginning with the first day of the Company’s first calendar quarter after the
effective date of the registration statement, which earning statement shall
satisfy the provisions of Section 11(a) of the Securities Act and Rule 158
thereunder;

 

4.1.7            use its reasonable
best efforts to cause all such Qualified Registrable Securities covered by such
registration statement to be listed on any securities exchange, if any, on
which similar securities of the Company are then listed, if the listing of such
Qualified Registrable Securities is then permitted under the rules of such
exchange;

 

4.1.8            enter into customary
agreements relating to the registration, including an underwriting agreement in
customary form;

 

4.1.9            subject to the
execution of confidentiality agreements, in form and substance satisfactory to
the Company, (1) make reasonably available for inspection by any seller of such
Qualified Registrable Securities, any underwriter (if any), the Representative
Counsel (as defined herein), and any legal counsel, accountant or other agent
retained by any such underwriter or Representative Counsel, all financial and
other records, relevant corporate documents, and properties of the Company, and
(2) cause the Company’s directors, officers, employees, counsel and independent
public accountants to supply all information reasonably requested by, and to
respond to inquiries from, any such seller, underwriter, Representative
Counsel, legal counsel, attorney, accountant or agent in connection with such
registration statement, in each instance to the extent that such information is
reasonably necessary to satisfy any of its obligations under applicable law;

 

9

 

4.1.10      use its
reasonable best efforts to obtain an appropriate opinion from counsel for the
Company and a “cold comfort” letter from the Company’s independent public accountants, each in customary form and
covering such matters of the type customarily covered by opinions of
counsel and cold comfort letters in similar registrations; provided, however, that the failure to obtain such opinion
or letter, or the provision of any such opinion or letter in a form not
satisfactory to any seller whose Qualified Registrable Securities are covered
by such registration statement, notwithstanding the Company’s reasonable best
efforts, shall not give rise to any
action, at law or in equity, for damages or injunctive or other relief, but
rather shall only entitle such seller
to withdraw his Qualified Registrable Securities from such registration statement pursuant to Section 4.4;

 

4.1.11      provide (1)
each Holder of such Qualified Registrable Securities, (2) each underwriter (which, for purposes of this Agreement, shall
include any person deemed to be an
underwriter within the meaning of Section 2(11) of the Securities Act), if any,
of the securities being sold, (3) counsel for such underwriters, and (4)
the Representative Counsel the opportunity to participate in the preparation of
such registration statement, each amendment or supplement thereto, each prospectus included therein or filed with the
Commission, and each amendment or
supplement thereto;

 

4.1.12      promptly notify each selling Holder of Qualified
Registrable Securities and each
managing underwriter (if any) and, upon request by any such person, confirm such
advice in writing, (1) when such registration statement, the prospectus or any
prospectus supplement or post-effective
amendment has been filed, and, with respect to such registration statement or any post-effective amendment
thereto, when the same has become effective, (2) of the issuance by the Commission of any stop order
suspending the effectiveness of such registration
statement or the initiation of any proceeding for such purpose, or (3) of the
receipt by the Company of any notification with respect to the suspension of
the registration or qualification of
such Qualified Registrable Securities for sale in any jurisdiction or the
initiation of any proceeding for
such purpose;

 

4.1.13      use its reasonable best efforts to obtain the
withdrawal of any order suspending
the effectiveness of such registration statement or any post-effective
amendment thereto; and

 

4.1.14      notify each Holder of such Qualified Registrable
Securities of any proposal by the
Company to amend or waive any provision of this Agreement pursuant to Sections
11.2 and 11.10, respectively, and any amendment or waiver effected pursuant
thereto, which notice shall contain the
text of the amendment or waiver proposed or effected.

 

                       4.2                    Certain
Agreements by Holders. Each Holder of Qualified Registrable Securities
covered by a registration statement hereunder, (l) upon receipt of a notice
from the Company of the occurrence of any event of the kind described in
Section 4.1.5, shall forthwith discontinue such Holder’s disposition of
Qualified Registrable Securities pursuant to the registration statement
covering such Holder’s Qualified Registrable Securities until such Holder
receives the copies of the supplemented or amended prospectus contemplated by
Section 4.1.5, and (2) if so directed by the Company, shall deliver to the
Company, at the Company’s expense, all copies (other than permanent file
copies) then in such Holder’s possession of the prospectus

 

10

 

covering such Qualified Registrable Securities that was in effect at the
time of receipt of such notice. If the Company gives any such notice, the
period mentioned in Section 4.1.2 shall be extended by the number of days
during the period from and including the date of the giving of such notice to
and including the date when each Holder of any such Qualified Registrable
Securities covered has received the copies of the supplemented or amended
prospectus contemplated by Section 4.1.5.

 

4.3                     Representative
Counsel. In connection with the preparation and review pursuant to this Agreement of any registration
statement, prospectus, or amendment or supplement
thereto, the sellers (including the participating Holders, but excluding the
Company) of a majority of the
securities of the Company included in such registration shall choose legal counsel (“Representative Counsel”) who shall
participate in the registration process on behalf of all of such sellers, coordinate requests by such
sellers for information from the Company, and act as the liaison between such sellers or their
individual counsel, accountants and agents and the Company. 
The Company shall establish reasonable procedures for the selection of
the Representative Counsel.

 

4.4                     Withdrawal. If any Holder participating in a registration hereunder disapproves of the terms of any offering, the sole
remedy of such Holder shall be, in its discretion,
to withdraw such Holder’s Qualified Registrable Securities and other securities
of the Company therefrom by giving written notice to the Company and any
managing underwriter (if any). The Holder’s Qualified Registrable
Securities and other securities of the Company so withdrawn from the offering also shall be withdrawn from registration.
If the Holders participating in such
registration withdraw all Qualified Registrable Securities from the offering, the Company may withdraw the registration, and if
such registration was commenced pursuant to a Demand Request, such registration shall nevertheless be counted as a
Demand Registration effected hereunder; provided, however, that such
registration shall not be so counted if (1) a majority
of the Holders participating therein withdraw all Qualified Registrable
Securities from the offering solely as
a result of the circumstances described in Section 4.1.10, or (2) the Company
or the managing underwriter advises the participating Holders, or makes a
public announcement, that there has been a
material adverse change in the condition, business or prospects of the Company.

 

4.5                     Information.      Upon written request by the Company, each seller
of Qualified Registrable Securities
or other securities of the Company pursuant to a registration hereunder shall
furnish the Company with information regarding such seller and the intended distribution
of such seller’s Qualified Registrable Securities or other securities of the
Company included in such registration for
the purpose of preparing the registration statement, to the extent that
such information is required to comply with applicable legal requirements. If
any such registration statement refers to any Holder by name or otherwise as
the Holder of any securities of the Company, then such Holder shall have the
right to require (1) the insertion therein of language,
in form and substance satisfactory to such Holder, to the effect that the
holding by such Holder of such
securities is not to be construed as a recommendation by such Holder of the investment quality of the securities covered
thereby and that such holding does not imply that such Holder will
assist in meeting any future financial requirements of the Company, or (2) the
deletion of such reference to such Holder if, in the judgment of the Company,
as advised by

 

11

 

counsel, such reference is not required by the
Securities Act or any similar federal statute or any state securities of blue
sky law then in effect.

 

5.                            Registration Expenses.

 

5.1                     Responsibility for Payment. Regardless of whether any registration pursuant to this Agreement becomes effective, all
expenses incident to the Company’s performance
of or compliance with this Agreement, including, without limitation, all
registration statement filing fees, National Association of Securities
Dealers’ fees, fees and expenses of compliance with state securities or blue
sky laws, printing and engraving expenses and fees, and disbursements of
counsel for the Company, the Representative Counsel and the independent
certified public accountants for the Company, underwriters (if any) (excluding
the discounts, commissions and transfer
taxes with respect thereto and the amounts to be paid by such underwriters) and
other persons retained by the Company shall be paid by the Company; provided,
however, that each seller of Qualified Registrable Securities or other
securities of the Company shall pay any
underwriting discounts and selling commissions and transfer taxes applicable to the Qualified Registrable Securities
or other securities of the Company sold by such seller as aforesaid.

 

6.                            Indemnification.

 

6.1                     Indemnification
by the Company. The Company shall indemnify and hold harmless, with respect
to any registration statement filed by it, to the fullest extent permitted by
law, each Holder who is a seller of Qualified Registrable Securities covered by
such registration statement, its officers,
directors, employees, agents and general or limited partners (and the directors,
officers, employees and agents thereof), and each other person, partnership,
trust, corporation, joint venture,
unincorporated organization or government or any department or agency thereof (“Person”), if any, who controls
such Holder within the meaning of the Securities Act (collectively, “Holder Indemnified Parties”) against all losses,
claims, damages, liabilities and expenses, joint or several (including
reasonable fees of counsel and any amounts paid in settlement effected with the Company’s consent, which consent shall not
be unreasonably withheld), to which
any such Holder Indemnified Party may become subject under the Securities Act,
at common law or otherwise, insofar as such losses, claims, damages,
liabilities or expenses (or actions or proceedings, whether commenced or
threatened, in respect thereof) are caused by (1) any untrue statement or
alleged untrue statement of a material fact contained in any registration
statement in which such Qualified Registrable Securities were included as
contemplated hereby or the omission or alleged omission to state therein a
material fact required to be stated therein
or necessary to make the statements therein not misleading, (2) any untrue statement
or alleged untrue statement of a material fact contained in any preliminary,
final or amended or supplemented prospectus, together with the documents
incorporated by reference therein (as amended or supplemented if the Company
shall have filed with the Commission any amendment
thereof or supplement thereto), or the omission or alleged omission to state
therein a material fact required to be stated therein or necessary in
order to make the statements therein, in the light of the circumstances under
which they were made, not misleading, or (3) any violation by the Company of
any federal, state or common law rule or regulation applicable to the Company
and relating to action of or inaction by the Company in connection with any
such registration; and in each such case, the Company shall reimburse each such
Holder Indemnified

 

12

 

Party for any reasonable legal or any other expenses
incurred by any of them in connection with investigating or defending any such
loss, claim, damage, liability, expense, action or proceeding; provided,
however, that the Company shall not be liable to any such Holder Indemnified
Party in any such case to the extent that any such loss, claim, damage,
liability or expense (or action or proceeding, whether commenced or threatened,
in respect thereof) arises out of or is based upon any untrue statement or
alleged untrue statement or omission or alleged omission made in such
registration statement or amendment thereof or supplement thereto or in any such
preliminary, final or amended or supplemented prospectus in reliance upon and
in conformity with written information furnished to the Company by or on behalf
of any such Holder Indemnified Party relating to such Holder Indemnified Party
expressly for use in the preparation thereof; and provided further, that the
Company shall not be liable to any such Holder Indemnified Party with respect
to any preliminary prospectus to the extent that any such loss, claim, damage,
liability or expense of such Holder Indemnified Party results from the fact
that such Holder Indemnified Party sold Qualified Registrable Securities to a
person to whom there was not sent or given, at or before the written
confirmation of such sale, a copy of the prospectus (excluding documents
incorporated by reference) or of the prospectus as then amended or supplemented
(excluding documents incorporated by reference) if the Company has previously
furnished copies thereof to such Holder Indemnified Party in compliance with
Section 4 and the loss, claim, damage, liability or expense of such Holder
Indemnified Party results from an untrue statement or omission of a material
fact contained in such preliminary prospectus which was corrected in the
prospectus (or the prospectus as amended or supplemented). Such indemnity and
reimbursement of expenses obligations shall remain in full force and effect
regardless of any investigation made by or on behalf of the Holder Indemnified
Parties and shall survive the transfer of such securities by such Holder.

 

6.2                     Indemnification
by Holders. Each Holder of Qualified Registrable Securities participating
in any registration hereunder shall indemnify and hold harmless, to the fullest
extent permitted by law, the Company, each other Holder of Qualified Registrable
Securities participating in such registration, and their respective directors,
officers, employees and agents, and each Person who controls the Company or
each such other Holder (within the meaning of the Securities Act)
(collectively, “Company Indemnified Parties”) against all losses, claims,
damages, liabilities and expenses, joint or several (including reasonable fees
of counsel and any amounts paid in settlement effected with such indemnifying
Holder’s consent, which consent shall not be unreasonably withheld), to which
any Company Indemnified Party may become subject under the Securities Act, at
common law or otherwise, insofar as such losses, claims, damages, liabilities
or expenses (or actions or proceedings, whether commenced or threatened, in respect
thereof) are caused by (1) any untrue statement or alleged untrue statement of
a material fact contained in any registration statement in which such Holder’s
Qualified Registrable Securities were included or the omission or alleged
omission to state therein a material fact required to be stated therein or
necessary to make the statements therein not misleading, (2) any untrue
statement or alleged untrue statement of a material fact contained in any
preliminary, final or amended or supplemented prospectus, together with the
documents incorporated by reference therein (as amended or supplemented if the
Company shall have filed with the Commission any amendment thereof or
supplement thereto), or the omission or alleged omission to state therein a
material fact required to be stated therein or necessary in order to make the
statements therein, in the light of the circumstances under which they were
made, not misleading to the extent, but only to the extent, in the cases
described in clauses (1) and (2), that

 

13

 

such untrue statement or omission is contained in any
information furnished in writing by such Holder relating to such Holder
expressly for use in connection with such registration and if the Company does
not know, at the time such information is included in the registration
statement, prospectus, preliminary prospectus, amendment or supplement, that
such information is false or misleading, (3) any violation by such Holder of
any federal, state or common law, rule or regulation applicable to such Holder
and relating to action of or inaction by such Holder in connection with any
such registration, and (4) with respect to any preliminary prospectus, the fact
that such Holder sold Qualified Registrable Securities to a person to whom
there was not sent or given, at or before the written confirmation of such
sale, a copy of the prospectus (excluding documents incorporated by reference)
or of the prospectus as then amended or supplemented (excluding documents incorporated
by reference) if the Company has previously furnished copies thereof to such
Holder in compliance with Section 4 and the loss, claim, damage, liability or
expense of such Company Indemnified Party results from an untrue statement or
omission of a material fact contained in such preliminary prospectus which was
corrected in the prospectus (or the prospectus as amended or supplemented). The
aggregate amount which any such Holder shall be required to pay pursuant to
this Section 6.2 shall be limited to the dollar amount of proceeds received by
such Holder upon the sale of the Qualified Registrable Securities and other
securities of the Company (after deducting any underwriting commissions,
discounts and transfer taxes applicable thereto) pursuant to the registration
statement giving rise to such claim. Such indemnity obligation shall remain in
full force and effect regardless of any investigation made by or on behalf of
the Company Indemnified Parties (except as provided above) and shall survive
the transfer of such securities by such Holder.

 

6.3                     Conduct of
Indemnification Proceedings. Promptly after receipt by an indemnified party
under Section 6.1 or 6.2 of written notice of the commencement of any action,
suit, proceeding, investigation or threat thereof made in writing with respect
to which a claim for indemnification may be made pursuant to this Section 6,
such indemnified party shall, if a claim in respect thereto is to be made
against an indemnifying party, give written notice to the indemnifying party of
the threat or commencement thereof; provided, however, that the failure so to
notify the indemnifying party shall not relieve it from any liability which it
may have to any indemnified party except to the extent that the indemnifying
party is actually prejudiced by such failure to give notice. If any such claim
or action referred to under Section 6.1 or 6.2 is brought against any
indemnified party and it then notifies the indemnifying party of the threat or
commencement thereof, the indemnifying party shall be entitled to participate
therein and, to the extent that it wishes, jointly with any other indemnifying
party similarly notified, to assume the defense thereof with counsel reasonably
satisfactory to such indemnified party (who shall not, except with the consent
of the indemnified party, be counsel to the indemnifying party). After notice
from the indemnifying party to such indemnified party of its election to assume
the defense of any such claim or action, the indemnifying party shall not be liable
to such indemnified party under this Section 6 for any legal expenses of
counsel or any other expenses subsequently incurred by such indemnified party
in connection with the defense thereof other than reasonable costs of
investigation unless the indemnifying party has failed to assume the defense of
such claim or action or to employ counsel reasonably satisfactory to such
indemnified party. The indemnifying party shall not be required to indemnify
the indemnified party with respect to any amounts paid in settlement of any
action, proceeding or investigation entered into without the written consent of
the indemnifying party, which consent shall not be unreasonably withheld. No
indemnifying party shall consent to the entry of any judgment or enter into any

 

14

 

settlement without the consent of the indemnified
party unless (1) such judgment or settlement does not impose any obligation or
liability upon the indemnified party other than the execution, delivery or
approval thereof, and (2) such judgment or settlement includes as an
unconditional term thereof the giving by the claimant or plaintiff to such
indemnified party of a full release and discharge from all liability in respect
of such claim for all persons that may be entitled to or obligated to provide
indemnification or contribution under this Section 6.

 

6.4                     Additional
Indemnification. Indemnification similar to that specified in the preceding
subsections of this Section 6 (with appropriate modifications) shall be given
by the Company and each seller of Qualified Registrable Securities with respect
to any required registration or qualification of securities under any state
securities or blue sky laws.

 

6.5                     Contribution.
If the indemnification provided for in this Section 6 is unavailable to or
insufficient to hold harmless an indemnified party under Section 6.1 or 6.2,
then each indemnifying party shall contribute to the amount paid or payable by
such indemnified party as a result of the losses, claims, damages, liabilities
or expenses (or actions or proceedings in respect thereof) referred to in
Section 6.1 or 6.2 in such proportion as is appropriate to reflect the relative
fault of the indemnifying party on the one hand and the indemnified party on the
other in connection with the statements, omissions, actions or inactions which
resulted in such losses, claims, damages, liabilities or expenses. The relative
fault of the indemnifying party and the indemnified party shall be determined
by reference to, among other things, whether the untrue or alleged untrue
statement of a material fact or the omission or alleged omission to state a
material fact relates to information supplied by the indemnifying party or the
indemnified party, any action or inaction by any such party, and the parties’
relative intent, knowledge, access to information and opportunity to correct or
prevent such statement, omission, action or inaction. The amount paid or
payable by an indemnified party as a result of the losses, claims, damages,
liabilities or expenses (or actions or proceedings in respect thereof) pursuant
to this Section 6.5 shall be deemed to include any reasonable legal or other
expenses incurred by such indemnified party in connection with investigating or
defending any such action or claim (which shall be limited as provided in
Section 6.3 if the indemnifying party has assumed the defense of any such
action in accordance with the provisions thereof) which is the subject of this
Section 6.5. No person guilty of fraudulent misrepresentation (within the
meaning of Section 11(f) of the Securities Act) shall be entitled to
contribution from any person who was not guilty of such fraudulent
misrepresentation. Promptly after receipt by an indemnified party under this
Section 6.5 of written notice of the commencement of any action, suit,
proceeding, investigation or threat thereof made in writing with respect to
which a claim for contribution may be made against an indemnifying party under
this Section 6.5, such indemnified party shall, if a claim for contribution in
respect thereto is to be made against an indemnifying party, give written
notice to the indemnifying party in writing of the commencement thereof (if the
notice specified in Section 6.3 has not been given with respect to such
action); provided, however, that the failure to so notify the indemnifying
party shall not relieve it from any obligation to provide contribution which it
may have to any indemnified party under this Section 6.5 except to the extent
that the indemnifying party is actually prejudiced by the failure to give
notice. Notwithstanding anything in this Section 6.5 to the contrary, no
indemnifying party (other than the Company) shall be required pursuant to this
Section 6.5 to contribute any amount which exceeds the amount by which the
dollar amount of the proceeds received by such indemnifying party from the sale
of Qualified Registrable Securities and other securities of the Company (after
deducting any

 

15

 

underwriting commissions, discounts and transfer taxes
applicable thereto) in the offering to which the losses, claims, damages,
liabilities or expenses of the indemnified parties relate exceeds the amount of
any losses, claims, damages, liabilities and expenses which such indemnifying
party has otherwise been required to pay as indemnity or contribution hereunder
by reason of such losses, claims, damages, liabilities or expenses.

 

The parties hereto agree
that it would not be just and equitable if contribution pursuant to this
Section 6.5 were determined by pro rata allocation or by any other method of
allocation which does not take account of the equitable considerations referred
to in the immediately preceding paragraph.

 

If indemnification is
available under this Section 6, the indemnifying parties shall indemnify each
indemnified party to the fullest extent provided in Sections 6.1 and 6.2,
without regard to the relative fault of said indemnifying party or indemnified
party or any other equitable consideration provided for in this Section 6.5.
The provisions of this Section 6.5 shall be in addition to any other rights to
indemnification or contribution which any indemnified party may have pursuant
to law or contract, shall remain in full force and effect regardless of any
investigation made by or on behalf of any indemnified party, and shall survive
the transfer of securities by any such party.

 

6.6                     Indemnification
and Contribution of Underwriters. In connection with any underwritten
offering contemplated by this Agreement which includes Qualified Registrable
Securities, the Company and all sellers of Qualified Registrable Securities
included in any registration statement shall agree to customary provisions for
indemnification and contribution (consistent with the other provisions of this
Section 6) in respect of losses, claims, damages, liabilities and expenses of
the underwriters of such offering.

 

7.                          Participation
in Underwritten Registrations. In the case of any registration under
Section 3, if the majority of the Sponsor Holders of the Qualified Registrable
Securities to be included therein who made the Demand Request or the Company
determine to enter into an underwriting agreement in connection therewith, or
in the case of a registration under Section 2, if the Company determines to
enter into an underwriting agreement in connection therewith, (1) all shares of
Qualified Registrable Securities or other securities of the Company to be
included in such registration shall be subject to such underwriting agreement,
which shall be in customary form and contain such terms as are customarily
contained in such agreements, and (2) no person may participate in any such
registration unless such person (a) agrees to sell such person’s securities on
the basis provided in such underwriting arrangement and (b) completes and
executes all questionnaires, powers-of-attorney, indemnities, underwriting
agreements and other documents reasonably required under the terms of such
underwriting arrangements.

 

8.                          Rights
to Withdraw From Registration. If as a result of the proration provisions
of Sections 2.2 and 3.4, any Holder is not entitled to include all of such
Holder’s Qualified Registrable Securities in a registration that such Holder
has requested to be included, then after the delivery to such Holder of notice
thereof from the Company, such Holder may elect to withdraw his request to
include such Holder’s Qualified Registrable Securities in such registration
(“Withdrawal Election”); provided, however, that a Withdrawal Election shall be
irrevocable and, after making a Withdrawal Election, a Holder shall no longer
have any right to

 

16

 

include such Holder’s
Qualified Registrable Securities in the registration as to which such Withdrawal
Election was made. If as a result of Withdrawal Elections (but after the
Company has included in such registration in place of such withdrawn Qualified
Registrable Securities such additional Qualified Registrable Securities or
other securities of the Company to be sold by the Company or held by other
Holders or other sellers whose Qualified Registrable Securities or other
securities of the Company were excluded as a result of the proration provisions
of Sections 2 and 3), less than the Requisite Amount of Qualified Registrable
Securities and other securities of the Company are requested to be included in
a registration, the Company, in its sole discretion, may give written notice to
all Holders who have requested that such Holders’ Qualified Registrable
Securities be included in a registration and who have not made a Withdrawal
Election that the Company has determined not to proceed with such registration
and, thereupon, shall be relieved of its obligation to register any Qualified
Registrable Securities in connection with such abandoned registration (without
prejudice, however, to the Holders’ rights to have Qualified Registrable
Securities registered pursuant to Section 2 and the Holders’ rights to have
Qualified Registrable Securities registered pursuant to Section 3 in the
future). Any such abandoned registration shall not be counted as a Demand
Registration for purposes of Section 3.

 

9.                          Limitations on Sale or Distribution of Other
Securities.  If requested in writing by (1) the
Company or (2) the managing underwriter (if any) of (a) a registration in
connection with the Initial Public Offering or (b) any underwritten
registration contemplated by Section 2 or 3 declared effective after the
completion of the Initial Public Offering (“Subsequent Registration”), each
Holder hereby agrees not to effect any public offering, sale or distribution
(including any sale pursuant to Rule 144 under the Securities Act) of any
Qualified Registrable Securities or any other Common Equity Securities or any
other security of the Company (other than as part of such underwritten public
offering) within (i) 90 days after the effective date of a registration
statement filed in connection with the Initial Public Offering (or up to 180
days if required by the underwriters), and (ii) 45 days after the effective
date of the Subsequent Registration (or up to 90 days if required by the
underwriters). The Company, in its sole discretion, may waive, as to any one or
more Holders, the restrictions contained in this Section 9 as they apply to a
Subsequent Registration.

 

10.                    Termination.
 This Agreement and all rights and
obligations of the parties hereto under this Agreement shall terminate upon the
earlier of (1) the written agreement of the Holders of at least 90% of the
Shares Subject to this Agreement; provided that for so long as the Stockholders
Agreement is in effect, the Voting Representative (as defined therein) for each
Designated Holder Group (as defined therein) shall be exclusively authorized to
act on behalf of and as directed by each Holder included in such Designated
Holder Group for such purpose and (2) when all outstanding Qualified
Registrable Securities may be sold under Rule 144 or another similar exemption
in any three month period; provided, however, that the indemnification and
contribution rights and obligations shall not terminate and shall survive
forever.

 

11.                    Miscellaneous Provisions.

 

11.1               Subsequent Holders; After-Acquired Qualified
Registrable Securities.

 

11.1.1      The Company anticipates that there will be additional issuances of
Qualified Registrable Securities. Any purchaser of Qualified Registrable
Securities from the

 

17

 

Company may become, upon the written consent of at
least the Required Voting Percentage at the time thereof, a party to this
Agreement by executing (and causing such purchaser’s spouse, if any, to
execute) a counterpart of the signature page of this Agreement, such
signature(s) being evidence of such purchaser’s (and such spouse’s) agreement to
be bound by all of the provisions of this Agreement. Once such purchaser (and
such spouse, if any) has executed this Agreement, the term “Holder” shall
include such purchaser; the terms “Qualified Registrable Securities” and
“Common Equity Securities” shall include the Qualified Registrable Securities
and Common Equity Securities then held by such purchaser.

 

11.1.2      The terms “Qualified
Registrable Securities” and “Common Equity Securities” also shall include any
Common Equity Securities acquired by any Holder after the Effective Date so
long as such Holder (and such Holder’s spouse, if any) has executed a
counterpart of this Agreement.

 

11.1.3      Each Holder may assign its
rights hereunder in connection with any transfer of its Qualified Registrable
Securities to a Permitted Transferee. To enjoy the benefits of this Agreement,
any such Permitted Transferee must become (1) a record holder of such Qualified
Registrable Securities and (2) a party hereto within 60 days after such
transfer (unless waived in writing by the Company) by executing (and causing
such transferee’s spouse, if any, to execute) a counterpart of this Agreement
and delivering such executed counterpart to the Company. Any such Permitted
Transferee who meets such conditions shall become, for the purposes hereof, a
“Holder.”

 

11.1.4      Notwithstanding the
foregoing, no rights hereunder shall inure to the benefit of, or be exercisable
by, any transferee or assignee acquiring Qualified Registrable Securities in a
public sale or public distribution.

 

11.2               Changes in
Outstanding Securities.  The
provisions of this Agreement regarding Common Equity Securities, Qualified
Registrable Securities and Requisite Amount shall apply to securities of the
Company or any successor or assignee of the Company (whether by merger,
consolidation, sale of assets or otherwise) that may be issued in respect of,
or by reason of any share issuance, share dividend, share split, reverse share
split, combination, recapitalization, reclassification, merger, amalgamation,
consolidation or otherwise. Upon the occurrence of any of such events, the
definitions of Common Equity Securities, Qualified Registrable Securities and
Requisite Amount shall be appropriately modified by the Board of Directors of
the Company.

 

11.3               Exchange Act Registration.
 If the Company files a registration
statement pursuant to Section 12 of the Securities Exchange Act of 1934, as
amended (“Exchange Act”), or a registration statement pursuant to the
Securities Act in respect of any Common Equity Securities, the Company shall
timely file the reports required to be filed by it under the Exchange Act and
the Securities Act (including, without limitation, the reports under Sections
13 and 15(d) of the Exchange Act referred to in Rule 144(c)(l) under the
Securities Act), and shall take such further action as any Holder of Qualified
Registrable Securities may reasonably request, all to the extent required from
time to time to enable such Holder to sell Qualified Registrable Securities
without registration under the Securities Act within the limitations of the
exemption provided by Rule 144 under the Securities Act; provided, however,
that the Company, upon

 

18

 

approval of the Required Voting Percentage and five
days’ prior written notice to each Holder, may withdraw any such registration
at any time that it is permitted to do so under the Exchange Act. Upon the request of any Holder of Qualified
Registrable Securities, the Company shall deliver to such Holder a written statement as to whether it has complied
with the requirements of this Section 11.3.

 

11.4               Spouse.  Each individual Holder, if any, shall cause
his or her spouse (and any subsequent spouse) to execute and deliver, upon the
request of the Company, a counterpart of this Agreement. The spouses of
individual Holders, by their execution of this Agreement, (1) evidence that
they are fully aware of, understand and fully consent and agree to the
provisions of this Agreement and its binding effect upon any community property
or similar marital property interests in the Qualified Registrable Securities
or other securities of the Company they may now or hereafter own, and (2) agree
that the termination of their marital relationship with any individual Holder
for any reason shall not have the effect of removing any Qualified Registrable
Securities or other securities of the Company otherwise subject to this
Agreement from the coverage hereof.

 

11.5               Employee Matters.
 Each Holder, if an employee of the
Company or any of its subsidiaries, acknowledges and agrees that neither the
acquisition of securities of the Company by such Holder nor the execution of
this Agreement by the Company or such Holder creates any obligation whatsoever
by the Company or any of its subsidiaries to continue such Holder’s employment
or otherwise affects the Company’s right to terminate such Holder’s employment
at will, with or without cause in the sole discretion of the Company or any of
its subsidiaries which is an employer of such Holder.

 

11.6               Inspection.  For so long as this Agreement shall be in
effect, this Agreement and a complete list of the names and addresses of all of
the Holders of Qualified Registrable Securities shall be made available for
inspection and copying on any business day by any Holder of Qualified
Registrable Securities at the offices of the Company at the address thereof set
forth in Section 11.8.

 

11.7               Conflict with
Other Agreements.  If any provision
of this Agreement conflicts with any registration rights provision of any other
agreement to which the Company is or may become a party, the registration
rights provision of this Agreement shall control to the extent of such
conflict.  At any time prior to the
termination of this Agreement pursuant to Section 10, the Company shall not
grant additional registration rights without obtaining the written consent of
at least the Required Voting Percentage at the time thereof.

 

11.8               Notices and
Other Communications.  All notices,
requests and other communications required or permitted to be given to the
Company or any Holder in connection herewith (1) must be in writing and (2) may
be served either by (a) depositing the same in the United States mail, full
postage prepaid, certified or registered with return receipt requested, (b)
delivering the same by a nationally recognized air courier service requiring
acknowledgment of delivery, full delivery cost paid, (c) delivering the same in
person, or (d) sending a telecopy of the same (confirmed by appropriate
answerback), confirmed with a copy thereof delivered either by mail or air
courier service or in person as provided herein. Any such notice, request or
other communication shall be effective only if and when it is received by the
addressee; provided that

 

19

 

notice received by telecopier
other than during the recipient’s normal business hours will be effective at the beginning of the recipient’s
next business day. For the purposes hereof, the addresses of the parties hereto are as follows: (1) the Company —
Panolam Holdings Co., 20 Progress Drive, Shelton, Connecticut 06484, Attention:
Chief Executive Officer; and (2) the Holders
— the addresses shown on the stock transfer records of the Company. Any party
hereto may change its address for the purposes hereof by giving written
notice of such change of address to the Company in the manner provided herein.

 

11.9               Entire Agreement.
 This Agreement constitutes the full
understanding of the parties and a complete and exclusive statement of the
terms and conditions of their agreement relating to the subject matter hereof
and supersedes all prior negotiations, understandings and agreements, whether
written or oral, between the parties, their affiliates, and their respective
principals, stockholders, directors, officers, employees, consultants and
agents with respect thereto.

 

11.10         Amendments and Waivers.
 Except as otherwise provided herein, no
alteration, modification, amendment, change or waiver of any provision of this
Agreement shall be effective or binding on any party hereto unless the same is
in writing and is executed by the Company and the Holders of at least the
Required Voting Percentage at the time thereof; provided, however, that (1) any
change to Section 10 or this Section 11.10 shall require the written agreement
of the Holders of at least 90% of the Shares Subject to this Agreement;
provided that so long as the Stockholders Agreement is in effect, the Voting
Representative (as defined therein) for each Designated Holder Group (as
defined therein) shall be exclusively authorized to act on behalf of and as
directed by each Holder included in such Designated Holder Group for such
purpose; (2) the Company may amend this Agreement without the consent of any
Holder to cure any ambiguity or to cure, correct or supplement any defective
provision contained herein; and (3) in no event shall an amendment adversely,
or in a manner different from any other Holder, affect such Holder’s rights and
obligations without such Holder’s prior written consent.

 

11.11         Modification and
Severability.  If a court of
competent jurisdiction declares that any provision of this Agreement is
illegal, invalid or unenforceable, then such provision shall be modified
automatically to the extent necessary to make such provision fully legal, valid
or enforceable. If such court does not modify any such provision as
contemplated herein, but instead declares it to be wholly illegal, invalid or
unenforceable, then such provision shall be severed from this Agreement, this
Agreement and the rights and obligations of the parties hereto shall be
construed as if this Agreement did not contain such severed provision, and this
Agreement otherwise shall remain in full force and effect.

 

11.12         Enforceability.  This Agreement shall be enforceable by and
against the Company, the Holders and their respective spouses, guardians,
heirs, legatees, executors, legal representatives, administrators, and
permitted successors and assignees.

 

11.13         No Third-Party
Beneficiaries.  No person or entity
not a party to this Agreement (other than any person that may become a Holder
Indemnified Party pursuant to Section 6.1) shall have rights under this
Agreement as a third-party beneficiary or otherwise.

 

20

 

11.14         Remedies.  Each party hereto acknowledges that in the
event of any breach of this Agreement by such party, the other parties hereto
(1) would be irreparably and immediately harmed by such breach, (2) could not
be made whole by monetary damages, and (3) shall be entitled to temporary and
permanent injunctions (or their functional equivalents) to prevent any such
breach and/or to compel specific performance with this Agreement, in addition
to all other remedies to which such parties may be entitled at law or in equity
(in each case, without posting a bond or other security).   The remedies of each party hereto under this
Agreement shall be cumulative of each other and of the remedies available at
law or in equity. Any party’s full or partial exercise of any such remedy shall
not preclude any subsequent exercise by such party of the same or any other
remedy.

 

11.15         Governing Law.  This Agreement shall be governed by, construed
under, and enforced in accordance with the laws of the State of Delaware
without reference to the conflict-of-laws provisions thereof.

 

11.16         Multiple Counterparts.
 This Agreement may be executed by the
parties hereto in multiple counterparts, each of which shall be deemed an
original for all purposes, and all of which together shall constitute one and
the same instrument.

 

11.17         Limited Liability.  Notwithstanding any provision hereof, none of
the obligations of any party hereto or any of their respective affiliates that
is an entity under this Agreement shall be an obligation of any stockholder,
officer, director, member, limited partner or general partner of any of the
foregoing entities. Any liability or obligation of any party hereto arising out
of this Agreement shall be limited to and satisfied only out of the assets of
such party.

 

11.18         Termination of
Purchase Agreement.  This Agreement
shall be effective on the Effective Date. 
If the Purchase Agreement is terminated prior to the closing of the
Acquisition, this Agreement shall terminate and be of no further force or
effect.

 

21

 

This Agreement is
executed and delivered by the parties hereto and their respective spouses (if
any) on the dates indicated below to be effective as of the Effective Date.

 

	
   

  	
   

  	
   

  	
  COMPANY:

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  PANOLAM
  HOLDINGS CO.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  /s/ Robert J. Muller,
  Jr.

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  	
  Robert J. Muller, Jr.

  
	
   

  	
   

  	
   

  	
  Title:

  	
  Chief Executive Officer

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Date of execution:
  September 30, 2005

  

 

 

[SIGNATURE PAGE TO PANOLAM REGISTRATION RIGHTS
AGREEMENT]

 

 

HOLDERS

 

	
  Name and Signature

  	
   

  	
  Common
  Shares To Be Owned

  at the Effective Date

  	
   

  	
  Date of

  Execution

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Genstar Capital Partners IV, L.P.

  	
   

  	
                          
  Shares of

  	
   

  	
  September 30, 2005

  
	
   

  	
   

  	
  Common Stock

  	
   

  	
   

  
	
  By:  Genstar
  Capital IV, L.P., General Partner

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By:  Genstar
  IV GP LLC, General Partner

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Darren J. Gold

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Name: Darren J. Gold

  	
   

  	
   

  	
   

  	
   

  
	
  Title: Principal

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stargen IV, L.P.

  	
   

  	
                          
  Shares of

  	
   

  	
  September 30, 2005

  
	
   

  	
   

  	
  Common Stock

  	
   

  	
   

  
	
  By:  Genstar
  Capital IV, L.P., General Partner

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By:  Genstar
  IV GP LLC, General Partner

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Darren J. Gold

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Name: Darren J. Gold

  	
   

  	
   

  	
   

  	
   

  
	
  Title: Principal

  	
   

  	
   

  	
   

  	
   

  

 

 

[SIGNATURE PAGE TO PANOLAM REGISTRATION RIGHTS
AGREEMENT]

 

 

	
  Sterling Group Partners II, L.P.

  	
   

  	
                          
  Shares of

  	
   

  	
  September     , 2005

  
	
   

  	
   

  	
  Common Stock

  	
   

  	
   

  
	
  By:

  	
  Sterling Group Partners II GP, L.P.,

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  General Partner

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
  Sterling Group Investments, L.L.C

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  General Partner

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ John D. Hawkins

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Name: John D. Hawkins

  	
   

  	
   

  	
   

  	
   

  
	
  Title: Authorized Manager

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Sterling Group Partners II (Parallel), L.P.

  	
   

  	
                          
  Shares of

  	
   

  	
  September     , 2005

  
	
   

  	
   

  	
  Common Stock

  	
   

  	
   

  
	
  By:

  	
  Sterling Group Partners II GP, L.P.,

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  General Partner

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
  Sterling Group Investments, L.L.C.,

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  General Partner

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ John D. Hawkins

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Name: John D. Hawkins

  	
   

  	
   

  	
   

  	
   

  
	
  Title: Authorized Manager

  	
   

  	
   

  	
   

  	
   

  

 

 

[SIGNATURE PAGE TO PANOLAM REGISTRATION RIGHTS
AGREEMENT]

 

 

	
  Dwight
  Investments, LP

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
  /s/  Herbert
  M. Dwight

  	
   

  	
   

  	
   

  	
   

  
	
  Name: Herbert M. Dwight

  	
   

  	
   

  	
   

  
	
  Address:

  	
  1313 West Dry Creek Road

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Healdsburg, California 95448

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
								

 

 

	
  SPOUSE:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Name: 

  	
   

  	
   

  	
   

  	
   

  	
   

  
							

 

 

[SIGNATURE PAGE TO PANOLAM REGISTRATION RIGHTS
AGREEMENT]

 

 

	
  By:

  	
  /s/  John
  W. Salisbury, Jr.

  	
   

  	
   

  	
   

  	
   

  
	
  Name: John W.
  Salisbury, Jr.

  	
   

  	
   

  	
   

  
	
  Address:

  	
  128 Palo de Oro Drive

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Islamorada, FL 33036

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
								

 

 

	
  SPOUSE:

  	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  	
   

  	
  

  
	
  Name: 

  	
   

  	
   

  	
   

  	
   

  	
   

  
							

 

 

[SIGNATURE PAGE TO PANOLAM REGISTRATION RIGHTS AGREEMENT]

 

 

	
  By:

  	
  /s/  Thomas
  C. Hunt

  	
   

  	
   

  	
   

  	
   

  
	
  Name: Thomas C.
  Hunt

  	
   

  	
   

  	
   

  
	
  Address:

  	
  771 W. Ferry Street

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Buffalo, NY 14222

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
								

 

 

	
  SPOUSE:

  	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  	
   

  	
  

  
	
  Name: 

  	
   

  	
   

  	
   

  	
   

  	
   

  
							

 

 

[SIGNATURE PAGE TO PANOLAM REGISTRATION RIGHTS
AGREEMENT]

 

 

	
  By:

  	
  /s/  Lee Hess

  	
   

  	
   

  	
   

  	
   

  
	
  Name: Lee Hess

  	
   

  	
   

  	
   

  
	
  Address:

  	
    324 N. Drexel Ave.

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
    Bexley, OH 43209

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
								

 

 

	
  SPOUSE:

  	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  	
   

  	
  

  
	
  Name: 

  	
   

  	
   

  	
   

  	
   

  	
   

  
							

 

 

[SIGNATURE PAGE TO PANOLAM REGISTRATION RIGHTS
AGREEMENT]

 

 

	
  By:

  	
  /s/ Michael L. Hunt

  	
   

  	
   

  	
   

  	
   

  
	
  Name:

  	
  Michael L. Hunt

  	
   

  	
   

  	
   

  
	
  Address:

  	
    58 Cornertown Road

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
    Chambersburg, PA 17201

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
									

 

 

SPOUSE:

 

	
  By:

  	
   

  	
   

  	
   

  	
   

  
	
  Name:

  	
   

  	
   

  	
   

  	
   

  
						

 

 

[SIGNATURE PAGE TO PANOLAM REGISTRATION RIGHTS
AGREEMENT]

 

 

	
  By:

  	
  /s/ Reymond Kent Wallace

  	
   

  	
   

  	
   

  	
   

  
	
  Name:

  	
  Reymond Kent Wallace

  	
   

  	
   

  	
   

  
	
  Address:

  	
    Eight Greenway Plaza, Suite 702

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
    Houston, TX 77046

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
									

 

 

SPOUSE:

 

	
  By:

  	
  /s/ Mollie Phelan Wallace

  	
   

  	
   

  	
   

  
	
  Name:

  	
  Mollie Phelan Wallace

  	
   

  	
   

  	
   

  
						

 

 

[SIGNATURE PAGE TO PANOLAM REGISTRATION RIGHTS
AGREEMENT]

 

 

	
  By:

  	
  /s/ Robert J. Muller, Jr.

  	
   

  	
   

  	
   

  	
   

  
	
  Name:

  	
  Robert J. Muller, Jr.

  	
   

  	
   

  	
   

  
	
  Address:

  	
    52 Crosswicks Ridge Road

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
    Wilton, CT 06897

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
									

 

 

SPOUSE:

 

	
  By:

  	
  /s/ Mary E. Muller

  	
   

  	
   

  	
   

  
	
  Name:

  	
  Mary E. Muller

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
						

 

 

[SIGNATURE PAGE TO PANOLAM REGISTRATION RIGHTS
AGREEMENT]

 

 

	
  By:

  	
  /s/ Stephen C. Feuring

  	
   

  
	
  Name:

  	
  Stephen C. Feuring

  
	
  Address:

  	
    21 Post Falls Lane

  	
   

  
	
   

  	
    Hamden, CT 06518

  	
   

  
	
   

  	
   

  	
   

  
						

 

 

	
  SPOUSE:

  
	
   

  
	
  By:

  	
    /s/ Deborah E. Feuring

  	
   

  
	
  Name:

  	
    Deborah E. Feuring

  	
   

  
				

 

 

[SIGNATURE
PAGE TO PANOLAM REGISTRATION RIGHTS AGREEMENT]

 

 

	
  By:

  	
  /s/ Jeffrey M. Muller

  	
   

  
	
  Name:

  	
  Jeffrey M. Muller

  
	
  Address:

  	
    16 Baldwin Hill Road

  	
   

  
	
   

  	
    Litchfield, CT 06759

  	
   

  
	
   

  	
   

  	
   

  
						

 

 

	
  SPOUSE:

  
	
   

  
	
  By:

  	
    /s/ Melissa A. Muller

  	
   

  
	
  Name:

  	
    Melissa A. Muller

  	
   

  
				

 

 

[SIGNATURE
PAGE TO PANOLAM REGISTRATION RIGHTS AGREEMENT]

 

 

	
  By:

  	
  /s/ Richard Stoll

  	
   

  
	
  Name:

  	
  Richard Stoll

  
	
  Address:

  	
    45 Riverside Drive

  	
   

  
	
   

  	
    Milford, CT 06461-3917

  	
   

  
	
   

  	
   

  	
   

  
						

 

 

	
  SPOUSE:

  
	
   

  
	
  By:

  	
    /s/ Karen L. Stoll

  	
   

  
	
  Name:

  	
    Karen L. Stoll

  	
   

  
				

 

 

[SIGNATURE
PAGE TO PANOLAM REGISTRATION RIGHTS AGREEMENT]

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00130-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00130-of-00352.parquet"}]]