# EDGAR Filing Document

**Accession Number:** 0001824921
**File Stem:** 0001654954-25-007486
**Filing Date:** 2025-6
**Character Count:** 337454
**Document Hash:** 89b180d34238778e49aacd244338649f
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001654954-25-007486.hdr.sgml**: 20250627

**ACCESSION NUMBER**: 0001654954-25-007486

**CONFORMED SUBMISSION TYPE**: 1-SA

**PUBLIC DOCUMENT COUNT**: 7

**CONFORMED PERIOD OF REPORT**: 20250331

**FILED AS OF DATE**: 20250627

**DATE AS OF CHANGE**: 20250627

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Lighthouse Life Capital, LLC
- **CENTRAL INDEX KEY:** 0001824921
- **STANDARD INDUSTRIAL CLASSIFICATION:** LIFE INSURANCE [6311]
- **ORGANIZATION NAME:** 02 Finance
- **EIN:** 852947076
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 0930

**FILING VALUES:**
- **FORM TYPE:** 1-SA
- **SEC ACT:** 1933 Act
- **SEC FILE NUMBER:** 24R-00361
- **FILM NUMBER:** 251087143

**BUSINESS ADDRESS:**
- **STREET 1:** 1100 E. HECTOR STREET
- **STREET 2:** SUITE 415
- **CITY:** CONSHOHOCKEN
- **STATE:** PA
- **ZIP:** 194428
- **BUSINESS PHONE:** 445-200-5601

**MAIL ADDRESS:**
- **STREET 1:** 1100 E. HECTOR STREET
- **STREET 2:** SUITE 415
- **CITY:** CONSHOHOCKEN
- **STATE:** PA
- **ZIP:** 194428

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**FORM 1-SA**

**☒ SEMIANNUAL REPORT PURSUANT TO REGULATION A**

**or**

**☐ SPECIAL FINANCIAL REPORT PURSUANT TO REGULATION A**![](llc_1saimg1.jpg)

**For the fiscal semiannual period ended: <u>March 31, 2025</u>**

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| |
|:---|
| **LIGHTHOUSE LIFE CAPITAL, LLC** |
| (Exact name of issuer as specified in its charter) |

---

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| | |
|:---|:---|
| **Delaware** | **85-2947076** |
| (State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |

---

**100 E. Hector Street, Suite 415**

**<u>Conshohocken, PA 19428</u>**

(Full mailing address of principal executive offices)

**<u>(445) 200-5650</u>**

(Issuer's telephone number, including area code)

**Item 1. Management's Discussion and Analysis of Financial Condition and Results of Operations**

**Forward Looking Statements**

This Semi-Annual Report on Form 1-SA of Lighthouse Life Capital, LLC, a Delaware limited liability company, contains certain forward-looking statements that are subject to various risks and uncertainties. Forward-looking statements are generally identifiable by use of forward-looking terminology such as "may," "will," "should," "potential," "intend," "expect," "outlook," "seek," "anticipate," "estimate," "approximately," "believe," "could," "project," "predict," or other similar words or expressions. Forward-looking statements are based on certain assumptions, discuss future expectations, describe future plans and strategies, contain financial and operating projections or state other forward-looking information. Our ability to predict results or the actual effect of future events, actions, plans or strategies is inherently uncertain. Although we believe that the expectations reflected in our forward-looking statements are based on reasonable assumptions, our actual results and performance could differ materially from those set forth or anticipated in our forward-looking statements. Factors that could have a material adverse effect on our forward-looking statements and upon our business, results of operations, financial condition, funds derived from operations, cash flows, liquidity and prospects include, but are not limited to, the factors referenced in our offering circular dated January 9, 2023, filed with the Securities and Exchange Commission (the "SEC") on January 10, 2023 pursuant to Rule 253(g) (under the caption "RISK FACTORS" and which are incorporated herein by reference (https://www.sec.gov/Archives/edgar/data/1824921/000165495423000241/lls_1apos.htm).

When considering forward-looking statements, you should keep in mind the risk factors and other cautionary statements in this report. Readers are cautioned not to place undue reliance on any of these forward-looking statements, which reflect our views as of the date of this report. The matters summarized below and elsewhere in the offering circular could cause our actual results and performance to differ materially from those set forth or anticipated in forward-looking statements. Accordingly, we cannot guarantee future results or performance. Furthermore, except as required by law, we are under no duty to, and we do not intend to, update any of our forward-looking statements after the date of this report, whether as a result of new information, future events or otherwise.

*Unless the context otherwise requires or indicates, references in this semi-annual report to "us," "we," "our" or "our Company" refer to Lighthouse Life Capital, LLC, a Delaware limited liability company. References to a "Lawful Policyowner" refer to the owner of a life insurance policy obtained in accordance with applicable laws and the terms of the life insurance policy through (a) the initial purchase of the policy by persons with insurable interest in the individual insured under the policy, or (b) the acquisition of a policy through the assignment, bequest, gift, sale or other transfer executed under the terms of the policy, including but not necessarily limited to the contract's assignment, change of ownership, and/or change of beneficiary clauses. References to a "Lawful Purchaser" refer to purchaser of a life insurance policy from a Lawful Policyowner in accordance with applicable laws and the terms of the policy.*

**General**

Lighthouse Life Capital, LLC (the "Company") operates through four wholly-owned subsidiaries, Lighthouse Life Solutions, LLC ("Solutions"), Lighthouse Life Direct, LLC ("Direct"), Harbor Life Settlements ("HLS") and Settlement Benefits Association ("SBA"). Solutions was formed and began operations on February 9, 2018. Direct was formed and began operations on July 2, 2018. We acquired 100% of Solutions and Direct effective as of the date of our formation, July 8, 2020, from our sole member, LHL Strategies, Inc. ("LHLS"). Harbor Life Settlements was formed under Lighthouse Life Capital, LLC on June 14, 2024. Settlement Benefits Holdings was formed under Lighthouse Life Capital, LLC on August 5, 2024.

We filed an offering statement on Form 1-A, with the United States Securities and Exchange Commission, or the SEC, on December 4, 2020 (the "Initial Offering Statement"). The Initial Offering Statement was qualified by the SEC on December 30, 2020 and subsequently re-qualified following the filing of post- qualification amendments on February 1, 2022 and January 9, 2023. Pursuant to the Initial Offering Statement, we offered a maximum of $50.0 million in the aggregate of 8.5% senior beacon bonds (the "Class A Bonds") and 6.5% senior beacon bonds (the "Class B Bonds"), (collectively, the "Initial Bonds"). We commenced sales of the Initial Bonds in February 2021 and offered the Initial Bonds through December 30, 2023. As of the termination of the offering of the Initial Bonds we had sold 16,842 Class A Bonds and 8,199 Class B Bonds for an aggregate of approximately $25.0 million in gross proceeds. Proceeds from the offering were applied to general corporate purposes, including expenses related to originating and acquiring life insurance policies, including advertising and marketing, the payment or reimbursement of selling commissions and other fees, expenses and uses as described throughout this semiannual report.

The Company, including Solutions, Direct, Harbor, SBA or any subsidiary, has not entered into any arrangements creating a reasonable probability that we will originate or acquire a certain number of life insurance policies; however, the Merlion Park Trust (the "Merlion Trust") had a right of first refusal for the purchase of all life insurance policies originated by Lighthouse Life Solutions, LLC that met certain criteria as determined by the trustee acting in a fiduciary capacity as trustee on behalf of the Merlion Trust, in exchange for a fee. This right of first refusal remained active until June 1, 2023. We continue to sell policies to the Merlion Trust.

For the six months ended March 31, 2025 and March 31, 2024, we had sold $11.4 million and $8.2 million of net death benefit, respectively, in initial threshold purchase prices of policies to Merlion Trust.

During both the six months ended March 31, 2025 and 2024, the Company purchased policies, with the intent to resell them in the short-term. During the six months ended March 31, 2025 and March 31, 2024, the Company purchased $149,470 and $10,041, respectively. As of March 31, 2025 and March 31, 2024, the Company held $269,415 and $38,959 respectively.

We intend to make reserve allocations as necessary to (i) aid our objective of preserving capital for our investors and (ii) meet the necessary covenants of the Initial Bonds. If reserves and any other available income become insufficient to meet our covenants and cover our operating expenses and liabilities, it may be necessary to obtain additional funds through additional borrowing or the raising of equity capital. There is no assurance that such funds will be available, or if available, that the terms will be acceptable to us.

**Operating Results**

We operate on a fiscal year ending on September 30. Set forth below is a discussion of our operating results for the six months ended March 31, 2025 and for the six months ended March 31, 2024.

For the six months ended March 31, 2025 and March 31, 2024, our total revenues from operations amounted to $1.2 million and $458,053 respectively. The increase in revenue is attributed to changes to the evaluation of opportunities through an improved health questionnaire, increased efficiencies to identify quality leads and increased pipeline volume due to marketing efforts.

Total expenses for the six months ended March 31, 2025 were $3.9 million compared to the six months ended March 31, 2024 of $2.7 million. The increase was primarily related to increases attributable to the addition and transition period for HLS and SBA, specifically:

· Increase in payroll related costs (increase of $735,955) compared to the six months ended March 31, 2024, as a result of an increase in headcount and realignment of roles and responsibilities; and

· Increase in IT fees (increase of $129,840) as compared to the six months ended March 31, 2024 due to increased software licensing fees and additional fees associated with software reconfiguration and implementation requirements for HLS and SBA; and

· Increase in customer acquisition costs (increase of $113,194) as compared to the six months ended March 31, 2024 as a result of increasing cost effective direct advertising methods based on results of targeted marketing data; and

· Increase in professional fees (increase of $102,745) as compared to the six months ended March 31, 2024 as a result of expenses incurred related to business and asset acquisitions; and

· Increase in underwriting expenses (increase of $76,143) as compared to the six months ended March 31, 2024 as a result of an increased pipeline as a result of increased marketing efforts.

Net loss for the six months ended March 31, 2025 was $3.9 million compared to the six months ended March 31, 2024 of $3.6 million.

While we continue to monitor all aspects of our business, we pay special attention to the origination pipeline which represents life insurance policies in some stage of evaluation for acquisition. Just because a policy is in the pipeline does not mean that it will be acquired and generate revenue for us. However, as we continue to grow, we expect that this volatility will decline, and the predictability will increase.

**Liquidity and Capital Resources**

*Short-Term Liquidity*

We had a net loss of $3.9 million and had negative cash flows from operations of $5.2 million for the six months ended March 31, 2025. We had a net loss of $3.6 million and had negative cash flows from operations of $2.8 million for the six months ended March 31, 2024. As a result, we are currently funding our operations from debt and contributions from our sole member. Our sole member has previously funded the Company's operations using funds from financings and allocates operational expenses to the Company. Pursuant to the PPM (as defined herein), we anticipate funding our future operations using the proceeds of the follow-on offering of our indebtedness, as described below, or contributions of capital from the sole parent resulting from equity or other investments in the sole parent.

Our short- and long- term liquidity requirements primarily consist of operating expenses, repayment of indebtedness, comprised primarily of our Initial Bonds. We expect to meet our liquidity requirements through a combination of net cash provided by operations, remaining proceeds from the offering of the Initial Bonds, net proceeds from the Follow-On Offering, and contributions from LHLS which we expect will be made from capital activity at LHLS. The Company has available financing support to the extent necessary to meet its obligations from the Merlion Park Trust for at least one year from the issuance date of the financial statements. As of March 31, 2025, Brighton LH Trustees, LLC, on behalf of Merlion Park Trust, currently holds a majority of Preferred Shares of LHLS, and may nominate 3 Board members of LHLS—constituting a majority of the Board.

As of March 31, 2025, the Company had raised approximately $25.0 million in gross proceeds from the sale of the Initial Bonds. Management has determined that the Company's availability under its existing financing sources is expected to be adequate to meet its cash obligations for at least one year from the issuance date of these financial statements. During the six months ended March 31, 2025, the Company had net contributions of $9.0 million from our sole member, LHLS. As of March 31, 2025, the Company has capitalized $4.1 million of costs related to the Initial Bond offering. These costs are amortized over the life of the Initial Bonds.

During the six months ended March 31, 2025, our sole member, LHLS, provided contributions from notes payable. As of March 31, 2025 and September 30, 2024, our sole member, LHLS had $12.3 million and $0, respectively, of outstanding debt, which matures between 2026 and 2027. On June 10, 2024, LHLS entered into an Exchange Agreement with Brighton LH Trustees, LLC in which all outstanding notes payable due to Brighton LH Trustees, LLC as of June 10, 2024 were exchanged for 1,864.46 shares of Series A-2 Preferred Stock and a warrant to purchase shares of the capital stock of LHLS. As a result of the exchange agreement, all LHLS' obligations per the note agreements were satisfied. The Company is not an obligor on or guarantor of LHLS' debt. The Company anticipates that distributions of cash will be made from the Company to LHLS at least sufficient to pay expenses and liabilities of LHLS, as determined by LHLS.

As of March 27, 2025, the Company is offering a maximum of $50,000,000 in the aggregate, of its 11.0% senior beacon bonds (the "Class C Bonds"), its 11.50% senior beacon bonds (the "Class CR Bonds"), its 9.0% senior beacon bonds (the "Class D Bonds"), and its 9.50% senior beacon bonds (the "Class DR Bonds"), collectively the "Offered Beacon Bonds" via a Private Placement Memorandum (the "PPM"). LHL Strategies, Inc., is offering to each holder of the Offered Beacon Bonds a contingent value right (a "CVR") (together with the Offered Beacon Bonds the "Offered Securities"). As of March 31, 2025, there are no Offered Securities outstanding. During the six months ended March 31, 2025, the Company incurred costs of $283,169 for the issuance of the Offered Securities. All costs have been capitalized and are recorded as deferred assets in the accompanying consolidated balance sheets.

As of March 31, 2025 and September 30, 2024, we had cash and cash equivalents and restricted cash on hand of $1.1 million and $1.5 million, respectively.

**Item 2. Other Information**

None.

**Item 3. Financial Statements**

**Lighthouse Life Capital, LLC**

**(a Delaware limited liability company)**

**Consolidated Financial Statements**

**(unaudited)**

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| | |
|:---|:---|
| **Consolidated Financial Statements** (unaudited) |  |
| [Consolidated Balance Sheets for the Six Months ended March 31, 2025 (unaudited) and September 30, 2024](#bs) | F-2 |
| [Consolidated Statements of Operations for the Six Months ended March 31, 2025 and 2024 (unaudited)](#op) | F-3 |
| [Consolidated Statements of Member's Deficit for the Six Months ended March 31, 2025 and 2024 (unaudited)](#eq) | F-4 |
| [Consolidated Statements of Cash Flows for the Six Months ended March 31, 2025 and 2024 (unaudited)](#cf) | F-5 |
| [Notes to Consolidated Financial Statements](#nt) | F-6 |

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|:---|
| F-1 |
| *[**Table of Contents**](#toc)* |

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**Lighthouse Life Capital, LLC and subsidiaries**

**Consolidated Balance Sheets**

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| | | |
|:---|:---|:---|
|  | **March 31, 2025** | **September 30, 2024** |
| **ASSETS** | (unaudited) |  |
| CURRENT ASSETS |  |  |
| &nbsp;&nbsp;&nbsp; Cash & Cash Equivalents | $2452 | $453885 |
| &nbsp;&nbsp;&nbsp; Accounts Receivable | 639176 | 151350 |
| &nbsp;&nbsp;&nbsp; Prepaid Expenses | 82269 | 33517 |
| &nbsp;&nbsp;&nbsp; Life Insurance Policies, at Investment Method | 269415 | 132846 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; TOTAL CURRENT ASSETS | 993312 | 771598 |
| OTHER ASSETS |  |  |
| &nbsp;&nbsp;&nbsp; Deferred Assets | 283169 |  |
| &nbsp;&nbsp;&nbsp; Collateral Deposit | 100000 | 100000 |
| &nbsp;&nbsp;&nbsp; Restricted Cash | 1063448 | 1047177 |
| &nbsp;&nbsp;&nbsp; Goodwill | 3055068 | 3055068 |
| &nbsp;&nbsp;&nbsp; Intangible Assets, net of amortization of $9,000 and $1,000 | 151000 | 159000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; TOTAL OTHER ASSETS | 4652685 | 4361245 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; TOTAL ASSETS | $5645997 | $5132843 |
| **LIABILITIES** |  |  |
| CURRENT LIABILITIES |  |  |
| &nbsp;&nbsp;&nbsp; Accrued Expenses | $65012 | $256906 |
| &nbsp;&nbsp;&nbsp; Accrued Interest, Beacon Bonds | 130225 | 152040 |
| &nbsp;&nbsp;&nbsp; Accounts Payable | 279658 | 733858 |
| &nbsp;&nbsp;&nbsp; Current Portion Beacon Bonds, net | 5039426 | 5934107 |
| &nbsp;&nbsp;&nbsp; Current Portion Contingent Consideration | 330662 | 361332 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; TOTAL CURRENT LIABILITIES | 5844983 | 7438243 |
| LONG-TERM LIABILITIES |  |  |
| &nbsp;&nbsp;&nbsp; Beacon Bonds, net | 12480377 | 15469642 |
| &nbsp;&nbsp;&nbsp; Contingent Consideration | 587477 | 587477 |
| TOTAL LIABILITIES | $18912837 | $23495362 |
| COMMITMENTS AND CONTINGENCIES (SEE NOTE 4) |  |  |
| **MEMBER'S DEFICIT** |  |  |
| MEMBER'S DEFICIT | $(13266840) | $(18362519) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; TOTAL MEMBER'S DEFICIT | (13266840) | (18362519) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; TOTAL LIABILITIES AND MEMBER'S DEFICIT | $5645997 | $5132843 |

---

See accompanying notes to the consolidated financial statements.

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|:---|
| F-2 |
| *[**Table of Contents**](#toc)* |

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**Lighthouse Life Capital, LLC and subsidiaries**

**Consolidated Statements of Operations**

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| | | |
|:---|:---|:---|
|  | **For the Six Months Ended**<br>**March 31, 2025**<br>(unaudited) | **For the Six Months Ended**<br>**March 31, 2024**<br>(unaudited) |
| REVENUES |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Provider Fees | $304465 | $273134 |
| &nbsp;&nbsp;&nbsp;&nbsp; Policy Resale Proceeds | 211031 | 59600 |
| &nbsp;&nbsp;&nbsp;&nbsp; Trading Trust Fees | 664111 | 125319 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; TOTAL REVENUES | 1179607 | 458053 |
| OPERATING EXPENSES |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Compensation | 1886543 | 1150588 |
| &nbsp;&nbsp;&nbsp;&nbsp; Professional Fees | 287740 | 184995 |
| &nbsp;&nbsp;&nbsp;&nbsp; Regulatory Expenses | 38204 | 24073 |
| &nbsp;&nbsp;&nbsp;&nbsp; Customer Acquisition Costs | 947325 | 834131 |
| &nbsp;&nbsp;&nbsp;&nbsp; IT Fees | 319819 | 189979 |
| &nbsp;&nbsp;&nbsp;&nbsp; Occupancy | 27676 | 26846 |
| &nbsp;&nbsp;&nbsp;&nbsp; Business Insurance | 48084 | 41502 |
| &nbsp;&nbsp;&nbsp;&nbsp; Travel & Entertainment | 17301 | 8746 |
| &nbsp;&nbsp;&nbsp;&nbsp; General & Administrative | 23747 | 34110 |
| &nbsp;&nbsp;&nbsp;&nbsp; Depreciation & Amortization | 68124 | 25092 |
| &nbsp;&nbsp;&nbsp;&nbsp; Underwriting Expense | 139146 | 63003 |
| &nbsp;&nbsp;&nbsp;&nbsp; Syndication Costs | 124501 | 78788 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; TOTAL OPERATING EXPENSES | 3928210 | 2661853 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; LOSS FROM OPERATIONS | (2748603) | (2203800) |
| OTHER INCOME (EXPENSE) |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp; Gain on Redemption of Beacon Bond | 74900 | 26800.00 |
| &nbsp;&nbsp;&nbsp;&nbsp; Interest Income | 18158 | 19192 |
| &nbsp;&nbsp;&nbsp;&nbsp; Interest Expense | (1256982) | (1412636) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; TOTAL OTHER EXPENSE | (1163924) | (1366644) |
| NET LOSS | $(3912527) | $(3570444) |

---

See accompanying notes to the consolidated financial statements.

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|:---|
| F-3 |
| *[**Table of Contents**](#toc)* |

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**Lighthouse Life Capital, LLC and subsidiaries**

**Consolidated Statements of Member's Deficit**

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| | | |
|:---|:---|:---|
|  | **For the Six Months Ended March 31, 2025**<br>(unaudited) | **For the Six Months Ended March 31, 2024**<br>(unaudited) |
| Beginning balance, Member's Deficit | $(18362519) | $(20638947) |
| Contributions, net | 9008206 | 3805745 |
| Net loss | (3912527) | (3570444) |
| Ending balance, Member's Deficit | $(13266840) | $(20403646) |

---

See accompanying notes to the consolidated financial statements.

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|:---|
| F-4 |
| *[**Table of Contents**](#toc)* |

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**Lighthouse Life Capital, LLC and subsidiaries**

**Consolidated Statements of Cash Flows**

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| | | |
|:---|:---|:---|
|  | **For the Six Months Ended** | **For the Six Months Ended** |
|  | **March 31, 2025**<br>(unaudited) | **March 31, 2024**<br>(unaudited) |
| **Cash flows from operating activities:** |  |  |
| Net loss | $(3912527) | $(3570444) |
| Adjustments to reconcile net loss to net cash flows used in operating activities: |  |  |
| Amortization of bond issuance costs | 412054 | 449466 |
| Amortization of Intangible Assets | 8000 |  |
| Gain on Redemption of Beacon Bond | (74900) | (26800) |
| Changes in operating assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp; Accounts Receivable | (487826) | 7794 |
| &nbsp;&nbsp;&nbsp; Expense Reimbursements Receivable |  |  |
| &nbsp;&nbsp;&nbsp; Life Insurance Policies, at Investment Method | (136569) | 40403 |
| &nbsp;&nbsp;&nbsp; Deferred Assets | (283169) |  |
| &nbsp;&nbsp;&nbsp; Prepaid Expenses | (48752) | 91815 |
| &nbsp;&nbsp;&nbsp; Accrued Expenses | (191625) | 66454 |
| &nbsp;&nbsp;&nbsp; Accrued Interest  | (21815) | (10570) |
| &nbsp;&nbsp;&nbsp; Accounts Payable | (454200) | 159598 |
| &nbsp;&nbsp;&nbsp; Due to Related Party | (269) | 5071 |
| &nbsp;&nbsp;&nbsp; Contingent Liabilities | (30670) | - |
| Net cash used in operating activities | (5222268) | (2787213) |
| **Cash flows from financing activities:** |  |  |
| &nbsp;&nbsp;&nbsp; Net proceeds from Beacon Bonds |  | 165494 |
| &nbsp;&nbsp;&nbsp; Redemptions of Beacon Bonds | (975100) | (353200) |
| &nbsp;&nbsp;&nbsp; Maturity of Beacon Bonds | (3246000) | (946000) |
| &nbsp;&nbsp;&nbsp; Capital Contributions, net | 9008206 | 3805745 |
| Net cash provided by financing activities | 4787106 | 2672039 |
| Net decrease in cash and cash equivalents and restricted cash | (435162) | (115174) |
| Cash and Cash Equivalents and Restricted Cash at the beginning of period | 1501062 | 1337245 |
| Cash and Cash Equivalents and Restricted Cash at the end of period | $1065900 | $1222071 |

---

The following table provides a reconciliation of cash and cash equivalents and restricted cash reported within the consolidated balance sheets that sums to the total of such amounts shown on the consolidated statements of cash flows:

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| | | |
|:---|:---|:---|
| Cash and Cash Equivalents | $2452 | $193891 |
| Restricted Cash | 1063448 | 1028180 |
| Total Cash and Cash Equivalents and Restricted Cash | $1065900 | $1222071 |
| **Supplemental Cash Flow Information** |  |  |
| Cash paid during the period for interest | $866743 | $973740 |

---

See accompanying notes to the consolidated financial statements.

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|:---|
| F-5 |
| *[**Table of Contents**](#toc)* |

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**Lighthouse Life Capital, LLC**

**Notes to the Consolidated Financial Statements**

**For the Six Months Ended March 31, 2025 and 2024**

(unaudited)

**Note 1. Nature of Operations**

**Our Company**

Lighthouse Life Capital, LLC ("LHL" or the "Company") was formed in Delaware pursuant to a Certificate of Formation on July 8, 2020 as a Limited Liability Company ("LLC"). Lighthouse Life Solutions, LLC was formed in Delaware pursuant to a Certificate of Formation on February 9, 2018 as an LLC and is a wholly-owned subsidiary of the Company. Lighthouse Life Direct, LLC was formed in Delaware pursuant to a Certificate of Formation on July 2, 2018 as an LLC and is a wholly-owned subsidiary of the Company. As of the date of formation of LHL and in connection with the transfer of ownership, the assets and liabilities of the predecessor were transferred to LHL at their carrying value on July 8, 2020. Harbor Life Settlements, LLC was formed in Delaware pursuant to a Certificate of Formation on June 14, 2024. Settlement Benefits Holdings, LLC was formed in Delaware pursuant to a Certificate of Formation on August 5, 2024.

LHL, through its subsidiaries and its parent, LHL Strategies, Inc. ("LHLS"), originates and acquires life insurance policies through the highly regulated life settlement market for the benefit of purchasers of those policies. The Company originates potential sellers of policies both from financial professionals, including insurance producers and financial advisors, who refer such potential sellers, and directly advertising to the public.

**Liquidity**

The Company was formed on July 8, 2020. The Company's net loss was $3.9 million and $3.6 million for the six months ended March 31, 2025 and March 31, 2024, respectively.

Our short and long term liquidity requirements primarily consist of operating expenses, consideration pursuant to the Asset Purchase Agreements with Harbor and SBA and repayment of indebtedness, comprised primarily of our Initial Bonds. We expect to meet our liquidity requirements through a combination of net cash provided by operations, remaining proceeds from the offering of the Initial Bonds, net proceeds from the Follow-On Offering, and contributions from LHLS which we expect will be made from capital activity at LHLS. The Company has available financing support to the extent necessary to meet the Company's obligations from the Merlion Park Trust for at least one year from the issuance date of the financial statements. As of March 31, 2025, Brighton LH Trustees, LLC, on behalf of Merlion Park Trust, currently holds a majority of Preferred Shares of LHLS, and may nominate 3 Board members of LHLS—constituting a majority of the Board. The Company filed an Offering Statement on Form 1-A with the SEC to offer a maximum of $50.0 million in aggregate, of its Class A Bonds, and its Class B Bonds. As of March 31, 2025, $5.0 million of beacon bonds, net are recorded in short term liabilities. The total short term beacon bonds are comprised of Class B bonds. On December 30, 2020, the offering was qualified by the SEC and requalified by the SEC on February 1, 2022 and January 9, 2023 and we continued offering the Initial Bonds through December 30, 2023. The Company commenced sales of the Initial Bonds in February 2021. As of March 31, 2025, the Company raised $25.0 million in gross proceeds from the sale of the Initial Bonds. Management has determined that the Company's available support, to the extent necessary, from Merlion Park Trust is expected to be adequate to meet its cash obligations for at least one year from the issuance date of these consolidated financial statements. During the six months ended March 31, 2025, the Company has net contributions of $9.0 million from our sole member, LHL Strategies, Inc. During the six months ended March 31, 2024, the Company had net contributions of $3.8 million from our sole member, LHL Strategies, Inc.

As of March 31, 2025 and September 30, 2024, our sole member, LHLS had $12.3 million and $0, respectively, of outstanding debt, which matures between 2026 and 2027. On June 10, 2024, LHLS entered into an Exchange Agreement with Brighton LH Trustees, LLC in which all outstanding notes payable due to Brighton LH Trustees, LLC as of June 10, 2024, were exchanged for 1,864.46 shares of Series A-2 Preferred Stock and a warrant to purchase a class or series of preferred stock issued by the Company in the next preferred stock series issued by the Company. As a result of the exchange agreement, all LHLS' obligations per the note agreements as of the date of the Exchange Agreement were satisfied. During the six months ended March 31, 2025, LHLS incurred an additional $12.3 million of notes payable, which matures between 2026 and 2027. The Company anticipates that distributions of cash will be made from the Company to LHLS at least sufficient to pay expenses and liabilities of LHLS, as determined by LHLS.

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| |
|:---|
| F-6 |
| *[**Table of Contents**](#toc)* |

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**Lighthouse Life Capital, LLC**

**Notes to the Consolidated Financial Statements**

**For the Six Months Ended March 31, 2025 and 2024**

(unaudited)

**Note 1. Nature of Operations (continued)**

On August 22, 2022, LHLS' senior lender executed a subscription agreement to invest up to $6.0 million to purchase up to 600 shares ($10,000 per share) of LHLS' Series A Preferred Stock (the "Series A Preferred") over the course of six equal closings. The initial purchase of 100 shares of Series A Preferred for $1.0 million occurred on August 22, 2022. Subsequent closings occurred on September 23, 2022, October 21, 2022, July 31, 2023 and October 27, 2023. The Series A Preferred holder has an optional redemption at 300% of the original issue price per share, plus all declared but unpaid dividends, in three annual installments beginning August 22, 2026 (the "Series A Trigger Date"). Prior to the Series A Trigger Date, the Series A Preferred holder has an optional redemption at a percentage of the original issue price per share. Redemptions prior to the four (4) year anniversary of the closing date are subject to a penalty. Prior to the 1st anniversary of the applicable Closing Date, 89% of the Series A Preferred original issue price of each share may be redeemed. Prior to the 2nd anniversary of the applicable Closing Date, 91% of the Series A Preferred original issue price of each share may be redeemed. Prior to the 3rd anniversary of the applicable Closing Date, 94% of the Series A Preferred original issue price of each share may be redeemed. Prior to the 4th anniversary of the applicable Closing Date, 99% of the Series A original issue price of each share may be redeemed. The Series A Preferred stock carries preferential dividend and liquidation rights in favor of LHLS' senior lender, as well as conversion rights and obligations. See: https://www.sec.gov/Archives/edgar/data/1824921/000165495422012208/llc_253.htm for full disclosure.

On March 6, 2023, LHLS offered up to 50,000 shares of Series B Redeemable Preferred Stock (the "Series B Preferred") in a Confidential Private Placement Memorandum (the "Series B Offering") for a maximum aggregate offering price of $50.0 million. LHLS may also issue up to 10,000 additional Series B Preferred under the dividend reinvestment plan ("Series B DRIP"). The purchase price and initial stated value is $1,000 per share. The Series B Preferred holder has an optional redemption at a percentage of the stated value. Redemptions prior to the five (5) year anniversary of the closing date are subject to a redemption fee. Prior to the 1st anniversary of the applicable Closing Date the fee is equal to 11% of the Stated Value. Prior to the 2nd anniversary of the applicable Closing Date the fee is equal to 9% of the Stated Value Prior to the 3rd anniversary of the applicable Closing Date the fee is equal to 6% of the Stated Value. Prior to the 4th anniversary of the applicable Closing Date the fee is equal to 3% of the Stated Value. Prior to the 5th anniversary of the applicable Closing Date the fee is equal to 1% of the Stated Value. The Series B Preferred holder shall receive a dividend at the annual rate of 7% of the Stated Value of each share, to be paid quarterly. The Series B Preferred carries dividend and liquidation rights junior to holders of Series A Preferred, as well as conversion rights and obligations. As of March 31, 2025, LHLS had sold $1.7 million in the Series B Offering.

On June 10, 2024, LHLS' senior lender executed an exchange agreement of 1,864.46 shares of the LHLS' Series A-2 Preferred Stock for the outstanding principal of all notes held by Merlion Park Trust. As of June 10, 2024, the outstanding principal was $18.6 million. On June 10, 2024, LHLS' senior lender executed a subscription agreement to invest up to $6.0 million to purchase up to 600 shares ($10,000 per share) of LHLS' Series A-2 Preferred Stock. The purchase of the 600 shares of Series A-2 Preferred stock occurred on June 10, 2024. The Series A-2 Preferred holder has an optional redemption at 300% of the original issue price per share, plus all declared but unpaid dividends, in three annual installments beginning August 22, 2026 (the "Series A-2 Trigger Date"). Prior to the Series A-2 Trigger Date, the Series A-2 holder has an optional redemption at a percentage of the original issue price per share. Redemptions prior to the four (4) year anniversary of the closing date are subject to a penalty. Prior to the 1st anniversary of the applicable Closing Date, 89% of the Series A-2 original issue price of each share may be redeemed. Prior to the 2nd anniversary of the applicable Closing Date, 91% of the Series A-2 original issue price of each share may be redeemed. Prior to the 3<sup>rd</sup> anniversary of the applicable Closing Date, 94% of the Series A-2 original issue price of each share may be redeemed. Prior to the 4th anniversary of the applicable Closing Date, 99% of the Series A-2 original issue price of each share may be redeemed. The Series A-2 Preferred stock carries dividend and liquidation rights junior to holders of Series A Preferred and Series B Preferred, as well as conversion rights and obligations

As of March 27, 2025, the Company is offering a maximum of $50,000,000 in the aggregate, of its 11.0% senior beacon bonds (the "Class C Bonds"), its 11.50% senior beacon bonds (the "Class CR Bonds"), its 9.0% senior beacon bonds (the "Class D Bonds"), and its 9.50% senior beacon bonds (the "Class DR Bonds"), collectively the "Offered Beacon Bonds" via a Private Placement Memorandum (the "PPM"). LHL Strategies, Inc., is offering to each holder of the Offered Beacon Bonds a contingent value right (a "CVR") (together with the Offered Beacon Bonds the "Offered Securities"). As of March 31, 2025, there are no Offered Securities outstanding. During the six months ended March 31, 2025, the Company incurred costs of $283,169 for the issuance of the Offered Securities. All costs have been capitalized and are recorded as deferred assets.

**Note 2. Summary of Significant Accounting Policies**

*Basis of Presentation and Use of Estimates*

The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP"). The preparation of the financial statements in conformity with GAAP requires the use of estimates and assumptions that affect the amounts reported in the financial statements and the accompanying notes. While management believes that such estimates are reasonable when considered in conjunction with the Company's financial position, actual results could differ materially from those estimates.

*Principles of Consolidation*

The accompanying consolidated financial statements includes the accounts of LHL and its wholly-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. The Company provides distributions to LHLS which are then utilized to fund operational expenses allocated to the Company and its subsidiaries as contributions. As such, the Company discloses contributions and distributions as a net amount. LHLS financial statements are not included in the consolidated financial statements of LHL. As of March 31, 2025, , LHLS has total cash of $2.7 million, total assets of $3.3 million and total liabilities of $15.9 million exclusive of investment in the Initial Bonds. As of September 30, 2024, LHLS has total cash of $665,537, total assets of $1.2 million and total liabilities of $917,736, exclusive of investment in the Initial bonds and warrants issued pursuant to the Exchange Agreement.

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**Lighthouse Life Capital, LLC**

**Notes to the Consolidated Financial Statements**

**For the Six Months Ended March 31, 2025 and 2024**

(unaudited)

**Note 2. Summary of Significant Accounting Policies (continued)**

*Cash and Cash Equivalents*

Cash and cash equivalents represents cash deposits and money market accounts held at financial institutions, all of which have maturities of three months or less. The Company maintains its cash in bank deposit accounts which, at times, may exceed federally insured limits. Accounts are guaranteed by the Federal Deposit Insurance Corporation ("FDIC") up to certain limits. The Company has not experienced any losses in such accounts. Included in LHLS' cash and cash equivalents as of March 31, 2025 and September 30, 2024 is $130,225 and $152,040, respectively, of cash which is restricted for the payment of bond interest expense.

The Company also has restricted cash of $1.1 million and $1.0 million as of March 31, 2025 and September 30, 2024, which is restricted for bond service and state licensing requirements.

*Reclassifications*

Certain prior period amounts have been reclassified for consistency with the current year presentation. These reclassifications had no effect on the reported results of operations.

*Revenue Recognition*

The Company typically earns revenue primarily through origination fees that are paid to the Company by the purchasers for which they originate life insurance policies. Origination fees from purchasers are due to be paid to the Company upon closing of each individual policy purchase. Revenue from origination fees is recognized when all conditions for the transfer of ownership of a life insurance policy have been met and the funds owed to the current owner (seller) of the life insurance policy have been funded to escrow.

The Company also earns revenue through the sale of policies on the tertiary market. Revenue from the sale of life insurance policies is recognized as of the risk transfer date, and the life insurance policy has been transferred to the customer.

*Trading Trust* 

The Company has an agreement with Brighton LH Trustees, on behalf of Merlion Park Trust to identify life insurance policies for potential purchase by the trading trust(the "Trading Trust"). The Company earns a fee for each policy purchased by the Trading Trust. In addition, the Company may earn an additional fee equal to 50% of any excess proceeds resulting from policies which were sold or matured. The excess fee, if any, is calculated as 50% of all proceeds received from a policy sale or maturity, less the purchase amount paid by the Trading Trust and all Trading Trust expenses incurred for the relevant policy. Trading trust expenses could include; ordering and updating medical records, third-party life expectancy reports, costs incurred in executing purchase agreements, policy premiums, as well as a return of 8% annum on policy purchase price and trading expenses. Any excess proceeds that are calculated to be a negative amount may be deducted from future excess fees to be payable to the Company, if any. Total excess proceeds are to be paid on a quarterly basis. Trading fee revenue from transactions with the Trading Trust are recognized when all conditions for the transfer of ownership of a life insurance policy have been met and the funds owed to the current owner (seller) of the life insurance policy have been funded to escrow, which includes an estimate of the excess proceeds.

In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2014-09, *Revenue from Contracts with Customers* ("Topic 606") ("ASU 2014-09"). The core principle of ASU 2014-09 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. All sources of revenue are excluded from the scope of ASU 2014-09, Topic 606, as all are within the scope of ASU 2014-11, Topic 860, "Transfers and Servicing."

*Collateral Deposits and Letter of Credit*

As a condition to be licensed by the state of Florida to purchase life insurance policies through a Life Settlement transaction from policy owners who reside in the state of Florida, a licensee is required to post collateral equal to $100,000 with the Florida Department of Financial Services (DFS) Division of Treasury's Bureau of Collateral Management (BCM) and maintain that for as long as the license is valid. As a result, the Company maintains a $100,000 Treasury Cash Deposit with the state of Florida. As of both March 31, 2025 and September 30, 2024, the Company had $100,000 as a collateral deposit with the State of Florida.

As a condition to be licensed by the state of Illinois to purchase life insurance policies through a Life Settlement transaction from policy owners who reside in the state of Illinois, a licensee is required to demonstrate evidence of financial responsibility equal to $125,000 through either a surety bond executed and issued by an insurer authorized to issue surety bonds in this State or a deposit of cash, certificates of deposit or securities or any combination thereof, or irrevocable letter of credit. As a result, the Company maintains $125,000 in a reserve account as collateral for a letter of credit. As of March 31, 2025 and September 30, 2024, the company had $125,829 and $125,672 respectively, in restricted cash relative to the state of Illinois letter of credit.

As a condition to be licensed by the state of New Jersey to purchase life insurance policies through a Life Settlement transaction from policy owners who reside in the state of New Jersey, a licensee is required to deposit $125,000 in a custodial deposit account for the benefit of the New Jersey Department of Banking and Insurance ("DOBI"), and maintain that for as long as the license is valid. As a result, the Company maintains a $133,560 deposit account for the benefit of the state of New Jersey DOBI. As of March 31, 2025 and September 30, 2024, the Company had $133,560 and $131,617, respectively, in restricted cash relative to the state of New Jersey deposit.

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**Lighthouse Life Capital, LLC**

**Notes to the Consolidated Financial Statements**

**For the Six Months Ended March 31, 2025 and 2024**

(unaudited)

**Note 2. Summary of Significant Accounting Policies (continued)**

*Debt Issuance Cost*

The Company has incurred costs in connection with the issuance of the Initial Bonds. In accordance with FASB ASU 2015-03, *Interest Imputation of Interest*, debt issuance costs related to the sale of the beacon bonds are reported on the consolidated balance sheets as direct reduction of the associated debt balance.

The Company incurred costs in connection with the issuance of the Senior Beacon Bonds. As of March 31, 2025, the Company had no outstanding Senior Beacon Bonds. As a result, the debt issuance costs incurred for the issuance of the Senior Beacon Bonds are recorded as a deferred asset on the consolidated balance sheets.

*Income Taxes*

The Company is a disregarded entity for federal purposes and as such is not subject to income taxes. ASC Topic 740: *Income Taxes* ("ASC Topic 740") also clarifies the accounting for uncertainty in income taxes recognized in an enterprise's financial statements and prescribes a recognition threshold and measurement process for financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be more-likely-than-not to be sustained upon examination by taxing authorities. ASC Topic 740 also provides guidance on de-recognition, classification, interest and penalties, accounting in interim periods, disclosure and transition. The Member is required to file income tax returns in the United States (federal) and certain state and local jurisdictions. Based on the Company's evaluation, it has been concluded that there are no significant uncertain tax positions requiring recognition in the Company's financial statements. The Company believes that its income tax positions and deductions would be sustained upon examination and does not anticipate any adjustments that would result in material changes to its financial position.

In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740) ("ASU 2019-12"). ASU 2019-12 simplifies the accounting for income taxes by eliminating certain exceptions to the guidance in ASC 740 related to the methodology for calculating income taxes and clarifies single-member limited liability companies. One of the amendments of ASU 2019-12 specified that an entity is not required to allocate income tax expense to a legal entity that is both not subject to tax and disregarded by the taxing authority.

The Company's policy for recording interest and penalties associated with unrecognized tax benefits is to record such interest and penalties as interest expense and as a component of general and administrative expenses, respectively. There were no amounts recognized during the period.

*Advertising Costs*

Advertising costs of $682,302 and $802,655 for the six months ended March 31, 2025 and March 31, 2024, respectively, were expensed as incurred and are included in customer acquisition costs in the consolidated statements of operations.

*Investment in Life Insurance Policies* 

ASC 325-30, *Investments in Insurance Contracts*, permits a reporting entity to account for its investments in life insurance policies using either the investment method or the fair value method. The Company has elected to use the investment method. Under the investment method, the Company records the value of the policy as the direct sale price, inclusive of all direct external fees and costs associated with the purchase. All costs associated with keeping the policy enforced are also capitalized. Upon sale of the policy, a gain is recognized as revenue.

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**Lighthouse Life Capital, LLC**

**Notes to the Consolidated Financial Statements**

**For the Six Months Ended March 31, 2025 and 2024**

(unaudited)

**Note 2. Summary of Significant Accounting Policies (continued)**

*Asset Acquisition and Business Combination Accounting*

In accordance with authoritative guidance issued by the FASB that clarifies the definition of a business, when the Company executes an acquisition, it will perform an initial screening test as of the acquisition date that, if met, results in the conclusion that the set of activities and assets is not a business. If the initial screening test is not met, the Company evaluates whether the set of activities is a business based on whether there are inputs and a substantive process in place. The definition of a business impacts whether the Company consolidates an acquisition under business combination guidance or asset acquisition guidance.

When the Company acquires assets and liabilities deemed to be an asset acquisition, the fair value of the purchase consideration, including the transaction costs of the asset acquisition, is assumed to be equal to the fair value of the net assets acquired. The purchase consideration, including the transaction costs, is allocated to the individual assets and liabilities assumed based on their relative fair values. Transaction costs associated with asset acquisitions are capitalized as part of the costs of the group of assets acquired.

When the Company acquires assets and liabilities deemed to be a business combination, the acquisition method is applied. Goodwill is measured as the fair value of the consideration transferred less the net recognized fair value of the identifiable assets acquired and the liabilities assumed, all measured at the acquisition date. Transaction costs that the Company incurs in connection with a business combination, such as finders' fees, legal fees, due diligence fees and other professional and consulting fees are expensed as incurred.

Goodwill is analyzed at the reporting unit level. The Company's reporting units are an aspect of the business with financial information which is available and reviewed regularly by management. Determining the fair value of its reporting units is subjective in nature and involves the use of significant estimates and assumptions, including projected net cash flows.

The Company will continue to evaluate the goodwill for impairment annually as of the transaction date by reviewing cash flows generated as a result of the business acquisition. Insufficient time has passed since the acquisition and most recent impairment charge to indicate that any additional risks have occurred that would indicate an additional impairment charge. In the event the fair value is less than the carrying value, further testing is required to determine the amount of impairment, if any. If there is an impairment in the goodwill of any reporting unit, it is written down and charged to earnings in the period of the test.

The Company reviews goodwill for impairment annually as of the transaction date or whenever events or circumstances indicate that the carrying amount of the asset exceeds its fair value and may not be recoverable. The Company determined that there was no impairment of goodwill for the six months ended March 31, 2025 and 2024.

*Business Acquisitions*

Business acquisitions are accounted for in accordance with FASB ASC 805 "Business Combinations". FASB ASC 805 requires the reporting entity to identify the acquirer, determine the acquisition date, recognize and measure the identifiable tangible and intangible assets acquired, the liabilities assumed and any noncontrolling interest in the acquired entity, and recognize and measure goodwill or a gain from the purchase.

*Intangible Assets, net*

Intangible assets consist of acquired intellectual property. In accordance with ASC 350, "Intangibles—Goodwill and Others," goodwill and other intangible assets with indefinite lives are not subject to amortization but are tested for impairment annually or whenever events or changes in circumstances indicate that the asset might be impaired.

Intangible assets with determinate lives are evaluated for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. Amortizable intangible assets generally are amortized on a straight-line basis over periods up to 120 months. The costs to periodically renew our intangible assets are expensed as incurred.

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*Impairment of Long-Lived Assets*

The Company periodically evaluates long-lived assets (intangible assets) for impairment whenever events or changes in circumstances indicate that a potential impairment may have occurred. If such events or changes in circumstances arise, the Company compares the carrying amount of the asset groups to the estimated future undiscounted cash flows expected to be generated by the asset groups. If the estimated aggregate undiscounted cash flows are less than the carrying amount of the long-lived assets, an impairment charge, calculated as the amount by which the carrying amount of the assets exceeds the fair value of the assets, is recorded. The fair value of the long-lived assets is determined based on the estimated discounted cash flows expected to be generated from the long-lived asset unless another method provides a more reliable estimate. If an impairment loss is recognized, the adjusted carrying amount of a long-lived asset is recognized as a new cost basis of the impaired asset. Impairment loss is not reversed even if fair value exceeds carrying amount in subsequent periods. The Company had no impairment loss for the six months ended March 31, 2025 and 2024, respectively.

*Contingent Liabilities*

The Company's asset and business acquisitions included and may include in the future, contingent consideration that is based on the future operating performance of the acquired assets. Generally accepted accounting principles require the Company to estimate the fair value of contingent consideration when present in those transactions. The Company accounts for contingent consideration relating to acquisitions as a contingent liability and is recorded as an adjustment to purchase price as of the date of an acquisition and continually remeasures the asset or liability at each balance sheet date by recording changes in the fair value as other income or other expense in the consolidated statements of operations. Ultimate settlement of contingent consideration may be for amounts that are materially different from the amounts initially recorded and may cause volatility in the Company's consolidated statements of operations.

*Recently Issued Accounting Pronouncements*

In November 2023, the FASB issued ASU 2023-07, "Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures." The amendments in this ASU are intended to improve reportable segment disclosure requirements primarily through enhanced disclosures about significant segment expenses. This ASU requires disclosure of significant segment expenses that are regularly provided to the chief operating decision marker ("CODM"), an amount for other segment items by reportable segment and a description of its composition, all annual disclosures required by FASB ASU Topic 280 in interim periods as well, and the title and position of the CODM and how the CODM uses the reported measures. Additionally, this ASU requires that at least one of the reported segment profit and loss measures should be the measure that is most consistent with the measurement principles used in an entity's consolidated financial statements. Lastly, this ASU requires public business entities with a single reportable segment to provide all disclosures required by these amendments in this ASU and all existing segment disclosures in Topic 280. This ASU is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. The amendments should be applied retrospectively. The Company is currently evaluating the potential impact of adopting guidance on the consolidated financial statements and related disclosures.

In December 2023, FASB issued Accounting Standards Update No. 2023-09, "Income Taxes (ASC 740): Improvements to Income Tax Disclosures" ("ASU 2023-09"), which modifies the rules on income tax disclosures to require entities to disclose specific categories in the rate reconciliation, the income or loss from continuing operations before income tax expense or benefit (separated between domestic and foreign) and income tax expense or benefit from continuing operations (separated by federal, state and foreign). ASU 2023-09 also requires entities to disclose income tax payments to international, federal, state and local jurisdictions, among other changes. ASU 2023-09 is effective for annual periods beginning after December 15, 2024. Early adoption is permitted for annual financial statements that have not yet been issued or made available for issuance. ASU 2023-09 should be applied on a prospective basis, but retrospective application is permitted. The Company is currently evaluating the potential impact of adopting guidance on the consolidated financial statements and related disclosures and does not expect ASU 2023-07 to have an impact on the consolidated financial statements.

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In November 2024, the FASB issued Accounting Standards Update No. 2024-03, "Income Statement — Reporting Comprehensive Income — Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses" ("ASU 2024-03"), which requires disclosure of certain costs and expenses on an interim and annual basis in the notes to the consolidated financial statements. The guidance is effective for annual reporting periods beginning after December 15, 2026 and interim periods within annual reporting periods beginning after December 15, 2027. Early adoption is permitted. The guidance is to be applied either (1) prospectively to financial statements issued for reporting periods after the effective date or (2) retrospectively to any or all prior periods presented in the financial statements. We are currently evaluating the potential impact of adopting this new guidance on our consolidated financial statements and related disclosures. The Company is currently evaluating the potential impact of adopting guidance on the consolidated financial statements and related disclosures.

**Note 3. Life Insurance Policies**

As of March 31, 2025 and September 30, 2024, the Company held fourteen and ten policies, respectively, which it intends to resell. As of March 31, 2025 and September 30, 2024, the carrying value of these policies was $269,415 and $132,846, respectively, with a total net death benefit of $2.6 million and $2.1 million, respectively. Estimated premium payments and servicing fees required to maintain our current portfolio of life insurance policies in force, for the next five years, assuming no mortalities, are as follows:

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|  | **Premiums** | **Servicing** | **Total** |
| 2025 | $186819 | $8400 | $195219 |
| 2026 | 192178 | 8400 | 200578 |
| 2027 | 198816 | 8400 | 207216 |
| 2028 | 202894 | 8400 | 211294 |
| 2029 | 212824 | 8400 | 221224 |
|  | $993531 | $42000 | $1035531 |

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A summary of our policies organized according to their life expectancy dates, grouped by year, as of the reporting date, is as follows:

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|:---|:---|:---|:---|:---|:---|:---|
|  | **As of March 31, 2025** | **As of March 31, 2025** | **As of March 31, 2025** | **As of September 30, 2024** | **As of September 30, 2024** | **As of September 30, 2024** |
|  | **Number of Policies** | **Carrying Value** | **Face Value** | **Number of Policies** | **Carrying Value** | **Face Value** |
| 2026 |  | $- | $- |  | $- | $- |
| 2027 | 1 | 83176 | 250000 |  |  |  |
| 2028 |  |  |  |  |  |  |
| 2029 |  |  |  |  |  |  |
| 2030 |  |  |  |  |  |  |
| Thereafter | 13 | 186239 | 2392316 | 10 | 132846 | 2122316 |
| Totals | 14 | $269415 | $2642316 | 10 | $132846 | $2122316 |

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| F-12 |
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**Lighthouse Life Capital, LLC**

**Notes to the Consolidated Financial Statements**

**For the Six Months Ended March 31, 2025 and 2024**

(unaudited)

**Note 4. Commitments and Contingencies**

*Legal proceedings*

In the ordinary course of business, the Company may be subject to litigation from time to time. There is no current, pending or, to our knowledge, threatened litigation or administrative action to which the Company is a party or of which LHL property is the subject (including litigation or actions involving our officers, directors, affiliates, or other key personnel) which in the Company's opinion has, or is expected to have, a material adverse effect upon the Company's business, prospects, financial condition or operations.

*Letter of Credit*

As of March 31, 2025, the Company has an unused letter of credit in the amount of $125,000, which was issued as a condition to be licensed by the state of Illinois to purchase life insurance policies through a Life Settlement transaction from policy owners who reside in the state of Illinois. A licensee is required to demonstrate evidence of financial responsibility equal to $125,000. As a result, the Company maintains $125,000 in a reserve account as collateral for the letter of credit. As of March 31, 2025 and September 30, 2024, the Company had $125,829 and $125,672, respectively, in restricted cash.

*Contingent Consideration*

The Company's asset and business acquisition included and may include in the future, contingent consideration that is based on the future operating performance of the acquired assets. Generally accepted accounting principles require the Company to estimate the fair value of contingent consideration when present in those transactions. The Company accounts for contingent consideration relating to acquisitions as a contingent liability and is recorded as an adjustment to purchase price as of the date of an acquisition and continually remeasures the asset or liability at each balance sheet date by recording changes in the fair value as other income or other expense in the consolidated statements of operations. Ultimate settlement of contingent consideration may be for amounts that are materially different from the amounts initially recorded and may cause volatility in the Company's consolidated statements of operations. As of March 31, 2025 and September 30, 2024, the Company has $918,139 and $948,809, respectively, in contingent consideration.

**Note 5. Related Party Transactions**

LHLS has historically been responsible for financing the Company's operations and indirectly pays for a portion of operating expenses. Management identifies the direct costs associated with the Company's operations and estimates the allocation of remaining costs, based on management's best estimates. These estimates are generally based on personnel cost allocations unless management has identified a basis more representative of the benefit derived by the Company and is applied to substantially all operating expenses.

Payroll expense allocated to the Company by LHLS during the year consisted of the following:

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|  | **For the Six Months Ended March 31, 2025** | **For the Six Months Ended March 31, 2024** |
| Salary expense | $1623736 | $1010511 |
| Insurance and benefits | 149080 | 68956 |
| Payroll taxes | 113727 | 71121 |
| Total compensation expense | $**1886543** | $**1150588** |

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During the six months ended March 31, 2024, the Company received provider fee revenue from a funder, Silver Oaks LLC, which is owned and operated by LHLS' former Executive Vice President, Policy Acquisition and Trading, Matt Mracek. During the six months ended March 31, 2025, the Company did not originate any policies for Silver Oaks. During the six months ended March 31, 2024, the Company originated one life insurance policy, with a net death benefit of $800,000, which Silver Oaks, LLC purchased. Terms of the purchase include a marketing fee in which the Company will earn a percentage of the net profits upon resale of the policy by Silver Oaks, LLC. On April 15, 2024, the policy was resold, and the Company received a marketing fee of $72,800. During the six months ended March 31, 2025 and March 31, 2024, the Company received provider fee revenue of $0 and $23,600, respectively from Silver Oaks, LLC. As of March 31, 2025 and September 30, 2024, the Company had no receivables due from Silver Oaks, LLC.

During the six months ended March 31, 2025 and March 31, 2024, the Company received revenue from Merlion Park Trust, who also acts as a lender to LHLS, as well as an investor in the Series A Preferred stock and Series A-2 Preferred Stock. During the six months ended March 31, 2025, the Company originated 19 life insurance policies, with a combined net death benefit of $11.4 million for Merlion Park Trust. All 19 policies originated for the Merlion Park Trust were purchased by the Trading Trust. During the six months ended March 31, 2024, the Company originated 15 life insurance policies, with a combined net death benefit of $8.2 million for Merlion Park Trust. All 15 policies originated for the Merlion Park Trust were purchased by the Trading Trust. During the six months ended March 31, 2025 and 2024, the Company received trading trust fee revenue of $664,111 and $125,319, respectively from Merlion Park Trust. As of March 31, 2025 and September 30, 2024, the Company had $632,601 and $151,350, respectively, in receivables from Merlion Park Trust. As of March 31, 2025 and September 30, 2024, the Company had no payables due to Merlion Park Trust.

On November 3, 2023, LHLS purchased 824 shares of Class A Bonds for $762,150 from an investor. LHLS purchased the shares for the purpose of selling the bonds prior to the maturity date. During the six months ended March 31, 2025, LHLS sold 38 shares to a third party investor. As of March 31, 2025, LHLS held 14 shares. During the six months ended March 31, 2025 and 2024 the Company paid LHLS interest of $612 and $23,345, respectively. As of March 31, 2025 and September 30, 2024, the Company has $102 and $371, respectively, due to LHLS for bond interest, included in accrued expenses in the consolidated balance sheets.

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| F-13 |
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**Lighthouse Life Capital, LLC**

**Notes to the Consolidated Financial Statements**

**For the Six Months Ended March 31, 2025 and 2024**

(unaudited)

**Note 6. Beacon Bonds and other Long-Term Debt**

On December 4, 2020, the Company filed an Offering Statement on Form 1-A with the Securities and Exchange Commission ("SEC") to offer a maximum of $50.0 million in aggregate, of its 8.5% senior beacon bonds, or "Class A Bonds," and its 6.5% senior beacon bonds, or "Class B Bonds," collectively the "Initial Bonds" at a price of $1,000 per Bond. Sale of the Class B Bonds will be limited to a maximum of $30.0 million. On December 30, 2020, the offering was qualified by the SEC and re- qualified by the SEC February 1, 2022 and January 9, 2023 and continued offering the Initial Bonds through December 30, 2023. The Company commenced sales of the Initial Bonds in February 2021. As of the termination of the offering of the Initial Bonds, the Company sold 16,842 Class A Bonds and 8,199 Class B Bonds for an aggregate of approximately $25.0 million in gross proceeds. Gross bonds outstanding by Class as of March 31, 2025 and September 30, 2024 are as follows:

---

| | | |
|:---|:---|:---|
|  | **March 31, 2025** | **September 30, 2024** |
| Class A 8.5% senior beacon bonds | $15640000 | $16625000 |
| Class B 6.5% senior beacon bonds | 3086000 | 6397000 |
| **Total senior beacon bonds** | $**18726000** | $**23022000** |

---

The Initial Bonds were offered serially over a maximum period of three years starting from the date of qualification. Each series of Class A Bonds will mature on the fifth anniversary of the issuance date of such series and each series of Class B Bonds will mature on the third anniversary of the issuance date of such series.

Interest on the Bonds is paid monthly at a rate of 8.5% per annum, in the case of the Class A Bonds, and 6.5% per annum, in the case of the Class B Bonds.

The Initial Bonds were issued pursuant to an Indenture, dated February 3, 2021 and supplemented by that First Supplemental Indenture dated February 17, 2021 and that Second Supplemental Indenture dated December 21, 2022 (the "Indenture"), between the Company and UMB Bank, N.A., as trustee. The Indenture contains covenants that limit the Company's ability to incur, or permit its subsidiaries to incur, third party indebtedness that would be senior to the Bonds, whether secured or unsecured, unless all of the net proceeds of such indebtedness, are used for the repayment of the Initial Bonds. Further, the Company is prohibited from selling any equity interest in any of its subsidiaries or causing any of its subsidiaries to issue new equity to any third party, unless the net proceeds of such sale or issuance are used for the repayment of the Initial Bonds. The Company is also required to maintain a bond service reserve equal to 3% of the net proceeds raised in the offering (the "Bond Service Reserve"), which will be used for payment of interest on the Bonds. The balance of the bond service reserve at March 31, 2025 and September 30, 2024 was $804,059 and $789,888, respectively. The Bond Service Reserve is included in restricted cash in the consolidated balance sheets. The funds subject to the Bond Service Reserve will be made available to the Company for general business purposes one year following the termination of the offering.

Bondholders may redeem their Class A Bonds at a price per Class A Bond equal to: (i) $915 plus any accrued but unpaid interest on the Bond if the notice is received on or between the dates that are 0 and 12 months following the date of issuance of the Bond to be redeemed; (ii) $920 plus any accrued but unpaid interest on the Bond if the notice is received after the date that is 13 months and on or before the date that is 24 months following the date of issuance of the Bond to be redeemed; (iii) $925 plus any accrued but unpaid interest on the Bond if the notice is received after the date that is 25 months and on or before the date that is 36 months following the date of issuance of the Bond to be redeemed; and (iv) $930 plus any accrued but unpaid interest on the Bond if the notice is received after the date that is 37 months and on or before the date that is 48 months following the date of issuance of the Bond to be redeemed; and (v) $935 plus any accrued but unpaid interest on the Bond if the notice is received after the date that is 49 months and on or before the date that is 60 months following the date of issuance of the Bond to be redeemed. Bondholders may redeem their Class B Bonds at a price per Bond of $915 plus any accrued but unpaid interest on the Bond.

---

| |
|:---|
| F-14 |
| *[**Table of Contents**](#toc)* |

---

**Lighthouse Life Capital, LLC**

**Notes to the Consolidated Financial Statements**

**For the Six Months Ended March 31, 2025 and 2024**

(unaudited)

**Note 6. Beacon Bonds and other Long-Term Debt (continued)**

The Company's obligation to redeem the Initial Bonds in any given year pursuant to Bondholder requests for redemption is limited to 10% of the outstanding principal balance of the Bonds, in the aggregate, on the most recent of January 1st, April 1st, July 1st or October 1st of the applicable year while the offering is open, and January 1st of the applicable year, following the offering termination. In addition, any Bonds redeemed as a result of a Bondholder's right upon death, disability or bankruptcy, will be included in calculating the 10% Limit and will thus reduce the number of Bonds, in the aggregate, to be redeemed pursuant to the redemption. Bond redemptions will occur in the order that notices are received. Any redemptions in excess of the 10% Limit (not including death, disability or bankruptcy claims), will be carried over to the next calendar year and redeemed at such time unless such carryover redemptions would exceed the 10% Limit for the new calendar year in which case they will be carried over to successive calendar years until redeemed; provided, however that if, during the pendency of the Offering, the 10% Limit is adjusted upward at the beginning of any succeeding calendar quarter, then such carried over redemptions will be redeemed as of such adjustment to extent they do not exceed the then in effect 10% Limit. As of March 31, 2025, the Company has redeemed a total of $1.2 million Class A Bonds and $434,000 Class B Bonds. As of March 31, 2025, the Company had no outstanding redemption requests.

The Initial Bonds may be redeemed at the Company's option at no penalty. If the Initial Bonds are renewed for an additional term, the Company may redeem the Initial Bonds at any time during such renewal period. The Company or the trustee will be required to offer to repurchase the Initial Bonds in the event of certain changes in control. Any such redemptions or repurchases will occur at a price equal to the then outstanding principal amount of the Initial Bonds, plus any accrued but unpaid interest.

As of March 31, 2025, the Company has raised $25.0 million in gross proceeds from the sale of the Initial Bonds. During the six months ended March 31, 2025, the Company has net contributions of $9.0 million of proceeds from our sole member, LHLS. As of both March 31, 2025 and September 30, 2024, the Company has capitalized $4.1 million of costs related to the Beacon Bond offering. These costs are amortized over the life of the bonds.

On March 27, 2025, the Company issued a Private Placement Memorandum ("the PPM") offering a maximum of $50,000,000 in the aggregate, of its 11.0% senior beacon bonds (the "Class C Bonds"), its 11.50% senior beacon bonds (the "Class CR Bonds"), its 9.0% senior beacon bonds (the "Class D Bonds"), and its 9.50% senior beacon bonds (the "Class DR Bonds"), collectively the "Senior Beacon Bonds". LHLS is offering to each holder of the Offered Bonds a contingent value right (a "CVR"). Each CVR represents the right to receive additional consideration in connection with a triggering event. Upon the occurrence of a triggering event, the holder of the CVR will be entitled to receive from LHLS the holder's pro rata share of a contingent payment amount. As of March 31, 2025, there are no Senior Beacon Bonds outstanding. During the six months ended March 31, 2025, the Company incurred costs of $283,169 for the issuance of the Senior Beacon Bonds. All costs have been capitalized and are recorded as deferred assets.

On March 7, 2024, $946,000 of Class B Bonds with maturity dates of February 1, 2024 and March 1, 2024 were repaid. On April 16, 2024, $415,000 of Class B Bonds with a maturity date of April 1, 2024 were repaid and on April 29, 2024, $72,000 of Class B Bonds with a maturity date of May 1, 2024 were repaid. The Company has elected to extend maturities for six months for Class B Bonds maturing on June 1, 2024 and beyond. On November 26, 2024, $527,000 of Class B Bonds with a maturity date of June 1, 2024, which was extended to December 1, 2024, were repaid. On January 2, 2025, $413,000 of Class B Bonds with a maturity date of July 1, 2024, which was extended to January 1, 2025, were repaid. On January 31, 2025, $160,000 of Class B Bonds with a maturity date of February 1, 2025, were repaid. On January 31, 2025, $983,000 of Class B Bonds with a maturity date of August 1, 2024, which was extended to February 1, 2025, were repaid. On February 28, 2025, $95,000 of Class B Bonds with a maturity date of September 1, 2024, which was extended to March 1, 2025, were repaid. On February 28, 2025, $340,000 of Class B Bonds with a maturity date of March 1, 2025, were repaid. On March 31, 2025, $526,000 of Class B Bonds with a maturity date of October 1, 2024, which was extended to April 1, 2025, were repaid. On March 31, 2025, $202,000 of Class B Bonds with a maturity date of April 1, 2025, were repaid. On April 30, 2025, $472,000 of Class B Bonds with a maturity date of November 1, 2024, which was extended to May 1, 2025, were repaid. On May 30, 2025, $819,000 of Class B Bonds with a maturity date of December 1, 2024, which was extended to June 1, 2025, were repaid. On May 30, 2025, $25,000 of Class B Bonds with a maturity date of June 1, 2025, were repaid.

Future contractual maturities of the Company for the next five 12-month periods ending March 31, and thereafter are as follows:

---

| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp; 2026 | $5196000 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2027 | 8013000 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2028 | 4985000 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2029 | 532000 |
| &nbsp;&nbsp;&nbsp;&nbsp; 2030 |  |
| Thereafter | - |
|  | $18726000 |

---

---

| |
|:---|
| F-15 |
| *[**Table of Contents**](#toc)* |

---

**Lighthouse Life Capital, LLC**

**Notes to the Consolidated Financial Statements**

**For the Six Months Ended March 31, 2025 and 2024**

(unaudited)

**Note 7. Fair Value Measures and Disclosures**

In analyzing the fair value of its investments accounted for on a fair value basis, the Company follows the fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The Company determines fair value based on quoted prices when available or, if quoted prices are not available, through the use of alternative approaches, such as discounting the expected cash flows using market interest rates commensurate with the credit quality and duration of the investment. The fair value of cash, restricted cash, accounts receivable, and accounts payable, approximate their carrying value due to their short nature. The hierarchy followed defines three levels of inputs that may be used to measure fair value:

*Level 1 -* Quoted prices in active markets for identical assets and liabilities that the reporting entity has the ability to access at the measurement date.

*Level 2 -* Inputs other than quoted prices included within Level 1 that are observable for the asset and liability or can be corroborated with observable market data for substantially the entire contractual term of the asset or liability.

*Level 3 -* Unobservable inputs that reflect the entity's own assumptions about the assumptions that market participants would use in the pricing of the asset or liability and are consequently not based on market activity, but rather through particular valuation techniques.

The determination of where an asset or liability falls in the hierarchy requires significant judgment. The Company evaluates its hierarchy disclosures each quarter; depending on various factors, it is possible that an asset or liability may be classified differently from quarter to quarter. However, the Company expects that changes in classifications between levels will be rare.

The Company reports Life Insurance Policies using the Investment Method. The fair value of policies is valued using unobservable inputs based on management's assumption of the current market valuation (Level 3). Where possible, the Company uses historical sales of similar policies to determine valuation to minimize risks in assessing fair value of policies.

The Company records estimated excess proceeds to be received from policies sourced to the Trading Trust using unobservable inputs based on management's assumption of the current market valuation (Level 3). Where possible, the Company uses historical sales of similar policies to determine valuation to minimize risks in assessing the fair value of policies. The Company also utilizes known expenses reducing the excess fee received to estimate the excess fee to be received.

The Company records Beacon Bonds Payable at carrying value. The fair value of Beacon Bonds payable is valuated using measurable inputs at the time of sale (Level 2).

The Company estimates the fair value of contingent consideration using valuation models that apply probabilities to discounted cash flows that are based on forecasted future operating results or other agreed upon metrics. The fair value estimates utilized a discount rate of 10.13% for projected cash flows. In order to estimate the cash and equity earnout contingent consideration liability associated with the probability of achieving the Settlement Benefits Association earnouts discussed in footnote 8, the Company utilized a Monte Carlo simulation. The Company utilized the Black-Scholes method to estimate the value of warrants for Common Stock of LHLS included in the contingent consideration and issued at close. The Black-Scholes method requires assumptions of future value of each tranche of equity, expected time until a liquidation event, total equity value, expected volatility, a dividend rate of 0, exercise price of $0.01 and risk-free interest rate over the time period until the liquidation event. The estimated total value of the company is $41.2 million with the estimate of vested Common Stock being $275,040. The Company estimated the expected time until a liquidation event occurs to be five years. The volatility of the underlying securities has been estimated using the median of the five-year historical stock price volatility for the guideline companies used in the Market Approach. The five-year median relevered volatility is 0.366. The final assumption involves an estimation of the discount rate to be used in estimating the present value of the shares in five years. Accordingly, a risk-free interest rate of 3.58% has been used in calculating the present value factors. As LHLS is privately held, it is necessary to apply a marketability and liquidity discount to the equity values calculated based on the assumptions previously noted. The Company utilized a 27% marketability and liquidity discount rate. Contingent consideration fair value was based, in part, on unobservable inputs that are significant to the overall fair value measurement (Level 3).

The Company estimates the fair value of the tradenames acquired in the Asset Purchase Agreements using the income approach, specifically the relief from royalty method. The Company applied significant judgment in determining the fair value of the intangible assets, which involved the use of unobservable inputs (Level 3), including estimates and assumptions of future revenues, royalty rates and discount rates. The major assumptions used in arriving at the estimated intangible asset values include management's estimates of future cash flows, discounted at an appropriate rate of return based on a weighted average cost of capital for the Company of 33.20% as well as a royalty rate of 2.15%.

The outstanding balance and estimated fair value of certain financial assets and liabilities are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **March 31, 2025** | **March 31, 2025** | **September 30, 2024** | **September 30, 2024** |
|  | **Outstanding Balance** | **Estimated Fair Value** | **Outstanding Balance** | **Estimated Fair Value** |
| Life Insurance Policies | $269415 | $446350 | $132846 | $222234 |
| Beacon Bonds, net | $17519803 | $18726000 | $21403749 | $23022000 |
| Contingent Consideration | $918139 | $918139 | $948809 | $948809 |
| Warrants for Common Stock of LHLS issued to SBA | $78446 | $78446 | $78446 | $78446 |
| Trade Names | $151000 | $151000 | $159000 | $159000 |
| Trading Trust Excess Fee Receivable <sup>(1)</sup> | $632601 | $632601 | $133660 | $133660 |

---

(1) Included in Accounts Receivable on the consolidated balance sheets

---

| |
|:---|
| F-16 |
| *[**Table of Contents**](#toc)* |

---

**Lighthouse Life Capital, LLC**

**Notes to the Consolidated Financial Statements**

**For the Six Months Ended March 31, 2025 and 2024**

(unaudited)

**Note 8. Business and Asset Acquisitions**

***Harbor Life Settlements***

On July 2, 2024, the Company acquired certain assets from HLS Marketing, LLC, Harbor Life Brokerage, LLC and JGL Fusion ("Harbor") for total consideration of $1.0 million. As a result of the transactions, the Company acquired intangible assets in the form of the rights to certain trade names and internet domains. The transaction was accounted for as an asset acquisition, and, as such, the purchase price was allocated to intangible assets. The estimated useful lives of these assets are 10 years. As of September 30, 2024, the Company performed a valuation of the assets acquired from Harbor, which supports a value of $40,000, resulting in an impairment of $980,524. In addition, per the asset purchase agreements with Harbor, the Company is obligated to pay additional consideration contingent on the Company's performance.

*CONTINGENT CONSIDERATION*

In accordance with the Asset Purchase Agreement with Harbor, the Company is obligated to pay a referral bonus equal to 25% of net revenue generated by a life insurance policy which has been referred to the Company as a direct result of the intangible assets acquired in the Harbor purchase agreement ("Qualified Policies"). The referral bonus period ends on July 2, 2026. Referral bonus payments are to be paid quarterly. As of July 2, 2024 and September 30, 2024, the fair value of the contingent consideration was $227,187, which is included in the contingent consideration liability. During the six months ended March 31, 2025, the Company paid a referral bonus of $20,997. Included in current liabilities is $121,288 of the contingent consideration.

The following is a summary of the asset acquisitions:

---

| | |
|:---|:---|
|  | **Harbor** |
| Purchase price | $750000 |
| Transaction costs | 43337 |
| Contingent Consideration | 227187 |
| Total consideration | $**1020524** |

---

 ***Settlement Benefits Holdings***

On September 17, 2024, the Company entered into an Asset Purchase Agreement with Settlement Benefits Association, Inc., Synaptiq Life, Inc., and Lippman and Weiss, LLC ("SBA"), pursuant to which the Company acquired a group of assets for consideration of $2.0 million cash paid at closing, $78,446 of warrants for Common Stock of LHLS and contingent consideration with a fair value of $721,622 and deferred consideration of $400,000 (the "Guaranteed Amount") for total consideration of $3.2 million. The Guaranteed Amount shall be payable in four equal quarterly installments of $100,000 on January 1, 2025, March 31, 2025, June 30, 2025 and September 30, 2025. As of March 31, 2025, the Company had $200,000 of the Guaranteed Amount in accounts payable in the consolidated balance sheets. The Company has incurred direct costs of $377,439 which were included in the consolidated statement of operations under professional fees expense during the six months ended September 30, 2024. The Company has purchased no shares of common stock of SBA and has assumed no liabilities. The acquisition is expected to facilitate increased leads and market share of the Company's life settlements. In accordance with *ASC 805, Business Combinations*, the Company has determined that the SBA agreement constitutes a business acquisition.

*CONTINGENT CONSIDERATION*

In accordance with the Asset Purchase Agreement with SBA, the Company is obligated to pay additional consideration contingent on the Company's performance. A referral bonus of 5% of net revenue generated as a direct result of any life settlement transaction with a fund or fund manager counterparty that did not close a life settlement transaction with the Company prior to June 19, 2024, or any other service provided by the Company to a client that was not a client of the Company prior to June 19, 2024 will be payable to SBA. The Company will be obligated to pay the referral bonus through the later of the earnout period ending August 31, 2027 or the date upon which neither Principal to the Asset Purchase Agreement is an employee of Lighthouse. The Company is also obligated to pay sales commissions of 0.15% of the net death benefit of Qualified policies, and 0.025% of the net death benefit of any Qualified Policy acquired by the Company. Sales commissions will be payable through the later of the earnout period ending August 31, 2027 or September 17, 2027. The Company may also pay additional consideration in the form of warrants for the purchase of common stock ("Earnout Equity") and cash ("Earnout Cash"). The Earnout Equity and Earnout Cash are payable if the Company reaches certain revenue targets through the fiscal year ending September 30, 2027.

---

| |
|:---|
| F-17 |
| *[**Table of Contents**](#toc)* |

---

The Earnout Equity shall be payable to SBA in three equal annual installments for the periods of June 19, 2024 through August 31, 2025 ("2025 Earnout Year"), September 1, 2025 through August 31, 2026 ("2026 Earnout Year"), and September 1, 2026 through August 31, 2027 ("2027 Earnout Year"). For each Earnout Year, the Company will pay an installment through the issuance of warrants, exercisable in the aggregate, for a number of shares of LHLS common stock determined by dividing the applicable Earnout Equity payment by $1,116.19. The Earnout Equity payment is due if the net revenue exceeds the minimum revenue targets set forth in the purchase agreement. The revenue equity target amount for Earnout Year 2025 is $2.0 million. The revenue equity target amount for Earnout Year 2026 is $3.0 million. The revenue equity target amount for Earnout Year 2027 is $4.0 million. The minimum business revenue target amount for Earnout Year 2025 is $1.6 million. The minimum business revenue target amount for Earnout Year 2026 is $2.4 million. The minimum business revenue target amount for Earnout Year 2027 is $3.2 million.

The Earnout Cash shall be payable to SBA in three equal annual installments for each Earnout Year. The Earnout Cash shall be payable only if the net revenue exceeds the business revenue cash target amount for the Earnout Year. The business revenue cash target amount for Earnout Year 2025 is $4.0 million. The business revenue cash target amount for Earnout Year 2026 is $7.0 million. The business revenue cash target amount for Earnout Year 2027 is $10.0 million. The Earnout Cash amount is a total of $2.1 million. The total purchase price including all earnouts is not to exceed $8.4 million. The referral bonus and sales commission are not included in the total purchase price calculation for the maximum potential consideration. The maximum potential additional consideration, excluding referral fees and commissions, to be paid is $5.3 million. As of March 31, 2025 and September 30, 2024, the fair value of the contingent consideration due to SBA is $711,949 and $721,622, respectively, which is included in the contingent consideration liability. During the six months ended March 31, 2025, the Company paid a referral bonus of $6,544. Included in current liabilities is $209,373 of the contingent consideration.

The following is our allocation of the fair value of the acquisition price as of September 30, 2024:

---

| | |
|:---|:---|
| **Recognized amounts of identifiable assets acquired and liabilities assumed** |  |
| Prepaid Expenses | $6188 |
| Tradenames | 120000 |
| **Total identifiable net assets** | $**126188** |
| Goodwill | 3055068 |
| **Acquisition price at closing** | $**3181256** |
| Cash paid at closing  | $1981188 |
| Contingent consideration | 721622 |
| Warrants issued for Common Stock of LHLS | 78446 |
| Deferred Guaranteed Amount <sup>(1)</sup> | 400000 |
| **Total Consideration at closing** | $**3181256** |

---

(1) Included in Accounts Payable on the consolidated balance sheets.

It is impracticable to provide historical supplemental pro forma financial information during the period prior to the acquisition due to the lack of access to such information. Results of the acquired business are included in the results of operations. Net Income contributed by this acquisition is not material due to the timing of the acquisition.

---

| |
|:---|
| F-18 |
| *[**Table of Contents**](#toc)* |

---

**Note 9. Goodwill and Intangible Assets**

Indefinite lived assets consist of goodwill obtained as part of the SBA business combination. Goodwill acquired represents existing leads, added synergy and increased exposure in the market. Goodwill will not be amortized but will be tested annually for impairment.

Goodwill and intangible assets consist of the following:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **For the six months ended March 31, 2025** | **For the six months ended March 31, 2025** | **For the six months ended March 31, 2024** | **For the six months ended March 31, 2024** |
|  | **Intangibles Assets** | **Goodwill** | **Intangibles Assets** | **Goodwill** |
| Beginning balance | $159000 | $3055068 | $- | $- |
| Acquisitions |  |  |  |  |
| Amortization | 8000 |  |  |  |
| Impairment | - | - |  |  |
| Ending balance | $151000 | $3055068 | $- | $- |

---

---

| | | | |
|:---|:---|:---|:---|
|  |  | **March 31, 2025** | **September 30, 2024** |
| Indefinite useful lives: |  |  |  |
| Goodwill |  | $3055068 | $3055068 |
|  |  | 3055068 | 3055068 |
|  | Amortization Period |  |  |
| Definite useful lives: |  |  |  |
| Tradenames | 10 | 151000 | $159000 |
|  |  | 151000 | 159000 |
| Total goodwill and intangible assets |  | $3206068 | $3214068 |

---

Expected future amortization expense is as follows:

---

| | |
|:---|:---|
| **For the 12 month period ended March 31,**  |  |
| 2026 | $16000 |
| 2027 | 16000 |
| 2028 | 16000 |
| 2029 | 16000 |
| 2030 | 16000 |
| Thereafter | 71000 |
| Total | $151000 |

---

**Note 10. Concentrations**

The Company has received revenue from one investor who also acts as a lender to LHLS and investor in the Series A Preferred, which in turn supports the operations of the Company. The investor had a right of first refusal for the purchase of all life insurance policies originated by Lighthouse Life Solutions, LLC that meet certain criteria as determined by the trustee acting in a fiduciary capacity as trustee on behalf of the investor, in exchange for a fee. This right of first refusal remained active until June 1, 2023.

The Company typically earns revenue primarily from one product/service. For the six months ended March 31, 2025, the Company received 71% of all revenue from two funders. As of March 31, 2025, these funders represented 56%, and 15% of all revenue. For the six months ended March 31, 2024, the Company received 69% of its total revenue from three funders. For the six months ended March 31, 2024, those funders represented 29%, 26% and 14% of the Company's revenue.

**Note 11. Subsequent Events**

The Company has evaluated subsequent events through June 25, 2025, which is through the date of this filing. Adjustments or additional disclosures, if any, have been included in these consolidated financial statements.

On May 27, 2025, the Company exchanged 500 Class A bonds for 500 Class C bonds. As of June 25, 2024, the Company has 500 Class C bonds outstanding.

On June 20, 2025, LHLS acquired ClearLife Limited, a UK company and its subsidiary, ClearLife LLC, a US-based company (collectively, "ClearLife"). ClearLife specializes in software solutions and consultancy services tailored for the life insurance and longevity sectors.

---

| |
|:---|
| F-19 |
| *[**Table of Contents**](#toc)* |

---

**Item 4. Exhibits**

---

| | |
|:---|:---|
| **Exhibit Number** | **Exhibit Description** |
| [(2)](http://www.sec.gov/Archives/edgar/data/1824921/000165495421001312/llc_ex11-.htm) | [Amended and Restated Limited Liability Company Agreement of Lighthouse Life Capital, LLC, incorporated by reference to Exhibit 1.1 to the Company's Current Report on Form 1-U filed on February 8, 2021](http://www.sec.gov/Archives/edgar/data/1824921/000165495421001312/llc_ex11-.htm) |
| [(3)(a)](http://www.sec.gov/Archives/edgar/data/1824921/000165495421000388/llc_ex31.htm) | [Form of Indenture between Lighthouse Life Capital, LLC and UMB Bank, N.A., incorporated by reference to Exhibit 3.1 of the Company's Current Report on Form 1-U filed on January 13, 2021](http://www.sec.gov/Archives/edgar/data/1824921/000165495421000388/llc_ex31.htm) |
| [(3)(b)(1)](http://www.sec.gov/Archives/edgar/data/1824921/000165495421001834/llc_ex3-1.htm) | [First Supplemental Indenture, dated as of February 17, 2021, between Lighthouse Life Capital, LLC and UMB Bank, N.A., incorporated by reference to Exhibit 3.1 to the Company's Current Report on Form 1-U filed on February 18, 2021](http://www.sec.gov/Archives/edgar/data/1824921/000165495421001834/llc_ex3-1.htm) |
| [(3)(b)(2)](http://www.sec.gov/Archives/edgar/data/1824921/000165495422016915/llc_ex3b2.htm) | [Second Supplemental Indenture, dated as of December 21, 2022, between Lighthouse Life Capital, LLC and UMB Bank, N.A., incorporated by reference to the Company's Post-Qualification Amendment to its Offering Statement on Form 1-A filed on December 28, 2022.](http://www.sec.gov/Archives/edgar/data/1824921/000165495422016915/llc_ex3b2.htm) |
| [(3)(c)](http://www.sec.gov/Archives/edgar/data/1824921/000165495421001834/llc_ex3-2.htm) | [Form of Class A Bond, as amended, incorporated by reference to Exhibit 3.2 to the Company's Current Report on Form 1-U filed on February 18, 2021](http://www.sec.gov/Archives/edgar/data/1824921/000165495421001834/llc_ex3-2.htm) |
| [(3)(d)](http://www.sec.gov/Archives/edgar/data/1824921/000165495421001834/llc_ex3-3.htm) | [Form of Class B Bond, as amended, incorporated by reference to Exhibit 3.3 to the Company's Current Report on Form 1-U filed on February 18, 2021](http://www.sec.gov/Archives/edgar/data/1824921/000165495421001834/llc_ex3-3.htm) |
| [(3)(e)](llc_ex3e.htm) | [Form of Indenture by between Lighthouse Life Capital, LLC and UMB Bank, N.A. dated March 27, 2025 for the Class C, Class CR, Class D, and Class DR Bonds.](llc_ex3e.htm) |
| [(3)(f)](llc_ex3f.htm) | [Form of Class C Bond](llc_ex3f.htm) |
| [(3)(g)](llc_ex3g.htm) | [Form of Class CR Bond](llc_ex3g.htm) |
| [(3)(h)](llc_ex3h.htm) | [Form of Class D Bond](llc_ex3h.htm) |
| [(3)(i)](llc_ex3i.htm) | [Form of Class DR Bond](llc_ex3i.htm) |
| [(4)](http://www.sec.gov/Archives/edgar/data/1824921/000165495420013539/llc_ex4.htm) | [Subscription Agreement, incorporated by reference to the Company's Offering Statement on Form 1-A filed on December 15, 2020](http://www.sec.gov/Archives/edgar/data/1824921/000165495420013539/llc_ex4.htm) |
| [(6)](http://www.sec.gov/Archives/edgar/data/1824921/000165495420013539/llc_ex6.htm) | [Amended and Restated Letter Agreement between Lighthouse Life Solutions, LLC and Brighton LH Trustees, LLC dated September 24, 2020, incorporated by reference to Exhibit 6 to the Company's Offering Statement on Form 1-A filed on December 4, 2020](http://www.sec.gov/Archives/edgar/data/1824921/000165495420013539/llc_ex6.htm) |
| [(9)](http://www.sec.gov/Archives/edgar/data/1824921/000165495421006524/llc_ex91.htm) | [Letter of BBD, LLP addressed to the Securities and Exchange Commission, dated June 2, 2021; incorporated by reference to Exhibit 9.1 to the Company's Current Report on Form 1-U filed on June 2, 2021](http://www.sec.gov/Archives/edgar/data/1824921/000165495421006524/llc_ex91.htm) |

---

6<br>

**SIGNATURES**

Pursuant to the requirements of Regulation A, this report has been signed below by the following persons on behalf of the issuer and in the capacities and on the dates indicated.

**Lighthouse Life Capital, LLC,**<br> a Delaware limited liability company<br>

---

| | | |
|:---|:---|:---|
| Date: June 27, 2025 | **By:** | */s/ Michael D. Freedman* |
|  | Name:  | Michael D. Freedman |
|  | Its:  | Chief Executive Officer<br> (Principal Executive Officer)  |

---

---

| | | |
|:---|:---|:---|
| Date: June 27, 2025 | **By:** | */s/ Jennifer Felice Breen* |
|  | Name:  | Jennifer Felice Breen |
|  | Its:  | Chief Financial Officer<br> (Principal Financial and<br> Accounting Officer)  |

---

7<br>

## Ex1Sa-3

&nbsp;&nbsp;&nbsp;&nbsp;**EXHIBIT 3(E)**

**LIGHTHOUSE LIFE CAPITAL, LLC**

**a Delaware limited liability company**

**Issuer**

**AND**

**UMB Bank, N.A.**

**Trustee**

**INDENTURE**

**Dated as of March 18, 2025**

**Debt Securities**

1<br>

****TABLE OF CONTENTS**<sub>(2)</sub>**

---

| | | |
|:---|:---|:---|
| **ARTICLE I DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION**  | **ARTICLE I DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION**  |  |
| Section 1.01 | Definitions of Terms | 5 |
| Section 1.02 | Rules of Construction. | 9 |
| Section 1.03 | Form of Documents Delivered to Trustee | 9 |
| **ARTICLE II ISSUE, DESCRIPTION, TERMS, EXECUTION, REGISTRATION AND EXCHANGE OF SECURITIES** | **ARTICLE II ISSUE, DESCRIPTION, TERMS, EXECUTION, REGISTRATION AND EXCHANGE OF SECURITIES** | 10 |
| Section 2.01 | Form of Bonds and Trustee's Certificate. | 10 |
| Section 2.02 | Denominations: Provisions for Payment. | 10 |
| Section 2.03 | Execution and Authentication. | 12 |
| Section 2.04 | Registration of Transfer and Exchange. | 12 |
| Section 2.05 | [Intentionally deleted] | 13 |
| Section 2.06 | Mutilated, Destroyed, Lost or Stolen Bonds. | 13 |
| Section 2.07 | Cancellation. | 13 |
| Section 2.08 | Benefits of Indenture. | 13 |
| Section 2.09 | Authenticating Agent. | 14 |
| Section 2.10 | Global Form of Bonds | 14 |
| **ARTICLE III REDEMPTION OF SECURITIES** | **ARTICLE III REDEMPTION OF SECURITIES** | 14 |
| Section 3.01 | Redemption. | 14 |
| Section 3.02 | Notice of Redemption. | 15 |
| Section 3.03 | Payment Upon Redemption. | 15 |
| **ARTICLE IV COVENANTS** | **ARTICLE IV COVENANTS** | 15 |
| Section 4.01 | Payment of Principal, Premium and Interest. | 15 |
| Section 4.02 | Maintenance of Office or Agency. | 16 |
| Section 4.03 | Paying Agents. | 16 |
| Section 4.04 | Appointment to Fill Vacancy in Office of Trustee. | 17 |
| Section 4.05 | Compliance with Consolidation Provisions. | 17 |
| Section 4.06 | Statement by Officers as to Default. | 17 |
| Section 4.07 | Additional Indebtedness. | 17 |
| Section 4.08 | Liens. | 17 |

---

---

| | | |
|:---|:---|:---|
| **ARTICLE V SECURITYHOLDERS' LISTS AND REPORTS BY THE COMPANY AND THE TRUSTEE** | **ARTICLE V SECURITYHOLDERS' LISTS AND REPORTS BY THE COMPANY AND THE TRUSTEE** | 18 |
| Section 5.01 | Company to Furnish Trustee Names and Addresses of Bondholders. | 18 |
| Section 5.02 | Preservation of Information; Communications With Bondholders. | 18 |
| Section 5.03 | Reports by the Company. | 18 |
| **ARTICLE VI REMEDIES OF THE TRUSTEE AND SECURITYHOLDERS ON EVENT OF DEFAULT** | **ARTICLE VI REMEDIES OF THE TRUSTEE AND SECURITYHOLDERS ON EVENT OF DEFAULT** | 19 |
| Section 6.01 | Event of Default. | 19 |
| Section 6.02 | Collection of Indebtedness and Suits for Enforcement by Trustee. | 20 |
| Section 6.03 | Application of Moneys Collected. | 21 |
| Section 6.04 | Limitation on Suits. | 21 |
| Section 6.05 | Rights and Remedies Cumulative; Delay or Omission Not Waiver. | 22 |
| Section 6.06 | Control by Bondholders. | 22 |
| Section 6.07 | Undertaking to Pay Costs. | 22 |

---

2<br>

---

| | | |
|:---|:---|:---|
| **ARTICLE VII CONCERNING THE TRUSTEE** | **ARTICLE VII CONCERNING THE TRUSTEE** | 23 |
| Section 7.01 | Certain Duties and Responsibilities of Trustee. | 23 |
| Section 7.02 | Notice of Defaults. | 23 |
| Section 7.03 | Certain Rights of Trustee. | 23 |
| Section 7.04 | Trustee Not Responsible for Recitals or Issuance or Bonds. | 24 |
| Section 7.05 | May Hold Bonds. | 25 |
| Section 7.06 | Moneys Held in Trust. | 25 |
| Section 7.07 | Compensation and Reimbursement. | 25 |
| Section 7.08 | Reliance on Officer's Certificate. | 25 |
| Section 7.09 | Disqualification; Conflicting Interests. | 26 |
| Section 7.10 | Corporate Trustee Requires; Eligibility. | 26 |
| Section 7.11 | Resignation and Removal; Appointment of Successor. | 26 |
| Section 7.12 | Acceptance of Appointment By Successor. | 27 |
| Section 7.13 | Merger, Conversion, Consolidation or Succession to Business. | 27 |
| **ARTICLE VIII CONCERNING THE BONDHOLDERS** | **ARTICLE VIII CONCERNING THE BONDHOLDERS** | 27 |
| Section 8.01 | Evidence of Action by Bondholders. | 27 |
| Section 8.02 | Proof of Execution by Bondholders. | 28 |
| Section 8.03 | Who May be Deemed Owners. | 28 |
| Section 8.04 | Certain Bonds Owned by Company Disregarded. | 28 |
| Section 8.05 | Actions Binding on Future Bondholders. | 28 |

---

---

| | | |
|:---|:---|:---|
| **ARTICLE IX SUPPLEMENTAL INDENTURES** | **ARTICLE IX SUPPLEMENTAL INDENTURES** | 29 |
| Section 9.01 | Supplemental Indentures Without the Consent of Bondholders. | 29 |
| Section 9.02 | Supplemental Indentures With Consent of Bondholders. | 30 |
| Section 9.03 | Effect of Supplemental Indentures. | 30 |
| Section 9.04 | Bonds Affected by Supplemental Indentures. | 30 |
| Section 9.05 | Execution of Supplemental Indentures. | 30 |
| **ARTICLE X SUCCESSOR ENTITY** | **ARTICLE X SUCCESSOR ENTITY** | 31 |
| Section 10.01 | Company May Not Consolidate, Etc. | 31 |
| **ARTICLE XI SATISFACTION AND DISCHARGE** | **ARTICLE XI SATISFACTION AND DISCHARGE** | 31 |
| Section 11.01 | Satisfaction and Discharge. | 31 |
| Section 11.02 | Deposited Moneys to be Held in Trust. | 32 |
| Section 11.03 | Payment of Moneys Held by Paying Agents. | 32 |
| Section 11.04 | Repayment of Company. | 32 |
| Section 11.05 | Reinstatement. | 32 |
| **ARTICLE XII IMMUNITY OF INCORPORATORS, STOCKHOLDERS, OFFICERS AND DIRECTORS** | **ARTICLE XII IMMUNITY OF INCORPORATORS, STOCKHOLDERS, OFFICERS AND DIRECTORS** | 32 |
| Section 12.01 | No Recourse. | 32 |
| **ARTICLE XIII MISCELLANEOUS PROVISIONS** | **ARTICLE XIII MISCELLANEOUS PROVISIONS** | 33 |
| Section 13.01 | Effect on Successors and Assigns. | 33 |
| Section 13.02 | Actions by Successor. | 33 |
| Section 13.03 | Surrender of Company Powers. | 33 |
| Section 13.04 | Notices. | 33 |
| Section 13.05 | Governing Law. | 33 |
| Section 13.06 | Treatment of Bonds as Debt. | 33 |
| Section 13.07 | Compliance Certificates and Opinions | 33 |
| Section 13.08 | Payments on Business Days | 34 |
| Section 13.09 | Counterparts. | 34 |
| Section 13.10 | Separability. | 34 |
| Section 13.11 | Electronic Storage | 34 |
| Form of Class C Bond | Form of Class C Bond | Exhibit A |
| Form of Class CR Bond | Form of Class CR Bond | Exhibit B |
| Form of Class D Bond  | Form of Class D Bond  | Exhibit C |
| Form of Class DR Bond  | Form of Class DR Bond  | Exhibit D  |

---

_____________________

(2) This **Table of Contents** does not constitute part of the Indenture and shall not have any bearing on the interpretation of any of its terms or provisions.

3<br>

**INDENTURE**

**INDENTURE**, dated as of, between LIGHTHOUSE LIFE CAPITAL, LLC, a Delaware limited liability company (the "Company" or the "Issuer"), and UMB Bank, N.A., as trustee (the "Trustee"):

**WHEREAS**, for its lawful corporate purposes, the Company has duly authorized the execution and delivery of this Indenture to provide for the issuance of unsecured debt securities (hereinafter referred to as the "Bonds"), in a maximum aggregate principal amount of Fifty Million Dollars ($50,000,000.00) as may be increased by supplement hereto subject to the limitations on the sale of securities pursuant to Rule 506(c) of Regulation D promulgated under the Securities Act of 1933, as amended, to be issued as registered Bonds, to be authenticated by the certificate of the Trustee;

**WHEREAS**, to provide the terms and conditions upon which the Bonds are to be authenticated, issued and delivered, the Company has duly authorized the execution of this Indenture; and

**WHEREAS**, all things necessary to make this Indenture a valid agreement of the Company, in accordance with its terms, have been done.

**NOW, THEREFORE**, in consideration of the premises and the purchase of the Bonds by the holders thereof, it is mutually covenanted and agreed as follows for the equal and ratable benefit of the holders of Bonds.

**ARTICLE I**

**DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION**

**Section 1.01 Definitions of Terms.**

The terms defined in this Section (except as in this Indenture otherwise expressly provided or unless the context otherwise requires) for all purposes of this Indenture and of any indenture supplemental hereto shall have the respective meanings specified in this Section and shall include the plural as well as the singular. All other terms used in this Indenture that are defined in the Trust Indenture Act of 1939, as amended, or that are by reference in said Trust Indenture Act defined in the Securities Act of 1933, as amended (except as herein otherwise expressly provided or unless the context otherwise requires), shall have the meanings assigned to such terms in said Trust Indenture Act and in said Securities Act as in force at the date of the execution of this instrument.

"**2020 Indenture**" means the Indenture by and between the Company and UMB Bank, N.A., as trustee to provide for the issuance of unsecured debt securities, including the Class A Bonds and the Class B Bonds.

"**Action Record Date**" has the meaning given in Section 8.01.

"**Affiliate**" as applied to any Person, any other Person directly or indirectly controlling, controlled by, or under direct or indirect common control with, such Person. For purposes of this definition, "control" (including, with correlative meanings, the terms "controlling," "controlled by" and "under common control with"), as applied to any Person, means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of such Person, whether through the ownership of voting securities, by contract or otherwise.

"**Applicable Governmental Agency**" means any of: (1) the Social Security Administration; (2) the U.S. Office of Personnel Management; or (3) the Veteran's Benefits Administration.

"**Authenticating Agent**" means an authenticating agent with respect to the Bonds appointed by the Trustee pursuant to Section 2.09.

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

"**Bonds**" means the bonds authenticated and delivered under this Indenture.

"**Bondholder**", "**holder** of **Bonds**", "**registered holder**", or other similar term, means the Person or Persons in whose name or names a particular Bond shall be registered on the books of the Company kept for that purpose in accordance with the terms of this Indenture.

"**Bond Register**" has the meaning given in Section 2.04.

"**Bond Registrar**" has the meaning given in Section 2.04.

"**Business Day**" means any day other than a day on which Federal or State banking institutions in the City of Conshohocken, Pennsylvania, are authorized or obligated by law, executive order or regulation to close.

"**Capital Stock**" means: (1) in the case of a corporation, corporate stock; (2) in the case of an association or business entity, any and all shares, interests, participations, rights or other equivalents (however designated) of corporate stock; (3) in the case of a partnership or limited liability company, partnership or membership interests (whether general or limited); and (4) any other interest or participation that confers on a Person the right to receive a share of the profits and losses of, or distributions of assets of, the issuing Person but excluding from all of the foregoing any debt securities convertible into Capital Stock, whether or not such debt securities include any right of participation with Capital Stock.

"**Cash and Cash Equivalents**" shall have the meaning prescribed by GAAP.

"**Certificate**" means a certificate signed by the principal executive officer, the principal financial officer or the principal accounting officer of the Company. The Certificate need not comply with the provisions of Section 13.07.

"**Class A Bonds**" are the class of Securities issued under the 2020 Indenture and which are described by the Company pursuant to an offering statement qualified on Form 1-A by the Securities and Exchange Commission (the "**SEC**") on December 30, 2020, as subsequently amended and re-qualified (the "**2020 Offering Statement**").

"**Class B Bonds**" are the class of Securities issued under the 2020 Indenture and described by the Company pursuant to the 2020 Offering Statement.

"**Class C Bonds**" are a class of Securities authorized for issuance under this Indenture, the form of which is attached to the Indenture as Exhibit A.

"**Class CR Bonds**" are a class of Securities authorized for issuance under this Indenture, the form of which is attached to the Indenture as Exhibit B.

"**Class D Bonds**" are a class of Securities authorized for issuance under this Indenture, the form of which is attached to the Indenture as Exhibit C.

"**Class DR Bonds**" are a class of Securities authorized for issuance under this Indenture, the form of which is attached to the Indenture as Exhibit D.

"**Company**" means Lighthouse Life Capital, LLC, a limited liability company duly organized and existing under the laws of the State of Delaware, and, subject to the provisions of Article X, shall also include its successors and assigns.

**"Company Assets"** means, with respect to the Company, all assets and interests in assets of the Company, whether real, personal or mixed, whether directly owned or indirectly owned, including without limitation interests owned in Subsidiaries, whether now owned or existing or hereafter acquire or arising and wheresoever located.

"**Corporate Trust Office**" means the principal office of the Trustee at which at any time its corporate trust business shall be administered, which office at the date hereof is located at 928 Grand Blvd, 12th Floor, Kansas City, MO 64106, Attention: Lara Stevens, or such other address as the Trustee may designate from time to time by notice to the Holders and the Company, or the principal corporate trust office of any successor Trustee (or such other address as such successor Trustee may designate from time to time by notice to the Holders and the Company).

"**Custodian**" means any receiver, trustee, assignee, liquidator or similar official under any Bankruptcy Law.

"**Default**" means any event, act or condition that with notice or lapse of time, or both, would constitute an Event of Default as specified in Section 6.01.

"**Defaulted Interest**" has the meaning given in Section 2.02.

**"Depositary"** means, with respect to the Bonds, DTC, Cede & Co. or Phoenix American Financial Services, Inc., as the case may be, and any and all successors thereto appointed by the Issuer as Depositary hereunder and having become such pursuant to the applicable provision of this Indenture.

"**DTC**" means The Depository Trust Company.

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

"**Event of Default**" means any event specified in Section 6.01, continued for the period of time, if any, therein designated.

"**Exchange Act**" means the Securities Exchange Act of 1934, as amended, or any successor statute or statutes thereto.

"**GAAP**" means United States generally accepted accounting principles.

"**Governmental Obligations**" means securities that are (i) direct obligations (other than obligations subject to variation in principal repayment) of the United States of America for the payment of which its full faith and credit is pledged or (ii) obligations of a Person controlled or supervised by and acting as an agency or instrumentality of the United States of America, the payment of which is unconditionally guaranteed as a full faith and credit obligation by the United States of America that, in either case, are not callable or redeemable prior to maturity at the option of the issuer thereof, and shall also include a depositary receipt issued by a bank (as defined in Section 3(a)(2) of the Securities Act of 1933, as amended) as custodian with respect to any such Governmental Obligation or a specific payment of principal of or interest on any such Governmental Obligation held by such custodian for the account of the holder of such depositary receipt; *provided, however*, that (except as required by law) such custodian is not authorized to make any deduction from the amount payable to the holder of such depositary receipt from any amount received by the custodian in respect of the Governmental Obligation or the specific payment of principal of or interest on the Governmental Obligation evidenced by such depositary receipt.

"**Herein**", "**hereof**" and "**hereunder**", and other words of similar import, refer to this Indenture as a whole and not to any particular Article, Section or other subdivision.

"**Indenture**" means this instrument as originally executed or as it may from time to time be supplemented or amended by one or more indentures supplemental hereto entered into in accordance with the terms hereof, including, for all purposes of this instrument and any such supplemental indenture, the provisions of the Trust Indenture Act that are specifically referenced and incorporated herein or in any such supplemental indenture, respectively.

"**Initial Interest Payment Date**" means the initial date for payment of interest as set forth in the applicable Bond.

**"Interest Accrual Period"** means the period beginning on any Interest Payment Date and continuing up to but not including the next Interest Payment Date, or if interest has not been paid, from the date of issuance up to but not including the Initial Interest Payment Date.

"**Interest Payment Date**" means the date for payment of interest as set forth in the applicable Bond.

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

"**Maturity Date**" means, with respect to any Bond, the date on which the principal of such Bond becomes due and payable as stated in the applicable form of Bond.

"**Maturity Record Date**" has the meaning set forth in Section 2.02(c).

"**Notice of Maturity**" means a notice from the Company to a Bondholder that the Bondholder's Bonds will be maturing on the related Maturity Date.

"**Opinion of Counsel**" means an opinion in writing of legal counsel, who may be an employee of or counsel for the Company that is delivered to the Trustee in accordance with the terms hereof. Each such opinion shall include the statements provided for in Section 13.07, if and to the extent required by the provisions thereof.

"**Outstanding**" means, subject to the provisions of Section 8.04, as of any particular time, all Bonds theretofore authenticated and delivered by the Trustee under this Indenture, except (a) Bonds theretofore canceled by the Trustee or any paying agent, or delivered to the Trustee or any paying agent for cancellation or that have previously been canceled; (b) Bonds or portions thereof for the payment or redemption of which moneys or Governmental Obligations in the necessary amount shall have been deposited in trust with the Trustee or with any paying agent (other than the Company) or shall have been irrevocably set aside and segregated in trust by the Company (if the Company shall act as its own paying agent); *provided, however*, that if such Bonds or portions of such Bonds are to be redeemed prior to the maturity thereof, notice of such redemption shall have been given as in Article III or provision satisfactory to the Trustee shall have been made for giving such notice; and (c) Bonds in lieu of or in substitution for which other Bonds shall have been authenticated and delivered pursuant to the terms of Section 2.06.

"**Person**" means any individual, corporation, limited liability company, partnership, joint-venture, joint-stock company, trust, unincorporated organization or government or any agency or political subdivision thereof.

"**Predecessor Bond**" of any particular Bond means every previous Bond evidencing all or a portion of the same debt as that evidenced by such particular Bond; and, for the purposes of this definition, any Bond authenticated and delivered under Section 2.06 in lieu of a lost, destroyed or stolen Bond shall be deemed to evidence the same debt as the lost, destroyed or stolen Bond.

"**Property**" means any interest in any kind of property or asset, whether, real, personal or mixed, whether tangible or intangible, owned or acquired by the Company or any Subsidiary of the Company.

"**Qualifying Disability**" means, with respect to any Bondholder or beneficial holder, a determination of disability based upon a physical or mental condition or impairment arising after the date such Bondholder or beneficial holder first acquired Bonds. Any such determination of disability must be made by the Applicable Governmental Agency responsible for reviewing the disability retirement benefits that the applicable Bondholder or beneficial holder could be eligible to receive.

**"Record Date"** means, with respect to an Interest Payment Date shall mean the first day of the month in which an Interest Payment Date shall occur, whether or not such date is a Business Day.

"**Responsible Officer**" when used with respect to the Trustee means the Chairman of the Board of Directors, the President, any Vice President, the Secretary, the Treasurer, any trust officer, any corporate trust officer or any other officer or assistant officer of the Trustee customarily performing functions similar to those performed by the Persons who at the time shall be such officers, respectively, or to whom any corporate trust matter is referred because of his or her knowledge of and familiarity with the particular subject.

**"SEC"** means the U.S. Securities and Exchange Commission.

**"Sole Member"** means the Sole Member of the Company as may be designated from time to time in accordance with the Company's operating agreement. As of the date hereof, the Sole Member is LHL Strategies, Inc., a Delaware corporation and sole member of the Company.

"**Sole Member's Certificate**" means a certificate signed by the Sole Member of the Company that is delivered to the Trustee in accordance with the terms hereof. Each such certificate shall include the statements provided for in Section 13.07, if and to the extent required by the provisions thereof.

"**Subsidiary**" means, with respect to any Person, (i) any corporation at least a majority of whose outstanding Voting Stock shall at the time be owned, directly or indirectly, by such Person or by one or more of its Subsidiaries or by such Person and one or more of its Subsidiaries, (ii) any general partnership, limited liability company, joint venture or similar entity, at least a majority of whose outstanding partnership or similar interests shall at the time be owned by such Person, or by one or more of its Subsidiaries, or by such Person and one or more of its Subsidiaries and (iii) any limited partnership of which such Person or any of its Subsidiaries is a general partner.

"**Trustee**" means UMB Bank, N.A. and, subject to the provisions of Article VII, shall also include its successors and assigns, and, if at any time there is more than one Person acting in such capacity hereunder, "Trustee" shall mean each such Person.

"**Voting Stock**", as applied to stock of any Person, means shares, interests, participations or other equivalents in the equity interest (however designated) in such Person having ordinary voting power for the election of a majority of the directors (or the equivalent) of such Person, other than shares, interests, participations or other equivalents having such power only by reason of the occurrence of a contingency.

**Section 1.02 Rules of Construction**

For all purposes of this Indenture, except as otherwise expressly provided or unless the context otherwise requires:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) the terms defined in this Article have the meanings assigned to them in this Article and include the plural as well as the singular;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) all other terms used herein which are defined in the Trust Indenture Act, either directly or by reference therein, have the meanings assigned to them therein;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (3) all accounting terms not otherwise defined herein have the meanings assigned to them in accordance with generally accepted accounting principles in the United States of America, and, except as otherwise herein expressly provided, the term "generally accepted accounting principles" with respect to any computation required or permitted hereunder shall mean such accounting principles as are generally accepted in the United States of America at the date of such computation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) the words "herein", "hereof" and "hereunder" and other words of similar import refer to this Indenture as a whole and not to any particular Article, Section or other subdivision;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) the word "or" is always used inclusively (for example, the phrase "A or B" means "A or B or both", not "either A or B but not both");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6) the masculine gender includes the feminine and the neuter; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7) references to agreements and other instruments include subsequent amendments and supplements thereto.

**Section 1.03 Form of Documents Delivered to Trustee.**

In any case where several matters are required to be certified by, or covered by an opinion of, any specified Person, it is not necessary that all such matters be certified by, or covered by the opinion of, only one such Person, or that they be so certified or covered by only one document, but one such Person may certify or give an opinion with respect to some matters and one or more other such Persons as to other matters, and any such Person may certify or give an opinion as to such matters in one or several documents.

Any certificate or opinion of an officer of the Company may be based, insofar as it relates to legal matters, upon an Opinion of Counsel, unless such officer knows, or in the exercise of reasonable care should know, that the opinion with respect to the matters upon which his certificate or opinion is based is erroneous. Any such Opinion of Counsel may be based, insofar as it relates to factual matters, upon a certificate or opinion of, or representations by, an officer or officers of the Company, a governmental official or officers or any other Person or Persons, stating that the information with respect to such factual matters is in the possession of the Company unless such counsel knows, or in the exercise of reasonable care should know, that the certificate, opinion or representations with respect to such matters are erroneous.

Where any Person is required to make, give or execute two or more applications, requests, consents, certificates, statements, opinions or other instruments under this Indenture or any Bond, they may, but need not, be consolidated and form one instrument.

**ARTICLE II**

**ISSUE, DESCRIPTION, TERMS, EXECUTION, REGISTRATION AND** 

**EXCHANGE OF SECURITIES**

**Section 2.01 Form of Bonds and Trustee's Certificate.**

The Bonds may be issued in book entry form, uncertified form, or certified form. Except for Bonds held by a Depository through a global bond, Bonds will only be certified at the Company's discretion. The Bonds and the certificate of authentication shall be substantially in the forms of <u>Exhibits A - D</u> hereto and in such other forms as authorized pursuant to this Indenture. The Bonds may have such letters, numbers or other marks of identification or designation and such legends or endorsements printed, lithographed or engraved thereon as the Company may deem appropriate and as are not inconsistent with the provisions of this Indenture, or as may be required to comply with any law or with any rule or regulation made pursuant thereto or with any rule or regulation of any stock exchange on which the Bonds may be listed, or to conform to usage. The terms and conditions contained in the Bonds shall constitute, and are hereby expressly made, a part of this Indenture and, to the extent applicable, the Issuer and the Trustee, by their execution and delivery of this Indenture, expressly agree to such terms and provisions and to be bound thereby. However, to the extent any provision of any Bond conflicts with the express provisions of this Indenture, the provisions of this Indenture shall govern and be controlling.

Bonds shall be issued from time to time upon receipt by the Trustee of a written order of the Company stating the terms and conditions of the Bonds and principal amount of Bonds to be issued and that it has delivered to the Trustee the items required by Section 2.03. All Bonds issued under this Indenture shall rank pari passu. For Bonds issued, at the request of the Trustee, the Company shall deliver prior to issuance of such Bonds a Form W-9 for each registered holder of such Bonds and any other information required by law or as reasonable requested by the Bond Registrar to maintain the Bond Register and make the payments to the registered holders. The Trustee, Paying Agent and Bond Registrar may conclusively rely upon such information provided by the Company.

**Section 2.02 Denominations; Provisions for Payment; Maturity.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Bonds shall be issuable as registered Bonds and in the denominations of One Thousand U.S. dollars ($1,000) or any integral multiple thereof. Initially, the Bonds will be offered serially in four classes, Class C, Class CR and Class D and Class DR, with the sole difference between the series being their respective Maturity Dates, starting from the date of the confidential private placement memorandum (the "Memorandum") March 18, 2025. Each series of Bonds beginning with Series C-1 for Class C Bonds, Class CR-1 for Class CR Bonds, Series D-1 for Class D Bonds, and Series DR-1 for Class DR Bonds will correspond to a particular closing for the applicable class of Bonds. Additional classes and series of Bonds may be authorized and issued as permitted hereby.

The principal of and the interest on the Bonds, as well as any premium thereon in case of redemption thereof prior to maturity, shall be payable in the coin or currency of the United States of America that at the time is legal tender for public and private debt, at the Corporate Trust Office or agency of the Paying Agent; *provided, however*, that at the option of the Company and with prior written notice to the Trustee thereof and prior written consent of the registered holder of the Bond, payment of interest, may be made by check mailed by the Company directly to the address of the Person entitled thereto as such address shall appear in the Bond Register or shall be wired by the Company in accordance with the wire instructions provided by the registered holder of the Bond instead of first being deposited with the Trustee. In such case, the Trustee shall be entitled to rely conclusively upon the records of the Company in determining the amount of Bonds Outstanding. Each Bond shall be dated the date of its authentication by the Trustee. Interest on the Bonds shall be computed on the basis of a 360-day year consisting of twelve 30-day months. The interest installment on any Bond that is payable, and is punctually paid or duly provided for, on any Interest Payment Date shall be paid to the Person in whose name said Bond (or one or more Predecessor Bonds) is registered at the close of business on the Record Date for such interest installment. In the event that any Bond is called for redemption and the redemption date is subsequent to a Record Date with respect to any Interest Payment Date and prior to such Interest Payment Date, interest on such Bond will be paid upon presentation and surrender to the Paying Agent of such Bond as provided in Section 3.03. Notwithstanding any other provisions of this Section 2.02, for Bonds held in Global Form payment of principal of and any interest on the Bonds shall be made to a Depositary or its nominee, as the case may be, as the sole registered owner and holder of the Bonds for all purposes under this Indenture.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Any interest on any Bond that is payable, but is not punctually paid or duly provided for, on any Interest Payment Date (herein called "Defaulted Interest") shall forthwith cease to be payable to the registered holder on the relevant Record Date by virtue of having been such holder; and such Defaulted Interest shall be paid by the Company, at its election, as provided in clause (1) or clause (2) below:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) The Company may make payment of any Defaulted Interest on Bonds to the Persons in whose names such Bonds (or their respective Predecessor Bonds) are registered at the close of business on a special record date for the payment of such Defaulted Interest, which shall be fixed in the following manner: the Company shall notify the Trustee in writing of the amount of Defaulted Interest proposed to be paid on each such Bond and the date of the proposed payment, and at the same time the Company shall deposit with the Trustee an amount of money equal to the aggregate amount proposed to be paid in respect of such Defaulted Interest or shall make arrangements satisfactory to the Trustee for such deposit prior to the date of the proposed payment, such money when deposited to be held in trust for the benefit of the Persons entitled to such Defaulted Interest as in this clause provided. Thereupon the Trustee shall fix a special record date for the payment of such Defaulted Interest which shall not be more than 15 nor less than 10 days prior to the date of the proposed payment and not less than 10 days after the receipt by the Trustee of the notice of the proposed payment. The Trustee shall promptly notify the Company of such special record date and, in the name and at the expense of the Company, shall cause notice of the proposed payment of such Defaulted Interest and the special record date therefor to be mailed, first class postage prepaid, to each Bondholder at his or her address as it appears in the Bond Register (as hereinafter defined), not less than 10 days prior to such special record date. Notice of the proposed payment of such Defaulted Interest and the special record date therefor having been mailed as aforesaid, such Defaulted Interest shall be paid to the Persons in whose names such Bonds (or their respective Predecessor Bonds) are registered on such special record date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) The Company may make payment of any Defaulted Interest on any Bonds in any other lawful manner not inconsistent with the requirements of any securities exchange on which such Bonds may be listed, and upon such notice as may be required by such exchange, if, after notice given by the Company to the Trustee of the proposed payment pursuant to this clause, such manner of payment shall be deemed practicable by the Trustee. Subject to the foregoing provisions of this Section, each Bond delivered under this Indenture upon transfer of or in exchange for or in lieu of any other Bond shall carry the rights to interest accrued and unpaid, and to accrue, that were carried by such other Bond.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Unless otherwise provided in the applicable form of Bond, no later than 60 days prior to the Maturity Date of a Bond the Company shall send to the Paying Agent, Trustee, and each holder of record of such maturing Bond as of the record date set forth in the Notice of Maturity described in the next succeeding clause, or if no such record date is set forth then the date of such Notice of Maturity (a "Maturity Record Date"), a Notice of Maturity (via first class U.S. mail, facsimile or electronic transmission) stating the Maturity Date and whether the Company intends to elect any rights of extension of the Maturity Date as may be set forth in the applicable form of Bond. Unless otherwise provided in the applicable form of the Bond, to the extent the Company fails to provide such Notice of Maturity no later than 60 days prior to the Maturity Date of a Bond, the Company shall be deemed to have waived any right of extension of the Maturity Date and the Company shall pay all amounts due on the Maturity Date.

**Section 2.03 Execution and Authentication.**

If the Bonds are certificated, the Bonds shall be signed on behalf of the Company by its Sole Member. Signatures may be in the form of a manual or facsimile signature. The Company may use the facsimile signature of any Person who shall have been a Sole Member, notwithstanding the fact that at the time the Bonds shall be authenticated and delivered or disposed of such Person shall have ceased to be the Sole Member of the Company. The Bonds may contain such notations, legends or endorsements required by law, stock exchange rule or usage. A Bond shall not be valid until authenticated manually by an authorized signatory of the Trustee, or by an Authenticating Agent. Such signature shall be conclusive evidence that the Bond so authenticated has been duly authenticated and delivered hereunder and that the holder is entitled to the benefits of this Indenture. At any time and from time to time after the execution and delivery of this Indenture, the Company may deliver Bonds executed by the Company to the Trustee for authentication, together with a written order of the Company for the authentication and delivery of such Bonds, signed by its Sole Member, and the Trustee in accordance with such written order shall authenticate and deliver such Bonds.

Prior to the initial issuance of the Bonds, in authenticating such Bonds and accepting the additional responsibilities under this Indenture in relation to such Bonds, the Trustee shall be entitled to receive, and (subject to Section 7.01) shall be fully protected in relying upon, an Opinion of Counsel stating that (1) the Company is permitted by law to enter into this Indenture, (2) the form and terms of the Bonds have been established in conformity with the provisions of this Indenture and all applicable SEC requirements, and (3) that such Bonds, when issued by the Company and if applicable, authenticated and delivered by the Trustee will constitute valid and legally binding obligations of the Company enforceable in accordance with their terms, subject to any Bankruptcy Law or other insolvency, fraudulent transfer, reorganization, moratorium and similar laws of general applicability relating to or affecting creditors' rights and to general equity principles (regardless of whether enforcement is sought in a proceeding in equity or at law); and a Sole Member's Certificate stating that all conditions precedent provided for in this Indenture relating to the issuance of the Bonds have been complied with and that, to the best of the knowledge of the signers of such Sole Member's Certificate, no Event of Default with respect to any of the Bonds shall have occurred and be continuing. Additionally, prior to the issuance of any Bonds after the initial issuance, the Company shall deliver to the Trustee a Sole Member's Certificate stating that all conditions precedent provided for in this Indenture relating to the issuance of the Bonds have been complied with and that, to the best of the knowledge of the signers of such Sole Member's Certificate, no Event of Default with respect to any of the Bonds shall have occurred and be continuing. The Trustee may conclusively rely upon the Opinion of Counsel and Sole Member's Certificate in authenticating the Bonds and accepting the responsibility under this Indenture. The Trustee shall not be required to authenticate such Bonds if the issue of such Bonds pursuant to this Indenture will affect the Trustee's own rights, duties or immunities under the Bonds and this Indenture or otherwise in a manner that is not reasonably acceptable to the Trustee.

**Section 2.04 Registration of Transfer and Exchange.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Bonds may be exchanged upon presentation thereof at the office or agency of the Bond Registrar (as defined herein), or such other location designated by the Company, for other Bonds of authorized denominations, and for a like aggregate principal amount, upon payment of a sum sufficient to cover any tax or other governmental charge in relation thereto, all as provided in this Section. In respect of any Bonds so surrendered for exchange, the Company shall execute, the Trustee shall authenticate and such office or agency shall deliver in exchange therefor the Bond or Bonds that the Bondholder making the exchange shall be entitled to receive, bearing numbers not contemporaneously outstanding.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Company shall keep, or cause to be kept, at its office or agency designated for such purpose, a register or registers (herein referred to as the "Bond Register") in which, subject to such reasonable regulations as it may prescribe, the Bond Registrar (as defined herein) shall register the Bonds and the transfers of Bonds as in this Article provided and which at all reasonable times shall be open for inspection by the Trustee. The registrar for the purpose of registering Bonds and transfer of Bonds as herein provided shall be appointed as authorized by the Company (the "Bond Registrar"). The initial Bond Registrar for Bonds held in global form by DTC or its nominee is UMB Bank, N.A., and the initial Bond Registrar for Bonds in any other name is Phoenix American Financial Services, Inc. (each a "Bond Registrar"). Upon surrender for transfer of any Bond with the Bond Registrar together with all documentation required by the Bond Registrar, the Company shall execute, the Trustee shall authenticate and such office or agency shall deliver in the name of the transferee or transferees a new Bond as the Bond presented for a like aggregate principal amount. All Bonds presented or surrendered for exchange or registration of transfer, as provided in this Section, shall be accompanied (if so required by the Company or the Bond Registrar) by a written instrument or instruments of transfer, in form satisfactory to the Company and the Bond Registrar, duly executed by the registered holder or by such holder's duly authorized attorney in writing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) No service charge shall be made for any exchange or registration of transfer of Bonds, but the Company may require payment of a sum sufficient to cover any tax or other governmental charge in relation thereto, other than exchanges pursuant to Section 2.04, Section 3.03(b) and Section 9.04 not involving any transfer. The Company shall not be required (i) to issue, exchange or register the transfer of any Bonds during a period beginning at the opening of business 15 days before the day of the mailing of a notice of redemption of less than all the Outstanding Bonds and ending at the close of business on the day of such mailing, nor (ii) to register the transfer of or exchange any Bonds called for redemption.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The transfer and exchange of beneficial interests in the Bonds represented by a global note will be effected through the respective Depositary, in accordance with the procedures of the Depositary.

If applicable, upon notification from the Depositary, the Trustee shall adjust the principal amount of the relevant Bond(s) pursuant to Section 2.04(e) in accordance with the procedures of the Depositary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) At any time prior to cancellation of a Bond, if any beneficial interest in such a Bond held by a Depositary is exchanged for or transferred to a Person who will take delivery thereof in the form of a beneficial interest in another Bond issued under this Indenture, the Depositary will direct the Trustee and Paying Agents to reduce the principal amount represented by such Bond in accordance with the procedures of the Depositary; and if the beneficial interest is being exchanged for or transferred to a Person who will take delivery thereof in the form of a beneficial interest in another Bond issued under this Indenture, the Depositary will provide written direction to the Trustee and Paying Agents to increase such other Bond in accordance with the procedures of the Depositary. The Trustee and Paying Agents may rely upon any written direction or notice received from a Depositary under this Section.

**Section 2.05** [Intentionally deleted]

**Section 2.06 Mutilated, Destroyed, Lost or Stolen Bonds.**

In case any Bond shall become mutilated or be destroyed, lost or stolen, the Company (subject to the next succeeding sentence) shall execute, and upon the Company's request the Trustee (subject as aforesaid) shall authenticate and deliver, a new Bond bearing a number not contemporaneously outstanding, in exchange and substitution for the mutilated Bond, or in lieu of and in substitution for the Bond so destroyed, lost or stolen. In every case the applicant for a substituted Bond shall furnish to the Company and the Trustee such security or indemnity as may be required by them to save each of them harmless, and, in every case of destruction, loss or theft, the applicant shall also furnish to the Company and the Trustee evidence to their satisfaction of the destruction, loss or theft of the applicant's Bond and of the ownership thereof. The Trustee may authenticate any such substituted Bond and deliver the same upon the written request or authorization of any officer of the Company. Upon the issuance of any substituted Bond, the Company may require the payment of a sum sufficient to cover any tax or other governmental charge that may be imposed in relation thereto and any other expenses (including the fees and expenses of the Trustee) connected therewith. In case any Bond that has matured or is about to mature shall become mutilated or be destroyed, lost or stolen, the Company may, instead of issuing a substitute Bond, pay or authorize the payment of the same (without surrender thereof except in the case of a mutilated Bond) if the applicant for such payment shall furnish to the Company and the Paying Agent and Bond Registrar and Trustee such security or indemnity as they may require to save them harmless, and, in case of destruction, loss or theft, evidence to the satisfaction of the Company, Paying Agent and Bond Registrar and the Trustee of the destruction, loss or theft of such Bond and of the ownership thereof. Every replacement Bond issued pursuant to the provisions of this Section shall constitute an additional contractual obligation of the Company whether or not the mutilated, destroyed, lost or stolen Bond shall be found at any time, or be enforceable by anyone, and shall be entitled to all the benefits of this Indenture equally and proportionately with any and all other Bonds duly issued hereunder. All Bonds shall be held and owned upon the express condition that the foregoing provisions are exclusive with respect to the replacement or payment of mutilated, destroyed, lost or stolen Bonds, and shall preclude (to the extent lawful) any and all other rights or remedies, notwithstanding any law or statute existing or hereafter enacted to the contrary with respect to the replacement or payment of negotiable instruments or other securities without their surrender.

**Section 2.07 Cancellation.**

All Bonds surrendered for the purpose of payment, redemption, exchange or registration of transfer shall, if surrendered to the Company or any paying agent, be delivered to the Trustee for cancellation, or, if surrendered to the Trustee, shall be cancelled by it, and no Bonds shall be issued in lieu thereof except as expressly required or permitted by any of the provisions of this Indenture. The Trustee may dispose of canceled Bonds in accordance with its standard procedures and deliver a certificate of disposition to the Company. If the Company shall otherwise acquire any of the Bonds, however, such acquisition shall not operate as a redemption or satisfaction of the indebtedness represented by such Bonds unless and until the same are delivered to the Trustee for cancellation.

**Section 2.08 Benefits of Indenture.**

Nothing in this Indenture or in the Bonds, express or implied, shall give or be construed to give to any Person, other than the parties hereto and the holders of the Bonds any legal or equitable right, remedy or claim under or in respect of this Indenture, or under any covenant, condition or provision herein contained; all such covenants, conditions and provisions being for the sole benefit of the parties hereto and of the holders of the Bonds.

**Section 2.09 Authenticating Agent.**

So long as any of the Bonds remain Outstanding there may be an Authenticating Agent for any or all Bonds which the Trustee shall have the right to appoint. Said Authenticating Agent shall be authorized to act on behalf of the Trustee and the Paying Agent to authenticate Bonds issued upon exchange, transfer or partial redemption thereof, and Bonds so authenticated shall be entitled to the benefits of this Indenture and shall be valid and obligatory for all purposes as if authenticated by the Trustee or Paying Agent hereunder. For the avoidance of doubt, the Company hereby authorizes each Paying Agent to authenticate the Bonds. Each Authenticating Agent shall be acceptable to the Company and shall be a corporation that has a combined capital and surplus, as most recently reported or determined by it, sufficient under the laws of any jurisdiction under which it is organized or in which it is doing business to conduct a trust business, and that is otherwise authorized under such laws to conduct such business and is subject to supervision or examination by Federal or State authorities. If at any time any Authenticating Agent shall cease to be eligible in accordance with these provisions, it shall resign immediately. Any Authenticating Agent may at any time resign by giving written notice of resignation to the Trustee and to the Company. The Trustee may at any time (and upon request by the Company shall) terminate the agency of any Authenticating Agent by giving written notice of termination to such Authenticating Agent and to the Company. Upon resignation, termination or cessation of eligibility of any Authenticating Agent, the Trustee may appoint an eligible successor Authenticating Agent acceptable to the Company. Any successor Authenticating Agent, upon acceptance of its appointment hereunder, shall become vested with all the rights, powers and duties of its predecessor hereunder as if originally named as an Authenticating Agent pursuant hereto.

Any corporation into which an Authenticating Agent may be merged or converted or with which it may be consolidated, or any corporation resulting from any merger, conversion or consolidation to which such Authenticating Agent shall be a party, or any corporation succeeding to the corporate agency or corporate trust business of an Authenticating Agent, shall continue to be an Authenticating Agent, provided that such corporation shall be otherwise eligible under this Section, without the execution or filing of any paper or any further act on the part of the Trustee or the Authenticating Agent.

**Section 2.10 Global Form of Bonds**

The Company shall issue the Bonds in global form. The Company may issue a Bond only to a Depositary. A Depositary may transfer a Bond only to its nominee or to a successor Depositary appointed by the Issuer. A Bond shall represent the amount of the securities specified therein. A Bond may have variations that the Depositary requires or that the Company considers appropriate for such a security.

Prior to due presentment of the Bond(s) for registration of transfer, the Company, the Trustee and any agent of the Company or the Trustee may treat the person in whose name such Bond(s) is registered as the owner of such Bonds for the purpose of receiving payment of principal of and interest on such Bond(s) and for all other purposes whatsoever, whether or not such Bond(s) be overdue, and neither the Company, the Trustee nor any agent of the Company or the Trustee shall be affected by notice to the contrary.

Beneficial owners of a global Bond shall not be entitled to have certificates registered in their names, will not receive or be entitled to receive physical delivery of certificates in definitive form and will not be considered holders of such global Bond. Beneficial owners of part or all of a global Bond are subject to the rules of the Depositary as in effect from time to time. The Company, the Trustee and any agent of the Company or Trustee shall not be responsible for any acts or omissions of a Depositary, for any Depositary records of beneficial ownership interests or for any transactions between the Depositary and beneficial owners. All notices and communications to be given to the Bondholders and all payments to be made to Bondholders under the Bonds shall be given or made only to or upon the order of the Bondholders (which shall be the Depositary or its nominee in the case of a global Bond). The rights of beneficial owners in any global Bond shall be exercised only through the Depositary subject to the customary procedures of the Depositary. The Trustee and the Company may rely and shall be fully protected in relying upon information furnished by the Depositary with respect to the beneficial owners in any global Bond.

**ARTICLE III**

**REDEMPTION OF SECURITIES**

**Section 3.01 Redemption**

The Bonds may be redeemed, in whole or from time to time in part, subject to the conditions set forth in this Article III and in the applicable Bond. If the Company elects to redeem Bonds pursuant to this Article III, it shall notify the Trustee in writing of the redemption date, the redemption price and the principal amount of Bonds to be redeemed. The Company shall give notice of redemption to the Trustee and any Paying Agent not less than thirty (30) days before the redemption date, together with such documentation and records as necessary to reflect the Company's selection of Bonds for redemption.

**Section 3.02 Notice of Redemption.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) In case the Company shall desire to exercise any right to redeem all or, as the case may be, a portion of the Bonds in accordance with any right reserved so to do, the Company shall, or shall cause the Paying Agent to, give notice of such redemption to holders of the Bonds to be redeemed by mailing, first class postage prepaid, a notice of such redemption not less than fifteen (15) days and not more than sixty (60) days before the date fixed for redemption to such holders at their last addresses as they shall appear upon the Bond Register unless a shorter period is specified in the Bonds to be redeemed. Any notice that is mailed in the manner herein provided shall be conclusively presumed to have been duly given, whether or not the registered holder receives the notice. In any case, failure duly to give such notice to the holder of any Bond designated for redemption in whole or in part, or any defect in the notice, shall not affect the validity of the proceedings for the redemption of any other Bonds. In the case of any redemption of Bonds prior to the expiration of any restriction on such redemption provided in the terms of such Bonds or elsewhere in this Indenture, the Company shall furnish the Trustee with a Sole Member's Certificate evidencing compliance with any such restriction. Each such notice of redemption shall specify the date fixed for redemption and the redemption price at which Bonds are to be redeemed, and shall state that payment of the redemption price of such Bonds to be redeemed will be made at the office or agency of the Company in the City of Conshohocken, Pennsylvania, or the office or the Paying Agent such other location designated by the Company, upon presentation and surrender of such Bonds, that interest accrued to the date fixed for redemption will be paid as specified in said notice, that from and after said date interest will cease to accrue, and the CUSIP number of the Bonds, if any, and state that no representation is made as to the correctness or accuracy of the CUSIP number, if any, listed in the notice or printed on the Bonds. If less than all the Bonds are to be redeemed, the notice to the holders of Bonds to be redeemed in whole or in part shall specify the particular Bonds to be so redeemed. In case any Bond is to be redeemed in part only, the notice that relates to such Bond shall state the portion of the principal amount thereof to be redeemed, and shall state that on and after the redemption date, upon surrender of such Bond to the Paying Agent, a new Bond or Bonds in principal amount equal to the unredeemed portion thereof will be issued.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If less than all of any class or series of the Bonds are to be redeemed, the Company shall give the Trustee and Paying Agent at least thirty (30) days' notice (unless a shorter period is satisfactory to the Trustee) in advance of the date fixed for redemption as to the aggregate principal amount of Bonds to be redeemed, and the Company's selection of the specific Bonds to be redeemed in accordance with the terms of the applicable Bond form. The Company may, if and whenever it shall so elect, by delivery of instructions signed by the Company, instruct the Trustee or any Paying Agent to call all or any part of the Bonds for redemption and to give notice of redemption in the manner set forth in this Section, such notice to be in the name of the Company or its own name as the Trustee or such Paying Agent as it may deem advisable; provided nothing herein shall obligated the Trustee to provide notices of redemption to holders of Bonds for which it is not also the Paying Agent and Registrar. In any case in which notice of redemption is to be given by the Trustee or any such Paying Agent, the Company shall deliver or cause to be delivered to, or permit to remain with, the Trustee or such Paying Agent, as the case may be, such Bond Register, transfer books or other records, or suitable copies or extracts therefrom, sufficient to enable the Trustee or such Paying Agent to give any notice by mail that may be required under the provisions of this Section.

**Section 3.03 Payment Upon Redemption**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If the giving of notice of redemption shall have been completed as above provided, the Bonds or portions of Bonds to be redeemed specified in such notice shall become due and payable on the date and at the place stated in such notice at the applicable redemption price, together with interest accrued to the date fixed for redemption and interest on such Bonds or portions of Bonds shall cease to accrue on and after the date fixed for redemption, unless the Company shall default in the payment of such redemption price and accrued interest with respect to any such Bond or portion thereof. On presentation and surrender of such Bonds on or after the date fixed for redemption at the place of payment specified in the notice, said Bonds shall be paid and redeemed at the applicable redemption price, together with interest accrued thereon to the date fixed for redemption (but if the date fixed for redemption is an Interest Payment Date, the interest installment payable on such date shall be payable to the registered holder at the close of business on the applicable record date pursuant to Section 2.02).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Upon presentation of any Bond that is to be redeemed in part only, the Company shall execute and the Trustee shall authenticate and the office or agency where the Bond is presented shall deliver to the holder thereof, at the expense of the Company, a new Bond of authorized denominations in principal amount equal to the unredeemed portion of the Bond so presented.

**ARTICLE IV**

**COVENANTS**

**Section 4.01 Payment of Principal, Premium and Interest.**

Subject to any right of the Company to extend a Bond's Maturity Date as set forth in the form of the applicable Bond, the Company will duly and punctually pay or cause to be paid the principal of (and premium, if any) and interest, on the Bonds at the time and place and in the manner provided herein and established in the form of the Bonds with respect to such Bonds.

**Section 4.02 Maintenance of Office or Agency.**

So long as the Bonds remain Outstanding, the Company agrees to maintain an office or agency in the City of Conshohocken, Pennsylvania, or such other location designated by the Company, and at such other location or locations as may be designated as provided in this Section 4.02, where (i) Bonds may be presented for payment, (ii) Bonds may be presented as herein above authorized for registration of transfer and exchange, and (iii) notices and demands to or upon the Company in respect of the Bonds and this Indenture may be given or served, such designation to continue with respect to such office or agency until the Company shall, by written notice signed by its Sole Member and delivered to the Trustee, designate some other office or agency in the City of Conshohocken, Pennsylvania for such purposes or any of them. If at any time the Company shall fail to maintain any such required office or agency or shall fail to furnish the Trustee with the address thereof, such presentations of the Bonds may be made or served at the Corporate Trust Office of the Trustee, and the Company hereby appoints the Trustee as its agent to receive all such presentations.

The Company may also from time to time designate one or more other offices or agencies where the Bonds may be presented or surrendered for any or all such purposes and may from time to time rescind such designations; *provided, however*, that no such designation or rescission shall in any manner relieve the Company of its obligation to maintain an office or agency in the City of Conshohocken, Pennsylvania, or such other location designated by the Company for such purposes. The Company will give prompt written notice to the Trustee of any such designation or rescission and of any change in the location of any such other office or agency. The Bond Registrar, is designated the office where (i) Bonds may be presented for payment and (ii) Bonds may be presented as herein above authorized for registration of transfer and exchange,

**Section 4.03 Paying Agents.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Company hereby appoints UMB Bank as paying agent for the Bonds held in global form by DTC, and Vistra USA, LLC as paying agent for Bonds held in any other name (each individually a "Paying Agent" and together the "Paying Agents"). If the Company shall appoint one or more paying agents for the Bonds, other than the Trustee, the Company will cause each such paying agent to execute and deliver to the Trustee an instrument in which such agent shall agree with the Trustee, subject to the provisions of this Section:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) that it will hold all sums held by it as such agent for the payment of the principal of (and premium, if any) or interest on the Bonds (whether such sums have been paid to it by the Company or by any other obligor of such Bonds) in trust for the benefit of the Persons entitled thereto;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) that it will give the Trustee notice of any failure by the Company (or by any other obligor of such Bonds) to make any payment of the principal of (and premium, if any) or interest on the Bonds when the same shall be due and payable;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) that it will, at any time during the continuance of any failure referred to in the preceding paragraph (a)(2) above, upon the written request of the Trustee, forthwith pay to the Trustee all sums so held in trust by such paying agent; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) that it will perform all other duties of paying agent as set forth in this Indenture.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If the Company shall act as its own paying agent with respect to the Bonds, it will on or before each due date of the principal of (and premium, if any) or interest on Bonds, set aside, segregate and hold in trust for the benefit of the Persons entitled thereto a sum sufficient to pay such principal (and premium, if any) or interest so becoming due until such sums shall be paid to such Persons or otherwise disposed of as herein provided and will promptly notify the Trustee of such action, or any failure (by it or any other obligor on such Bonds) to take such action. Whenever the Company shall have one or more paying agents, it will, prior to each due date of the principal of (and premium, if any) or interest deposit with the paying agent a sum sufficient to pay the principal (and premium, if any) or interest, so becoming due, such sum to be held in trust for the benefit of the Persons entitled to such principal, premium or interest, and (unless such paying agent is the Trustee) the Company will promptly notify the Trustee of this action or failure so to act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Notwithstanding anything in this Section to the contrary,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) the agreement to hold sums in trust as provided in this Section is subject to the provisions of Section 11.05, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) the Company may at any time, for the purpose of obtaining the satisfaction and discharge of this Indenture or for any other purpose, pay, or direct any paying agent to pay, to the Trustee all sums held in trust by the Company or such paying agent, such sums to be held by the Trustee upon the same terms and conditions as those upon which such sums were held by the Company or such paying agent; and, upon such payment by any paying agent to the Trustee, such paying agent shall be released from all further liability with respect to such money.

**Section 4.04 Appointment to Fill Vacancy in Office of Trustee.**

The Company, whenever necessary to avoid or fill a vacancy in the office of Trustee, will appoint, in the manner provided in Section 7.11, a Trustee, so that there shall at all times be a Trustee hereunder.

**Section 4.05 Compliance with Consolidation Provisions.**

The Company will not, while any of the Bonds remain Outstanding, consolidate with or merge into any other Person, or sell, convey, transfer or otherwise dispose of its property as an entirety or substantially as an entirety to any other Person unless the provisions of Article X hereof are complied with.

**Section 4.06 Statement by Officers as to Default.**

The Company will deliver to the Trustee, within 120 days after the end of each fiscal year of the Company, a Certificate, stating whether or not to the best knowledge of the signer thereof the Company is in default in the performance and observance of any of the terms, provisions and conditions of this Indenture (without regard to any period of grace or requirement of notice provided hereunder) and, if the Company shall be in default, specifying all such defaults and the nature and status thereof of which such signer may have knowledge.

**Section 4.07 Additional Indebtedness.**

The Company will not directly or indirectly through Subsidiaries, incur any indebtedness, secured or unsecured, that would be senior to the Bonds, unless all of the proceeds of such indebtedness, less any costs of issuance or sale of such indebtedness, are used for the repayment of the Bonds.

**Section 4.08 Liens.**

The Company will not allow or permit a Lien on any Company Assets, senior to that of the Bonds, without the approval or permission of the holders of at least a majority in principal amount of the Bonds at the time Outstanding.

**ARTICLE V**

**BONDHOLDERS' LISTS AND REPORTS BY THE COMPANY AND** 

**THE TRUSTEE**

**Section 5.01 Company to Furnish Trustee Names and Addresses of Bondholders.**

The Company will furnish or cause to be furnished to the Trustee

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) not more than 15 days after each Record Date or Maturity Record Date a list, in such form as the Trustee may reasonably require, of the names and addresses of the holders of the Bonds as of such Record Date, provided that the Company shall not be obligated to furnish or cause to furnish such list at any time that the list shall not differ in any respect from the most recent list furnished to the Trustee by the Company and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) at such other times as the Trustee may request in writing within 30 days after the receipt by the Company of any such request, a list of similar form and content as of a date not more than 15 days prior to the time such list is furnished;

*provided, however*, that, in either case, no such list need be furnished for any Bonds for which the Trustee shall be the Bond Registrar.

**Section 5.02 Preservation of Information; Communications With Bondholders.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Trustee shall preserve, in as current a form as is reasonably practicable, all information as to the names and addresses of the holders of Bonds contained in the most recent list furnished to it as provided in Section 5.01 and as to the names and addresses of holders of Bonds received by the Trustee in its capacity as a Bond Registrar (if acting in such capacity).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Trustee may destroy any list furnished to it as provided in Section 5.01 upon receipt of a new list so furnished.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Bondholders may communicate as provided in Section 312(b) of the Trust Indenture Act with other Bondholders with respect to their rights under this Indenture or under the Bonds.

**Section 5.03 Reports by the Company.**

The Company covenants and agrees to provide (which delivery may be via electronic mail) to the Trustee, (i) annually, within one hundred twenty (120) days following December 31st, a written statement certifying that to the knowledge of the Company's officers the Company is in compliance with this Indenture, or specifying any Event of Default hereunder; and (ii) within 15 days after the Company files the same with the SEC, copies of the annual reports and of the information, documents and other reports (or copies of such portions of any of the foregoing as the SEC may from time to time by rules and regulations prescribe) that the Company files with the SEC pursuant to Section 13 or Section 15(d) of the Exchange Act or Rule 257 of Regulation A; *provided, however*, the Company shall not be required to deliver to the Trustee any materials for which the Company has sought and received confidential treatment by the SEC; and *provided further*, so long as such filings by the Company are available on the SEC's Electronic Data Gathering, Analysis and Retrieval System (EDGAR), such filings shall be deemed to have been filed with the Trustee for purposes of this Section 5.03 without any further action required by the Company, *provided, however*, that the Trustee shall have no obligation whatsoever to determine if such filing has been so made and shall have no obligation to review any of the reports or other documentation delivered to it under this Section 5.03.

Delivery of such reports, information and documents to the Trustee is for informational purposes only, and the Trustee's receipt of such shall not constitute constructive notice of any information contained therein or determinable from information contained therein, including the Company's compliance with any of its covenants hereunder.

**ARTICLE VI**

**REMEDIES OF THE TRUSTEE AND BONDHOLDERS ON EVENT OF DEFAULT**

**Section 6.01 Events of Default.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Whenever used herein, "Event of Default" means any one or more of the following events that has occurred and is continuing (whatever the reason for such Event of Default and whether it shall be voluntary or involuntary or be effected by operation of law or pursuant to any judgment, decree or order of any court or any order, rule or regulation of any administrative or governmental body):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) the Company defaults in the payment of any installment of interest, upon any of the Bonds as and when the same shall become due and payable, and continuance of such default for a period of 60 days; provided, however, that a valid extension of an interest payment period by the Trustee (at the direction of holders of the Bonds at the time Outstanding) or in accordance with the terms of any indenture supplemental hereto shall not constitute a default in the payment of interest for this purpose;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) the Company defaults in the payment of the principal of (or premium, if any, on) any of the Bonds as and when the same shall become due and payable, and continuance of such default for a period of 60 days, whether at maturity, upon redemption, by declaration or otherwise; provided, however, that a valid extension of the maturity of such Bonds by the Trustee (at the direction of holders of the Bonds at the time Outstanding) or in accordance with the terms of any indenture supplemental hereto shall not constitute a default in the payment of principal or premium, if any;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) the Company fails to observe or perform any other of its covenants or agreements contained in this Indenture for a period of 120 days after the date on which written notice of such failure, requiring the same to be remedied and stating that such notice is a "Notice of Default" hereunder, shall have been given to the Company by the Trustee, by registered or certified mail, or to the Company and the Trustee by the holders of at least a majority in principal amount of the Bonds at the time Outstanding;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) the Company pursuant to or within the meaning of any Bankruptcy Law

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) commences a voluntary case,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) consents to the entry of an order for relief against it in an involuntary case,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) consents to the appointment of a Custodian of it or for all or substantially all of its property, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) makes a general assignment for the benefit of its creditors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) a court of competent jurisdiction enters an order under any Bankruptcy Law that

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) is for relief against the Company in an involuntary case,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) appoints a Custodian of the Company or for all or substantially all of its property, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) orders the liquidation of the Company, and the orders remain unstayed and in effect for 90 days; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6) entry by any court having jurisdiction over the Company of a final and non-appealable judgment or order for the payment of money in excess of $25,000,000.00 (before the application of any pre-judgment interest), singly or in the aggregate for all such final judgments or orders against any Significant Subsidiary; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7) the Company defaults in the payment of any installment of interest, upon the Class A Bonds or the Class B Bonds as and when the same shall become due and payable, or payment of principal of (or premium, if any, on) any of the Class A Bonds or the Class B Bonds, as and when the same shall become due and payable, beyond any applicable cure period set forth in the 2020 Indenture or the applicable form of Class A or Class B Bond.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In each and every such case, unless the principal of all the Bonds shall have already become due and payable, either the Trustee, with the approval of the holders of a majority in aggregate principal amount of the Bonds then Outstanding hereunder, or the holders of a majority in aggregate principal amount of the Bonds then Outstanding hereunder, by notice in writing to the Company (and to the Trustee if given by such Bondholders), may declare the principal of (and premium, if any, on) and accrued and unpaid interest, on all the Bonds to be due and payable immediately, and upon any such declaration the same shall become and shall be immediately due and payable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) At any time after the principal of the Bonds shall have been so declared due and payable, and before any judgment or decree for the payment of the moneys due shall have been obtained or entered as hereinafter provided, the, either the Trustee, with the approval of the holders of a majority in aggregate principal amount of the Bonds then Outstanding hereunder, or the holders of a majority in aggregate principal amount of the Bonds then Outstanding hereunder by written notice to the Company and the Trustee (if given by such Bondholders), may rescind and annul such declaration and its consequences if:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) the Company has paid or deposited with the Trustee a sum sufficient to pay all matured installments of interest upon all the Bonds and the principal of (and premium, if any, on) any and all Bonds that shall have become due otherwise than by acceleration (with interest upon such principal and premium, if any, and, to the extent that such payment is enforceable under applicable law, upon overdue installments of interest, at the rate per annum expressed in the Bonds to the date of such payment or deposit) and the amount payable to the Trustee under Section 7.07, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) any and all Events of Default under the Indenture, other than the nonpayment of principal on Bonds that shall not have become due by their terms, shall have been remedied or waived as provided in Section 6.06. No such rescission and annulment shall extend to or shall affect any subsequent default or impair any right consequent thereon.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) In case the Trustee shall have proceeded to enforce any right with respect to Bonds under this Indenture and such proceedings shall have been discontinued or abandoned because of such rescission or annulment or for any other reason or shall have been determined adversely to the Trustee, then and in every such case, subject to any determination in such proceedings, the Company, and the Trustee shall be restored respectively to their former positions and rights hereunder, and all rights, remedies and powers of the Company and the Trustee shall continue as though no such proceedings had been taken.

**Section 6.02 Collection of Indebtedness and Suits for Enforcement by Trustee**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Company covenants that

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) in case it shall default in the payment of any installment of interest on any of the Bonds, as and when the same shall have become due and payable, and such default shall have continued for a period of 60 days, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) in case it shall default in the payment of the principal of (or premium, if any, on) any of the Bonds when the same shall have become due and payable, whether upon maturity or upon redemption, and such default shall have continued for a period of 60 days,

then, upon demand of the Trustee or the Bondholders of a majority in aggregate principal amount of the Bonds, the Company will pay to the Trustee, for the benefit of the holders of the Bonds, the whole amount that then shall have been become due and payable on all such Bonds for principal (and premium, if any) or interest, or both, as the case may be, with interest upon the overdue principal (and premium, if any) and (to the extent that payment of such interest is enforceable under applicable law) upon overdue installments of interest at the rate per annum expressed in the Bonds; and, in addition thereto, such further amount as shall be sufficient to cover the costs and expenses of collection, and the amount payable to the Trustee under Section 7.07.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If the Company shall fail to pay such amounts forthwith upon such demand, the Trustee, in its own name and as trustee of an express trust, shall be entitled and empowered to institute any action or proceedings at law or in equity for the collection of the sums so due and unpaid, and may prosecute any such action or proceeding to judgment or final decree, and may enforce any such judgment or final decree against the Company or other obligor upon the Bonds and collect the moneys adjudged or decreed to be payable in the manner provided by law out of the property of the Company or other obligor upon the Bonds, wherever situated. In addition to any action or proceeding at law or in equity, the Trustee shall have the right to cause the Company to cause the sale of all Properties then held by the Company or its Subsidiaries and may collect the moneys received from such sales, following the payment of any fees, costs or expenses of such sales.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) In case of any receivership, insolvency, liquidation, bankruptcy, reorganization, readjustment, arrangement, composition or judicial proceedings affecting the Company, or its creditors or property, the Trustee shall have power to intervene in such proceedings and take any action therein that may be permitted by the court and shall (except as may be otherwise provided by law) be entitled to file such proofs of claim and other papers and documents as may be necessary or advisable in order to have the claims of the Trustee and of the holders of Bonds allowed for the entire amount due and payable by the Company under the Indenture at the date of institution of such proceedings and for any additional amount that may become due and payable by the Company after such date, and to collect and receive any moneys or other property payable or deliverable on any such claim, and to distribute the same after the deduction of the amount payable to the Trustee under Section 7.07; and any receiver, assignee or trustee in bankruptcy or reorganization is hereby authorized by each of the holders of Bonds to make such payments to the Trustee, and, in the event that the Trustee shall consent to the making of such payments directly to such Bondholders, to pay to the Trustee any amount due it under Section 7.07.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (d) All rights of action and of asserting claims under this Indenture, or under any of the terms established with respect to the Bonds, may be enforced by the Trustee without the possession of any of such Bonds, or the production thereof at any trial or other proceeding relative thereto, and any such suit or proceeding instituted by the Trustee shall be brought in its own name as trustee of an express trust, and any recovery of judgment shall, after provision for payment to the Trustee of any amounts due under Section 7.07, be for the ratable benefit of the holders of the Bonds. In case of an Event of Default hereunder, the Trustee may in its discretion proceed to protect and enforce the rights vested in it by this Indenture by such appropriate judicial proceedings as the Trustee shall deem most effectual to protect and enforce any of such rights, either at law or in equity or in bankruptcy or otherwise, whether for the specific enforcement of any covenant or agreement contained in the Indenture or in aid of the exercise of any power granted in this Indenture, or to enforce any other legal or equitable right vested in the Trustee by this Indenture or by law. Nothing contained herein shall be deemed to authorize the Trustee to authorize or consent to or accept or adopt on behalf of any Bondholder any plan of reorganization, arrangement, adjustment or composition affecting the Bonds or the rights of any holder thereof or to authorize the Trustee to vote in respect of the claim of any Bondholder in any such proceeding.

**Section 6.03 Application of Moneys Collected.**

Any moneys collected by the Trustee pursuant to this Article together with any funds held by the Trustee shall be applied in the following order, at the date or dates fixed by the Trustee:

FIRST: To the payment of costs and expenses of collection and of all amounts payable to the Trustee under Section 7.07, including in its capacity as a Paying Agent and Bond Registrar;

SECOND: To the payment of the amounts then due and unpaid upon Bonds of for principal (and premium, if any) and interest, in respect of which or for the benefit of which such money has been collected, ratably, without preference or priority of any kind, according to the amounts due and payable on such Bonds for principal (and premium, if any) and interest, respectively;

THIRD: Upon written direction of the Company, to the payment of the remainder, if any, to the Company or any other Person lawfully entitled thereto as directed by the Company.

**Section 6.04 Limitation on Suits.**

No holder of any Bond shall have any right by virtue or by availing of any provision of this Indenture to institute any suit, action or proceeding in equity or at law upon or under or with respect to this Indenture or for the appointment of a receiver or trustee, or for any other remedy hereunder, unless

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) such holder previously shall have given to the Trustee written notice of an Event of Default and of the continuance thereof specifying such Event of Default, as hereinbefore provided;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) the holders of not less than a majority in aggregate principal amount of the Bonds then Outstanding shall have made written request upon the Trustee to institute such action, suit or proceeding in its own name as trustee hereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) such holder or holders shall have offered to the Trustee such reasonable indemnity as it may require against the costs, expenses and liabilities to be incurred therein or thereby;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) the Trustee for 60 days after its receipt of such notice, request and offer of indemnity, shall have failed to institute any such action, suit or proceeding; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) notwithstanding anything contained herein to the contrary, the right of any holder of any Bond to receive payment of the principal of (and premium, if any) and interest, on such Bond, as therein provided, on the respective due dates expressed in such Bond (or in the case of redemption, on the redemption date), or to institute suit for the enforcement of any such payment on or after such respective dates or redemption date, shall not be impaired or affected without the consent of such holder and by accepting a Bond hereunder it is expressly understood, intended and covenanted by the taker and holder of every Bond with every other such taker and holder and the Trustee, that no one or more holders shall have any right in any manner whatsoever by virtue or by availing of any provision of this Indenture to affect, disturb or prejudice the rights of the holders of any other of such Bonds, or to obtain or seek to obtain priority over or preference to any other such holder, or to enforce any right under this Indenture, except in the manner herein provided and for the equal, ratable and common benefit of all holders of Bonds. For the protection and enforcement of the provisions of this Section, each and every Bondholder and the Trustee shall be entitled to such relief as can be given either at law or in equity.

**Section 6.05 Rights and Remedies Cumulative; Delay or Omission Not Waiver.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Except as otherwise provided in Section 2.06, all powers and remedies given by this Article to the Trustee or to the Bondholders shall, to the extent permitted by law, be deemed cumulative and not exclusive of any other powers and remedies available to the Trustee or the holders of the Bonds, by judicial proceedings, or otherwise, to enforce the performance or observance of the covenants and agreements contained in this Indenture or otherwise established with respect to such Bonds.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) No delay or omission of the Trustee or of any holder of any of the Bonds to exercise any right or power accruing upon any Event of Default occurring and continuing as aforesaid shall impair any such right or power, or shall be construed to be a waiver of any such default or on acquiescence therein; and, subject to the provisions of Section 6.04, every power and remedy given by this Article or by law to the Trustee or the Bondholders may be exercised from time to time, and as often as shall be deemed expedient, by the Trustee or by the Bondholders.

**Section 6.06 Control by Bondholders.**

The holders of a majority in aggregate principal amount of the Bonds at the time Outstanding, determined in accordance with Section 8.01, shall have the right to direct the time, method and place of conducting any proceeding for any remedy available to the Trustee, or exercising any trust or power conferred on the Trustee; provided, however, that such direction shall not be in conflict with any rule of law or with this Indenture. Subject to the provisions of Section 7.01, the Trustee shall have the right to decline to follow any such direction if the Trustee in good faith shall, by a Responsible Officer or Officers of the Trustee or its counsel, determine that the proceeding so directed would involve the Trustee in personal liability. The holders of a majority in aggregate principal amount of the Bonds at the time Outstanding affected thereby, determined in accordance with Section 8.01, may on behalf of the holders of all of the Bonds waive any past default in the performance of any of the covenants contained herein and its consequences, except a default in the payment of the principal of (or premium, if any) or interest on any of the Bonds as and when the same shall become due by the terms of such Bonds otherwise than by acceleration (unless such default has been cured and a sum sufficient to pay all matured installments of interest and principal and any premium has been deposited with the Trustee (in accordance with Section 6.01(c)) or in respect of a covenant or provision hereof which under Article IX cannot be modified or amended without the consent of the holder of each Outstanding Bond affected. Upon any such waiver, the default covered thereby shall be deemed to be cured for all purposes of this Indenture and the Company, the Trustee and the holders of the Bonds shall be restored to their former positions and rights hereunder, respectively; but no such waiver shall extend to any subsequent or other default or impair any right consequent thereon.

**Section 6.07 Undertaking to Pay Costs.**

All parties to this Indenture agree, and each holder of any Bonds by such holder's acceptance thereof shall be deemed to have agreed, that any court may in its discretion require, in any suit for the enforcement of any right or remedy under this Indenture, or in any suit against the Trustee for any action taken or omitted by it as Trustee, the filing by any party litigant in such suit of an undertaking to pay the costs of such suit, and that such court may in its discretion assess reasonable costs, including reasonable attorneys' fees, against any party litigant in such suit, having due regard to the merits and good faith of the claims or defenses made by such party litigant; but the provisions of this Section shall not apply to any suit instituted by the Trustee, to any suit instituted by any Bondholder, or group of Bondholders, holding more than 10% in aggregate principal amount of the Outstanding Bonds, or to any suit instituted by any Bondholder for the enforcement of the payment of the principal of (or premium, if any) or interest on any Bond, on or after the respective due dates expressed in such Bond or established pursuant to this Indenture.

**ARTICLE VII**

**CONCERNING THE TRUSTEE**

**Section 7.01 Certain Duties and Responsibilities of Trustee.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Trustee, prior to the occurrence of an Event of Default and after the curing of all Events of Default that may have occurred, shall undertake to perform such duties and only such duties as are specifically set forth in this Indenture, and no implied covenants shall be read into this Indenture against the Trustee. In case an Event of Default has occurred (that has not been cured or waived), the Trustee shall exercise such of the rights and powers vested in it by this Indenture, and use the same degree of care and skill in their exercise, as a prudent man would exercise or use under the circumstances in the conduct of his own affairs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) No provision of this Indenture shall be construed to relieve the Trustee from liability for its own grossly negligent action, its own grossly negligent failure to act, or its own willful misconduct, except that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) prior to the occurrence of an Event of Default and after the curing or waiving of all such Events of Default that may have occurred: the duties and obligations of the Trustee shall be determined solely by the express provisions of this Indenture, and the Trustee shall be responsible only for the performance of such duties and obligations as are specifically set forth in this Indenture, and no implied covenants or obligations shall be read into this Indenture against the Trustee; and in the absence of bad faith on the part of the Trustee, the Trustee may conclusively rely, as to the truth of the statements and the correctness of the opinions expressed therein, upon any certificates or opinions furnished to the Trustee and conforming to the requirements of this Indenture;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) the Trustee shall not be liable for any error of judgment made in good faith by a Responsible Officer or Responsible Officers of the Trustee, unless it shall be proved that the Trustee was grossly negligent in ascertaining the pertinent facts;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) the Trustee shall not be liable with respect to any action taken or omitted to be taken by it in good faith in accordance with the direction of the holders of not less than a majority in principal amount of the Bonds at the time Outstanding relating to the time, method and place of conducting any proceeding for any remedy available to the Trustee, or exercising any trust or power conferred upon the Trustee under this Indenture with respect to the Bonds; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) None of the provisions contained in this Indenture shall require the Trustee to expend or risk its own funds or otherwise incur personal financial liability in the performance of any of its duties or in the exercise of any of its rights or powers, if there is reasonable ground for believing that the repayment of such funds or liability is not reasonably assured to it under the terms of this Indenture or adequate indemnity against such risk is not reasonably assured to it.

**Section 7.02 Notice of Defaults.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Trustee shall not be required to take notice or be deemed to have notice of any Default or Event of Default hereunder, unless a Responsible Officer of the Trustee shall be specifically notified in writing of such default by the Company, or the Owners of at least 25% in principal amount of all Outstanding Bonds, and in the absence of such notice so delivered, the Bond Trustee may conclusively assume there is no default except as aforesaid.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If an Event of Default occurs hereunder of which the Trustee has notice or is deemed to have notice in accordance with Section 7.02(a), the Trustee shall promptly give the holders notice of such Event of Default; provided, however, that in the case of any Event of Default of the character specified in clause (3) of Section 6.01(a), no such notice to holders shall be given until at least 30 days after the occurrence thereof.

**Section 7.03 Certain Rights of Trustee.**

Except as otherwise provided in Section 7.01:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Trustee may rely and shall be protected in acting or refraining from acting upon any resolution, certificate, statement, instrument, opinion, report, notice, request, consent, order, approval, bond, security or other paper or document believed by it to be genuine and to have been signed or presented by the proper party or parties;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Any request, direction, order or demand of the Company mentioned herein shall be sufficiently evidenced by an instrument signed in the name of the Company, by the Sole Member thereof (unless other evidence in respect thereof is specifically prescribed herein);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Trustee may consult with counsel and the written advice of such counsel or any Opinion of Counsel shall be full and complete authorization and protection in respect of any action taken or suffered or omitted hereunder in good faith and in reliance thereon;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Trustee shall be under no obligation to exercise any of the rights or powers vested in it by this Indenture at the request, order or direction of any of the Bondholders, pursuant to the provisions of this Indenture, unless such Bondholders shall have offered to the Trustee security or indemnity reasonably satisfactory to it against the costs, expenses and liabilities that may be incurred therein or thereby;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The Trustee shall not be liable for any action taken or omitted to be taken by it in good faith and believed by it to be authorized or within the discretion or rights or powers conferred upon it by this Indenture;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) The Trustee shall not be bound to make any investigation into the facts or matters stated in any resolution, certificate, statement, instrument, opinion, report, notice, request, consent, order, approval, bond, security, or other papers or documents, unless requested in writing so to do by the holders of not less than a majority in principal amount of the Outstanding Bonds (determined as provided in Section 8.04); provided, however, that if the payment within a reasonable time to the Trustee of the costs, expenses or liabilities likely to be incurred by it in the making of such investigation is, in the opinion of the Trustee, not reasonably assured to the Trustee by the security afforded to it by the terms of this Indenture, the Trustee may require indemnity reasonably satisfactory to it against such costs, expenses or liabilities as a condition to so proceeding. The reasonable expense of every such examination shall be paid by the Company or, if paid by the Trustee, shall be repaid by the Company upon demand; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) The Trustee may execute any of the trusts or powers hereunder or perform any duties hereunder either directly or by or through agents or attorneys and the Trustee shall not be responsible for any misconduct or negligence on the part of any agent or attorney appointed with due care by it hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) None of the provisions of this Indenture shall require the Trustee to expend or risk its own funds or otherwise to incur any liability, financial or otherwise, in the performance of any of its duties hereunder, or in the exercise of any of its rights or powers if it shall have reasonable grounds for believing that repayment of such funds or indemnity satisfactory to it against such risk or liability is not assured to it;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) In no event shall the Trustee, including its Responsible Officers, be responsible or liable for special, indirect, or consequential loss or damage of any kind whatsoever (including, but not limited to, loss of profit) irrespective of whether the Trustee has been advised of the likelihood of such loss or damage and regardless of the form of action;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) The rights, privileges, protections, immunities and benefits given to the Trustee, including, without limitation, its right to be indemnified, are extended to, and shall be enforceable by, the Trustee in each of its capacities hereunder should it act as Paying Agent or Bond Registrar at any time and each agent, custodian and other person employed by the Trustee to act hereunder

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) The Trustee shall not be responsible for any recital herein or in the Bonds (except with respect to the Certificate of Authentication of the Trustee endorsed on the Bonds), or for the recording or rerecording, filing or refiling of this Indenture or any financing statement or security agreement in connection therewith or for the validity of the execution by the Company of this Indenture or of any supplemental indentures or instruments of further assurance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) In no event shall the Trustee be responsible or liable for any failure or delay in the performance of its obligations hereunder arising out of or caused by, directly or indirectly, forces beyond its control, including, without limitation, strikes, work stoppages, accidents, acts of war or terrorism, civil or military disturbances, nuclear or natural catastrophes or acts of God, and interruptions, pandemics, epidemics, recognized public emergencies, quarantine restrictions, hacking or cyber-attacks, or other use or infiltration of the Trustee's technological infrastructure exceeding authorized access, loss or malfunctions of utilities, communications or computer (software and hardware) services; it being understood that the Trustee shall use reasonable efforts which are consistent with accepted practices in the banking industry to resume performance as soon as practicable under the circumstances.

**Section 7.04 Trustee Not Responsible for Recitals or Issuance or Bonds.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The recitals contained herein and in the Bonds shall be taken as the statements of the Company, and the Trustee assumes no responsibility for the correctness of the same.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Trustee makes no representations as to the validity or sufficiency of this Indenture or of the Bonds.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Trustee shall not be accountable for the use or application by the Company of any of the Bonds or of the proceeds of such Bonds, or for the use or application of any moneys paid over by the Trustee in accordance with any provision of this Indenture, or for the use or application of any moneys received by any paying agent other than the Trustee.

**Section 7.05 May Hold Bonds.**

The Trustee or any paying agent or Bond Registrar, in its individual or any other capacity, may become the owner or pledgee of Bonds with the same rights it would have if it were not Trustee, paying agent or Bond Registrar.

**Section 7.06 Moneys Held in Trust.**

Subject to the provisions of Section 11.05 and Section 4.08, all moneys received by the Trustee shall, until used or applied as herein provided, be held un-invested in trust for the purposes for which they were received, but need not be segregated from other funds except to the extent required by law. The Trustee shall be under no liability for interest on any moneys received by it hereunder except such as it may agree with the Company to pay thereon.

**Section 7.07 Compensation and Reimbursement.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Company covenants and agrees to pay to the Trustee, and the Trustee shall be entitled to, such reasonable compensation (which shall not be limited by any provision of law in regard to the compensation of a trustee of an express trust), as the Company, and the Trustee may from time to time agree in writing, for all services rendered by it in the execution of the trusts hereby created and in the exercise and performance of any of the powers and duties hereunder of the Trustee (including, without limitation, fees for extraordinary services rendered), and, except as otherwise expressly provided herein, the Company will pay or reimburse the Trustee upon its request for all reasonable expenses, disbursements and advances incurred or made by the Trustee in accordance with any of the provisions of this Indenture (including the reasonable compensation and the expenses and disbursements of its counsel and of all Persons not regularly in its employ and the reimbursement of all extraordinary expenses incurred) except any such expense, disbursement or advance as may arise from its gross negligence or bad faith. The fees, charges and expenses specified herein are for the typical and customary services as trustee. Fees for additional or extraordinary services not now part of the customary services provided, such as special services during default or additional government reporting requirements will be charged at the then current rates for such services.

The Company also covenants to indemnify the Trustee (and its officers, agents, directors and employees) for, and to hold it harmless against, any loss, liability or expense incurred without gross negligence or bad faith on the part of the Trustee and arising out of or in connection with the acceptance or administration of this trust and the performance of its duties and the taking of any enforcement actions hereunder, including the costs and expenses of defending itself against any claim of liability in the premises.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The obligations of the Company under this Section to compensate and indemnify the Trustee and to pay or reimburse the Trustee for expenses, disbursements and advances shall constitute additional indebtedness hereunder. Such additional indebtedness shall be secured by a lien prior to that of the Bonds upon all property and funds held or collected by the Trustee as such, except funds held in trust for the benefit of the holders of particular Bonds. The obligations of the Company under this Section 7.07 shall survive the satisfaction and discharge of this Indenture or the earlier resignation or removal of the Trustee.

**Section 7.08 Reliance on Sole Member's Certificate.**

Except as otherwise provided in Section 7.01, whenever in the administration of the provisions of this Indenture the Trustee shall deem it necessary or desirable that a matter be proved or established prior to taking or suffering or omitting to take any action hereunder, such matter (unless other evidence in respect thereof be herein specifically prescribed) may, in the absence of gross negligence or bad faith on the part of the Trustee, be deemed to be conclusively proved and established by a Sole Member's Certificate delivered to the Trustee and such certificate, in the absence of gross negligence or bad faith on the part of the Trustee, shall be full warrant to the Trustee for any action taken, suffered or omitted to be taken by it under the provisions of this Indenture upon the faith thereof.

**Section 7.09 Disqualification; Conflicting Interests.**

If the Trustee has or shall acquire any "conflicting interest" within the meaning of Section 310(b) of the Trust Indenture Act, it shall, within 90 days after ascertaining that it has a conflicting interest, or within 30 days after receiving written notice from the Company that it has a conflicting interest, either eliminate such conflicting interest or resign in the manner and with the effect specified in Section 7.11.

**Section 7.10 Corporate Trustee Required; Eligibility.**

There shall at all times be a Trustee with respect to the Bonds issued hereunder which shall at all times be a corporation organized and doing business under the laws of the United States of America or any State or Territory thereof or of the District of Columbia, or a corporation or other Person permitted to act as trustee by the SEC, authorized under such laws to exercise corporate trust powers, having a combined capital and surplus of at least One Hundred Million U.S. Dollars ($100,000,000), and subject to supervision or examination by Federal, State, Territorial, or District of Columbia authority. If such corporation publishes reports of condition at least annually, pursuant to law or to the requirements of the aforesaid supervising or examining authority, then for the purposes of this Section, the combined capital and surplus of such corporation shall be deemed to be its combined capital and surplus as set forth in its most recent report of condition so published. The Company may not, nor may any Person directly or indirectly controlling, controlled by, or under common control with the Company, serve as Trustee. In case at any time the Trustee shall cease to be eligible in accordance with the provisions of this Section, the Trustee shall resign immediately in the manner and with the effect specified in Section 7.11.

**Section 7.11 Resignation and Removal; Appointment of Successor.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Trustee or any successor hereafter appointed, may at any time resign by giving written notice thereof to the Company and by transmitting notice of resignation by mail, first class postage prepaid, to the Bondholders, as their names and addresses appear upon the Bond Register. Upon receiving such notice of resignation, the Company shall promptly appoint a successor trustee by written instrument, in duplicate, executed by order of the Sole Member, one copy of which instrument shall be delivered to the resigning Trustee and one copy to the successor trustee. If no successor trustee shall have been so appointed and have accepted appointment within 30 days after the mailing of such notice of resignation, the resigning Trustee may petition any court of competent jurisdiction for the appointment of a successor trustee, or any Bondholder who has been a bona fide holder of a Bond or Bonds for at least six months may on behalf of himself and all others similarly situated, petition any such court for the appointment of a successor trustee. Such court may thereupon after such notice, if any, as it may deem proper and prescribe, appoint a successor trustee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In case at any time any one of the following shall occur:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) the Trustee shall fail to comply with the provisions of Section 7.09 after written request therefor by the Company or by any Bondholder who has been a bona fide holder of a Bond or Bonds for at least six months; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) the Trustee shall cease to be eligible in accordance with the provisions of Section 7.10 and shall fail to resign after written request therefor by the Company or by any such Bondholder; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) the Trustee shall become incapable of acting, or shall be adjudged a bankrupt or insolvent, or commence a voluntary bankruptcy proceeding, or a receiver of the Trustee or of its property shall be appointed or consented to, or any public officer shall take charge or control of the Trustee or of its property or affairs for the purpose of rehabilitation, conservation or liquidation, then, in any such case, the Company may remove the Trustee with respect to all Bonds and appoint a successor trustee by written instrument, in duplicate, executed by order of the Sole Member, one copy of which instrument shall be delivered to the Trustee so removed and one copy to the successor trustee, or, unless, in the case of a failure to comply with Section 7.09, any Bondholder who has been a bona fide holder of a Bond or Bonds for at least six months may, on behalf of that holder and all others similarly situated, petition any court of competent jurisdiction for the removal of the Trustee and the appointment of a successor trustee. Such court may thereupon after such notice, if any, as it may deem proper and prescribe, remove the Trustee and appoint a successor trustee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The holders of a majority in aggregate principal amount of the Bonds at the time Outstanding may at any time remove the Trustee by so notifying the Trustee and the Company and may appoint a successor Trustee with the consent of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Any resignation or removal of the Trustee and appointment of a successor trustee with respect to the Bonds pursuant to any of the provisions of this Section shall become effective upon acceptance of appointment by the successor trustee as provided in Section 7.12.

**Section 7.12 Acceptance of Appointment By Successor.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) In case of the appointment hereunder of a successor trustee with respect to all Bonds, every such successor trustee so appointed shall execute, acknowledge and deliver to the Company and to the retiring Trustee an instrument accepting such appointment, and thereupon the resignation or removal of the retiring Trustee shall become effective and such successor trustee, without any further act, deed or conveyance, shall become vested with all the rights, powers, trusts and duties of the retiring Trustee; but, on the request of the Company or the successor trustee, such retiring Trustee shall, upon payment of its charges, execute and deliver an instrument transferring to such successor trustee all the rights, powers, and trusts of the retiring Trustee and shall duly assign, transfer and deliver to such successor trustee all property and money held by such retiring Trustee hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Upon request of any such successor trustee, the Company shall execute any and all instruments for more fully and certainly vesting in and confirming to such successor trustee all such rights, powers and trusts referred to in paragraph (a) of this Section.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) No successor trustee shall accept its appointment unless at the time of such acceptance such successor trustee shall be qualified and eligible under this Article.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Upon acceptance of appointment by a successor trustee as provided in this Section, the Company shall transmit notice of the succession of such trustee hereunder by mail, first class postage prepaid, to the Bondholders, as their names and addresses appear upon the Bond Register. If the Company fails to transmit such notice within ten days after acceptance of appointment by the successor trustee, the successor trustee shall cause such notice to be transmitted at the expense of the Company.

**Section 7.13 Merger, Conversion, Consolidation or Succession to Business.**

Any corporation into which the Trustee may be merged or converted or with which it may be consolidated, or any corporation resulting from any merger, conversion or consolidation to which the Trustee shall be a party, or any corporation succeeding to the corporate trust business of the Trustee, shall be the successor of the Trustee hereunder, provided that such corporation shall be qualified under the provisions of Section 7.09 and eligible under the provisions of Section 7.10, without the execution or filing of any paper or any further act on the part of any of the parties hereto, anything herein to the contrary notwithstanding. In case any Bonds shall have been authenticated, but not delivered, by the Trustee then in office, any successor by merger, conversion or consolidation to such authenticating Trustee may adopt such authentication and deliver the Bonds so authenticated with the same effect as if such successor Trustee had itself authenticated such Bonds.

**ARTICLE VIII**

**CONCERNING THE BONDHOLDERS**

**Section 8.01 Evidence of Action by Bondholders.**

Whenever in this Indenture it is provided that the holders of a majority or specified percentage in aggregate principal amount of the Bonds may take any action (including the making of any demand or request, the giving of any notice, consent or waiver or the taking of any other action), the fact that at the time of taking any such action the holders of such majority or specified percentage have joined therein may be evidenced by any instrument or any number of instruments of similar tenor executed by such holders in Person or by agent or proxy appointed in writing. If the Company shall solicit from the Bondholders any request, demand, authorization, direction, notice, consent, waiver or other action, the Company may, at its option, as evidenced by a Sole Member's Certificate, fix in advance a record date (an "**Action Record Date**") for the determination of Bondholders entitled to give such request, demand, authorization, direction, notice, consent, waiver or other action, but the Company shall have no obligation to do so. If such Action Record Date is fixed, such request, demand, authorization, direction, notice, consent, waiver or other action may be given before or after the Action Record Date, but only the Bondholders of record at the close of business on the Action Record Date shall be deemed to be Bondholders for the purposes of determining whether Bondholders of the requisite proportion of Outstanding Bonds have authorized or agreed or consented to such request, demand, authorization, direction, notice, consent, waiver or other action, and for that purpose the Outstanding Bonds shall be computed as of the Action Record Date; provided, however, that no such authorization, agreement or consent by such Bondholders on the Action Record Date shall be deemed effective unless it shall become effective pursuant to the provisions of this Indenture not later than six months after the Action Record Date.

**Section 8.02 Proof of Execution by Bondholders.**

Subject to the provisions of Section 7.01, proof of the execution of any instrument by a Bondholder (such proof will not require notarization) or his agent or proxy and proof of the holding by any Person of any of the Bonds shall be sufficient if made in the following manner:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The fact and date of the execution by any such Person of any instrument may be proved in any reasonable manner acceptable to the Trustee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The ownership of Bonds shall be proved by the Bond Register of such Bonds or by a certificate of the Bond Registrar thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Trustee may require such additional proof of any matter referred to in this Section as it shall deem necessary.

**Section 8.03 Who May be Deemed Owners.**

Prior to the due presentment for registration of transfer of any Bond, the Company, the Trustee, any paying agent and any Bond Registrar may deem and treat the Person in whose name such Bond shall be registered upon the books of the Company as the absolute owner of such Bond (whether or not such Bond shall be overdue and notwithstanding any notice of ownership or writing thereon made by anyone other than the Bond Registrar) for the purpose of receiving payment of or on account of the principal of (and premium, if any) and (subject to Section 2.02) interest on such Bond and for all other purposes; and neither the Company nor the Trustee nor any paying agent nor any Bond Registrar shall be affected by any notice to the contrary.

**Section 8.04 Certain Bonds Owned by Company Disregarded.**

In determining whether the holders of the requisite aggregate principal amount of Bonds have concurred in any direction, consent of waiver under this Indenture, the Bonds that are owned by the Company or any other obligor or by any Person directly or indirectly controlling or controlled by or under common control with the Company or any other obligor shall be disregarded and deemed not to be Outstanding for the purpose of any such determination, except that for the purpose of determining whether the Trustee shall be protected in relying on any such direction, consent or waiver, only Bonds that the Trustee actually knows are so owned shall be so disregarded. The Bonds so owned that have been pledged in good faith may be regarded as Outstanding for the purposes of this Section, if the pledgee shall establish to the satisfaction of the Trustee the pledgee's right so to act with respect to such Bonds and that the pledgee is not a Person directly or indirectly controlling or controlled by or under direct or indirect common control with the Company or any such other obligor. In case of a dispute as to such right, any decision by the Trustee taken upon the advice of counsel shall be full protection to the Trustee.

**Section 8.05 Actions Binding on Future Bondholders.**

At any time prior to (but not after) the evidencing to the Trustee, as provided in Section 8.01, of the taking of any action by the holders of the majority or percentage in aggregate principal amount of the Bonds specified in this Indenture in connection with such action, any holder of a Bond that is shown by the evidence to be included in the Bonds the holders of which have consented to such action may, by filing written notice with the Trustee, and upon proof of holding as provided in Section 8.02, revoke such action so far as concerns such Bond. Except as aforesaid any such action taken by the holder of any Bond shall be conclusive and binding upon such holder and upon all future holders and owners of such Bond, and of any Bond issued in exchange therefor, on registration of transfer thereof or in place thereof, irrespective of whether or not any notation in regard thereto is made upon such Bond. Any action taken by the holders of the majority or percentage in aggregate principal amount of the Bonds specified in this Indenture in connection with such action shall be conclusively binding upon the Company, the Trustee and the holders of all the Bonds.

**ARTICLE IX**

**SUPPLEMENTAL INDENTURES**

**Section 9.01 Supplemental Indentures Without the Consent of Bondholders.**

In addition to any supplemental indenture otherwise authorized by this Indenture, the Company and the Trustee may from time to time and at any time enter into an indenture or indentures supplemental hereto, without the consent of the Bondholders, for one or more of the following purposes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) to cure any ambiguity, defect, or inconsistency herein or in the Bonds;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) to provide for uncertificated Bonds in addition to or in place of certificated Bonds;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) to add to the covenants, restrictions, conditions or provisions relating to the Company for the benefit of the holders of all of the Bonds, to make the occurrence, or the occurrence and the continuance, of a default in any such additional covenants, restrictions, conditions or provisions an Event of Default, or to surrender any right or power herein conferred upon the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) to add to, delete from, or revise the conditions, limitations, and restrictions on the authorized amount, terms, or purposes of issue, authentication, and delivery of Bonds (prior to the issuance thereof), as herein set forth;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) to make any change that does not adversely affect the rights of any Bondholder in any material respect;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6) to provide for the issuance of and establish the form and terms and conditions of the Bonds, to establish the form of any certifications required to be furnished pursuant to the terms of this Indenture or Bonds, or to add to the rights of the holders of any Bonds;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7) to evidence and provide for the acceptance of appointment hereunder by a successor Trustee and to add to or change any of the provisions of this Indenture as shall be necessary to provide for or facilitate the administration of the trusts hereunder by more than one Trustee, pursuant to the requirements of Section 7.12; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(8) to comply with any requirements of the SEC or any successor.

The Trustee is hereby authorized to join with the Company in the execution of any such supplemental indenture, and to make any further appropriate agreements and stipulations that may be therein contained, but the Trustee shall not be obligated to enter into any such supplemental indenture that affects the Trustee's own rights, duties or immunities under this Indenture or otherwise.

Any supplemental indenture authorized by the provisions of this Section may be executed by the Company and the Trustee without the consent of the holders of any of the Bonds at the time Outstanding, notwithstanding any of the provisions of Section 9.02.

**Section 9.02 Supplemental Indentures With Consent of Bondholders**.

With the consent (evidenced as provided in Section 8.01) of the holders of not less than a majority in aggregate principal amount of the Bonds at the time Outstanding, the Company and the Trustee may from time to time and at any time enter into an indenture or indentures supplemental hereto for the purpose of adding any provisions to or changing in any manner or eliminating any of the provisions of this Indenture or of any supplemental indenture or of modifying in any manner not covered by Section 9.01 the rights of the holders of the Bonds under this Indenture; provided, however, that no such supplemental indenture shall, without the consent of the holders of each Bond then Outstanding and affected thereby:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) extend the maturity of the principal of, or any installment of principal of or interest on, any Bond, or reduce the principal amount thereof, or reduce the rate of interest or extend the time of payment of interest thereon or reduce any premium payable upon the redemption thereof, or reduce the amount of the principal of any other Bond which would be due and payable upon a declaration of acceleration of the maturity thereof pursuant to Section 6.01 or change the coin or currency in which any Bond or any premium or interest thereon is payable, or impair the right to institute suit for the enforcement of any such payment on or after the maturity thereof (or, in the case of redemption, on or after the redemption date), or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) reduce the percentage in principal amount of the Outstanding Bonds, the consent of whose holders is required for any such supplemental indenture, or the consent of whose holders is required for any waiver of certain defaults hereunder and their consequences provided for in this Indenture, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) modify any of the provisions of this Section or Section 6.06 relating to waivers of default, except to increase any such percentage or to provide that certain other provisions of this Indenture cannot be modified or waived without the consent of the holder of each Outstanding Bond affected thereby; provided, however, that this clause shall not be deemed to require the consent of any holder with respect to changes in the references to "the Trustee" and concomitant changes in this Section, or the deletion of this proviso, in accordance with the requirements of Sections 7.12 and 9.01(8).

**Section 9.03 Effect of Supplemental Indentures.**

Upon the execution of any supplemental indenture pursuant to the provisions of this Article, this Indenture shall be and be deemed to be modified and amended in accordance therewith and the respective rights, limitations of rights, obligations, duties and immunities under this Indenture of the Trustee, the Company and the holders of Bonds shall thereafter be determined, exercised and enforced hereunder subject in all respects to such modifications and amendments, and all the terms and conditions of any such supplemental indenture shall be and be deemed to be part of the terms and conditions of this Indenture for any and all purposes.

**Section 9.04 Bonds Affected by Supplemental Indentures.**

Bonds affected by a supplemental indenture, authenticated and delivered after the execution of such supplemental indenture pursuant to the provisions of this Article, may bear a notation in form approved by the Company, provided such form meets the requirements of any exchange upon the Bonds may be listed, as to any matter provided for in such supplemental indenture. If the Company shall so determine, new Bonds so modified as to conform, in the opinion of the Sole Member of the Company, to any modification of this Indenture contained in any such supplemental indenture may be prepared by the Company, authenticated by the Trustee and delivered in exchange for the Bonds then Outstanding.

**Section 9.05 Execution of Supplemental Indentures.**

Upon the request of the Company and upon the filing with the Trustee of evidence of the consent of Bondholders required to consent thereto as aforesaid, the Trustee shall join with the Company in the execution of such supplemental indenture unless such supplemental indenture affects the Trustee's own rights, duties or immunities under this Indenture or otherwise, in which case the Trustee may in its discretion but shall not be obligated to enter into such supplemental indenture. The Trustee, subject to the provisions of Section 7.01, may receive a Sole Member's Certificate or an Opinion of Counsel as conclusive evidence that any supplemental indenture executed pursuant to this Article is authorized or permitted by, and conforms to, the terms of this Article and that it is proper for the Trustee under the provisions of this Article to join in the execution thereof.

Promptly after the execution by the Company and the Trustee of any supplemental indenture pursuant to the provisions of this Section, the Trustee shall transmit by mail, first class postage prepaid, a notice, setting forth in general terms the substance of such supplemental indenture, to the Bondholders as their names and addresses appear upon the Bond Register. Any failure of the Trustee to mail such notice, or any defect therein, shall not, however, in any way impair or affect the validity of any such supplemental indenture.

**ARTICLE X**

**SUCCESSOR ENTITY**

**Section 10.01 Company May Consolidate, Etc.**

The Company may consolidate or merge with or into any other corporation or entity, and may sell, lease or convey all or substantially all of our assets to any corporation or entity, provided that the successor entity, if other than the Company:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) is organized and existing under the laws of the United States of America or any United States, or U.S., state or the District of Columbia; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) assumes in a written instrument between the Company and the successor entity (a copy of which shall be provided to the Trustee) all of the Company's obligations to perform and observe all of the Company's obligations under the Bonds and the Indenture;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) and provided further that no Event of Default under the Indenture shall have occurred and be continuing.

**ARTICLE XI**

**SATISFACTION AND DISCHARGE; REDEMPTION**

**Section 11.01 Satisfaction and Discharge.**

This Indenture will be discharged and will cease to be of further effect (except as to any surviving rights of registration of transfer or exchange of Bonds herein expressly provided for), and the Trustee, at the expense of the Company, shall execute proper instruments acknowledging satisfaction and discharge of this Indenture, when:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) either (A) all Bonds theretofore authenticated and delivered (other than (i) any Bonds that shall have been destroyed, lost or stolen and that shall have been replaced or paid as provided in Section 2.06 and (ii) Bonds for whose payment money or noncallable Governmental Obligations have theretofore been deposited in trust or segregated and held in trust by the Company and thereafter repaid to the Company or discharged from such trust, as provided in Section 11.05) have been delivered to the Trustee for cancellation; or (B) all Bonds not theretofore delivered to the Trustee for cancellation (i) have become due and payable, or (ii) will by their terms become due and payable within one year or (iii) are to be called for redemption within one year under arrangements satisfactory to the Trustee for the giving of notice of redemption, and the Company shall deposit or cause to be deposited with the Trustee as trust funds in trust for the purpose (x) moneys in an amount, or (y) noncallable Governmental Obligations the scheduled principal of and interest on which in accordance with their terms will provide, not later than the due date of any payment, money in an amount, or (z) a combination thereof, sufficient, in the case of (y) or (z), in the opinion of a nationally recognized firm of independent public accountants expressed in a written certification thereof delivered to the Trustee, to pay and discharge, at maturity or upon redemption, all Bonds not theretofore delivered to the Trustee for cancellation, including principal (and premium, if any) and interest due or to become due to such date of maturity or date fixed for redemption, as the case may be;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) the Company has paid or caused to be paid all other sums payable hereunder by the Company; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) the Company has delivered to the Trustee a Sole Member's Certificate and an Opinion of Counsel, each stating that all the conditions precedent herein provided for relating to the satisfaction and discharge of this Indenture have been complied with.

Notwithstanding the satisfaction and discharge of this Indenture, the obligations of the Trustee under Section 7.07 and, if money shall have been deposited with the Trustee pursuant to subclause (y) of clause (1) of this Section, the obligations of the Trustee under Sections 11.03 and 11.05 shall survive.

**Section 11.02 Deposited Moneys to be Held in Trust.**

All moneys or Governmental Obligations deposited with the Trustee pursuant to Section 11.01 shall be held in trust and shall be available for payment as due, either directly or through any paying agent (including the Company acting as its own paying agent), to the holders of the Bondholders for the payment or redemption of which such moneys or Governmental Obligations have been deposited with the Trustee.

**Section 11.03 Payment of Moneys Held by Paying Agents.**

In connection with the satisfaction and discharge of this Indenture all moneys or Governmental Obligations then held by any paying agent under the provisions of this Indenture shall, upon demand of the Company, be paid to the Trustee and thereupon such paying agent shall be released from all further liability with respect to such moneys or Governmental Obligations.

**Section 11.04 Repayment to Company.**

Any moneys or Governmental Obligations deposited with any paying agent or the Trustee, or then held by the Company, in trust for payment of principal of (or premium, if any) or interest on the Bonds that are not applied but remain unclaimed by the holders of such Bonds for at least two years after the date upon which the principal of (and premium, if any) or interest on such Bonds shall have respectively become due and payable, or such other shorter period set forth in applicable escheat or abandoned property law, shall be repaid to the Company on May 31 of each year or (if then held by the Company) shall be discharged from such trust; and thereupon the paying agent and the Trustee shall be released from all further liability with respect to such moneys or Governmental Obligations, and the holder of any of the Bonds entitled to receive such payment shall thereafter, as an unsecured general creditor, look only to the Company for the payment thereof as an unsecured general creditor, unless an abandoned property law designates another Person.

**Section 11.05 Reinstatement**

If the Trustee (or other qualifying trustee or any paying agent appointed as provided herein) is unable to apply any moneys or Government Obligations in accordance with this Article 11 by reason of any legal proceeding or any order or judgment of any court or governmental authority enjoining, restraining or otherwise prohibiting such application, then the Company's obligations under this Indenture and the Bonds shall be revived and reinstated as though no such deposit had occurred, until such time as the Trustee (or other qualifying trustee or paying agent) is permitted to apply all such moneys and Government Obligations in accordance with this Article 11; *provided*, *however*, that if the Company makes any payment of the principal of or premium, if any, or interest, if any, on the Bonds following the reinstatement of its obligations as aforesaid, the Company shall be subrogated to the rights of the Bondholders to receive such payment from the funds held by the Trustee (or other qualifying trustee or paying agent).

**ARTICLE XII**

**IMMUNITY OF ORGANIZERS, MEMBERS, OFFICERS** 

**AND MANAGERS**

**Section 12.01 No Recourse.**

No recourse under or upon any obligation, covenant or agreement of this Indenture, or of any Bond, or for any claim based thereon or otherwise in respect thereof, shall be had against any organizer, member, officer or manager, past, present or future as such, of the Company or of any predecessor or successor entity, either directly or through the Company or any such predecessor or successor entity, whether by virtue of any constitution, statute or rule of law, or by the enforcement of any assessment or penalty or otherwise; it being expressly understood that this Indenture and the obligations issued hereunder are solely corporate obligations, and that no such personal liability whatever shall attach to, or is or shall be incurred by, the organizers, members, officers or managers as such, of the Company or of any predecessor or successor entity, or any of them, because of the creation of the indebtedness hereby authorized, or under or by reason of the obligations, covenants or agreements contained in this Indenture or in any of the Bonds or implied therefrom; and that any and all such personal liability of every name and nature, either at common law or in equity or by constitution or statute, of, and any and all such rights and claims against, every such organizer, member, officer or manager as such, because of the creation of the indebtedness hereby authorized, or under or by reason of the obligations, covenants or agreements contained in this Indenture or in any of the Bonds or implied therefrom, are hereby expressly waived and released as a condition of, and as a consideration for, the execution of this Indenture and the issuance of such Bonds.

**ARTICLE XIII**

**MISCELLANEOUS PROVISIONS**

**Section 13.01 Effect on Successors and Assigns.**

All the covenants, stipulations, promises and agreements in this Indenture contained by or on behalf of the Company shall bind its successors and assigns, whether so expressed or not.

**Section 13.02 Actions by Successor**.

Any act or proceeding by any provision of this Indenture authorized or required to be done or performed by any board, committee or officer of the Company shall and may be done and performed with like force and effect by the corresponding board, committee or officer of any corporation that shall at the time be the lawful successor of the Company.

**Section 13.03 Surrender of Company Powers.**

The Company by instrument in writing executed by authority of its Sole Member and delivered to the Trustee may surrender any of the powers reserved to the Company, and thereupon such power so surrendered shall terminate both as to the Company and as to any successor corporation.

**Section 13.04 Notices**

Except as otherwise expressly provided herein any notice or demand that by any provision of this Indenture is required or permitted to be given or served by the Trustee or by the holders of Bonds to or on the Company may be given or served by being deposited first class postage prepaid in a post-office letterbox addressed (until another address is filed in writing by the Company with the Trustee), as follows: c/o LHL Strategies, Inc., 1100 E. Hector St., Ste 415, Conshohocken, PA 19428. Any notice, election, request or demand by the Company or any Bondholder to or upon the Trustee shall be deemed to have been sufficiently given or made, for all purposes, if given or made in writing at the Corporate Trust Office of the Trustee.

**Section 13.05 Governing Law.**

This Indenture and each Bond shall be deemed to be a contract made under the internal laws of the State of New York, and for all purposes shall be construed in accordance with the laws of said State.

**Section 13.06 Treatment of Bonds as Debt.**

It is intended that the Bonds will be treated as indebtedness and not as equity for federal income tax purposes. The provisions of this Indenture shall be interpreted to further this intention.

**Section 13.07 Compliance Certificates and Opinions.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Upon any application or demand by the Company to the Trustee to take any action under any of the provisions of this Indenture, the Company, shall furnish to the Trustee a Sole Member's Certificate stating that all conditions precedent provided for in this Indenture relating to the proposed action have been complied with and an Opinion of Counsel stating that in the opinion of such counsel all such conditions precedent have been complied with, except that in the case of any such application or demand as to which the furnishing of such documents is specifically required by any provision of this Indenture relating to such particular application or demand, no additional certificate or opinion need be furnished.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Each certificate or opinion provided for in this Indenture and delivered to the Trustee with respect to compliance with a condition or covenant in this Indenture shall include

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) a statement that the Person making such certificate or opinion has read such covenant or condition;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) a brief statement as to the nature and scope of the examination or investigation upon which the statements or opinions contained in such certificate or opinion are based;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) a statement that, in the opinion of such Person, he has made such examination or investigation as is necessary to enable him to express an informed opinion as to whether or not such covenant or condition has been complied with; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) a statement as to whether or not, in the opinion of such Person, such condition or covenant has been complied with.

**Section 13.08 Payments on Business Days.**

Except as set forth in a Sole Member's Certificate, or established in one or more indentures supplemental to this Indenture, in any case where the date of maturity of interest or principal of any Bond or the date of redemption of any Bond shall not be a Business Day, then payment of interest or principal (and premium, if any) may be made on the next succeeding Business Day with the same force and effect as if made on the nominal date of maturity or redemption, and no interest shall accrue for the period after such nominal date.

**Section 13.09 Counterparts.**

This Indenture may be executed in any number of counterparts, each of which shall be an original, but such counterparts shall together constitute but one and the same instrument.

**Section 13.10 Separability.**

In case any one or more of the provisions contained in this Indenture or in the Bonds shall for any reason be held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect any other provisions of this Indenture or of such Bonds, but this Indenture and such Bonds shall be construed as if such invalid or illegal or unenforceable provision had never been contained herein or therein.

**Section 13.11 Electronic Storage.** The parties agree that the transaction described herein may be conducted and related documents may be stored by electronic means. Copies, telecopies, facsimiles, electronic files and other reproductions of original executed documents shall be deemed to be authentic and valid counterparts of such original documents for all purposes, including the filing of any claim, action or suit in the appropriate court of law.

*[Remainder of page intentionally left blank. Signature page follows.]*

IN WITNESS WHEREOF, the parties hereto have caused this Indenture to be duly executed all as of the day and year first above written.

---

| | |
|:---|:---|
| LIGHTHOUSE LIFE CAPITAL, LLC<br> a Delaware limited liability company | LIGHTHOUSE LIFE CAPITAL, LLC<br> a Delaware limited liability company |
| By: | LHL Strategies, Inc. |
| Its: | Sole Member |
| By: |  |
| Name: | Michael D. Freedman |
| Its: | Chief Executive Officer |
| UMB BANK, as Trustee  | UMB BANK, as Trustee  |
| By: |  |
| Name: | Lara L Stevens |
| Title: | Vice President \| Corporate Trust & Escrow Services |

---

EXHIBIT A

(Form of Class C Bond)

EXHIBIT B

(Form of Class CR Bond)

EXHIBIT C

(Form of Class D Bond)

EXHIBIT D

(Form of Class DR Bond)

## Ex1Sa-3

**EXHIBIT 3(F)** 

**THIS BOND HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), OR THE SECURITIES LAWS OF ANY STATE OR OTHER JURISDICTION, AND THIS BOND MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED EXCEPT (1) PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OR (2) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT, IN EACH CASE IN ACCORDANCE WITH ALL APPLICABLE STATE SECURITIES LAWS AND THE SECURITIES LAWS OF OTHER JURISDICTIONS, AND IN THE CASE OF A TRANSACTION EXEMPT FROM REGISTRATION, UNLESS THE COMPANY HAS RECEIVED AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO IT THAT SUCH TRANSACTION DOES NOT REQUIRE REGISTRATION UNDER THE SECURITIES ACT AND SUCH OTHER APPLICABLE LAWS.**

**LIGHTHOUSE LIFE CAPITAL, LLC**

**11.0% Senior Beacon Bonds (Class C Bonds)**

 Principal Amount of the Bonds: $[●]

 Series: [●]

LIGHTHOUSE LIFE CAPITAL, LLC, a Delaware limited liability company (the "**Company**"), for value received, promises to pay to Vistra USA, LLC, or its registered assigns, the principal sum of up to $50,000,000, as more particularly stated and revised from time to time by the Schedule of Exchanges of Interests in Class C Bonds attached hereto, on the Maturity Date (as defined herein).

Interest Payment Dates: Monthly payments on the 15<sup>th</sup> of each month commencing on the first month following the issuance of such Bond and continuing monthly thereafter until its maturity date.

Record Dates: The last day of each calendar month.

Reference is made to the further provisions of this Certificate contained herein, which will for all purposes have the same effect as if set forth at this place.

IN WITNESS WHEREOF, the Company has caused this Certificate to be signed manually or by facsimile by its duly authorized officer.

Dated: [●]

---

| | |
|:---|:---|
| LIGHTHOUSE LIFE CAPITAL, LLC,<br> a Delaware limited liability company | LIGHTHOUSE LIFE CAPITAL, LLC,<br> a Delaware limited liability company |
| By: |  |
| Name: |  |
| Its: | Authorized Signatory |

---

CERTIFICATE OF AUTHENTICATION

The Class C Bonds are the 11.0% Senior Beacon Bonds described in the within-mentioned Indenture. Dated: March 18, 2025.

---

| | |
|:---|:---|
| UMB BANK, N.A., as Trustee | UMB BANK, N.A., as Trustee |
| By: |  |
| Name: |  |
| Its: | Authorized Signatory |

---

<u>SCHEDULE OF EXCHANGES OF CLASS C BONDS</u>

The following exchanges of a part of this Certificate for an interest in another certificate or exchanges of a part of another certificate for an interest in this Certificate have been made:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Date of Exchange** | **Amount of Decrease in Principal Amount of this Certificate** | **Amount of Increase in Principal Amount of this Certificate** | **Principal Amount of this Certificate Following such Decrease (or Increase)** | **Signature of Authorized Officer or Trustee of Registrar** |

---

(Reverse of Bond)

11.0% Senior Beacon Bonds

Class C Bonds

This Certificate is governed by that certain indenture by and between UMB Bank, N.A. (the "**Trustee**") and the Company, dated as of March 18, 2025 (the "**Indenture**"), as amended or supplemented from time to time, relating to the offer of $50,000,000 in the aggregate of Class C Bonds, Class CR Bonds, Class D Bonds and Class DR Bonds (the "**Bonds**") of the Company as such amount and securities may be adjusted in accordance with the Indenture. Capitalized terms used herein shall have the meanings assigned to them in the Indenture referred to below unless otherwise indicated.

SECTION 1. <u>Interest</u>. The Company promises to pay interest on the principal amount of the Class C Bonds represented by this certificate at 11.0% per annum from the date of issuance, up to but not including the fifth anniversary of the issuance date of this certificate (the "**Maturity Date**") subject to the Company's ability to extend the Maturity Date for an additional six months in its sole and absolute discretion by providing written notice of such extension to the Trustee, Paying Agent and Bondholders of the maturing Bond at least 60 days prior to the Maturity Date. The Company will pay interest due on the Class C Bonds on the Interest Payment Dates, or if any such day is not a business day, the next Business Day. Interest on the Class C Bonds will accrue from the first day of the calendar month immediately preceding the Interest Payment Date through the last day of the calendar month immediately preceding the Interest Payment Date. The Company shall pay interest on overdue principal and premium, if any, from time to time on demand to the extent lawful at the interest rate applicable to the Class C Bonds; it shall pay interest on overdue installments of interest (without regard to any applicable grace periods) from time to time on demand at the same rate to the extent lawful. Interest will be computed on the basis of a 360-day year consisting of twelve 30-day months.

SECTION 2. <u>Method of Payment</u>. The Company will pay interest on the Class C Bonds to the Persons who are registered holders of Class C Bonds at the close of business on the last day of each calendar month immediately preceding the Interest Payment Date, whether or not such date is a Business Day (the "**Record Date**"), even if such Class C Bonds are canceled after such Record Date and on or before such Interest Payment Date, except as provided in Section 2.02 of the Indenture with respect to Defaulted Interest. The Class C Bonds will be issued in denominations of $1,000 and integral multiples of $1,000 in excess thereof. The Company shall pay principal, premium, if any, and interest on the Class C Bonds in such coin or currency of the United States of America as at the time of payment is legal tender for payment of public and private debts ("**U.S. Legal Tender**"). Principal, premium, if any, and interest on the Class C Bonds will be payable at the office or agency of the Company maintained for such purpose except that, at the option of the Company, the payment of interest may be made by check mailed to the holders of Class C Bonds at their respective addresses set forth in the Bond Register. Until otherwise designated by the Company, the Company's office or agency will be the office of the Paying Agent maintained for such purpose.

SECTION 3. <u>Paying Agent and Registrar</u>. The Company hereby appoints UMB Bank as paying agent and registrar for the Bonds held in global form by DTC, and Vistra USA, LLC as paying agent and registrar for Bonds held in any other name (each individually a "**Paying Agent**" and "**Bond Registrar**" and together the "**Paying Agent**" and "**Bond Registrars**"). The Company may change the paying agent or registrar without notice to the holders of Class C Bonds but with written notice to the Trustee. Except as provided in the Indenture, the Company or any of its Subsidiaries may act in any such capacity.

SECTION 4. <u>Indenture</u>. The Company issued the Class C Bonds under the Indenture. The terms of the Class C Bonds include those stated in the Indenture for a complete description of the terms of the Class C Bonds. The Class C Bonds are subject to all such terms, and holders of Class C Bonds are referred to the Indenture. To the extent any provision of this Certificate conflicts with the express provisions of the Indenture, the provisions of the Indenture shall govern and be controlling.

SECTION 5. <u>Optional Redemption</u>. The Company may redeem the Class C Bonds, in whole or in part, without penalty. Any redemption of a Class C Bond will be at a price equal to the then outstanding principal on the Bonds being redeemed, plus any accrued but unpaid interest on such Bonds. If the Company plans to redeem the Class C Bonds, the Company will give notice of redemption not less than fifteen (15) days nor more than 60 days prior to any redemption date to each such holder's address appearing in the Bond Register maintained by the applicable Bond Registrar. In the event the Company elects to redeem less than all of the Class C Bonds, the particular Class C Bonds to be redeemed will be selected by the Company in its sole discretion. Except as set forth in this Section 5, or pursuant to Section 3.02 of the Indenture, the Class C Bonds may not be redeemed by the Company.

SECTION 6. <u>Optional Redemption at Election of Bondholder</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Class C Bonds will be redeemable at the election of the Bondholder beginning one year after the last issuance date of the series of Class C Bonds represented hereby. In order to request redemption, the Bondholder must provide written notice to the Paying Agent that the Bondholder requests redemption of all or a portion of the Bondholder's Bonds (a "**Notice of Redemption**") not less than 150 days prior to the Maturity Date. The Company will have 120 days from the date such notice is provided to redeem the Bondholder's Bonds at a price per Class C Bond equal to: (i) $910 plus any accrued but unpaid interest on the Class C Bond if the request for redemption is received after the date that is 13 months and on or before the date that is 24 months following the date of issuance of the Class C Bond to be redeemed; (ii) $915 plus any accrued but unpaid interest on the Class C Bond if the request is received after the date that is 25 months and on or before the date that is 36 months following the date of issuance of the Class C Bond to be redeemed; and (iii) $920 plus any accrued but unpaid interest on the Class C Bond if the request is received after the date that is 37 months and on or before the date that is 48 months following the date of issuance of the Class C Bond to be redeemed; and (iv) $925 plus any accrued but unpaid interest on the Class C Bond if the request is received after the date that is 49 months and on or before the date that is 60 months following the date of issuance of the Class C Bond to be redeemed. The Company's obligation to redeem Bonds with respect to Notices of Redemption received in any given Redemption Period (as defined below) is limited to an aggregate principal amount of Bonds during any Redemption Period equal to the 10% Limit (as defined below). Any Bonds redeemed as a result of a Bondholder's right upon death or disability set forth in Section 7 will be included in calculating the 10% Limit and will thus reduce the number of Bonds available to be redeemed pursuant to this Section. Bond redemptions set forth in this Section will occur in the order that notices are received. Bond redemption requests during any Redemption Period in excess of the 10% Limit (not including death or disability claims) will be held ("**Held Requests**") until the next Redemption Period and then fulfilled in the order in which they were received; provided, that if the 10% Limit for any Redemption Period increases in accordance with the definition of the 10% Limit during the pendency of the Offering, then such Held Requests will be fulfilled upon such increase in the 10% Limit in the order in which they were received.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) "10% Limit" shall mean 10% of the aggregate principal of Bonds outstanding at the commencement of the current calendar year; provided, however, during the pendency of the Offering, such amount shall be updated to equal 10% of the aggregate principal of Bonds outstanding at the commencement of the current calendar quarter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) "Offering" shall mean that certain offering for sale of the Bonds pursuant that certain confidential private placement memorandum dated March 24, 2025 (the "**Memorandum**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) "Redemption Period" shall mean a calendar year.

SECTION 7. <u>Redemption upon Death or Disability</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Subject to subsection (b) below, within 60 days of the death or Qualifying Disability of a holder who is a natural person or a Person who beneficially holds Bonds (a "**Holder Redemption Event**"), the estate of such Person, such Person, or legal representative of such Person may request that the Company to repurchase, in whole but not in part, without penalty, the Bonds held or beneficially held by such Person, as the case may be, by delivering to the Company a repurchase request in form and content acceptable to the Company in its sole discretion (a "**Repurchase Request**"). Redemptions due to death or disability shall count towards the annual 10% limit on redemptions described above; provided, however, that any redemptions pursuant to death or disability shall not be subject to the 10% limit. Any Repurchase Request shall specify the particular Holder Redemption Event giving rise to the right of the holder or beneficial holder to have his or her Securities repurchased by the Company. If a Bond or beneficial interest is held jointly by natural persons who are legally married, then a Repurchase Request may be made by (i) the surviving holder or beneficial holder upon the occurrence of a Holder Redemption Event arising by virtue of a death, or (ii) the disabled holder or beneficial holder (or a legal representative) upon the occurrence of a Holder Redemption Event arising by virtue of a Disability. In the event a Bond or beneficial interest is held together by two or more natural persons that are not legally married (regardless of whether held as joint tenants, co-tenants or otherwise), neither of these persons shall have the right to request that the Company repurchase such Bond or beneficial interest unless a Holder Redemption Event has occurred for all such co-holders or co-beneficial holders of such Bond.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Qualifying Disability shall mean with respect to any Holder or beneficial holder, a determination of disability based upon a physical or mental condition or impairment arising after the date such Holder or beneficial holder first acquired the Bonds. Any such determination of disability must be made by any of: (1) the Social Security Administration; (2) the U.S. Office of Personnel Management; or (3) the Veteran's Benefits Administration, or the Applicable Governmental Agency, responsible for reviewing the disability retirement benefits that the applicable Bondholder or beneficial holder could be eligible to receive.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Upon receipt of a Repurchase Request under subsection (a) above, the Company shall designate a date for the repurchase of such Security and notify the Trustee and Paying Agents of such Repurchase Date, which date shall not be later than 90 days after the Company receives facts or certifications establishing to the reasonable satisfaction of the Company the occurrence of a Holder Redemption Event. Any redemption of a Bond under this Section will be at a price equal to all accrued and unpaid interest, to but not including the date on which the Bonds are redeemed, plus the then outstanding principal amount of such Bond.

SECTION 8. <u>Denominations, Transfer Exchange</u>. The Class C Bonds are in registered form without coupons in denominations of $1,000 and integral multiples of $1,000 in excess thereof. The transfer of Class C Bonds may be registered and Class C Bonds may be exchanged as provided in the Indenture. The Bond Registrar and the Trustee may require a holder of Class C Bonds, among other things, to furnish appropriate endorsements and transfer documents, and the Company may require a holder of Class C Bonds to pay any taxes and fees required by law or permitted by the Indenture. The Company and the Bond Registrar are not required to transfer or exchange any Class C Bonds selected for redemption. Also, the Company and the Bond Registrar are not required to transfer or exchange any Class C Bonds for a period of 15 days before a selection of Class C Bonds to be redeemed.

SECTION 9. <u>Persons Deemed Owners</u>. The registered holder of Class C Bonds may be treated as its owner for all purposes.

SECTION 10. <u>Amendment, Supplement and Waiver</u>. Any existing Default or compliance with any provision may be waived with the consent of the holders of a majority of the Class C Bonds then outstanding. Without notice to or consent of any holder of Class C Bonds, the parties thereto may amend or supplement the Indenture and the Class C Bonds as provided in the Indenture.

SECTION 11. <u>Defaults and Remedies</u>. If an Event of Default occurs and is continuing, the Trustee or the holders of not less than a majority of the then outstanding Bonds may declare the principal of, premium, if any, and accrued interest on the Bonds to be due and payable immediately in accordance with the provisions of Section 6.01 of the Indenture. If an Event of Default occurs and is continuing, the Bonds will continue to accrue interest at the applicable rate for Bonds. Holders of Class C Bonds may not enforce the Indenture or the Class C Bonds except as provided in the Indenture. Subject to certain limitations in the Indenture, holders of a majority of the then outstanding Bonds may direct the Trustee in its exercise of any trust or power. The Trustee may withhold from holders of Bonds notice of any continuing Default if it determines that withholding notice is in their best interest in accordance with Section 7.02. The holders of a majority of the Bonds then outstanding by notice to the Trustee may on behalf of the holders of all of the Bonds waive any existing Default and its consequences under the Indenture except a Default in the payment of principal of, or interest on, any Bond as specified in Section 6.01(a)(1) and (2) of the Indenture.

SECTION 12. <u>Restrictive Covenants</u>. The Indenture contains certain covenants as set forth in Article IV of the Indenture.

SECTION 13. <u>No Recourse Against Others</u>. No recourse for the payment of the principal of, premium, if any, or interest on any of the Class C Bonds or for any claim based thereon or otherwise in respect thereof, and no recourse under or upon any obligation, covenant or agreement of the Company in the Indenture, or in any of the Class C Bonds or because of the creation of any indebtedness represented thereby, shall be had against any incorporator, stockholder, officer, director, employee or controlling person of the Company or of any successor Person thereof. Each Holder, by accepting the Class C Bonds, waives and releases all such liability. Such waiver and release are part of the consideration for issuance of the Class C Bonds.

SECTION 14. <u>Authentication</u>. This Certificate shall not be valid until authenticated by the manual signature of the Trustee, Paying Agent or an authenticating agent.

SECTION 15. <u>Abbreviations</u>. Customary abbreviations may be used in the name of a holder of Class C Bonds or an assignee, such as: TEN COM (= tenants in common), TEN ENT (= tenants by the entirety), JT TEN (= joint tenants with right of survivorship and not as tenants in common), CUST (= Custodian), and U/G/M/A (= Uniform Gifts to Minors Act).

SECTION 16. <u>Registered Form</u>. The Class C Bonds are in registered form within meaning of Treasury Regulations Section 1.871-14(c)(1)(i) for U.S. federal income and withholding tax purposes.

SECTION 17. <u>Governing Law</u>. This Bond and this Certificate shall be governed by, and construed in accordance with, the laws of the State of New York.

The Company will furnish to any holder of Class C Bonds upon written request and without charge a copy of the Indenture.

## Ex1Sa-3

**EXHIBIT 3(G)** 

**THIS BOND HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), OR THE SECURITIES LAWS OF ANY STATE OR OTHER JURISDICTION, AND THIS BOND MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED EXCEPT (1) PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OR (2) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT, IN EACH CASE IN ACCORDANCE WITH ALL APPLICABLE STATE SECURITIES LAWS AND THE SECURITIES LAWS OF OTHER JURISDICTIONS, AND IN THE CASE OF A TRANSACTION EXEMPT FROM REGISTRATION, UNLESS THE COMPANY HAS RECEIVED AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO IT THAT SUCH TRANSACTION DOES NOT REQUIRE REGISTRATION UNDER THE SECURITIES ACT AND SUCH OTHER APPLICABLE LAWS.**

**LIGHTHOUSE LIFE CAPITAL, LLC**

**11.50% Senior Beacon Bonds (Class CR Bonds)**

 Principal Amount of the Bonds: $[●]

 Series: [●]

LIGHTHOUSE LIFE CAPITAL, LLC, a Delaware limited liability company (the "**Company**"), for value received, promises to pay to Vistra USA, LLC, or its registered assigns, the principal sum of up to $50,000,000, as more particularly stated and revised from time to time by the Schedule of Exchanges of Interests in Class CR Bonds attached hereto, on the Maturity Date (as defined herein).

Interest Payment Dates: Monthly payments on the 15<sup>th</sup> of each month commencing on the first month following the issuance of such Bond and continuing monthly thereafter until its maturity date.

Record Dates: The last day of each calendar month.

Reference is made to the further provisions of this Certificate contained herein, which will for all purposes have the same effect as if set forth at this place.

IN WITNESS WHEREOF, the Company has caused this Certificate to be signed manually or by facsimile by its duly authorized officer.

Dated: [●]

---

| | |
|:---|:---|
| LIGHTHOUSE LIFE CAPITAL, LLC, <br> a Delaware limited liability company | LIGHTHOUSE LIFE CAPITAL, LLC, <br> a Delaware limited liability company |
| By: |  |
| Name: |  |
| Its: | Authorized Signatory |

---

CERTIFICATE OF AUTHENTICATION

The Class CR Bonds are the 11.50% Senior Beacon Bonds described in the within-mentioned Indenture. Dated: March 18, 2025.

---

| | |
|:---|:---|
| UMB BANK, N.A., as Trustee  | UMB BANK, N.A., as Trustee  |
| By: |  |
| Name: |  |
| Its: | Authorized Signatory |

---

<u>SCHEDULE OF EXCHANGES OF CLASS CR BONDS</u>

The following exchanges of a part of this Certificate for an interest in another certificate or exchanges of a part of another certificate for an interest in this Certificate have been made:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Date of Exchange** | **Amount of Decrease in Principal Amount of this Certificate** | **Amount of Increase in Principal Amount of this Certificate** | **Principal Amount of this Certificate Following such Decrease (or Increase)** | **Signature of Authorized Officer or Trustee of Registrar** |

---

(Reverse of Bond)

11.50% Senior Beacon Bonds

Class CR Bonds

This Certificate is governed by that certain indenture by and between UMB Bank, N.A. (the "**Trustee**") and the Company, dated as of March 18, 2025 (the "**Indenture**"), as amended or supplemented from time to time, relating to the offer of $50,000,000 in the aggregate of Class C Bonds, Class CR Bonds, Class D Bonds and Class DR Bonds (the "**Bonds**") of the Company as such amount and securities may be adjusted in accordance with the Indenture. Capitalized terms used herein shall have the meanings assigned to them in the Indenture referred to below unless otherwise indicated.

SECTION 1. <u>Interest</u>. The Company promises to pay interest on the principal amount of the Class CR Bonds represented by this certificate at 11.50% per annum from the date of issuance, up to but not including the fifth anniversary of the issuance date of this certificate (the "**Maturity Date**") subject to the Company's ability to extend the Maturity Date for an additional six months in its sole and absolute discretion by providing written notice of such extension to the Trustee, Paying Agent and Bondholders of the maturing Bond at least 60 days prior to the Maturity Date. The Company will pay interest due on the Class CR Bonds on the Interest Payment Dates, or if any such day is not a business day, the next Business Day. Interest on the Class CR Bonds will accrue from the first day of the calendar month immediately preceding the Interest Payment Date through the last day of the calendar month immediately preceding the Interest Payment Date. The Company shall pay interest on overdue principal and premium, if any, from time to time on demand to the extent lawful at the interest rate applicable to the Class CR Bonds; it shall pay interest on overdue installments of interest (without regard to any applicable grace periods) from time to time on demand at the same rate to the extent lawful. Interest will be computed on the basis of a 360-day year consisting of twelve 30-day months.

SECTION 2. <u>Method of Payment</u>. The Company will pay interest on the Class CR Bonds to the Persons who are registered holders of Class CR Bonds at the close of business on the last day of each calendar month immediately preceding the Interest Payment Date, whether or not such date is a Business Day (the "**Record Date**"), even if such Class CR Bonds are canceled after such Record Date and on or before such Interest Payment Date, except as provided in Section 2.02 of the Indenture with respect to Defaulted Interest. The Class CR Bonds will be issued in denominations of $1,000 and integral multiples of $1,000 in excess thereof. The Company shall pay principal, premium, if any, and interest on the Class CR Bonds in such coin or currency of the United States of America as at the time of payment is legal tender for payment of public and private debts ("**U.S. Legal Tender**"). Principal, premium, if any, and interest on the Class CR Bonds will be payable at the office or agency of the Company maintained for such purpose except that, at the option of the Company, the payment of interest may be made by check mailed to the holders of Class CR Bonds at their respective addresses set forth in the Bond Register. Until otherwise designated by the Company, the Company's office or agency will be the office of the Paying Agent maintained for such purpose.

SECTION 3. <u>Paying Agent and Registrar</u>. The Company hereby appoints UMB Bank as paying agent and registrar for the Bonds held in global form by DTC, and Vistra USA, LLC as paying agent and registrar for Bonds held in any other name (each individually a "**Paying Agent**" and "**Bond Registrar**" and together the "**Paying Agent**" and "**Bond Registrars**"). The Company may change the paying agent or registrar without notice to the holders of Class CR Bonds but with written notice to the Trustee. Except as provided in the Indenture, the Company or any of its Subsidiaries may act in any such capacity.

SECTION 4. <u>Indenture</u>. The Company issued the Class CR Bonds under the Indenture. The terms of the Class CR Bonds include those stated in the Indenture for a complete description of the terms of the Class CR Bonds. The Class CR Bonds are subject to all such terms, and holders of Class CR Bonds are referred to the Indenture. To the extent any provision of this Certificate conflicts with the express provisions of the Indenture, the provisions of the Indenture shall govern and be controlling.

SECTION 5. <u>Optional Redemption</u>. The Company may redeem the Class CR Bonds, in whole or in part, without penalty. Any redemption of a Class CR Bond will be at a price equal to the then outstanding principal on the Bonds being redeemed, plus any accrued but unpaid interest on such Bonds. If the Company plans to redeem the Class CR Bonds, the Company will give notice of redemption not less than fifteen (15) days nor more than 60 days prior to any redemption date to each such holder's address appearing in the Bond Register maintained by the Bond Registrar. In the event the Company elects to redeem less than all of the Class CR Bonds, the particular Class CR Bonds to be redeemed will be selected by the Company in its sole discretion. Except as set forth in this Section 5, or pursuant to Section 3.02 of the Indenture, the Class CR Bonds may not be redeemed by the Company.

SECTION 6. <u>Optional Redemption at Election of Bondholder</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Class CR Bonds will be redeemable at the election of the Bondholder beginning one year after the last issuance date of the series of Class CR Bonds represented hereby. In order to request redemption, the Bondholder must provide written notice to the Paying Agent that the Bondholder requests redemption of all or a portion of the Bondholder's Bonds (a "**Notice of Redemption**") not less than 150 days prior to the Maturity Date. The Company will have 120 days from the date such notice is provided to redeem the Bondholder's Bonds at a price per Bond equal to: (i) $910 plus any accrued but unpaid interest on the Class CR Bond if the request for redemption is received after the date that is 13 months and on or before the date that is 24 months following the date of issuance of the Class CR Bond to be redeemed; (ii) $915 plus any accrued but unpaid interest on the Class CR Bond if the request is received after the date that is 25 months and on or before the date that is 36 months following the date of issuance of the Class CR Bond to be redeemed; and (iii) $920 plus any accrued but unpaid interest on the Class CR Bond if the request is received after the date that is 37 months and on or before the date that is 48 months following the date of issuance of the Class CR Bond to be redeemed; and (iv) $925 plus any accrued but unpaid interest on the Class CR Bond if the request is received after the date that is 49 months and on or before the date that is 60 months following the date of issuance of the Class CR Bond to be redeemed. The Company's obligation to redeem Bonds with respect to Notices of Redemption received in any given Redemption Period (as defined below) is limited to an aggregate principal amount of Bonds during any Redemption Period equal to the 10% Limit (as defined below). Any Bonds redeemed as a result of a Bondholder's right upon death or disability set forth in Section 7 will be included in calculating the 10% Limit and will thus reduce the number of Bonds available to be redeemed pursuant to this Section. Bond redemptions set forth in this Section will occur in the order that notices are received. Bond redemption requests during any Redemption Period in excess of the 10% Limit (not including death or disability claims) will be held ("**Held Requests**") until the next Redemption Period and then fulfilled in the order in which they were received; provided, that if the 10% Limit for any Redemption Period increases in accordance with the definition of the 10% Limit during the pendency of the Offering, then such Held Requests will be fulfilled upon such increase in the 10% Limit in the order in which they were received.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) "10% Limit" shall mean 10% of the aggregate principal of Bonds outstanding at the commencement of the current calendar year; provided, however, during the pendency of the Offering, such amount shall be updated to equal 10% of the aggregate principal of Bonds outstanding at the commencement of the current calendar quarter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) "Offering" shall mean that certain offering for sale of the Bonds pursuant pursuant that certain confidential private placement memorandum dated March 24, 2025 (the "**Memorandum**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) "Redemption Period" shall mean a calendar year.

SECTION 7. <u>Redemption upon Death or Disability</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Subject to subsection (b) below, within 60 days of the death or Qualifying Disability of a holder who is a natural person or a Person who beneficially holds Bonds (a "**Holder Redemption Event**"), the estate of such Person, such Person, or legal representative of such Person may request that the Company to repurchase, in whole but not in part, without penalty, the Bonds held or beneficially held by such Person, as the case may be, by delivering to the Company a repurchase request in form and content acceptable to the Company in its sole discretion (a "**Repurchase Request**"). Redemptions due to death or disability shall count towards the annual 10% limit on redemptions described above; provided, however, that any redemptions pursuant to death or disability shall not be subject to the 10% limit. Any Repurchase Request shall specify the particular Holder Redemption Event giving rise to the right of the holder or beneficial holder to have his or her Securities repurchased by the Company. If a Bond or beneficial interest is held jointly by natural persons who are legally married, then a Repurchase Request may be made by (i) the surviving holder or beneficial holder upon the occurrence of a Holder Redemption Event arising by virtue of a death, or (ii) the disabled holder or beneficial holder (or a legal representative) upon the occurrence of a Holder Redemption Event arising by virtue of a Disability. In the event a Bond or beneficial interest is held together by two or more natural persons that are not legally married (regardless of whether held as joint tenants, co-tenants or otherwise), neither of these persons shall have the right to request that the Company repurchase such Bond or beneficial interest unless a Holder Redemption Event has occurred for all such co-holders or co-beneficial holders of such Bond.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Qualifying Disability shall mean with respect to any Holder or beneficial holder, a determination of disability based upon a physical or mental condition or impairment arising after the date such Holder or beneficial holder first acquired the Bonds. Any such determination of disability must be made by any of: (1) the Social Security Administration; (2) the U.S. Office of Personnel Management; or (3) the Veteran's Benefits Administration, or the Applicable Governmental Agency, responsible for reviewing the disability retirement benefits that the applicable Bondholder or beneficial holder could be eligible to receive.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Upon receipt of a Repurchase Request under subsection (a) above, the Company shall designate a date for the repurchase of such Security and notify the Trustee and Paying Agents of such Repurchase Date, which date shall not be later than 90 days after the Company receives facts or certifications establishing to the reasonable satisfaction of the Company the occurrence of a Holder Redemption Event. Any redemption of a Bond under this Section will be at a price equal to all accrued and unpaid interest, to but not including the date on which the Bonds are redeemed, plus the then outstanding principal amount of such Bond.

SECTION 8. <u>Denominations, Transfer Exchange</u>. The Class CR Bonds are in registered form without coupons in denominations of $1,000 and integral multiples of $1,000 in excess thereof. The transfer of Class CR Bonds may be registered and Class CR Bonds may be exchanged as provided in the Indenture. The Bond Registrar and the Trustee may require a holder of Class CR Bonds, among other things, to furnish appropriate endorsements and transfer documents, and the Company may require a holder of Class CR Bonds to pay any taxes and fees required by law or permitted by the Indenture. The Company and the Bond Registrar are not required to transfer or exchange any Class CR Bonds selected for redemption. Also, the Company and the Bond Registrar are not required to transfer or exchange any Class CR Bonds for a period of 15 days before a selection of Class CR Bonds to be redeemed.

SECTION 9. <u>Persons Deemed Owners</u>. The registered holder of Class CR Bonds may be treated as its owner for all purposes.

SECTION 10. <u>Amendment, Supplement and Waiver</u>. Any existing Default or compliance with any provision may be waived with the consent of the holders of a majority of the Class CR Bonds then outstanding. Without notice to or consent of any holder of Class CR Bonds, the parties thereto may amend or supplement the Indenture and the Class CR Bonds as provided in the Indenture.

SECTION 11. <u>Defaults and Remedies</u>. If an Event of Default occurs and is continuing, the Trustee or the holders of not less than a majority of the then outstanding Bonds may declare the principal of, premium, if any, and accrued interest on the Bonds to be due and payable immediately in accordance with the provisions of Section 6.01 of the Indenture. If an Event of Default occurs and is continuing, the Bonds will continue to accrue interest at the applicable rate for Bonds. Holders of Class CR Bonds may not enforce the Indenture or the Class CR Bonds except as provided in the Indenture. Subject to certain limitations in the Indenture, holders of a majority of the then outstanding Bonds may direct the Trustee in its exercise of any trust or power. The Trustee may withhold from holders of Bonds notice of any continuing Default if it determines that withholding notice is in their best interest in accordance with Section 7.02. The holders of a majority of the Bonds then outstanding by notice to the Trustee may on behalf of the holders of all of the Bonds waive any existing Default and its consequences under the Indenture except a Default in the payment of principal of, or interest on, any Bond as specified in Section 6.01(a)(1) and (2) of the Indenture.

SECTION 12. <u>Restrictive Covenants</u>. The Indenture contains certain covenants as set forth in Article IV of the Indenture.

SECTION 13. <u>No Recourse Against Others</u>. No recourse for the payment of the principal of, premium, if any, or interest on any of the Class CR Bonds or for any claim based thereon or otherwise in respect thereof, and no recourse under or upon any obligation, covenant or agreement of the Company in the Indenture, or in any of the Class CR Bonds or because of the creation of any indebtedness represented thereby, shall be had against any incorporator, stockholder, officer, director, employee or controlling person of the Company or of any successor Person thereof. Each Holder, by accepting the Class CR Bonds, waives and releases all such liability. Such waiver and release are part of the consideration for issuance of the Class CR Bonds.

SECTION 14. <u>Authentication</u>. This Certificate shall not be valid until authenticated by the manual signature of the Trustee, Paying Agent or an authenticating agent.

SECTION 15. <u>Abbreviations</u>. Customary abbreviations may be used in the name of a holder of Class CR Bonds or an assignee, such as: TEN COM (= tenants in common), TEN ENT (= tenants by the entirety), JT TEN (= joint tenants with right of survivorship and not as tenants in common), CUST (= Custodian), and U/G/M/A (= Uniform Gifts to Minors Act).

SECTION 16. <u>Registered Form</u>. The Class CR Bonds are in registered form within meaning of Treasury Regulations Section 1.871-14(c)(1)(i) for U.S. federal income and withholding tax purposes.

SECTION 17. <u>Governing Law</u>. This Bond and this Certificate shall be governed by, and construed in accordance with, the laws of the State of New York.

The Company will furnish to any holder of Class CR Bonds upon written request and without charge a copy of the Indenture.

## Ex1Sa-3

**EXHIBIT 3(H)** 

**THIS BOND HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), OR THE SECURITIES LAWS OF ANY STATE OR OTHER JURISDICTION, AND THIS BOND MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED EXCEPT (1) PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OR (2) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT, IN EACH CASE IN ACCORDANCE WITH ALL APPLICABLE STATE SECURITIES LAWS AND THE SECURITIES LAWS OF OTHER JURISDICTIONS, AND IN THE CASE OF A TRANSACTION EXEMPT FROM REGISTRATION, UNLESS THE COMPANY HAS RECEIVED AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO IT THAT SUCH TRANSACTION DOES NOT REQUIRE REGISTRATION UNDER THE SECURITIES ACT AND SUCH OTHER APPLICABLE LAWS.**

**LIGHTHOUSE LIFE CAPITAL, LLC**

**9.0% Senior Beacon Bonds (Class D Bonds)**

 Principal Amount of the Bonds: $[●]

 Series: [●]

LIGHTHOUSE LIFE CAPITAL, LLC, a Delaware limited liability company (the "**Company**"), for value received, promises to pay to Vistra USA, LLC, or its registered assigns, the principal sum of up to $50,000,000, as more particularly stated and revised from time to time by the Schedule of Exchanges of Interests in Class D Bonds attached hereto, on the Maturity Date (as defined herein).

Interest Payment Dates: Monthly payments on the 15<sup>th</sup> of each month commencing on the first month following the issuance of such Bond and continuing monthly thereafter until its maturity date.

Record Dates: The last day of each calendar month.

Reference is made to the further provisions of this Certificate contained herein, which will for all purposes have the same effect as if set forth at this place.

IN WITNESS WHEREOF, the Company has caused this Certificate to be signed manually or by facsimile by its duly authorized officer.

Dated: [●]

---

| | |
|:---|:---|
| LIGHTHOUSE LIFE CAPITAL, LLC,<br> a Delaware limited liability company | LIGHTHOUSE LIFE CAPITAL, LLC,<br> a Delaware limited liability company |
| By:  |  |
| Name: |  |
| Its:  | Authorized Signatory  |

---

CERTIFICATE OF AUTHENTICATION

The Class D Bonds are the 9.0% Senior Beacon Bonds described in the within-mentioned Indenture. Dated: March 18, 2025.

---

| | |
|:---|:---|
| BANK, N.A., as Trustee  | BANK, N.A., as Trustee  |
| By:  |  |
| Name: |  |
| Its:  | Authorized Signatory  |

---

<u>SCHEDULE OF EXCHANGES OF CLASS D BONDS</u>

The following exchanges of a part of this Certificate for an interest in another certificate or exchanges of a part of another certificate for an interest in this Certificate have been made:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Date of Exchange** | **Amount of Decrease in Principal Amount of this Certificate** | **Amount of Increase in Principal Amount of this Certificate** | **Principal Amount of this Certificate Following such Decrease (or Increase)** | **Signature of Authorized Officer or Trustee of Registrar** |

---

(Reverse of Bond)

9.0% Senior Beacon Bonds

Class D Bonds

This Certificate is governed by that certain indenture by and between UMB Bank, N.A. (the "**Trustee**") and the Company, dated as of March 18, 2025 (the "**Indenture**"), as amended or supplemented from time to time, relating to the offer of $50,000,000 in the aggregate of Class C Bonds, Class CR Bonds, Class D Bonds and Class DR Bonds (the "**Bonds**") of the Company as such amount and securities may be adjusted in accordance with the Indenture. Capitalized terms used herein shall have the meanings assigned to them in the Indenture referred to below unless otherwise indicated.

SECTION 1. <u>Interest</u>. The Company promises to pay interest on the principal amount of the Class D Bonds represented by this certificate at 9.0% per annum from the date of issuance, up to but not including the third anniversary of the issuance date of this certificate (the "**Maturity Date**") subject to the Company's ability to extend the Maturity Date for an additional six months in its sole and absolute discretion by providing written notice of such extension to the Trustee, Paying Agent and Bondholders of the maturing Bond at least 60 days prior to the Maturity Date. The Company will pay interest due on the Class D Bonds on the Interest Payment Dates, or if any such day is not a business day, the next Business Day. Interest on the Class D Bonds will accrue from the first day of the calendar month immediately preceding the Interest Payment Date through the last day of the calendar month immediately preceding the Interest Payment Date. The Company shall pay interest on overdue principal and premium, if any, from time to time on demand to the extent lawful at the interest rate applicable to the Class D Bonds; it shall pay interest on overdue installments of interest (without regard to any applicable grace periods) from time to time on demand at the same rate to the extent lawful. Interest will be computed on the basis of a 360-day year consisting of twelve 30-day months.

SECTION 2. <u>Method of Payment</u>. The Company will pay interest on the Class D Bonds to the Persons who are registered holders of Class D Bonds at the close of business on the last day of each calendar month immediately preceding the Interest Payment Date, whether or not such date is a Business Day (the "**Record Date**"), even if such Class D Bonds are canceled after such Record Date and on or before such Interest Payment Date, except as provided in Section 2.02 of the Indenture with respect to Defaulted Interest. The Class D Bonds will be issued in denominations of $1,000 and integral multiples of $1,000 in excess thereof. The Company shall pay principal, premium, if any, and interest on the Class D Bonds in such coin or currency of the United States of America as at the time of payment is legal tender for payment of public and private debts ("**U.S. Legal Tender**"). Principal, premium, if any, and interest on the Class D Bonds will be payable at the office or agency of the Company maintained for such purpose except that, at the option of the Company, the payment of interest may be made by check mailed to the holders of Class D Bonds at their respective addresses set forth in the Bond Register. Until otherwise designated by the Company, the Company's office or agency will be the office of the Paying Agent maintained for such purpose.

SECTION 3. <u>Paying Agent and Registrar</u>. The Company hereby appoints UMB Bank as paying agent and registrar for the Bonds held in global form by DTC, and Vistra USA, LLC. as paying agent and registrar for Bonds held in any other name (each individually a "**Paying Agent**" and "**Bond Registrar**" and together the "**Paying Agent**" and "**Bond Registrars**"). The Company may change the paying agent or registrar without notice to the holders of Class D Bonds but with written notice to the Trustee. Except as provided in the Indenture, the Company or any of its Subsidiaries may act in any such capacity.

SECTION 4. <u>Indenture</u>. The Company issued the Class D Bonds under the Indenture. The terms of the Class D Bonds include those stated in the Indenture for a complete description of the terms of the Class D Bonds. The Class D Bonds are subject to all such terms, and holders of Class D Bonds are referred to the Indenture. To the extent any provision of this Certificate conflicts with the express provisions of the Indenture, the provisions of the Indenture shall govern and be controlling.

SECTION 5. <u>Optional Redemption</u>. The Company may redeem the Class D Bonds, in whole or in part, without penalty. Any redemption of a Class D Bond will be at a price equal to the then outstanding principal on the Bonds being redeemed, plus any accrued but unpaid interest on such Bonds. If the Company plans to redeem the Class D Bonds, the Company will give notice of redemption not less than fifteen (15) days nor more than 60 days prior to any redemption date to each such holder's address appearing in the Bond Register maintained by the Bond Registrar. In the event the Company elects to redeem less than all of the Class D Bonds, the particular Class D Bonds to be redeemed will be selected by the Company in its sole discretion. Except as set forth in this Section 5, or pursuant to Section 3.02 of the Indenture, the Class D Bonds may not be redeemed by the Company.

SECTION 6. <u>Optional Redemption at Election of Bondholder</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Class D Bonds will be redeemable at the election of the Bondholder beginning one year after the last issuance date of the series of Class D Bonds represented hereby. In order to request redemption, the Bondholder must provide written notice to the Paying Agent that the Bondholder requests redemption of all or a portion of the Bondholder's Bonds (a "**Notice of Redemption**") not less than 150 days prior to the Maturity Date. The Company will have 120 days from the date such notice is provided to redeem the Bondholder's Bonds at a price per Bond equal to: $915 plus any accrued but unpaid interest on the Class D Bond after the date that is 13 months and on before the date that is 36 months following the date of issuance. The Company's obligation to redeem Bonds with respect to Notices of Redemption received in any given Redemption Period (as defined below) is limited to an aggregate principal amount of Bonds during any Redemption Period equal to the 10% Limit (as defined below). Any Bonds redeemed as a result of a Bondholder's right upon death or disability set forth in Section 7 will be included in calculating the 10% Limit and will thus reduce the number of Bonds available to be redeemed pursuant to this Section. Bond redemptions set forth in this Section will occur in the order that notices are received. Bond redemption requests during any Redemption Period in excess of the 10% Limit (not including death or disability claims) will be held ("**Held Requests**") until the next Redemption Period and then fulfilled in the order in which they were received; provided, that if the 10% Limit for any Redemption Period increases in accordance with the definition of the 10% Limit during the pendency of the Offering, then such Held Requests will be fulfilled upon such increase in the 10% Limit in the order in which they were received.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) "10% Limit" shall mean 10% of the aggregate principal of Bonds outstanding at the commencement of the current calendar year; provided, however, during the pendency of the Offering, such amount shall be updated to equal 10% of the aggregate principal of Bonds outstanding at the commencement of the current calendar quarter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) "Offering" shall mean that certain offering for sale of the Bonds pursuant to pursuant that certain confidential private placement memorandum dated March 24, 2025 (the "**Memorandum**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) "Redemption Period" shall mean a calendar year.

SECTION 7. <u>Redemption upon Death or Disability</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Subject to subsection (b) below, within 60 days of the death or Qualifying Disability of a holder who is a natural person or a Person who beneficially holds Bonds (a "**Holder Redemption Event**"), the estate of such Person, such Person, or legal representative of such Person may request that the Company to repurchase, in whole but not in part, without penalty, the Bonds held or beneficially held by such Person, as the case may be, by delivering to the Company a repurchase request in form and content acceptable to the Company in its sole discretion (a "**Repurchase Request**"). Redemptions due to death or disability shall count towards the annual 10% limit on redemptions described above; provided, however, that any redemptions pursuant to death or disability shall not be subject to the 10% limit. Any Repurchase Request shall specify the particular Holder Redemption Event giving rise to the right of the holder or beneficial holder to have his or her Securities repurchased by the Company. If a Bond or beneficial interest is held jointly by natural persons who are legally married, then a Repurchase Request may be made by (i) the surviving holder or beneficial holder upon the occurrence of a Holder Redemption Event arising by virtue of a death, or (ii) the disabled holder or beneficial holder (or a legal representative) upon the occurrence of a Holder Redemption Event arising by virtue of a Disability. In the event a Bond or beneficial interest is held together by two or more natural persons that are not legally married (regardless of whether held as joint tenants, co-tenants or otherwise), neither of these persons shall have the right to request that the Company repurchase such Bond or beneficial interest unless a Holder Redemption Event has occurred for all such co-holders or co-beneficial holders of such Bond.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Qualifying Disability shall mean with respect to any Holder or beneficial holder, a determination of disability based upon a physical or mental condition or impairment arising after the date such Holder or beneficial holder first acquired the Bonds. Any such determination of disability must be made by any of: (1) the Social Security Administration; (2) the U.S. Office of Personnel Management; or (3) the Veteran's Benefits Administration, or the Applicable Governmental Agency, responsible for reviewing the disability retirement benefits that the applicable Bondholder or beneficial holder could be eligible to receive.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Upon receipt of a Repurchase Request under subsection (a) above, the Company shall designate a date for the repurchase of such Security and notify the Trustee and Paying Agents. of such Repurchase Date, which date shall not be later than 90 days after the Company receives facts or certifications establishing to the reasonable satisfaction of the Company the occurrence of a Holder Redemption Event. Any redemption of a Bond under this Section will be at a price equal to all accrued and unpaid interest, to but not including the date on which the Bonds are redeemed, plus the then outstanding principal amount of such Bond.

SECTION 8. <u>Denominations, Transfer Exchange</u>. The Class D Bonds are in registered form without coupons in denominations of $1,000 and integral multiples of $1,000 in excess thereof. The transfer of Class D Bonds may be registered and Class D Bonds may be exchanged as provided in the Indenture. The Bond Registrar and the Trustee may require a holder of Class D Bonds, among other things, to furnish appropriate endorsements and transfer documents, and the Company may require a holder of Class D Bonds to pay any taxes and fees required by law or permitted by the Indenture. The Company and the Bond Registrar are not required to transfer or exchange any Class D Bonds selected for redemption. Also, the Company and the Bond Registrar are not required to transfer or exchange any Class D Bonds for a period of 15 days before a selection of Class D Bonds to be redeemed.

SECTION 9. <u>Persons Deemed Owners</u>. The registered holder of Class D Bonds may be treated as its owner for all purposes.

SECTION 10. <u>Amendment, Supplement and Waiver</u>. Any existing Default or compliance with any provision may be waived with the consent of the holders of a majority of the Class D Bonds then outstanding. Without notice to or consent of any holder of Class D Bonds, the parties thereto may amend or supplement the Indenture and the Class D Bonds as provided in the Indenture.

SECTION 11. <u>Defaults and Remedies</u>. If an Event of Default occurs and is continuing, the Trustee or the holders of not less than a majority of the then outstanding Bonds may declare the principal of, premium, if any, and accrued interest on the Bonds to be due and payable immediately in accordance with the provisions of Section 6.01 of the Indenture. If an Event of Default occurs and is continuing, the Bonds will continue to accrue interest at the applicable rate for Bonds. Holders of Class D Bonds may not enforce the Indenture or the Class D Bonds except as provided in the Indenture. Subject to certain limitations in the Indenture, holders of a majority of the then outstanding Bonds may direct the Trustee in its exercise of any trust or power. The Trustee may withhold from holders of Bonds notice of any continuing Default if it determines that withholding notice is in their best interest in accordance with Section 7.02. The holders of a majority of the Bonds then outstanding by notice to the Trustee may on behalf of the holders of all of the Bonds waive any existing Default and its consequences under the Indenture except a Default in the payment of principal of, or interest on, any Bond as specified in Section 6.01(a)(1) and (2) of the Indenture.

SECTION 12. <u>Restrictive Covenants</u>. The Indenture contains certain covenants as set forth in Article IV of the Indenture.

SECTION 13. <u>No Recourse Against Others</u>. No recourse for the payment of the principal of, premium, if any, or interest on any of the Class D Bonds or for any claim based thereon or otherwise in respect thereof, and no recourse under or upon any obligation, covenant or agreement of the Company in the Indenture, or in any of the Class D Bonds or because of the creation of any indebtedness represented thereby, shall be had against any incorporator, stockholder, officer, director, employee or controlling person of the Company or of any successor Person thereof. Each Holder, by accepting the Class D Bonds, waives and releases all such liability. Such waiver and release are part of the consideration for issuance of the Class D Bonds.

SECTION 14. <u>Authentication</u>. This Certificate shall not be valid until authenticated by the manual signature of the Trustee, Paying Agent or an authenticating agent.

SECTION 15. <u>Abbreviations</u>. Customary abbreviations may be used in the name of a holder of Class D Bonds or an assignee, such as: TEN COM (= tenants in common), TEN ENT (= tenants by the entirety), JT TEN (= joint tenants with right of survivorship and not as tenants in common), CUST (= Custodian), and U/G/M/A (= Uniform Gifts to Minors Act).

SECTION 16. <u>Registered Form</u>. The Class D Bonds are in registered form within meaning of Treasury Regulations Section 1.871-14(c)(1)(i) for U.S. federal income and withholding tax purposes.

SECTION 17. <u>Governing Law</u>. This Bond and this Certificate shall be governed by, and construed in accordance with, the laws of the State of New York.

The Company will furnish to any holder of Class D Bonds upon written request and without charge a copy of the Indenture.

## Ex1Sa-3

**EXHIBIT 3(I)** 

**THIS BOND HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), OR THE SECURITIES LAWS OF ANY STATE OR OTHER JURISDICTION, AND THIS BOND MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED EXCEPT (1) PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OR (2) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT, IN EACH CASE IN ACCORDANCE WITH ALL APPLICABLE STATE SECURITIES LAWS AND THE SECURITIES LAWS OF OTHER JURISDICTIONS, AND IN THE CASE OF A TRANSACTION EXEMPT FROM REGISTRATION, UNLESS THE COMPANY HAS RECEIVED AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO IT THAT SUCH TRANSACTION DOES NOT REQUIRE REGISTRATION UNDER THE SECURITIES ACT AND SUCH OTHER APPLICABLE LAWS.**

**LIGHTHOUSE LIFE CAPITAL, LLC**

**9.50% Senior Beacon Bonds (Class DR Bonds)**

 Principal Amount of the Bonds: $[●]

 Series: [●]

LIGHTHOUSE LIFE CAPITAL, LLC, a Delaware limited liability company (the "**Company**"), for value received, promises to pay to Vistra USA, LLC, or its registered assigns, the principal sum of up to $50,000,000, as more particularly stated and revised from time to time by the Schedule of Exchanges of Interests in Class DR Bonds attached hereto, on the Maturity Date (as defined herein).

Interest Payment Dates: Monthly payments on the 15<sup>th</sup> of each month commencing on the first month following the issuance of such Bond and continuing monthly thereafter until its maturity date.

Record Dates: The last day of each calendar month.

Reference is made to the further provisions of this Certificate contained herein, which will for all purposes have the same effect as if set forth at this place.

IN WITNESS WHEREOF, the Company has caused this Certificate to be signed manually or by facsimile by its duly authorized officer.

Dated: [●]

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| | |
|:---|:---|
| LIGHTHOUSE LIFE CAPITAL, LLC,<br> a Delaware limited liability company | LIGHTHOUSE LIFE CAPITAL, LLC,<br> a Delaware limited liability company |
| By: |  |
| Name: |  |
| Its: | Authorized Signatory  |

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CERTIFICATE OF AUTHENTICATION

The Class DR Bonds are the 9.50% Senior Beacon Bonds described in the within-mentioned Indenture. Dated: March 18, 2025.

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| | |
|:---|:---|
| UMB BANK, N.A., as Trustee  | UMB BANK, N.A., as Trustee  |
| By: |  |
| Name: |  |
| Its: | Authorized Signatory  |

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<u>SCHEDULE OF EXCHANGES OF CLASS DR BONDS</u>

The following exchanges of a part of this Certificate for an interest in another certificate or exchanges of a part of another certificate for an interest in this Certificate have been made:

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| | | | | |
|:---|:---|:---|:---|:---|
| **Date of Exchange** | **Amount of Decrease in Principal Amount of this Certificate** | **Amount of Increase in Principal Amount of this Certificate** | **Principal Amount of this Certificate Following such Decrease (or Increase)** | **Signature of Authorized Officer or Trustee of Registrar** |

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(Reverse of Bond)

9.50% Senior Beacon Bonds

Class DR Bonds

This Certificate is governed by that certain indenture by and between UMB Bank, N.A. (the "**Trustee**") and the Company, dated as of March 18, 2025 (the "**Indenture**"), as amended or supplemented from time to time, relating to the offer of $50,000,000 in the aggregate of Class C Bonds, Class CR Bonds, Class D Bonds and Class DR Bonds (the "**Bonds**") of the Company as such amount and securities may be adjusted in accordance with the Indenture. Capitalized terms used herein shall have the meanings assigned to them in the Indenture referred to below unless otherwise indicated.

SECTION 1. <u>Interest</u>. The Company promises to pay interest on the principal amount of the Class DR Bonds represented by this certificate at 9.50% per annum from the date of issuance, up to but not including the third anniversary of the issuance date of this certificate (the "**Maturity Date**") subject to the Company's ability to extend the Maturity Date for an additional six months in its sole and absolute discretion by providing written notice of such extension to the Trustee, Paying Agent and Bondholders of the maturing Bond at least 60 days prior to the Maturity Date. The Company will pay interest due on the Class DR Bonds on the Interest Payment Dates, or if any such day is not a business day, the next Business Day. Interest on the Class DR Bonds will accrue from the first day of the calendar month immediately preceding the Interest Payment Date through the last day of the calendar month immediately preceding the Interest Payment Date. The Company shall pay interest on overdue principal and premium, if any, from time to time on demand to the extent lawful at the interest rate applicable to the Class DR Bonds; it shall pay interest on overdue installments of interest (without regard to any applicable grace periods) from time to time on demand at the same rate to the extent lawful. Interest will be computed on the basis of a 360-day year consisting of twelve 30-day months.

SECTION 2. <u>Method of Payment</u>. The Company will pay interest on the Class DR Bonds to the Persons who are registered holders of Class DR Bonds at the close of business on the last day of each calendar month immediately preceding the Interest Payment Date, whether or not such date is a Business Day (the "**Record Date**"), even if such Class DR Bonds are canceled after such Record Date and on or before such Interest Payment Date, except as provided in Section 2.02 of the Indenture with respect to Defaulted Interest. The Class DR Bonds will be issued in denominations of $1,000 and integral multiples of $1,000 in excess thereof. The Company shall pay principal, premium, if any, and interest on the Class DR Bonds in such coin or currency of the United States of America as at the time of payment is legal tender for payment of public and private debts ("**U.S. Legal Tender**"). Principal, premium, if any, and interest on the Class DR Bonds will be payable at the office or agency of the Company maintained for such purpose except that, at the option of the Company, the payment of interest may be made by check mailed to the holders of Class DR Bonds at their respective addresses set forth in the Bond Register. Until otherwise designated by the Company, the Company's office or agency will be the office of a Paying Agent maintained for such purpose.

SECTION 3. <u>Paying Agent and Registrar</u>. The Company hereby appoints UMB Bank as paying agent and registrar for the Bonds held in global form by DTC, and Vistra USA, LLC as paying agent and registrar for Bonds held in any other name (each individually a "**Paying Agent**" and "**Bond Registrar**" and together the "**Paying Agent**" and "**Bond Registrars**"). The Company may change the paying agent or registrar without notice to the holders of Class DR Bonds but with written notice to the Trustee. Except as provided in the Indenture, the Company or any of its Subsidiaries may act in any such capacity.

SECTION 4. <u>Indenture</u>. The Company issued the Class DR Bonds under the Indenture. The terms of the Class DR Bonds include those stated in the Indenture for a complete description of the terms of the Class DR Bonds. The Class DR Bonds are subject to all such terms, and holders of Class DR Bonds are referred to the Indenture. To the extent any provision of this Certificate conflicts with the express provisions of the Indenture, the provisions of the Indenture shall govern and be controlling.

SECTION 5. <u>Optional Redemption</u>. The Company may redeem the Class DR Bonds, in whole or in part, without penalty. Any redemption of a Class DR Bond will be at a price equal to the then outstanding principal on the Bonds being redeemed, plus any accrued but unpaid interest on such Bonds. If the Company plans to redeem the Class DR Bonds, the Company will give notice of redemption not less than 5 days nor more than 60 days prior to any redemption date to each such holder's address appearing in Bond Register maintained by the Bond Registrar. In the event the Company elects to redeem less than all of the Class DR Bonds, the particular Class DR Bonds to be redeemed will be selected by the Company it its sole discretion. Except as set forth in this Section 5, or pursuant to Section 3.02 of the Indenture, the Class DR Bonds may not be redeemed by the Company.

SECTION 6. <u>Optional Redemption at Election of Bondholder</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Class DR Bonds will be redeemable at the election of the Bondholder beginning one year after the last issuance date of the series of Class D Bonds represented hereby. In order to request redemption, the Bondholder must provide written notice to the Paying Agent that the Bondholder requests redemption of all or a portion of the Bondholder's Bonds (a "**Notice of Redemption**") not less than 150 days prior to the Maturity Date. The Company will have 120 days from the date such notice is provided to redeem the Bondholder's Bonds at a price per Bond equal to: $915 plus any accrued but unpaid interest on the Class DR Bond after the date that is 13 months and on before the date that is 36 months following the date of issuance. The Company's obligation to redeem Bonds with respect to Notices of Redemption received in any given Redemption Period (as defined below) is limited to an aggregate principal amount of Bonds during any Redemption Period equal to the 10% Limit (as defined below). Any Bonds redeemed as a result of a Bondholder's right upon death or disability set forth in Section 7 will be included in calculating the 10% Limit and will thus reduce the number of Bonds available to be redeemed pursuant to this Section. Bond redemptions set forth in this Section will occur in the order that notices are received. Bond redemption requests during any Redemption Period in excess of the 10% Limit (not including death or disability claims) will be held ("**Held Requests**") until the next Redemption Period and then fulfilled in the order in which they were received; provided, that if the 10% Limit for any Redemption Period increases in accordance with the definition of the 10% Limit during the pendency of the Offering, then such Held Requests will be fulfilled upon such increase in the 10% Limit in the order in which they were received

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) "10% Limit" shall mean 10% of the aggregate principal of Bonds outstanding at the commencement of the current calendar year; provided, however, during the pendency of the Offering, such amount shall be updated to equal 10% of the aggregate principal of Bonds outstanding at the commencement of the current calendar quarter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) "Offering" shall mean that certain offering for sale of the Bonds pursuant to pursuant that certain confidential private placement memorandum dated March 24, 2025 (the "**Memorandum**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) "Redemption Period" shall mean a calendar year.

SECTION 7. <u>Redemption upon Death or Disability</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Subject to subsection (b) below, within 60 days of the death or Qualifying Disability (as defined below) of a holder who is a natural person or a Person who beneficially holds Bonds (a "**Holder Redemption Event**"), the estate of such Person, such Person, or legal representative of such Person may request that the Company to repurchase, in whole but not in part, without penalty, the Bonds held or beneficially held by such Person, as the case may be, by delivering to the Company a repurchase request in form and content acceptable to the Company in its sole discretion (a "**Repurchase Request**"). Redemptions due to death or disability shall count towards the annual 10% limit on redemptions described above; provided, however, that any redemptions pursuant to death or disability shall not be subject to the 10% limit. Any Repurchase Request shall specify the particular Holder Redemption Event giving rise to the right of the holder or beneficial holder to have his or her Securities repurchased by the Company. If a Bond or beneficial interest is held jointly by natural persons who are legally married, then a Repurchase Request may be made by (i) the surviving holder or beneficial holder upon the occurrence of a Holder Redemption Event arising by virtue of a death, or (ii) the disabled holder or beneficial holder (or a legal representative) upon the occurrence of a Holder Redemption Event arising by virtue of a Disability. In the event a Bond or beneficial interest is held together by two or more natural persons that are not legally married (regardless of whether held as joint tenants, co-tenants or otherwise), neither of these persons shall have the right to request that the Company repurchase such Bond or beneficial interest unless a Holder Redemption Event has occurred for all such co-holders or co-beneficial holders of such Bond.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Qualifying Disability shall mean with respect to any Holder or beneficial holder, a determination of disability based upon a physical or mental condition or impairment arising after the date such Holder or beneficial holder first acquired the Bonds. Any such determination of disability must be made by any of: (1) the Social Security Administration; (2) the U.S. Office of Personnel Management; or (3) the Veteran's Benefits Administration, or the Applicable Governmental Agency, responsible for reviewing the disability retirement benefits that the applicable Bondholder or beneficial holder could be eligible to receive.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Upon receipt of a Repurchase Request under subsection (a) above, the Company shall designate a date for the repurchase of such Security and notify the Trustee and the Paying Agents of such Repurchase Date, which date shall not be later than 90 days after the Company receives facts or certifications establishing to the reasonable satisfaction of the Company the occurrence of a Holder Redemption Event. Any redemption of a Bond under this Section will be at a price equal to all accrued and unpaid interest, to but not including the date on which the Bonds are redeemed, plus the then outstanding principal amount of such Bond.

SECTION 8. <u>Denominations, Transfer Exchange</u>. The Class DR Bonds are in registered form without coupons in denominations of $1,000 and integral multiples of $1,000 in excess thereof. The transfer of Class DR Bonds may be registered and Class DR Bonds may be exchanged as provided in the Indenture. The Bond Registrar and the Trustee may require a holder of Class DR Bonds, among other things, to furnish appropriate endorsements and transfer documents, and the Company may require a holder of Class DR Bonds to pay any taxes and fees required by law or permitted by the Indenture. The Company and the Bond Registrar are not required to transfer or exchange any Class DR Bonds selected for redemption. Also, the Company and the Bond Registrar are not required to transfer or exchange any Class DR Bonds for a period of 15 days before a selection of Class DR Bonds to be redeemed.

SECTION 9. <u>Persons Deemed Owners</u>. The registered holder of Class DR Bonds may be treated as its owner for all purposes.

SECTION 10. <u>Amendment, Supplement and Waiver</u>. Any existing Default or compliance with any provision may be waived with the consent of the holders of a majority of the Class DR Bonds then outstanding. Without notice to or consent of any holder of Class DR Bonds, the parties thereto may amend or supplement the Indenture and the Class DR Bonds as provided in the Indenture.

SECTION 11. <u>Defaults and Remedies</u>. If an Event of Default occurs and is continuing, the Trustee or the holders of not less than a majority of the then outstanding Bonds may declare the principal of, premium, if any, and accrued interest on the Bonds to be due and payable immediately in accordance with the provisions of Section 6.01 of the Indenture. If an Event of Default occurs and is continuing, the Bonds will continue to accrue interest at the applicable rate for Bonds. Holders of Class DR Bonds may not enforce the Indenture or the Class DR Bonds except as provided in the Indenture. Subject to certain limitations in the Indenture, holders of a majority of the then outstanding Bonds may direct the Trustee in its exercise of any trust or power. The Trustee may withhold from holders of Bonds notice of any continuing Default if it determines that withholding notice is in their best interest in accordance with Section 7.02. The holders of a majority of the Bonds then outstanding by notice to the Trustee may on behalf of the holders of all of the Bonds waive any existing Default and its consequences under the Indenture except a Default in the payment of principal of, or interest on, any Bond as specified in Section 6.01(a)(1) and (2) of the Indenture.

SECTION 12. <u>Restrictive Covenants</u>. The Indenture contains certain covenants as set forth in Article IV of the Indenture.

SECTION 13. <u>No Recourse Against Others</u>. No recourse for the payment of the principal of, premium, if any, or interest on any of the Class DR Bonds or for any claim based thereon or otherwise in respect thereof, and no recourse under or upon any obligation, covenant or agreement of the Company in the Indenture, or in any of the Class DR Bonds or because of the creation of any indebtedness represented thereby, shall be had against any incorporator, stockholder, officer, director, employee or controlling person of the Company or of any successor Person thereof. Each Holder, by accepting the Class DR Bonds, waives and releases all such liability. Such waiver and release are part of the consideration for issuance of the Class DR Bonds.

SECTION 14. <u>Authentication</u>. This Certificate shall not be valid until authenticated by the manual signature of the Trustee, Paying Agent or an authenticating agent.

SECTION 15. <u>Abbreviations</u>. Customary abbreviations may be used in the name of a holder of Class DR Bonds or an assignee, such as: TEN COM (= tenants in common), TEN ENT (= tenants by the entirety), JT TEN (= joint tenants with right of survivorship and not as tenants in common), CUST (= Custodian), and U/G/M/A (= Uniform Gifts to Minors Act).

SECTION 16. <u>Registered Form</u>. The Class DR Bonds are in registered form within meaning of Treasury Regulations Section 1.871-14(c)(1)(i) for U.S. federal income and withholding tax purposes.

SECTION 17. <u>Governing Law</u>. This Bond and this Certificate shall be governed by, and construed in accordance with, the laws of the State of New York.

The Company will furnish to any holder of Class DR Bonds upon written request and without charge a copy of the Indenture.