Document:

The Alkaline Water Company Inc.: Exhibit 4.3 - Filed by newsfilecorp.com

    

    FORM OF INDENTURE RELATING TO SUBORDINATED DEBT SECURITIES

    EXHIBIT 4.3

     

     

     

     

    THE ALKALINE WATER COMPANY INC.

    SUBORDINATED DEBT SECURITIES

    INDENTURE

    Dated as of ♦

    ♦,

    Trustee

    

    THE ALKALINE WATER COMPANY INC.

    Reconciliation and tie between Trust Indenture Act of 1939 and Indenture,
dated as of ♦

    	
                Trust Indenture Act Section

            	
                 

            	
                Indenture Section

            
	
                 

            	
                 

            	
                 

            
	
                §310

            	
                (a)(1)

            	
                6.7(a)

            
	
                 

            	
                (a)(2)

            	
                6.7(a)

            
	
                 

            	
                (b)

            	
                6.8

            
	
                §312

            	
                (c)

            	
                7.1

            
	
                §314

            	
                (a)

            	
                7.3

            
	
                 

            	
                (a)(4)

            	
                10.4

            
	
                 

            	
                (c)(1)

            	
                1.2

            
	
                 

            	
                (c)(2)

            	
                1.2

            
	
                 

            	
                (e)

            	
                1.2

            
	
                §315

            	
                (b)

            	
                6.1

            
	
                 

            	
                (a)(last sentence)

            	
                1.1 ("Outstanding")

            
	
                §316

            	
                 

            	
                 

            
	
                 

            	
                (a)(1)(A)

            	
                5.2, 5.12

            
	
                 

            	
                (a)(1)(B)

            	
                5.13

            
	
                 

            	
                (b)

            	
                5.8

            
	
                 

            	
                (c)

            	
                1.4(e)

            
	
                §317

            	
                (a)(1)

            	
                5.3

            
	
                 

            	
                (a)(2)

            	
                5.4

            
	
                 

            	
                (b)

            	
                10.3

            
	
                §318

            	
                (a)

            	
                1.11

            

    Note: This reconciliation and tie shall not, for any purpose, be deemed to be a part of the Indenture.

    

    TABLE OF CONTENTS

    	ARTICLE 1 DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION	1
	1.1 Definitions	1
	1.2 Compliance Certificates and Opinions	8
	1.3 Form of Documents Delivered to Trustee	8
	1.4 Acts of Holders	9
	1.5 Notices, etc. to Trustee and Company	10
	1.6 Notice to Holders; Waiver	10
	1.7 Effect of Headings and Table of Contents	10
	1.8 Successors and Assigns	10
	1.9 Separability Clause	10
	1.10 Benefits of Indenture	11
	1.11 Governing Law	11
	1.12 Legal Holidays	11
	1.13 Agent for Service; Submission to Jurisdiction; Waiver of Immunities	11
	1.14 Incorporators, Shareholders, Officers and Directors of the Company Exempt from Individual Liability	11
	1.15 Waiver of Jury Trial	12
	1.16 Conflict with Trust Indenture Act	12
	 	 
	ARTICLE 2 SECURITY FORMS	12
	2.1 Forms Generally	12
	2.2 Form of Trustee's Certificate of Authentication	12
	2.3 Securities Issuable in Global Form	13
	 	 
	ARTICLE 3 THE SECURITIES	13
	3.1 Amount Unlimited; Issuable in Series	13
	3.2 Denominations	16
	3.3 Execution, Authentication, Delivery and Dating	16
	3.4 Temporary Securities	17
	3.5 Registration, Registration of Transfer and Exchange	18
	3.6 Mutilated, Destroyed, Lost and Stolen Securities	19
	3.7 Payment of Principal and Interest; Interest Rights Preserved; Optional Interest Reset	20
	3.8 Optional Extension of Stated Maturity	22
	3.9 Persons Deemed Owners	23
	3.10 Cancellation	23
	3.11 Computation of Interest	23
	3.12 CUSIP Numbers	23
	 	 
	ARTICLE 4 SATISFACTION AND DISCHARGE	24
	4.1 Satisfaction and Discharge of Indenture	24
	4.2 Application of Trust Money	25
	 	 
	ARTICLE 5 REMEDIES	25
	5.1 Events of Default	25
	5.2 Acceleration of Maturity; Rescission and Annulment	26
	5.3 Collection of Debt and Suits for Enforcement by Trustee	27
	5.4 Trustee May File Proofs of Claim	27
	5.5 Trustee May Enforce Claims Without Possession of Securities	28
	5.6 Application of Money Collected	28
	5.7 Limitation on Suits	28
	5.8 Unconditional Right of Holders to Receive Principal, Premium and Interest	29
	5.9 Restoration of Rights and Remedies	29
	5.10 Rights and Remedies Cumulative	29

     

    

    - ii -

    	5.11 Delay or Omission Not Waiver	30
	5.12 Control by Holders	30
	5.13 Waiver of Past Defaults	30
	5.14 Waiver of Stay or Extension Laws	30
	5.15 Undertaking for Costs	31
	 	 
	ARTICLE 6 THE TRUSTEE	31
	6.1 Notice of Defaults	31
	6.2 Certain Rights of Trustee	31
	6.3 Trustee Not Responsible for Recitals or Issuance of Securities	32
	6.4 May Hold Securities	32
	6.5 Money Held in Trust	32
	6.6 Compensation and Reimbursement	32
	6.7 Corporate Trustee Required; Eligibility; Conflicting Interests	33
	6.8 Resignation and Removal; Appointment of Successor	33
	6.9 Acceptance of Appointment by Successor	35
	6.10 Merger, Conversion, Consolidation or Succession to Business	36
	6.11 Appointment of Authenticating Agent	36
	 	 
	ARTICLE 7 HOLDERS' LISTS AND REPORTS BY TRUSTEE AND COMPANY	37
	7.1 Disclosure of Names and Addresses of Holders	37
	7.2 Reports by Trustee	37
	7.3 Reports by Company	37
	 	 
	ARTICLE 8 CONSOLIDATION, MERGER, CONVEYANCE, TRANSFER OR LEASE	38
	8.1 Company May Consolidate, etc., Only on Certain Terms	38
	8.2 Successor Person Substituted	39
	 	 
	ARTICLE 9 SUPPLEMENTAL INDENTURES	39
	9.1 Supplemental Indentures Without Consent of Holders	39
	9.2 Supplemental Indentures with Consent of Holders	40
	9.3 Execution of Supplemental Indentures	41
	9.4 Effect of Supplemental Indentures	41
	9.5 Conformity with Trust Indenture Act	41
	9.6 Reference in Securities to Supplemental Indentures	41
	9.7 Notice of Supplemental Indentures	41
	9.8 Effect on Senior Indebtedness	42
	 	 
	ARTICLE 10 COVENANTS	42
	10.1 Payment of Principal, Premium, if any, and Interest	42
	10.2 Maintenance of Office or Agency	42
	10.3 Money for Securities Payments to Be Held in Trust	42
	10.4 Statement as to Compliance	43
	10.5 Additional Amounts	43
	10.6 Corporate Existence	44
	10.7 Waiver of Certain Covenants	44
	10.8 Calculation of Original Issue Discount	44
	 	 
	ARTICLE 11 REDEMPTION OF SECURITIES	45
	11.1 Applicability of Article	45
	11.2 Election to Redeem; Notice to Trustee	45
	11.3 Selection by Trustee of Securities to Be Redeemed	45
	11.4 Notice of Redemption	45
	11.5 Deposit of Redemption Price	46

    

    

    - iii -

    	11.6 Securities Payable on Redemption Date	46
	11.7 Securities Redeemed in Part	46
	 	 
	ARTICLE 12 SINKING FUNDS	47
	12.1 Applicability of Article	47
	12.2 Satisfaction of Sinking Fund Payments with Securities	47
	12.3 Redemption of Securities for Sinking Fund	47
	 	 
	ARTICLE 13 REPAYMENT AT OPTION OF HOLDERS	48
	13.1 Applicability of Article	48
	13.2 Repayment of Securities	48
	13.3 Exercise of Option	48
	13.4 When Securities Presented for Repayment Become Due and Payable	49
	13.5 Securities Repaid in Part	49
	 	 
	ARTICLE 14 DEFEASANCE AND COVENANT DEFEASANCE	49
	14.1 Company's Option to Effect Defeasance or Covenant Defeasance	49
	14.2 Defeasance and Discharge	49
	14.3 Covenant Defeasance	50
	14.4 Conditions to Defeasance or Covenant Defeasance	50
	14.5 Deposited Money and Government Obligations to Be Held in Trust; Other Miscellaneous Provisions	52
	14.6 Reinstatement	52
	 	 
	ARTICLE 15 SUBORDINATION OF SECURITIES	52
	15.1 Agreement to Subordinate	52
	15.2 Distribution on Dissolution, Liquidation and Reorganization; Subrogation of Securities	52
	15.3 No Payment on Securities in Certain Circumstances	54
	15.4 Payments on Securities Permitted	55
	15.5 Authorization of Holders to Trustee to Effect Subordination	55
	15.6 Notices to Trustee	55
	15.7 Trustee as Holder of Senior Indebtedness	55
	15.8 Modifications of Terms of Senior Indebtedness	56
	15.9 Reliance on Judicial Order or Certificate of Liquidating Agent	56

    

    

    INDENTURE, dated as of ♦, ♦, between THE ALKALINE WATER COMPANY INC., a corporation duly organized and existing under the laws of Nevada (herein called the "Company"), having its principal office at 8541 E. Anderson Drive, Suite 100/101, Arizona 85255, and, ♦ a ♦ duly organized and existing under the laws of ♦, as trustee (herein called the "Trustee").

    RECITALS OF THE COMPANY

    The Company has duly authorized the execution and delivery of this Indenture to provide for the issuance from time to time of its senior debentures, notes or other evidences of indebtedness (herein called the "Securities"), which may be convertible into or exchangeable for any securities of any person (including the Company), to be issued in one or more series as provided in this Indenture.

    This Indenture is subject to the provisions of the Trust Indenture Act of 1939, as amended, that are required to be part of this Indenture and shall, to the extent applicable, be governed by such provisions.

    All things necessary to make this Indenture a valid and binding agreement of the Company, in accordance with its terms, have been done.

    NOW, THEREFORE, THIS INDENTURE WITNESSETH:

    For and in consideration of the premises and the purchase of the Securities by the Holders thereof, it is mutually covenanted and agreed, for the equal and proportionate benefit of all Holders of the Securities or of series thereof, as follows:

    ARTICLE 1
DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION

    1.1 Definitions

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

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

    (b) 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, and the terms "cash transaction" and "self-liquidating paper", as used in TIA Section 311, shall have the meanings assigned to them in the rules of the Commission adopted under the Trust Indenture Act;

    (c) all accounting terms not otherwise defined herein have the meanings assigned to them in accordance with generally accepted accounting principles, 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 used in the Company's annual financial statements contained in the Company's annual report delivered to its shareholders in respect of the fiscal year immediately prior to the date of such computation;

    (d) 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;

    (e) "or" is not exclusive;

    (f) "including" or "include" means including or include without limitation; and

    (g) unsecured Debt shall not be deemed to be subordinate or junior to secured Debt merely by virtue of its nature as unsecured Debt.

    

    
        - 2 -

    

    Certain terms, used principally in Article 3 and Article 5 are defined in those Articles.

    (a) "Act", when used with respect to any Holder, has the meaning specified in Section 1.4.

    (b) "Additional Amounts" means any additional amounts which are required by a Security or by or pursuant to a Board Resolution, under circumstances specified therein, to be paid by the Company in respect of certain taxes imposed on certain Holders and which are owing to such Holders.

    (c) "Affiliate" of any specified Person means any other Person directly or indirectly controlling or controlled by or under direct or indirect common control with such specified Person. For the purposes of this definition, "control" when used with respect to any specified Person means the power to direct the management and policies of such Person, directly or indirectly, whether through the ownership of voting securities, by contract or otherwise; and the terms "controlling" and "controlled" have meanings correlative to the foregoing.

    (d) "Authenticating Agent" means any Person appointed by the Trustee to act on behalf of the Trustee pursuant to Section 6.11 to authenticate Securities.

    (e) "Authorized Newspaper" means a newspaper, in the English language or in an official language of the country of publication, customarily published on each Business Day, whether or not such newspaper is also published on Saturdays, Sundays or holidays, and of general circulation in each place in connection with which the term is used or in the financial community of each such place. Where successive publications are required to be made in Authorized Newspapers, the successive publications may be made in the same or in different newspapers in the same city meeting the foregoing requirements and in each case on any Business Day.

    (f) "Board of Directors" means either the board of directors of the Company or any duly authorized committee of that board.

    (g) "Board Resolution" means a copy of a resolution certified by the Secretary or an Assistant Secretary of the Company to have been duly adopted by the Board of Directors and to be in full force and effect on the date of such certification, and delivered to the Trustee.

    (h) "Business Day", when used with respect to any Place of Payment or any other particular location referred to in this Indenture or in the Securities, means, unless otherwise specified with respect to any Securities pursuant to Section 3.1, each Monday, Tuesday, Wednesday, Thursday and Friday which is not a day on which banking institutions in that Place of Payment or other location are authorized or obligated by law or executive order to close.

    (i) "Capital Stock" means:

    (i) with respect to any Person that is a corporation, any and all shares, interests, participations or other equivalents (however designated and whether or not voting) of corporate stock, including each class of common stock and preferred stock of such Person; and

    (ii) with respect to any Person that is not a corporation, any and all partnership, membership or other equity interests of such Person.

    (j) "Commission" means the United States Securities and Exchange Commission, as from time to time constituted, created under the Exchange Act, or, if at any time after the execution of this Indenture such Commission is not existing and performing the duties now assigned to it under the Trust Indenture Act, then the body performing such duties at such time.

    (k) "Company" means the Person named as the "Company" in the first paragraph of this Indenture until a successor Person shall have become such pursuant to the applicable provisions of this Indenture, and thereafter "Company" shall mean such successor Person.

    

    
        - 3 -

    

    (l) "Company Request" or "Company Order" means a written request or order signed in the name of the Company by any two Officers, and delivered to the Trustee.

    (m) "Corporate Trust Office" means the principal corporate trust office of the Trustee, at which at any particular time its corporate trust business shall be administered, which office on the date of execution of this Indenture is located at ♦, Attention: ♦, except that with respect to presentation of Securities for payment or for registration of transfer or exchange, such term shall mean the office or agency of the Trustee at which, at any particular time, its corporate agency business shall be conducted.

    (n) "corporation" includes corporations, associations, companies and business trusts.

    (o) "covenant defeasance" has the meaning specified in Section 14.3.

    (p) "Currency" means any currency or currencies, composite currency or currency unit or currency units issued by the government of one or more countries or by any recognized confederation or association of such governments.

    (q) "Debt" means notes, bonds, debentures or other similar evidences of indebtedness for money borrowed.

    (r) "Default" means any event which is, or after notice or passage of time or both would be, an Event of Default.

    (s) "Default Notice" has the meaning specified in Section 15.3.

    (t) "Defaulted Interest" has the meaning specified in Section 3.7.

    (u) "defeasance" has the meaning specified in Section 14.2.

    (v) "Depositary" means a clearing agency registered under the Exchange Act that is designated to act as Depositary for the Global Securities. The Company initially appoints DTC as the Depositary.

    (w) "Dollar" or "$" means a dollar or other equivalent unit in such coin or currency of the United States as at the time shall be legal tender for the payment of public and private debts.

    (x) "DTC" means The Depository Trust Company, its nominees and their respective successors.

    (y) "Event of Default" has the meaning specified in Section 5.1.

    (z) "Exchange Act" means the United States Securities Exchange Act of 1934, as amended.

    (aa) "Extension Notice" has the meaning specified in Section 3.8.

    (bb) "Extension Period" has the meaning specified in Section 3.8.

    (cc) "Final Maturity" has the meaning specified in Section 3.8.

    (dd) "Government Obligations" means, unless otherwise specified with respect to any series of Securities pursuant to Section 3.1, securities which are:

    (i) direct obligations of the government which issued the Currency in which the Securities of a particular series are payable; or

    (ii) obligations of a Person controlled or supervised by and acting as an agency or instrumentality of the government which issued the Currency in which the Securities of such series are payable, the payment of which is unconditionally guaranteed by such government, which, in either case, are full faith and credit obligations of such government payable in such Currency and are not callable or redeemable at the option of the issuer thereof and shall also include a depository receipt issued by a bank or trust company as custodian with respect to any such Government Obligation or a specific payment of interest on or principal of any such Government Obligation held by such custodian for the account of a holder of a depository receipt; provided that (except as required by law) such custodian is not authorized to make any deduction from the amount payable to the holder of such depository receipt from any amount received by the custodian in respect of the Government Obligation or the specific payment of interest on or principal of the Government Obligation evidenced by such depository receipt.

     

    

    
        - 4 -

    

    (ee) "Holder" means the Person in whose name a Security is registered in the Security Register.

    (ff) "Indenture" means this instrument as originally executed and as it may from time to time be supplemented or amended by one or more indentures supplemental hereto entered into pursuant to the applicable provisions hereof, and shall include the terms of particular series of Securities established as contemplated by Section 3.1 and the provisions of the Trust Indenture Act that are deemed to be part hereof; provided, however, that, if at any time more than one Person is acting as Trustee under this instrument, "Indenture" shall mean, with respect to any one or more series of Securities for which such Person is Trustee, 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 pursuant to the applicable provisions hereof and shall include the terms of particular series of Securities for which such Person is Trustee established as contemplated by Section 3.1, exclusive, however, of any provisions or terms which relate solely to other series of Securities for which such Person is not Trustee, regardless of when such terms or provisions were adopted, and exclusive of any provisions or terms adopted by means of one or more indentures supplemental hereto executed and delivered after such Person had become such Trustee but to which such Person, as such Trustee, was not a party.

    (gg) "Indexed Security" means a Security the terms of which provide that the principal amount thereof payable at Stated Maturity may be more or less than the principal face amount thereof at original issuance.

    (hh) "interest", when used with respect to an Original Issue Discount Security which by its terms bears interest only after Maturity, means interest payable after Maturity at the rate prescribed in such Original Issue Discount Security, and, when used with respect to a Security which provides for the payment of Additional Amounts pursuant to Section 10.5, includes such Additional Amounts.

    (ii) "Interest Payment Date", when used with respect to any Security, means the Stated Maturity of an installment of interest on such Security.

    (jj) "mandatory sinking fund payment" has the meaning specified in Section 12.1.

    (kk) "Maturity", when used with respect to any Security, means the date on which the principal of such Security or an installment of principal becomes due and payable as therein or herein provided, whether at the Stated Maturity or by declaration of acceleration, notice of redemption, notice of option to elect repayment or otherwise.

    (ll) "Officer" means the Chairman of the Board, the Vice Chairman, the Chief Executive Officer, the President, any Vice President, the Chief Financial Officer, the Treasurer or the Secretary or any Assistant Treasurer or Assistant Secretary of the Company.

    (mm) "Officers' Certificate" means a written certificate signed in the name of the Company by any two Officers, and delivered to the Trustee.

    (nn) "Opinion of Counsel" means a written opinion of counsel, who may be counsel for the Company, including an employee of the Company.

    (oo) "Optional Reset Date" has the meaning specified in Section 3.7.

    

    
        - 5 -

    

    (pp) "optional sinking fund payment" has the meaning specified in Section 12.1.

    (qq) "Original Issue Discount Security" means any Security which provides for an amount less than the principal amount thereof to be due and payable upon a declaration of acceleration of the Maturity thereof pursuant to Section 5.2.

    (rr) "Original Stated Maturity" has the meaning specified in Section 3.8.

    (ss) "Outstanding", when used with respect to Securities, means, as of the date of determination, all Securities theretofore authenticated and delivered under this Indenture, except:

    (i) Securities theretofore cancelled by the Trustee or delivered to the Trustee for cancellation pursuant to the terms of this Indenture;

    (ii) Securities, or portions thereof, for whose payment or redemption or repayment at the option of the Holder money in the necessary amount has been theretofore deposited with the Trustee or any Paying Agent (other than the Company) in trust or set aside and segregated in trust by the Company (if the Company shall act as its own Paying Agent) for the Holders of such Securities; provided that, if such Securities are to be redeemed, notice of such redemption has been duly given pursuant to this Indenture or provision therefore satisfactory to the Trustee has been made;

    (iii) Securities, except to the extent provided in Sections 14.2 and 14.3, with respect to which the Company has effected defeasance and/or covenant defeasance as provided in Article 14; and

    (iv) Securities which have been paid pursuant to Section 3.6 or in exchange for or in lieu of which other Securities have been authenticated and delivered pursuant to this Indenture, other than any such Securities in respect of which there shall have been presented to the Trustee proof satisfactory to it that such Securities are held by a protected purchaser (as defined in Article 8 of the Uniform Commercial Code) in whose hands such Securities are valid obligations of the Company;

    provided, however, that in determining whether the Holders of the requisite principal amount of the Outstanding Securities have given any request, demand, authorization, direction, notice, consent or waiver hereunder, and for the purpose of making the calculations required by TIA Section 313:

    (i) the principal amount of an Original Issue Discount Security that may be counted in making such determination or calculation and that shall be deemed to be Outstanding for such purpose shall be equal to the amount of principal thereof that would be (or shall have been declared to be) due and payable, at the time of such determination, upon a declaration of acceleration of the maturity thereof pursuant to Section 5.2;

    (ii) the principal amount of any Indexed Security that may be counted in making such determination or calculation and that shall be deemed outstanding for such purpose shall be equal to the principal face amount of such Indexed Security at original issuance, unless otherwise provided with respect to such Security pursuant to Section 3.1; and

    (iii) Securities owned by the Company or any other obligor upon the Securities or any Affiliate of the Company or of such other obligor shall be disregarded and deemed not to be Outstanding,

    except that, in determining whether the Trustee shall be protected in making such calculation or in relying upon any such request, demand, authorization, direction, notice, consent or waiver, only Securities which a Responsible Officer of the Trustee actually knows to be so owned shall be so disregarded. Securities so owned which have been pledged in good faith may be regarded as Outstanding if the pledgee establishes to the satisfaction of the Trustee the pledgee's right so to act with respect to such Securities and that the pledgee is not the Company or any other obligor upon the Securities or any Affiliate of the Company or such other obligor.

    

    
        - 6 -

    

    (tt) "Paying Agent" means any Person (including the Company acting as Paying Agent) authorized by the Company to pay the principal of (or premium, if any) or interest, if any, on any Securities on behalf of the Company.

    (uu) "Payment Blockage Period" has the meaning specified in Section 15.3.

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

    (ww) "Place of Payment" means, when used with respect to the Securities of or within any series, the place or places where the principal of (and premium, if any) and interest, if any, on such Securities are payable as specified and as contemplated by or pursuant to Sections 3.1 and 10.2.

    (xx) "Redemption Date", when used with respect to any Security to be redeemed, in whole or in part, means the date fixed for such redemption by or pursuant to this Indenture.

    (yy) "Redemption Price", when used with respect to any Security to be redeemed, means the price at which it is to be redeemed pursuant to this Indenture.

    (zz) "Regular Record Date" for the interest payable on any Interest Payment Date on the Securities of or within any series means the date specified for that purpose as contemplated by Section 3.1.

    (aaa) "Repayment Date" means, when used with respect to any Security to be repaid at the option of the Holder, the date fixed for such repayment pursuant to this Indenture.

    (bbb) "Repayment Price" means, when used with respect to any Security to be repaid at the option of the Holder, the price at which it is to be repaid pursuant to this Indenture.

    (ccc) "Reset Notice" has the meaning specified in Section 3.7.

    (ddd) "Responsible Officer", when used with respect to the Trustee, means any vice president, officer or any other officer of the Trustee customarily performing functions similar to those performed by any of the above-designated officers, and also means, with respect to a particular corporate trust matter, any other officer to whom such matter is referred because of his knowledge of and familiarity with the particular subject and who shall have direct responsibility for the administration of this Indenture.

    (eee) "Security" or "Securities" has the meaning stated in the first recital of this Indenture and more particularly means Securities authenticated and delivered under this Indenture; provided, however, that if at any time there is more than one Person acting as Trustee under this Indenture, "Securities" with respect to the Indenture as to which such Person is Trustee shall have the meaning stated in the first recital of this Indenture and shall more particularly mean Securities authenticated and delivered under this Indenture, exclusive, however, of Securities of any series as to which such Person is not Trustee.

    (fff) "Securities Act" means the United States Securities Act of 1933, as amended.

    (ggg) "Security Register" and "Security Registrar" have the respective meanings specified in Section 3.5.

    (hhh) "Senior Indebtedness" means the principal of (and premium, if any) and unpaid interest on:

    (i) indebtedness of the Company (including indebtedness of others guaranteed by the Company), whether outstanding on the date hereof or thereafter created, incurred, assumed or guaranteed, for money borrowed, unless in the instrument creating or evidencing the same or pursuant to which the same is outstanding it is provided that such indebtedness is not senior or prior in right of payment to the Securities; and

    

    
        - 7 -

    

    (ii) renewals, extensions, modifications and refundings of any such indebtedness.

    (iii) "Special Record Date" for the payment of any Defaulted Interest on the Securities of or within any series means a date fixed by the Trustee pursuant to Section 3.7.

    (jjj) "Stated Maturity", when used with respect to any Security or any installment of principal thereof or interest thereon, means the date specified in such Security as the fixed date on which the principal of such Security or such installment of principal or interest is due and payable, as such date may be extended pursuant to the provisions of Section 3.8.

    (kkk) "Subsequent Interest Period" has the meaning specified in Section 3.7.

    (lll) "Subsidiary" means, with respect to any Person:

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

    (ii) any partnership:

    (A) the sole general partner or the managing general partner of which is such Person or a Subsidiary of such Person; or

    (B) the only general partners of which are such Person or of one or more Subsidiaries of such Person (or any combination thereof); or

    (iii) any other Person not described in clauses (i) and (ii) above in which such Person, or one more other Subsidiaries of such Person or such Person and one or more other Subsidiaries thereof, directly or indirectly, has a 50% ownership and the power, pursuant to a written contract or agreement, to direct the policies and management or the financial and other affairs thereof.

    (mmm) "Trust Indenture Act" or "TIA" means the Trust Indenture Act of 1939 as in force at the date as of which this Indenture was executed, except as provided in Section 9.5; provided, however, that in the event the Trust Indenture Act is amended after such date, "Trust Indenture Act" or "TIA" means, to the extent required by any such amendment, the Trust Indenture Act of 1939 as so amended.

    (nnn) "Trustee" means the Person named as the "Trustee" in the first paragraph of this Indenture until a successor Trustee shall have become such pursuant to the applicable provisions of this Indenture, and thereafter "Trustee" shall mean or include each Person who is then a Trustee hereunder; provided, however, that if at any time there is more than one such Person, "Trustee" as used with respect to the Securities of any series shall mean only the Trustee with respect to Securities of that series.

    (ooo) "United States" means, unless otherwise specified with respect to any Securities pursuant to Section 3.1, the United States of America (including the states and the District of Columbia), its territories, its possessions and other areas subject to its jurisdiction.

    (ppp) "United States person" means, unless otherwise specified with respect to any Securities pursuant to Section 3.1, an individual who is a citizen or resident of the United States, a corporation, partnership or other entity created or organized in or under the laws of the United States or an estate or trust the income of which is subject to United States federal income taxation regardless of its source.

    

    
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    (qqq) "Vice President", when used with respect to the Company or the Trustee, means any vice president, whether or not designated by a number or a word or words added before or after the title "vice president".

    (rrr) "Yield to Maturity" means the yield to maturity, computed at the time of issuance of a Security (or, if applicable, at the most recent redetermination of interest on such Security) and as set forth in such Security in accordance with generally accepted United States bond yield computation principles.

    1.2 Compliance Certificates and Opinions

    Upon any application or request by the Company to the Trustee to take any action under any provision of this Indenture, the Trustee may require an Officers' Certificate stating that all conditions precedent, if any, provided for in this Indenture (including any covenant compliance with which constitutes a condition precedent) relating to the proposed action have been complied with or an Opinion of Counsel stating that in the opinion of such counsel all such conditions precedent, if any, have been complied with, or both; provided, however, that in the case of any such application or request as to which the furnishing of such documents is specifically required by any provision of this Indenture relating to such particular application or request, no additional certificate or opinion need be furnished.

    Every certificate or opinion with respect to compliance with a covenant or condition provided for in this Indenture (other than pursuant to Section 10.4) shall include:

    (a) a statement that each individual signing such certificate or opinion has read such covenant or condition and the definitions herein relating thereto;

    (b) 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;

    (c) a statement that, in the opinion of each such individual, 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

    (d) a statement as to whether, in the opinion of each such individual, such covenant or condition has been complied with.

    1.3 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, or a certificate or representations by counsel, unless such Officer knows, or in the exercise of reasonable care should know, that the certificate or opinion or representations by counsel with respect to the matters upon which his certificate or opinion is based are erroneous. Any such Opinion of Counsel or certificate or representations 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 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 or opinion or representations with respect to such matters are erroneous.

    Any certificate or opinion of an Officer of the Company or of counsel may be based, insofar as it relates to accounting matters, upon a certificate or opinion of, or representations by, an accountant or firm of accountants in the employ of the Company, unless such Officer or counsel, as the case may be, knows, or in the exercise of reasonable care should know, that the certificate or opinion or representations with respect to the accounting matters upon which such certificate or opinion may be based are erroneous. Any certificate or opinion of any independent firm of chartered accountants filed with the Trustee shall contain a statement that such firm is independent.

    

    
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    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, they may, but need not, be consolidated and form one instrument.

    1.4 Acts of Holders

    (a) Any request, demand, authorization, direction, notice, consent, waiver or other action provided by this Indenture to be given or taken by Holders of the Outstanding Securities of all series or one or more series, as the case may be, may be embodied in and evidenced by one or more instruments of substantially similar tenor signed by such Holders in person or by agents duly appointed in writing. Except as herein otherwise expressly provided, such action shall become effective when such instrument or instruments or record or both are delivered to the Trustee and, where it is hereby expressly required, to the Company. Such instrument or instruments and any such record (and the action embodied therein and evidenced thereby) are herein sometimes referred to as the "Act" of the Holders signing such instrument or instruments or so voting at any such meeting. Proof of execution of any such instrument or of a writing appointing any such agent, or of the holding by any Person of a Security, shall be sufficient for any purpose of this Indenture and conclusive in favor of the Trustee and the Company, if made in the manner provided in this Section.

    (b) The fact and date of the execution by any Person of any such instrument or writing may be proved by the affidavit of a witness of such execution or by a certificate of a notary public or other officer authorized by law to take acknowledgments of deeds, certifying that the individual signing such instrument or writing acknowledged to him the execution thereof. Where such execution is by a signer acting in a capacity other than his individual capacity, such certificate or affidavit shall also constitute sufficient proof of authority. The fact and date of the execution of any such instrument or writing, or the authority of the Person executing the same, may also be proved in any other manner which the Trustee deems sufficient.

    (c) The principal amount and serial numbers of Securities held by any Person, and the date of holding the same, shall be proved by the Security Register.

    (d) If the Company shall solicit from the Holders of Securities any request, demand, authorization, direction, notice, consent, waiver or other Act, the Company may, at its option, by or pursuant to a Board Resolution, fix in advance a record date for the determination of Holders entitled to give such request, demand, authorization, direction, notice, consent, waiver or other Act, but the Company shall have no obligation to do so. Notwithstanding TIA Section 316(c), such record date shall be the record date specified in or pursuant to such Board Resolution, which shall be a date not earlier than the date 30 days prior to the first solicitation of Holders generally in connection therewith and not later than the date such solicitation is completed. If such a record date is fixed, such request, demand, authorization, direction, notice, consent, waiver or other Act may be given before or after such record date, but only the Holders of record at the close of business on such record date shall be deemed to be Holders for the purposes of determining whether Holders of the requisite proportion of Outstanding Securities have authorized or agreed or consented to such request, demand, authorization, direction, notice, consent, waiver or other Act, and for that purpose the Outstanding Securities shall be computed as of such record date; provided that no such authorization, agreement or consent by the Holders on such record date shall be deemed effective unless it shall become effective pursuant to the provisions of this Indenture not later than eleven months after the record date.

    (e) Any request, demand, authorization, direction, notice, consent, waiver or other Act of the Holder of any Security shall bind every future Holder of the same Security and the Holder of every Security issued upon the registration of transfer thereof or in exchange therefore or in lieu thereof in respect of anything done, omitted or suffered to be done by the Trustee, any Security Registrar, any Paying Agent, any Authenticating Agent or the Company in reliance thereon, whether or not notation of such action is made upon such Security.

    

    
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    1.5 Notices, etc. to Trustee and Company

    Any request, demand, authorization, direction, notice, consent, waiver or Act of Holders or other document provided or permitted by this Indenture to be made upon, given or furnished to, or filed with:

    (a) the Trustee by any Holder or by the Company shall be sufficient for every purpose hereunder if made, given, furnished or filed in writing to or with the Trustee at its Corporate Trust Office; or

    (b) the Company by the Trustee or by any Holder shall be sufficient for every purpose hereunder (unless otherwise herein expressly provided) if in writing and mailed, first-class postage prepaid, to the Company, Attention: Secretary, addressed to it at the address of its principal office specified in the first paragraph of this Indenture or at any other address previously furnished in writing to the Trustee by the Company.

    1.6 Notice to Holders; Waiver

    Where this Indenture provides for notice of any event to Holders of Securities by the Company or the Trustee, such notice shall be sufficiently given (unless otherwise herein expressly provided) if in writing and mailed, first-class postage prepaid, to each such Holder affected by such event, at his address as it appears in the Security Register, not later than the latest date, and not earlier than the earliest date, prescribed for the giving of such notice. In any case where notice to Holders of Securities is given by mail, neither the failure to mail such notice, nor any defect in any notice so mailed, to any particular Holder shall affect the sufficiency of such notice with respect to other Holders of Securities. Any notice mailed to a Holder in the manner herein prescribed shall be conclusively deemed to have been received by such Holder, whether or not such Holder actually receives such notice.

    In case, by reason of the suspension of or irregularities in regular mail service or by reason of any other cause, it shall be impractical to mail notice of any event to Holders of Securities when such notice is required to be given pursuant to any provision of this Indenture, then any manner of giving such notice as shall be satisfactory to the Trustee shall be deemed to be sufficient giving of such notice for every purpose hereunder.

    Any request, demand, authorization, direction, notice, consent or waiver required or permitted under this Indenture shall be in the English language, except that any published notice may be in an official language of the country of publication.

    Where this Indenture provides for notice in any manner, such notice may be waived in writing by the Person entitled to receive such notice, either before or after the event, and such waiver shall be the equivalent of such notice. Waivers of notice by Holders shall be filed with the Trustee, but such filing shall not be a condition precedent to the validity of any action taken in reliance upon such waiver.

    1.7 Effect of Headings and Table of Contents

    The Article and Section headings herein and the Table of Contents are for convenience only and shall not affect the construction hereof.

    1.8 Successors and Assigns

    All covenants and agreements in this Indenture by the Company shall bind its successors and assigns, whether so expressed or not.

    1.9 Separability Clause

    In case any provision in this Indenture or in any Security shall be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby.

    

    
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    1.10 Benefits of Indenture

    Nothing in this Indenture or in the Securities, express or implied, shall give to any Person, other than the parties hereto, any Authenticating Agent, any Paying Agent, any Securities Registrar and their successors hereunder and the Holders of Securities, any benefit or any legal or equitable right, remedy or claim under this Indenture.

    1.11 Governing Law

    This Indenture and the Securities shall be governed by and construed in accordance with the law of the State of Nevada. This Indenture is subject to the provisions of the Trust Indenture Act that are required to be part of this Indenture and shall, to the extent applicable, be governed by such provisions.

    1.12 Legal Holidays

    In any case where any Interest Payment Date, Redemption Date, Repayment Date, sinking fund payment date or Stated Maturity or Maturity of any Security shall not be a Business Day at any Place of Payment, then (notwithstanding any other provision of this Indenture or of any Security other than a provision in the Securities of any series which specifically states that such provision shall apply in lieu of this Section), payment of principal (or premium, if any) or interest, if any, need not be made at such Place of Payment on such date, but may be made on the next succeeding Business Day at such Place of Payment with the same force and effect as if made on the Interest Payment Date, Redemption Date, Repayment Date or sinking fund payment date, or at the Stated Maturity or Maturity; provided that no interest shall accrue for the period from and after such Interest Payment Date, Redemption Date, Repayment Date, sinking fund payment date, Stated Maturity or Maturity, as the case may be.

    1.13 Agent for Service; Submission to Jurisdiction; Waiver of Immunities

    By the execution and delivery of this Indenture, the Company:

    (a) acknowledges that it has irrevocably designated and appointed ♦ as its authorized agent upon which process may be served in any suit or proceeding arising out of or relating to the Securities or this Indenture that may be instituted in any United States federal or ♦ state court in ♦ or brought under federal or state securities laws or brought by the Trustee (whether in its individual capacity or in its capacity as Trustee hereunder);

    (b) submits to the non-exclusive jurisdiction of any such court in any such suit or proceeding; and

    (c) agrees that service of process upon ♦ and written notice of said service to the Company (mailed or delivered to the Company, Attention: Secretary, at its principal office specified in the first paragraph of this Indenture and in the manner specified in Section 1.5 hereof),

    shall be deemed in every respect effective service of process upon the Company in any such suit or proceeding. The Company further agrees to take any and all action, including the execution and filing of any and all such documents and instruments, as may be necessary to continue such designation and appointment of ♦ in full force and effect so long as any of the Securities shall be outstanding.

    1.14 Incorporators, Shareholders, Officers and Directors of the Company Exempt from Individual Liability

    No recourse under or upon any obligation, covenant or agreement contained in this Indenture, or in any Security, or because of any indebtedness evidenced thereby, shall be had against any incorporator, as such, or against any past, present or future shareholder, officer or director, as such, of the Company or of any successor, either directly or through the Company or any successor, under any rule of law, statute or constitutional provision or by the enforcement of any assessment or by any legal or equitable proceeding or otherwise, all such liability being expressly waived and released by the acceptance of the Securities by the Holders and as part of the consideration for the issue of the Securities.

    

    
        - 12 -

    

    1.15 Waiver of Jury Trial

    Each of the Company and the Trustee hereby irrevocably waives, to the fullest extent permitted by applicable law, any and all right to trial by jury in any legal proceeding arising out of or relating to this Indenture, the Securities or the transactions contemplated hereby.

    1.16 Conflict with Trust Indenture Act

    If and to the extent that any provision hereof limits, qualifies or conflicts with the duties imposed by any of Section 310 to 318, inclusive, of the Trust Indenture Act, through operation of Section 318(c) thereof, such imposed duties control.

    ARTICLE 2
SECURITY FORMS

    2.1 Forms Generally

    The Securities of each series shall be in substantially the forms as shall be established by or pursuant to a Board Resolution or in one or more indentures supplemental hereto, in each case with such appropriate insertions, omissions, substitutions and other variations as are required or permitted by this Indenture or any indenture supplemental hereto, and may have such letters, numbers or other marks of identification and such legends or endorsements placed 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 the rules of any securities exchange or as may, consistently herewith, be determined by the Officers executing such Securities, as evidenced by their execution of the Securities. If the forms of Securities of any series are established by action taken pursuant to a Board Resolution, a copy of an appropriate record of such action shall be certified by the Secretary or Assistant Secretary of the Company and delivered to the Trustee at or prior to the delivery of the Company Order contemplated by Section 3.3 for the authentication and delivery of such Securities. Any portion of the text of any Security may be set forth on the reverse thereof, with an appropriate reference thereto on the face of the Security.

    The Trustee's certificate of authentication on all Securities shall be in substantially the form set forth in this Article.

    The definitive Securities shall be printed, lithographed or engraved or produced by any combination of these methods on a steel-engraved border or steel-engraved borders or may be produced in any other manner, all as determined by the Officers executing such Securities, as evidenced by their execution of such Securities.

    2.2 Form of Trustee's Certificate of Authentication

    Subject to Section 6.11, the Trustee's certificate of authentication shall be in substantially the following form:

    TRUSTEE'S CERTIFICATE OF AUTHENTICATION

    Dated: _____________________

    This is one of the Securities of the series designated therein referred to in the within-mentioned Indenture.

    	 	 	 
	 	as Trustee	 
	 	 	 	 
	 	By:	 	 
	 	 	Authorized Officer	 
	 	 	 	 

     

    

    
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    2.3 Securities Issuable in Global Form

    If Securities of or within a series are issuable in global form, as specified as contemplated by Section 3.1, then, notwithstanding clause (h) of Section 3.1, any such Security shall represent such of the Outstanding Securities of such series as shall be specified therein and may provide that it shall represent the aggregate amount of Outstanding Securities of such series from time to time endorsed thereon and that the aggregate amount of Outstanding Securities of such series represented thereby may from time to time be increased or decreased to reflect exchanges. Any endorsement of a Security in global form to reflect the amount, or any increase or decrease in the amount, of Outstanding Securities represented thereby shall be made by the Trustee in such manner and upon instructions given by such Person or Persons as shall be specified therein or in the Company Order to be delivered to the Trustee pursuant to Section 3.3 or Section 3.4. Subject to the provisions of Section 3.3 and, if applicable, Section 3.4, the Trustee shall deliver and redeliver any Security in permanent global form in the manner and upon instructions given by the Person or Persons specified therein or in the applicable Company Order. If a Company Order pursuant to Section 3.3 or Section 3.4 has been, or simultaneously is, delivered, any instructions by the Company with respect to endorsement or delivery or redelivery of a Security in global form shall be in writing but need not comply with Section 1.2 and need not be accompanied by an Opinion of Counsel.

    The provisions of the last sentence of Section 3.3 shall apply to any Security represented by a Security in global form if such Security was never issued and sold by the Company and the Company delivers to the Trustee the Security in global form together with written instructions (which need not comply with Section 1.2 and need not be accompanied by an Opinion of Counsel) with regard to the reduction in the principal amount of Securities represented thereby, together with the written statement contemplated by the last sentence of Section 3.3.

    Notwithstanding the provisions of Section 3.7, unless otherwise specified as contemplated by Section 3.1, payment of principal of (and premium, if any) and interest, if any, on any Security in permanent global form shall be made to the Person or Persons specified therein.

    Notwithstanding the provisions of Section 3.9 and except as provided in the preceding paragraph, the Company, the Trustee and any agent of the Company and the Trustee shall treat as the Holder of such principal amount of Outstanding Securities represented by a permanent global Security the Holder of such permanent global Security.

    None of the Company, the Trustee, any Paying Agent or the Security Registrar will have any responsibility or liability for any aspect of the records relating to or payments made on account of beneficial ownership interests of a Global Security or for maintaining, supervising or reviewing any records relating to such beneficial ownership interests.

    ARTICLE 3
THE SECURITIES

    3.1 Amount Unlimited; Issuable in Series

    The aggregate principal amount of Securities which may be authenticated and delivered under this Indenture is unlimited. All Securities of any one series need not be issued at the same time and, unless otherwise provided, a series may be reopened, without the consent of the Holders, for issuances of additional Securities of such series. Securities shall be subordinated in right of payment to all Senior Indebtedness as provided in Article 15 hereof.

    The Securities may be issued in one or more series. There shall be established in one or more Board Resolutions or pursuant to authority granted by one or more Board Resolutions and, subject to Section 3.3, set forth in, or determined in the manner provided in, an Officers' Certificate, or established in one or more indentures supplemental hereto, prior to the issuance of Securities of any series, any or all of the following, as applicable (each of which (except for the matters set forth in clauses (a), (b) and (o) below), if so provided, may be determined from time to time by the Company with respect to unissued Securities of the series and set forth in such Securities of the series when issued from time to time):

    (a) the title of the Securities of the series (which shall distinguish the Securities of the series from all other series of Securities);

    

    
        - 14 -

    

    (b) any limit upon the aggregate principal amount of the Securities of the series that may be authenticated and delivered under this Indenture (except for Securities authenticated and delivered upon registration of transfer of, or in exchange for, or in lieu of, other Securities of the series pursuant to Section 3.4, 3.5, 3.6, 9.6, 11.7 or 13.5);

    (c) the date or dates, or the method by which such date or dates shall be determined or extended, on which the principal of the Securities of the series is payable;

    (d) the rate or rates (whether fixed or variable) at which the Securities of the series shall bear interest, if any, or the method by which such rate or rates shall be determined, the date or dates from which such interest shall accrue, or the method by which such date or dates shall be determined, the Interest Payment Dates on which such interest shall be payable and the Regular Record Date for the interest payable on any Security on any Interest Payment Date, or the method by which such date or dates shall be determined, and the basis upon which interest shall be calculated if other than on the basis of a 360-day year of twelve 30-day months;

    (e) the place or places, if any, other than or in addition to The City of ♦, where the principal of (and premium, if any) and interest, if any, on Securities of the series shall be payable, where any Securities of the series may be surrendered for registration of transfer, where Securities of the series may be surrendered for exchange, where Securities of the series that are convertible or exchangeable may be surrendered for conversion or exchange, as applicable, and, if different than the location specified in Section 1.5, the place or places where notices or demands to or upon the Company in respect of the Securities of the series and this Indenture may be served and the extent to which, or the manner in which, any interest payment or Additional Amounts on a global Security on an Interest Payment Date shall be paid;

    (f) the period or periods within which, the price or prices at which, and other terms and conditions upon which Securities of the series may be redeemed, in whole or in part, at the option of the Company, if the Company is to have that option;

    (g) the right, if any, to extend the interest payment periods and the duration of such extension;

    (h) the obligation, if any, of the Company to redeem, repay or purchase Securities of the series pursuant to any sinking fund or analogous provision or at the option of a Holder thereof, and the period or periods within which, the price or prices at which, and other terms and conditions upon which Securities of the series shall be redeemed, repaid or purchased, in whole or in part, pursuant to such obligation;

    (i) if other than denominations of $1,000 and any integral multiple thereof, the denomination or denominations in which any Securities of the series shall be issuable;

    (j) if other than the Trustee, the identity of each Security Registrar and/or Paying Agent;

    (k) if other than the principal amount thereof, the portion of the principal amount of Securities of the series that shall be payable upon declaration of acceleration of the Maturity thereof pursuant to Section 5.2 or the method by which such portion shall be determined;

    (l) whether the amount of payments of principal of (or premium, if any) or interest, if any, on the Securities of the series may be determined with reference to an index, formula or other method (which index, formula or method may be based, without limitation, on one or more Currencies, commodities, equity indices or other indices), and the manner in which such amounts shall be determined;

    (m) the applicability, if any, of Sections 14.2 and/or 14.3 to the Securities of the series and any provisions in modification of, in addition to or in lieu of any of the provisions of Article 14 that shall be applicable to the Securities of the series;

    

    
        - 15 -

    

    (n) provisions, if any, granting special rights to the Holders of Securities of the series upon the occurrence of such events as may be specified;

    (o) any deletions from, modifications of or additions to the Events of Default or covenants (including any deletions from, modifications of or additions to Section 10.7) of the Company with respect to Securities of the series, whether or not such Events of Default or covenants are consistent with the Events of Default or covenants set forth herein;

    (p) whether the Securities of the series shall be issued in whole or in part in permanent global form and, in such case, the Depositary for such Securities if other than DTC; the manner in which and the circumstances under which interests in any such permanent global Security may be exchanged for Securities in definitive form, if other than, or in addition to, the manner and circumstances specified in Section 3.4;

    (q) the Person to whom any interest on any Security of the series shall be payable, if other than the Person in whose name that Security (or one or more Predecessor Securities) is registered at the close of business on the Regular Record Date for such interest and the extent to which, or the manner in which, any interest payable on a temporary global Security on an Interest Payment Date shall be paid if other than in the manner provided in Section 3.4;

    (r) if Securities of the series are to be issuable in definitive form (whether upon original issue or upon exchange of a temporary Security of such series) only upon receipt of certain certificates or other documents or satisfaction of other conditions, the form and/or terms of such certificates, documents or conditions;

    (s) if the Securities of the series are to be issued upon the exercise of warrants, the time, manner and place for such Securities to be authenticated and delivered;

    (t) whether and under what circumstances the Company shall pay Additional Amounts as contemplated by Section 10.5 on the Securities of the series to any Holder who is not a United States person (including any modification to the definition of such term) in respect of any tax, assessment or governmental charge and, if so, whether the Company shall have the option to redeem such Securities rather than pay such Additional Amounts (and the terms of any such option);

    (u) the percentage or percentages of principal amount of which the Securities of the series shall be issued;

    (v) if the Securities of the series are to be convertible into or exercisable, redeemable or exchangeable for any securities of any Person (including the Company), the terms and conditions upon which such Securities shall be so convertible or exchangeable, including whether conversion, exercise, redemption or exchange is mandatory, at the option of the Holder or at the Company's option, the date on or the period during which conversion, exercise, redemption or exchange may occur, the initial conversion, exercise, redemption or exchange price or rate and the circumstances or manner in which the amount of common shares or preference shares or other securities issuable upon conversion, exercise, redemption or exchange may be adjusted;

    (w) if the Securities of the series are subject to mandatory or optional remarketing or other mandatory or optional resale provisions, and, if applicable, the date or period during which such resale may occur, any conditions to such resale and any right of a Holder to substitute securities for the Securities subject to resale; and

    (x) any other terms, conditions, rights and preferences (or limitations on such rights and preferences) relating to the series (which terms shall not be inconsistent with the requirements of the Trust Indenture Act or the provisions of this Indenture).

    All Securities of any one series shall be substantially identical except as to denomination and except as may otherwise be provided in or pursuant to such Board Resolution (subject to Section 3.3) and set forth in such Officers' Certificate or in any such indenture supplemental hereto. Not all Securities of any one series need be issued at the same time, and, unless otherwise provided, a series may be reopened for issuances of additional Securities of such series.

    

    
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    If any of the terms of the series are established by action taken pursuant to one or more Board Resolutions, such Board Resolutions shall be delivered to the Trustee at or prior to the delivery of the Officers' Certificate setting forth the terms of the series.

    3.2 Denominations

    The Securities of each series shall be issuable in registered form without coupons in such denominations as shall be specified as contemplated by or pursuant to Section 3.1. With respect to Securities of any series denominated in Dollars, in the absence of any such provisions, the Securities of such series, other than Securities issued in global form (which may be of any denomination), shall be issuable in denominations of $1,000 and any integral multiple thereof.

    3.3 Execution, Authentication, Delivery and Dating

    The Securities shall be executed on behalf of the Company by any Officer. The signature of any Officer on the Securities may be the manual or facsimile signatures of the present or any future such authorized Officer and may be imprinted or otherwise reproduced on the Securities.

    Securities bearing the manual or facsimile signatures of individuals who were at any time the proper Officers of the Company shall bind the Company, notwithstanding that such individuals or any of them have ceased to hold such offices prior to the authentication and delivery of such Securities or did not hold such offices at the date of such Securities.

    At any time and from time to time after the execution and delivery of this Indenture, the Company may deliver Securities of any series, executed by the Company to the Trustee for authentication, together with a Company Order for the authentication and delivery of such Securities, and the Trustee in accordance with such Company Order shall authenticate and deliver such Securities. If not all of the Securities of any series are to be issued at one time and if the Board Resolution or supplemental indenture establishing such series shall so permit, such Company Order may set forth procedures acceptable to the Trustee for the issuance of such Securities and determining the terms of particular Securities of such series such as interest rate, stated maturity, date of issuance and date from which interest shall accrue.

    In authenticating such Securities, and accepting the additional responsibilities under this Indenture in relation to such Securities, the Trustee shall be entitled to receive, and (subject to TIA Sections 315(a) through 315(d)) shall be fully protected in relying upon, an Opinion of Counsel stating:

    (a) that the form or forms of such Securities have been established in conformity with the provisions of this Indenture;

    (b) that the terms of such Securities have been established in conformity with the provisions of this Indenture;

    (c) that such Securities when completed by appropriate insertions and executed and delivered by the Company to the Trustee for authentication in accordance with this Indenture, authenticated and delivered by the Trustee in accordance with this Indenture and issued by the Company in the manner and subject to any conditions specified in such Opinion of Counsel, shall constitute legal, valid and binding obligations of the Company, enforceable in accordance with their terms, subject to applicable bankruptcy, insolvency, reorganization and other similar laws of general applicability relating to or affecting the enforcement of creditors' rights, to general equitable principles and to such other qualifications as such counsel shall conclude do not materially affect the rights of Holders of such Securities;

    (d) that the Company has the corporate power to issue such Securities, and has duly taken all necessary corporate action with respect to such issuance; and

    

    
        - 17 -

    

    (e) that the issuance of such Securities shall not contravene the articles of incorporation or by-laws of the Company or result in any violation of any of the terms or provisions of any law or regulation.

    Notwithstanding the provisions of Section 3.1 and of the preceding two paragraphs, if not all the Securities of any series are to be issued at one time, it shall not be necessary to deliver the Officers' Certificate otherwise required pursuant to Section 3.1 or the Company Order and Opinion of Counsel otherwise required pursuant to the preceding two paragraphs prior to or at the time of issuance of each Security, but such documents shall be delivered prior to or at the time of issuance of the first Security of such series.

    The Trustee shall not be required to authenticate and deliver any such Securities if the issue of such Securities pursuant to this Indenture shall affect the Trustee's own rights, duties or immunities under the Securities and this Indenture or otherwise in a manner which is not reasonably acceptable to the Trustee.

    Each Security shall be dated the date of its authentication.

    No Security shall be entitled to any benefit under this Indenture or be valid or obligatory for any purpose unless there appears on such Security a certificate of authentication substantially in the form provided for herein duly executed by the Trustee by manual signature of an authorized officer, and such certificate upon any Security shall be conclusive evidence, and the only evidence, that such Security has been duly authenticated and delivered hereunder and is entitled to the benefits of this Indenture. Notwithstanding the foregoing, if any Security shall have been authenticated and delivered hereunder but never issued and sold by the Company, and the Company shall deliver such Security to the Trustee for cancellation as provided in Section 3.10 together with a written statement (which need not comply with Section 1.2 and need not be accompanied by an Opinion of Counsel) stating that such Security has never been issued and sold by the Company, for all purposes of this Indenture such Security shall be deemed never to have been authenticated and delivered hereunder and shall never be entitled to the benefits of this Indenture.

    3.4 Temporary Securities

    Pending the preparation of definitive Securities of any series the Company may execute and the Trustee shall authenticate and deliver temporary Securities (printed or lithographed). Temporary Securities shall be issuable in any authorized denomination and substantially in the form of the definitive Securities but with such omissions, insertions and variations as may be appropriate for temporary Securities, all as may be determined by the Company. Every such temporary Security shall be executed by the Company and shall be authenticated by the Trustee upon the same conditions and in substantially the same manner, and with the same effect, as the definitive Securities. Without unreasonable delay the Company will execute and deliver to the Trustee definitive Securities of such series and thereupon any or all temporary Securities of such series may be surrendered in exchange therefor, at the Corporate Trust Office of the Trustee, and the Trustee shall authenticate and deliver in exchange for such temporary Securities an equal aggregate principal amount of definitive Securities. Such exchange shall be made by the Company at its own expense and without any charge therefor except that in case of any such exchange involving any registration of transfer the Company may require payment of a sum sufficient to cover any tax or other governmental charge that may be imposed in relation thereto. Until so exchanged, the temporary Securities shall in all respects be entitled to the same benefits under this Indenture as definitive Securities authenticated and delivered hereunder.

    Notwithstanding any other provision of this Section or Section 3.5, unless and until it is exchanged in whole or in part for Securities in definitive form, a global Security representing all or a portion of the Securities of a series may not be transferred except as a whole by the Depositary for such series to a nominee of such depositary or by a nominee of such depositary to such depositary or another nominee of such depositary or by such depositary or any such nominee to a successor Depositary for such series or a nominee of such successor depositary.

    If at any time the Depositary for the Securities of a series notifies the Company that it is unwilling or unable to continue as Depositary for the Securities of such series or if at any time the Depositary for Securities of a series shall no longer be a clearing agency registered and in good standing under the Exchange Act, or other applicable statute or regulation, the Company shall appoint a successor Depositary with respect to the Securities of such series. If a successor Depositary for the Securities of such series is not appointed by the Company within 90 days after the Company receives such notice or becomes aware of such condition, the Company will execute, and the Trustee, upon receipt of a Company Order for the authentication and delivery of definitive Securities of such series, will authenticate and deliver, Securities of such series in definitive form in an aggregate principal amount equal to the principal amount of the global Security or Securities representing such series in exchange for such global Security or Securities.

    

    
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    If specified by the Company pursuant to Section 3.1 with respect to Securities of a series, the Depositary for such series of Securities may surrender a global Security for such series of Securities in exchange in whole or in part for Securities of such series in definitive form on such terms as are acceptable to the Company and such depositary. Thereupon, the Company shall execute and the Trustee shall authenticate and deliver, without charge:

    (a) to each Person specified by the Depositary a new Security or Securities of the same series, of any authorized denomination as requested by such Person in an aggregate principal amount equal to and in exchange for such Person's beneficial interest in the global Security; and

    (b) to the Depositary a new global Security in a denomination equal to the difference, if any, between the principal amount of the surrendered global Security and the aggregate principal amount of Securities delivered to Holders thereof.

    3.5 Registration, Registration of Transfer and Exchange

    The Company shall cause to be kept at the Corporate Trust Office of the Trustee or in any office or agency of the Company in a Place of Payment a register for each series of Securities (the registers maintained in such Corporate Trust Office of the Trustee or in any other office or agency of the Company in a Place of Payment being herein sometimes collectively referred to as the "Security Register") in which, subject to such reasonable regulations as it may prescribe, the Company shall provide for the registration and transfer of Securities. The Security Register shall be in written form or any other form capable of being converted into written form within a reasonable time. At all reasonable times, the Security Register shall be open to inspection by the Trustee. The Trustee is hereby initially appointed as security registrar (the "Security Registrar") for the purpose of registering Securities and transfers of Securities as herein provided. The Company shall have the right to remove and replace from time to time the Security Registrar for any series of Securities; provided that, no such removal or replacement shall be effective until a successor Security Registrar with respect to such series of Securities shall have been appointed by the Company and shall have accepted such appointment by the Company. In the event that the Trustee shall not be or shall cease to be the Security Registrar with respect to a series of Securities, it shall have the right to examine the Security Register for such series at all reasonable times. There shall be only one Security Register for each series of Securities.

    Upon surrender for registration of transfer of any Security of any series at any office or agency of the Company in a Place of Payment for that series, the Company shall execute, and the Trustee shall authenticate and deliver, in the name of the designated transferee, one or more new Securities of the same series, of any authorized denominations and of a like aggregate principal amount and tenor.

    At the option of the Holder, Securities of any series may be exchanged for other replacement Securities of the same series, of any authorized denomination and of a like aggregate principal amount and tenor, upon surrender of the Securities to be exchanged at such office or agency. Whenever any Securities are so surrendered for exchange, the Company shall execute, and the Trustee shall authenticate and deliver, the Securities which the Holder making the exchange is entitled to receive.

    Whenever any Securities are so surrendered for exchange, the Company shall execute, and the Trustee shall authenticate and deliver, the Securities which the Holder making the exchange is entitled to receive.

    If the Company shall establish pursuant to Section 3.1 that the Securities of a series are to be issued in whole or in part in the form of one or more global Securities, then the Company shall execute and the Trustee shall, in accordance with Section 3.3 and the Company Order with respect to such series, authenticate and deliver one or more global Securities in temporary or permanent form that:

    (a) shall represent and shall be denominated in an amount equal to the aggregate principal amount of the Outstanding Securities of such series to be represented by one or more global Securities;

    (b) shall be registered in the name of the Depositary for such global Security or Securities or the nominee of such depositary; and

    

    
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    (c) shall bear a legend substantially to the following effect:

    "This Security may not be transferred except as a whole by the Depositary to a nominee of the Depositary or by a nominee of the Depositary to the Depositary or another nominee of the Depositary or by the Depositary or any such nominee to a successor Depositary or a nominee of such successor Depositary, unless and until this Security is exchanged in whole or in part for Securities in definitive form"

    and such other legend as may be required by the Depositary.

    The Company may at any time and in its sole discretion determine that the Securities of any series issued in the form of one or more global Securities shall no longer be represented by such global Security or Securities. In such event the Company shall execute, and the Trustee, upon receipt of a Company Order for the authentication and delivery of definitive Securities of such series, shall authenticate and deliver Securities of such series in definitive registered form, in authorized denominations, and in an aggregate principal amount equal to the principal amount of the global Security or Securities representing such series in exchange for such global Security or Securities.

    Upon the exchange of a global Security for Securities in definitive registered form, such global Security shall be cancelled by the Trustee. Securities issued in exchange for a global Security pursuant to this Section shall be registered in such names and in such authorized denominations as the depositary for such global Security, pursuant to instructions from its direct or indirect participants or otherwise, shall instruct the Trustee in writing. The Trustee shall deliver such Securities to the persons in whose names such Securities are so registered.

    All Securities issued upon any registration of transfer or exchange of Securities shall be valid obligations of the Company, evidencing the same debt, and entitled to the same benefits under this Indenture, as the Securities surrendered upon such registration of transfer or exchange.

    Every Security presented or surrendered for registration of transfer or for exchange shall (if so required by the Company or the Security Registrar) be duly endorsed, or be accompanied by a written instrument of transfer, in form satisfactory to the Company and the Security Registrar, duly executed by the Holder thereof or his attorney duly authorized in writing.

    No service charge shall be made for any registration of transfer or exchange of Securities, but the Company may require payment of a sum sufficient to cover any tax or other governmental charge that may be imposed in connection with any registration of transfer or exchange of Securities.

    The Company shall not be required:

    (a) to issue, register the transfer of or exchange Securities of any series during a period beginning at the opening of business 15 days before the day of the selection for redemption of Securities of that series under Section 11.3 or 12.3 and ending at the close of business on the day of the mailing of the relevant notice of redemption; or

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

    (c) to issue, register the transfer of or exchange any Security which has been surrendered for repayment at the option of the Holder, except the portion, if any, of such Security not to be so repaid.

    3.6 Mutilated, Destroyed, Lost and Stolen Securities

    If any mutilated Security is surrendered to the Trustee or the Company, together with, in proper cases, such security or indemnity as may be required by the Company or the Trustee to save each of them or any agent of either of them harmless, the Company shall execute and the Trustee shall authenticate and deliver in exchange therefor a replacement Security of the same series and of like tenor and principal amount and bearing a number not contemporaneously outstanding.

    

    
        - 20 -

    

    If there shall be delivered to the Company and to the Trustee:

    (a) evidence to their satisfaction of the destruction, loss or theft of any Security; and

    (b) such security or indemnity as may be required by them to save each of them and any agent of either of them harmless,

    then, in the absence of notice to the Company or the Trustee that such Security has been acquired by a protected purchaser (as defined in Article 8 of the Uniform Commercial Code), the Company shall execute and upon Company Order the Trustee shall authenticate and deliver, in lieu of any such destroyed, lost or stolen Security, a replacement Security of the same series and of like tenor and principal amount and bearing a number not contemporaneously outstanding.

    Notwithstanding the provisions of the previous two paragraphs, in case any such mutilated, destroyed, lost or stolen Security has become or is about to become due and payable, the Company in its discretion may, instead of issuing a new Security, pay such Security.

    Upon the issuance of any replacement Security under this Section, 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.

    Every replacement Security of any series issued pursuant to this Section in lieu of any mutilated, destroyed, lost or stolen Security, shall constitute an original additional contractual obligation of the Company, whether or not the mutilated, destroyed, lost or stolen Security, if any, shall be at any time enforceable by anyone, and shall be entitled to all the benefits of this Indenture equally and proportionately with any and all other Securities of that series duly issued hereunder.

    The provisions of this Section, as amended or supplemented pursuant to this Indenture with respect to particular Securities or generally, are exclusive and shall preclude (to the extent lawful) all other rights and remedies with respect to the replacement or payment of mutilated, destroyed, lost or stolen Securities.

    3.7 Payment of Principal and Interest; Interest Rights Preserved; Optional Interest Reset

    (a) Unless otherwise provided as contemplated by Section 3.1 with respect to any series of Securities, interest, if any, on any Security which is payable, and is punctually paid or duly provided for, on any Interest Payment Date shall be paid to the Person in whose name such Security (or one or more Predecessor Securities) is registered at the close of business on the Regular Record Date for such interest at the office or agency of the Company maintained for such purpose pursuant to Section 10.2; provided, however, that each installment of the principal of (and premium, if any) and interest, if any, on any Security may at the Company's option be paid by:

    (i) mailing a check for such interest, payable to or upon the written order of the Person entitled thereto pursuant to Section 3.9, to the address of such Person as it appears on the Security Register; or

    (ii) wire transfer to an account of the person entitled to receive such payment if such person is a Holder of $10,000,000 or more in aggregate principal amount of the Securities of such series (with wire transfer instructions provided to the Trustee not less than 15 days prior to payment of interest by wire transfer);

    provided further, that principal paid in relation to any Security redeemed at the option of the Company pursuant to Article 11, or paid at Maturity, shall be paid to the holder of such Security only upon presentation and surrender of such Security to such office or agency referred to in this Section 3.7(a).

    (b) Unless otherwise provided as contemplated by Section 3.1, any interest on any Security of any series which is payable, but is not punctually paid or duly provided for, on any Interest Payment Date shall forthwith cease to be payable to the Holder on the relevant Regular Record Date by virtue of having been such Holder, and such defaulted interest and, if applicable, interest on such defaulted interest (to the extent lawful) at the rate specified in the Securities of such series (such defaulted interest and, if applicable, interest thereon herein collectively called "Defaulted Interest") may be paid by the Company, at its election in each case, as provided in clause (i) or (ii) below:

    

    
        - 21 -

    

    (i) The Company may elect to make payment of any Defaulted Interest to the Persons in whose names the Securities of such series (or their respective Predecessor Securities) 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 Security of such series and the date of the proposed payment, and at the same time the Company shall deposit with the Trustee an amount of money in the Currency in which the Securities of such series are payable 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 on or 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 be not more than 15 days and not 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 given in the manner provided in Section 1.6, 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 therefore having been so given, such Defaulted Interest shall be paid to the Persons in whose name the Securities of such series (or their respective Predecessor Securities) are registered at the close of business on such Special Record Date and shall no longer be payable pursuant to the following clause (ii).

    (ii) The Company may make payment of any Defaulted Interest on the Securities of any series in any other lawful manner not inconsistent with the requirements of any securities exchange on which such Securities 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.

    (c) The provisions of this Section 3.7(c) may be made applicable to any series of Securities pursuant to Section 3.1 (with such modifications, additions or substitutions as may be specified pursuant to such Section 3.1). The interest rate (or the spread or spread multiplier used to calculate such interest rate, if applicable) on any Security of such series may be reset by the Company on the date or dates specified on the face of such Security (each an "Optional Reset Date"). The Company may exercise such option with respect to such Security by notifying the Trustee of such exercise at least 50 but not more than 60 days prior to an Optional Reset Date for such Security. Not later than 40 days prior to each Optional Reset Date, the Trustee shall transmit, in the manner provided for in Section 1.6, to the Holder of any such Security a notice (the "Reset Notice") indicating whether the Company has elected to reset the interest rate (or the spread or spread multiplier used to calculate such interest rate, if applicable), and if so:

    (i) such new interest rate (or such new spread or spread multiplier, if applicable); and

    (ii) the provisions, if any, for redemption during the period from such Optional Reset Date to the next Optional Reset Date or if there is no such next Optional Reset Date, to the Stated Maturity Date of such Security,

    (each such period a "Subsequent Interest Period"), including the date or dates on which or the period or periods during which and the price or prices at which such redemption may occur during the Subsequent Interest Period.

    

    
        - 22 -

    

    Notwithstanding the foregoing, not later than 20 days prior to the Optional Reset Date, the Company may, at its option, revoke the interest rate (or the spread or spread multiplier used to calculate such interest rate, if applicable) provided for in the Reset Notice and establish an interest rate (or a spread or spread multiplier used to calculate such interest rate, if applicable) that is higher than the interest rate (or the spread or spread multiplier, if applicable) provided for in the Reset Notice, for the Subsequent Interest Period by causing the Trustee to transmit, in the manner provided for in Section 1.6, notice of such higher interest rate (or such higher spread or spread multiplier, if applicable) to the Holder of such Security. Such notice shall be irrevocable. All Securities with respect to which the interest rate (or the spread or spread multiplier used to calculate such interest rate, if applicable) is reset on an Optional Reset Date, and with respect to which the Holders of such Securities have not tendered such Securities for repayment (or have validly revoked any such tender) pursuant to the next succeeding paragraph, shall bear such higher interest rate (or such higher spread or spread multiplier, if applicable).

    The Holder of any such Security shall have the option to elect repayment by the Company of the principal of such Security on each Optional Reset Date at a price equal to the principal amount thereof plus interest accrued to such Optional Reset Date. In order to obtain repayment on an Optional Reset Date, the Holder must follow the procedures set forth in Article 13 for repayment at the option of Holders except that the period for delivery or notification to the Trustee shall be at least 25 but not more than 35 days prior to such Optional Reset Date and except that, if the Holder has tendered any Security for repayment pursuant to the Reset Notice, the Holder may, by written notice to the Trustee, revoke such tender or repayment until the close of business on the tenth day before such Optional Reset Date.

    Subject to the foregoing provisions of this Section and Section 3.5, each Security delivered under this Indenture upon registration of transfer of or in exchange for or in lieu of any other Security shall carry the rights to interest accrued and unpaid, and to accrue, which were carried by such other Security.

    3.8 Optional Extension of Stated Maturity

    The provisions of this Section 3.8 may be made applicable to any series of Securities pursuant to Section 3.1 (with such modifications, additions or substitutions as may be specified pursuant to such Section 3.1). The Stated Maturity of any Security of such series may be extended at the option of the Company for the period or periods specified on the face of such Security (each an "Extension Period") up to but not beyond the date (the "Final Maturity") set forth on the face of such Security. The Company may exercise such option with respect to any Security by notifying the Trustee of such exercise at least 50 but not more than 60 days prior to the Stated Maturity of such Security in effect prior to the exercise of such option (the "Original Stated Maturity"). If the Company exercises such option, the Trustee shall transmit, in the manner provided for in Section 1.6, to the Holder of such Security not later than 40 days prior to the Original Stated Maturity a notice (the "Extension Notice") indicating:

    (a) the election of the Company to extend the Stated Maturity;

    (b) the new Stated Maturity;

    (c) the interest rate, if any, applicable to the Extension Period; and

    (d) the provisions, if any, for redemption during such Extension Period.

    Upon the Trustee's transmittal of the Extension Notice, the Stated Maturity of such Security shall be extended automatically and, except as modified by the Extension Notice and as described in the next paragraph, such Security shall have the same terms as prior to the transmittal of such Extension Notice.

    Notwithstanding the foregoing, not later than 20 days before the Original Stated Maturity of such Security, the Company may, at its option, revoke the interest rate provided for in the Extension Notice and establish a higher interest rate for the Extension Period by causing the Trustee to transmit, in the manner provided for in Section 1.6, notice of such higher interest rate to the Holder of such Security. Such notice shall be irrevocable. All Securities with respect to which the Stated Maturity is extended shall bear such higher interest rate.

    If the Company extends the Maturity of any Security, the Holder shall have the option to elect repayment of such Security by the Company on the Original Stated Maturity at a price equal to the principal amount thereof, plus interest accrued to such date. In order to obtain repayment on the Original Stated Maturity once the Company has extended the Maturity thereof, the Holder must follow the procedures set forth in Article 13 for repayment at the option of Holders, except that the period for delivery or notification to the Trustee shall be at least 25 but not more than 35 days prior to the Original Stated Maturity and except that, if the Holder has tendered any Security for repayment pursuant to an Extension Notice, the Holder may by written notice to the Trustee revoke such tender for repayment until the close of business on the tenth day before the Original Stated Maturity.

    

    
        - 23 -

    

    3.9 Persons Deemed Owners

    Prior to due presentment of a Security 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 Security is registered as the owner of such Security for the purpose of receiving payment of principal of (and premium, if any) and (subject to Sections 3.5 and 3.7) interest, if any, on such Security and for all other purposes whatsoever (other than the payment of Additional Amounts, if any), whether or not such Security be overdue, and none of the Company, the Trustee or any agent of the Company or the Trustee shall be affected by notice to the contrary.

    The Depositary for Securities may be treated by the Company, the Trustee, and any agent of the Company or the Trustee as the owner of such global Security for all purposes whatsoever (other than the payment of Additional Amounts, if any). None of the Company, the Trustee, any Paying Agent or the Security Registrar shall have any responsibility or liability for any aspect of the records relating to or payments made on account of beneficial ownership interests of a Security in global form or for maintaining, supervising or reviewing any records relating to such beneficial ownership interests.

    Notwithstanding the foregoing, with respect to any global Security, nothing herein shall prevent the Company, the Trustee, or any agent of the Company or the Trustee, from giving effect to any written certification, proxy or other authorization furnished by any depositary, as a Holder, with respect to such global Security or impair, as between such depositary and owners of beneficial interests in such global Security, the operation of customary practices governing the exercise of the rights of such depositary (or its nominee) as Holder of such global Security.

    3.10 Cancellation

    All Securities surrendered for payment, redemption, repayment at the option of the Holder, registration of transfer or exchange or for credit against any current or future sinking fund payment shall, if surrendered to any Person other than the Trustee, be delivered to the Trustee. All Securities so delivered to the Trustee shall be promptly cancelled by it. The Company may at any time deliver to the Trustee for cancellation any Securities previously authenticated and delivered hereunder which the Company may have acquired in any manner whatsoever, and may deliver to the Trustee (or to any other Person for delivery to the Trustee) for cancellation any Securities previously authenticated hereunder which the Company has not issued and sold, and all Securities so delivered shall be promptly cancelled by the Trustee. If the Company shall so acquire any of the Securities, however, such acquisition shall not operate as a redemption or satisfaction of the indebtedness represented by such Securities unless and until the same are surrendered to the Trustee for cancellation. No Securities shall be authenticated in lieu of or in exchange for any Securities cancelled as provided in this Section, except as expressly permitted by this Indenture. All cancelled Securities held by the Trustee shall be disposed of by the Trustee in accordance with its customary procedures and certification of their disposal delivered to the Company unless by Company Order the Company shall direct that cancelled Securities be returned to it.

    3.11 Computation of Interest 

    Except as otherwise specified as contemplated by Section 3.1 with respect to any Securities, interest, if any, on the Securities of each series shall be computed on the basis of a 360-day year of twelve 30-day months.

    3.12 CUSIP Numbers

    The Company in issuing the Securities may use "CUSIP" numbers (if then generally in use), and, if so, the Trustee shall indicate the "CUSIP" numbers of the Securities in notices of redemption as a convenience to Holders; provided that any such notice may state that no representation is made as to the correctness of such numbers either as printed on the Securities or as contained in any notice of redemption and that reliance may be placed only on the other identification numbers printed on the Securities, and any such redemption shall not be affected by any defect in or omission of such numbers. The Company shall promptly notify the Trustee of any change in "CUSIP" numbers.

    

    
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    ARTICLE 4
SATISFACTION AND DISCHARGE

    4.1 Satisfaction and Discharge of Indenture

    Unless otherwise provided as contemplated by Section 3.1 with respect to any series of Securities, this Indenture shall upon Company Request cease to be of further effect with respect to any series of Securities specified in such Company Request (except as to any surviving rights of registration of transfer or exchange of Securities of such series expressly provided for herein or pursuant hereto and any right to receive Additional Amounts as contemplated by Section 10.5) and the Trustee, at the expense of the Company, shall execute proper instruments acknowledging satisfaction and discharge of this Indenture as to such series when:

    (a) either:

    (i) all Securities of such series theretofore authenticated and delivered (other than:

    (A) Securities of such series which have been destroyed, lost or stolen and which have been replaced or paid as provided in Section 3.6; and

    (B) Securities of such series for whose payment money has theretofore been deposited in trust with the Trustee or any Paying Agent or segregated and held in trust by the Company and thereafter repaid to the Company or discharged from such trust, as provided in Section 10.3),

    have been delivered to the Trustee for cancellation; or

    (ii) all Securities of such series not theretofore delivered to the Trustee for cancellation:

    (A) have become due and payable; or

    (B) shall become due and payable at their Stated Maturity within one year; or

    (C) if redeemable at the option of the Company, are to be called for redemption within one year under arrangements satisfactory to the Trustee for the giving of notice of redemption by the Trustee in the name, and at the expense, of the Company,

    and the Company, in the case of (A), (B) or (C) above, has irrevocably deposited or caused to be deposited with the Trustee as trust funds in trust for such purpose an amount in the Currency in which the Securities of such series are payable, sufficient to pay and discharge the entire indebtedness on such Securities not theretofore delivered to the Trustee for cancellation, for principal (and premium, if any) and interest, if any, to the date of such deposit (in the case of Securities which have become due and payable) or to the Stated Maturity or Redemption Date, as the case may be;

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

    (c) the Company has delivered to the Trustee an Officers' Certificate and an Opinion of Counsel, each stating that all conditions precedent herein provided for relating to the satisfaction and discharge of this Indenture as to such series have been complied with.

    Notwithstanding the satisfaction and discharge of this Indenture, the obligations of the Company to the Trustee under Section 6.6, the obligations of the Trustee to any Authenticating Agent under Section 6.11 and, if money shall have been deposited with the Trustee pursuant to sub-clause 4.1(a)(ii) of this Section, the obligations of the Trustee under Section 4.2 and the last paragraph of Section 10.3 shall survive such satisfaction and discharge.

    

    
        - 25 -

    

    4.2 Application of Trust Money

    Subject to the provisions of the last paragraph of Section 10.3, all money deposited with the Trustee pursuant to Section 4.1 shall be held in trust and applied by it, in accordance with the provisions of the Securities and this Indenture, to the payment, either directly or through any Paying Agent (including the Company acting as its own Paying Agent) as the Trustee may determine, to the Persons entitled thereto, of the principal (and premium, if any) and interest, if any, for whose payment such money has been deposited with the Trustee; but such money need not be segregated from other funds except to the extent required by law.

    ARTICLE 5
REMEDIES

    5.1 Events of Default

    "Event of Default", wherever used herein with respect to Securities of any series, means any one of the following events (whatever the reason for such Event of Default, whether or not it shall be occasioned by the provisions of Article 15, 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), unless such event is specifically deleted or modified in or pursuant to a supplemental indenture, Board Resolution or Officers' Certificate establishing the terms of such series pursuant to Section 3.1 of this Indenture:

    (a) default in the payment of any interest on any Security of that series when such interest becomes due and payable, and continuance of such default for a period specified in the applicable supplemental indenture, Board Resolution or Officers' Certificate establishing the terms of such series pursuant to Section 3.1 of this Indenture; or

    (b) default in the payment of the principal of (or premium, if any, on) any Security of that series at its Maturity, upon redemption, by declaration or otherwise; provided, however, that a valid extension of the maturity of such Securities in accordance with the terms of any indenture supplemental hereto shall not constitute a default in the payment of principal or premium, if any; or

    (c) default in the deposit of any sinking fund payment, when and as due by the terms of the Securities of that series and Article 12; or

    (d) default in the performance, or breach, of any covenant or agreement of the Company in this Indenture which affects or is applicable to the Securities of that series (other than a default in the performance, or breach, of a covenant or agreement which is specifically dealt with elsewhere in this Section or which has expressly been included in this Indenture solely for the benefit of one or more series of Securities other than that series), and continuance of such default or breach for a period specified in the applicable supplemental indenture, Board Resolution or Officers' Certificate establishing the terms of such series pursuant to Section 3.1 of this Indenture after there has been given, by registered or certified mail, to the Company by the Trustee or to the Company and the Trustee by the Holders of at least 25% in principal amount of all Outstanding Securities of that series a written notice specifying such default or breach and requiring it to be remedied and stating that such notice is a "Notice of Default" hereunder; or

    (e) the entry of a decree or order by a court having jurisdiction in the premises adjudging the Company a bankrupt or insolvent, or approving as properly filed a petition seeking reorganization, arrangement, adjustment or composition of or in respect of the Company under or subject to the Bankruptcy and Insolvency Act (Canada), the Companies' Creditors Arrangement Act (Canada), the U.S. Federal Bankruptcy Code or any other applicable federal, provincial, state or foreign bankruptcy, insolvency or analogous laws, or the issuance of a sequestration order or the appointment of a receiver, liquidator, assignee, trustee, sequestrator (or other similar official) of the Company or in receipt of any substantial part of the property of the Company, and any such decree, order or appointment continues unstayed and in effect for a period of 90 consecutive days; or

    

    
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    (f) the institution by the Company of proceedings to be adjudicated a bankrupt or insolvent, or the consent by it to the institution of bankruptcy or insolvency proceedings against it, or the filing by it of a petition or answer or consent seeking reorganization or relief under or subject to the Bankruptcy and Insolvency Act (Canada), the Companies' Creditors Arrangement Act (Canada), the U.S. Federal Bankruptcy Code or any other applicable federal, provincial, state or foreign bankruptcy, insolvency or analogous laws, or the consent by it to the filing of any such petition or to the appointment of a receiver, liquidator, assignee, trustee, sequestrator (or other similar official) of the Company or of any substantial part of its property, or the making by it of a general assignment for the benefit of creditors, or the admission by it in writing of its inability to pay its debts generally as they become due; or

    	 	(g)	(i)	there shall have occurred a default by the Company in the payment of the principal of (or premium, if any) Debt in an amount to be specified in the applicable supplemental indenture, Board Resolution or Officers' Certificate establishing the terms of such series pursuant to Section 3.1 of this Indenture or more outstanding under or evidenced by any single indenture or instrument, when the same becomes due and payable at the stated maturity thereof, and such default shall have continued after any applicable grace period and shall not have been cured or waived; or
	 	 	 	 
	 	 	(ii)	Debt of the Company in an amount to be specified in the applicable supplemental indenture, Board Resolution or Officers' Certificate establishing the terms of such series pursuant to Section 3.1 of this Indenture or more outstanding under or evidenced by any single indenture or instrument shall have been accelerated or otherwise declared due and payable, or required to be prepaid or repurchased (other than by regularly scheduled required prepayment), prior to the stated maturity thereof; or

    (h) any other Event of Default provided with respect to Securities of that series.

    5.2 Acceleration of Maturity; Rescission and Annulment

    If an Event of Default described in clause (a), (b), (c), (d), (g) or (h) of Section 5.1 with respect to Securities of any series at the time Outstanding occurs and is continuing, then in every such case the Trustee or the Holders of not less than 25% in principal amount of the Outstanding Securities of that series may declare the principal amount (or, if the Securities of that series are Original Issue Discount Securities or Indexed Securities, such portion of the principal amount as may be specified in the terms of that series) of all of the Securities of that series to be due and payable immediately, by a notice in writing to the Company (and to the Trustee if given by Holders), and upon any such declaration such principal amount (or specified portion thereof) shall become immediately due and payable. If an Event of Default described in clause (e) or (f) of Section 5.1 occurs, the principal amount (or if any Securities are Original Issue Discount Securities or Indexed Securities, such portion of the principal amount as may be specified in the terms thereof) of all Outstanding Securities shall be due and payable immediately, without any declaration or other act on the part of the Trustee or the Holders.

    At any time after a declaration of acceleration with respect to Securities of any series (or of all series, as the case may be) has been made and before a judgment or decree for payment of the money due has been obtained by the Trustee as hereinafter provided in this Article, the Holders of a majority in principal amount of the Outstanding Securities of that series (or of all series, as the case may be), by written notice to the Company and the Trustee, may rescind and annul such declaration and its consequences if:

    (a) the Company has paid or deposited with the Trustee a sum sufficient to pay in the Currency in which the Securities of such series are payable:

    (i) all overdue interest, if any, on all Outstanding Securities of that series (or of all series, as the case may be);

    (ii) all unpaid principal of (and premium, if any) any Outstanding Securities of that series (or of all series, as the case may be) which has become due otherwise than by such declaration of acceleration, and interest on such unpaid principal at the rate or rates prescribed therefor in such Securities;

    

    
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    (iii) to the extent that payment of such interest is lawful, interest on overdue interest, if any, at the rate or rates prescribed therefor in such Securities; and

    (iv) all sums paid or advanced by the Trustee hereunder and the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and counsel; and

    (b) all Events of Default with respect to Securities of that series (or of all series, as the case may be), other than the non-payment of amounts of principal of (or premium, if any, on) or interest on Securities of that series (or of all series, as the case may be) which have become due solely by such declaration of acceleration, have been cured or waived as provided in Section 5.13.

    No such rescission shall affect any subsequent default or impair any right consequent thereon.

    Notwithstanding the preceding paragraph, in the event of a declaration of acceleration in respect of the Securities because of an Event of Default specified in Section 5.1(g) shall have occurred and be continuing, such declaration of acceleration shall be automatically annulled if the Debt that is the subject of such Event of Default has been discharged or the holders thereof have rescinded their declaration of acceleration in respect of such Debt, and written notice of such discharge or rescission, as the case may be, shall have been given to the Trustee by the Company and countersigned by the holders of such Debt or a trustee, fiduciary or agent for such holders, within 30 days after such declaration of acceleration in respect of the Securities, and no other Event of Default has occurred during such 30 day period which has not been cured or waived during such period.

    5.3 Collection of Debt and Suits for Enforcement by Trustee

    The Company covenants that if:

    (a) default is made in the payment of any installment of interest on any Security when such interest becomes due and payable and such default continues for a period of 30 days; or

    (b) default is made in the payment of the principal of (or premium, if any, on) any Security at the Maturity thereof, then the Company shall, upon demand of the Trustee, pay to the Trustee for the benefit of the Holders of such Securities, the whole amount then due and payable on such Securities for principal (and premium, if any) and interest, if any, and interest on any overdue principal (and premium, if any) and, to the extent that payment of such interest shall be legally enforceable, on any overdue interest, at the rate or rates prescribed therefor in such Securities, and, in addition thereto, such further amount as shall be sufficient to cover the costs and expenses of collection, including the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and counsel.

    If the Company fails to pay such amounts forthwith upon such demand, the Trustee, in its own name as trustee of an express trust, may institute a judicial proceeding for the collection of the sums so due and unpaid, may prosecute such proceeding to judgment or final decree and may enforce the same against the Company or any other obligor upon such Securities and collect the moneys adjudged or decreed to be payable in the manner provided by law out of the property of the Company or any other obligor upon such Securities, wherever situated.

    If an Event of Default with respect to Securities of any series (or of all series, as the case may be) occurs and is continuing, the Trustee may in its discretion proceed to protect and enforce its rights and the rights of the Holders of Securities of such series (or of all series, as the case may be) by such appropriate judicial proceedings as the Trustee shall deem most effectual to protect and enforce any such rights, whether for the specific enforcement of any covenant or agreement in this Indenture or in aid of the exercise of any power granted herein, or to enforce any other proper remedy.

    5.4 Trustee May File Proofs of Claim

    In case of the pendency of any receivership, insolvency, liquidation, bankruptcy, reorganization, arrangement, adjustment, composition or other judicial proceeding relative to the Company or any other obligor upon the Securities or the property of the Company or of such other obligor or their creditors, the Trustee (irrespective of whether the principal of the Securities shall then be due and payable as therein expressed or by declaration or otherwise and irrespective of whether the Trustee shall have made any demand on the Company for the payment of overdue principal, premium, if any, or interest) shall be entitled and empowered, by intervention in such proceeding or otherwise:

    

    
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    (a) to file a proof of claim for the whole amount of principal (and premium, if any), or such portion of the principal amount of any series of Original Issue Discount Securities or Indexed Securities as may be specified in the terms of such series, and interest, if any, owing and unpaid in respect of the Securities and to file such other papers or documents as may be necessary or advisable in order to have the claims of the Trustee (including any claim for the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and counsel) and of the Holders allowed in such judicial proceeding; and

    (b) to collect and receive any moneys or other property payable or deliverable on any such claims and to distribute the same,

    and any custodian, receiver, assignee, trustee, liquidator, sequestrator or other similar official in any such judicial proceeding is hereby authorized by each Holder to make such payments to the Trustee and, in the event that the Trustee shall consent to the making of such payments directly to the Holders, to pay to the Trustee any amount due it for the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and counsel, and any other amounts due the Trustee under Section 6.6.

    Nothing herein contained shall be deemed to authorize the Trustee to authorize or consent to or accept or adopt on behalf of any Holder any plan of reorganization, arrangement, adjustment or composition affecting the Securities or the rights of any Holder thereof or to authorize the Trustee to vote in respect of the claim of any Holder in any such proceeding.

    5.5 Trustee May Enforce Claims Without Possession of Securities

    All rights of action and claims under this Indenture or the Securities may be prosecuted and enforced by the Trustee without the possession of any of the Securities or the production thereof in any proceeding relating thereto, and any such 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 the payment of the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and counsel, be for the ratable benefit of the Holders of the Securities in respect of which such judgment has been recovered.

    5.6 Application of Money Collected

    Any money collected by the Trustee pursuant to this Article shall be applied in the following order, at the date or dates fixed by the Trustee and, in case of the distribution of such money on account of principal (or premium, if any) or interest, if any, upon presentation of the Securities, or both, as the case may be, and the notation thereon of the payment if only partially paid and upon surrender thereof if fully paid:

    (a) First: To the payment of all amounts due the Trustee under Section 6.6;

    (b) Second: Subject to Section 15.2, to the payment of the amounts then due and unpaid for principal of (and premium, if any) and interest, if any, on the Securities 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 Securities for principal (and premium, if any) and interest, if any, respectively; and

    (c) Third: The balance, if any, to the Company or any other Person or Persons entitled thereto.

    5.7 Limitation on Suits

    No Holder of any Security of any series shall have any right to institute any proceeding, judicial or otherwise, with respect to this Indenture, or the Securities of any series, or for the appointment of a receiver or trustee, or for any other remedy hereunder, unless:

    

    
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    (a) such Holder has previously given written notice to the Trustee of a continuing Event of Default with respect to the Securities of that series;

    (b) the Holders of not less than 25% in principal amount of the Outstanding Securities of that series in the case of any Event of Default described in clause (a), (b), (c), (d), (g) or (h) of Section 5.1, or, in the case of any Event of Default described in clause (e) or (f) of Section 5.1, the Holders of not less than 25% in principal amount of all Outstanding Securities, shall have made written request to the Trustee to institute proceedings in respect of such Event of Default in its own name as Trustee hereunder;

    (c) such Holder or Holders have offered to the Trustee reasonable indemnity satisfactory to the Trustee against the costs, expenses and liabilities to be incurred in compliance with such request;

    (d) the Trustee for 60 days after its receipt of such notice, request and offer of indemnity has failed to institute any such proceeding; and

    (e) no direction inconsistent with such written request has been given to the Trustee during such 60-day period by the Holders of a majority or more in principal amount of the Outstanding Securities of that series in the case of any Event of Default described in clause (a), (b), (c), (d), (g) or (h) of Section 5.1, or, in the case of any Event of Default described in clause (e) or (f) of Section 5.1, by the Holders of a majority or more in principal amount of all Outstanding Securities;

    it being understood and intended that no one or more of such Holders shall have any right in any manner whatever by virtue of, or by availing of, any provision of this Indenture to affect, disturb or prejudice the rights of any other Holders of Securities of the same series, in the case of any Event of Default, described in clause (a), (b), (c), (d), (g) or (h) of Section 5.1, or of Holders of all Securities in the case of any Event of Default described in clause (e) or (f) of Section 5.1, or to obtain or to seek to obtain priority or preference over any other of such Holders or to enforce any right under this Indenture, except in the manner herein provided and for the equal and ratable benefit of all Holders of Securities of the same series, in the case of any Event of Default described in clause (a), (b), (c), (d), (g) or (h) of Section 5.1, or, in the case of any Event of Default described in clause (e) or (f) of Section 5.1.

    5.8 Unconditional Right of Holders to Receive Principal, Premium and Interest

    Notwithstanding any other provision in this Indenture, the Holder of any Security shall have the right, which is absolute and unconditional, to receive payment, as provided herein (including, if applicable, Article 14) and in such Security, of the principal of (and premium, if any) and (subject to Section 3.7) interest, if any, on, such Security on the Stated Maturity expressed in such Security or, in the case of redemption, on the Redemption Date) and to institute suit for the enforcement of any such payment, and such rights shall not be impaired without the consent of such Holder.

    5.9 Restoration of Rights and Remedies

    If the Trustee or any Holder has instituted any proceeding to enforce any right or remedy under this Indenture and such proceeding has been discontinued or abandoned for any reason, or has been determined adversely to the Trustee or to such Holder, then and in every such case, subject to any determination in such proceeding, the Company, the Trustee and the Holders of Securities shall be restored severally and respectively to their former positions hereunder and thereafter all rights and remedies of the Trustee and the Holders shall continue as though no such proceeding had been instituted.

    5.10 Rights and Remedies Cumulative

    Except as otherwise provided with respect to the replacement or payment of mutilated, destroyed, lost or stolen Securities in the last paragraph of Section 3.6, no right or remedy herein conferred upon or reserved to the Trustee or to the Holders of Securities is intended to be exclusive of any other right or remedy, and every right and remedy shall, to the extent permitted by law, be cumulative and in addition to every other right and remedy given hereunder or now or hereafter existing at law or in equity or otherwise. The assertion or employment of any right or remedy hereunder, or otherwise, shall not prevent the concurrent assertion or employment of any other appropriate right or remedy.

    

    
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    5.11 Delay or Omission Not Waiver

    No delay or omission of the Trustee or of any Holder of any Security to exercise any right or remedy accruing upon any Event of Default shall impair any such right or remedy or constitute a waiver of any such Event of Default or an acquiescence therein. Every right and remedy given by this Article or by law to the Trustee or to the Holders may be exercised from time to time, and as often as may be deemed expedient, by the Trustee or by the Holders, as the case may be.

    5.12 Control by Holders

    With respect to the Securities of any series, the Holders of not less than a majority in principal amount of the Outstanding Securities of such series 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, relating to or arising under clause (a), (b), (c), (d), (g) or (h) of Section 5.1, and, with respect to all Securities, the Holders of not less than a majority in principal amount of all Outstanding Securities 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, not relating to or arising under clause (a), (b), (c), (d), (g) or (h) of Section 5.1, provided that in each case:

    (a) such direction shall not be in conflict with any rule of law or with this Indenture;

    (b) the Trustee may take any other action deemed proper by the Trustee which is not inconsistent with such direction; and

    (c) the Trustee need not take any action which might expose the Trustee to personal liability or be unjustly prejudicial to the Holders of Securities of such series not consenting.

    5.13 Waiver of Past Defaults

    Subject to Section 5.2, the Holders of not less than a majority in principal amount of the Outstanding Securities of any series may on behalf of the Holders of all the Securities of such series waive any past default described in clause (a), (b), (c), (d), (g) or (h) of Section 5.1 (or in the case of a default described in clause (e) or (f) of Section 5.1, the Holders of not less than a majority in principal amount of all Outstanding Securities may waive any such past default), and its consequences, except a default:

    (a) in respect of the payment of the principal of (or premium, if any) or interest, if any, on any Security; or

    (b) in respect of a covenant or provision hereof which under Article 9 cannot be modified or amended without the consent of the Holder of each Outstanding Security of such series affected.

    Upon any such waiver, any such default shall cease to exist, and any Event of Default arising therefrom shall be deemed to have been cured, for every purpose of this Indenture; but no such waiver shall extend to any subsequent or other default or Event of Default or impair any right consequent thereon.

    5.14 Waiver of Stay or Extension Laws

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

    

    
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    5.15 Undertaking for Costs

    In any suit for the enforcement of any right or remedy under this Indenture, or in any suit against the Trustee for any action taken, suffered or omitted by it as Trustee, a court may require any party litigant in such suit to file an undertaking to pay the costs of such suit, and may assess costs against any such party litigant, in the manner and to the extent provided in the Trust Indenture Act; provided, that neither this Section nor the Trust Indenture Act shall be deemed to authorize any court to require such an undertaking or to make such an assessment in any suit instituted by the Company.

    ARTICLE 6
THE TRUSTEE

    6.1 Notice of Defaults

    Within 90 days after the occurrence of any Default hereunder with respect to the Securities of any series, the Trustee shall transmit in the manner and to the extent provided in TIA Section 313(c), notice of such Default hereunder known to the Trustee, unless such Default shall have been cured or waived; provided, however, that, except in the case of a Default in the payment of the principal of (or premium, if any) or interest, if any, on any Security of such series or in the payment of any sinking fund installment with respect to Securities of such series, the Trustee shall be protected in withholding such notice if and so long as the board of directors, the executive committee or a trust committee of directors and/or Responsible Officers of the Trustee in good faith determine that the withholding of such notice is in the interest of the Holders of Securities of such series; and provided further that in the case of any Default of the character specified in Section 5.1(d) with respect to Securities of such series, no such notice to Holders shall be given until at least 30 days after the occurrence thereof.

    6.2 Certain Rights of Trustee

    Subject to the provisions of TIA Sections 315(a) through 315(d):

    (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, direction, consent, order, bond, debenture, note, coupon, other evidence of indebtedness or other paper or document believed by it to be genuine and to have been signed or presented by the proper party or parties;

    (b) any request or direction of the Company mentioned herein shall be sufficiently evidenced by a Company Request or Company Order (other than delivery of any Security, to the Trustee for authentication and delivery pursuant to Section 3.3 which shall be sufficiently evidenced as provided therein) and any resolution of the Board of Directors may be sufficiently evidenced by a Board Resolution;

    (c) whenever in the administration of this Indenture the Trustee shall deem it desirable that a matter be proved or established prior to taking, suffering or omitting any action hereunder, the Trustee (unless other evidence be herein specifically prescribed) may, in the absence of bad faith on its part, rely upon a Board Resolution, an Opinion of Counsel or an Officers' Certificate;

    (d) the Trustee may consult with counsel and the advice of such counsel or any Opinion of Counsel shall be full and complete authorization and protection in respect of any action taken, suffered or omitted by it hereunder in good faith and in reliance thereon;

    (e) the Trustee shall be under no obligation to exercise any of the rights or powers vested in it by this Indenture at the request or direction of any of the Holders of Securities of any series pursuant to this Indenture, unless such Holders shall have offered to the Trustee reasonable security or indemnity satisfactory to the Trustee against the costs, expenses and liabilities which might be incurred by it in compliance with such request or direction;

    (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, direction, consent, order, bond, debenture, note, other evidence of indebtedness or other paper or document, but the Trustee, in its discretion, may make such further inquiry or investigation into such facts or matters as it may see fit, and, if the Trustee shall determine to make such further inquiry or investigation, it shall be entitled to examine the books, records and premises of the Company, personally or by agent or attorney;

    

    
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    (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;

    (h) the Trustee shall not be liable for any action taken, suffered or omitted 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; and

    (i) the Trustee shall not be charged with knowledge of any Default or Event of Default with respect to the Securities of any series unless either:

    (i) such Default or Event of Default is known, or ought reasonably to have been known, by a Responsible Officer of the Trustee; or

    (ii) written notice of such Default or Event of Default shall have been given to the Trustee by the Company or any other obligor on the Securities of any series or by any Holder of the Securities of any series.

    The Trustee shall not be required to expend or risk its own funds or otherwise incur any financial liability 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 adequate indemnity against such risk or liability is not reasonably assured to it.

    6.3 Trustee Not Responsible for Recitals or Issuance of Securities

    The recitals contained herein and in the Securities, except for the Trustee's certificates of authentication, shall be taken as the statements of the Company, and neither the Trustee nor any Authenticating Agent assumes any responsibility for their correctness. The Trustee makes no representations as to the validity or sufficiency of this Indenture or of the Securities, except that the Trustee represents that it is duly authorized to execute and deliver this Indenture, authenticate the Securities and perform its obligations hereunder and that the statements made by it in a Statement of Eligibility on Form T-1 supplied to the Company are true and accurate, subject to the qualifications set forth therein. Neither the Trustee nor any Authenticating Agent shall be accountable for the use or application by the Company of Securities or the proceeds thereof.

    6.4 May Hold Securities

    The Trustee, any Authenticating Agent, any Paying Agent, any Security Registrar or any other agent of the Company or of the Trustee, in its individual or any other capacity, may become the owner or pledgee of Securities and, subject to Sections 310(b) and 311 of the Trust Indenture Act, may otherwise deal with the Company with the same rights it would have if it were not Trustee, Authenticating Agent, Paying Agent, Security Registrar or such other agent. A Trustee that has resigned or was removed shall remain subject to Section 311(a) of the Trust Indenture Act.

    6.5 Money Held in Trust

    Money held by the Trustee in trust hereunder 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 money received by it hereunder except as otherwise agreed with the Company.

    6.6 Compensation and Reimbursement

    The Company agrees:

    

    
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    (a) to pay to the Trustee from time to time reasonable compensation for all services rendered by it hereunder as the Company and the Trustee shall from time to time agree in writing (which compensation shall not be limited by any provision of law in regard to the compensation of a trustee of an express trust);

    (b) except as otherwise expressly provided herein, to reimburse the Trustee upon its request for all reasonable expenses, disbursements and advances incurred or made by the Trustee in accordance with any provision of this Indenture (including the reasonable compensation and the expenses, advances and disbursements of its agents and counsel), except any such expense, disbursement or advance as may be attributable to its negligence or bad faith; and

    (c) to indemnify the Trustee for, and to hold it harmless against, any loss, liability or expense incurred without negligence or bad faith on its part, arising out of or in connection with the acceptance or administration of the trust or trusts hereunder, including the costs and expenses of defending itself against any claim or liability in connection with the exercise or performance of any of its powers or duties hereunder.

    The obligations of the Company under this Section to compensate the Trustee, to pay or reimburse the Trustee for expenses, disbursements and advances and to indemnify and hold harmless the Trustee shall constitute additional indebtedness hereunder and shall survive the satisfaction and discharge of this Indenture. As security for the performance of such obligations of the Company, the Trustee shall have a claim prior to the Securities upon all property and funds held or collected by the Trustee as such, except funds held in trust for the payment of principal of (or premium, if any) or interest, if any, on particular Securities.

    When the Trustee incurs expenses or renders services in connection with an Event of Default specified in clause (e) or (f) of Section 5.1, the expenses (including reasonable charges and expense of its counsel) of and the compensation for such services are intended to constitute expenses of administration under any applicable U.S. or Canadian federal, state or provincial bankruptcy, insolvency or other similar law.

    The provisions of this Section shall survive the termination of this Indenture and the resignation or removal of the Trustee.

    6.7 Corporate Trustee Required; Eligibility; Conflicting Interests

    (a) There shall be at all times a Trustee hereunder which shall be eligible to act as Trustee under TIA Section 310(a)(1) and shall have a combined capital and surplus (together with that of its parent, if applicable) of at least $50,000,000. If such corporation publishes reports of condition at least annually, pursuant to law or to the requirements of federal, state, territorial or District of Columbia 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. If at any time the Trustee shall cease to be eligible in accordance with the provisions of this Section, it shall resign immediately in the manner and with the effect hereinafter specified in this Article.

    (b) The following indenture shall be deemed to be specifically described herein for the purposes of clause (i) of the first proviso contained in TIA Section 310(b): Senior Debt Securities Indenture dated as of ♦, between the Company and the trustee named therein.

    6.8 Resignation and Removal; Appointment of Successor

    (a) No resignation or removal of the Trustee and no appointment of a successor Trustee pursuant to this Article shall become effective until the acceptance of appointment by the successor Trustee in accordance with the applicable requirements of Section 6.9.

    (b) The Trustee may resign at any time with respect to the Securities of one or more series by giving written notice thereof to the Company. If the instrument of acceptance by a successor Trustee required by Section 6.9 shall not have been delivered to the Trustee within 30 days after the giving of such notice of resignation, the resigning Trustee may petition any court of competent jurisdiction for the appointment of a successor Trustee with respect to the Securities of such series.

    

    
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    (c) The Trustee may be removed at any time with respect to the Securities of any series by Act of the Holders of not less than a majority in principal amount of the Outstanding Securities of such series, delivered to the Trustee and to the Company. If the instrument of acceptance by a successor Trustee required by Section 6.9 shall not have been delivered to the Trustee within 30 days after the delivery of an Act of removal, the Trustee being removed may petition any court of competent jurisdiction for the appointment of a successor Trustee with respect to the Securities of such series.

    (d) If at any time:

    (i) the Trustee shall fail to comply with the provisions of TIA Section 310(b) after written request therefor by the Company or by any Holder who has been a bona fide Holder of a Security for at least six months, or

    (ii) the Trustee shall cease to be eligible under Section 6.7(a) and shall fail to resign after written request therefor by the Company or by any Holder who has been a bona fide Holder of a Security for at least six months, or

    (iii) the Trustee shall become incapable of acting or shall be adjudged a bankrupt or insolvent or a receiver of the Trustee or of its property shall be appointed 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:

    (i) the Company, by or pursuant to a Board Resolution, may remove the Trustee and appoint a successor Trustee with respect to all Securities or the Securities of such series; or

    (ii) subject to TIA Section 315(e), any Holder who has been a bona fide Holder of a Security for at least six months may, on behalf of himself and all others similarly situated, petition any court of competent jurisdiction for the removal of the Trustee with respect to all Securities of such series and the appointment of a successor Trustee or Trustees.

    (e) If the Trustee shall resign, be removed or become incapable of acting, or if a vacancy shall occur in the office of Trustee for any cause, with respect to the Securities of one or more series, the Company, by or pursuant to a Board Resolution, shall promptly appoint a successor Trustee or Trustees with respect to the Securities of that or those series (it being understood that any such successor Trustee may be appointed with respect to the Securities of one or more or all of such series and that at any time there shall be only one Trustee with respect to the Securities of any particular series). If, within one year after such resignation, removal or incapability, or the occurrence of such vacancy, a successor Trustee with respect to the Securities of any series shall be appointed by Act of the Holders of a majority in principal amount of the Outstanding Securities of such series delivered to the Company and the retiring Trustee, the successor Trustee so appointed shall, forthwith upon its acceptance of such appointment, become the successor Trustee with respect to the Securities of such series and to that extent supersede the successor Trustee appointed by the Company. If no successor Trustee with respect to the Securities of any series shall have been so appointed by the Company or the Holders and accepted appointment in the manner hereinafter provided, any Holder who has been a bona fide Holder of a Security of such series for at least six months may, on behalf of himself and all others similarly situated, petition any court of competent jurisdiction for the appointment of a successor Trustee with respect to the Securities of such series.

    (f) The Company shall give notice of each resignation and each removal of the Trustee with respect to the Securities of any series and each appointment of a successor Trustee with respect to the Securities of any series to the Holders of Securities of such series in the manner provided for in Section 1.6. Each notice shall include the name of the successor Trustee with respect to the Securities of such series and the address of its Corporate Trust Office.

    

    
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    6.9 Acceptance of Appointment by Successor

    (a) In case of the appointment hereunder of a successor Trustee with respect to all Securities, 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.

    (b) In case of the appointment hereunder of a successor Trustee with respect to the Securities of one or more (but not all) series, the Company, the retiring Trustee and each successor Trustee with respect to the Securities of one or more series shall execute and deliver an indenture supplemental hereto wherein each successor Trustee shall accept such appointment and which:

    (i) shall contain such provisions as shall be necessary or desirable to transfer and confirm to, and to vest in, each successor Trustee all the rights, powers, trusts and duties of the retiring Trustee with respect to the Securities of that or those series to which the appointment of such successor Trustee relates;

    (ii) if the retiring Trustee is not retiring with respect to all Securities, shall contain such provisions as shall be deemed necessary or desirable to confirm that all the rights, powers, trusts and duties of the retiring Trustee with respect to the Securities of that or those series as to which the retiring Trustee is not retiring shall continue to be vested in the retiring Trustee; and

    (iii) shall 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,

    it being understood that nothing herein or in such supplemental indenture shall constitute such Trustees co-trustees of the same trust and that each such Trustee shall be trustee of a trust or trusts hereunder separate and apart from any trust or trusts hereunder administered by any other such Trustee; and upon the execution and delivery of such supplemental indenture the resignation or removal of the retiring Trustee shall become effective to the extent provided therein and each 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 with respect to the Securities of that or those series to which the appointment of such successor Trustee relates; but, on request of the Company or any successor Trustee, such retiring Trustee shall duly assign, transfer and deliver to such successor Trustee all property and money held by such retiring Trustee hereunder with respect to the Securities of that or those series to which the appointment of such successor Trustee relates. Whenever there is a successor Trustee with respect to one or more (but less than all) series of securities issued pursuant to this Indenture, the terms "Indenture" and "Securities" shall have the meanings specified in the provisos to the respective definitions of those terms in Section 1.1 which contemplate such situation.

    (c) 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 rights, powers and trusts referred to in paragraph (a) or (b) of this Section, as the case may be.

    (d) 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.

    

    
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    6.10 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 all or substantially all of the corporate trust business of the Trustee, shall be the successor of the Trustee hereunder, provided such corporation shall be otherwise qualified and eligible under this Article, without the execution or filing of any paper or any further act on the part of any of the parties hereto. In case any Securities 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 Securities so authenticated with the same effect as if such successor Trustee had itself authenticated such Securities. In case any of the Securities shall not have been authenticated by such predecessor Trustee, any successor Trustee may authenticate such Securities either in the name of any predecessor hereunder or in the name of the successor Trustee. In all such cases such certificates shall have the full force and effect which this Indenture provides for the certificate of authentication of the Trustee; provided, however, that the right to adopt the certificate of authentication of any predecessor Trustee or to authenticate Securities in the name of any predecessor Trustee shall apply only to its successor or successors by merger, conversion or consolidation.

    6.11 Appointment of Authenticating Agent

    At any time when any of the Securities remain Outstanding, the Trustee may appoint an Authenticating Agent or Authenticating Agents with respect to one or more series of Securities which shall be authorized to act on behalf of the Trustee to authenticate Securities of such series and the Trustee shall give written notice of such appointment to all Holders of Securities of the series with respect to which such Authenticating Agent shall serve, in the manner provided for in Section 1.6. Securities 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 hereunder. Any such appointment shall be evidenced by an instrument in writing signed by a Responsible Officer of the Trustee, and a copy of such instrument shall be promptly furnished to the Company. Wherever reference is made in this Indenture to the authentication and delivery of Securities by the Trustee or the Trustee's certificate of authentication, such reference shall be deemed to include authentication and delivery on behalf of the Trustee by an Authenticating Agent and a certificate of authentication executed on behalf of the Trustee by an Authenticating Agent. Each Authenticating Agent shall be acceptable to the Company and shall at all times be a corporation organized and doing business under the laws of the ♦, authorized under such laws to act as Authenticating Agent, having a combined capital and surplus of not less than $50,000,000 and subject to supervision or examination by federal or state authority. If such corporation publishes reports of condition at least annually, pursuant to law or to the requirements of said 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. If at any time an Authenticating Agent shall cease to be eligible in accordance with the provisions of this Section, it shall resign immediately in the manner and with the effect specified in this Section.

    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 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.

    An Authenticating Agent may resign at any time by giving written notice thereof to the Trustee and to the Company. The Trustee may at any time terminate the agency of an Authenticating Agent by giving written notice thereof to such Authenticating Agent and to the Company. Upon receiving such a notice of resignation or upon such a termination, or in case at any time such Authenticating Agent shall cease to be eligible in accordance with the provisions of this Section, the Trustee may appoint a successor Authenticating Agent which shall be acceptable to the Company and shall give written notice of such appointment to all Holders of Securities of the series with respect to which such Authenticating Agent shall serve, in the manner provided for in Section 1.6. Any successor Authenticating Agent upon acceptance of its appointment hereunder shall become vested with all the rights, powers and duties of its predecessor hereunder, with like effect as if originally named as an Authenticating Agent. No successor Authenticating Agent shall be appointed unless eligible under the provisions of this Section.

    

    
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    The Company agrees to pay to each Authenticating Agent from time to time reasonable compensation for its services under this Section.

    If an appointment with respect to one or more series is made pursuant to this Section, the Securities of such series may have endorsed thereon, in addition to the Trustee's certificate of authentication, an alternate certificate of authentication substantially in the following form:

    Dated: _____________________

    This is one of the Securities of the series designated therein referred to in the within-mentioned Indenture.

    	 	 	 
	 	as Trustee	 
	 	 	 	 
	 	 	 	 
	 	By: 	 	 
	 	 	as Authenticating Agent	 
	 	 	 	 
	 	By: 	 	 
	 	 	as Authorized Officer	 

    ARTICLE 7
HOLDERS' LISTS AND REPORTS BY TRUSTEE AND COMPANY

    7.1 Disclosure of Names and Addresses of Holders

    Every Holder of Securities, by receiving and holding the same, agrees with the Company and the Trustee that none of the Company or the Trustee or any agent of either of them shall be held accountable by reason of the disclosure of any such information as to the names and addresses of the Holders in accordance with TIA Section 312, regardless of the source from which such information was derived, and that the Trustee shall not be held accountable by reason of mailing any material pursuant to a request made under TIA Section 312(b).

    7.2 Reports by Trustee

    (a) Within 60 days after May 15 of each year commencing with the first May 15 after the first issuance of Securities pursuant to this Indenture, the Trustee shall transmit to the Holders, in the manner and to the extent provided in Section 313(c) of the Trust Indenture Act, a brief report dated as of such May 15 if required by Section 313(a) of the Trust Indenture Act.

    (b) The Trustee shall comply with Sections 313(b) and 313(c) of the Trust Indenture Act.

    (c) A copy of such report shall, at the time of such transmission to the Holders, be filed by the Trustee with the Company (Attention: Secretary), with each securities exchange upon which any of the Securities are listed (if so listed) and also with the Commission. The Company agrees to notify the Trustee when the Securities become listed on any stock exchange.

    7.3 Reports by Company

    The Company shall:

    (a) file with the Trustee, within 15 days after the Company has filed the same with the Commission, 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 Commission may from time to time by rules and regulations prescribe) which the Company may be required to file with the Commission pursuant to Section 13 or Section 15(d) of the Exchange Act; or, if the Company is not required to file information, documents or reports pursuant to either of such Sections, then it shall file with the Trustee and the Commission, in accordance with rules and regulations prescribed from time to time by the Commission, such of the supplementary and periodic information, documents and reports which may be required pursuant to Section 13 of the Exchange Act in respect of a security listed and registered on a national securities exchange as may be prescribed from time to time in such rules and regulations;

    

    
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    (b) file with the Trustee and the Commission, in accordance with rules and regulations prescribed from time to time by the Commission, such additional information, documents and reports with respect to compliance by the Company with the conditions and covenants of this Indenture as may be required from time to time by such rules and regulations; and

    (c) transmit to all Holders, in the manner and to the extent provided in TIA Section 313(c), within 30 days after the filing thereof with the Trustee, such summaries of any information, documents and reports required to be filed by the Company pursuant to clauses (a) and (b) of this Section as may be required by rules and regulations prescribed from time to time by the Commission.

    Delivery of such reports, information and documents to the Trustee are 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 (as to which the Trustee is entitled to rely exclusively on Officers' Certificates).

    ARTICLE 8
CONSOLIDATION, MERGER, CONVEYANCE, TRANSFER OR LEASE

    8.1 Company May Consolidate, etc., Only on Certain Terms

    The Company shall not consolidate, amalgamate or enter into any statutory arrangement with or merge into any other corporation or convey, transfer or lease all or substantially all of its properties and assets to any Person, unless:

    (a) the entity formed by or continuing from such consolidation, amalgamation or arrangement or into which the Company is merged or the Person which acquires by conveyance or transfer, or which leases, all or substantially all of the properties and assets of the Company substantially as an entirety shall:

    (i) be a corporation, partnership or trust organized and validly existing under the laws of:

    (A) Canada or any province or territory thereof;

    (B) the United States of America, any state thereof or the District of Columbia; or

    (C) if such consolidation, amalgamation, arrangement, merger or other transaction would not impair the rights of the Holders of the Securities, in any other country, provided that if such successor entity is organized under the laws of a jurisdiction other than Canada or any province or territory thereof, or the United States, any state thereof or the District of Columbia, the successor entity assumes by a supplemental indenture the obligations of the Company under the Securities and this Indenture to pay Additional Amounts; and

    (ii) expressly assume, by an indenture supplemental hereto, executed and delivered to the Trustee, in form satisfactory to the Trustee, or assume by operation of law, the Company's obligation for the due and punctual payment of the principal of (and premium, if any) and interest, if any, on all the Securities and the performance and observance of every covenant of this Indenture on the part of the Company to be performed or observed;

    (b) after giving effect to such transaction, no Default or Event of Default shall have occurred and be continuing; and

    

    
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    (c) the Company and the successor Person shall have delivered to the Trustee an Officers' Certificate and an Opinion of Counsel, each stating that such consolidation, amalgamation, arrangement, merger, conveyance, transfer or lease and such supplemental indenture comply with this Article and that all conditions precedent herein provided for relating to such transaction have been complied with.

    This Section shall only apply to a merger, amalgamation, arrangement or consolidation in which the Company is not the surviving corporation and to conveyances, leases and transfers by the Company as transferor or lessor.

    8.2 Successor Person Substituted

    Upon any consolidation, amalgamation or arrangement by the Company with or merger by the Company into any other corporation or any conveyance, transfer or lease all or substantially all of the properties and assets of the Company substantially as an entirety to any Person in accordance with Section 8.1, the successor Person formed by such consolidation, amalgamation or arrangement or into which the Company is merged or to which such conveyance, transfer or lease is made shall succeed to, and be substituted for, and may exercise every right and power of, the Company under this Indenture with the same effect as if such successor Person had been named as the Company herein, and in the event of any such conveyance or transfer, the Company (which term shall for this purpose mean the Person named as the "Company" in the first paragraph of this Indenture or any successor Person which shall theretofore become such in the manner described in Section 8.1), except in the case of a lease, shall be discharged of all obligations and covenants under this Indenture and the Securities and may be dissolved and liquidated.

    ARTICLE 9
SUPPLEMENTAL INDENTURES

    9.1 Supplemental Indentures Without Consent of Holders

    Without the consent of any Holders, the Company, when authorized by or pursuant to a Board Resolution, and the Trustee, at any time and from time to time, may enter into one or more indentures supplemental hereto, in form satisfactory to the Trustee, for any of the following purposes:

    (a) to evidence the succession of another Person to the Company and the assumption by any such successor of the covenants of the Company contained herein and in the Securities; or

    (b) to add to the covenants of the Company for the benefit of the Holders of all or any series of Securities (and if such covenants are to be for the benefit of less than all series of Securities, stating that such covenants are being included solely for the benefit of such series) or to surrender any right or power herein conferred upon the Company; or

    (c) to add any additional Events of Default (and if such Events of Default are to be for the benefit of less than all series of Securities, stating that such Events of Default are being included solely for the benefit of such series); provided, however, that in respect of any such additional Events of Default such supplemental indenture may provide for a particular period of grace after default (which period may be shorter or longer than that allowed in the case of other defaults) or may provide for an immediate enforcement upon such default or may limit the remedies available to the Trustee upon such default or may limit the right of the Holders of a majority in aggregate principal amount of that or those series of Securities to which such additional Events of Default apply to waive such default; or

    (d) to change or eliminate any of the provisions of this Indenture; provided that any such change or elimination shall become effective only when there is no Security Outstanding of any series created prior to the execution of such supplemental indenture which is entitled to the benefit of such provision; or

    (e) to establish the form or terms of Securities of any series as permitted by Sections 2.1 and 3.1; or

    (f) to evidence and provide for the acceptance of appointment hereunder by a successor Trustee with respect to the Securities of one or more series 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 6.9(b); or

    

    
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    (g) to close this Indenture with respect to the authentication and delivery of additional series of Securities, to cure any ambiguity, to correct or supplement any provision herein which may be defective or inconsistent with any other provision herein, or to make any other provisions with respect to matters or questions arising under this Indenture; provided such action shall not, in the opinion of the Board of Directors, adversely affect the interests of the Holders of Securities of any series and any related coupons in any material respect; or

    (h) to add to, delete from or revise the conditions, limitations and restrictions on the authorized amount, terms, purposes of issue, authentication and delivery of Securities, as herein set forth; or

    (i) to supplement any of the provisions of this Indenture to such extent as shall be necessary to permit or facilitate the defeasance and discharge of any series of Securities pursuant to Sections 4.1, 14.2 and 14.3; provided that any such action shall not, in the opinion of the Board of Directors, adversely affect the interests of the Holders of Securities of such series or any other series of Securities in any material respect; or

    (j) to make any change that does not adversely affect the interests of the Holders of Securities of such series or any other series of Securities in any material respect.

    9.2 Supplemental Indentures with Consent of Holders

    With the consent of the Holders of not less than a majority in principal amount of all Outstanding Securities of any series, by Act of said Holders delivered to the Company and the Trustee, the Company, when authorized by or pursuant to a Board Resolution, and the Trustee may 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 which affect such series of Securities or of modifying in any manner the rights of the Holders of Securities of such series under this Indenture; provided, however, that no such supplemental indenture shall, without the consent of the Holder of each Outstanding Security of such series:

    (a) change the Stated Maturity of the principal of (or premium, if any) or any installment of principal of or interest on any Security of such series, or reduce the principal amount thereof (or premium, if any) or the rate of interest, if any, thereon, or change any obligation of the Company to pay Additional Amounts contemplated by Section 10.5 (except as contemplated by Section 8.1(a) and permitted by Section 9.1(a)), or reduce the amount of the principal of an Original Issue Discount Security or Indexed Security of such series that would be due and payable upon a declaration of acceleration of the Maturity thereof pursuant to Section 5.2 or the amount thereof provable in bankruptcy pursuant to Section 5.4, or adversely affect any right of repayment at the option of any Holder of any Security of such series, or change any Place of Payment where, or the Currency in which, any Security of such series 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 Stated Maturity thereof (or, in the case of redemption or repayment at the option of the Holder, on or after the Redemption Date or the Repayment Date, as the case may be), or adversely affect any right to convert or exchange any Security as may be provided pursuant to Section 3.1 herein; or

    (b) reduce the percentage in principal amount of the Outstanding Securities of such series required for any such supplemental indenture, or the consent of whose Holders is required for any waiver of compliance with certain provisions of this Indenture which affect such series or certain defaults applicable to such series hereunder and their consequences provided for in this Indenture; or

    (c) modify any of the provisions of this Section, Section 5.13 or Section 10.7, except to increase any such percentage or to provide that certain other provisions of this Indenture which affect such series cannot be modified or waived without the consent of the Holder of each Outstanding Security of such series; or

    

    
        - 41 -

    

    (d) modify any of the provisions of this Indenture relating to the subordination of Securities in a manner adverse to the Holders.

    A supplemental indenture which changes or eliminates any covenant or other provision of this Indenture which has expressly been included solely for the benefit of one or more particular series of Securities, or which modifies the rights of the Holders of Securities of such series with respect to such covenant or other provision, shall be deemed not to affect the rights under this Indenture of the Holders of Securities of any other series. Any such supplemental indenture adding any provisions to or changing in any manner or eliminating any of the provisions of this Indenture, or modifying in any manner the rights of the Holders of Securities of such series, shall not affect the rights under this Indenture of the Holders of Securities of any other series.

    The Company may, but shall not be obligated to, fix a record date for the purpose of determining the Persons entitled to consent to any indenture supplemental hereto. If a record date is fixed, the Holders on such record date, or their duly designated proxies, and only such Persons, shall be entitled to consent to such supplemental indenture, whether or not such Holders remain Holders after such record date; provided that unless such consent shall have become effective by virtue of the requisite percentage having been obtained prior to the date which is 90 days after such record date, any such consent previously given shall automatically and without further action by any Holder be cancelled and of no further effect.

    It shall not be necessary for any Act of Holders under this Section to approve the particular form of any proposed supplemental indenture, but it shall be sufficient if such Act shall approve the substance thereof.

    9.3 Execution of Supplemental Indentures

    In executing, or accepting the additional trusts created by, any supplemental indenture permitted by this Article or the modifications thereby of the trusts created by this Indenture, the Trustee shall be provided with, and shall be fully protected in relying upon, an Opinion of Counsel stating that the execution of such supplemental indenture is authorized or permitted by this Indenture. The Trustee may, but shall not be obligated to, enter into any such supplemental indenture which affects the Trustee's own rights, duties or immunities under this Indenture or otherwise.

    9.4 Effect of Supplemental Indentures

    Upon the execution of any supplemental indenture under this Article, this Indenture shall be modified in accordance therewith, and such supplemental indenture shall form a part of this Indenture for all purposes; and every Holder of Securities theretofore or thereafter authenticated and delivered hereunder shall be bound thereby.

    9.5 Conformity with Trust Indenture Act

    Every supplemental indenture executed pursuant to this Article shall conform to the requirements of the Trust Indenture Act as then in effect.

    9.6 Reference in Securities to Supplemental Indentures

    Securities of any series authenticated and delivered after the execution of any supplemental indenture pursuant to this Article may, and shall if required by the Trustee, bear a notation in form approved by the Trustee as to any matter provided for in such supplemental indenture. If the Company shall so determine, new Securities of any series so modified as to conform, in the opinion of the Trustee and the Company, to any such supplemental indenture may be prepared and executed by the Company and authenticated and delivered by the Trustee in exchange for Outstanding Securities of such series.

    9.7 Notice of Supplemental Indentures

    Promptly after the execution by the Company and the Trustee of any supplemental indenture pursuant to the provisions of Section 9.2, the Company shall give notice thereof to the Holders of each Outstanding Security affected, in the manner provided for in Section 1.6, setting forth in general terms the substance of such supplemental indenture.

    

    
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    9.8 Effect on Senior Indebtedness

    No supplemental indenture shall adversely affect the rights of any holder of Senior Indebtedness under Article 15 without the consent of such holder.

    ARTICLE 10
COVENANTS

    10.1 Payment of Principal, Premium, if any, and Interest

    The Company covenants and agrees for the benefit of the Holders of each series of Securities that it shall duly and punctually pay the principal of (and premium, if any) and interest, if any, on the Securities of that series in accordance with the terms of the Securities and this Indenture.

    10.2 Maintenance of Office or Agency

    The Company shall maintain in each Place of Payment for any series of Securities an office or agency where Securities of that series may be presented or surrendered for payment, where Securities of that series may be surrendered for registration of transfer or exchange, where Securities of that series that are convertible or exchangeable may be surrendered for conversion or exchange, as applicable and where notices and demands to or upon the Company in respect of the Securities of that series and this Indenture may be served.

    The Company shall give prompt written notice to the Trustee of the location, and any change in the location, of such office or agency. If at any time the Company shall fail to maintain any such required office or agency or shall fail to furnish the Trustee with the address thereof, such presentations, surrenders, notices and demands may be made or served at the Corporate Trust Office of the Trustee, and the Company hereby appoints the same as its agents to receive such respective presentations, surrenders, notices and demands.

    The Company may also from time to time designate one or more other offices or agencies where the Securities of one or more series may be presented or surrendered for any or all such purposes and may from time to time rescind any such designation; 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 accordance with the requirements set forth above for Securities of any series for such purposes. The Company shall 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. Unless otherwise specified with respect to any Securities as contemplated by Section 3.1 with respect to a series of Securities, the Company hereby designates as a Place of Payment for each series of Securities the office or agency of the Company in the ♦, and initially appoints the Trustee at its Corporate Trust Office as Paying Agent in such city and as its agent to receive all such presentations, surrenders, notices and demands.

    10.3 Money for Securities Payments to Be Held in Trust

    If the Company shall at any time act as its own Paying Agent with respect to any series of Securities, it shall, on or before each due date of the principal of (or premium, if any) or interest, if any, on any of the Securities of that series, segregate and hold in trust for the benefit of the Persons entitled thereto a sum in the Currency in which the Securities of such series are payable sufficient to pay the principal of (or premium, if any) or interest, if any, on Securities of such series so becoming due until such sums shall be paid to such Persons or otherwise disposed of as herein provided and shall promptly notify the Trustee of its action or failure so to act.

    Whenever the Company shall have one or more Paying Agents for any series of Securities, it shall, on or before each due date of the principal of (or premium, if any) or interest, if any, on any Securities of that series, deposit with a Paying Agent a sum (in the Currency described in the preceding paragraph) sufficient to pay the principal (or premium, if any) or interest, if any, 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 shall promptly notify the Trustee of its action or failure so to act.

    

    
        - 43 -

    

    The Company shall cause each Paying Agent (other than the Trustee) for any series of Securities to execute and deliver to the Trustee an instrument in which such Paying Agent shall agree with the Trustee, subject to the provisions of this Section, that such Paying Agent shall:

    (a) hold all sums held by it for the payment of the principal of (and premium, if any) and interest, if any, on Securities of such series in trust for the benefit of the Persons entitled thereto until such sums shall be paid to such Persons or otherwise disposed of as herein provided;

    (b) give the Trustee notice of any default by the Company (or any other obligor upon the Securities of such series) in the making of any payment of principal of (or premium, if any) or interest, if any, on the Securities of such series; and

    (c) at any time during the continuance of any such default, upon the written request of the Trustee, forthwith pay to the Trustee all sums so held in trust by such Paying Agent.

    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 by Company Order 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 trusts as those upon which 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 sums.

    Except as provided in the Securities of any series, any money deposited with the Trustee or any Paying Agent, or then held by the Company, in trust for the payment of the principal of (or premium, if any), or interest, if any, on any Security of any series, and remaining unclaimed for two years (or such shorter period as may be specified in the applicable abandoned property statutes) after such principal, premium or interest has become due and payable shall be paid to the Company on Company Request, or (if then held by the Company) shall be discharged from such trust; and the Holder of such Security shall thereafter, as an unsecured general creditor, look only to the Company for payment thereof, and all liability of the Trustee or such Paying Agent with respect to such trust money, and all liability of the Company as trustee thereof, shall thereupon cease; provided, however, that the Trustee or such Paying Agent, before being required to make any such repayment, may at the expense of the Company cause to be published once, in an Authorized Newspaper, notice that such money remains unclaimed and that, after a date specified therein, which shall not be less than 30 days from the date of such publication, any unclaimed balance of such money then remaining shall be repaid to the Company.

    10.4 Statement as to Compliance

    The Company shall deliver to the Trustee, within 120 days after the end of each fiscal year, a brief certificate from the principal executive officer(s), principal financial officer(s) or principal accounting officer(s) as to his or her knowledge of the Company's compliance with all conditions and covenants under this Indenture. For purposes of this Section 10.4, such compliance shall be determined without regard to any period of grace or requirement of notice under this Indenture.

    10.5 Additional Amounts

    If the Securities of a series provide for the payment of Additional Amounts, the Company shall pay to the Holder of a Security of such series Additional Amounts as may be specified as contemplated by Section 3.1. Whenever in this Indenture there is mentioned, in any context, the payment of the principal of (or premium, if any) or interest, if any, on any Security of any series or the net proceeds received on the sale or exchange of any Security of any series, such mention shall be deemed to include mention of the payment of Additional Amounts provided by the terms of such series established pursuant to Section 3.1 to the extent that, in such context, Additional Amounts are, were or would be payable in respect thereof pursuant to such terms and express mention of the payment of Additional Amounts (if applicable) in any provisions hereof shall not be construed as excluding Additional Amounts in those provisions hereof where such express mention is not made.

    Except as otherwise specified as contemplated by Section 3.1, if the Securities of a series provide for the payment of Additional Amounts, at least 10 days prior to the first Interest Payment Date with respect to that series of Securities (or if the Securities of that series shall not bear interest prior to Maturity, the first day on which a payment of principal and any premium is made), and at least 10 days prior to each date of payment of principal, premium or interest if there has been any change with respect to the matters set forth in the below-mentioned Officers' Certificate, the Company shall furnish the Trustee and the Company's principal Paying Agent or Paying Agents, if other than the Trustee, with an Officers' Certificate instructing the Trustee and such Paying Agent or Paying Agents whether such payment of principal, premium or interest on the Securities of that series shall be made to Holders of Securities of that series without withholding for or on account of any tax, assessment or other governmental charge described in the Securities of the series. If any such withholding shall be required, then such Officers' Certificate shall specify by country the amount, if any, required to be withheld on such payments to such Holders of Securities of that series and the Company shall pay to the Trustee or such Paying Agent the Additional Amounts required by the terms of such Securities. In the event that the Trustee or any Paying Agent, as the case may be, shall not so receive the above-mentioned certificate, then the Trustee or such Paying Agent shall be entitled:

    

    
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    (a) to assume that no such withholding or deduction is required with respect to any payment of principal or interest with respect to any Securities of a series until it shall have received a certificate advising otherwise; and

    (b) to make all payments of principal and interest with respect to the Securities of a series without withholding or deductions until otherwise advised.

    The Company covenants to indemnify the Trustee and any Paying Agent for, and to hold them harmless against, any loss, liability or expense reasonably incurred without negligence or bad faith on their part arising out of or in connection with actions taken or omitted by any of them in reliance on any Officers' Certificate furnished pursuant to this Section or in reliance on the Company's not furnishing such an Officers' Certificate.

    10.6 Corporate Existence

    Subject to Article 8, the Company will do or cause to be done all things necessary to preserve and keep in full force and effect its corporate existence and the rights (charter and statutory) and franchises of the Company; provided, however, that the Company shall not be required to preserve any such right or franchise if the Company shall determine that the preservation thereof is no longer desirable in the conduct of the business of the Company and its subsidiaries as a whole.

    10.7 Waiver of Certain Covenants

    The Company may, with respect to any series of Securities, omit in any particular instance to comply with any term, provision or condition which affects such series set forth in Section 10.6 or, as specified pursuant to Section 3.1(n) for Securities of such series, in any covenants of the Company added to Article 10 pursuant to Section 3.1(n) or Section 3.1(o) in connection with Securities of such series, if before the time for such compliance the Holders of at least a majority in principal amount of all Outstanding Securities of any series, by Act of such Holders, waive such compliance in such instance with such term, provision or condition, but no such waiver shall extend to or affect such term, provision or condition except to the extent so expressly waived, and, until such waiver shall become effective, the obligations of the Company and the duties of the Trustee to Holders of Securities of such series in respect of any such term, provision or condition shall remain in full force and effect.

    10.8 Calculation of Original Issue Discount

    If any Securities are Original Issue Discount Securities, then the Company shall file with the Trustee promptly at the end of each calendar year:

    (a) a written notice specifying the amount of original issue discount (including daily rates and accrual periods) accrued on Outstanding Securities as of the end of such year; and

    (b) such other specified information relating to such original issue discount as may then be relevant under the Internal Revenue Code of 1986, as amended from time to time.

    

    
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    ARTICLE 11
REDEMPTION OF SECURITIES

    11.1 Applicability of Article

    Securities of any series which are redeemable before their Stated Maturity shall be redeemable in accordance with the terms of such Securities and (except as otherwise specified as contemplated by Section 3.1 for Securities of any series) in accordance with this Article.

    11.2 Election to Redeem; Notice to Trustee

    The election of the Company to redeem any Securities shall be evidenced by or pursuant to a Board Resolution. In case of any redemption at the election of the Company, the Company shall, at least 60 days prior to the Redemption Date fixed by the Company (unless a shorter notice shall be satisfactory to the Trustee), notify the Trustee of such Redemption Date and of the principal amount of Securities of such series to be redeemed and shall deliver to the Trustee such documentation and records as shall enable the Trustee to select the Securities to be redeemed pursuant to Section 11.3. In the case of any redemption of Securities prior to the expiration of any restriction on such redemption provided in the terms of such Securities or elsewhere in this Indenture, the Company shall furnish the Trustee with an Officers' Certificate evidencing compliance with such restriction.

    11.3 Selection by Trustee of Securities to Be Redeemed

    If less than all the Securities of any series are to be redeemed, the particular Securities to be redeemed shall be selected not more than 60 days prior to the Redemption Date by the Trustee, from the Outstanding Securities of such series not previously called for redemption, by such method as the Trustee shall deem fair and appropriate and which may provide for the selection for redemption of portions of the principal of Securities of such series; provided, however, that no such partial redemption shall reduce the portion of the principal amount of a Security not redeemed to less than the minimum authorized denomination for Securities of such series established pursuant to Section 3.1.

    The Trustee shall promptly notify the Company and the Security Registrar (if other than itself) in writing of the Securities selected for redemption and, in the case of any Securities selected for partial redemption, the principal amount thereof to be redeemed.

    For all purposes of this Indenture, unless the context otherwise requires, all provisions relating to the redemption of Securities shall relate, in the case of any Security redeemed or to be redeemed only in part, to the portion of the principal amount of such Security which has been or is to be redeemed.

    11.4 Notice of Redemption

    Except as otherwise specified as contemplated by Section 3.1, notice of redemption shall be given in the manner provided for in Section 1.6 not less than 30 nor more than 60 days prior to the Redemption Date, to each Holder of Securities to be redeemed. Failure to give notice in the manner provided in Section 1.6 to the Holder of any Securities designated for redemption as a whole or in part, or any defect in the notice to any such Holder, shall not affect the validity of the proceedings for the redemption of any other Securities or portion thereof.

    Any notice that is mailed to the Holders in the manner herein provided shall be conclusively presumed to have been duly given, whether or not the Holder receives the notice.

    All notices of redemption shall state:

    (a) the Redemption Date;

    (b) the Redemption Price and the amount of accrued interest to the Redemption Date payable as provided in Section 11.6, if any;

    

    
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    (c) if less than all the Outstanding Securities of any series are to be redeemed, the identification (and, in the case of partial redemption, the principal amounts) of the particular Securities to be redeemed;

    (d) in case any Security is to be redeemed in part only, the notice which relates to such Security shall state that on and after the Redemption Date, upon surrender of such Security, the Holder shall receive, without charge, a new Security or Securities of authorized denominations for the principal amount thereof remaining unredeemed;

    (e) that on the Redemption Date, the Redemption Price and accrued interest, if any, to the Redemption Date payable as provided in Section 11.6 shall become due and payable upon each such Security, or the portion thereof, to be redeemed and, if applicable, that interest thereon shall cease to accrue on and after said date;

    (f) the Place or Places of Payment where such Securities, if any, maturing after the Redemption Date, are to be surrendered for payment of the Redemption Price and accrued interest, if any; and

    (g) that the redemption is for a sinking fund, if such is the case.

    Notice of redemption of Securities to be redeemed at the election of the Company shall be given by the Company or, at the Company's request, by the Trustee in the name and at the expense of the Company.

    11.5 Deposit of Redemption Price

    On or prior to 10:00 a.m., ♦ time, on any Redemption Date, the Company shall deposit with the Trustee or with a Paying Agent (or, if the Company is acting as its own Paying Agent, segregate and hold in trust as provided in Section 10.3) an amount of money in the Currency in which the Securities of such series are payable sufficient to pay the Redemption Price of, and accrued interest, if any, on, all the Securities which are to be redeemed on that date.

    11.6 Securities Payable on Redemption Date

    Notice of redemption having been given as aforesaid, the Securities so to be redeemed shall, on the Redemption Date, become due and payable at the Redemption Price therein specified in the Currency in which the Securities of such series are payable (together with accrued interest, if any, to the Redemption Date), and from and after such date (unless the Company shall default in the payment of the Redemption Price and accrued interest, if any) such Securities shall, if the same were interest-bearing, cease to bear interest. Upon surrender of any such Security for redemption in accordance with said notice maturing after the Redemption Date, such Security shall be paid by the Company at the Redemption Price, together with accrued interest, if any, to the Redemption Date; provided, however, that installments of interest on Securities whose Stated Maturity is on or prior to the Redemption Date shall be payable to the Holders of such Securities, or one or more Predecessor Securities, registered as such at the close of business on the relevant Record Dates according to their terms and the provisions of Section 3.7.

    If any Security called for redemption shall not be so paid upon surrender thereof for redemption, the principal (and premium, if any) shall, until paid, bear interest from the Redemption Date at the rate of interest or Yield to Maturity (in the case of Original Issue Discount Securities) set forth in such Security.

    11.7 Securities Redeemed in Part

    Any Security which is to be redeemed only in part (pursuant to the provisions of this Article or of Article 12) shall be surrendered at a Place of Payment therefor (with, if the Company or the Trustee so requires, due endorsement by, or a written instrument of transfer in form satisfactory to the Company and the Trustee duly executed by, the Holder thereof or such Holder's attorney duly authorized in writing), and the Company shall execute, and the Trustee shall authenticate and deliver to the Holder of such Security without service charge, a new Security or Securities of the same series, of any authorized denomination as requested by such Holder, in aggregate principal amount equal to and in exchange for the unredeemed portion of the principal of the Security so surrendered. However, if less than all of the Securities of any series with differing issue dates, interest rates and stated maturities are to be redeemed, the Company in its sole discretion shall select the particular Securities to be redeemed and shall notify the Trustee in writing thereof at least 45 days prior to the relevant redemption date.

    

    
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    ARTICLE 12
SINKING FUNDS

    12.1 Applicability of Article

    Retirements of Securities of any series pursuant to any sinking fund shall be made in accordance with the terms of such Securities and (except as otherwise specified as contemplated by Section 3.1 for Securities of any series) in accordance with this Article.

    The minimum amount of any sinking fund payment provided for by the terms of Securities of any series is herein referred to as a "mandatory sinking fund payment", and any payment in excess of such minimum amount provided for by the terms of Securities of any series is herein referred to as an "optional sinking fund payment". If provided for by the terms of Securities of any series, the cash amount of any mandatory sinking fund payment may be subject to reduction as provided in Section 12.2. Each sinking fund payment shall be applied to the redemption of Securities of any series as provided for by the terms of Securities of such series.

    12.2 Satisfaction of Sinking Fund Payments with Securities

    Subject to Section 12.3, in lieu of making all or any part of any mandatory sinking fund payment with respect to any Securities of a series in cash, the Company may at its option:

    (a) deliver to the Trustee Outstanding Securities of a series (other than any previously called for redemption) theretofore purchased or otherwise acquired by the Company; and/or

    (b) receive credit for the principal amount of Securities of such series which have been previously delivered to the Trustee by the Company or for Securities of such series which have been redeemed either at the election of the Company pursuant to the terms of such Securities or through the application of permitted optional sinking fund payments pursuant to the terms of such Securities,

    in each case in satisfaction of all or any part of any mandatory sinking fund payment with respect to the Securities of the same series required to be made pursuant to the terms of such Securities as provided for by the terms of such series; provided, however, that such Securities have not been previously so credited. Such Securities shall be received and credited for such purpose by the Trustee at the Redemption Price specified in such Securities for redemption through operation of the sinking fund and the amount of such mandatory sinking fund payment shall be reduced accordingly.

    12.3 Redemption of Securities for Sinking Fund

    Not less than 60 days prior to each sinking fund payment date for any series of Securities, the Company shall deliver to the Trustee an Officers' Certificate specifying the amount of the next ensuing sinking fund payment for that series pursuant to the terms of that series, the portion thereof, if any, which is to be satisfied by payment of cash in the Currency in which the Securities of such series are payable and the portion thereof, if any, which is to be satisfied by delivering or crediting Securities of that series pursuant to Section 12.2 (which Securities shall, if not previously delivered, accompany such certificate) and whether the Company intends to exercise its right to make a permitted optional sinking fund payment with respect to such series. Such certificate shall be irrevocable and upon its delivery the Company shall be obligated to make the cash payment or payments therein referred to, if any, on or before the next succeeding sinking fund payment date. In the case of the failure of the Company to deliver such certificate, the sinking fund payment due on the next succeeding sinking fund payment date for that series shall be paid entirely in cash and shall be sufficient to redeem the principal amount of such Securities subject to a mandatory sinking fund payment without the option to deliver or credit Securities as provided in Section 12.2 and without the right to make any optional sinking fund payment, if any, with respect to such series.

    Not more than 60 days before each such sinking fund payment date the Trustee shall select the Securities to be redeemed upon such sinking fund payment date in the manner specified in Section 11.3 and cause notice of the redemption thereof to be given in the name of and at the expense of the Company in the manner provided in Section  11.4. Such notice having been duly given, the redemption of such Securities shall be made upon the terms and in the manner stated in Sections 11.6 and 11.7.

    

    
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    Prior to any sinking fund payment date, the Company shall pay to the Trustee or a Paying Agent (or, if the Company is acting as its own Paying Agent, segregate and hold in trust as provided in Section 10.3) in cash a sum equal to any interest that shall accrue to the date fixed for redemption of Securities or portions thereof to be redeemed on such sinking fund payment date pursuant to this Section 12.3.

    Notwithstanding the foregoing, with respect to a sinking fund for any series of Securities, if at any time the amount of cash to be paid into such sinking fund on the next succeeding sinking fund payment date, together with any unused balance of any preceding sinking fund payment or payments for such series, does not exceed in the aggregate $100,000, the Trustee, unless requested by the Company, shall not give the next succeeding notice of the redemption of Securities of such series through the operation of the sinking fund. Any such unused balance of moneys deposited in such sinking fund shall be added to the sinking fund payment for such series to be made in cash on the next succeeding sinking fund payment date or, at the request of the Company, shall be applied at any time or from time to time to the purchase of Securities of such series, by public or private purchase, in the open market or otherwise, at a purchase price for such Securities (excluding accrued interest and brokerage commissions, for which the Trustee or any Paying Agent shall be reimbursed by the Company) not in excess of the principal amount thereof.

    ARTICLE 13
REPAYMENT AT OPTION OF HOLDERS

    13.1 Applicability of Article

    Repayment of Securities of any series before their Stated Maturity at the option of Holders thereof shall be made in accordance with the terms of such Securities and (except as otherwise specified as contemplated by Section 3.1 for Securities of any series) in accordance with this Article.

    13.2 Repayment of Securities

    Securities of any series subject to repayment in whole or in part at the option of the Holders thereof shall, unless otherwise provided in the terms of such Securities, be repaid at the Repayment Price thereof, together with interest, if any, thereon accrued to the Repayment Date specified in or pursuant to the terms of such Securities. The Company covenants that on or before the Repayment Date it shall deposit with the Trustee or with a Paying Agent (or, if the Company is acting as its own Paying Agent, segregate and hold in trust as provided in Section 10.3) an amount of money in the Currency in which the Securities of such series are payable sufficient to pay the Repayment Price of and (except if the Repayment Date shall be an Interest Payment Date) accrued interest, if any, on, all the Securities or portions thereof, as the case may be, to be repaid on such date.

    13.3 Exercise of Option

    Securities of any series subject to repayment at the option of the Holders thereof shall contain an "Option to Elect Repayment" form on the reverse of such Securities. To be repaid at the option of the Holder, any Security so providing for such repayment, with the "Option to Elect Repayment" form on the reverse of such Security duly completed by the Holder (or by the Holder's attorney duly authorized in writing), must be received by the Company at the Place of Payment therefor specified in the terms of such Security (or at such other place or places or which the Company shall from time to time notify the Holders of such Securities) not earlier than 45 days nor later than 30 days prior to the Repayment Date. If less than the Repayment Price of such Security is to be repaid in accordance with the terms of such Security, the portion of the Repayment Price of such Security to be repaid, in increments of the minimum denomination for Securities of such series, and the denomination or denominations of the Security or Securities to be issued to the Holder for the portion of such Security surrendered that is not to be repaid, must be specified. Any Security providing for repayment at the option of the Holder thereof may not be repaid in part if, following such repayment, the unpaid principal amount of such Security would be less than the minimum authorized denomination of Securities of the series of which such Security to be repaid is a part. Except as otherwise may be provided by the terms of any Security providing for repayment at the option of the Holder thereof, exercise of the repayment option by the Holder shall be irrevocable unless waived by the Company.

    

    
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    13.4 When Securities Presented for Repayment Become Due and Payable

    If Securities of any series providing for repayment at the option of the Holders thereof shall have been surrendered as provided in this Article and as provided by or pursuant to the terms of such Securities, such Securities or the portions thereof, as the case may be, to be repaid shall become due and payable and shall be paid by the Company on the Repayment Date therein specified, and on and after such Repayment Date (unless the Company shall default in the payment of such Securities on such Repayment Date) such Securities shall, if the same were interest-bearing, cease to bear interest. Upon surrender of any such Security for repayment in accordance with such provisions maturing after the Repayment Date, the Repayment Price of such Security so to be repaid shall be paid by the Company, together with accrued interest, if any, to the Repayment Date; provided, however, that installments of interest, if any, whose Stated Maturity is on or prior to the Repayment Date shall be payable to the Holders of such Securities, or one or more Predecessor Securities, registered as such at the close of business on the relevant Record Dates according to their terms and the provisions of Section 3.7.

    If any Security surrendered for repayment shall not be so repaid upon surrender thereof, the Repayment Price shall, until paid, bear interest from the Repayment Date at the rate of interest or Yield to Maturity (in the case of Original Issue Discount Securities) set forth in such Security.

    13.5 Securities Repaid in Part

    Upon surrender of any Security which is to be repaid in part only, the Company shall execute and the Trustee shall authenticate and deliver to the Holder of such Security, without service charge and at the expense of the Company, a new Security or Securities of the same series, of any authorized denomination specified by the Holder, in an aggregate principal amount equal to and in exchange for the portion of the principal of such Security so surrendered which is not to be repaid.

    ARTICLE 14
DEFEASANCE AND COVENANT DEFEASANCE

    14.1 Company's Option to Effect Defeasance or Covenant Defeasance

    Except as otherwise specified as contemplated by Section 3.1 for Securities of any series, the provisions of this Article 14 shall apply to each series of Securities, and the Company may, at its option, effect defeasance of the Securities of or within a series under Section 14.2, or covenant defeasance of or within a series under Section 14.3 in accordance with the terms of such Securities and in accordance with this Article.

    14.2 Defeasance and Discharge

    Upon the Company's exercise of the above option applicable to this Section with respect to any Securities of or within a series, the Company shall be deemed to have been discharged from its obligations with respect to such Outstanding Securities on the date the conditions set forth in Section 14.4 are satisfied (hereinafter, "defeasance"). For this purpose, such defeasance means that the Company shall be deemed to have paid and discharged the entire indebtedness represented by such Outstanding Securities, which shall thereafter be deemed to be "Outstanding" only for the purposes of Section 14.5 and the other Sections of this Indenture referred to in (a) and (b) below, and to have satisfied all its other obligations under such Securities and this Indenture insofar as such Securities are concerned (and the Trustee, at the expense of the Company, shall execute proper instruments acknowledging the same), except for the following which shall survive until otherwise terminated or discharged hereunder:

    (a) the rights of Holders of such Outstanding Securities to receive, solely from the trust fund described in Section 14.4 and as more fully set forth in such Section, payments in respect of the principal of (and premium, if any) and interest, if any, on such Securities when such payments are due;

    (b) the Company's obligations with respect to such Securities under Sections 3.4, 3.5, 3.6, 10.2 and 10.3 and with respect to the payment of Additional Amounts, if any, on such Securities as contemplated by Section 10.5;

    (c) the rights, powers, trusts, duties and immunities of the Trustee hereunder; and

    

    
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    (d) this Article 14. Subject to compliance with this Article 14, the Company may exercise its option under this Section 14.2 notwithstanding the prior exercise of its option under Section 14.3 with respect to such Securities. Money and securities held in trust pursuant to this Section 14.2 shall not be subject to Article 15.

    14.3 Covenant Defeasance

    Upon the Company's exercise of the above option applicable to this Section with respect to any Securities of or within a series, the Company shall be released from its obligations under Article 8, Section 10.6 and any covenant specified pursuant to Section 3.1, its obligations under any other covenant, with respect to such Outstanding Securities on and after the date the conditions set forth in Section 14.4 are satisfied (hereinafter, "covenant defeasance"), and such Securities shall thereafter be deemed not to be "Outstanding" for the purposes of any direction, waiver, consent or declaration or Act of Holders (and the consequences of any thereof) in connection with such covenants, but shall continue to be deemed "Outstanding" for all other purposes hereunder. For this purpose, such covenant defeasance means that, with respect to such Outstanding Securities, the Company may omit to comply with and shall have no liability in respect of any term, condition or limitation set forth in any such covenant, whether directly or indirectly, by reason of any reference elsewhere herein to any such covenant or by reason of reference in any such covenant to any other provision herein or in any other document and such omission to comply shall not constitute a Default or an Event of Default under Section 5.1(d) or Section 5.1(h) or otherwise, as the case may be, but, except as specified above, the remainder of this Indenture and such Securities shall be unaffected thereby.

    14.4 Conditions to Defeasance or Covenant Defeasance

    The following shall be the conditions to application of either Section 14.2 or Section 14.3 to any Outstanding Securities of or within a series:

    (a) The Company shall irrevocably have deposited or caused to be deposited with the Trustee (or another trustee satisfying the requirements of Section 6.7 who shall agree to comply with the provisions of this Article 14 applicable to it) as trust funds in trust for the purpose of making the following payments, specifically pledged as security for, and dedicated solely to, the benefit of the Holders of such Securities:

    (i) an amount (in such Currency in which such Securities are then specified as payable at Stated Maturity); or

    (ii) Government Obligations applicable to such Securities (determined on the basis of the Currency in which such Securities are then specified as payable at Stated Maturity) which through the scheduled payment of principal and interest in respect thereof in accordance with their terms shall provide, not later than one day before the due date of any payment of principal of and premium, if any, and interest, if any, under such Securities, money in an amount; or

    (iii) a combination thereof, sufficient, in the opinion of a nationally recognized firm of independent chartered accountants expressed in a written certification thereof delivered to the Trustee, to pay and discharge, and which shall be applied by the Trustee (or other qualifying trustee) to pay and discharge:

    (A) the principal of (and premium, if any) and interest, if any, on such Outstanding Securities and on the Stated Maturity (or Redemption Date, if applicable) of such principal (and premium, if any) or installment of principal or interest, if any; and

    (B) any mandatory sinking fund payments or analogous payments applicable to such Outstanding Securities on the day on which such payments are due and payable in accordance with the terms of this Indenture and of such Securities;

    provided that the Trustee shall have been irrevocably instructed to apply such money or the proceeds of such Government Obligations to said payments with respect to such Securities. Before such a deposit, the Company may give to the Trustee, in accordance with Section 11.2 hereof, a notice of its election to redeem all or any portion of such Outstanding Securities at a future date in accordance with the terms of the Securities of such series and Article 11 hereof, which notice shall be irrevocable. Such irrevocable redemption notice, if given, shall be given effect in applying the foregoing.

    

    
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    (b) No Default or Event of Default with respect to such Securities shall have occurred and be continuing on the date of such deposit or, insofar as clauses (e) and (f) of Section 5.1 are concerned, at any time during the period ending on the 91st day after the date of such deposit (it being understood that this condition shall not be deemed satisfied until the expiration of such period).

    (c) Such defeasance or covenant defeasance shall not result in a breach or violation of, or constitute a default under, this Indenture or any other material agreement or instrument to which the Company is a party or by which it is bound.

    (d) In the case of an election under Section 14.2, the Company shall have delivered to the Trustee an Opinion of Counsel in the United States stating that:

    (i) the Company has received from, or there has been published by, the Internal Revenue Service a ruling; or

    (ii) since the date of execution of this Indenture, there has been a change in the applicable U.S. federal income tax law,

    in either case to the effect that, and based thereon such opinion shall confirm that, the Holders of such Outstanding Securities shall not recognize income, gain or loss for federal income tax purposes as a result of such defeasance and shall be subject to federal income tax on the same amounts, in the same manner and at the same times as would have been the case if such defeasance had not occurred.

    (e) In the case of an election under Section 14.3, the Company shall have delivered to the Trustee an Opinion of Counsel in the United States to the effect that the Holders of such Outstanding Securities shall not recognize income, gain or loss for U.S. federal income tax purposes as a result of such covenant defeasance and shall be subject to U.S. federal income tax on the same amounts, in the same manner and at the same times as would have been the case if such covenant defeasance had not occurred.

    (f) Notwithstanding any other provisions of this Section, such defeasance or covenant defeasance shall be effected in compliance with any additional or substitute terms, conditions or limitations in connection therewith pursuant to Section 3.1.

    (g) The Company shall have delivered to the Trustee an Officers' Certificate and an Opinion of Counsel, each stating that all conditions precedent provided for relating to either the defeasance under Section 14.2 or the covenant defeasance under Section 14.3 (as the case may be) have been complied with.

    (h) Either the Company has delivered to the Trustee an Opinion of Counsel in Canada or a ruling from Canada Revenue Agency to the effect that the Holders of such Outstanding Securities shall not recognize income, gain or loss for Canadian federal, provincial or territorial income tax or other tax purpose as a result of such defeasance or covenant defeasance, as the case may be, and shall be subject to Canadian federal or provincial income tax and other tax on the same amounts, in the same manner and at the same times as would have been the case had such defeasance or covenant defeasance, as the case may be, not occurred (and for the purposes of such opinion, such Canadian counsel shall assume that Holders of the Securities include Holders who are not resident in Canada).

    

    
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    14.5 Deposited Money and Government Obligations to Be Held in Trust; Other Miscellaneous Provisions

    Subject to the provisions of the last paragraph of Section 10.3, all money and Government Obligations (or other property as may be provided pursuant to Section 3.1) (including the proceeds thereof) deposited with the Trustee (or other qualifying trustee, collectively for purposes of this Section 14.5, the "Trustee") pursuant to Section 14.4 in respect of such Outstanding Securities shall be held in trust and applied by the Trustee, in accordance with the provisions of such Securities and this Indenture, to the payment, either directly or through any Paying Agent (including the Company acting as its own Paying Agent) as the Trustee may determine, to the Holders of such Securities of all sums due and to become due thereon in respect of principal (and premium, if any) and interest, if any, but such money need not be segregated from other funds except to the extent required by law.

    The Company shall pay and indemnify the Trustee against any tax, fee or other charge imposed on or assessed against the Government Obligations deposited pursuant to Section 14.4 or the principal and interest received in respect thereof other than any such tax, fee or other charge which by law is for the account of the Holders of such Outstanding Securities.

    Anything in this Article 14 to the contrary notwithstanding, the Trustee shall deliver or pay to the Company from time to time upon Company Request any money or Government Obligations (or other property and any proceeds therefrom) held by it as provided in Section 14.4 which, in the opinion of a nationally recognized firm of independent public accountants expressed in a written certification thereof delivered to the Trustee, are in excess of the amount thereof which would then be required to be deposited to effect an equivalent defeasance or covenant defeasance, as applicable, in accordance with this Article 14.

    14.6 Reinstatement

    If the Trustee or any Paying Agent is unable to apply any money in accordance with Section 14.5 by reason of 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 such Securities shall be revived and reinstated as though no deposit had occurred pursuant to Section 14.2 or 14.3, as the case may be, until such time as the Trustee or Paying Agent is permitted to apply all such money in accordance with Section 14.5; provided, however, that if the Company makes any payment of principal of (or premium, if any) or interest, if any, on any such Security following the reinstatement of its obligations, the Company shall be subrogated to the rights of the Holders of such Securities to receive such payment from the money held by the Trustee or Paying Agent.

    ARTICLE 15
SUBORDINATION OF SECURITIES

    15.1 Agreement to Subordinate

    Unless otherwise specified pursuant to Section 3.1, the Company, for itself, its successors and assigns, covenants and agrees, and each Holder of Securities by his acceptance thereof, likewise covenants and agrees, that the payment of the principal of (and premium, if any) and interest, if any, on each and all of the Securities is hereby expressly subordinated, to the extent and in the manner hereinafter set forth, in right of payment to the prior payment in full of all Senior Indebtedness.

    15.2 Distribution on Dissolution, Liquidation and Reorganization; Subrogation of Securities

    Unless otherwise specified pursuant to Section 3.1, upon any distribution of assets of the Company upon any dissolution, winding up, liquidation or reorganization of the Company, whether in bankruptcy, insolvency, reorganization or receivership proceedings or upon an assignment for the benefit of creditors or any other marshalling of the assets and liabilities of the Company or otherwise (subject to the power of a court of competent jurisdiction to make other equitable provision reflecting the rights conferred in this Indenture upon the Senior Indebtedness and the holders thereof with respect to the Securities and the holders thereof by a lawful plan of reorganization under applicable bankruptcy law):

    (a) the holders of all Senior Indebtedness shall be entitled to receive payment in full of the principal thereof (and premium, if any) and interest due thereon before the Holders of the Securities are entitled to receive any payment upon the principal (or premium, if any) or interest, if any, on indebtedness evidenced by the Securities;

    

    
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    (b) any payment or distribution of assets of the Company of any kind or character, whether in cash, property or securities, to which the Holders of the Securities or the Trustee would be entitled except for the provisions of this Article 15 shall be paid by the liquidating trustee or agent or other Person making such payment or distribution, whether a trustee in bankruptcy, a receiver or liquidating trustee or otherwise, directly to the holders of Senior Indebtedness or their representative or representatives or to the trustee or trustees under any indenture under which any instruments evidencing any of such Senior Indebtedness may have been issued, ratably according to the aggregate amounts remaining unpaid on account of the principal of (and premium, if any) and interest on the Senior Indebtedness held or represented by each, to the extent necessary to make payment in full of all Senior Indebtedness remaining unpaid, after giving effect to any concurrent payment or distribution to the holders of such Senior Indebtedness; and

    (c) in the event that, notwithstanding the foregoing, any payment or distribution of assets of the Company of any kind or character, whether in cash, property or securities, shall be received by the Trustee or the Holders of the Securities before all Senior Indebtedness is paid in full, such payment or distribution shall be paid over, upon written notice to the Trustee, to the holders of such Senior Indebtedness or their representative or representatives or to the trustee or trustees under any indenture under which any instrument evidencing any of such Senior Indebtedness may have been issued, ratably as aforesaid, for application to payment of all Senior Indebtedness remaining unpaid until all such Senior Indebtedness shall have been paid in full, after giving effect to any concurrent payment or distribution to the holders of such Senior Indebtedness.

    Subject to the payment in full of all Senior Indebtedness, the Holders of the Securities shall be subrogated to the rights of the holders of Senior Indebtedness to receive payments or distributions of cash, property or securities of the Company applicable to Senior Indebtedness until the principal of (and premium, if any) and interest, if any, on the Securities shall be paid in full and no such payments or distributions to the Holders of the Securities of cash, property or securities otherwise distributable to the holders of Senior Indebtedness shall, as between the Company, its creditors other than the holders of Senior Indebtedness, and the Holders of the Securities be deemed to be a payment by the Company to or on account of the Securities. It is understood that the provisions of this Article 15 are and are intended solely for the purpose of defining the relative rights of the Holders of the Securities, on the one hand, and the holders of the Senior Indebtedness, on the other hand. Nothing contained in this Article 15 or elsewhere in this Indenture or in the Securities is intended to or shall impair, as between the Company, its creditors other than the holders of Senior Indebtedness, and the Holders of the Securities, the obligation of the Company, which is unconditional and absolute, to pay to the Holders of the Securities the principal of (and premium, if any) and interest, if any, on the Securities as and when the same shall become due and payable in accordance with their terms, or to affect the relative rights of the Holders of the Securities and creditors of the Company other than the holders of Senior Indebtedness, nor shall anything herein or in the Securities prevent the Trustee or the Holder of any Security from exercising all remedies otherwise permitted by applicable law upon default under this Indenture, subject to the rights, if any, under this Article 15 of the holders of Senior Indebtedness in respect of cash, property or securities of the Company received upon the exercise of any such remedy. Upon any payment or distribution of assets of the Company referred to in this Article 15, the Trustee, subject to the provisions of Section 6.1, shall be entitled to rely upon a certificate of the liquidating trustee or agent or other Person making any distribution to the Trustee for the purpose of ascertaining the Persons entitled to participate in such distribution, the holders of Senior Indebtedness and other indebtedness of the Company, the amount thereof or payable thereon, the amount or amounts paid or distributed thereon and all other facts pertinent thereto or to this Article 15.

    The Trustee, however, shall not be deemed to owe any fiduciary duty to the holders of Senior Indebtedness. The Trustee shall not be liable to any such holder if it shall pay over or distribute to or on behalf of Holders of Securities or the Company moneys or assets to which any holder of Senior Indebtedness shall be entitled by virtue of this Article 15.

    If the Trustee or any Holder of Securities does not file a proper claim or proof of debt in the form required in any proceeding referred to above prior to 30 days before the expiration of the time to file such claim in such proceeding, then the holder of any Senior Indebtedness is hereby authorized, and has the right, to file an appropriate claim or claims for or on behalf of such Holder of Securities.

    

    
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    With respect to the holders of Senior Indebtedness, the Trustee undertakes to perform or to observe only such of its covenants or obligations as are specifically set forth in this Article and no implied covenants or obligations with respect to holders of Senior Indebtedness shall be read into this Indenture against the Trustee.

    15.3 No Payment on Securities in Certain Circumstances

    Unless otherwise specified pursuant to Section 3.1:

    (a) Upon the maturity of any Senior Indebtedness by lapse of time, acceleration (unless waived, rescinded or annulled) or otherwise, or upon any payment default (with or without the giving of notice or lapse of time or both, in accordance with the terms of the instrument governing such Senior Indebtedness, and without any waiver or forgiveness) with respect to any Senior Indebtedness, all amounts payable thereon shall first be paid in full, or such Senior Indebtedness, before any payment is made, directly or indirectly by set off or otherwise, on account of principal of, or interest on, the Securities of such series or to acquire any of the Securities of such series or on account of the redemption provisions of the Securities of such series.

    (b) Upon a default with respect to any Senior Indebtedness (other than under circumstances when the terms of paragraph (a) of this Section are applicable), as such default is defined therein or in the instrument under which it is outstanding, permitting the holders to accelerate the maturity thereof, upon written notice thereof given to the Company and the Trustee by or on behalf of holders of such Senior Indebtedness ("Default Notice"), then, unless and until such default shall have been cured or waived by the holders of such Senior Indebtedness or shall have ceased to exist (the "Payment Blockage Period"), no direct or indirect payment shall be made by the Company with respect to the principal of, or interest on, the Securities or to acquire any of such Securities or on account of the redemption provisions of the Securities; provided, however, that this paragraph (b) shall not prevent the making of any payment (which is not otherwise prohibited by paragraph (a)) for more than 179  days after the Default Notice shall have been given unless the Senior Indebtedness in respect of which such event of default exists has been declared due and payable in its entirety, in which case no such payment may be made until such acceleration has been rescinded or annulled or such Senior Indebtedness has been paid in full.

    (c) If, notwithstanding the foregoing provisions of this Section, any payment on account of principal of, or interest on, the Securities shall be received by the Trustee, by a Holder or by any Paying Agent (or, if the Company is acting as its own Paying Agent, money for any such payment is segregated and held in trust), then, unless and until such payment is no longer prohibited by this Section, such payment (subject to the provisions of Section 15.4) shall be held in trust for the benefit of the holders of Senior Indebtedness and, upon notice to the Trustee or such Paying Agent from the representative of the holders of the Senior Indebtedness and pursuant to the directions of such representative, shall be paid over or delivered to the holders of Senior Indebtedness or their representative(s), ratably according to the aggregate amount remaining unpaid on account of the principal of and interest on the Senior Indebtedness held or represented by each, for application to the payment or prepayment of all Senior Indebtedness remaining unpaid to the extent necessary to pay all Senior Indebtedness in full in accordance with its terms, after giving effect to any concurrent payment or distribution or provision therefor to or for the holders of Senior Indebtedness. Promptly after becoming aware thereof, the Company shall give written notice to the Trustee of any event prohibiting payments on account of principal of, or interest on, the Securities and, in such event, shall provide to the Trustee, in the form of an Officers' Certificate, the names and addresses of the holders of such Senior Indebtedness and their representative(s), if any, the amount of the Senior Indebtedness held by each such holder, any information necessary to calculate the daily or other increase in Senior Indebtedness held by such holders and any other information which the Trustee may reasonably request to comply with this Article. Subject to the provisions of Section 15.2 hereof, in the event that the Trustee or the Paying Agent reasonably determines that additional evidence is required with respect to any person as a holder of Senior Indebtedness to participate in any payment or distribution pursuant to this Article, the Trustee or the Paying Agent, as the case may be, may request that such person furnish evidence to its reasonable as to the extent such person is entitled to participate in such payment or distribution and as to other facts pertinent to the rights of such persons under this Article and if such evidence is not furnished, the Trustee or the Paying Agent, as the case may be, may defer any payment to such person pending judicial determination as to the right of such person to receive such payment.

    

    
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    15.4 Payments on Securities Permitted

    Nothing contained in this Indenture or in any of the Securities shall:

    (a) affect the obligation of the Company to make, or prevent the Company from making, at any time except as provided in Sections 15.2 and 15.3, payments of principal of (or premium, if any) or interest, if any, on the Securities; or

    (b) prevent the application by the Trustee of any moneys deposited with it hereunder to the payment of or on account of the principal of (or premium, if any) or interest, if any, on the Securities, unless the Trustee shall have received at its Corporate Trust Office written notice of any event prohibiting the making of such payment more than two Business Days prior to the date fixed for such payment.

    15.5 Authorization of Holders to Trustee to Effect Subordination

    Each Holder of Securities by his acceptance thereof authorizes and directs the Trustee on his behalf to take such action as may be necessary or appropriate to effectuate the subordination as provided in this Article 15 and appoints the Trustee his attorney-in-fact for any and all such purposes.

    15.6 Notices to Trustee

    Notwithstanding the provisions of this Article or any other provisions of this Indenture, neither the Trustee nor any Paying Agent (other than the Company) shall be charged with knowledge of the existence of any Senior Indebtedness or of any event which would prohibit the making of any payment of moneys to or by the Trustee or such Paying Agent, unless and until the Trustee or such Paying Agent shall have received (in the case of the Trustee, at its Corporate Trust Office) written notice thereof from the Company or from the holder of any Senior Indebtedness or from the trustee for any such holder, together with proof satisfactory to the Trustee of such holding of Senior Indebtedness or of the authority of such trustee; provided, however, that if at least two Business Days prior to the date upon which by the terms hereof any such moneys may become payable for any purpose (including, without limitation, the payment of either the principal (or premium, if any) or interest, if any, on any Security) the Trustee shall not have received with respect to such moneys the notice provided for in this Section 15.6, then, anything herein contained to the contrary notwithstanding, the Trustee shall have full power and authority to receive such moneys and to apply the same to the purpose for which they were received, and shall not be affected by any notice to the contrary, which may be received by it within two Business Days prior to such date. The Trustee shall be entitled to rely on the delivery to it of a written notice by a Person representing himself to be a holder of Senior Indebtedness (or a trustee on behalf of such holder) to establish that such a notice has been given by a holder of Senior Indebtedness or a trustee on behalf of any such holder. In the event that the Trustee determines in good faith that further evidence is required with respect to the right of any Person as a holder of Senior Indebtedness to participate in any payment or distribution pursuant to this Article 15, the Trustee may request such Person to furnish evidence to the reasonable satisfaction of the Trustee as to the amount of Senior Indebtedness held by such Person, the extent to which such Person is entitled to participate in such payment or distribution and any other facts pertinent to the rights of such Person under this Article 15 and, if such evidence is not furnished, the Trustee may defer any payment to such Person pending judicial determination as to the right of such Person to receive such payment.

    15.7 Trustee as Holder of Senior Indebtedness

    The Trustee in its individual capacity shall be entitled to all the rights set forth in this Article 15 in respect of any Senior Indebtedness at any time held by it to the same extent as any other holder of Senior Indebtedness and nothing in this Indenture shall be construed to deprive the Trustee of any of its rights as such holder.

    Nothing in this Article 15 shall apply to claims of, or payments to, the Trustee under or pursuant to Section 6.6.

    

    
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    15.8 Modifications of Terms of Senior Indebtedness

    Any renewal or extension of the time of payment of any Senior Indebtedness or the exercise by the holders of Senior Indebtedness of any of their rights under any instrument creating or evidencing Senior Indebtedness, including, without limitation, the waiver of default thereunder, may be made or done all without notice to or assent from the Holders of the Securities or the Trustee.

    No compromise, alteration, amendment, modification, extension, renewal or other change of, or waiver, consent or other action in respect of, any liability or obligation under or in respect of, or of any of the terms, covenants or conditions of any indenture or other instrument under which any Senior Indebtedness is outstanding or of such Senior Indebtedness, whether or not such release is in accordance with the provisions of any applicable document, shall in any way alter or affect any of the provisions of this Article 15 or of the Securities relating to the subordination thereof.

    15.9 Reliance on Judicial Order or Certificate of Liquidating Agent

    Upon any payment or distribution of assets of the Company referred to in this Article 15, the Trustee and the Holders of the Securities shall be entitled to rely upon any order or decree entered by any court of competent jurisdiction in which such insolvency, bankruptcy, receivership, liquidation, reorganization, dissolution, winding up or similar case or proceeding is pending, or a certificate of the trustee in bankruptcy, liquidating trustee, custodian, receiver, assignee for the benefit of creditors, agent or other Person making such payment or distribution, delivered to the Trustee or to the Holders of Securities, for the purpose of ascertaining the Persons entitled to participate in such payment or distribution, the holders of Senior Indebtedness and other indebtedness of the Company, the amount thereof or payable thereon, the amount or amounts paid or distributed thereon and all other facts pertinent thereto or to this Article 15.

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

    [Signatures follow on next page]

    

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

    	 	THE ALKALINE WATER COMPANY INC.
	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:
	 	 	 
	 	 
	 	as Trustee
	 	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:ex101loanagreement-sharp

EXHIBIT 10.1  AMENDED AND RESTATED LOAN AGREEMENT – Page 1  AMENDED AND RESTATED  LOAN AGREEMENT      THIS LOAN AGREEMENT(as amended, modified, restated, or supplemented at any time or from time to  time, the “Agreement”) is made and entered into as of March 18, 2022, by and among [REDACTED], a  [REDACTED] bank (“Bank”), having an address [REDACTED]; SHARPS COMPLIANCE, INC. OF TEXAS, a  Texas corporation d/b/a Sharps Compliance, Inc. (“Compliance”), SHARPS E-TOOLS.COM INC., a Delaware  corporation (“e-Tools”), SHARPS MANUFACTURING, INC., a Delaware corporation (“Manufacturing”),  SHARPS ENVIRONMENTAL SERVICES, INC., a Delaware corporation d/b/a Sharps Environmental Services of  Texas, Inc. (“Environmental”), SHARPS SAFETY, INC., a Texas corporation (“Safety”), ALPHA BIO/MED  SERVICES LLC, a Pennsylvania limited liability company (“Alpha”), BIO-TEAM MOBILE LLC, a Pennsylvania  limited liability company (“Bio-Team”), CITIWASTE, LLC, a New York limited liability company (“Citiwaste”),  SHARPS PROPERTIES, LLC, a Pennsylvania limited liability company (“Properties”), MIDWEST MEDICAL  WASTE, INC., a Kansas corporation (“Midwest”), and AFFORDABLE MEDICAL WASTE LLC, an Indiana  corporation (“Affordable”) (Compliance, e-Tools, Manufacturing, Environmental, Safety, Alpha, Bio-Team,  Citiwaste, Properties, Midwest, Affordable, and all current and future subsidiaries of Parent are, individually and  collectively, “Borrower”, and each are individually sometimes referred to herein as a “Loan Party” and collectively  as the “Loan Parties”).  All the Loan Parties have an address of 9220 Kirby Drive, Suite 500, Houston, TX 77054.  W I T N E S S E T H:  WHEREAS, Bank made a revolving line of credit to Compliance in the maximum amount of $6,000,000.00  and a guidance line of credit to Compliance in the maximum amount of $8,000,000.00, pursuant to that certain Loan  Agreement dated March 29, 2017 (as amended or otherwise modified from time to time, the “RLOC Loan  Agreement”), by and between Compliance, as borrower, Bank, as lender, and the domestic subsidiaries of Compliance  as guarantors;   WHEREAS, Bank made a loan to Compliance and Environmental in the original maximum principal amount  of $1,997,500.00, pursuant to that certain Construction and Term Loan Agreement dated August 21, 2019 (as amended  or otherwise modified from time to time, the “Facility C Loan Agreement”), by and among Compliance and  Environmental, as borrower, Bank, as lender, and Alpha, Bio-Team, and Citiwaste, as guarantors;  WHEREAS, Bank made a loan to Properties in the original maximum principal amount of $873,000.00,  pursuant to that certain Term Loan Agreement dated January 22, 2021 (as amended or otherwise modified from time  to time, the “Facility D Loan Agreement”), by and among Properties, as borrower, Bank, as lender, and Compliance,  Environmental, Alpha, Bio-Team, and Citiwaste as guarantors;  WHEREAS, Borrower has requested and, subject to the terms and conditions hereof, Bank has agreed to  extend certain credit facilities on the terms and conditions of this Agreement;  WHEREAS, Borrower and Bank have agreed to amend, restate, and consolidate the RLOC Loan Agreement,  the Facility C Loan Agreement and the Facility D Loan Agreement into this Agreement (the RLOC Loan Agreement,  the Facility C Loan Agreement, and the Facility D Loan Agreement are collectively, the “Original Loan  Agreements”);  NOW, THEREFORE, in consideration of the mutual provisions, covenants and agreements herein  contained and for other good and valuable consideration, the receipt and sufficiency of which are hereby  acknowledged, the parties hereto hereby agree as follows:  

 

AMENDED AND RESTATED LOAN AGREEMENT – Page 2  ARTICLE ONE  DEFINITIONS  1.01 Defined Terms.  For purposes of this Agreement, in addition to the terms defined elsewhere herein,  including without limitation the preamble to this Agreement, the following terms shall have the meanings set forth  below (such meanings to be equally applicable to the singular and plural forms thereof):  The terms “Account”, “Account Debtor”, “Chattel Paper”, Commercial Tort Claim”, “Deposit  Account”, “Document”, “Electronic Chattel Paper”, “Equipment”, “Fixtures”, “General Intangible”, “Goods”,  “Healthcare Insurance Receivable”, “Instrument”, “Inventory”, “Investment Property”, “Letter of Credit  Right”, and “Payment Intangible” shall each have the respective meanings ascribed thereto in the UCC.  “Acquired Person” shall have the meaning given to such term in Section 6.13(a).  “Acquisition” shall have the meaning given to such term in Section 6.13(a).  “Affiliate” shall mean, as to any person: (i) each other person that directly, or indirectly through one or more  intermediaries, controls or is controlled by or is under common control with the person specified and (ii) any officer,  director, manager, or general partner of such person.  “Control” means the possession, directly or indirectly, of the  power to direct or cause the direction of the management or policies of a person, whether through the ability to exercise  voting power, by contract or otherwise.  “Controlling” and “controlled” have meanings correlative thereto.  A person  shall be deemed to be controlled by another person if such other person beneficially owns or holds directly or  indirectly, 10% or more of the voting control or equity interests of such Person.  “Availability Period” shall mean the period commencing on the date hereof until the Conversion Date.  “Borrowing Base” shall mean the sum of (a) eighty percent (80%) of Eligible Accounts, and (b) the lesser  of (i) fifty percent (50%) of Eligible Inventory or (ii) $3,000,000.00.  “Borrowing Base Certificate” shall mean a borrowing base certificate in the form of Exhibit “A”.  “Business Day” shall mean any day on which Bank is open for commercial banking business in Houston,  Texas..  “Capitalized Lease Obligations” means, for any Person, the obligations of such Person to pay rent or other  amounts under a lease of (or other agreement conveying the right to use) real and/or personal property, which  obligations, in accordance with GAAP, are required to be classified and accounted for as a capital lease on a balance  sheet of any such Person.  “Cash Flow Leverage Ratio” means for Parent and its Subsidiaries, on a consolidated basis, as of any date  (a) Net Debt, divided by (b) EBITDA for the period ended as of such date on a trailing twelve (12) month basis.  “Collateral” shall mean all the assets, property and interests in property that shall from time to time be  pledged or be purported to be pledged as direct or indirect security for any of the Obligations pursuant to any one or  more of the Security Documents, other Loan Documents, or otherwise, including without limitation, all assets of  Borrower, including all tangible and intangible personal property, whether now owned or any time or from time to  time including without limitation all Equipment (including, without limitation, all motor vehicles) all Accounts  (including without limitation, all Healthcare Insurance Receivables), all Inventory (including, without limitation  returned or repossessed goods), all Chattel Paper (including, without limitation, Electronic Chattel Paper), all General  Intangibles (including without limitation all Payment Intangibles), all Investment Property, all Documents, all  Instruments, all Deposit Accounts, money, cash or cash equivalents, Supporting Obligations, Letter of Credit Rights,  and the Mortgaged Property. In the event of any inconsistency between this definition and the definition of Collateral  in any Security Document, such Security Document shall control.  

 

AMENDED AND RESTATED LOAN AGREEMENT – Page 3  “Collateral Access Agreement” shall mean a landlord waiver, subordination, bailee letter, or  acknowledgement agreement of any lessor, warehouseman, processor, consignee, or other Person in possession of,  having a Lien upon, or having rights or interests in the Collateral, in each case, in form and substance satisfactory to  Bank.  “Compliance Certificate” shall mean a Compliance Certificate in the form of Exhibit B.  “Conversion Date” shall mean March 18, 2025.  “Credit Facility” shall mean the loans and lines of credit described in Article Two hereof.  “Credit Facility Fees” shall mean, collectively, the Facility A Fee, the Facility B Fee, the Facility A Unused  Line Fee, and the Facility B Unused Line Fee.  “Debt Service Coverage Ratio” means for Parent and its Subsidiaries, on a consolidated basis, as of any  date (a) EBITDA for the period ended as of such date minus the aggregate Restricted Payments for the period ended  as of such date, divided by (b) the sum of (i) Principal Payments Scheduled for the corresponding period ended as of  such date, plus (ii) Interest Expense for the corresponding period ended as of such date.  “Default Condition” shall mean any event or condition that, with the passage of time or giving of notice, or  both, would constitute an Event of Default.  “Domestic Person” means a Person that is a citizen of or organized under the laws of the United States or  any State thereof or under the laws of the District of Columbia.  “Domestic Subsidiary” means any Subsidiary of Borrower, whether presently or hereafter created or  existing, that is organized and existing under the laws of the United States or any state or commonwealth thereof or  under the laws of the District of Columbia; provided that if such Subsidiary does not exist on the date of this  Agreement, Borrower and such Subsidiary shall satisfy the provisions of Section 6.14 with respect to such Subsidiary.  “EBITDA” means for Parent and its Subsidiaries, on a consolidated basis for any period, the sum of (a) Net  Income for such period, plus (b) without duplication and to the extent deducted in determining such Net Income (i)  Interest Expense for such period, plus (ii) Income Tax Expense for such period, plus (iii) depreciation and amortization  for such period, plus (iv) all other non-cash and/or non-recurring expenses subject to approval of Bank, and less (v)  all other non-cash and/or non-recurring income. Non-cash and/or non-recurring expenses include, among other items,  one-time acquisition costs, including legal fees, investment banker fees, accounting fees and recording fees. For the  avoidance of doubt, EBITDA shall include all historical cash flow for such period of any Target Company that  becomes a Subsidiary during such period..  “Eligible Account” shall mean “Accounts” (as that term is defined in the Texas Uniform Commercial Code)  owned by Borrower subject to a first security interest in favor of Bank that are acceptable and approved by Bank from  time to time as accounts eligible to be used as a basis for an advance under the Facility B Line of Credit to Borrower.   Without limiting Bank’s discretion to deem an account unacceptable, the following shall not be an Eligible Account:  (i) any account which has remained unpaid for more than 90 days from the date of invoice, (ii) all accounts due from  any particular Account Debtor when that portion of the Account Debtor’s which has remained unpaid for more than  90 days from the date of invoice exceeds 10% of the total amount outstanding from that particular account debt, unless  approved by Bank,  (iii) any account subject to a set off or disputed by the Account Debtor of the account, (iv) any  account with respect to which Borrower has extended the time for payment without the consent of Bank, (v) any  account owed by an Account Debtor who is not located within the United States within the meaning of the Texas  Uniform Commercial Code or which is not organized under the laws of the United States, unless secured by an  acceptable letter of credit subject to a first security interest in favor of Bank, (vi) any account which is owed by any  parent, subsidiary, affiliate, related company or shareholder of Borrower, (vii) any account due from the United States  or any agency thereof, (viii) any account in which Borrower owes or will owe any obligation to the Account Debtor  of such account, (ix) any account which separately or aggregated with other account(s) represents a relatively large  concentration to one company, typically greater than 20% of total accounts unless approved by Bank; (x) any account  

 

AMENDED AND RESTATED LOAN AGREEMENT – Page 4  due on consigned goods, and (xi) any account arising from retainage(s) against billing(s); and (xii) any account due  arising out of a bonded contract or any other contract which could create, or result in the creation of a lien on such  account. Notwithstanding the foregoing, Eligible Accounts shall include (a) Accounts not to exceed $500,000.00 at  any time that are owed by the United States of America or any department, agency or instrumentality thereof (the  “Government Receivables”) and for which the Federal Assignment of Claims Act shall have been complied with; and  (b) Accounts owed by the following entities: [REDACTED]; provided, however, that such Accounts shall not exceed  thirty percent (30%) of the Borrowing Base. Upon the request of Bank and each time that Borrower requests an  advance under the Facility B Line of Credit, Borrower shall furnish Bank a certificate in such form as Bank may  require along with a current aging of accounts evidencing the amounts owed thereon and the parties liable thereon.  “Eligible Inventory” shall mean Inventory of a Borrower which is acceptable to Bank in its sole discretion  determined in good faith for lending purposes.  Without limiting Bank’s discretion, Bank shall, in general, consider  Inventory to be Eligible Inventory if it meets, and so long as it continues to meet, the following requirements:  (i) it is owned by a Borrower, such Borrower has the right to subject it to a security interest in  favor of Bank and it is subject to a first priority perfected security interest in favor of Bank and to no other  claim, lien, security interest or encumbrance whatsoever;  (ii) it is located on one of the premises of a Borrower listed on Schedule 4.03 (or other locations  of which Bank has been advised in writing pursuant to the terms hereof) such locations are within the United  States and are acceptable to Bank, and it is not in transit;  (iii) if held for sale or lease or furnishing under contracts of service, it is (except as Bank may  otherwise consent in writing) new and unused and free from defects which would, in Bank’s sole  determination determined in good faith, affect its market value;  (iv) it is not stored with a bailee, consignee, warehouseman, processor or similar party unless  Bank has given its prior written approval and the Borrower has caused any such bailee, consignee,  warehouseman, processor or similar party to issue and deliver to Bank, in form and substance acceptable to  Bank, such Uniform Commercial Code financing statements, warehouse receipts, waivers and other  documents as Bank shall require;  (v) it is produced in compliance with the Fair Labor Standards Act and is not subject to the  “hot goods” provisions contained in 29 USC 215(a)(i), and otherwise complies in all material respects with  all standards imposed by any applicable governmental entity having authority over the disposition,  manufacture or use of that Inventory;  (vi) Bank has determined in good faith, in accordance with Bank’s customary business  practices, that it is not unacceptable due to age, type, category or quantity;  (vii) it is not Inventory (A) with respect to which any of the representations and warranties  contained in this Agreement are untrue; or (B) which violates any of the covenants of Borrower contained in  this Agreement; and  (viii) it is valued at the lower of (A) the cost of each item of Inventory, or (B) its market value.  “Entity” or “Entities” shall mean, in the singular, a Person that is not a natural person and in the plural  Persons that are not natural persons.  “Environmental Laws” shall mean any and all federal, state and local laws, statutes, ordinances, rules,  regulations, permits, licenses, approvals, rules of common law and orders of courts or any Governmental Authority,  relating to the protection of human health or occupational safety or the environment, now or hereafter in effect and in  each case as amended from time to time, including, without limitation, requirements pertaining to the manufacture,  processing, distribution, use, treatment, storage, disposal, transportation, handling, reporting, licensing, permitting,  investigation or remediation of Hazardous Substances, including, without limitation, the following federal laws: the  

 

AMENDED AND RESTATED LOAN AGREEMENT – Page 5  Resource Conservation Recovery Act, the Comprehensive Environmental Response Compensation and Liability Act,  the Superfund Amendments and Reauthorization Act, the Toxic Substances Control Act, the Hazardous Materials  Transportation Act, the Clean Air Act, and the Clean Water Act.  “Environmental Liability” shall mean any liability, contingent or otherwise (including any liability for  damages, costs of environmental investigation and remediation, costs of administrative oversight, fines, natural  resource damages, penalties or indemnities) of any Loan Party directly or indirectly resulting from or based upon (i)  any actual or alleged violation of any Environmental Law, (ii) the generation, use, handling, transportation, storage,  treatment or disposal of any Hazardous Substances, (iii) any actual or alleged exposure to any Hazardous Substances,  (iv) the release or threatened release of any Hazardous Substances or (v) any contract, agreement or other consensual  arrangement pursuant to which liability is assumed or imposed with respect to any of the foregoing.  “Equity Interests” means with respect to any Person, the shares, interests, participations, or other equivalents  (however designated) of corporate stock, membership interests or partnership interests (or any other ownership  interests) of such Person.  “ERISA Event” shall mean (i) any “reportable event”, as defined in Section 4043 of ERISA or the  regulations issued thereunder with respect to an employee benefit (“Plan”) (other than an event for which the 30-day  notice period is waived); (ii) the existence with respect to any Plan of an “accumulated funding deficiency” (as defined  in Section 412 of the Code or Section 302 of ERISA), whether or not waived; (iii) the filing pursuant to Section 412(d)  of the Code or Section 303(d) of ERISA of an application for a waiver of the minimum funding standard with respect  to any Plan; (iv) the incurrence by Borrower or Loan Party of any liability under Title IV of ERISA with respect to  the termination of any Plan; (v) the receipt by Borrower or any Loan Party from the PBGC or a plan administrator  appointed by the PBGC of any notice relating to an intention to terminate any Plan or Plans or to appoint a trustee to  administer any Plan; (vi) the incurrence by Borrower or any Loan Party of any liability with respect to the withdrawal  or partial withdrawal from any Plan or Multiemployer Plan; or (vii) the receipt by Borrower or any Loan Party of any  notice, or the receipt by any multiemployer plan, as defined in ERISA, from Borrower or any Loan Party of any notice,  concerning the imposition of withdrawal liability or a determination that a Multiemployer Plan is, or is expected to  be, insolvent or in reorganization, within the meaning of Title IV of ERISA.  “Facility A Line of Credit Commitment” shall mean $30,000,000.00.  “Facility B Line of Credit Commitment” shall mean $6,000,000.00.  “Facility A Note” shall mean that certain Commercial Line of Credit Note of even date herewith, executed  by Borrower in favor of Bank, in the maximum principal amount of the Facility A Line of Credit Commitment,  evidencing the Facility A Line of Credit.  “Facility B Note” shall mean that certain Amended and Restated Commercial Line of Credit Note of even  date herewith, executed by Borrower in favor of Bank, in the maximum principal amount of the Facility B Line of  Credit Commitment, evidencing the Facility B Line of Credit, which amends and restates that certain Commercial  Note dated March 29, 2017, executed by Compliance in favor of Bank.  “Facility C Note” shall mean that certain Amended and Restated Commercial Term Note of even date  herewith, in the principal amount of $1,900,300.00, executed by Borrower in favor of Bank, which amends and restates  that certain Commercial Term Note dated August 21, 2019, in the maximum principal amount of $1,997,500.00,  executed by Compliance and Environmental in favor of Bank.  “Facility D Note” shall mean that certain Commercial Term Note dated January 22, 2021, in the maximum  principal amount of $873,000.00, executed by Properties in favor of Bank.  “Field Audits” means audits, verifications and inspections of (a) the Collateral, (b) the accounting and  financial processes and procedures of Borrower and its Subsidiaries, (c) the financial condition of Borrower and its  Subsidiaries, (d) the books, records and documents of Borrower and its Subsidiaries, and (e) such other items,  

 

AMENDED AND RESTATED LOAN AGREEMENT – Page 6  documents and matters related to Borrower and its Subsidiaries as Bank may request or desire, in each case conducted  by a Person (who may be an employee of Bank or who may be independent) satisfactory to Bank.  “Financial Officer” shall mean, with respect to Borrower, the vice president of finance, chief financial  officer, principal accounting officer or treasurer of Borrower.  “Fiscal Year” shall mean any fiscal year of the Borrower.  “GAAP” shall mean generally accepted accounting principles in the United States.  “Governmental Authority” shall mean any nation or government, any state or local government political  subdivision thereof, any agency, authority, instrumentality, regulatory body, court, administrative tribunal, central  bank or other entity exercising executive, legislative, judicial, taxing, regulatory or administrative powers or functions  of or pertaining to government, and any corporation or other entity owned or controlled, through stock or capital  ownership or otherwise, by any of the foregoing.  “Hazardous Substances” shall mean any substances or materials (i) that are or become defined as hazardous  wastes, hazardous substances, pollutants, contaminants or toxic substances under any applicable Environmental Law,  (ii) that are defined by any applicable Environmental Law as toxic, explosive, corrosive, ignitable, infectious,  radioactive, carcinogenic, mutagenic, or otherwise hazardous (iii) the presence of which require investigation,  removal, remediation or any other response of any kind under any applicable Environmental Law or causes or  threatens to cause a nuisance upon any property of a Loan Party or to any adjacent properties or poses or threatens to  pose a hazard to the health or safety of persons on or about any such property, (iv) that consist of underground or  aboveground storage tanks, whether empty, filled or partially filled with any substance, or (v) that contain, without  limitation, asbestos, polychlorinated biphenyls, urea formaldehyde foam insulation, petroleum hydrocarbons,  petroleum derived substances or wastes, crude oil, nuclear fuel, natural gas, synthetic gas, radon gas, radioactive  materials, or isotopes.  “Hedging Obligations” of any Person shall mean any and all obligations of such Person, whether absolute  or contingent and howsoever and whomsoever created, arising, evidenced or acquired under (i) any and all Hedging  Transactions, (ii) any and all cancellations, buy backs, reversals, terminations or assignments of any Hedging  Transactions and (iii) any and all renewals, extensions and modifications of any Hedging Transactions and any and  all substitutions for any Hedging Transactions, and shall include without limitation any Rate Management Obligations.  “Hedging Transaction” of any Person shall mean any transaction (including an agreement with respect  thereto) now existing or hereafter entered into by such Person that is a rate swap, basis swap, forward rate transaction,  commodity swap, interest rate option, foreign exchange transaction, cap transaction, floor transaction, collateral  transaction, forward transaction, currency swap transaction, cross-currency rate swap transaction, currency option or  any other similar transaction (including any option with respect to any of these transactions) or any combination  thereof, whether linked to one or more interest rates, foreign currencies, commodity prices, equity prices or other  financial measures and shall include without limitation any transaction evidenced by any Rate Management  Agreement.  “Income Tax Expense” means for Parent and its Subsidiaries, on a consolidated basis for any period, all  state and federal income tax expenses for such period, determined in accordance with GAAP.  “Indebtedness” of any Person shall mean, without duplication (i) all obligations of such Person for borrowed  money, (ii) all obligations of such Person evidenced by bonds, debentures, notes or other similar instruments, (iii) all  obligations of such Person in respect of the deferred purchase price of property or services (other than (A) trade  payables incurred in the ordinary course of business not more than ninety (90) days past due and (B) and accrued  obligations), (iv) all obligations of such Person under any conditional sale or other title retention agreement(s) relating  to property acquired by such Person (other than accrued obligations), (v) all Capitalized Lease Obligations of such  Person, (vi) all obligations, contingent or otherwise, of such Person in respect of letters of credit, acceptances or similar  extensions of credit, (vii) all guaranties of such Person of the type of Indebtedness described in clauses (i) through (vi)  above, (viii) the value of property owned by such Person securing the Indebtedness of a third party, whether or not  

 

AMENDED AND RESTATED LOAN AGREEMENT – Page 7  such Indebtedness has been assumed by such Person, (ix) all obligations of such Person, contingent or otherwise, to  purchase, redeem, retire or otherwise acquire for value any common stock of such Person, (x) all off-balance sheet  liabilities or such Person and (xi) all Net Mark-to-Market Exposure in respect of all Hedging Obligations of such  Person. The Indebtedness of any Person shall include the Indebtedness of any partnership or joint venture in which  such Person is a general partner or a joint venturer, except to the extent that the terms of such Indebtedness provide  that such Person is not liable therefor.  “Interest Expense” means for Parent and its Subsidiaries, on a consolidated basis, for any period, the sum  of all interest expense paid or required by its terms to be paid during such period, as determined in accordance with  GAAP.  “Lien” shall mean any mortgage, pledge, hypothecation, assignment, security interest, lien (statutory or  otherwise), preference, priority, charge or other encumbrance of any nature, whether voluntary or involuntary,  including, without limitation, the interest of any vendor or lessor under any conditional sale agreement, title retention  agreement, capital lease or any other lease or arrangement having substantially the same effect as any of the foregoing.  “Loan Documents” shall mean, collectively, this Agreement, the Notes, the Security Documents, any Rate  Management Agreement, and all other agreements, instruments, documents and certificates now or hereafter executed  and delivered to the Bank by or on behalf of any Loan Party with respect to this Agreement and the transactions  contemplated hereby, in each case as amended, modified, supplemented or restated from time to time.  “Loans” means the collective reference to the Facility A Line of Credit, the Facility B Line of Credit, the  Facility C Term Loan, and the Facility D Term Loan, and “Loan” means any of such Loans.  “Material Adverse Effect” shall mean a material adverse effect on (a) the business, operations, property or  condition (financial or otherwise) of Borrower and its Subsidiaries, taken as a whole, (b) the ability of Borrower to  pay the Obligations or the ability of Borrower to perform its respective obligations under this Agreement or any of the  other Loan Documents or (c) the validity or enforceability of this Agreement or any of the other Loan Documents, or  the rights or remedies of Bank hereunder or thereunder.  “Material Indebtedness” shall mean Indebtedness (other than the Credit Facility and Rate Management  Obligations, if any) and Hedging Obligations of any Loan Party, individually or in an aggregate principal amount  exceeding $250,000.  For purposes of determining the amount of attributed Indebtedness from Hedging Obligations,  the “principal amount” of any Hedging Obligations at any time shall be the Net Mark-to-Market Exposure of such  Hedging Obligations.  “Maturity Date” shall mean, as applicable, (i) with respect to Facility A and Facility B, March 18, 2027, (ii)  with respect to Facility C, August 21, 2024, and (iii) with respect to Facility D, January 22, 2026.  “Merger” shall have the meaning given to such term in Section 6.13(a).  “Mortgage” shall mean, individually and collectively as the context shall require, the Pennsylvania Mortgage  and the Texas Mortgage.   “Mortgaged Property” shall mean, individually and collectively as the context shall require, the  Pennsylvania Mortgaged Property and the Texas Mortgaged Property.   “Net Debt” means, for Parent and its Subsidiaries for any period, the sum of (a) all outstanding Indebtedness,  minus (b) the aggregate cash held by Parent and its Subsidiaries greater than $2,000,000.00.  “Net Income” means, for Parent and its Subsidiaries for any period, the consolidated net income (or loss) of  Parent and its Subsidiaries for such period, as determined in accordance with GAAP.  “Net Mark-to-Market Exposure” of any Person shall mean, as of any date of determination with respect to  any Hedging Obligation, (i) for any Hedging Transaction which has been closed out and termination values determined  

 

AMENDED AND RESTATED LOAN AGREEMENT – Page 8  in accordance therewith, such termination values; and (ii) for any other Hedging Transaction, the excess (if any) of all  unrealized losses over all unrealized profits of such Person arising from such Hedging Obligation.  “Unrealized losses”  shall mean the fair market value of the cost to such Person of replacing the Hedging Transaction giving rise to such  Hedging Obligation as of the date of determination (assuming the Hedging Transaction were to be terminated as of  that date), and “unrealized profits” means the fair market value of the gain to such Person of replacing such Hedging  Transaction as of the date of determination (assuming such Hedging Transaction were to be terminated as of that date).  “Notes” shall mean collectively the Facility A Note, the Facility B Note, the Facility C Note, and the Facility  D Note, and “Note” means any of such Notes.  “Obligations” shall mean (a) all amounts owing by any of the Loan Parties to Bank pursuant to or in  connection with the Notes, this Agreement or any other Loan Document or otherwise with respect to the Credit  Facility, including without limitation, all principal, interest (including any interest accruing after the filing of any  petition in bankruptcy or the commencement of any insolvency, reorganization or like proceeding relating to any Loan  Party, whether or not a claim for post-filing or post-petition interest is allowed in such proceeding), all reimbursement  obligations, fees, expenses, indemnification and reimbursement payments, costs and expenses (including all fees and  expenses of counsel to Bank incurred pursuant to the Notes, this Agreement or any other Loan Document), whether  direct or indirect, absolute or contingent, liquidated or unliquidated, now existing or hereafter arising hereunder or  thereunder, (b) all Rate Management Obligations, (c) all Treasury Management Obligations, (d) any obligations under  any purchasing card or credit card account established for a Loan Party by Bank or any affiliate of Bank, and (e) all  other indebtedness of whatever kind arising of any Loan Party to Bank or any affiliate of Bank, together with all  renewals, extensions, modifications or refinancings of any of the foregoing.  “Organizational Documents” shall mean as to any Person which is not a natural person, the documents  and/or instruments creating and/or governing the formation or operation of such Person, including without limitation  such documents required to be filed with any Governmental Authority having jurisdiction over the creation or  formation of such Person and including without limitation, articles of incorporation, bylaws, shareholder agreements,  voting trust agreements, articles of organization, operating agreements, management agreements, certificates of  limited partnership, partnership agreements, statements of qualification, trust agreements or indentures or other  agreements or instruments as appropriate for such Person.  “Overadvance” shall mean any circumstance where the principal amount outstanding under the Facility B  Line of Credit exceeds the Borrowing Base.  “Parent” means Sharps Compliance Corp., a Delaware corporation, and its successors and assigns.   “Pennsylvania Mortgage” shall mean that certain Mortgage, Security Agreement, and Fixture Filing made  and executed January 20, 2021, effective January 22, 2021, from Properties in favor of Bank, and recorded on January  26, 2021 as Instrument Number 202100783 in the Recorder of Deeds Office of Carbon County, Pennsylvania,  encumbering the Pennsylvania Mortgaged Property and securing the Credit Facility and other Obligations, as the same  may be amended, modified, restated or supplemented at any time or from time to time.  “Pennsylvania Mortgaged Property” shall mean that certain real property and all improvements thereon,  at any time or from time to time, which real property is described on Exhibit C-1 and which is encumbered by the  Pennsylvania Mortgage in order to secure the Credit Facility and other Obligations.  “Permitted Encumbrances” shall mean: (i) Liens imposed by law for taxes, assessments or charges or levies  of any Governmental Authority not yet due or which are being contested in good faith by appropriate proceedings and  with respect to which adequate reserves are being maintained in accordance with GAAP; (ii) pledges, Liens and  deposits made in the ordinary course of business in compliance with workers’ compensation, unemployment insurance  and other social security laws or regulations; (iii) deposits or Liens to secure the performance of bids, trade contracts,  leases, statutory obligations, surety and appeal bonds, performance bonds and other obligations of a like nature, in  each case in the ordinary course of business; (iv) easements, zoning restrictions, rights-of-way and similar  encumbrances on real property imposed by law or arising in the ordinary course of business that do not secure any  monetary obligations and do not materially detract from the value of the affected property or materially interfere with  the ordinary conduct of business of Borrower, including without limitation those items set forth in the Mortgage as  

 

AMENDED AND RESTATED LOAN AGREEMENT – Page 9  “Permitted Encumbrances”; (v) extensions, renewals or replacements of any Lien referred to in paragraphs (i) through  (iv) above, provided that the principal amount of the obligation secured thereby is not increased and that any such  extension, renewal or replacement is limited to the property originally encumbered thereby; (vi) statutory Liens on  deposit accounts maintained with, or other property in the custody of, a depositary bank pursuant to its general business  terms and in the ordinary course of business, provided that such Liens do not secure any Indebtedness; (vii) Liens in  respect of judgments that would not result in an Event of Default under this Agreement; (viii) Liens consisting of  pledges and deposits in the ordinary course of business securing liability for reimbursement or indemnification  obligations to (including obligations in respect of letters of credit or bank guarantees for the benefit of) insurance  carriers providing property, casualty or liability insurance to any Loan Party not to exceed at any time or from time to  time the sum of $5,000.00 in the aggregate; (x) Liens that are contractual rights of set-off relating to purchase orders  and other agreements entered into with customers of Borrower in the ordinary course of business; and (xi) Liens  arising out of conditional sale, title retention, consignment or similar arrangements for sale of goods entered into by  Borrower in the ordinary course of business or Liens arising by operation of law under Article 2 of the UCC in favor  of a reclaiming seller of goods or buyer of goods.  “Permitted Investments” shall mean: (i)  direct obligations of, or obligations the principal of and interest  on which are unconditionally guaranteed by, the United States (or by any agency thereof to the extent such obligations  are backed by the full faith and credit of the United States), in each case maturing within one year from the date of  acquisition thereof; (ii) commercial paper having the highest rating, at the time of acquisition thereof, of S&P or  Moody’s and in either case maturing within six months from the date of acquisition thereof; (iii) certificates of deposit,  bankers’ acceptances and time deposits maturing within 180 days of the date of acquisition thereof issued or  guaranteed by or placed with, and money market deposit accounts issued or offered by, any domestic office of any  commercial bank organized under the laws of the United States or any state thereof which has a combined capital and  surplus and undivided profits of not less than $500,000,000; (iv) fully collateralized repurchase agreements with a  term of not more than 30 days for securities described in clause (i) above and entered into with a financial institution  satisfying the criteria described in clause (iii) above; and (v) mutual funds investing solely in any one or more of the  Permitted Investments described in the foregoing clauses (i) through (iv).    “Person” shall mean any natural person, corporation, association, joint venture, partnership, limited liability  company, company, association, trust, Governmental Authority or other entity.  “Principal Payments Scheduled” means, for Parent and its Subsidiaries, on a consolidated basis, for any  period, that portion of the Indebtedness of the Parent and its Subsidiaries which was due to be paid during such period,  including, in the case of Indebtedness consisting of Capitalized Lease Obligations, the amount which was due to be  paid during such period on such Capitalized Lease Obligations.  “Rate Management Agreement” shall mean any agreement, device or arrangement providing for payments  which are related to fluctuations of interest rates, exchange rates, forward rates, or equity prices, including, but not  limited to, dollar-denominated or cross-currency interest rate exchange agreements, forward currency exchange  agreements, interest rate cap or collar protection agreements, forward rate currency or interest rate options, puts and  warrants, and any agreement pertaining to equity derivative transactions (e.g., equity or equity index swaps, options,  caps, floors, collars and forwards), including without limitation any ISDA Master Agreement between any Loan Party  and Bank or any affiliate of Bank, and any schedules, confirmations and documents and other confirming evidence  between the parties confirming transactions thereunder, all whether now existing or hereafter arising, and in each case  as amended, modified or supplemented from time to time.     “Rate Management Obligations” shall mean any and all obligations of any Loan Party to Bank or any  affiliate of Bank, whether absolute, contingent or otherwise and howsoever and whensoever (whether now or  hereafter) created, arising, evidenced or acquired (including all renewals, extensions and modifications thereof and  substitutions therefor), under or in connection with (i) any and all Rate Management Agreements, and (ii) any and all  cancellations, buy-backs, reversals, terminations or assignments of any Rate Management Agreement.  “Responsible Officer” shall mean with respect to any Loan Party which is an Entity any of the president,  the chief executive officer, the chief operating officer, the chief financial officer, the treasurer or a vice president or a  manager or managing member  or a general partner or managing general partner of such Loan Party or such other  representative of such Loan Party as may be designated in writing by any one of the foregoing with the consent of  

 

AMENDED AND RESTATED LOAN AGREEMENT – Page 10  Bank; and, with respect to the financial covenants only, the chief financial officer or the treasurer of such Loan Party.   Any document delivered in connection with this Agreement or any of the other Loan Documents that is signed by a  Responsible Officer of a Loan Party shall be conclusively presumed to have been authorized by all necessary  corporate, partnership or other entity action on the part of such Loan Party and such Responsible Officer shall be  conclusively presumed to have acted on behalf of such Loan Party.  “Restricted Payment” means (a) any dividend or other distribution, direct or indirect, on account of any  shares of any class of stock or other equity interest of any Loan Party now or hereafter outstanding; (b) any redemption,  conversion, exchange, retirement or similar payment, purchase or other acquisition for value, direct or indirect, or any  shares of any class of stock or other equity interest of any Loan Party now or hereafter outstanding; and (c) any  payment made to retire, or to obtain the surrender of, any outstanding warrants, options or other rights to acquire  shares of any class of stock or other equity interest of a Loan Party now or hereafter outstanding.  “Security Agreement” shall mean the Security Agreement, made by the Borrower in favor of Bank dated  on or about the date hereof, pursuant to which Borrower has granted to Bank a security interest in and to the Collateral  described therein, as amended, modified, restated or supplemented at any time or from time to time.  “Security Documents” shall mean the Security Agreement, the Mortgage, and all other pledge or security  agreements, mortgages, deeds of trust, assignments or other similar agreements or instruments executed and delivered  by any of the Loan Parties securing any or all of the Obligations or otherwise in connection with the transactions  contemplated hereby, in each case as amended, modified or supplemented from time to time.  “Subsidiary” shall mean, with respect to any Person, any corporation or other Person of which more than  fifty percent (50%) of the outstanding capital stock or other equity interests having ordinary voting power to elect a  majority of the board of directors, board of managers or other governing body of such Person, is at the time, directly  or indirectly, owned or controlled by such Person and one or more of its other Subsidiaries or a combination thereof  (irrespective of whether, at the time, securities of any other class or classes of any such corporation or other Person  shall or might have voting power by reason of the happening of any contingency).  “Supporting Obligation” shall have the meaning ascribed to such term in the UCC.  “Target Company” shall mean either (a) a Person from which Borrower will acquire all, or substantially all,  of its assets, or (b) a Person in which Borrower will acquire all the Equity Interest of.  “Texas Mortgage” shall mean that certain Deed of Trust, Assignment of Rents, and Security Agreement  dated August 21, 2019, from Environmental in favor of Bank, and recorded on September 9, 2019, as Document  Number 219607, Book OR, Volume 2043, Page 422, in the Official Public Records of Panola County, Texas,  encumbering the Texas Mortgaged Property and securing the Credit Facility and other Obligations, as the same may  be amended, modified, restated or supplemented at any time or from time to time.  “Texas Mortgaged Property” shall mean that certain real property and all improvements thereon, at any  time or from time to time, which real property is described on Exhibit C-2 and which is encumbered by the  Pennsylvania Mortgage in order to secure the Credit Facility and other Obligations.  “Treasury Management Obligations” shall mean, collectively, all obligations and other liabilities of any  Loan Party owing to Bank or any affiliate of Bank pursuant to any agreements governing the provision to such Loan  Party of treasury or cash management services, including deposit accounts, funds transfer, automated clearing house,  zero balance accounts, returned check concentration, controlled disbursement, lockbox, account reconciliation,  purchasing cards and reporting and trade finance services.  “UCC” shall mean the Uniform Commercial Code as in effect in each applicable jurisdiction as amended or  modified from time to time.  1.02 Accounting Terms and Determinations. Unless otherwise defined or specified herein, all  accounting terms used herein shall be interpreted, all accounting determinations hereunder shall be made, and all  

 

AMENDED AND RESTATED LOAN AGREEMENT – Page 11  financial statements required to be delivered hereunder shall be prepared, in accordance with GAAP as in effect from  time to time, applied on a consistent basis or other standard acceptable to Bank.   1.03 Internal References.  Unless otherwise specified or unless the context otherwise requires, all  references herein to sections, annexes, schedules and exhibits are references to sections, annexes, schedules and  exhibits in and to this Agreement, and all terms defined in this Agreement shall have the defined meanings when used  in any other Loan Document or any certificate or other document made or delivered pursuant hereto.  ARTICLE TWO  CREDIT FACILITY  2.01 Facility A.  (a) Facility A Line of Credit. Subject to the terms of this Agreement, Bank agrees to make available  to Borrower a non-revolving line of credit (the “Facility A Line of Credit”) to Borrower, subject to the terms and  conditions of this Agreement. Borrower may borrow, on a non-revolving basis, advances not to exceed the Facility A  Line of Credit Commitment, in the aggregate, such that the amount available to be advanced under the Facility A Line  of Credit Commitment is reduced by the amount of each advance and is not increased as a result of any payments or  prepayments which reduce the unpaid principal balance of the Facility A Line of Credit. Advances under the Facility  A Line of Credit shall be made during the Availability Period. On the Conversion Date, all of Bank's obligations to  make any advance on the Facility A Line of Credit shall cease, and the Facility A Line of Credit shall automatically,  without the necessity of any further act on the part of either Bank or Borrower, convert to a term loan in a principal  amount equal to the aggregate outstanding principal balance of all advances made by Bank to the Borrower under the  Facility A Line of Credit during the Availability Period, and bear interest at the rate or rates specified in the Facility  A Note from the Conversion Date until paid, and shall be payable in monthly installments of principal plus interest as  specified in the Facility A Note, commencing on April 1, 2025, and continuing on the same day of each succeeding  month, with a final installment in the amount of the remaining unpaid balance of principal and interest due and payable  on the Maturity Date. The amount of each monthly installment of principal plus interest shall be calculated based on  a five (5) year straight line amortization of the aggregate outstanding principal balance due under the Facility A Line  of Credit on the Conversion Date. The Facility A Line of Credit shall be evidenced by the Facility A Note, which shall  be executed and delivered simultaneously with the execution and delivery of this Agreement, and shall accrue interest  as provided in and as payable under the Facility A Note, with principal to be payable under and pursuant to the Facility  A Note at its maturity on the Maturity Date, or as may be otherwise provide in the Facility A Note.  Notwithstanding  anything to the contrary, no advance under the Facility A Line of Credit shall exceed seventy-five percent (75%) of  the purchase price of the Target Company’s assets or of the Equity Interests of the Target Company to be acquired  with the proceeds of such advance.   (b) Facility A Line of Credit Fees.  (i) Facility A Fee. Borrower shall unconditionally pay to Bank a fee (the “Facility  A Fee”) of $90,000, which is due and payable in full in good collected funds as of the date of the  execution and delivery of this Agreement.  (ii) Facility A Unused Line Fee.  Borrower shall unconditionally pay to Bank a fee  (the “Facility A Unused Line Fee”) equal to 0.25% per annum of the unused portion of the Facility  A Line of Credit.  The unused portion of the Facility A Line of Credit shall be the difference between  the Facility A Line of Credit Commitment and the average daily outstanding principal balance of  the Facility A Line of Credit during each quarter (or portion thereof, as applicable), which fees shall  be calculated and payable quarterly, in arrears, on the basis of a year consisting of 360 days and the  actual number of days (including the first day, but excluding the last day) elapsed and payable on  the first day of each calendar quarter (January 1, April 1, July 1 and October 1).  (c) Procedure for Advances.  From time to time, and as a condition of each advance under the Facility  A Line of Credit, Borrower shall submit to Bank a Notice of Borrowing setting forth the principal amount of the  advance to be obtained by Borrower from Bank pursuant to the terms hereof, the amount of which requested advance  when added to the amount of all prior advances under the Facility A Line of Credit shall not exceed in any and all  

 

AMENDED AND RESTATED LOAN AGREEMENT – Page 12  events the Facility A Line of Credit Commitment.  So long as such Notice of Borrowing is received by the Bank and  all conditions precedent set forth in Section 3.02 herein are satisfied prior to 11:00 a.m. (Central time), such advance  can be made on the Business Day of receipt of such notice.  Unless otherwise indicated by the Borrower, each Notice  of Borrowing shall be irrevocable.  (d) Purpose.   The Facility A Line of Credit shall be used solely for business purposes (i) to refinance  acquisition related debt in an approximate amount of $130,000, and (ii) to finance the acquisition of all, or substantially  all, of the assets of Target Companies or all the Equity Interests of Target Companies up to a maximum amount of  seventy-five percent (75%) of the purchase price of each Target Company subject to pro-forma covenant compliance.  2.02 Facility B.  (a) Facility B Line of Credit. Subject to the terms of this Agreement, Bank agrees to make available  to Borrower a revolving line of credit (the “Facility B Line of Credit”) to Borrower, subject to the terms and  conditions of this Agreement. Borrower may borrow, re-pay and re-borrow on a revolving basis advances not to  exceed, in the aggregate outstanding at any one time or from time to time, the lesser of (i) the Facility B Line of Credit  Commitment or (ii) the Borrowing Base; provided, that if, at any time hereafter an Overadvance exists, without  limiting the right of Bank to declare an Event of Default, Borrower will immediately repay the Line of Credit by the  amount of such Overadvance. The Facility B Line of Credit shall be evidenced by the Facility B Note, which shall be  executed and delivered simultaneously with the execution and delivery of this Agreement, and shall accrue interest as  provided in and as payable under the Facility B Note, with principal to be payable under and pursuant to the Facility  B Note on the Maturity Date, or as may be otherwise provide in the Facility B Note.  (b) Facility B Line of Credit Fees.  (i) Facility B Fee. Borrower shall unconditionally pay to Bank a fee (the “Facility  B Fee”) of $18,000, which is due and payable in full in good collected funds as of the date of the  execution and delivery of this Agreement.  (ii) Facility B Unused Line Fee.  Borrower shall unconditionally pay to Bank a fee  (the “Facility B Unused Line Fee”) equal to 0.25% per annum of the unused portion of the Facility  B Line of Credit.  The unused portion of the Facility B Line of Credit shall be the difference between  the Facility B Line of Credit Commitment and the average daily outstanding principal balance of  the Facility B Line of Credit during each quarter (or portion thereof, as applicable), which fees shall  be calculated and payable quarterly, in arrears, on the basis of a year consisting of 360 days and the  actual number of days (including the first day, but excluding the last day) elapsed and payable on  the first day of each calendar quarter (January 1, April 1, July 1 and October 1).  (c) Procedure for Advances.  From time to time, and as a condition of each advance under the Facility  B Line of Credit, Borrower shall submit to Bank (i) a Notice of Borrowing setting forth the principal amount of the  advance to be obtained by Borrower from Bank pursuant to the terms hereof, the amount of which requested advance  when added to the amount of all prior advances under the Facility B Line of Credit shall not exceed in any and all  events the lesser of (x) the Facility B Line of Credit Commitment and (y) the Borrowing Base, and (ii) a then current  completed Borrowing Base Certificate executed by a Responsible Officer.  So long as such Notice of Borrowing and  Borrowing Base Certificate is received by the Bank prior to 11:00 a.m. (Central time), such advance can be made on  the Business Day of receipt of such notice.  Unless otherwise indicated by the Borrower, each Notice of Borrowing  shall be irrevocable.  (d) Purpose.   The Facility B Line of Credit shall be used solely for business purposes (i) to finance  general working capital, and (ii) issuance of letters of credit up to $1,000,000 subject to compliance with the  Borrowing Base.  (e) Letter of Credit Subfeature. As a subfeature under the Line of Credit, Bank may from time to time  issue letters of credit for the account of Borrower (each, a “Letter of Credit” and collectively, “Letters of Credit”);  provided, however, that (i) the form and substance of each Letter of Credit shall be subject to approval by Bank in its  

 

AMENDED AND RESTATED LOAN AGREEMENT – Page 13  sole and absolute discretion, (ii) Borrower shall execute and deliver any and all such applications, letter of credit  reimbursement agreements and/or other documents or instruments as Bank shall require, and (iii) Borrower shall pay  to Bank such fees as Bank normally and customarily charges for the issuance of Letters of Credit; and provided further  that the aggregate undrawn amount of all outstanding Letters of Credit shall not at any time exceed the lesser of (x)  $1,000,000.00 and (y) the Facility B Line of Credit Commitment less the total principal amount outstanding under the  Facility B Line of Credit.  Each Letter of Credit shall be issued for a term not to exceed 365 or 366, as applicable,  days, as designated by Borrower; provided, however, that no Letter of Credit shall have an expiration date subsequent  to the Maturity Date. The undrawn amount of all Letters of Credit plus any and all amounts paid by Bank in connection  with drawings under any Letter of Credit for which the Bank has not been reimbursed shall be reserved under the Line  of Credit and shall not be available for advances thereunder.  Each draft paid by Bank under a Letter of Credit shall  be deemed an advance under the Line of Credit without regard to the restriction in the immediately preceding sentence  and shall be repaid in accordance with the terms of the Line of Credit Note; provided however, that if the Line of  Credit is not available for any reason whatsoever, at the time any draft is paid by Bank, or if advances are not available  under the Facility B Line of Credit Commitment in such amount due to any limitation of borrowing set forth herein,  then the full amount of such drafts shall be immediately due and payable, together with interest thereon, from the date  such amount is paid by Bank to the date such amount is fully repaid by Borrower, at that rate of interest applicable to  advances under the Line of Credit Note.  (f) Accordion Feature.  (i) Request for Increase.  Borrower may, at any time for so long as the Facility B  Line of Credit Commitment hereunder has not been terminated and prior to the Maturity Date and  provided that no Event of Default or Default Condition has occurred and is continuing, request that  the Facility B Line of Credit Commitment be increased by an additional principal amount of up to  $4,000,000.00 ($10,000,000.00 in total) (each such requested increase being a “Commitment  Increase”) by written notice to Bank requesting such Commitment Increase.  Any such  Commitment Increase shall be subject to (i) submission to Bank of such information as Bank shall  request, (ii) underwriting by Bank, (iii) Bank’s written approval in its sole and absolute discretion  (i.e., it may grant or withhold such approval for any reason or for no reason whatsoever), and (iv)  such terms and conditions as Bank shall require in its sole and absolute discretion and nothing  contained herein shall constitute the agreement or commitment of, or impose any obligation on,  Bank to increase the Facility B Line of Credit Commitment by the amount of any such Commitment  Increase.  (ii) Effectiveness of Increase.  Any such Commitment Increase shall become  effective only upon (i) Bank’s agreement to a Commitment Increase in such amount, if any, as Bank  shall determine, and setting forth such terms and conditions with respect to such Commitment  Increase as Bank shall require in its sole and absolute discretion, (ii) satisfaction of conditions of  such Commitment Increase as Bank shall require, (iii) the Loan Parties’ execution and delivery of  such documents and/or instruments as Bank shall require in connection with such Commitment  Increase, including without limitation any supplement, restatement or amendment to this Agreement  or the other Loan Documents as shall be necessary to effectuate such Commitment Increase in  accordance with Bank’s agreement to provide the same, and such additional customary documents  and filings (including amendments to the Security Documents and title endorsement bringdowns),  (iv) Bank’s receipt of resolutions and other customary closing certificates and documentation as  required by Bank, consistent with those delivered as of the date of this Agreement, and (v) payment  of such additional fees as Bank shall determine as a condition of such Commitment Increase  provided such fees shall not exceed 30 bps of  the additional principal amount included in the  Commitment Increase and other reasonable third party fees and costs of Bank incurred in connection  with such Commitment Increase.  Each such Commitment Increase shall be secured by all of the  Collateral securing the Loans and upon any such Commitment Increase, the Facility B Line of Credit  Commitment will thereafter be increased by the amount of such Commitment Increase.  2.03 Facility C Term Loan.    

 

AMENDED AND RESTATED LOAN AGREEMENT – Page 14  (a) Facility C Term Loan. Subject to the terms of this Agreement, Bank has made, and Borrower has  taken, a term loan in the principal amount of $1,900,300.00, (the “Facility C Term Loan”) which shall be evidenced  by the Facility C Note and which shall accrue interest and be payable as to principal and interest as provided therein  with a final maturity on the Maturity Date.  (b) Purpose. The Facility C Term Loan was made solely for business purposes for the construction on  the Texas Mortgaged Property.  2.04 Facility D Term Loan.    (a) Term Loan. Subject to the terms of this Agreement, Bank has made, and Borrower has taken, a  term loan in the principal amount of $873,000.00, (the “Facility D Term Loan”) which is evidenced by the Facility  D Note and which shall accrue interest and be payable as to principal and interest as provided therein with a final  maturity on the Maturity Date.   (b) Purpose. The Facility D Term Loan was made solely for business purposes for the acquisition of  the Pennsylvania Mortgaged Property.  2.05 Lockboxes and Collections.  (a) Upon the occurrence of an Event of Default, Borrower will establish with Bank a restricted  depository account with Bank (the “Collection Account”), and enter into a lockbox arrangement with Bank pursuant  to a separate written Lockbox Services Agreement in such form as is required by Bank (a “Lockbox Agreement”)  for the purposes of  providing for collection of its Accounts and other rights to payment as provided in the Security  Agreement and in such Lockbox Agreement, and which Lockbox Agreement shall detail the methods of collection  and the application and disposition of Borrower’s Accounts, and other rights to payment provided, that if an Event of  Default has occurred and is continuing, all such collections shall be applied to the Credit Facility in such manner and  order as Bank shall determine in its sole and absolute discretion consistent with the Security Agreement.  (b) Upon the occurrence of an Event of Default, Borrower will cause all collections with respect to its  Accounts and any other rights to payment to be sent, and will direct all Account Debtors on such Accounts and other  rights of payment to send, directly to the lockbox (the “Lockbox”) established pursuant to the Lockbox Agreement.   In the event that Borrower receives any collections of its Accounts and other rights to payment, Borrower will,  promptly upon receipt and in any event within one Business Day of receipt, forward such collections directly to the  Lockbox in the form received and as otherwise provided in the Lockbox Agreement, and if requested by Bank, will  promptly notify Bank of such event.  (c) Collections received in the Lockbox shall be deposited into the Collection Account as provided in  the Lockbox Agreement.  (d) Except to the extent permitted by the Lockbox Agreement and the Security Agreement, Borrower  shall not withdraw any amounts from the accounts into which the collections remitted to the Lockbox are deposited,  nor shall Borrower change the procedures under the agreements governing the Lockbox and related accounts.  ARTICLE THREE  CONDITIONS TO CREDIT FACILITY  3.01 Conditions To Effectiveness.  The obligations of Bank to extend the Credit Facility shall not  become effective until the date on which each of the following conditions is satisfied:  (a) Bank shall have received all fees and other amounts due and payable on or prior to the date hereof,  including without limitation the Credit Facility Fees and reimbursement or payment of all out-of-pocket expenses  (including reasonable fees, charges and disbursements of counsel to Bank) required to be reimbursed or paid by  Borrower hereunder or under any other Loan Document.  

 

AMENDED AND RESTATED LOAN AGREEMENT – Page 15  (b) The Bank (or its counsel) shall have received the following (all of which shall be in form and  substance satisfactory to Bank in its sole discretion):  (i) this Agreement signed by or on behalf of each party hereto;  (ii) the duly executed Notes payable to the Bank;   (iii) the duly executed other Loan Documents, including without limitation, the  Security Documents;  (iv) certificates of the secretary, authorized officer, general partner, manager or  member of each Loan Party that is an Entity in form and substance acceptable to the Bank, attaching  and certifying copies of its Organizational Documents and authorizing resolutions or unanimous  written consents, as appropriate for each such Loan Party, authorizing the execution, delivery and  performance of the Loan Documents to which it is a party and certifying the name, title and true  signature of each officer, or other authorized representative, as applicable, of each such Loan Party  executing the Loan Documents to which it is a party;  (v) certificates of good standing, status, or existence, as applicable, from the Secretary  of State or other proper governmental office of the jurisdiction of organization of each Loan Party  that is an Entity and each other jurisdiction where any such Loan Party is required to be qualified to  do business as a foreign entity;  (vi) certified copies of all consents, approvals, authorizations, registrations and filings  and orders required or advisable to be made or obtained under any Requirement of Law in  connection with the execution, delivery, performance, validity and enforceability of the Loan  Documents, and such consents, approvals, authorizations, registrations, filings and orders shall be  in full force and effect and all applicable waiting periods shall have expired;  (vii) if applicable, duly executed payoff letters or other evidence satisfactory to the  Bank from Banks under any existing loans or credit facilities of Borrower; and  (viii) Collateral Access Agreements executed by each landlord or owner of property  leased to Borrower upon which more than $500,000 of Collateral comprising inventory, equipment,  furniture or fixtures is located;  (ix) a copy of, or a certificate as to coverage under, the insurance policies required by  the applicable provisions of the Security Documents, each of which shall be endorsed or otherwise  amended to include a customary Bank’s loss payable endorsement and to name the Bank as  additional insured, mortgagee or lender loss payee as appropriate and in form and substance  satisfactory to the Bank in its sole discretion.  (c) Each document (including, without limitation, any Uniform Commercial Code financing  statements) required by the Security Documents or under law or reasonably requested by the Bank to be filed,  registered or recorded in order to create in favor of the Bank a perfected Lien on the Collateral described therein, prior  and superior in right to any other Person (other than with respect to Liens expressly permitted pursuant to the terms  of this Agreement or the Security Documents), shall be in proper form for filing, registration or recordation.  3.02 Advances.  The obligation of the Bank to make any advance under either the Facility A Line of  Credit or the Facility B Line of Credit is subject to the satisfaction of the following conditions:  (a) at the time of and immediately after giving effect to such advance, no Default Condition or Event  of Default shall exist;  

 

AMENDED AND RESTATED LOAN AGREEMENT – Page 16  (b) at the time of and immediately after giving effect to such advance, all representations and warranties  of each Loan Party set forth in the Loan Documents shall be true and correct in all material respects (except where the  same are qualified by materiality or by Material Adverse Effect, in which case the same shall be true and correct in  all respects) on and as of the date of such advance, in each case before and after giving effect thereto;   (c) Borrower shall have delivered the required Notice of Borrowing;  (d) for any advance under the Facility A Line of Credit:   (i) evidence of insurance for the Target Company that satisfies the Bank’s  requirements;  (ii) an executed copy of the purchase agreement executed in connection with the  related Acquisition which may be delivered in escrow, and, if such information is not contained in  the purchase agreement, all documentation reasonably satisfactory to Bank showing the purchase  price of the assets or Equity Interests of the Target Company to be acquired;  (iii) with respect to any Acquisition of the Equity Interests of a Target Company, a  beneficial ownership form for Target Company becoming a Subsidiary and a certificate of the  secretary, authorized officer, general partner, manager or member of the Target Company becoming  a Subsidiary, in form and substance acceptable to the Bank, attaching and certifying copies of its  Organizational Documents, certificates of good standing, status, or existence, as applicable, from  the Secretary of State or other proper governmental office of the jurisdiction of organization of such  Target Company and each other jurisdiction where such Target Companyis required to be qualified  to do business as a foreign entity which may be delivered in escrow;  (iv) pro-forma financial statements illustrating the combined financial position of the  Borrower and the Target Company;  (v) a quality of earnings report for the Target Company from a reputable accounting  firm or historical financial statements for the Target Company as deemed necessary by Bank; and  (vi) evidence satisfactory to Bank of pro-forma compliance with all covenants of the  Loan Documents, including, but not limited to, delivery of a pro-forma Compliance Certificate  demonstrating compliance with the Financial Covenants (such pro-forma Compliance Certificate to  include adjusted pro-forma cash flow    (e) for any advance under the Facility B Line of Credit, Borrower shall have delivered to Bank a current  Borrowing Base Certificate.  Each request for an advance shall be deemed to constitute a representation and warranty by Borrower that all  conditions specified in this Section have been satisfied.    3.03 Delivery of Documents.  All of the Loan Documents, certificates and other documents and papers  referred to in this Article Three, unless otherwise specified, shall be delivered to Bank and, except for the Note, in  sufficient counterparts or copies as Bank shall require and shall be in form and substance satisfactory in all respects  to Bank.  ARTICLE FOUR  REPRESENTATIONS AND WARRANTIES   To induce Bank to enter into this Agreement and to extend to Borrower the Credit Facility, the Loan Parties  represent and warrant to Bank both before and after giving effect to the transactions contemplated hereby, which  representations and warranties shall be deemed made as of the date of this Agreement and otherwise as set forth in  Section 3.02, as follows:  

 

AMENDED AND RESTATED LOAN AGREEMENT – Page 17  4.01 Existence; Power.  Each Loan Party that is an Entity (i) is duly organized, validly existing and in  good standing as a corporation, partnership or limited liability company, as applicable, under the laws of the  jurisdiction of its organization, (ii) has all requisite power and authority to carry on its business as now conducted,  and (iii) is duly qualified to do business, and is in good standing, in each jurisdiction where such qualification is  required, except where a failure to be so qualified could not reasonably be expected to result in a Material Adverse  Effect.  Each Loan Party that is a natural person is sui juris and otherwise of full legal capacity to enter into this  Agreement and the other Loan Documents and to own its properties.  4.02 Organizational Power; Authorization.  The execution, delivery and performance by the Loan  Parties that are Entities of the Loan Documents to which each is a party are within such Person’s organizational  powers, as applicable, and have been duly authorized, as applicable, by all necessary organizational, and if required,  shareholder, partner or member action. This Agreement and each other Loan Document dated the date hereof has been  duly executed and delivered by the Loan Parties, and constitute, and each other Loan Document to which any Loan  Party will become a party, when executed and delivered by such Loan Party shall constitute, valid and binding  obligations of the Loan Parties, enforceable against each such Loan Party in accordance with their respective terms,  except as may be limited by applicable bankruptcy, insolvency, reorganization, moratorium, or similar laws affecting  the enforcement of creditors’ rights generally and by general principles of equity.  4.03 Places of Business.  Each Loan Party’s correct, legal name and  jurisdiction of organization if such  Loan Party is an Entity is as set forth in the preamble to this Agreement and, as to the Loan Parties that are Entities,  (i)the chief executive office of each Loan Party that is an Entity and the residence address of each Loan Party that is  a natural person are as set forth in the preamble to this Agreement and (ii) all other places of business of each Loan  Party are set forth on Schedule 4.03 hereto.  Any other locations of any Collateral are located at the corresponding  addresses set forth on Schedule 4.03 hereto.  Except as disclosed in the preamble hereto: (i) no Loan Party that is an  Entity has been organized in any other jurisdiction, nor changed any such location in the last five (5) years, (ii) no  Loan Party has changed its name in the last five (5) years, and (iii) during such period no Loan Party has used, nor  does any Loan Party now use, any fictitious or trade name.  4.04 Pending Litigation.  There are no judgments or judicial or administrative orders, proceedings or  investigations (civil or criminal) pending or, to the knowledge of the Loan Parties, threatened, against any Loan Party  in any court or before any Governmental Authority, other than as set forth on Schedule 4.04 hereto or which, if  adversely determined, could not reasonably be expected to cause a Material Adverse Effect.  No member, manager,  partner, shareholder, director, or executive officer of any Loan Party that is an Entity nor any Loan Party that is a  natural person has been indicted or convicted in connection with or is engaging in any racketeering or other similar  criminal conduct or activity, or is currently subject to any lawsuit or proceeding or under investigation in connection  with any racketeering or other similar criminal conduct or activity.  4.05 Governmental Approvals; No Conflicts.  The execution, delivery and performance by the Loan  Parties of this Agreement, and the other Loan Documents to which each is a party (i) do not require any consent or  approval of, registration or filing with, or any action by, any Governmental Authority, except those as have been  obtained or made and are in full force and effect,  (ii) do not violate or result in the breach of any of the terms and  provisions of any Organizational Document to which any Loan Party is bound or is a party, (iii) will not violate any  Requirements of Law applicable to any Loan Party, or any judgment, order or ruling of any Governmental Authority,  (iv) will not violate or result in a default under any indenture, material agreement or other material instrument binding  any Loan Party or any of their respective assets or give rise to a right thereunder to require any payment to be made  by any Loan Party and (v) will not result in the creation or imposition of any Lien on any asset of a Loan Party, except  Liens created under the Loan Documents.  4.06 Financial Statements. The respective financial statements of each Loan Party that is an Entity  delivered to Bank in connection with the Credit Facility (including in all cases the notes thereto, if any) have been  prepared in accordance with GAAP or other standard acceptable to Bank, are accurate and complete in all material  respects as of the respective dates thereof, are consistent with each such Person’s books and records (which, in turn,  are accurate and complete in all material respects), present fairly in all material respects each such Person’s respective  financial condition, results of operations and cash flows as of the respective times and for the respective periods  referred to therein.  The respective financial statements of each Loan Party that is a natural person delivered to Bank  in connection with the Credit Facility have been prepared on Bank’s standard form of personal financial statement or  

 

AMENDED AND RESTATED LOAN AGREEMENT – Page 18  other form approved by Bank, are accurate and complete in all material respects as of the respective dates hereof, and  to the extent that any of the assets shown on any such Person’s financial statement are jointly owned with any other  Person, such ownership is so designated on such financial statement, together with a notation as to such Loan Party’s  interest therein.  There have been no changes to the financial condition of any Loan Party which have had or could  reasonably be expected to have, singly or in the aggregate, a Material Adverse Effect. No Loan Party has any  indebtedness, Lien or other liability that would be required to be disclosed on a balance sheet in accordance with  GAAP, except for those (i) set forth on the financial statements referred to hereinabove or (ii) incurred in the ordinary  course of business since the respective date of such Person’s financial statement referred to hereinabove.  4.07 Environmental Matters. None of the Loan Parties (i) has stored or disposed of any Hazardous  Substances on the Mortgaged Property or  any of their respective properties except in compliance with Environmental  Laws, (ii) has failed to comply with any Environmental Law or to obtain, maintain or comply with any permit, license  or other approval required under any Environmental Law, (iii) is or has become subject to any Environmental Liability,  (iii) has received notice of any claim with respect to any Environmental Liability or (iv) knows of any basis for any  Environmental Liability.  4.08 Compliance with Laws and Agreements.  Each of the Loan Parties and their respective  Subsidiaries, if any, are in compliance with (a) all Requirements of Law and all judgments, decrees and orders of any  Governmental Authority and (b) all indentures, agreements or other instruments binding upon it or its properties,  except where non-compliance, either singly or in the aggregate, could not reasonably be expected to result in a Material  Adverse Effect.  4.09 Taxes.  Each of the Loan Parties has timely filed or caused to be filed all Federal and state income  tax returns and all other material tax returns that are required to be filed by them, and have paid all taxes shown to be  due and payable on such returns or on any assessments made against it or its property, except where the same are  currently being contested in good faith by appropriate proceedings and for which such Loan Party has set aside on its  books adequate reserves in accordance with GAAP.  The charges, accruals and reserves on the books of the Loan  Parties in respect of such taxes are adequate, and no tax liabilities that could be materially in excess of the amount so  provided are anticipated.  4.10 ERISA.  Each Loan Party is in compliance with all applicable provisions of the Employee  Retirement Income Security Act of 1974, as amended (“ERISA”), the Internal Revenue Code of 1986, as amended  (the “Code”) and the regulations and published interpretations thereunder with respect to all employee benefit plans  covered thereby.  No ERISA Event has occurred or is reasonably expected to occur that, when taken together with all  other such ERISA Events for which liability is reasonably expected to occur, could reasonably be expected to result  in a Material Adverse Effect.   4.11 Investment Company Act, etc.  None of the Loan Parties that is an Entity is (a) an “investment  company” or is “controlled” by an “investment company”, as such terms are defined in, or subject to regulation under,  the Investment Company Act of 1940, as amended, or (b) otherwise subject to any other regulatory scheme limiting  its ability to incur debt or requiring any approval or consent from or registration or filing with, any Governmental  Authority in connection therewith.  4.12 Margin Regulations.  None of the proceeds of the Credit Facility will be used, directly or indirectly,  for “purchasing” or “carrying” any “margin stock” with the respective meanings of each of such terms under  Regulation U of the Board of Governors of the Federal Reserve System as now and from time to time hereafter in  effect or for any purpose that violates the provisions of the Regulation U.  None of the Loan Parties is engaged  principally, or as one of its important activities, in the business of extending credit for the purpose of purchasing or  carrying “margin stock.”  4.13 Ownership of Property.  (a) Each Loan Party that is an Entity has good title to, or valid leasehold interests in, all of its real and  personal property material to the operation of its business, including all such properties reflected in the most recent  financial statements referred to in Section 4.06 hereof or purported to have been acquired by any such Person after  said date (except as sold or otherwise disposed of in the ordinary course of business), and are in each case free and  

 

AMENDED AND RESTATED LOAN AGREEMENT – Page 19  clear of Liens other than Permitted Encumbrances.  All leases that individually or in the aggregate are material to the  business or operations of any Loan Party that is an Entity are valid, subsisting and in full force and effect.  (b) Each Loan Party that is an Entity owns, or is licensed or otherwise has the right to use, all patents,  trademarks, service marks, trade names, copyrights and other intellectual property material to its business, and to the  Loan Parties’ knowledge the use thereof by such Loan Parties does not infringe in any material respect on the rights  of any other Person.  (c) The properties of each Loan Party are insured with financially sound and reputable insurance  companies which are not Affiliates of the Loan Parties, in such amounts with such deductibles and covering such risks  as are customarily carried by companies engaged in similar businesses and owning similar properties in localities  where the Loan Parties operate.  4.14 Subsidiaries.  Environmental, Safety, Manufacturing, and e-Tools have no Subsidiaries.   Compliance has no Subsidiaries other than Alpha, Bio-Team, Citiwaste, Properties, Affordable, and Midwest.  4.15 Loan Party Disclosures.  No event has occurred, and no fact or condition exists, which has a  Material Adverse Effect or which could reasonably be expected to have a Material Adverse Effect.  None of the  reports, financial statements, certificates nor other information furnished by or on behalf of any Loan Party to the  Bank in connection with the negotiation of this Agreement or any other Loan Document or delivered hereunder or  thereunder (as modified or supplemented by any other information so furnished) contains any material misstatement  of fact nor omits to state any material fact necessary to make the statements therein, taken as a whole, in light of the  circumstances under which they were made, not misleading.  4.16 Labor Relations.  No Loan Party is a party to any collective bargaining agreement nor has a labor  union been recognized as the representative of its employees. There are no strikes, lockouts, collective bargaining  activities or other material labor disputes or grievances against any Loan Party, or, to the Loan Parties’ knowledge,  threatened against or affecting any of the Loan Parties, and no significant unfair labor practice, charges or grievances  are pending against any Loan Party, or to the Loan Parties’ knowledge, threatened against any of them before any  Governmental Authority, except where the result of any of the foregoing, either singly or in the aggregate, could not  reasonably be expected to result in a Material Adverse Effect.   4.17 OFAC.  None of the Loan Parties (i) is a person whose property or interest in property is blocked  or subject to blocking pursuant to Section 1 of Executive Order 13224 of September 23, 2001 Blocking Property and  Prohibiting Transactions With Persons Who Commit, Threaten to Commit, or Support Terrorism (66 Fed. Reg. 49079  (2001)), (ii) engages in any dealings or transactions prohibited by Section 2 of such executive order, or is otherwise  associated with any such person in any manner violative of Section 2, or (iii) is a person on the list of Specially  Designated Nationals and Blocked Persons or subject to the limitations or prohibitions under any other U.S.  Department of Treasury’s Office of Foreign Assets Control regulation or executive order.  4.18 Patriot Act; Foreign Corrupt Practices Act.  Each of the Loan Parties is in compliance, in all  material respects, with (i) the Trading with the Enemy Act, as amended, and each of the foreign assets control  regulations of the United States Treasury Department (31 CFR, Subtitle B, Chapter V, as amended) and any other  enabling legislation or executive order relating thereto, and (ii) the Uniting And Strengthening America By Providing  Appropriate Tools Required To Intercept And Obstruct Terrorism (USA Patriot Act of 2001).  No part of the proceeds  of the Credit Facility will be used, directly or indirectly, for any payments to any governmental official or employee,  political party, official of a political party, candidate for political office, or anyone else acting in an official capacity,  in order to obtain, retain or direct business or obtain any improper advantage, in violation of the United States Foreign  Corrupt Practices Act of 1977, as amended.  4.19 Schedules.  Each of the Schedules, if any, attached to this Agreement sets forth a true, correct and  complete description, in all material respects, of the matter or matters covered thereby.  4.20 Absence of Defaults.  Except as disclosed to Bank, no Default Condition or Event of Default has  occurred or is continuing.  

 

AMENDED AND RESTATED LOAN AGREEMENT – Page 20  ARTICLE FIVE  AFFIRMATIVE COVENANTS  The Loan Parties covenant and agree until such time as the Obligations have been indefeasibly paid in full in cash  and any obligation of Bank to fund any portion of the Credit Facility has terminated or expired:  5.01 Payment of Obligations.  Borrower shall pay principal, interest, fees and other charges on the  Credit Facility and the other Obligations as and when due pursuant to the Notes, this Agreement, and the other Loan  Documents.  5.02 Financial Statements and Other Reporting.  (a) As soon as available and in any event within 120 days after the end of each Fiscal Year, Borrower  shall submit to Bank the audited consolidated and consolidating annual financial statements for Parent including the  Borrower and its Subsidiaries for the Fiscal Year most recently ended, prepared in conformity with GAAP consistently  applied and consisting of a balance sheet, and related statements of income, equity and cash flows (together with  footnotes thereto) of Borrower and its Subsidiaries reported on by an independent public accounting firm acceptable  to Bank (without a “going concern” or like qualification, exception or explanation and without any qualification or  exception as to scope of such audit) to the effect that such financial statements present fairly in all material respects  the financial condition and the results of operations of Borrower and its Subsidiaries for such Fiscal Year on a  consolidated basis. In the event the foregoing are provided as part of  a public filing with the Securities and Exchange  Commission Borrower shall be deemed to have satisfied this requirement.   (b) As soon as available and in any event within 45 days after the end of each fiscal quarter, an internally  prepared consolidated balance sheet of Parent including the Borrower and its Subsidiaries as of the end of such fiscal  quarter and the related consolidated statements of income and cash flows of Parent including the Borrower and such  Subsidiaries, for such fiscal quarter and the then elapsed portion of such Fiscal Year, setting forth in each case in  comparative form the figures for the corresponding fiscal quarter and the corresponding portion of Parent including  the Borrower’s previous Fiscal Year certified by a Financial Officer of Parent.  (c) As soon as available and in any event due with the delivery of the financial statements required by  Section 5.02(b) above, Borrower shall submit to Bank a current Compliance Certificate representing operations of  Borrower and its Subsidiaries.  (d) As soon as available, and in any event within thirty (30) days of the date of filing thereof, but in any  and all events not later than April 15th of each year, each Loan Party that is an Entity shall submit to Bank a complete  copy of its federal income tax return for each calendar year together with all schedules or exhibits thereto which may  be provided on a consolidated basis with Parent’s return.   (e) As soon as available, but in no event later than 45 days after the end of each fiscal quarter, a current  Borrowing Base Certificate, provided, however, if at the end of any calendar month the outstanding principal balance  of the Facility B Line of Credit is greater than or equal to $1.00, Borrower shall deliver a current Borrowing Base  Certificate to Bank within 30 days after the end of each month.   (f) As soon as available, but in no event later than 45 days after the end of each fiscal quarter, a current  Accounts Receivable Aging report, provided, however, if at the end of any calendar month the outstanding principal  balance of the Facility B Line of Credit is greater than or equal to $1.00, Borrower shall deliver a current Accounts  Receivable Aging report to Bank within 30 days after the end of each month.  (g) As soon as available, but in no event later than 45 days after the end of each fiscal quarter, a current  Inventory Listing, provided, however, if at the end of any calendar month the outstanding principal balance of the  Facility B Line of Credit is greater than or equal to $1.00, Borrower shall deliver a current Inventory Listing to Bank  within 30 days after the end of each month.  

 

AMENDED AND RESTATED LOAN AGREEMENT – Page 21  (h) Upon occurrence, prompt written notice of any change (i) in any of the Loan Parties’ organizational  name, (ii) in the jurisdiction of organization or formation of any Loan Party, (iii) in any Loan Party’s identity or form  of organization or (iv) in any Loan Party’s Federal Taxpayer Identification Number.  The Loan Parties agree not to  effect or permit any change referred to in the preceding sentence unless all filings have been made under the UCC or  otherwise that are required in order for the Bank to continue at all times following such change to have a valid, legal  and perfected security interest in all the Collateral.  (i) Promptly following any request therefor by Bank, such other information regarding the results of  operations, business affairs and financial condition of the Loan Parties and their respective Subsidiaries, if any, as  Bank may reasonably request.  All financial statements and financial information submitted to Bank in accordance with this Agreement shall include,  among other things, detailed information regarding (i) any Entities of which the applicable Loan Party is the majority  owner and (ii) any Entities of which the applicable Loan Party is not the majority owner, but for which such Loan  Party is directly or contingently liable on debts or obligations of any kind incurred by those Entities.  All financial  statements or records submitted to Bank via electronic means, including, without limitation by facsimile, open internet  communications or other telephonic or electronic methods, including, without limitation, documents in Tagged Image  Format Files (“TIFF”) or Portable Document Format (“PDF”) shall be treated as originals, fully binding and with full  legal force and effect and the parties waive any rights they may have to object to such treatment.  The Bank may rely  on all such records in good faith as complete and accurate records produced or maintained by or on behalf of the party  submitting such records.    5.03 Maintenance of Insurance, Financial Records and Existence.  (a) Required Insurance.  Borrower shall maintain or cause to be maintained insurance on Borrower’s  (and, if applicable, its direct or indirect Subsidiaries’) properties and assets against fire, casualty, public liability, as  well as general liability, and other liability insurance related to the business of Borrower (or, if applicable, its direct  or indirect Subsidiaries) as is customary for such business, all in such amounts, with such deductibles and with such  insurers as are customary for such business (the “Required Insurance”).  All of the policies relating to the Required  Insurance shall contain standard “mortgagee” (where applicable), “lender loss payable” and “additional insured”  (where applicable) clauses issued in favor of Bank  pursuant to which all losses thereunder shall be paid to Bank as  Bank’s interests may appear.  Such policies shall expressly provide that the Required Insurance cannot be altered in  any way adverse to Bank or canceled without thirty (30) days’ (or ten (10) days with respect to nonpayment of  premium) prior written notice to Bank and shall insure Bank notwithstanding the act or neglect of the insured.  At or  prior to the date hereof, Borrower shall furnish Bank with insurance certificates certified as true and correct and being  in full force and effect as of the date hereof or such other evidence of the Required Insurance as Bank may require.  In  the event the Borrower fails to procure or causes to be procured any of the Required Insurance or to timely pay or  cause to be paid the premium(s) on any of the Required Insurance, Bank may do so for Borrower, but Borrower shall  continue to be liable for the same.  Borrower further covenants that all insurance premiums owing under its current  casualty policy or policies will be paid when due.  Borrower also agrees to notify Bank, promptly, upon Borrower’s  receipt of a notice of termination, cancellation or non-renewal from its insurance company of any of the Required  Insurance.  Borrower hereby appoints Bank as its attorney-in-fact, exercisable at Bank’s option upon the occurrence  and during the continuance of an Event of Default, to endorse any check which may be payable to Borrower in order  to collect the proceeds of the Required Insurance.  The foregoing general requirements shall not be in limitation or  derogation of any other requirement of Borrower to obtain and/or maintain insurance as specified in any other Loan  Document, including without limitation, any Security Document.  (b) Financial Records. Borrower shall keep current and accurate books of records and accounts in  which full and correct entries in all material respects will be made of all of its business transactions, and will reflect  in Parent’s financial statements adequate accruals and appropriations to reserves, all in accordance with GAAP or  other standards approved by Bank in writing.  Borrower shall not change its Fiscal Year end date without prior written  notice to Bank.  (c) Existence; Rights; Conduct of Business.  Each Loan Party that is an Entity shall do (or cause to  be done) all things reasonably necessary to preserve and keep in full force and effect its legal existence and good  standing and each such Loan Party’s rights, licenses, permits, privileges, franchises, patents, copyrights, trademarks  

 

AMENDED AND RESTATED LOAN AGREEMENT – Page 22  and trade names material to the conduct of its business, and will continue to engage in the same business as presently  conducted or such other businesses that are reasonably related thereto.  5.04 Notices of Material Events.  Borrower shall furnish to Bank prompt written notice of the following:  (a) the occurrence of any Default Condition or Event of Default;   (b) the filing or commencement of any action, suit, proceeding or investigation by or before any  arbitrator or Governmental Authority, against or, to the knowledge of any Loan Party, affecting any Loan Party which,  if adversely determined, could reasonably be expected to result in a Material Adverse Effect;  (c) any change in the nature or extent of Hazardous Substances maintained on or with respect to the  Mortgaged Property or any other property of a Loan Party or the occurrence of any event or any other development  by which any Loan Party (i) fails to comply with any Environmental Law or to obtain, maintain or comply with any  permit, license or other approval required under any Environmental Law, (ii) becomes subject to any Environmental  Liability, (iii) receives notice of any claim with respect to any Environmental Liability, or (iv) becomes aware of any  basis for any Environmental Liability and in each of the preceding clauses, which individually or in the aggregate,  could reasonably be expected to result in a Material Adverse Effect;  (d) the occurrence of any ERISA Event that alone, or together with any other ERISA Events that have  occurred, could reasonably be expected to result in a Material Adverse Effect;  (e) the occurrence of any default or event of default, or the receipt by any Loan Party of any written  notice of an alleged default or event of default, in respect of any Material Indebtedness of any Loan Party; and  (f) any other development that results in, or could reasonably be expected to result in, a Material  Adverse Effect.  Each notice delivered under this hereunder shall be accompanied by a written statement of a Responsible Officer of  Borrower setting forth the details of the event or development requiring such notice and any action taken or proposed  to be taken with respect thereto.  5.05 Litigation.  The Loan Parties shall give prompt notice to Bank of any litigation claiming in excess  of $250,000.00 from any Loan Party or which, if adversely determined, could reasonably be expected to cause a  Material Adverse Effect.  5.06 Taxes.  Each Loan Party shall pay all taxes when due (other than taxes levied upon Bank based  upon or measured by Bank’s income or revenues), if any, in connection with the Credit Facility, the Loan Documents  and/or the execution, delivery or recording of any mortgage, deed of trust, security deed, security agreement, financing  statements or other Loan Documents.  The Obligations of the Loan Parties under this section shall survive the payment  of Borrower’s Obligations under this Agreement and the termination of this Agreement.  5.07 Compliance with Laws, etc.  The Loan Parties shall: (i) comply with all laws, rules, regulations  and requirements of any Governmental Authority applicable to its business and properties, including without  limitation, all Environmental Laws, ERISA, and the Occupational Safety and Health Act of 1970, as amended  (“OSHA”), except where the failure to do so, either individually or in the aggregate, could not reasonably be expected  to result in a Material Adverse Effect; (ii) at all times maintain the Mortgaged Property and their respective properties  in compliance with all applicable Environmental Laws and free of any Hazardous Substances except in compliance  with all applicable Environmental Laws; (iii)pay, perform or otherwise satisfy any fine, charge, penalty, fee, damage,  order, judgment, decree or imposition related thereto which, if unpaid, would constitute a lien or encumbrance on any  Collateral, other than a Permitted Encumbrance, unless (a) the validity thereof shall be contested diligently and in  good faith by appropriate proceedings and with counsel reasonably satisfactory to Bank and (b) so long as Borrower  shall at all times have deposited with Bank, or posted a bond satisfactory to Bank in, a sum equal to the amount  necessary (in the reasonable discretion of Bank) to comply with such order or directive (including, but not limited to,  the amount of any fine, penalty, interest or cost that may become due thereon by reason of or during such contest);  

 

AMENDED AND RESTATED LOAN AGREEMENT – Page 23  provided, however, that Bank shall be subrogated to the rights of the payee of such amount upon payment in full with  respect to such fine, charge, or any portion thereof, (iv) to take all appropriate response actions, including any removal  or remedial actions, in the event of a release, emission, discharge, or disposal of any Hazardous Substances in, on,  under or from the Mortgaged Property and their respective properties necessary in order for such property to be or  remain in compliance with all Environmental Laws, (v) upon request of Bank, to permit Bank, including its officers,  agents, employees, contractors and representatives, to enter and inspect the Mortgaged Property for purposes of  conducting an environmental assessment and (vi) upon the request of Bank, and at Borrower’s expense, to cause to be  prepared for the Mortgaged Property such site assessment reports, including, without limitation, engineering studies,  historical reviews and testing, as may be reasonably requested from time to time by Bank.  5.08 Payment of Obligations.  The Loan Parties shall pay and discharge at or before maturity, all of  their respective obligations and liabilities (including without limitation all tax liabilities and claims that could result  in a statutory Lien) before the same shall become delinquent or in default, except where (a) the validity or amount  thereof is being contested in good faith by appropriate proceedings, (b) the affected Loan Party has set aside on its  books adequate reserves with respect thereto in accordance with GAAP and (c) the failure to make payment pending  such contest could not reasonably be expected to result in a Material Adverse Effect.  5.09 Inspection; Field Audits. At any reasonable time and from time to time, Borrower will permit, and  will cause each Subsidiary to permit, representatives of Bank:  (a) To examine and make copies of the books and records of, and visit and inspect the properties or  assets of Borrower and any Subsidiary and to discuss the business, operations and financial condition of any such  Persons with their respective officers and employees and with their independent certified public accountants; and  (b) To conduct Field Audits one (1) time during each fiscal year of Borrower, unless an Event of Default  or a Default Condition exists (in which case Bank may conduct additional Field Audits at its discretion), and the cost  of (i) the annual Field Audit and (ii) all Field Audits conducted during the existence of an Event of Default or Default  Condition shall be paid by Borrower, each in an amount not to exceed $4,000.00 per Field Audit.  5.10 Collateral Reporting.  Borrower agrees to furnish to the Bank such information as Bank reasonably  requires in connection with monitoring the Collateral, at the times and in the manner reasonably determined by Bank.  5.11 Maintenance of Properties.  Borrower shall keep and maintain (and, if applicable cause each direct  or indirect Subsidiary to keep and maintain) all property material to the conduct of its business in good working order  and condition, ordinary wear and tear excepted.  5.12 Use of Proceeds.  Borrower shall use the proceeds of the Credit Facility for the purposes stated  herein.  No part of the proceeds of the Credit Facility will be used, whether directly or indirectly, for any purpose that  would violate any rule or regulation of the Board of Governors of the Federal Reserve System, including without  limitation Regulations T, U or X.  5.13 Operating Accounts.  Each Loan Party will establish and thereafter maintain (and, if applicable,  cause each direct or indirect Subsidiary to establish and thereafter maintain) with Bank until such time as the  Obligations have been indefeasibly paid in full in good collected funds and the commitments to fund both of the  Facility A Line of Credit and the Facility B Line of Credit have been terminated its primary operating deposit accounts  and all collection and lockbox accounts.  5.14 Leased Premises.  In the event that more than $500,000 of Collateral or books and records related  thereto is or becomes located on any of the properties leased by Borrower (and, if applicable, any direct or indirect  Subsidiary of Borrower), Borrower shall promptly upon request by Bank obtain from the owner and landlord of such  leased properties a Collateral Access Agreement in form and substance reasonably acceptable to Bank.  5.15 Further Assurances.  The Loan Parties shall execute and/or deliver any and all further documents,  financing statements, agreements and instruments, and take all further action (including filing Uniform Commercial  Code and other financing statements, mortgages and deeds of trust and preparing all documentation relating to filings  

 

AMENDED AND RESTATED LOAN AGREEMENT – Page 24  under the Federal Assignment of Claims Act) that may be required under applicable law, or that Bank may reasonably  request, in order to effectuate the transactions contemplated by the Loan Documents and in order to grant, preserve,  protect and perfect the validity and first priority of the security interests created or intended to be created by the  Security Documents.  In addition, from time to time, Borrower shall, at its sole cost and expense, promptly secure the  Obligations by pledging or creating, or causing to be pledged or created, perfected security interests with respect to  such of its assets and properties as the Bank shall designate (it being understood that it is the intent of the parties that  the Obligations shall be secured by substantially all the assets of the Borrowers (including properties acquired  subsequent to date hereof)).  Such security interests and Liens will be created under the Security Documents and other  security agreements, mortgages, deeds of trust and other instruments and documents in form and substance reasonably  satisfactory to Bank, and Borrower shall deliver or cause to be delivered to Bank all such instruments and documents  (including, title insurance policies, ownership and encumbrances reports and lien searches) as Bank shall reasonably  request to evidence compliance with this Section.  In furtherance of the foregoing, Borrower shall give prompt notice  to Bank of the acquisition by Borrower (and, if applicable, by any direct or indirect Subsidiary) of any real property  (or any interest in real property).    ARTICLE SIX  NEGATIVE COVENANTS  The Loan Parties covenant and agree until such time as the Obligations have been indefeasibly paid in full in  cash and any obligation of Bank to fund any portion of the Credit Facility has terminated or expired:  6.01 Indebtedness. Borrower will not create, incur, assume or suffer to exist any Indebtedness, except:  (a) Indebtedness created pursuant to the Loan Documents; or  (b) Indebtedness and obligations arising under any Hedging Transaction entered into in order to manage  exiting or anticipated interest rate, exchange rate or commodity price risks and not for speculative purposes.  6.02 Liens.  Without the prior written consent of Bank, the Loan Parties shall not create, incur, assume  or suffer to exist any Lien on any of their assets or property now owned or hereafter acquired, except:  (a) Liens in favor of Bank securing the Obligations;  (b) Permitted Encumbrances;  (c) extensions or renewals of any Lien referred to in paragraph (b) of this Section 6.02; provided, that  the principal amount of the Indebtedness secured thereby is not increased and that any such extension, renewal or  replacement is limited to the assets originally encumbered thereby;  (d) Liens arising from precautionary UCC financing statements regarding operating leases; or  (e) Liens of a collecting bank arising in the ordinary course of business under Section 4-210 of the UCC  in effect in the relevant jurisdiction covering only the items being collected.  6.03 Fundamental Changes.  (a) Except as expressly permitted pursuant to Section 6.13 and 6.14 hereto, Borrower shall not (and, if  applicable, shall not permit any of its direct or indirect Subsidiaries to) merge into or consolidate with any other  Person, or permit any other Person to merge into or consolidate with it, or sell, lease, transfer or otherwise dispose of  (in a single transaction or a series of transactions) all or substantially all of its assets (in each case, whether now owned  or hereafter acquired) or all or substantially all of the equity interests of any of its Subsidiaries (in each case, whether  now owned or hereafter acquired), liquidate, dissolve or create or acquire any additional Subsidiary.  

 

AMENDED AND RESTATED LOAN AGREEMENT – Page 25  (b) Borrower shall not (and, if applicable, shall not permit any of its direct or indirect Subsidiaries to)  engage in any business other than businesses that are similar or complementary to the type conducted by Borrower  (or, as applicable, such Subsidiary) on the date hereof and businesses complementary or reasonably related thereto.  (c) Borrower shall not permit or suffer to exist: (i) the transfer, exchange or acquisition of ownership,  directly or indirectly, beneficially or of record, by any person or group of any of the outstanding shares of voting stock  or other equity interests of Borrower; or (ii) occupation of a majority of seats on the board of directors, board of  managers or other managing group of Borrower by Persons other than Persons nominated or appointed by the current  board of directors, board of managers or other managing group of Borrower.  6.04 Investments, Loans, etc.  Borrower shall not (and, if applicable, shall not permit any of its direct  or indirect Subsidiaries to) purchase, hold or acquire any common stock, membership interest, partnership interest,  other equity interest, evidence of indebtedness or other securities (including any option, warrant, or other right to  acquire any of the foregoing) of, make or permit to exist any loans or advances to, guaranty any obligations of, or  make or permit to exist any investment or any other interest in, any other Person (all of the foregoing being collectively  called “Investments”), or purchase or otherwise acquire (in one transaction or a series of transactions) any assets of  any other Person that constitute a business unit, or create or form any Subsidiary, except:  (a) Permitted Investments;  (b) Investments received in connection with the bankruptcy or reorganization of, or settlement of  delinquent accounts and disputes with, customers, licensors, licensees and suppliers, in each case in the ordinary  course of business;  (c) Investments by a Loan Party in any other Loan Party;   (d) extensions of trade credit in the ordinary course of business;  (e) Investments (including the creation of and Acquisition of additional Subsidiaries) permitted by, and  in compliance with, Sections 6.13 and 6.14; and  (f) endorsement of items for collection or deposit in the ordinary course of business.  6.05 Restricted Payments.  Neither Borrower nor Parent will declare or pay any Restricted Payment if  (a) an Event of Default or a Default Condition exists at the time of declaring or paying such Restricted Payment, or  (b) an Event of Default or Default Condition would arise as a result of declaring or paying such Distribution.   6.06 Sale of Assets.  Borrower shall not (and, if applicable, shall not permit or cause any of its direct or  indirect Subsidiaries to) convey, sell, lease, assign, transfer or otherwise dispose of, any assets, business or property,  whether now owned or hereafter acquired, except:  (a) the sale or other disposition  of obsolete, uneconomical or worn out property or other property in  the ordinary course of business;   (b) the sale of Inventory in the ordinary course of business;   (c) Permitted Investments in the ordinary course of business; and  (d) dispositions resulting from any casualty or other insured damage to, or any taking under power of  eminent domain or by condemnation or similar proceeding of, any property or asset of Borrower (or, if applicable,  any direct or indirect Subsidiary).  6.07 Transactions with Affiliates.  Borrower shall not (and, if applicable, shall not permit any of its  direct or indirect Subsidiaries to) sell, lease or otherwise transfer any property or assets to, or purchase, lease or  otherwise acquire any property, assets or services from, or otherwise engage in any other transactions with, any  

 

AMENDED AND RESTATED LOAN AGREEMENT – Page 26  Affiliate (including without limitation any direct or indirect Subsidiary), except in the ordinary course of business at  prices and on terms and conditions not less favorable to Borrower (or any such Subsidiary) than could be obtained on  an arm’s-length basis from unrelated third parties.  6.08 Amendment to Organizational Documents.  Each Loan Party that is an Entity shall not (and, if  applicable, shall not permit any of its direct or indirect Subsidiaries to amend, modify or waive any of its rights in a  manner materially adverse to the Bank, or which could otherwise be reasonably expected to have a Material Adverse  Effect  under its Organizational Documents.  6.09 Accounting Changes. Each Loan Party that is an Entity shall not (and, if applicable, shall not permit  any of its direct or indirect Subsidiaries to) make any significant change in accounting treatment or reporting practices,  except as required or permitted by GAAP, or change the Fiscal Year of any such Loan Party (or of any such  Subsidiary).  6.10 Reserved.  6.11 Reserved.  6.12 Reserved.  6.13 Mergers, Acquisitions, Dissolutions and Disposition of Assets.  Borrower will not, and will not  permit any Subsidiary to:  (a) become a party to a merger, consolidation or other business combination (a “Merger”), purchase or  otherwise acquire all or a substantial part of the assets of any Person or any shares or other evidence of beneficial  ownership of any Person (an “Acquisition”), or become a party to a partnership or joint venture, except that:  (i) any Loan Party other than Compliance may enter into a Merger or Acquisition  with Compliance (provided that Compliance is the surviving entity) or another Loan Party after  giving thirty (30) days prior notice to Bank and delivering to Bank such documents evidencing or  perfecting Bank’s Liens in the Collateral as may be required by Bank; and  (ii) Borrower or any Subsidiary may participate in a Merger or an Acquisition with a  Domestic Person as long as (A) no Event of Default or Default Condition exists at the time of such  Merger or Acquisition; (B) no Event of Default or Default Condition would arise as a result of such  Merger or Acquisition; and (C) if Borrower or any Subsidiary enters into a Merger or Acquisition  with any Person (an “Acquired Person”), either (1) such Acquired Person shall cease to exist and  Borrower or such Subsidiary shall be the surviving Person of such transaction, or (2) (x) such  Acquired Person shall become a Subsidiary of Borrower or such existing Subsidiary, (y) Borrower  or such Subsidiary shall own one hundred percent (100%) of the Equity Interests of such new  Subsidiary, and (z) such new Subsidiary shall comply with the requirements of Section 6.14 within  thirty (30) days after the Merger or Acquisition;  (b) dissolve, liquidate or dispose of substantially all of its assets (except as provided in paragraph (a)(i)  above);  (c) amend its Organizational Documents;  (d) sell, lease, assign, transfer or otherwise dispose of its assets, except for (i) dispositions of inventory  in the ordinary course of business,  (ii) transfers of assets by a Domestic Subsidiary to another Domestic Subsidiary,  and the sale or other disposition  of obsolete, uneconomical or worn out property or other property in the ordinary  course of business;  (e) issue, sell or otherwise dispose of the Equity Interests in any Subsidiary to any Person other than to  Borrower or any other Loan Party; or  

 

AMENDED AND RESTATED LOAN AGREEMENT – Page 27  (f) enter into any agreement to do any of the foregoing.  6.14 Subsidiaries.  Borrower will not, and will not permit any Subsidiary to, create or Acquire any  Subsidiary, unless (a) such new Subsidiary (i) is a Domestic Subsidiary, (ii) is a Subsidiary of Borrower or another  Loan Party and Borrower or another Loan Party owns one hundred percent (100%) of the Equity Interests of such new  Subsidiary, and (iii) such Subsidiary will be a Loan Party, and (b) at the time of the creation or Acquisition of such  new Subsidiary, (i) Borrower or such other Loan Party has notified Bank of the creation or Acquisition of such new  Subsidiary (and, in the case of an Acquisition, has complied with Section 6.14(a)), (ii) such new Subsidiary has  executed and delivered to Bank a Joinder Agreement in form and substance satisfactory to Bank, (iii) such new  Subsidiary has delivered to Bank a copy of its Organizational Documents and evidence of its authority to enter into  the documents referred to in clause (b)(ii) above, and (iv) the direct parent of such new Subsidiary has (A) specifically  pledged its Equity Interests in such new Subsidiary to Bank, and (B) delivered to Bank evidence of its authority to  enter into such pledge.    ARTICLE SEVEN  FINANCIAL COVENANTS  The Loan Parties covenant and agree until such time as the Obligations have been indefeasibly paid in full in  cash and any obligation of Bank to fund any portion of the Credit Facility has terminated or expired:  7.01 Cash Flow Leverage Ratio. Borrower and its Subsidiaries shall maintain a Cash Flow Leverage  Ratio determined on a consolidated basis of not more than 3.50 to 1.00, tested quarterly, based upon the financial  statements required to be delivered pursuant to Section 5.02 hereof.  7.02 Debt Service Coverage Ratio. Borrower and its Subsidiaries shall maintain a Debt Service  Coverage Ratio determined on a consolidated basis of not less than 1.15 to 1.00, tested quarterly, based upon the  financial statements required to be delivered pursuant to Section 5.02 hereof.  ARTICLE EIGHT  SECURITY  8.01 Security Agreement.  The Credit Facility and all other Obligations shall be secured by the Security  Agreement which encumbers, and grants to Bank a first priority security interest in and to, that portion of the Collateral  consisting of all of Borrower’s assets.  8.02 Mortgage.  The Credit Facility and all other Obligations shall be secured by the Mortgage which  encumbers, and grants to Bank a first priority lien in and to the Mortgaged Property, subject only to the encumbrances  permitted pursuant to the terms of the Mortgage.  ARTICLE NINE  DEFAULTS  9.01 Events of Default. Any one or more of the following shall constitute an “Event of Default”  hereunder:    (a) the failure by a Loan Party to pay within three (3) days of the date when due (i) any payment of  principal and/or interest on or with respect to (A) the Credit Facility under the Notes, (B) any other Obligation, or (C)  any other Loan Document, whether a regularly scheduled payment, at maturity or by acceleration, or (ii) any taxes or  assessments required to be paid hereunder, or (iii) any insurance premiums required to keep the insurance coverage  required hereunder or pursuant to any Security Document or any other Loan Document in full force and effect at any  time, or (iv) any other monetary sum required to be paid pursuant to the terms of any other Loan Document; or   (b) nonpayment by any Loan Party of any Rate Management Agreement when due or the breach by any  Loan Party of any term, provision or condition contained in any Rate Management Agreement; or  

 

AMENDED AND RESTATED LOAN AGREEMENT – Page 28  (c) any representation or warranty made or deemed made by or on behalf of any Loan Party in or in  connection with this Agreement or any other Loan Document (including the Schedules attached thereto) and any  amendments or modifications hereof or waivers hereunder, or in any certificate, report, financial statement or other  document submitted to Bank by any Loan Party, or any representative thereof pursuant to or in connection with this  Agreement or any other Loan Document shall prove to be materially incorrect when made or deemed made or  submitted; or  (d) the breach of any (i) affirmative covenant as provided in Article Five (ii) negative covenant as  provided in Article Six hereof or (iii) any financial covenant as provided in Article Seven hereof; or  (e) a default or breach which is not otherwise the subject of any other provision of this Article Nine  shall occur in the performance of any of the covenants or agreements of any Loan Party contained in this Agreement,  the Notes, any Guaranty, the Security Documents or any other Loan Document, and such default is not capable of  being cured, or if capable of being cured shall continue uncured to the reasonable satisfaction of Bank for a period of  fifteen (15) days after written notice thereof from Bank to Borrower, or such other lesser or greater period of time, if  any, with or without notice as specifically set forth in the applicable document or instrument; or; or  (f) any Loan Party (whether as primary obligor or as guarantor or other surety) shall default on any  Indebtedness of such Person other than the Obligations; or  (g) any Loan Party shall (i) commence a voluntary case or other proceeding or file any petition seeking  liquidation, reorganization or other relief under any federal, state or foreign bankruptcy, insolvency or other similar  law now or hereafter in effect or seeking the appointment of a custodian, trustee, receiver, liquidator or other similar  official of it or any substantial part of its property, (ii) consent to the institution of, or fail to contest in a timely and  appropriate manner, any proceeding or petition described in clause (i), (iii) apply for or consent to the appointment of  a custodian, trustee, receiver, liquidator or other similar official for any Loan Party or for a substantial part of their  assets, (iv) file an answer admitting the material allegations of a petition filed against it in any such proceeding, (v)  make a general assignment for the benefit of creditors, or (vi) take any action for the purpose of effecting any of the  foregoing; or  (h) an involuntary proceeding shall be commenced or an involuntary petition shall be filed seeking (i)  liquidation, reorganization or other similar relief in respect of any Loan Party or their debts, or any substantial part of  its assets, under any federal, state or foreign bankruptcy, insolvency or other similar law now or hereafter in effect or  (ii) the appointment of a custodian, trustee, receiver, liquidator or other similar official for Borrower, any other Loan  Party or for a substantial part of their assets, and in any such case, such proceeding or petition shall remain undismissed  for a period of sixty (60) days or an order or decree approving or ordering any of the foregoing shall be entered; or  (i) any Loan Party shall become unable to pay, shall admit in writing its inability to pay, or shall fail to  pay, its debts as they become due; or  (j) an ERISA Event shall have occurred that, in the opinion of Bank, when taken together with other  ERISA Events that have occurred, could reasonably be expected to result in liability to any Loan Party; or  (k) any judgment, garnishment, seizure, tax lien, levy or order for the payment of money, not fully  covered by insurance or a bond, in excess of $25,000.00 in the aggregate shall be rendered against any Loan Party or  any assets of a Loan Party; or  (l) any non-monetary judgment or order shall be rendered against any Loan Party that could reasonably  be expected to have a Material Adverse Effect; or  (m) any security interest or Lien purported to be created by any Security Document shall cease to be, or  shall be asserted by any Loan Party not to be, a valid, perfected, first priority (except as otherwise expressly provided  in this Agreement or such Security Document) security interest in the securities, assets or properties covered thereby;  or  

 

AMENDED AND RESTATED LOAN AGREEMENT – Page 29  (n) Borrower (or, if applicable, any of its Subsidiaries) shall be prohibited or otherwise restrained from  conducting the business theretofore conducted by it in any manner that has or could reasonably be expected to have  or result in a Material Adverse Effect by virtue of any determination, ruling, decision, decree, ordinance, or order of  any court of competent jurisdiction, Governmental Authority, or municipality;   (o) there shall be any evidence received by Bank that reasonably leads it to believe that the Loan Parties  may have directly or indirectly been engaged in any type of criminal activity which would be reasonably likely to  result in the forfeiture of a material portion of their assets or properties to any Governmental Authority or which would  otherwise result in a Material Adverse Effect;   (p) any Material Adverse Effect shall have occurred;.  (q) Parent shall fail to own one hundred percent (100%) of the outstanding Equity Interests in any of  Environmental, Safety, Manufacturing, e-Tools, or Compliance.    9.02 Rights Upon Event of Default. Upon the occurrence of an Event of Default and in every such event  (other than an event with respect to the Loan Parties described in subparagraph (g) or (h) of Section 9.01) and at any  time thereafter during the continuance of such event, Bank may take, without limitation, any or all of the following  actions, at the same or different times: (i)  declare the principal of and any accrued interest on the Credit Facility, and  all other Obligations, to be, whereupon the same shall become, due and payable immediately in full, without  presentment, demand, protest or other notice of any kind, all of which are hereby waived by the Loan Parties, (ii) to  the extent that Borrower has any right to receive advances under the Credit Facility, terminate the Borrower’s right to  obtain or receive advances, (iii) exercise all rights and remedies contained in the Security Documents, (iv) exercise all  rights and remedies contained in any other Loan Document, and (v) exercise any other remedies available at law or in  equity; and that, if an Event of Default specified in either subparagraph (g) or (h) of Section 9.01 shall occur, the  principal of the Credit Facility then outstanding, together with accrued interest thereon, and all fees, and all other  Obligations shall automatically immediately become due and payable, without presentment, demand, protest or other  notice of any kind, all of which are hereby waived by the Loan Parties.  Notwithstanding the foregoing, if any note of  Borrower to Bank constituting any of the Obligations, including without limitation, any of the Notes, shall be a demand  instrument, however, the recitation of the right of Bank to declare any and all Obligations to be immediately due and  payable, whether such recitation is contained in such note or in this Agreement, as well as the recitation of the above  events permitting Bank to declare all Obligations due and payable, shall not constitute an election by Bank to waive  its right to demand payment under a demand feature at any time and in any event, as Bank in its discretion may deem  appropriate.  9.03 Application of Proceeds from Collateral. All proceeds from each sale of, or other realization upon,  all or any part of the Collateral by the Bank after an Event of Default arises shall be applied as follows:  (a) first, to the reimbursable expenses of the Bank incurred in connection with such sale or other  realization upon the Collateral, until the same shall have been paid in full;  (b) second, to the fees and other reimbursable expenses of the Bank then due and payable pursuant to  any of the Loan Documents, including without limitation attorneys’ fees and expenses and other costs of collection or  enforcement, until the same shall have been paid in full;  (c) third, to interest then due and payable under the terms of the Notes, until the same shall have been  paid in full;  (d) fourth, to the outstanding principal amount of the Credit Facility, in such order as Bank shall  determine in its sole and absolute discretion;  (e) fifth, to all other Obligations until the same shall have been paid in full to Bank; and  (f) sixth, to the extent any proceeds remain, to the Borrower or other parties lawfully entitled.  

 

AMENDED AND RESTATED LOAN AGREEMENT – Page 30  ARTICLE TEN  MISCELLANEOUS  10.01 Notices.  (a) Except in the case of notices and other communications expressly permitted to be given by  telephone, all notices and other communications to any party herein to be effective shall be in writing and shall be  delivered by hand or overnight courier service, mailed by certified or registered mail or sent by mail, as follows:  To Borrower or other  Loan Parties:  9220 Kirby Drive, Suite 500      Houston, Texas 77054      Attention: Diana Diaz and Eric Bauer      Email:  ddiaz@sharpsinc.com and ebauer@sharpsinc.com     With a copy to:  Spence, Desenberg & Lee, PLLC]      1770 St. James Place, Suite 625      Houston, Texas 77056      Attention: Dana Desenberg      Email:  dana@sdllaw.com      To the Bank:  [REDACTED]          With a copy to:  [REDACTED]      (b) Any party hereto may change its address for notices and other communications hereunder by notice  to the other parties hereto.  All such notices and other communications shall, when transmitted by overnight delivery  be effective when delivered for overnight (next-day) delivery, or if mailed, upon the third Business Day after the date  deposited into the mail or if delivered, upon delivery; provided, that notices delivered to Bank shall not be effective  until actually received by such Person at its address specified above.  (c) Any agreement of the Bank to receive certain notices by telephone or email is solely for the  convenience and at the request of the Loan Parties.  Bank shall be entitled to rely on the authority of any Person  purporting to be a Person authorized by the Loan Parties to give such notice and Bank shall not have any liability to  the Loan Parties or other Person on account of any action taken or not taken by Bank in reliance upon such telephonic  or email notice.  The obligation of the Loan Parties to repay the Credit Facility and all other Obligations hereunder  shall not be affected in any way or to any extent by any failure of Bank to receive written confirmation of any  telephonic or email notice or the receipt by Bank of a confirmation which is at variance with the terms understood by  Bank to be contained in any such telephonic or email notice.  10.02 Waiver; Amendments.  No failure or delay by Bank in exercising any right or power hereunder or any other Loan Document, and no  course of dealing between the Loan Parties and Bank, shall operate as a waiver thereof, nor shall any single or partial  exercise of any such right or power or any abandonment or discontinuance of steps to enforce such right or power,  preclude any other or further exercise thereof or the exercise of any other right or power hereunder or thereunder.  The  rights and remedies of Bank hereunder and under the other Loan Documents are cumulative and are not exclusive of  any rights or remedies provided by law.  No amendment or waiver of any provision of this Agreement or the other  Loan Documents, nor consent to any departure by the Loan Parties therefrom, shall in any event be effective unless  the same shall be in writing and signed by the Loan Parties and Bank and then such waiver or consent shall be effective  only in the specific instance and for the specific purpose for which given.  Without limiting the generality of the  foregoing, the making of an advance under the Credit Facility shall not be construed as a waiver of any Default  

 

AMENDED AND RESTATED LOAN AGREEMENT – Page 31  Condition or Event of Default, regardless of whether the Bank may have had notice or knowledge of such Default  Condition or Event of Default at the time.  10.03 Expenses; Indemnification.  (a) The Loan Parties shall pay (i) all reasonable, out-of-pocket costs and expenses of Bank, including  the reasonable fees, charges and disbursements of counsel for Bank, in connection with the preparation and  administration of the Loan Documents and any amendments, modifications or waivers thereof (whether or not the  transactions contemplated in this Agreement or any other Loan Document shall be consummated), and (ii) all  reasonable out-of-pocket costs and expenses (including, without limitation, the reasonable fees, charges and  disbursements of outside counsel and the allocated cost of inside counsel) incurred by Bank in connection with the  enforcement or protection of its rights in connection with this Agreement, including its rights under this Section, or in  connection with the Credit Facility or other Obligations, including all such out-of-pocket expenses incurred during  any workout, restructuring or negotiations in respect of the Credit Facility or other Obligations.  (b) THE LOAN PARTIES SHALL INDEMNIFY BANK AND ANY OF ITS AFFILIATES, AS  WELL AS THEIR RESPECTIVE SHAREHOLDERS, DIRECTORS, OFFICERS, EMPLOYEES, AGENTS OR  (EACH SUCH PERSON BEING CALLED AN “INDEMNITEE”) AGAINST, AND HOLD EACH INDEMNITEE  HARMLESS FROM, ANY AND ALL LOSSES, CLAIMS, DAMAGES, LIABILITIES AND RELATED  EXPENSES (INCLUDING THE FEES, CHARGES AND DISBURSEMENTS OF ANY COUNSEL FOR ANY  INDEMNITEE), AND ALL FEES AND TIME CHARGES AND DISBURSEMENTS FOR ATTORNEYS WHO  MAY BE EMPLOYEES OF ANY INDEMNITEE) INCURRED BY ANY INDEMNITEE OR ASSERTED  AGAINST ANY INDEMNITEE BY ANY THIRD PARTY OR BY THE LOAN PARTIES, WHETHER OR NOT AS  THE RESULT OF THE NEGLIGENCE OF ANY PARTY SO INDEMNIFIED BUT NOT ANY INDEMNIFIED  PARTY’S GROSS NEGLIGENCE OR WILLFUL MISCONDUCT, ARISING OUT OF, IN CONNECTION WITH,  OR AS A RESULT OF (I) THE EXECUTION OR DELIVERY OF THIS AGREEMENT, ANY OTHER LOAN  DOCUMENT OR ANY AGREEMENT OR INSTRUMENT CONTEMPLATED HEREBY OR THEREBY, THE  PERFORMANCE BY THE PARTIES HERETO OF THEIR RESPECTIVE OBLIGATIONS HEREUNDER OR  THEREUNDER OR THE CONSUMMATION OF THE TRANSACTIONS CONTEMPLATED HEREBY OR  THEREBY, (II) THE CREDIT FACILITY OR THE USE OR PROPOSED USE OF THE PROCEEDS  THEREFROM, (III) ANY ACTUAL OR ALLEGED PRESENCE OR RELEASE OF HAZARDOUS  SUBSTANCES ON OR FROM, OR MIGRATING TO OR FROM, ANY PROPERTY OWNED OR OPERATED  BY ANY LOAN PARTY, OR ANY ACTUAL OR ALLEGED ENVIRONMENTAL LIABILITY RELATED IN  ANY WAY TO ANY LOAN PARTY OR ANY COLLATERAL, (IV) ANY BREACH OF ANY  REPRESENTATION, WARRANTY OR COVENANT CONTAINED HEREIN, OR (V) ANY ACTUAL OR  PROSPECTIVE CLAIM, LITIGATION, INVESTIGATION OR PROCEEDING RELATING TO ANY OF THE  FOREGOING, WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY, WHETHER  BROUGHT BY A THIRD PARTY OR BY ANY LOAN PARTY, AND REGARDLESS OF WHETHER ANY  INDEMNITEE IS A PARTY THERETO, PROVIDED THAT SUCH INDEMNITY SHALL NOT, AS TO ANY  INDEMNITEE, BE AVAILABLE TO THE EXTENT THAT SUCH LOSSES, CLAIMS, DAMAGES, LIABILITIES  OR RELATED EXPENSES ARE DETERMINED BY A COURT OF COMPETENT JURISDICTION BY FINAL  AND NONAPPEALABLE JUDGMENT TO HAVE RESULTED FROM THE GROSS NEGLIGENCE OR  WILLFUL MISCONDUCT OF SUCH INDEMNITEE.  (c) The Loan Parties shall pay, and hold Bank harmless from and against, any and all present and future  stamp, documentary, indebtedness, and other similar taxes with respect to this Agreement and any other Loan  Documents, any collateral described therein, or any payments due thereunder, and shall defend, indemnify and save  the Bank harmless from and against any and all liabilities with respect to, or resulting from any delay or omission to  pay such taxes.  (d) To the extent permitted by applicable law, the Loan Parties shall not assert, and hereby waives, any  claim against any Indemnitee, on any theory of liability, for special, indirect, consequential or punitive damages (as  opposed to actual or direct damages) arising out of, in connection with or as a result of, this Agreement or any  agreement or instrument contemplated hereby, the transactions contemplated therein, any loan or the use of proceeds  thereof.  

 

AMENDED AND RESTATED LOAN AGREEMENT – Page 32  (e) All amounts due under this Section shall be payable promptly after written demand therefor.  10.04 Multiple Obligors.  (a) Each and every reference to and any and all representations, warranties, covenants and undertakings  of, Borrower herein, including but not limited to the Events of Default shall be deemed to apply to each of the Persons  comprising Borrower, jointly and separately.  (b) The obligations and liabilities of each of the Persons comprising Borrower under, and all  representations, warranties and covenants in, this Agreement and the other Loan Documents shall be direct and  primary and joint and several in all respects whatsoever.  (c) Bank may deal with any of the Persons comprising Borrower as if it were the sole obligor, without  impairing in any way the liability of any other Person comprising Borrower or any other Loan Party. Without limiting  the generality of that right, Bank may in particular release, impair, or fail to perfect an interest in any collateral of any  Person comprising Borrower or any other Loan Party, waive defaults by any of them, or extend or compromise the  liability of any of them without the consent of the other undersigned obligors.  (d) each of the Persons comprising Borrower represents that it has carefully considered the alternatives  to and the legal consequences of incurring joint and several liability under the Credit Facility and has determined that  by such arrangement it is able to obtain financing on terms more favorable than otherwise, and that under a joint and  several facility each will realize substantial interest savings over alternative financing arrangements.  (e) each of the Persons comprising Borrower hereby irrevocably appoints Parent (the “Agent”) as its  agent representative to deal with the Bank on its behalf in all respects in connection with the Credit Facility, this  Agreement and the transactions contemplated herein. each of the Persons comprising Borrower agrees to be bound by  all actions of the Agent in all such respects.  (f) Bank may bring a separate action or actions under this Agreement and/or the Notes against each of  the Persons comprising Borrower, whether such action is brought against any other Person comprising Borrower or  any other Loan Party, or any other Person comprising Borrower or any other Loan Party is not joined therein. Each of  the Persons comprising Borrower agrees that any compromise or release which may be given to any other Person  comprising Borrower or any other Loan Party shall not release any other Person comprising Borrower or any other  Loan Party not so released from its obligations hereunder or granted such compromise. The Loan Parties hereby waive  any right to assert against Bank any defense (legal or equitable), set off, counterclaim, or claims which any of them  individually may now or any time hereafter have against any Person comprising Borrower or any other Loan Party.  (g) Any and all present and future debt and other obligations of any of the Persons comprising Borrower  to another Person comprising Borrower is hereby subordinated to the full payment and performance of all Obligations  due to Bank, whether under this Agreement, the Notes or otherwise.  (h) Each of the Loan Parties is presently informed as to the financial condition of each Person  comprising Borrower and all other circumstances of each other relating to the Credit Facilities this Agreement, and  the other Loan Documents which a diligent inquiry would reveal and which bear upon the risk of nonpayment of the  amounts due or to become due hereunder. Each Loan Party hereby covenants that it will continue to keep itself  informed as to the financial condition of each Person comprising Borrower, the status of each other Person comprising  Borrower or the other Loan Parties, and all circumstances which bear upon the risk of nonpayment. Absent written  request from a Person comprising Borrower or any other Loan Party to Bank for information, each Loan Party hereby  waives any and all rights it may have to require Bank to disclose to any such Loan Party any information which Bank  may now or hereafter acquire concerning the condition or circumstances of the other Loan Parties.  (i) Each Loan Party waives all rights to notices of default, existence, creation, or incurring of new or  additional indebtedness, and all other notices of formalities to which each such Person comprising Borrower, may as  joint and several Borrower, hereunder be entitled.  

 

AMENDED AND RESTATED LOAN AGREEMENT – Page 33  10.05 Successors and Assigns.  (a) The provisions of this Agreement shall be binding upon and inure to the benefit of the parties hereto  and their respective successors and assigns permitted hereby, except that the Loan Parties may not assign or otherwise  transfer any of their rights or obligations hereunder without the prior written consent of the Bank.  Nothing in this  Agreement, expressed or implied, shall be construed to confer upon any Person (other than the parties hereto, their  respective successors and assigns permitted hereby, and Participants as provided in subparagraph (b) below) any legal  or equitable right, remedy or claim under or by reason of this Agreement.  (b) Bank may at any time, without the prior consent of, or notice to, the Loan Parties, sell and assign or  grant participations to any Person (other than a natural person, the Loan Parties or any of their Affiliates or  Subsidiaries) (each, a “Participant”) all or a portion of Bank’s rights and/or obligations under this Agreement.  10.06 Governing Law; Jurisdiction; Venue.   This Agreement is made and delivered in the State of Texas and shall be governed by and construed in  accordance with the laws thereof without reference to the conflicts of law principles that would cause the application  of the laws of another jurisdiction.  Borrower and each other Loan Party hereby irrevocably submit and consent to the  exclusive personal jurisdiction and venue of any state or federal court in Texas located in the same judicial district as  the office of Bank specified in the first paragraph of this Agreement and agree that all actions or proceedings arising  directly, indirectly or otherwise in connection with, out of, related to or from this Agreement shall be litigated only in  one of the foregoing described courts. Borrower and each other Loan Party, for themselves, and their respective heirs,  successors and its assigns, and for any person claiming under or through any of them, hereby knowingly and  voluntarily waive any and all rights to have the jurisdiction and venue of any litigation arising directly, indirectly or  otherwise in connection with, out of, related to or from this Agreement in any other court, and hereby knowingly and  voluntarily waive any and all rights to remove this action to, or to transfer, dismiss, or change venue to, any other  court. Borrower and each other Loan Party further acknowledge and agree that neither Bank nor any person acting on  behalf of Bank has in any way agreed with or represented to Borrower or such Obligor that the provisions of this  paragraph have been waived or will not be fully enforced by Bank.  Notwithstanding the foregoing, Bank may initiate  necessary judicial actions in any jurisdiction to recover Collateral securing the Credit Facility or any other Obligation.    10.07 WAIVER OF JURY TRIAL. EACH LOAN PARTY KNOWINGLY, VOLUNTARILY AND  IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY  AND ALL RIGHTS SUCH LOAN PARTY MAY HAVE TO TRIAL BY JURY IN ANY LEGAL  PROCEEDING BASED ON, ARISING OUT OF, OR IN ANY WAY RELATED TO: THIS AGREEMENT;  THE OBLIGATIONS; ANY NOTES, LOAN AGREEMENTS, OR ANY OTHER LOAN DOCUMENTS OR  AGREEMENT EXECUTED OR CONTEMPLATED TO BE EXECUTED IN CONNECTION WITH ANY  OF THE OBLIGATIONS OR ANY OF THE TRANSACTIONS CONTEMPLATED HEREBY OR  THEREBY.  THIS JURY WAIVER ALSO APPLIES TO ANY CLAIM OR, COUNTERCLAIM, CAUSE OF  ACTION OR DEMAND ARISING FROM OR RELATED TO (I) ANY COURSE OF CONDUCT, COURSE  OF DEALING, OR RELATIONSHIP OF ANY LOAN PARTY, ANY OBLIGOR, OR ANY OTHER PERSON  WITH BANK OR ANY EMPLOYEE, OFFICER, DIRECTOR OR ASSIGNEE OF BANK IN CONNECTION  WITH THE OBLIGATIONS WITH BANK; OR (II) ANY STATEMENT (WHETHER VERBAL OR  WRITTEN) OR ACTIONS OF ANY PERSON BY OR ON BEHALF OF BANK TO ANY LOAN PARTY,  ANY OBLIGOR, OR ANY OTHER PERSON IN CONNECTION WITH THE OBLIGATIONS OR BANK  REGARDLESS OF WHETHER SUCH CAUSE OF ACTION ARISES BY CONTRACT, TORT OR  OTHERWISE.  EACH LOAN PARTY ACKNOWLEDGES THAT THIS WAIVER OF JURY TRIAL IS A  MATERIAL INDUCEMENT TO THE BANK IN EXTENDING CREDIT TO BORROWER, THAT THE  BANK WOULD NOT HAVE EXTENDED SUCH CREDIT WITHOUT THIS JURY TRIAL WAIVER, AND  THAT EACH LOAN PARTY HAS BEEN REPRESENTED BY AN ATTORNEY OR HAS HAD AN  OPPORTUNITY TO CONSULT WITH AN ATTORNEY IN CONNECTION WITH THIS JURY TRIAL  WAIVER AND UNDERSTANDS THE LEGAL EFFECT OF THIS WAIVER.  EACH LOAN PARTY  FURTHER CERTIFIES THAT NO PERSON HAS REPRESENTED TO IT, EXPRESSLY OR OTHERWISE,  THAT BANK OR ANY OTHER PERSON WOULD NOT, IN THE EVENT OF A LEGAL PROCEEDING,  SEEK TO ENFORCE THE FOREGOING WAIVER.  

 

AMENDED AND RESTATED LOAN AGREEMENT – Page 34  10.08 Right of Setoff and Grant of Lien in Deposits.  In addition to any rights now or hereafter granted  under applicable law and not by way of limitation of any such rights, Bank shall have the right, at any time or from  time to time upon the occurrence and during the continuance of an Event of Default, without prior notice to the Loan  Parties, any such notice being expressly waived by the Loan Parties to the extent permitted by applicable law, to set  off and apply against all deposits (general or special, time or demand, provisional or final) of any of the Loan Parties  at any time held or other obligations at any time owing by Bank to or for the credit or the account of any of the Loan  Parties against any and all Obligations held by Bank, irrespective of whether Bank shall have made demand hereunder  and although such Obligations may be unmatured.  Bank agree promptly to notify the Loan Parties after any such set- off and any application made by Bank; provided, that the failure to give such notice shall not affect the validity of  such set-off and application.  10.09 Counterparts.  This Agreement may be executed by one or more of the parties to this Agreement  on any number of separate counterparts, and all of said counterparts taken together shall be deemed to constitute one  and the same instrument. Any party to this Agreement may execute a counterpart copy of this Agreement and deliver  the same by telecopier, or by an electronically or digitally scanned copy signed counterpart stored in an electronic or  digital format (e.g., “.pdf” or “.tft” format) which preserves the graphical or pictorial appearance of the original and  delivered by electronic or digital means, such as electronic mail, so that the same may be printed in a tangible format,  which shall be deemed an original for all purposes.  10.10 ENTIRE AGREEMENT.  THIS AGREEMENT, THE NOTES AND THE OTHER LOAN  DOCUMENTS CONSTITUTE THE ENTIRE AGREEMENT AMONG THE PARTIES HERETO AND THERETO  REGARDING THE SUBJECT MATTERS HEREOF AND THEREOF AND SUPERSEDE ALL PRIOR  AGREEMENTS AND UNDERSTANDINGS, ORAL OR WRITTEN, REGARDING SUCH SUBJECT MATTERS.   NO COURSE OF DEALING, COURSE OF PERFORMANCE, USAGE OF TRADE OR EVIDENCE OF ANY  PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS OR DISCUSSIONS OR OTHER  EXTRINSIC EVIDENCE OF ANY NATURE SHALL BE USED TO CONTRADICT, VARY, SUPPLEMENT OR  MODIFY ANY TERM OF THIS AGREEMENT OR THE OTHER LOAN DOCUMENTS.  THERE ARE NO ORAL  AGREEMENTS BETWEEN THE PARTIES.  10.11 Survival.  All covenants, agreements, representations and warranties made by the Loan Parties  herein and in the certificates or other instruments delivered in connection with or pursuant to this Agreement shall be  considered to have been relied upon by Bank and shall survive the execution and delivery of this Agreement and the  making of any advance of the Credit Facility, regardless of any investigation made by any such other party or on its  behalf and notwithstanding that Bank may have had notice or knowledge of any Default Condition or incorrect  representation or warranty at the time any credit is extended hereunder, and shall continue in full force and effect as  long as the principal of or any accrued interest on the Credit Facility or any fee or any other amount payable under  this Agreement is outstanding and unpaid and so long as any commitment of Bank to make advances under the Credit  Facility has not expired or terminated.  The provision entitled “Expenses; Indemnification” above shall survive and  remain in full force and effect regardless of the consummation of the transactions contemplated hereby, the repayment  of the Credit Facility, the expiration or termination of the Credit Facility or the termination of this Agreement or any  provision hereof.  All representations and warranties made herein, in the certificates, reports, notices, and other  documents delivered pursuant to this Agreement shall survive the execution and delivery of this Agreement and the  other Loan Documents, and the making of any advance by Bank under the Credit Facility.  10.12 Severability.  Any provision of this Agreement or any other Loan Document held to be illegal,  invalid or unenforceable in any jurisdiction, shall, as to such jurisdiction, be ineffective to the extent of such illegality,  invalidity or unenforceability without affecting the legality, validity or enforceability of the remaining provisions  hereof or thereof; and the illegality, invalidity or unenforceability of a particular provision in a particular jurisdiction  shall not invalidate or render unenforceable such provision in any other jurisdiction.  10.13 Gender and Number.  In this Agreement, whenever the context so requires, the neuter gender  includes the feminine and/or masculine, as the case may be and the singular number includes the plural.  10.14 Headings.  Any captions or headings in this Agreement are for convenience and reference and are  not to be considered a part hereof and shall not limit or otherwise affect any of the provisions or terms hereof.  

 

AMENDED AND RESTATED LOAN AGREEMENT – Page 35  10.15 Interpretation.  No provision of this Agreement shall be construed against or interpreted to the  disadvantage of any party hereto by any court or other governmental or judicial authority by reason of such Person  having or being deemed to have structured, written or dictated such provision.  10.16 Lack of Duress.  The Loan Parties represent and warrant to Bank that each Loan Party is a  sophisticated business Person, having had substantial experience in connection with financing and credit arrangements  such as contemplated by this Agreement, was duly represented by or had the opportunity to be represented by an  attorney in the negotiation of the documentation to evidence and secure the Credit Facility and bargained with Bank  at arm's length and without duress of any kind whatsoever relative to all of the terms and conditions pursuant to which  Bank agreed to make available the Credit Facility including, but not limited to, the terms and conditions contained in  this section.  10.17 Interest Rate Limitation.  The parties hereto stipulate and agree that it is their common and  overriding intent to contract in strict compliance with the applicable usury laws.  Notwithstanding anything herein to  the contrary, if at any time the interest rate or rates applicable to the Credit Facility, together with all fees, charges and  other amounts which may be treated as interest on such Loan under applicable law (collectively, the “Charges”), shall  exceed the maximum lawful rate of interest (the “Maximum Rate”) which may be contracted for, charged, taken,  received or reserved by Bank in accordance with applicable law, the rate of interest payable in respect of Credit  Facility, together with all Charges payable in respect thereof, shall be limited to the Maximum Rate.  If for any reason  the charges paid by any Loan Party exceed the Maximum Rate, Bank shall credit against the principal balance of the  Credit Facility (or, if such indebtedness shall have been paid in full, refund to the payor of such charges) such portion  of said charges as shall be necessary to ensure that the total charges do not exceed the Maximum Rate.  10.18 Patriot Act.  The Bank hereby notifies Loan Parties that pursuant to the requirements of the USA  PATRIOT Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001)) (the “Patriot Act”), it is required to  obtain, verify and record information that identifies Loan Parties, which information includes the name and address  of such Person and other information that will allow such Bank to identify such Person in accordance with the Patriot  Act.  Each of the Loan Parties shall provide such information and take such other actions as are reasonably requested  by the Bank in order to assist the Bank in maintaining compliance with the Patriot Act.  10.19 Amendment and Restatement.  On the date hereof (the “Restatement Date”), the Original Loan  Agreements shall be modified, amended and restated by this Agreement.  The parties hereto acknowledge and agree  that: (a) this Agreement and the other Loan Documents executed and delivered in connection herewith do not  constitute a novation, payment and reborrowing, or termination of the “Obligations” (as defined in the Original Loan  Agreements) under the Original Loan Agreements as in effect prior to the Restatement Date; (b) such “Obligations”  are in all respects continuing with only the terms thereof being amended and modified as provided in this Agreement;  (c) the Liens granted in the Collateral pursuant to the Loan Documents securing payment of such “Obligations” are in  all respects continuing and in full force and effect and secure the payment of the Obligations (as defined in this  Agreement) and are hereby fully ratified and affirmed; and (d) upon the effectiveness of this Agreement all loans  outstanding under the Original Loan Agreements immediately before the effectiveness of this Agreement will be part  of the Credit Facility hereunder on the terms and conditions set forth in this Agreement.  Without limitation on the  foregoing, each of the Loan Parties hereby fully and unconditionally ratifies and affirms all of the Loan Documents,  as amended, and agrees that all security interests and other Liens granted to Bank in the collateral thereunder shall  from and after the date hereof secure all Obligations hereunder in favor of Bank.  On and after the Restatement Date,  (a) each reference in the Loan Documents to the “Loan Agreement”, “thereunder”, “thereof” or similar words referring  to the Loan Agreement shall mean and be a reference to this Agreement, and (b) each reference in the Loan Documents  to the “Notes” shall mean and be the Notes as defined in this Agreement.  [Remainder of Page Intentionally Blank]  

 

EXHIBIT 10.1  AMENDED AND RESTATED LOAN AGREEMENT – Exhibit C-2   IN WITNESS WHEREOF, the parties have executed and delivered this Agreement as of the day and year  first above written.    Bank:       [REDACTED],  a [REDACTED] bank        By:     Name:  [REDACTED]  Title:    Senior Vice President          

 

AMENDED AND RESTATED LOAN AGREEMENT – Page 37  Borrower:    SHARPS COMPLIANCE, INC. OF TEXAS,  a Texas corporation d/b/a Sharps Compliance, Inc.      By: /s/Eric Bauer     Name: Eric Bauer     Title: Executive Vice President and Chief Financial Officer       SHARPS E-TOOLS.COM INC.,  a Delaware corporation       By: /s/Eric Bauer     Name: Eric Bauer     Title: Executive Vice President and Chief Financial Officer       SHARPS MANUFACTURING, INC.,  a Delaware corporation       By: /s/Eric Bauer     Name: Eric Bauer     Title: Executive Vice President and Chief Financial Officer       SHARPS ENVIRONMENTAL SERVICES, INC.,  a Delaware corporation d/b/a Sharps Environmental Services  of Texas, Inc.      By: /s/Eric Bauer     Name: Eric Bauer     Title: Executive Vice President and Chief Financial Officer       SHARPS SAFETY, INC.,  a Texas corporation       By: /s/Eric Bauer     Name: Eric Bauer     Title: Executive Vice President and Chief Financial Officer            

 

AMENDED AND RESTATED LOAN AGREEMENT – Page 38  ALPHA BIO/MED SERVICES, LLC,  a Pennsylvania limited liability company      By: /s/Eric Bauer     Name: Eric Bauer     Title: Executive Vice President and Chief Financial Officer     BIO-TEAM MOBILE LLC,  a Pennsylvania limited liability company      By: /s/Eric Bauer     Name: Eric Bauer     Title: Executive Vice President and Chief Financial Officer     CITIWASTE, LLC,  a New York limited liability company      By: /s/Eric Bauer     Name: Eric Bauer     Title: Executive Vice President and Chief Financial Officer     SHARPS PROPERTIES, LLC,  a Pennsylvania limited liability company      By: /s/Eric Bauer     Name: Eric Bauer     Title: Executive Vice President and Chief Financial Officer     MIDWEST MEDICAL WASTE, INC.,   a Kansas corporation       By: /s/Eric Bauer     Name: Eric Bauer     Title: Executive Vice President and Chief Financial Officer     AFFORDABLE MEDICAL WASTE, LLC,  an Indiana limited liability company      By: /s/Eric Bauer     Name: Eric Bauer     Title: Executive Vice President and Chief Financial Officer

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