Document:

Exhibit
10.2

 

INTERCREDITOR
AGREEMENT

 

This INTERCREDITOR
AGREEMENT (this “Agreement”), dated as of November 6, 2014, is by and between WELLS FARGO BANK, NATIONAL
ASSOCIATION, as lender and collateral agent (in such capacity, with its successors and assigns, and as more specifically defined
below, the “ABL Lender”), and U.S. BANK NATIONAL ASSOCIATION, as trustee and collateral agent (with its successors
and assigns, and as more specifically defined below, the “Noteholder Agent”), for the Indenture Secured Parties
(as defined below).

 

WHEREAS, SAExploration,
Inc., a Delaware corporation (the “Borrower”) and SAExploration Holdings, Inc., a Delaware corporation (“Holdings”),
certain subsidiaries of Holdings, as Guarantors, and the ABL Lender are parties to that certain Credit and Security Agreement dated
as of November 6, 2014 (as amended, restated, supplemented or otherwise modified from time to time, the “ABL Credit
Agreement”), pursuant to which, among other things, the ABL Lender has agreed to make loans and extend other financial
accommodations to the Borrower, which loans and financial accommodations are guaranteed by the other Loan Parties (as defined below);

 

WHEREAS, Holdings,
certain subsidiaries of Holdings (including the Borrower), as Guarantors, and the Noteholder Agent are parties to that certain
Indenture dated as of July 2, 2014 (as amended, restated, supplemented or otherwise modified from time to time, the “Indenture”),
pursuant to which, among other things, Holdings issued secured notes in the aggregate principal amount of $150,000,000 (the “Notes”),
which Notes are guaranteed by certain Subsidiaries of Holdings;

 

WHEREAS, the Loan Parties
have granted to the ABL Lender security interests in the ABL Collateral (as defined below) as security for payment and performance
of the ABL Obligations (as defined below); and

 

WHEREAS, the Loan Parties
have granted to the Noteholder Agent security interests in the Notes Collateral (as defined below) as security for payment and
performance of the Indenture Obligations (as defined below).

 

NOW THEREFORE, in consideration
of the foregoing and the mutual covenants contained herein and other good and valuable consideration, the existence and sufficiency
of which is expressly recognized by all of the parties hereto, the parties agree as follows:

 

SECTION 1. Definitions;
Rules of Construction.

 

1.1           UCC
Definitions. The following terms which are defined in the Uniform Commercial Code are used herein as so defined: Accounts,
Chattel Paper, Commercial Tort Claims, Deposit Accounts, Documents, Equipment, General Intangibles, Goods, Instruments, Inventory,
Investment Property, Letter of Credit, Letter of Credit Rights, Records and Supporting Obligations.

 

1.2.          Defined
Terms. The following terms, as used herein, have the following meanings:

 

“ABL Agreement”
means the collective reference to (a) the ABL Credit Agreement, (b) any Additional ABL Agreement and (c) any other credit agreement,
loan agreement, note agreement, promissory note, indenture or other agreement or instrument evidencing or governing the terms of
any indebtedness or other financial accommodation that has been incurred to extend, replace, refinance or refund in whole or in
part the indebtedness and other obligations outstanding under the ABL Credit Agreement (regardless of whether such replacement,
refunding or refinancing is a “working capital” facility, asset-based facility or otherwise), any Additional ABL Agreement
or any other agreement or instrument referred to in this clause (c) unless such agreement or instrument expressly provides
that it is not intended to be and is not an ABL Agreement hereunder (a “Replacement ABL Agreement”). Any reference
to the ABL Agreement hereunder shall be deemed a reference to any ABL Agreement then extant.

 

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“ABL Collateral”
means all Property of each Loan Party, whether now owned or hereafter acquired, whether arising before or after any Insolvency
Proceeding, in which a Lien is obtained, granted or purported to be granted at any time to the ABL Lender as security for any ABL
Obligation, excluding, in each case, Excluded Property other than Pledgor Foreign Property and ABL Lender Permitted Collateral.

 

“ABL Credit
Agreement” has the meaning set forth in the recitals above.

 

“ABL DIP Financing”
has the meaning set forth in Section 5.2(a).

 

“ABL Documents”
means the ABL Credit Agreement, each ABL Security Document, each ABL Guarantee and each other ABL Loan Document.

 

“ABL Guarantee”
means any Guarantee by any Loan Party of any or all of the ABL Obligations.

 

“ABL Lender”
has the meaning set forth in the introductory paragraph hereof. In the case of any Replacement ABL Agreement, the ABL Lender shall
be the Person identified as such in such agreement.

 

“ABL Lender
Cash Collateral” means cash collateral of the type described in subsection (6) of the definition of Excluded Property
that is pledged or delivered to ABL Lender for Hedge Obligations and letters of credit issued by ABL Lender securing, in the case
of letters of credit, an amount not to exceed 105% of the face amount of cash collateralized letters of credit issued upon the
application of Borrower and, in the case of Hedging Obligations, not to exceed the amount of such Hedging Obligations.

 

“ABL Lender
Permitted Collateral” has the meaning set forth in the definition of Excluded Property.

 

“ABL Lien”
means any Lien created by or pursuant to the ABL Security Documents.

 

“ABL Loan
Documents” means the “Loan Documents” as defined in the ABL Credit Agreement.

 

“ABL Obligations”
means (a) all principal of and interest (including any Post-Petition Interest) and premium (if any) on all loans made pursuant
to the ABL Agreement or any ABL DIP Financing by the ABL Lender, (b) all reimbursement obligations (if any) and interest thereon
(including any Post-Petition Interest) with respect to any letter of credit or similar instruments issued pursuant to the ABL Agreement,
(c) all Guarantee obligations, indemnities, fees, expenses and other amounts payable from time to time pursuant to the ABL Documents,
in each case whether or not allowed or allowable in an Insolvency Proceeding, and (d) all other “Obligations” as defined
under the ABL Credit Agreement, including, without limitation, Banking Services Obligations and Hedging Obligations. To the extent
any payment with respect to any ABL Obligation (whether by or on behalf of any Loan Party, as Proceeds of security, enforcement
of any right of setoff or otherwise) is declared to be a fraudulent conveyance or a preference in any respect, set aside or required
to be paid to a debtor in possession, any Indenture Secured Party, receiver or similar Person, then the obligation or part thereof
originally intended to be satisfied shall, for the purposes of this Agreement and the rights and obligations of the ABL Lender
and the Indenture Secured Parties, be deemed to be reinstated and outstanding as if such payment had not occurred.

 

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“ABL Obligations
Cap” means the amount of $30,000,000, plus fees, costs, and interest thereon, plus Hedging Obligations
relating to the ABL Obligations not to exceed $5,000,000, plus Indebtedness at any time owing to ABL Lender on account of
an ABL DIP Financing in a principal amount not to exceed $5,000,000.

 

“ABL Obligations
Payment Date” means the first date on which (a) the ABL Obligations (other than those that constitute Unasserted Contingent
Obligations and in the case of any sale of ABL Priority Collateral, any Excess ABL Obligations) have been indefeasibly paid in
cash in full (or cash collateralized or defeased in accordance with the terms of the ABL Documents), (b) all commitments to extend
credit under the ABL Documents have been terminated, (c) there are no outstanding letters of credit issued under the ABL Documents
(other than such as have been cash collateralized or defeased in accordance with the terms of the ABL Documents), (d) any other
conditions to termination of the ABL Credit Agreement and ABL Priority Liens set forth in Sectiuon 2.10 of the ABL Credit Agreement
have been satisfied, and (e) so long as the Indenture Obligations Payment Date shall not have occurred, the ABL Lender has delivered
a written notice to the Noteholder Agent stating that the events described in clauses (a), (b), (c) and (d),
have occurred to the satisfaction of the ABL Lender.

 

“ABL Post-Petition
Assets” has the meaning set forth in Section 5.2(b).

 

“ABL
Priority Collateral” means all Collateral consisting of the following:

 

(1)         Accounts,
payment intangibles, and all other receivables;

 

(2)         Equipment
and documents therefor;

 

(3)         Investment
Property, excluding any Equity Interests in (i) any Loan Party or (ii) any direct Subsidiary of a Loan Party;

 

(4)         all
Deposit Accounts with any bank or other financial institution, commodity accounts, collection accounts, and securities accounts
(including all cash, cash equivalents, financial assets, negotiable instruments and other evidence of payment, and other funds
on deposit therein or credited thereto);

 

(5)         [Reserved]

 

(6)         Letter
of Credit Rights, Supporting Obligations and Commercial Tort Claims with respect to any of the assets identified in clauses (1)
through (4) and letters of credit transferred to the ABL Lender;

 

(7)         all
contracts, contract rights, Inventory, General Intangibles, documents, Chattel Paper (whether tangible or electronic), drafts and
acceptances, payment intangibles and instruments, in each case, in connection with, used in, acquired for, or necessary to the
realization on any of the assets identified in clauses (1) through (6); excluding intercompany notes by or among the Loan Parties
and their respective Subsidiaries;

 

(8)         all
books and records relating to the items referred to in clauses (1) through (7); and

 

(9)         all
collateral security and guarantees with respect to any of the foregoing and, subject to the terms of this Agreement, all proceeds,
products, substitutions, replacements, accessions, cash, money, insurance proceeds, instruments, securities, security entitlements,
financial assets and deposit accounts received as proceeds of any of the foregoing and any other “proceeds” of the
above as such are set forth in the ABL Loan Documents;

 

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provided that
(i) any Collateral, regardless of type, received in exchange for ABL Priority Collateral pursuant to an Enforcement Action in accordance
with the terms of the ABL Agreement and this Agreement shall be treated as ABL Priority Collateral under this Agreement, the Indenture
Security Documents and the ABL Security Documents; (ii) any Collateral regardless of type, if received in exchange for Notes Priority
Collateral pursuant to an Enforcement Action in accordance with the terms of the Indenture and this Agreement, shall be treated
as Notes Priority Collateral under this Agreement, the Indenture Security Documents and the ABL Security Documents.

 

“ABL Priority
Liens” means, with respect to the ABL Priority Collateral, all Liens securing the ABL Obligations.

 

“ABL Security
Documents” means any and all agreements securing satisfaction of the ABL Obligations, including the ABL Credit Agreement,
those certain Deposit Account Control Agreements between the ABL Lender, the Noteholder Agent, the Borrower, and certain other
Loan Parties, that certain Preferred Ship Mortgage of even date herewith, executed by SAExploration Seismic Services (US), LLC
in favor of the ABL Lender, and any other ABL Loan Documents under which a security interest is granted to the ABL Lender.

 

“Access Period”
means, with respect to each Mortgaged Real Estate Asset, the period, following the commencement of any Enforcement Action, which
begins on the earlier of (a) the fifth Business Day after the ABL Lender provides the Noteholder Agent with the notice of its election
to request access to such Mortgaged Real Estate Asset pursuant to Section 3.4(c) and (b) the fifth Business Day after the
Noteholder Agent provides the ABL Lender with notice that the Noteholder Agent (or its agent) has obtained possession or control
of such Mortgaged Real Estate Asset, and ends on the earliest of (i) the day which is 180 days after the date (the “Initial
Access Date”) on which the ABL Lender receives or gives the notice described above and takes physical possession
of, removes or otherwise controls physical access to, or actually uses, such Mortgaged Real Estate Asset plus such number
of days, if any, after the Initial Access Date that it is stayed or otherwise prohibited by law or court order from exercising
remedies with respect to any ABL Priority Collateral, (ii) the date on which all or substantially all of the ABL Priority Collateral
is removed from such Mortgaged Real Estate Asset, (iii) the ABL Obligations Payment Date and (iv) the date on which the default
which resulted in such Enforcement Action has been cured or waived in writing.

 

“Additional
ABL Agreement” means any agreement approved for designation as such by the ABL Lender and the Noteholder Agent.

 

“Additional
Debt” has the meaning set forth in Section 10.5(b).

 

“Additional
Indenture Agreement” means any agreement approved for designation as such by the ABL Lender and the Noteholder Agent.

 

“Affiliate”
of any specified Person means any other Person directly or indirectly controlling or controlled by or under direct or indirect
common control with such specified Person. For purposes of this definition, “control,” as used with respect to any
Person, means the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies
of such Person, whether through the ownership of voting securities, by agreement or otherwise, provided that beneficial ownership
of 20% or more of the Voting Stock of a Person will be deemed to be control. For purposes of this definition, the terms “controlling,”
“controlled by,” and “under common control with” have correlative meanings.

 

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“Banking
Services Obligations” means with respect to any Loan Party, any obligations of such Loan Party owed to ABL Lender (or
any of its affiliates) in respect of Cash Management Services.

 

“Bankruptcy
Code” means Title 11 of the United States Code entitled “Bankruptcy”, as now and hereafter in effect, or
any successor statute.

 

“Board of
Directors” means:

 

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

 

(2)         with
respect to a partnership, the board of directors of a direct or indirect general partner of the partnership;

 

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

 

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

 

“Borrower”
has the meaning set forth in the recitals above.

 

“Business
Day” means any day that is not a Saturday, Sunday or other day on which commercial banks in New York City are authorized
or required by law to remain closed.

 

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

 

“Capital Stock”
means, (a) in the case of a corporation, capital stock, (b) in the case of an association or business entity, any and all shares,
interests, participations, rights or other equivalents (however designated) in the equity of such entity, (c) in the case of a
partnership or limited liability company, partnership interests (whether general or limited) or membership interests, and (d) in
the case of any other entity, any other interests or participations that confer on a Person that right to receive a share of the
profits and losses of, or distributions of assets of, the issuing entity, but excluding for each of (a) through (d) any debt securities
convertible or exchangeable for Capital Stock, whether or not such debt securities include any right of participation with Capital
Stock.

 

“Cash Management
Services” means any cash management or related services including treasury, depository, return items, overdraft, controlled
disbursement, merchant stored value cards, e-payables services, electronic funds transfer, interstate depository network, automatic
clearing house transfer (including the Automated Clearing House processing of electronic funds transfers through the direct Federal
Reserve Fedline system) and other cash management arrangements.

 

“Class”,
when used in reference to (a) any Secured Obligations, refers to whether such Secured Obligations are the ABL Obligations or the
Indenture Obligations, (b) any Representative, refers to whether such Representative is the ABL Lender or the Noteholder Agent,
(c) any Secured Parties, refers to whether such Secured Parties are the Indenture Secured Parties or the ABL Lender and/or (d)
any Loan Documents, refers to whether such Loan Documents are the ABL Documents or the Indenture Documents.

 

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“Collateral”
means, collectively, all ABL Collateral and all Notes Collateral.

 

“Common Collateral”
means all Collateral that constitutes both ABL Collateral and Notes Collateral.

 

“Comparable
Security Document” means, in relation to any Senior Collateral subject to any Senior Security Document, that Junior Security
Document that creates a security interest in the same Senior Collateral, granted by the same Loan Party, as applicable.

 

“Discharge
of ABL Obligations”, as used in (and for purposes of) any of the Indenture Documents, means the ABL Obligations Payment
Date.

 

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

 

“Enforcement
Action” means, with respect to the ABL Obligations or the Indenture Obligations, the exercise of any default rights and
remedies with respect to any Common Collateral securing such obligations or the commencement or prosecution of enforcement of any
of such rights and remedies with respect to Common Collateral under, as applicable, the ABL Documents or the Indenture Documents,
or applicable law, and the exercise of any default rights or remedies of a secured creditor under the Uniform Commercial Code of
any applicable jurisdiction or under the Bankruptcy Code.

 

“Equity Interests”
mean, with respect to any Person, any and all shares, interests, rights to purchase, warrants, options, participations or other
equivalents, including membership interests (however designated, whether voting or nonvoting), of equity of such Person, including,
if such Person is a partnership, partnership interests (whether general or limited), joint venture interests, or if such Person
is a limited liability company, membership interests and any other interest or participation that confers on a Person the right
to receive a share of the profits and losses of, or distributions of Property of, such partnership, whether outstanding on the
date hereof or issued on or after the Closing Date, but excluding debt securities convertible or exchangeable into such equity.

 

“Excess ABL
Obligations” means the sum of (a) the portion of the principal amount of the loans outstanding under the ABL Documents
and the undrawn amount of outstanding letters of credit issued thereunder that is in excess of the ABL Obligations Cap, plus
(b) the portion of interest and fees that accrues or is charged with respect to that portion of the principal amount of the loans
and letters of credit described in clause (a) of this definition.

 

“Excluded
Accounts” means, as to any Loan Party, all Deposit Accounts used solely for (i) payroll and/or accrued employee benefits,
or (ii) employee benefit plans.

 

“Excluded Property” means:

 

(1)         all
of any Loan Party’s right, title, and interest in any leasehold or other non fee simple interest in any real property (whether
leased or otherwise held on the date hereof or leased or otherwise acquired after the date hereof);

 

(2)         any
permit or lease or license or any contractual obligation entered into by any Loan Party that (a) prohibits or requires the consent
of any Person other than Holdings or any of its Affiliates as a condition to the creation by any Loan Party of a Lien on any right,
title or interest in such permit, lease, license or contractual agreement or any Equity Interests or equivalent related thereto,
or (b) to the extent that any Legal Requirement applicable thereto prohibits the creation of a Lien thereon, but only, with respect
to the prohibition in (a) and (b), to the extent, and for as long as, such prohibition is not terminated or rendered unenforceable
or otherwise deemed ineffective by the UCC or any other Legal Requirement;

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(3)         all
foreign intellectual property and any “intent-to-use” trademark applications prior to the filing of a “Statement
of Use” or “Amendment to Allege Use” with respect thereto, to the extent, if any, that, and solely during the
period, if any, in which the grant of a security interest therein would impair the validity or enforceability of such intent-to-use
trademark application under applicable federal law;

 

(4)         fixed
or capital assets owned by any Loan Party that are subject to a purchase money Lien or a capital lease, if the contractual obligation
pursuant to which such Lien is granted (or in the document providing for such capital lease) prohibits or requires the consent
of any Person other than Holdings or any of its Affiliates as a condition to the creation of any other Lien on such equipment;

 

(5)         motor
vehicles subject to certificates of title (except to the extent perfection can be obtained by the filing of UCC financing statements);

 

(6)         cash
collateral for letters of credit or Hedging Obligations permitted by clauses (1), (9), and (11) of Section 4.08(b) of the
Indenture securing, in the case of letters of credit, an amount not to exceed the face amount of cash collateralized letters of
credit for the benefit of any of the Loan Parties and, in the case of Hedging Obligations, not to exceed the amount of such Hedging
Obligations;

 

(7)         (a)
the Equity Interests in the Kuukpik Joint Venture, (b) any interest in any Equity Interests that is not directly owned by any Loan
Party, and (c) any interest in any Equity Interests of any other joint venture, partnership, or other entity that was or is existing
(i) on the Issue Date hereof, or (ii) from and after the Issue Date if such joint venture, partnership, or other entity is not
a Subsidiary of a Loan Party, in each case if and for so long as the grant of a Lien with respect thereto is not permitted by the
other partner, joint venture or joint venture partner, as applicable, and the applicable Loan Party has used commercially reasonable
efforts to obtain the right to grant a lien in such joint venture, partnership or other entity;

 

(8)         Equity
Interests in excess of 65% of all outstanding voting Equity Interests of any Foreign Subsidiary;

 

(9)         any
ABL Priority Collateral that has been released in accordance with the ABL Security Documents and this Agreement;

 

(10)        any
Notes Priority Collateral that has been released in accordance with the Indenture, the Indenture Security Documents and this Agreement;

 

(11)        the
Excluded Accounts;

 

(12)        any
property or assets owned at any time or from time to time by any Foreign Subsidiary; and

 

(13)        any
asset or property (a) with a Fair Market Value of less than $20.0 million, or (b) constituting Equity Interests in a Foreign Subsidiary,
in each case as to which the Board of Directors determines in good faith that the costs of obtaining or perfecting such a security
interest are excessive in relation to the practical benefit to the Secured Parties of the security afforded thereby (based on the
Fair Market Value of such asset or property) (it being understood that such determination in respect of assets described in clauses
(a) and (b) shall only apply with respect to actions required to create or perfect a security interest in the Collateral under
the laws of any non-U.S. jurisdiction);

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provided, that notwithstanding
anything to the contrary contained in clauses (1) through (13) above to the contrary, (a) Excluded Property shall not include any
Proceeds of Property described in clauses (1) through (13) above (unless such proceeds are also described in such clauses), and
(b) subject to the provisions of this Agreement, no property or assets that are subject to a Lien securing obligations owed any
Secured Party shall constitute Excluded Property so long as such Lien remains in effect; provided, further, that
at such time as any of the foregoing Property no longer constitutes Excluded Property, such Property shall immediately constitute
Collateral and a Lien on and security interest in and to all of the right, title and interest of the applicable Loan Party in,
to, and under such Property shall immediately attach thereto.

 

For the purposes of clarity, and notwithstanding
anything to the contrary herein, the parties acknowledge the following with respect to Excluded Property (collectively, the “ABL
Lender Permitted Collateral”): (a) under certain circumstances set forth in the ABL Documents the ABL Lender may require
the Loan Parties to grant and perfect Liens against certain motor vehicles that are subject to certificates of title as described
in clause (5) above; (b) ABL Lender Cash Collateral may be pledged by a Loan Party to secure letters of credit and hedging obligations
with the ABL Lender so long as the cash collateral is limited to the amounts specified in the definition of ABL Lender Cash Collateral,
notwithstanding clause (6) above; (c) to the extent the ABL Lender is the depository bank for a Loan Party, Excluded Accounts described
in clause (11) above will be subject to the security interest and setoff rights granted to the ABL Lender in Deposit Accounts and
subject to the terms of any applicable account agreement and depository account control agreement; and (d) Pledgor Foreign Property
described in clause (13) above constitutes Excluded Property only to the extent specific actions are required to create or perfect
a security interest in such Collateral under the laws of any non-U.S. jurisdiction. Pursuant to the terms of Section 2.4(b), the
ABL Lender is deemed to hold for the benefit of the Noteholder Agent (subject to the Lien Priority hereof) any such Liens granted
with respect to (i) motor vehicles subject to certificates of title, (ii) ABL Lender Cash Collateral for any letter of credit to
the extent the cash collateral exceeds the face amount of the letter of credit (subject to the terms of any applicable deposit
account control agreement), and (iii) Excluded Accounts.

 

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

 

“Foreign Equity”
means Equity Interests in any Foreign Subsidiary that are owned by any Loan Party.

 

“Foreign Subsidiary”
means any Restricted Subsidiary of Holdings that is not a Domestic Subsidiary.

 

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

 

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“Governmental
Authority” means any federal, state, local or foreign (whether civil, criminal, military or otherwise) court, central
bank or governmental agency, tribunal, authority, instrumentality or regulatory body or any subdivision thereof or other entity
exercising executive, legislative, judicial, taxing, regulatory or administrative powers of or pertaining to government (including
any supra-national bodies such as the European Union or the European Central Bank).

 

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

 

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

 

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

 

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

 

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

 

“Holdings”
has the meaning set forth in the recitals above.

 

“Impairment”
has the meaning set forth in Section 2.7.

 

“Indebtedness”
means, with respect to any specified Person, any indebtedness of such Person (excluding accrued expenses and trade payables), whether
or not contingent:

 

(1)         in
respect of borrowed money;

 

(2)         evidenced
by bonds, notes, debentures or similar instruments or letters of credit (or reimbursement agreements in respect thereof);

 

(3)         in
respect of banker’s acceptances;

 

(4)         representing
Capital Lease Obligations;

 

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

 

(6)         representing
any Hedging Obligations,

 

if and to the extent
any of the preceding items (other than letters of credit and Hedging Obligations) would appear as a liability upon a balance sheet
of the specified Person prepared in accordance with GAAP. In addition, the term “Indebtedness” includes all Indebtedness
of others secured by a Lien on any asset of the specified Person (whether or not such Indebtedness is assumed by the specified
Person) and, to the extent not otherwise included, the Guarantee by the specified Person of any Indebtedness of any other Person.
Indebtedness shall be calculated without giving effect to the effects of Statement of Financial Accounting Standards No. 133 and
related interpretations to the extent such effects would otherwise increase or decrease an amount of Indebtedness for any purpose
under the ABL Documents or the Indenture Documents as a result of accounting for any embedded derivatives created by the terms
of such Indebtedness.

 

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“Indenture”
has the meaning set forth in the recitals above.

 

“Indenture
Agreement” means the collective reference to (a) the Indenture; (b) any Additional Indenture Agreement; (c) any agreement
under which Notes are sold or issued pursuant to the terms of the Indenture or any Supplemental Indenture relating to Additional
Notes, if any, including, without limitation, that certain Purchase Agreement, dated as of June 25, 2014 by and between Holdings,
Jeffreries LLC and certain subsidiaries of Holdings, as guarantors; and (d) any other credit agreement, loan agreement, note agreement,
promissory note, indenture or other agreement or instrument evidencing or governing the terms of any Indebtedness or other financial
accommodation that has been incurred to extend, replace, refinance or refund in whole or in part the Indebtedness and other obligations
outstanding under or issued pursuant to the Indenture, any Additional Indenture Agreement or any other agreement or instrument
referred to in this clause (d) unless such agreement or instrument expressly provides that it is not intended to be and
is not an Indenture Agreement hereunder (a “Replacement Indenture Agreement”). Any reference to the Indenture
Agreement hereunder shall be deemed a reference to any Indenture Agreement then extant.

 

“Indenture
Documents” means the Indenture Agreement, each Indenture Security Document and each Indenture Guarantee.

 

“Indenture
Guarantee” means any Guarantee by any Loan Party of any or all of the Indenture Obligations.

 

“Indenture
Lien” means any Lien created by or pursuant to the Indenture Security Documents.

 

“Indenture
Obligations” means (a) all principal of and interest (including any Post-Petition Interest) and premium (if any) on all
indebtedness issued under the Indenture Agreement or any Notes DIP Financing by the Indenture Secured Parties, and (b) all Guarantee
obligations, indemnities, fees, expenses and other amounts payable from time to time pursuant to the Indenture Documents, in each
case whether or not allowed or allowable in an Insolvency Proceeding. To the extent any payment with respect to any Indenture Obligation
(whether by or on behalf of any Loan Party, as Proceeds of security, enforcement of any right of setoff or otherwise) is declared
to be a fraudulent conveyance or a preference in any respect, set aside or required to be paid to a debtor in possession, the ABL
Lender, receiver or similar Person, then the obligation or part thereof originally intended to be satisfied shall, for the purposes
of this Agreement and the rights and obligations of the ABL Lender and the Indenture Secured Parties, be deemed to be reinstated
and outstanding as if such payment had not occurred.

 

“Indenture
Obligations Payment Date” means the first date on which (a) the Indenture Obligations (other than those that constitute
Unasserted Contingent Obligations) have been indefeasibly paid in cash in full, (b) all commitments to extend credit under the
Indenture Documents have been terminated, and (c) so long as the ABL Obligations Payment Date shall not have occurred, the Noteholder
Agent has delivered a written notice to the ABL Lender stating that the events described in clauses (a) and (b) have
occurred to the satisfaction of the Indenture Secured Parties.

 

“Indenture
Secured Parties” means the Noteholder Agent and the Noteholders.

 

    	- 10 -

    	 

    

 

“Indenture
Security Documents” means any and all agreements securing satisfaction of the Indenture Obligations, including, without
limitation, that certain Security Agreement, dated as of July 2, 2014 by and between the Borrower and the other Loan Parties, as
co-Pledgors, and the Noteholder Agent, that certain Trademark Security Agreement, dated as of July 2, 2014 by and between the Borrower
and the other Loan Parties, as co-Pledgors, and the Noteholder Agent, those certain Deposit Account Control Agreements of even
date herewith between the ABL Lender, the Noteholder Agent, the Borrower, and certain other Loan Parties, and that certain Preferred
Ship Mortgage of even date herewith, executed by SAExploration Seismic Services (US), LLC in favor of the Noteholder Agent.

 

“Insolvency
Proceeding” means with respect to any Person, (a) any voluntary or involuntary case or proceeding under the Bankruptcy
Code with respect to such Person, (b) any other voluntary or involuntary insolvency, reorganization or bankruptcy case or proceeding,
or any receivership, liquidation, reorganization or other similar case or proceeding with respect to such Person or with respect
to material portion of its assets; (c) any composition of liabilities or similar arrangement relating to such Person, whether or
not under a court’s jurisdiction or supervision; (d) any liquidation, dissolution, reorganization or winding up of such Person,
whether voluntary or involuntary, whether or not under a court’s jurisdiction or supervision, and whether or not involving
insolvency or bankruptcy; or (e) any general assignment for the benefit of creditors or any other marshaling of assets and liabilities
of such Person.

 

“Intervening
Creditor” has the meaning set forth in Section 2.7.

 

“Intervening
Lien” has the meaning set forth in Section 2.7.

 

“Issue Date”
means July 2, 2014.

 

“Joint Venture”
means a joint venture, partnership or other similar arrangement, whether in corporate, partnership or other legal form; provided,
in no event shall any corporate Subsidiary of any Person be considered to be a Joint Venture to which such Person is a party.

 

“Junior Collateral”
means with respect to any Junior Secured Party, any Collateral on which it has a Junior Lien.

 

“Junior Documents”
means, collectively, with respect to any Junior Obligations, any provision pertaining to such Junior Obligation in any Loan Document
or any other document, instrument or certificate evidencing or delivered in connection with such Junior Obligation.

  

“Junior Liens”
means (a) with respect to any ABL Priority Collateral, all Liens securing the Indenture Obligations and (b) with respect to any
Notes Priority Collateral, all Liens securing the ABL Obligations.

 

“Junior Obligations”
means (a) with respect to any ABL Priority Collateral, all Indenture Obligations and (b) with respect to any Notes Priority Collateral,
all ABL Obligations.

  

“Junior Representative”
means (a) with respect to any ABL Obligations or any ABL Priority Collateral, the Noteholder Agent and (b) with respect to any
Indenture Obligations or any Notes Priority Collateral, the ABL Lender.

  

“Junior Secured
Parties” means (a) with respect to the ABL Priority Collateral, all Indenture Secured Parties and (b) with respect to
the Notes Priority Collateral, the ABL Lender.

 

“Junior Security
Documents” means with respect to any Junior Secured Party, the Security Documents that secure the Junior Obligations.

    	- 11 -

    	 

    

  

“Kuukpik Joint
Venture” means Kuukpik/SAExploration, LLC, an Alaska limited liability company and a joint venture between the Borrower
and Kuukpik Corporation.

  

“Legal Requirements”
means, as to any Person, the Organizational Documents of such Person, and any governmental treaty, law (including the common law),
statute, ordinance, code, rule, regulation, guidelines, license, permit requirement, Order or determination of an arbitrator or
a court or other Governmental Authority, and the interpretation or administration thereof, in each case applicable to or binding
upon such Person or any of its Property or to which such Person or any of its Property is subject.

 

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

 

“Lien Priority”
means with respect to any Lien of the ABL Lender or the Noteholder Agent in the Common Collateral, the order of priority of such
Lien specified in Section 2.1.

 

“Loan Documents”
shall mean, collectively, the ABL Documents and the Indenture Documents.

 

“Loan Party”
means Holdings, the Borrower and each Subsidiary of Holdings that is now or hereafter becomes a party to any ABL Document or Indenture
Document. All references in this Agreement to any Loan Party shall include such Loan Party as a debtor-in-possession and any receiver
or trustee for such Loan Party in any Insolvency Proceeding.

 

“Mortgaged
Real Estate Asset” means a real estate asset subject to a mortgage in favor of the Noteholder Agent.

 

“Mortgages”
has the meaning specified in Section 2.6(a).

 

“Non-Recourse
Debt” means Indebtedness:

 

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

 

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

 

(3)         as
to which the lenders will not have any recourse to the stock or assets of Holdings or any of its Restricted Subsidiaries (other
than Equity Interests of an Unrestricted Subsidiary).

 

“Note Post-Petition
Assets” has the meaning set forth in Section 5.2(a).

 

“Noteholder
Agent” has the meaning set forth in the recitals above.

 

“Noteholders”
means the holders of the Notes.

 

    	- 12 -

    	 

    

  

“Notes”
has the meaning set forth in the recitals above.

 

“Notes Collateral”
means all Property of each Loan Party, whether now owned or hereafter acquired, whether arising before or after any Insolvency
Proceeding, in which a Lien is granted or purported to be granted to any Indenture Secured Party as security for any Indenture
Obligation, excluding, in each case, Excluded Property, other than Pledgor Foreign Property.

 

“Notes DIP
Financing” has the meaning set forth in Section 5.2(b).

 

“Notes Priority
Collateral” means all Notes Collateral other than ABL Priority Collateral; provided that (i) any Collateral, regardless
of type, received in exchange for Notes Priority Collateral pursuant to an Enforcement Action in accordance with the terms of the
Indenture Agreement and this Agreement shall be treated as Notes Priority Collateral under this Agreement, the Indenture Security
Documents and the ABL Security Documents; (ii) any Collateral of the type that constitutes Notes Priority Collateral, if received
in exchange for ABL Priority Collateral pursuant to an Enforcement Action in accordance with the terms of the ABL Agreement and
this Agreement, shall be treated as ABL Priority Collateral under this Agreement, the Indenture Security Documents and the ABL
Security Documents; and (iii) Notes Priority Collateral shall exclude, however, all ABL Priority Collateral (other than ABL Priority
Collateral which is treated as Notes Priority Collateral as set forth in clause (i) above), it being understood and agreed
that the Indenture Secured Parties remain entitled to the benefit of their second priority Lien in any such Collateral.

 

“Organizational
Documents” means, with respect to any Person, (a) in the case of any corporation, the certificate of incorporation and
by-laws (or similar documents) of such Person, (b) in the case of any limited liability company, the certificate of formation and
operating agreement (or similar documents) of such Person, (c) in the case of any limited partnership, the certificate of formation
and limited partnership agreement (or similar documents) of such Person (and, where applicable, the equity holders or shareholders
registry of such Person), (d) in the case of any general partnership, the partnership agreement (or similar document) of such Person,
(e) in any other case, the functional equivalent of the foregoing, and (f) any shareholder, voting trust or similar agreement between
or among any holders of Equity Interests of such Person.

 

“Person”
means and includes natural persons, corporations, limited partnerships, general partnerships, partnerships, limited liability companies,
limited liability partnerships, joint stock companies, Joint Ventures, associations, companies, trusts, banks, trust companies,
land trusts, business trusts or other organizations, whether or not legal entities, and Governmental Authorities.

 

“Pledgor Foreign
Property” means any asset or property of the nature described in clause (13) of the definition of Excluded Property.

 

“Post-Petition
Interest” means any interest or entitlement to fees or expenses or other charges that accrues after the commencement
of any Insolvency Proceeding (or would accrue but for the commencement of an Insolvency Proceeding), whether or not allowed or
allowable in any such Insolvency Proceeding.

 

“Priority
Collateral” means the ABL Priority Collateral or the Notes Priority Collateral.

 

    	- 13 -

    	 

    

 

“Proceeds”
means (a)(i) when used with respect to the ABL Priority Collateral, all “proceeds,” as defined in Article 9 of the
Uniform Commercial Code (including, without limitation, insurance proceeds payable on account of ABL Priority Collateral), with
respect to the ABL Priority Collateral, and amounts recovered under any business interruption insurance, (ii) when used with
respect to the Notes Priority Collateral, all “proceeds,” as defined in Article 9 of the Uniform Commercial Code (including,
without limitation, insurance proceeds on Notes Priority Collateral but excluding any business interruption insurance), with respect
to the Notes Priority Collateral, and (iii) when used with respect to the Common Collateral, all “proceeds,” as defined
in Article 9 of the Uniform Commercial Code, with respect to the Common Collateral and (b) whatever is recoverable or recovered
when any ABL Priority Collateral, Notes Priority Collateral or Common Collateral, as applicable, is sold, exchanged, collected,
or disposed of, whether voluntarily or involuntarily.

 

“Property”
means any right, title, or interest in or to property or assets of any kind whatsoever, whether real, personal or mixed and whether
tangible or intangible and including Equity Interests of any other Person owned by the Person in question and whether now in existence
or owned or hereafter entered into or acquired, including all Real Property, cash, securities, accounts, revenues and contract
rights.

 

“Real Estate
Asset” means, at any time of determination, any fee interest then owned by any Loan Party in any real property.

 

“Recovery”
has the meaning set forth in Section 5.5.

 

“Replacement
ABL Agreement” has the meaning set forth in the definition of “ABL Agreement.”

 

“Replacement
Indenture Agreement” has the meaning set forth in the definition of “Indenture Agreement.”

 

“Representative”
means each of the ABL Lender and the Noteholder Agent.

 

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

 

“Retained
Interest” has the meaning set forth in Section 7.5.

 

“Secured Obligations”
means the ABL Obligations and the Indenture Obligations.

 

“Secured Parties”
means the ABL Lender and the Indenture Secured Parties.

 

“Security
Documents” means, collectively, the ABL Security Documents and the Indenture Security Documents.

 

“Senior Collateral”
means with respect to any Senior Secured Party, any Collateral on which it has a Senior Lien.

 

“Senior Documents”
means, collectively, with respect to any Senior Obligation, any provision pertaining to such Senior Obligation in any Loan Document
or any other document, instrument or certificate evidencing or delivered in connection with such Senior Obligation.

 

“Senior Liens”
means (a) with respect to the ABL Priority Collateral, all Liens securing the ABL Obligations and (b) with respect to the Notes
Priority Collateral, all Liens securing the Indenture Obligations.

 

“Senior Obligations”
means (a) with respect to any ABL Priority Collateral, all ABL Obligations and (b) with respect to any Notes Priority Collateral,
all Indenture Obligations.

 

    	- 14 -

    	 

    

  

“Senior Obligations
Payment Date” means (a) with respect to ABL Obligations, the ABL Obligations Payment Date and (b) with respect to any
Indenture Obligations, the Indenture Obligations Payment Date.

 

“Senior Representative”
means (a) with respect to any ABL Priority Collateral, the ABL Lender and (b) with respect to any Notes Priority Collateral,
the Noteholder Agent.

 

“Senior Secured
Parties” means (a) with respect to the ABL Priority Collateral, the ABL Lender and (b) with respect to the Notes Priority
Collateral, the Indenture Secured Parties.

 

“Senior Security
Documents” means with respect to any Senior Secured Party, the Security Documents that secure the Senior Obligations.

 

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

 

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

 

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

 

(2)         any
partnership or limited liability company of which (a) more than 50% of the capital accounts, distribution rights, total equity
and voting interests or general and limited partnership interests, as applicable, are owned or controlled, directly or indirectly,
by such Person or one or more of the other Subsidiaries of that Person or a combination thereof, whether in the form of membership,
general, special or limited partnership interests or otherwise, and (b) such Person or any Subsidiary of such Person is a controlling
general partner or controlling managing member or otherwise controls such entity.

 

“Triggering
Event” means (i) the acceleration of the ABL Obligations prior to maturity, (ii) the termination of the ABL Lender’s
commitment to make advances under the ABL Documents, by written notice, (iii) the exercise of any Enforcement Action, (iv) any
default in any scheduled payment of principal, premium, if any, interest or fees under the Indenture Agreement or under the ABL
Credit Agreement that remains uncured or unwaived for a period of 30 consecutive days, or (v) the commencement of an Insolvency
Proceeding.

 

“Unasserted
Contingent Obligations” means, at any time, ABL Obligations or Indenture Obligations, as applicable, for taxes, costs,
indemnifications, reimbursements, damages and other liabilities (excluding (a) the principal of, and interest and premium (if any)
on, and fees and expenses relating to, any ABL Obligation or Indenture Obligation, as applicable, and (b) with respect to ABL Obligations,
contingent reimbursement obligations in respect of amounts that may be drawn under outstanding letters of credit) in respect of
which no assertion of liability (whether oral or written) and no claim or demand for payment (whether oral or written) has been
made (and, in the case of ABL Obligations or Indenture Obligations, as applicable, for indemnification, no notice for indemnification
has been issued by the indemnitee) at such time.

 

    	- 15 -

    	 

    

  

“Uniform Commercial
Code” or “UCC” means the Uniform Commercial Code as in effect from time to time in the applicable
jurisdiction.

 

“Unrestricted
Subsidiary” means any Subsidiary of Holdings that is designated by the Board of Directors of Holdings as an Unrestricted
Subsidiary pursuant to a resolution of the Board of Directors, but only to the extent that such Subsidiary:

 

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

 

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

 

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

 

(4)         has
not guaranteed or otherwise directly or indirectly provided credit support for any Indebtedness of Holdings or any of its Restricted
Subsidiaries.

 

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

 

1.3           Rules
of Construction. The definitions of terms herein shall apply equally to the singular and plural forms of the terms defined.
Whenever the context may require, any pronoun shall include the corresponding masculine, feminine and neuter forms. The words “include”,
“includes” and “including” shall be deemed to be followed by the phrase “without limitation”.
The word “will” shall be construed to have the same meaning and effect as the word “shall”. Unless the
context requires otherwise (a) any definition of or reference to any agreement, instrument or other document herein shall be construed
as referring to such agreement, instrument or other document as from time to time amended, supplemented or otherwise modified (subject
to any restrictions on such amendments, supplements or modifications set forth herein), (b) any reference herein to any Person
shall be construed to include such Person's successors and assigns, (c) the words “herein”, “hereof” and
“hereunder”, and words of similar import, shall be construed to refer to this Agreement in its entirety and not to
any particular provision hereof, (d) all references herein to Articles, Sections, Exhibits and Schedules shall be construed
to refer to Articles and Sections of, and Exhibits and Schedules to, this Agreement, (e) any reference to any law or regulation
herein shall, unless otherwise specified, refer to such law or regulation as amended, modified or supplemented from time to time
and (f) the words “asset” and “property” shall be construed to have the same meaning and effect and to
refer to any and all tangible and intangible assets and properties, including cash, securities, accounts and contract rights.

 

SECTION 2. Lien Priority.

 

2.1           Lien
Subordination. Notwithstanding the date, time, method, manner or order of grant, attachment or perfection of any Junior Lien
in respect of any Collateral or of any Senior Lien in respect of any Collateral and notwithstanding any provision of the UCC, any
applicable law (including the Bankruptcy Code), any Loan Document, any alleged or actual defect or deficiency in any of the foregoing,
any failure to attach or (if required under any Loan Document) perfect any Lien created under any Loan Document or any other circumstance
whatsoever, the Junior Representative, on behalf of each Junior Secured Party, in respect of such Collateral hereby agrees that:

 

    	- 16 -

    	 

    

  

(a)          any
Senior Lien in respect of such Collateral, regardless of how or when acquired, whether by grant, possession, statute, operation
of law, subrogation or otherwise, shall be and shall remain senior and prior to any Junior Lien in respect of such Collateral (whether
or not such Senior Lien is subordinated to any Lien securing any other obligation); and

 

(b)          any
Junior Lien in respect of such Collateral, regardless of how or when acquired, whether by grant, possession, statute, operation
of law, subrogation or otherwise, shall be junior and subordinate in all respects to any Senior Lien in respect of such Collateral.

 

2.2           Prohibition
on Contesting Liens. In respect of any Collateral, the Junior Representative, on behalf of each Junior Secured Party, in respect
of such Collateral agrees that it shall not, and hereby waives any right to:

 

(a)          contest,
or support any other Person in contesting, in any proceeding (including any Insolvency Proceeding), the priority, validity or enforceability
of any Senior Lien on such Collateral; or

 

(b)          demand,
request, plead or otherwise assert or claim the benefit of any marshalling, appraisal, valuation or similar right which it may
have in respect of such Collateral or the Senior Liens on such Collateral, except to the extent that such rights are expressly
granted in this Agreement.

 

2.3           Nature
of Obligations. The Noteholder Agent on behalf of itself and the other Indenture Secured Parties acknowledges that a portion
of the ABL Obligations represents debt that is revolving in nature and that the amount thereof that may be outstanding at any time
or from time to time may be increased or reduced and subsequently re-borrowed, and that the terms of the ABL Obligations may be
modified, extended or amended from time to time, and that the aggregate amount of the ABL Obligations may be increased, replaced
or refinanced, subject to the limitations on Indebtedness contained in Section 4.08 of the Indenture, in each event, without notice
to or consent by the Indenture Secured Parties and without affecting the provisions hereof. The ABL Lender acknowledges that the
Indenture Obligations may be replaced or refinanced, and Additional Notes and/or Exchange Notes (as such terms are defined in the
Indenture) may be issued under the Indenture, without notice to or consent by the ABL Lender and without affecting the provisions
hereof. The Lien Priorities provided in Section 2.1 shall not be altered or otherwise affected by any such amendment, modification,
supplement, extension, repayment, re-borrowing, increase, replacement, renewal, restatement or refinancing of either the ABL Obligations
or the Indenture Obligations, or any portion thereof.

 

2.4           No
New Liens.

 

(a)          Until
the ABL Obligations Payment Date, no Indenture Secured Party shall acquire or hold any Lien on any assets of any Loan Party securing
any Indenture Obligation which assets are not also subject to the Lien of the ABL Lender under the ABL Documents, subject to the
Lien Priority set forth herein. If any Indenture Secured Party shall (nonetheless and in breach hereof) acquire or hold any Lien
on any assets of any Loan Party securing any Indenture Obligation which assets are not also subject to the Lien of the ABL Lender
under the ABL Documents, subject to the Lien Priority set forth herein, then the Noteholder Agent (or the relevant Indenture Secured
Party) shall, without the need for any further consent of any other Indenture Secured Party and notwithstanding anything to the
contrary in any other Indenture Document be deemed to also hold and have held such lien for the benefit of the ABL Lender as security
for the ABL Obligations (subject to the Lien Priority and other terms hereof) and shall promptly notify the ABL Lender in writing
of the existence of such Lien.

 

    	- 17 -

    	 

    

  

(b)          Until
the Indenture Obligations Payment Date, the ABL Lender shall not acquire or hold any Lien on any assets of any Loan Party securing
any ABL Obligation which assets are not also subject to the Lien of the Noteholder Agent under the Indenture Documents, subject
to the Lien Priority set forth herein; provided, however, the ABL Lender may hold Liens on ABL Lender Cash Collateral
notwithstanding Noteholder Agent’s lack of a Lien thereon. If the ABL Lender shall (nonetheless and in breach hereof) acquire
or hold any Lien on any assets of any Loan Party securing any ABL Obligation which assets are not also subject to the Lien of the
Noteholder Agent under the Indenture Documents, subject to the Lien Priority set forth herein, then the ABL Lender shall, notwithstanding
anything to the contrary in any other ABL Document be deemed to also hold and have held such lien for the benefit of the Noteholder
Agent as security for the Indenture Obligations (subject to the Lien Priority and other terms hereof) and shall promptly notify
the Noteholder Agent in writing of the existence of such Lien.

 

2.5           Separate
Grants of Security and Separate Classification. Each Secured Party acknowledges and agrees that (i) the grants of Liens pursuant
to the ABL Security Documents and the Indenture Security Documents constitute two separate and distinct grants of Liens and (ii)
because of, among other things, their differing rights in the Common Collateral, the Indenture Obligations are fundamentally different
from the ABL Obligations and should be separately classified in any plan of reorganization proposed or adopted in an Insolvency
Proceeding. To further effectuate the intent of the parties as provided in the immediately preceding sentence, if it is held that
the claims of the ABL Lender and the Indenture Secured Parties in respect of the Common Collateral constitute claims in the same
class (rather than separate classes of senior and junior secured claims), then the ABL Lender and the Indenture Secured Parties
hereby acknowledge and agree that all distributions shall be made as if there were separate classes of ABL Obligation claims and
Indenture Obligation claims against the Loan Parties (with the effect being that, to the extent that the aggregate value of the
ABL Priority Collateral or Notes Priority Collateral is sufficient (for this purpose ignoring all claims held by the other Secured
Parties), the ABL Lender or the Indenture Secured Parties, respectively, shall be entitled to receive, in addition to amounts distributed
to them in respect of principal, pre-petition interest and other claims, all amounts owing in respect of Post-Petition Interest
that is available from each pool of Priority Collateral for each of the ABL Lender and the Indenture Secured Parties, respectively,
before any distribution is made in respect of the claims held by the other Secured Parties, with the other Secured Parties hereby
acknowledging and agreeing to turn over to the respective other Secured Parties amounts otherwise received or receivable by them
to the extent necessary to effectuate the intent of this sentence, even if such turnover has the effect of reducing the aggregate
recoveries.

 

2.6           Agreements
Regarding Actions to Perfect Liens.

 

(a)          The
ABL Lender agrees that all mortgages, deeds of trust, deeds and similar instruments (collectively, “Mortgages”)
now or thereafter filed against any Real Estate Asset in favor of or for the benefit of the ABL Lender shall contain the following
notation: “The lien created by this mortgage on the property described herein is junior and subordinate to the lien on such
property created by any mortgage, deed of trust or similar instrument now or hereafter granted to U.S. BANK NATIONAL ASSOCIATION,
as Noteholder Agent, in accordance with the provisions of the Intercreditor Agreement dated as of November 6, 2014, as amended
from time to time.”

 

    	- 18 -

    	 

    

 

(b)          Each
of the ABL Lender and the Noteholder Agent hereby acknowledge that, to the extent that it holds, or a third party holds on its
behalf, physical possession of or “control” (as defined in the Uniform Commercial Code) over Common Collateral pursuant
to the ABL Security Documents or the Indenture Security Documents, as applicable, such possession or control is also for the benefit
of the Noteholder Agent and the other Indenture Secured Parties or the ABL Lender, as applicable, solely to the extent required
to perfect their security interest in such Common Collateral. Nothing in the preceding sentence shall be construed to impose any
duty on the ABL Lender or the Noteholder Agent (or any third party acting on either such Person's behalf) with respect to such
Common Collateral or provide the Noteholder Agent, any other Indenture Secured Party or the ABL Lender, as applicable, with any
rights with respect to such Common Collateral beyond those specified in this Agreement, the ABL Security Documents and the Indenture
Security Documents, as applicable, provided that subsequent to the occurrence of the ABL Obligations Payment Date (so long
as the Indenture Obligations Payment Date shall not have occurred), the ABL Lender shall (i) deliver to the Noteholder Agent, at
the Loan Parties’ sole cost and expense, the Common Collateral in its possession or control together with any necessary endorsements
to the extent required by the Indenture Documents or (ii) direct and deliver such Common Collateral as a court of competent jurisdiction
otherwise directs; and provided, further, that subsequent to the occurrence of the Indenture Obligations Payment
Date (so long as the ABL Obligations Payment Date shall not have occurred), the Noteholder Agent shall (i) deliver to the ABL Lender,
at the Loan Parties’ sole cost and expense, the Common Collateral in its possession or control together with any necessary
endorsements to the extent required by the ABL Documents or (ii) direct and deliver such Common Collateral as a court of competent
jurisdiction otherwise directs. The provisions of this Agreement are intended solely to govern the respective Lien priorities as
between the ABL Lender and the Indenture Secured Parties and shall not impose on the ABL Lender or the Indenture Secured Parties
any obligations in respect of the disposition of any Common Collateral (or any proceeds thereof) that would conflict with prior
perfected Liens or any claims thereon in favor of any other Person that is not a Secured Party.

 

2.7           Impairments.
It is the intention of the parties hereto that the Secured Parties of each Class (and not the Secured Parties of the other Class)
bear the risk of (a) any determination by a court of competent jurisdiction that (i) any Secured Obligations of such Class are
unenforceable under applicable law or are subordinated to any other obligations (other than to any Secured Obligations of the other
Class), (ii) any Secured Obligations of such Class do not have a valid and perfected Lien on any of the Collateral securing any
Secured Obligations of the other Class or (iii) any Person (other than any Representative or any Secured Party) has a Lien on any
Common Collateral that is senior in priority to the Lien on such Common Collateral securing any Secured Obligations of such Class,
but junior to the Lien on such Common Collateral securing any Secured Obligations of the other Class (any such Lien being referred
to as an “Intervening Lien”, and any such Person being referred to as an “Intervening Creditor”)
and (b) the existence of any Collateral securing Secured Obligations of the other Class that does not constitute Common Collateral
with respect to any Secured Obligations of such Class (any condition referred to in clause (a) or (b) with respect
to the Secured Obligations of such Class being referred to as an “Impairment” of such Class); provided
that the existence of any limitation on the maximum claim that may be made against any real property subject to a mortgage that
applies to Secured Obligations of both Classes shall not be deemed to be an Impairment of Obligations of either Class. In the event
an Impairment exists with respect to the Secured Obligations of a Class, the results of such Impairment shall be borne solely by
the Secured Parties of such Class, and the rights of the Secured Parties of such Class (including the right to receive distributions
in respect of the Secured Obligations of such Class pursuant to the Loan Documents of such Class and in accordance herewith) set
forth herein shall be modified to the extent necessary so that the results of such Impairment are borne solely by the Secured Parties
of such Class. In furtherance of the foregoing, in the event the Secured Obligations of a Class shall be subject to an Impairment
in the form of an Intervening Lien of any Intervening Creditor, the value of any Common Collateral or Proceeds that are allocated
to such Intervening Creditor shall be deducted solely from the Common Collateral or Proceeds to be distributed in respect of the
Secured Obligations of such Class. In addition, in the event the Secured Obligations of a Class are modified pursuant to applicable
law (including pursuant to Section 1129 of the Bankruptcy Code or any equivalent provision of, or order granted pursuant to, any
other bankruptcy law), any reference to the Secured Obligations of such Class or the Loan Documents of such Class shall refer to
such obligations or such documents as so modified.

 

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SECTION 3. Enforcement Rights.

 

3.1           Exclusive
Enforcement. Until the Senior Obligations Payment Date has occurred, whether or not an Insolvency Proceeding has been commenced
by or against any Loan Party, the Senior Secured Parties shall have the exclusive right to take and continue any Enforcement Action
(including the right to credit bid their debt) with respect to the Senior Collateral, without any consultation with or consent
of any Junior Secured Party; provided, however, the Senior Secured Party shall use its best efforts to provide the Junior Secured
Party with copies of any written notice of (i) acceleration, (ii) payment default, or (iii) an Enforcement Action, within five
(5) business days of providing such notice to any Loan Party.

 

3.2           Junior
Representative Standstill and Waivers. Each Junior Representative, on behalf of itself and the other Junior Secured Parties,
agrees that, until the Senior Obligations Payment Date has occurred, or upon the Senior Secured Parties’ advance written
consent, but subject to the proviso set forth in Section 5.1:

 

(a) they will not take
or cause to be taken any action, the purpose or effect of which is to make any Lien on any Senior Collateral that secures any Junior
Obligation pari passu with or senior to, or to give any Junior Secured Party any preference or priority relative to, the Liens
on the Senior Collateral securing the Senior Obligations;

 

(b) they will not contest,
oppose, object to, interfere with, hinder or delay, in any manner, whether by judicial proceedings (including the filing of an
Insolvency Proceeding) or otherwise, any foreclosure, sale, lease, exchange, transfer or other disposition of the Senior Collateral
by any Senior Secured Party or any other Enforcement Action taken (or any forbearance from taking any Enforcement Action) in respect
of the Senior Collateral by or on behalf of any Senior Secured Party;

 

(c) they have no right
to (i) direct either the Senior Representative or any other Senior Secured Party to exercise any right, remedy or power with respect
to the Senior Collateral or pursuant to the Senior Security Documents in respect of the Senior Collateral, or (ii) consent or object
to the exercise by the Senior Representative or any other Senior Secured Party of any right, remedy or power with respect to the
Senior Collateral or pursuant to the Senior Security Documents with respect to the Senior Collateral or to the timing or manner
in which any such right is exercised or not exercised (or, to the extent they may have any such right described in this clause
(c), whether as a junior lien creditor in respect of the Senior Collateral or otherwise, they hereby irrevocably waive such right);

 

(d) they will not institute
any suit or other proceeding or assert in any suit, Insolvency Proceeding or other proceeding any claim against any Senior Secured
Party seeking damages from or other relief by way of specific performance, instructions or otherwise, with respect to, and no Senior
Secured Party shall be liable for, any action taken or omitted to be taken by any Senior Secured Party with respect to the Senior
Collateral or pursuant to the Senior Documents in respect of the Senior Collateral;

 

(e) they will not commence
judicial or non-judicial foreclosure proceedings with respect to, seek to have a trustee, receiver, liquidator or similar official
appointed for or over, attempt any action to take possession of, exercise any right, remedy or power with respect to, or otherwise
take any action to enforce their interest in or realize upon, the Senior Collateral; and

 

(f) they will not seek,
and hereby waive any right, to have the Senior Collateral or any part thereof marshaled upon any foreclosure or other disposition
of the Senior Collateral.

 

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3.3           Judgment
Creditors. In the event that any Indenture Secured Party becomes a judgment lien creditor in respect of any Common Collateral
as a result of its enforcement of its rights as an unsecured creditor, such judgment lien shall be subject to the terms of this
Agreement for all purposes (including in relation to the ABL Liens and the ABL Obligations) to the same extent as all other Liens
in favor of such Indenture Secured Party with respect to such Common Collateral are subject to the terms of this Agreement. In
the event that the ABL Lender becomes a judgment lien creditor in respect of Common Collateral as a result of its enforcement of
its rights as an unsecured creditor, such judgment lien shall be subject to the terms of this Agreement for all purposes (including
in relation to the Indenture Liens and the Indenture Obligations) to the same extent as all other Liens in favor of the ABL Lender
in respect of such Common Collateral are subject to the terms of this Agreement.

 

3.4           Cooperation;
Sharing of Information and Access.

 

(a)          The
Noteholder Agent, on behalf of itself and the other Indenture Secured Parties, agrees that each of them shall take such actions
as the ABL Lender shall reasonably request in connection with the exercise by the ABL Lender of its rights set forth herein in
respect of the ABL Priority Collateral. The ABL Lender agrees that it shall take such actions as the Noteholder Agent shall reasonably
request in connection with the exercise by the Indenture Secured Parties of their rights set forth herein in respect of the Notes
Priority Collateral.

 

(b)          In
the event that the ABL Lender shall, in the exercise of its rights under the ABL Security Documents or otherwise, receive possession
or control of any books and Records of any Loan Party which contain information identifying or pertaining to the Notes Priority
Collateral, the ABL Lender shall promptly notify the Noteholder Agent of such fact and, upon request from the Noteholder Agent
and as promptly as practicable thereafter, either make available to the Noteholder Agent such books and Records for inspection
and duplication or provide to the Noteholder Agent copies thereof. In the event that the Noteholder Agent shall, in the exercise
of its rights under the Indenture Security Documents or otherwise, receive possession or control of any books and records of any
Loan Party which contain information identifying or pertaining to any of the ABL Priority Collateral, the Noteholder Agent shall
promptly notify the ABL Lender of such fact and, upon request from the ABL Lender and as promptly as practicable thereafter, either
make available to the ABL Lender such books and records for inspection and duplication or provide the ABL Lender copies thereof.

 

(c)          If
the Noteholder Agent, or any agent or representative of the Noteholder Agent, or any receiver, shall, after the commencement of
any Enforcement Action, obtain possession or physical control of any Mortgaged Real Estate Asset, the Noteholder Agent shall promptly
notify the ABL Lender in writing of that fact, and the ABL Lender shall, within 10 Business Days thereafter, notify the Noteholder
Agent in writing as to whether the ABL Lender desires to exercise access rights under this Agreement. Upon delivery of such notice
by the ABL Lender to the Noteholder Agent, the parties shall confer in good faith to coordinate with respect to the ABL Lender’s
exercise of such access rights, with such access rights to apply to any parcel or item of a Mortgaged Real Estate Asset, access
to which is reasonably necessary to enable the ABL Lender during normal business hours to realize upon the ABL Priority Collateral.
Access rights will apply to differing Mortgaged Real Estate Assets at differing times, in which case, a differing Access Period
will apply to each such Mortgaged Real Estate Asset of which the Noteholder Agent has possession or physical control. During any
pertinent Access Period, the ABL Lender and its agents, representatives and designees shall have an irrevocable, non-exclusive
right to have access to, and a rent-free right to use, the relevant parcel or item of a Mortgaged Real Estate Asset for the purposes
described above. The ABL Lender and the Noteholder Agent shall cooperate and use reasonable efforts to ensure that their activities
during the Access Period as described above do not interfere materially with the activities of the other. Consistent with the definition
of the term “Access Period”, if any order or injunction is issued or stay is granted or is otherwise effective by operation
of law that prohibits the ABL Lender from exercising any of its rights hereunder, then the Access Period granted to the ABL Lender
under this Section 3.4 shall be stayed during the period of such prohibition and shall continue thereafter for the number
of days remaining as required under this Section 3.4.

 

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3.5           No
Additional Rights For the Loan Parties Hereunder. Except as provided in Section 3.6, if the ABL Lender or any Indenture
Secured Party shall enforce its rights or remedies in violation of the terms of this Agreement, no Loan Party shall be entitled
to use such violation as a defense to any action by the ABL Lender or any Indenture Secured Party, nor to assert such violation
as a counterclaim or basis for set off or recoupment against the ABL Lender or any Indenture Secured Party.

 

3.6           Actions
Upon Breach.

 

(a)          If
the ABL Lender or any Indenture Secured Party, contrary to this Agreement, commences or participates in any action or proceeding
against any Loan Party or the Common Collateral, such Loan Party, with the prior written consent of the ABL Lender or the Noteholder
Agent, as applicable, may interpose as a defense or dilatory plea the making of this Agreement, and the ABL Lender or any Indenture
Secured Party, as applicable, may intervene and interpose such defense or plea in its or their name or in the name of such Loan
Party.

 

(b)          Should
the ABL Lender or any Indenture Secured Party, contrary to this Agreement, in any way take, attempt to or threaten to take any
action with respect to the Common Collateral (including any attempt to realize upon or enforce any remedy with respect to this
Agreement), or fail to take any action required by this Agreement, the ABL Lender or any Indenture Secured Party (in its own name
or in the name of the relevant Loan Party), as applicable, or the relevant Loan Party, may obtain relief against the ABL Lender
or such Indenture Secured Party, as applicable, by injunction, specific performance and/or other appropriate equitable relief,
it being understood and agreed by each of the ABL Lender and the Noteholder Agent on behalf of each Indenture Secured Party that
(i) the ABL Lender’s or Indenture Secured Parties’, as applicable, damages from its actions may at that time be difficult
to ascertain and may be irreparable, and (ii) each Indenture Secured Party or the ABL Lender, as applicable, waives any defense
that the Loan Parties and/or the Indenture Secured Parties and/or the ABL Lender, as applicable, cannot demonstrate damage and/or
be made whole by the awarding of damages.

 

3.7           Rights
as Unsecured Creditors. The Secured Parties may, in accordance with the terms of the Loan Documents and applicable law, enforce
rights and exercise remedies against the Loan Parties as unsecured creditors; provided that no such action is otherwise expressly
or impliedly inconsistent with the terms of this Agreement.

 

3.8           Other
Rights. For the avoidance of doubt, the Secured Parties shall be entitled to (a) take any action (not adverse to the priority status
of the Liens on the Collateral, or the rights of the other Secured Parties or any of the holders of ABL Obligations or Notes Obligations
to exercise remedies in respect thereof) in order to create, prove, perfect, preserve or protect (but not enforce) its Lien on
and rights in, and the perfection and priority of its Lien on, any of the Collateral, (b) file any pleadings, objections, motions
or agreements which assert rights or interests available to unsecured creditors of the Loan Parties arising under either any Insolvency
Proceeding or applicable non-bankruptcy law, in each case not inconsistent with the terms of this Agreement or applicable law and,
subject to the restrictions set forth herein, any pleadings, objections, motions or agreements which assert rights or interests
available to secured creditors solely with respect to the Collateral, and (c) vote on any plan of reorganization, file any proof
of claim, make other filings and make any arguments and motions that are, in each case, in accordance with the terms of this Agreement,
with respect to their respective Senior Obligations and the Collateral.

 

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SECTION 4. Application
of Proceeds of Senior Collateral; Dispositions and Releases of Lien; Notices and Insurance.

 

4.1           Application
of Proceeds. 

 

(a)          Application
of Proceeds of Senior Collateral. The Senior Representative and Junior Representative hereby agree that all Senior Collateral,
and all Proceeds thereof, received by either of them in connection with the collection, sale or disposition of Senior Collateral
shall be applied, first, to the payment of costs and expenses (including reasonable attorneys’ fees and expenses and
court costs) of the Senior Representative in connection with such Enforcement Action, second, to the payment of the Senior
Obligations in accordance with the Senior Documents until the Senior Obligations Payment Date, third, to the payment of
the Junior Obligations in accordance with the terms thereof, fourth, to the payment in full in cash of the Excess ABL Obligations
in accordance with the ABL Documents, and fifth, the balance, if any, to the Loan Parties or to whosoever may be lawfully
entitled to receive the same or as a court of competent jurisdiction may direct.

 

(b)          Limited
Obligation or Liability. In exercising remedies, whether as a secured creditor or otherwise, the Senior Representative shall
have no obligation or liability to the Junior Representative or to any Junior Secured Party, regarding the adequacy of any Proceeds
or for any action or omission, save and except solely for an action or omission that breaches the express obligations undertaken
by each party under the terms of this Agreement.

 

(c)          Segregation
of Collateral. Until the occurrence of the Senior Obligations Payment Date, any Senior Collateral that may be received by any
Junior Secured Party in violation of this Agreement shall be segregated and held in trust and promptly paid over to the Senior
Representative, for the benefit of the Senior Secured Parties, in the same form as received, with any necessary endorsements, and
each Junior Secured Party hereby authorizes the Senior Representative to make any such endorsements as agent for the Junior Representative
(which authorization, being coupled with an interest, is irrevocable).

 

4.2           Releases
of Liens. Upon any release, sale or disposition of Senior Collateral permitted (or consented to) pursuant to the terms of the
Senior Documents and this Agreement that results in the release of the Senior Lien on any Senior Collateral (including any sale
or other disposition pursuant to any Enforcement Action) (other than release of the Senior Lien due to the occurrence of the Senior
Obligations Payment Date), the Junior Lien on such Senior Collateral (excluding any portion of the proceeds of such Senior Collateral
remaining after the Senior Obligations Payment Date occurs) shall be automatically and unconditionally released with no further
consent or action of any Person. The Junior Representative shall promptly execute and deliver such release documents and instruments
and shall take such further actions as the Senior Representative shall request to evidence any release of the Junior Lien described
in this Section 4.2. The Junior Representative hereby appoints the Senior Representative and any officer or duly authorized
person of the Senior Representative, with full power of substitution, as its true and lawful attorney-in-fact with full irrevocable
power of attorney in the place and stead of the Junior Representative and in the name of the Junior Representative or in the Senior
Representative’s own name, from time to time, in the Senior Representative’s sole discretion, for the purposes of carrying
out the terms of this Section 4.2, to take any and all appropriate action and to execute and deliver any and all documents
and instruments as may be necessary or desirable to accomplish the purposes of this Section 4.2, including any financing
statements, endorsements, assignments, releases or other documents or instruments of transfer (which appointment, being coupled
with an interest, is irrevocable).

 

4.3           [Reserved]

 

4.4           Insurance.

 

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(a)          Until
the ABL Obligations Payment Date and subject to the terms of, and the rights of the Loan Parties under, the ABL Documents, the
ABL Lender shall have the sole and exclusive right to adjust settlement for any insurance policy covering the ABL Priority Collateral
in the event of any loss or claim thereunder, the sole and exclusive right to adjust settlement of any business interruption insurance,
and to approve any award granted in any condemnation or similar proceeding (or any deed in lieu of condemnation) affecting the
ABL Priority Collateral. Until the ABL Obligations Payment Date, (i) all Proceeds of any such policies and any such award (or any
payments with respect to a deed in lieu of condemnation) if in respect of the ABL Priority Collateral and to the extent required
by the ABL Documents shall be paid to the ABL Lender pursuant to the terms of the ABL Documents (including, without limitation,
for purposes of cash collateralization of Letters of Credit) and thereafter, following the ABL Obligations Payment Date, and subject
to the rights of the Loan Parties under the Indenture Security Documents, in full to the Noteholder Agent for the benefit of the
Noteholders until the Indenture Obligations Payment Date, and then to the owner of the subject property, such other Person as may
be entitled thereto, or as a court of competent jurisdiction may otherwise direct, and (ii) if Noteholder Agent or any Noteholder
shall, at any time, receive any Proceeds of any such insurance policy or any such award or payment with respect to ABL Priority
Collateral in contravention of this Agreement, it shall segregate and hold in trust and forthwith pay such Proceeds over to the
ABL Lender in accordance with the terms of Section 4.1.

 

(b)          Until
the Indenture Obligations Payment Date, subject to the terms of, and the rights of the Loan Parties under, the Indenture Documents,
the Noteholder Agent, on behalf of the Noteholders, shall have the sole and exclusive right to adjust settlement for any insurance
policy covering the Notes Priority Collateral in the event of any loss thereunder and to approve any award granted in any condemnation
or similar proceeding (or any deed in lieu of condemnation) affecting such Notes Priority Collateral. Until the Indenture Obligations
Payment Date, (i) all Proceeds of any such policy and any such award (or any payments with respect to a deed in lieu of condemnation)
if in respect of the Notes Priority Collateral and to the extent required by the Indenture Documents shall be paid to the Noteholder
Agent for the benefit of the Noteholders pursuant to the terms of the Indenture Documents and thereafter, following the Indenture
Obligations Payment Date, and subject to the rights of the Loan Parties under the ABL Security Documents, in full to the ABL Lender
to the extent required under the ABL Security Documents, until the ABL Obligations Payment Date and then, to the owner of the subject
property, such other Person as may be entitled thereto, or as a court of competent jurisdiction may otherwise direct, and (ii)
if the ABL Lender shall, at any time, receive any Proceeds of any such insurance policy or any such award or payment with respect
to Notes Priority Collateral in contravention of this Agreement, it shall segregate and hold in trust and forthwith pay such Proceeds
over to the Noteholder Agent in accordance with the terms of Section 4.1.

 

(c)          To
effectuate the foregoing, and to the extent that the pertinent insurance company agrees to issue such endorsements, the Secured
Parties shall each receive separate lender’s loss payable endorsements naming themselves as loss payee and additional insured,
as their interests may appear, with respect to policies which insure Collateral hereunder.

 

SECTION 5. Insolvency Proceedings.

 

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5.1           Filing
of Motions. Until the Senior Obligations Payment Date has occurred, the Junior Representative agrees on behalf of itself and
the other Junior Secured Parties that no Junior Secured Party shall, in or in connection with any Insolvency Proceeding, file any
pleadings or motions, take any position at any hearing or proceeding of any nature, or otherwise take any action whatsoever, in
each case in respect of any of the Senior Collateral, including with respect to the determination of any Liens or claims held by
the Senior Representative (including the validity and enforceability thereof) or any other Senior Secured Party in respect of any
Senior Collateral or the value of any claims of such parties under Section 506(a) of the Bankruptcy Code or otherwise; provided
that the Junior Representative may (i) file a proof of claim or statement of interest in an Insolvency Proceeding, and (ii) file
any necessary responsive or defensive pleadings in opposition of any motion, claim, adversary proceeding or other pleadings made
by any Person objecting to or otherwise seeking the disallowance of any Person objecting to or otherwise seeking the disallowance
of the claims of the Junior Secured Parties on the Senior Collateral, including any claims secured by the Notes Priority Collateral
or the ABL Priority Collateral, subject to the limitations contained in this Agreement and only if consistent with the terms and
the limitations on the Junior Representative imposed hereby.

 

5.2           Financing
Matters. 

 

(a)          If
any Loan Party becomes subject to any Insolvency Proceeding in the United States at any time prior to the ABL Obligations Payment
Date, and if the ABL Lender desires to consent (or not object) to the use of cash collateral under the Bankruptcy Code (or similar
bankruptcy law) that represents proceeds of ABL Priority Collateral or to provide financing to any Loan Party under the Bankruptcy
Code (or similar bankruptcy law) or to consent (or not object) to the provision of such financing to any Loan Party secured by
a Lien on any ABL Priority Collateral (any such financing, “ABL DIP Financing”), then, so long as (1) the maximum
principal amount of Indebtedness that may be outstanding from time to time in connection with such ABL DIP Financing, together
with the principal amount of ABL Obligations outstanding at such time (after giving effect to the application of the proceeds of
any ABL DIP Financing to refinance all or any portion of the ABL Obligations) may not exceed the principal amount of $35,000,000,
(2) subject to clause (A) of this subparagraph (a), the Noteholder Agent retains a Lien on all ABL Priority Collateral with the
same priority as existed prior to the commencement of the Insolvency Proceeding, (3) to the extent that the ABL Lender is granted
adequate protection in the form of a Lien on Collateral, the Noteholder Agent is permitted to seek a Lien on such additional Collateral
as existed prior to the commencement of the Insolvency Proceeding, (4) the terms of such ABL DIP Financing do not require Holdings
or any other Loan Party to seek approval for any plan of reorganization that is inconsistent with this Agreement, and (5) the terms
of such ABL DIP Financing do not require any Indenture Secured Parties to advance additional funds pursuant to such ABL DIP Financing,
the Noteholder Agent agrees, on behalf of itself and the other Indenture Secured Parties, that each Indenture Secured Party (A)
will be deemed to have consented to, will raise no objection to, nor support any other Person objecting to, the use of such cash
collateral or to such ABL DIP Financing on the grounds of a failure to provide “adequate protection” for the Noteholder
Agent’s Lien on the Notes Collateral to secure the Indenture Obligations or on any other grounds and (B) if requested by
the ABL Lender, will subordinate (and will be deemed hereunder to have subordinated) the Indenture Liens on any ABL Priority Collateral
(i) to such ABL DIP Financing on the same terms as the ABL Liens are subordinated thereto (and such subordination will not alter
in any manner the terms of this Agreement), (ii) to any adequate protection provided to the ABL Lender and (iii) to any “carve-out”
agreed to by the ABL Lender, so long as (x) the Noteholder Agent retains its Lien on the Notes Collateral to secure the Indenture
Obligations (in each case, including Proceeds thereof arising after the commencement of the case under the Bankruptcy Code) and,
as to the Notes Priority Collateral only, such Lien has the same priority as existed prior to the commencement of the case under
the Bankruptcy Code and any Lien securing such ABL DIP Financing is junior and subordinate to the Lien of the Noteholder Agent
on the Notes Priority Collateral, (y) all Liens on ABL Priority Collateral securing any such ABL DIP Financing shall be senior
to or on a parity with the Liens of the ABL Lender securing the ABL Obligations on ABL Priority Collateral and (z) if the ABL Lender
receives a replacement or adequate protection Lien on post-petition assets of the debtor to secure the ABL Obligations, and such
replacement or adequate protection Lien is on any of the Notes Priority Collateral, (1) such replacement or adequate protection
Lien on such post-petition assets which are part of the Notes Priority Collateral (the “Note Post-Petition Assets”)
is junior and subordinate to the Lien in favor of the Noteholder Agent on the Notes Priority Collateral and (2) the ABL Lender
shall request in its ABL DIP Financing motion that the Noteholder Agent also receive a replacement or adequate protection Lien
on such Note Post-Petition Assets of the debtor to secure the Indenture Obligations. In no event will the ABL Lender seek to obtain
a priming Lien on any of the Notes Priority Collateral and nothing contained herein shall be deemed to be a consent by Indenture
Secured Parties to any adequate protection payments using Notes Priority Collateral.

 

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(b)          If
any Loan Party becomes subject to any Insolvency Proceeding in the United States at any time prior to the Indenture Obligations
Payment Date, and if the Noteholder Agent or the other Indenture Secured Parties desire to consent (or not object) to the use of
cash collateral under the Bankruptcy Code (or similar bankruptcy law) that represents proceeds of Notes Collateral or to provide
financing to any Loan Party under the Bankruptcy Code (or similar bankruptcy law) or to consent (or not object) to the provision
of such financing to any Loan Party secured by a Lien on any Notes Priority Collateral (any such financing, “Notes DIP
Financing”), then so long as (1) subject to clause (A) of this subparagraph (b), the ABL Lender retains a Lien on all
Notes Priority Collateral with the same priority as existed prior to the commencement of the Insolvency Proceeding, (2) to the
extent that the Noteholder Agent is granted adequate protection in the form of a Lien on Collateral, the ABL Lender is permitted
to seek a Lien on such additional Collateral as existed prior to the commencement of the Insolvency Proceeding, (3) the terms of
such Notes DIP Financing do not require Holdings or any other Loan Party to seek approval for any plan of reorganization that is
inconsistent with this Agreement, and (4) the terms of such Notes DIP Financing do not require the ABL Lender to advance additional
funds pursuant to such Notes DIP Financing, the ABL Lender agrees that the ABL Lender (A) will be deemed to have consented to,
will raise no objection to, nor support any other Person objecting to such Notes DIP Financing on the grounds of a failure to provide
“adequate protection” for the ABL Lender’s Lien on the ABL Collateral to secure the ABL Obligations or on any
other grounds. and (B) if requested by the Noteholder Agent, will subordinate (and will be deemed hereunder to have subordinated)
the ABL Liens on any Notes Priority Collateral (i) to such Notes DIP Financing on the same terms as the Indenture Liens are subordinated
thereto (and such subordination will not alter in any manner the terms of this Agreement), (ii) to any adequate protection provided
to the Indenture Secured Parties and (iii) to any “carve-out” agreed to by the Noteholder Agent or the other Indenture
Secured Parties, so long as (x) the ABL Lender retains its Lien on the ABL Collateral to secure the ABL Obligations (in each case,
including Proceeds thereof arising after the commencement of the case under the Bankruptcy Code) and, as to the ABL Priority Collateral
only, such Lien has the same priority as existed prior to the commencement of the case under the Bankruptcy Code and any Lien securing
such Notes DIP Financing is junior and subordinate to the Lien of the ABL Lender on the ABL Priority Collateral, (y) all Liens
on Notes Priority Collateral securing any such Notes DIP Financing shall be senior to or on a parity with the Liens of the Noteholder
Agent and the Noteholders securing the Indenture Obligations on Notes Priority Collateral and (z) if the Noteholder Agent receives
a replacement or adequate protection Lien on post-petition assets of the debtor to secure the Indenture Obligations, and such replacement
or adequate protection Lien is on any of the ABL Priority Collateral, (1) such replacement or adequate protection Lien on such
post-petition assets which are part of the ABL Priority Collateral (the “ABL Post-Petition Assets”) is junior
and subordinate to the Lien in favor of the ABL Lender on the ABL Priority Collateral and (2) the Noteholder Agent shall request
in its Notes DIP Financing motion that the ABL Lender also receive a replacement or adequate protection Lien on such ABL Post-Petition
Assets of the debtor to secure the ABL Obligations. In no event will any of the Indenture Secured Parties seek to obtain a priming
Lien on any of the ABL Priority Collateral, and nothing contained herein shall be deemed to be a consent by the ABL Lender to any
adequate protection payments using ABL Priority Collateral.

 

(c)          All
Liens granted to the Noteholder Agent or the ABL Lender in any Insolvency Proceeding, whether as adequate protection or otherwise,
are intended to be and shall be deemed to be subject to the Lien Priority and the other terms and conditions of this Agreement.

 

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5.3           Relief
From the Automatic Stay. Until the ABL Obligations Payment Date, the Noteholder Agent agrees, on behalf of itself and the other
Indenture Secured Parties, that none of them will seek relief from the automatic stay or from any other stay in any Insolvency
Proceeding or take any action in derogation thereof, in each case in respect of any ABL Priority Collateral, without the prior
written consent of the ABL Lender, unless the ABL Lender already has filed a pending motion for such relief with respect to its
interest in the ABL Priority Collateral and a corresponding motion must be filed solely for the purpose of preserving the Noteholder
Agent’s ability to receive residual distributions. Until the Indenture Obligations Payment Date, the ABL Lender agrees that
it will not seek relief from the automatic stay or from any other stay in any Insolvency Proceeding or take any action in derogation
thereof, in each case in respect of any Notes Priority Collateral, without the prior written consent of the Noteholder Agent, unless
the Noteholder Agent already has filed a pending motion for such relief with respect to its interest in the Notes Priority Collateral
and a corresponding motion must be filed solely for the purpose of preserving the ABL Lender’s ability to receive residual
distributions.

 

5.4           No
Contest. The Junior Representative, on behalf of itself and the Junior Secured Parties, agrees that, prior to the Senior Obligations
Payment Date, none of them shall contest (or support any other Person contesting) (a) any request by the Senior Representative
or any Senior Secured Party for adequate protection of its interest in the Senior Collateral (unless in contravention of Section
5.2(a) or (b), as applicable) any request for relief from the automatic stay with respect to the Senior Collateral,
or (b) any objection by the Senior Representative or any Senior Secured Party to any motion, relief, action, or proceeding based
on a claim by the Senior Representative or any Senior Secured Party that its interests in the Senior Collateral (unless in contravention
of Section 5.2(a) or (b), as applicable) are not adequately protected (or any other similar request under any law
applicable to an Insolvency Proceeding), so long as any Liens granted to the Senior Representative as adequate protection of its
interests are subject to this Agreement.

 

5.5           Avoidance
Issues. If any Senior Secured Party is required in any Insolvency Proceeding or otherwise to disgorge, turn over or otherwise
pay to the estate of any Loan Party, because such amount was avoided or ordered to be paid or disgorged for any reason, including
because it was found to be a fraudulent or preferential transfer, any amount (a “Recovery”), whether received
as proceeds of security, enforcement of any right of set-off or otherwise, then the Senior Obligations shall be reinstated to the
extent of such Recovery and deemed to be outstanding as if such payment had not occurred and the Senior Obligations Payment Date
shall be deemed not to have occurred. If this Agreement shall have been terminated prior to such Recovery, this Agreement shall
be reinstated in full force and effect, and such prior termination shall not diminish, release, discharge, impair or otherwise
affect the obligations of the parties hereto. The Junior Secured Parties agree that none of them shall be entitled to benefit from
any avoidance action affecting or otherwise relating to any distribution or allocation made in accordance with this Agreement,
whether by preference or otherwise, it being understood and agreed that the benefit of such avoidance action otherwise allocable
to them shall instead be allocated and turned over for application in accordance with the priorities set forth in this Agreement.

 

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5.6           Asset
Dispositions in an Insolvency Proceeding. Neither the Junior Representative nor any other Junior Secured Party shall, in an
Insolvency Proceeding or otherwise, oppose any sale or disposition of any Senior Collateral that is supported by the Senior Secured
Parties, and the Junior Representative and each other Junior Secured Party will be deemed to have consented under Section 363 of
the Bankruptcy Code (and otherwise) to any sale of any Senior Collateral supported by the Senior Secured Parties, free and clear
of the Junior Liens so long (a) the requisite Senior Secured Parties have consented to such sale or other disposition of such assets,
(b) such motion does not impair, subject to the priorities set forth in this Agreement, the rights of the Junior Secured Parties
under Section 363(k) of the Bankruptcy Code (so long as the right of the Junior Secured Parties to offset their claim against the
purchase price is only after the Senior Obligations (other than, with respect to the ABL Obligations, the Excess ABL Obligations)
have been paid in full in cash), (c) either (i) pursuant to court order, the Junior Liens attach to the net proceeds of the sale
or other disposition with the same priority and validity as the Junior Liens on such Senior Collateral, and the Liens remain subject
to the terms of this Agreement, or (ii) the proceeds of the sale or other disposition are applied in accordance with Section
4.1(a), (d) such sale or disposition is not in contravention of the terms of this Agreement and (e) the net cash proceeds of
the sale or other disposition that are applied to Senior Obligations permanently reduce the Senior Obligations (and, in respect
of the ABL Obligations, the ABL Obligations Cap shall be reduced by an amount equal to such net cash proceeds) to the extent provided
in Section 4.1(a). The foregoing to the contrary notwithstanding, the Junior Secured Parties may raise any objections to
any sale or disposition of the Senior Collateral that could be raised by a creditor of the Loan Parties whose claims are not secured
by Liens on the Senior Collateral, provided such objections are not inconsistent with any other term or provision of this Agreement
and are not based on their status as secured creditors (without limiting the foregoing, the Junior Secured Parties may not raise
any objections based on rights afforded by Sections 363(e) and (f) of the Bankruptcy Code to secured creditors (or any comparable
provision of any other Bankruptcy Law) with respect to the Liens granted to the Junior Secured Parties in respect of the Senior
Collateral).

 

5.7           Other
Matters. To the extent that the Senior Representative or any Senior Secured Party has or acquires rights under Section 363
or Section 364 of the Bankruptcy Code with respect to any of the Junior Collateral, the Senior Representative agrees, on behalf
of itself and the other Senior Secured Parties, not to assert any of such rights without the prior written consent of the Junior
Representative; provided that if requested by the Junior Representative, the Senior Representative shall timely exercise
such rights in the manner requested by the Junior Representative, including any rights to payments in respect of such rights.

 

5.8           Effectiveness
in Insolvency Proceedings. This Agreement, which the parties hereto expressly acknowledge is a “subordination agreement”
under Section 510(a) of the Bankruptcy Code, including, without limitation, the Lien priorities set forth in Section 2,
shall be effective before, during and after the commencement of an Insolvency Proceeding.

 

5.9           Certain
Waivers. Each of the ABL Lender and the Noteholder Agent, for itself and on behalf of the Indenture Secured Parties, waives
any claim it may hereafter have against any other Secured Party arising out of (a) the election by such Secured Party of the application
of Section 1111(b)(2) of the Bankruptcy Code, or any comparable provision of any other applicable law, or (b) any use of cash collateral
or financing arrangement, or any grant of a security interest in the Collateral or otherwise in any Insolvency Proceeding, in each
case, to the extent consistent with the terms of this Agreement.

 

SECTION 6. Indenture Documents and
ABL Documents.

 

6.1           Amendments
of Indenture Documents. Each Loan Party and the Noteholder Agent, on behalf of itself and the Indenture Secured Parties, agrees
that it shall not at any time execute or deliver any amendment or other modification to any of the Indenture Documents inconsistent
with or in violation of this Agreement.

 

6.2           Amendments
of ABL Documents. Each Loan Party and the ABL Lender agrees that it shall not at any time execute or deliver any amendment
or other modification to any of the ABL Documents inconsistent with or in violation of this Agreement.

 

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6.3           Comparable
Amendments. In the event the Senior Representative enters into any amendment, waiver or consent in respect of any of the Senior
Security Documents for the purpose of adding to, or deleting from, or waiving or consenting to any departures from any provisions
of, any Senior Security Document or changing in any manner the rights of any parties thereunder, in each case solely with respect
to any Senior Collateral, then such amendment, waiver or consent shall apply automatically to any comparable provision of the Comparable
Security Document without the consent of or action by any Junior Secured Party (with all such amendments, waivers and modifications
subject to the terms hereof); provided that, (i) no such amendment, waiver or consent shall have the effect of removing
assets subject to the Lien of any Junior Security Document, except to the extent that a release of such Lien is permitted by Section
4.2, (ii) any such amendment, waiver or consent that materially and adversely affects the rights of the Junior Secured Parties
and does not affect the Senior Secured Parties in a like or similar manner shall not apply to the Junior Security Documents without
the consent of the Junior Representative, (iii) no such amendment, waiver or consent with respect to any provision applicable to
the Junior Representative under the Junior Loan Documents shall be made without the prior written consent of the Junior Representative
and (iv) notice of such amendment, waiver or consent shall be given to the Junior Representative no later than 30 days after its
effectiveness; provided that the failure to give such notice shall not affect the effectiveness and validity thereof.

 

SECTION 7. Purchase Option.

 

7.1           Notice
of Exercise. Upon the occurrence and during the continuance of a Triggering Event, (a) the ABL Lender shall endeavor to promptly
give notice thereof to the Noteholder Agent, and (b) the Indenture Secured Parties, acting as a single group, through the Noteholder
Agent, shall have the option for a period of twenty (20) business days (or an unlimited number of days in the case of a Triggering
Event of the type described in clause (v) of the definition thereof), after the earlier of receipt of such notice or Noteholder
Agent’s knowledge of the occurrence of the Triggering Event, to issue a notice to the ABL Lender of the Indenture Secured
Parties intent to purchase all of the ABL Obligations from the ABL Lender. Such notice to the ABL Lender from the Noteholder Agent
on behalf of such Indenture Secured Parties shall be irrevocable. The
failure of the ABL Lender to provide the notice described in subsection (a) above shall not constitute a breach of its obligations
hereunder and shall not impair any of the ABL Lender’s rights hereunder or under any of the ABL Documents. Notwithstanding
anything to the contrary in this Agreement, the occurrence of a Triggering Event or the delivery of any notice under this Section
7.1, shall not prevent, postpone, or otherwise effect the right of the ABL Lender to exercise any rights or remedies permitted
under this Agreement, including, without limitation, the commencement or continuation of any Enforcement Action. 

 

7.2           Purchase
and Sale. On the date specified by the relevant Indenture Secured Parties in the notice contemplated by Section 7.1(b)
(which shall not be less than 5 Business Days, nor more than 10 Business Days, after the receipt by the ABL Lender of the notice
of the relevant Indenture Secured Parties’ election to exercise such option), the ABL Lender shall sell to the relevant Indenture
Secured Parties, and the relevant Indenture Secured Parties shall purchase from the ABL Lender, the ABL Obligations (other than
the Excess ABL Obligations) on an as-is, where-is basis; provided that, the ABL Lender shall retain all rights to be indemnified
or held harmless by the Loan Parties in accordance with the terms of the ABL Documents but shall not retain any rights to the security
therefor.

 

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7.3           Payment
of Purchase Price. Upon the date of such purchase and sale, the relevant Indenture Secured Parties shall (i) pay to the
ABL Lender as the purchase price therefor the full amount of all the ABL Obligations (other than the Excess ABL Obligations) then
outstanding and unpaid (including principal, interest, fees (including facility fees, but excluding fees that become due solely
as a result of the prepayment of the ABL Obligations or the early termination of the ABL Credit Agreement), and expenses (including,
without limitation, reasonable attorneys’ fees and legal expenses)), (ii) furnish cash collateral in an amount equal
to 105% of the face amount of the issued and outstanding letters of credit secured by the ABL Documents, (iii) agree to reimburse
the ABL Lender and letter of credit issuing banks for any loss, cost, damage or expense (including reasonable attorneys’
fees and legal expenses) in connection with any commissions, fees, costs or expenses related to any issued and outstanding letters
of credit as described above and any checks or other payments provisionally credited to the ABL Obligations, and/or as to which
the ABL Lender has not yet received final payment, (iv) agree to reimburse the ABL Lender and letter of credit issuing banks, in
respect of indemnification obligations of the Loan Parties under the ABL Documents as to matters or circumstances known to the
ABL Lender at the time of the purchase and sale which would reasonably be expected to result in any loss, cost, damage or expense
(including reasonable attorneys’ fees and legal expenses) to the ABL Lender or letter of credit issuing banks, as applicable,
and (v) agree to indemnify and hold harmless the ABL Lender and letter of credit issuing banks, from and against any loss, liability,
claim, damage or expense (including reasonable fees and expenses of legal counsel) arising out of any claim asserted by a third
party in respect of the ABL Obligations as a direct result of any acts by the ABL Lender occurring prior to the date of such purchase
to the extent such acts comply with the applicable standard of care (if any)
set forth for such actions in the ABL Credit Agreement. Such purchase price and cash collateral shall be remitted by wire transfer
in federal funds to such bank account as the ABL Lender may designate in writing for such purpose. 

 

7.4           Limitation
on Representations and Warranties. Such purchase shall be expressly made without representation or warranty of any kind by
the ABL Lender and without recourse of any kind, and the Indenture Secured Parties shall assume all obligations of ABL Lender under
the ABL Documents and indemnify ABL Lender for any breach thereof, all in accordance with assignment documentation in form and
substance acceptable to ABL Lender, except that the ABL Lender shall represent and warrant that the ABL Lender owns the ABL Obligations
free and clear of any Liens or encumbrances created by it.

 

7.5           Excess
ABL Obligations. In the event that any one or more Indenture Secured Parties exercises and consummates the purchase option
set forth in this Section 7 and at the time of such purchase, there exists Excess ABL Obligations, the consummation of such
purchase option shall not include (nor shall the purchase price be calculated with respect to) such Excess ABL Obligations (such
amount, the “Retained Interest”).

 

7.6           Retained
Interest. In the event that a Retained Interest exists, the ABL Lender shall, at the request of the purchasing Indenture
Secured Parties, execute an amendment to the ABL Agreement acknowledging that such Retained Interest consisting of Excess ABL Obligations
is a last-out tranche, payable after the ABL Obligations Payment Date and the Indenture Obligations Payment Date. Interest with
respect to such Retained Interest consisting of Excess ABL Obligations shall continue to accrue and be payable in accordance with
the terms of the ABL Documents, the Retained Interest shall continue to be secured by the Collateral (but shall be junior and subordinate
to all Liens on the Collateral in favor of the Noteholder Agent), and the Retained Interest shall be paid (or cash collateralized,
as applicable) in accordance with the terms of the ABL Agreement and this Agreement. The ABL Lender shall continue to have all
of its rights and remedies under the ABL Agreement and the other ABL Documents; provided that the ABL Lender shall have
no right to vote on or otherwise consent to any amendment, waiver, departure from, or other modification of any provision of any
Indenture Document except that the consent of the ABL Lender shall be required for matters in contravention of the provisions and
priorities set forth in this Agreement.

 

SECTION 8. Reliance; Waivers; etc.

 

8.1           Reliance.
The ABL Documents are deemed to have been executed and delivered, and all extensions of credit thereunder are deemed to have been
made or incurred, in reliance upon this Agreement. The Noteholder Agent, on behalf of it itself and the other Indenture Secured
Parties, expressly waives all notice of the acceptance of and reliance on this Agreement by the ABL Lender. The Indenture Documents
are deemed to have been executed and delivered and all extensions of credit thereunder are deemed to have been made or incurred,
in reliance upon this Agreement. The ABL Lender expressly waives all notices of the acceptance of and reliance on this Agreement
by the Noteholder Agent and the other Indenture Secured Parties.

 

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8.2           No
Warranties or Liability. The Noteholder Agent and the ABL Lender acknowledge and agree that neither has made any representation
or warranty with respect to the execution, validity, legality, completeness, collectability or enforceability of any other ABL
Document or any Indenture Document. Except as otherwise provided in this Agreement, the Noteholder Agent and the ABL Lender will
be entitled to manage and supervise the respective extensions of credit to any Loan Party in accordance with law and their usual
practices, modified from time to time as they deem appropriate.

 

8.3           No
Waivers. No right or benefit of any party hereunder shall at any time in any way be prejudiced or impaired by any act or failure
to act on the part of such party or any other party hereto or by any noncompliance by any Loan Party with the terms and conditions
of any of the ABL Documents or the Indenture Documents.

 

SECTION 9. Obligations
Unconditional.

 

All rights, interests,
agreements and obligations hereunder of the Senior Representative and the Senior Secured Parties in respect of any Collateral and
the Junior Representative and the Junior Secured Parties in respect of such Collateral shall remain in full force and effect regardless
of:

 

(a)          any
lack of validity or enforceability of any Senior Document or any Junior Document and regardless of whether the Liens of the Senior
Representative and Senior Secured Parties are not perfected or are voidable for any reason;

 

(b)          any
change in the time, manner or place of payment of, or in any other terms of, all or any of the Senior Obligations or Junior Obligations,
or any amendment or waiver or other modification, including any increase in the amount thereof, whether by course of conduct or
otherwise, of the terms of any Senior Document or any Junior Document;

 

(c)          any
exchange, release or lack of perfection of any Lien on any Collateral or any other asset, or any amendment, waiver or other modification,
whether in writing or by course of conduct or otherwise, of all or any of the Senior Obligations or Junior Obligations or any guarantee
thereof;

 

(d)          the
commencement of any Insolvency Proceeding in respect of any Loan Party; or

 

(e)          any
other circumstances which otherwise might constitute a defense available to, or a discharge of, any Loan Party in respect of any
Secured Obligation or of any Junior Secured Party in respect of this Agreement.

 

SECTION 10. Miscellaneous.

 

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10.1         Rights
of Subrogation. The Noteholder Agent, for and on behalf of itself and the Indenture Secured Parties, agrees that no payment
to the ABL Lender pursuant to the provisions of this Agreement shall entitle the Noteholder Agent or any Indenture Secured Party
to exercise any rights of subrogation in respect thereof until the ABL Obligations Payment Date. Following the ABL Obligations
Payment Date, the ABL Lender agrees to execute such documents, agreements, and instruments as the Noteholder Agent or any Indenture
Secured Party may reasonably request to evidence the transfer by subrogation to any such Person of an interest in the ABL Obligations
resulting from payments to the ABL Lender by such Person, so long as all costs and expenses (including all reasonable legal fees
and disbursements) incurred in connection therewith by the ABL Lender are paid by such Person upon request for payment thereof.
The ABL Lender agrees that no payment to the Noteholder Agent or any Indenture Secured Party pursuant to the provisions of this
Agreement shall entitle the ABL Lender to exercise any rights of subrogation in respect thereof until the Indenture Obligations
Payment Date. Following the Indenture Obligations Payment Date, the Noteholder Agent agrees to execute such documents, agreements,
and instruments as the ABL Lender may reasonably request to evidence the transfer by subrogation to any such Person of an interest
in the Indenture Obligations resulting from payments to the Noteholder Agent by such Person, so long as all costs and expenses
(including all reasonable legal fees and disbursements) incurred in connection therewith by the Noteholder Agent are paid by such
Person upon request for payment thereof.

 

10.2         Further
Assurances. Each of the Noteholder Agent and the ABL Lender will, at their own expense and at any time and from time to time,
promptly execute and deliver all further instruments and documents, and take all further action, that may be necessary or desirable,
or that the other party may reasonably request, in order to protect any right or interest granted or purported to be granted hereby
or to enable the ABL Lender or the Noteholder Agent to exercise and enforce its rights and remedies hereunder; provided
that no party shall be required to pay over any payment or distribution, execute any instruments or documents, or take any other
action referred to in this Section 10.2, to the extent that such action would contravene any law, order or other legal requirement
or any of the terms or provisions of this Agreement, and in the event of a controversy or dispute, such party may interplead any
payment or distribution in any court of competent jurisdiction, without further responsibility in respect of such payment or distribution
under this Section 10.2.

 

10.3         Conflicts.
In the event of any conflict between the provisions of this Agreement and the provisions of any ABL Document or any Indenture Document,
the provisions of this Agreement shall govern.

 

10.4         Continuing
Nature of Provisions. Subject to Section 5.5, this Agreement shall continue to be effective, and shall not be revocable
by any party hereto, until the earlier of (i) the ABL Obligations Payment Date and (ii) the Indenture Obligations Payment Date.
This is a continuing agreement and the ABL Lender and the Indenture Secured Parties may continue, at any time and without notice
to the other parties hereto, to extend credit and other financial accommodations, lend monies and provide indebtedness to, or for
the benefit of, any Loan Party on the faith hereof.

 

10.5         Amendments;
Waivers.

 

(a)          No
amendment or modification of any of the provisions of this Agreement shall be effective unless the same shall be in writing and
signed by the ABL Lender and the Noteholder Agent. A copy of any amendment or modification shall be promptly provided to the Borrower.

 

(b)          It
is understood that the ABL Lender and the Noteholder Agent, without the consent of any other Indenture Secured Party, may in their
discretion determine that a supplemental agreement (which may take the form of an amendment and restatement of this Agreement)
is necessary or appropriate to facilitate having additional indebtedness or other obligations (“Additional Debt”)
of any of the Loan Parties become ABL Obligations or Indenture Obligations, as the case may be, under this Agreement, which supplemental
agreement shall specify whether such Additional Debt constitutes ABL Obligations or Indenture Obligations; provided, that
such Additional Debt is permitted to be incurred by this Agreement, the ABL Agreement and the Indenture Agreement then extant,
and is permitted by said Agreements to be subject to the provisions of this Agreement as ABL Obligations or Indenture Obligations,
as applicable.

 

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10.6         Information
Concerning Financial Condition of the Loan Parties. Each of the Noteholder Agent and the ABL Lender hereby assume responsibility
for keeping itself informed of the financial condition of the Loan Parties and all other circumstances bearing upon the risk of
nonpayment of the ABL Obligations or the Indenture Obligations. The Noteholder Agent and the ABL Lender hereby agree that no party
shall have any duty to advise any other party of information known to it regarding such condition or any such circumstances (except
as otherwise provided in the ABL Documents and Indenture Documents). In the event the Noteholder Agent or the ABL Lender, in its
sole discretion, undertakes at any time or from time to time to provide any information to any other party to this Agreement, it
shall be under no obligation (a) to provide any such information to such other party or any other party on any subsequent occasion,
(b) to undertake any investigation not a part of its regular business routine, or (c) to disclose any other information.

 

10.7         Governing
Law. This Agreement shall be construed in accordance with and governed by the law of
the State of New York, except as otherwise required by mandatory provisions of law and except to the extent that remedies provided
by the laws of any jurisdiction other than the State of New York are governed by the laws of such jurisdiction.

 

10.8         CONSENT
TO JURISDICTION; JURY TRIAL WAIVER.

 

(A)         EACH
REPRESENTATIVE HEREBY AGREES THAT ALL JUDICIAL PROCEEDINGS BROUGHT AGAINST IT ARISING OUT OF OR RELATING HERETO MAY BE BROUGHT
IN ANY STATE OR FEDERAL COURT OF COMPETENT JURISDICTION IN THE STATE, COUNTY AND CITY OF NEW YORK. BY EXECUTING AND DELIVERING
THIS AGREEMENT, EACH OF THE ABL LENDER AND THE NOTEHOLDER AGENT, FOR ITSELF AND FOR THE OTHER INDENTURE SECURED PARTIES, IRREVOCABLY
(i) ACCEPTS GENERALLY AND UNCONDITIONALLY THE NONEXCLUSIVE JURISDICTION AND VENUE OF SUCH COURTS; (ii) WAIVES ANY DEFENSE
OF FORUM NON CONVENIENS; (iii) AGREES THAT SERVICE OF ALL PROCESS IN ANY SUCH PROCEEDING IN ANY SUCH COURT MAY BE MADE BY REGISTERED
OR CERTIFIED MAIL, RETURN RECEIPT REQUESTED, TO THE APPLICABLE REPRESENTATIVE AT ITS ADDRESS PROVIDED IN ACCORDANCE WITH SECTION
10.9 IS SUFFICIENT TO CONFER PERSONAL JURISDICTION OVER SUCH REPRESENTATIVE IN ANY SUCH PROCEEDING IN ANY SUCH COURT, AND OTHERWISE
CONSTITUTES EFFECTIVE AND BINDING SERVICE IN EVERY RESPECT; AND (iv) AGREES THAT EACH OF THE ABL LENDER AND EACH INDENTURE SECURED
PARTY RETAINS THE RIGHT TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY LAW OR TO BRING PROCEEDINGS AGAINST ANY LOAN PARTY IN
THE COURTS OF ANY OTHER JURISDICTION.

 

(B)         EACH
REPRESENTATIVE HEREBY AGREES THAT PROCESS MAY BE SERVED ON IT BY CERTIFIED MAIL, RETURN RECEIPT REQUESTED, TO THE ADDRESSES PERTAINING
TO IT AS SPECIFIED IN SECTION 10.9. ANY AND ALL SERVICE OF PROCESS AND ANY OTHER NOTICE IN ANY SUCH ACTION, SUIT OR PROCEEDING
SHALL BE EFFECTIVE AGAINST SUCH REPRESENTATIVE IF GIVEN BY REGISTERED OR CERTIFIED MAIL, RETURN RECEIPT REQUESTED, OR BY ANY OTHER
MEANS OR MAIL WHICH REQUIRES A SIGNED RECEIPT, POSTAGE PREPAID, MAILED AS PROVIDED ABOVE.

 

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(C)         EACH
OF THE PARTIES HERETO HEREBY AGREES TO WAIVE ITS RESPECTIVE RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR
ARISING HEREUNDER OR ANY DEALINGS BETWEEN THEM RELATING TO THE SUBJECT MATTER OF THIS AGREEMENT. THE SCOPE OF THIS WAIVER IS INTENDED
TO BE ALL ENCOMPASSING OF ANY AND ALL DISPUTES THAT MAY BE FILED IN ANY COURT AND THAT RELATE TO THE SUBJECT MATTER OF THIS AGREEMENT,
INCLUDING CONTRACT CLAIMS, TORT CLAIMS, BREACH OF DUTY CLAIMS AND ALL OTHER COMMON LAW AND STATUTORY CLAIMS. EACH PARTY HERETO
ACKNOWLEDGES THAT THIS WAIVER IS A MATERIAL INDUCEMENT TO ENTER INTO A BUSINESS RELATIONSHIP, THAT EACH HAS ALREADY RELIED ON THIS
WAIVER IN ENTERING INTO THIS AGREEMENT, AND THAT EACH WILL CONTINUE TO RELY ON THIS WAIVER IN ITS RELATED FUTURE DEALINGS. EACH
PARTY HERETO FURTHER WARRANTS AND REPRESENTS THAT IT HAS REVIEWED THIS WAIVER WITH ITS LEGAL COUNSEL AND THAT IT KNOWINGLY AND
VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS FOLLOWING CONSULTATION WITH LEGAL COUNSEL. THIS WAIVER IS IRREVOCABLE, MEANING THAT IT
MAY NOT BE MODIFIED EITHER ORALLY OR IN WRITING (OTHER THAN BY A MUTUAL WRITTEN WAIVER SPECIFICALLY REFERRING TO THIS SECTION
10.8(C) AND EXECUTED BY EACH OF THE PARTIES HERETO), AND THIS WAIVER SHALL APPLY TO ANY SUBSEQUENT AMENDMENTS, RENEWALS, SUPPLEMENTS
OR MODIFICATIONS HERETO. IN THE EVENT OF LITIGATION, THIS AGREEMENT MAY BE FILED AS A WRITTEN CONSENT TO A TRIAL BY THE COURT.

 

10.9         Notices.
Unless otherwise specifically provided herein, any notice or other communication herein required or permitted to be given shall
be in writing and may be personally served, telecopied, or sent by overnight express courier service or United States mail and
shall be deemed to have been given when delivered in person or by courier service, upon receipt of a telecopy or five days after
deposit in the United States mail (certified, with postage prepaid and properly addressed). For the purposes hereof, the addresses
of the parties hereto (until notice of a change thereof is delivered as provided in this Section 10.9) shall be, in the
case of the ABL Lender or the Noteholder Agent, as set forth below such Person’s name on the signature pages hereof, or,
in the case of any Loan Party, on the signature page to the Acknowledgment attached as Annex 1, or such other address as may be
designated by such Person in a written notice to all of the other parties.

 

10.10         Successors
and Assigns. This Agreement shall be binding upon and inure to the benefit of each of the parties hereto and each of
the ABL Lender and Indenture Secured Parties and their respective successors and assigns, and nothing herein is intended, or shall
be construed to give, any other Person any right, remedy or claim under, to or in respect of this Agreement or any Collateral.

 

10.11         Headings.
Section headings used herein are for convenience of reference only, are not part of this Agreement and shall not affect the construction
of, or be taken into consideration in interpreting, this Agreement.

 

10.12         Severability.
Any provision of this Agreement held to be invalid, illegal or unenforceable in any jurisdiction shall, as to such jurisdiction,
be ineffective to the extent of such invalidity, illegality or unenforceability without affecting the validity, legality and enforceability
of the remaining provisions hereof; and the invalidity of a particular provision in a particular jurisdiction shall not invalidate
such provision in any other jurisdiction.

 

10.13         Other
Remedies. For avoidance of doubt, it is understood that nothing in this Agreement shall prevent the ABL Lender or any Indenture
Secured Party from exercising any available remedy to accelerate the maturity of any indebtedness or other obligations owing under
the ABL Documents or the Indenture Documents, as applicable, or to demand payment under any Guarantee in respect thereof.

 

    	- 34 -

    	 

    

 

10.14         Counterparts;
Integration; Effectiveness. This Agreement may be executed in counterparts (and by different parties hereto on different counterparts),
each of which shall constitute an original, but all of which when taken together shall constitute a single contract. Delivery of
an executed counterpart of a signature page of this Agreement by telecopy shall be effective as delivery of a manually executed
counterpart of this Agreement. This Agreement shall become effective when it shall have been executed by each party hereto.

 

10.15         Additional
Loan Parties. The Borrower shall cause each Person that becomes a Loan Party after the date hereof to acknowledge this Agreement
by execution and delivery by such Person of an Acknowledgment in the form of Annex 1.

 

10.16         Bailment.
Each Senior Representative agrees that if it shall at any time hold in its possession or control any Common Collateral, such Senior
Representative shall, solely for the purpose of perfecting the Junior Liens granted under the Junior Documents and subject to the
terms and conditions of this Section 10.16, also hold and/or maintain control of such Common Collateral as gratuitous bailee for
and representative (as defined in Section 1-201(35) of the UCC) of the Junior Representative. The Senior Representative, until
the ABL Obligations Payment Date or the Indenture Obligations Payment Date, as applicable, shall be entitled to deal with such
Common Collateral in accordance with the terms of this Agreement and the other Loan Documents as if the Junior Lien did not exist.
Without limiting the foregoing, the Senior Representative shall have no obligation or responsibility to ensure that any Common
Collateral is genuine or owned by any of the Loan Parties. No Senior Representative shall, by reason of this Agreement, any other
Security Document or any other agreement, document or instrument, have a fiduciary relationship in respect of any other Secured
Party. After the ABL Obligations Payment Date or the Indenture Obligations Payment Date, as applicable, the Senior Representative
shall transfer the possession and control of such Common Collateral, together with any necessary endorsements but without recourse
or warranty, (i) if the Junior Obligations are outstanding at such time, to the Junior Representative, and (ii) if no Junior Obligations
are outstanding at such time, to the applicable Loan Party, in each case so as to allow such person to obtain possession and control
of such Common Collateral.

 

10.17         Reinstatement.
If, in any Insolvency Proceeding or otherwise, all or part of any payment with respect to the Senior Obligations previously made
shall be rescinded for any reason whatsoever, then such Senior Obligations shall be reinstated to the extent of the amount so rescinded
and, if theretofore terminated, this Agreement shall be reinstated in full force and effect and such prior termination shall not
diminish, release, discharge, impair or otherwise affect the Lien priorities and the relative rights and obligations of the Secured
Parties provided for herein. In addition, each Representative further agrees that if, at any time, all or part of any payment with
respect to any Senior Obligations secured by any Senior Collateral previously made shall be rescinded for any reason whatsoever,
such Representative will promptly pay over to the other Representative any payment received by it in respect of any such Senior
Collateral that is still in such Representative’s possession and shall promptly turn any such Senior Collateral then held
by it over to the other Representative, and the provisions set forth in this Agreement will be reinstated as if such payment had
not been made, until the payment and satisfaction in full of the applicable Senior Obligations.

 

[Remainder of page intentionally left
blank] 

 

    	- 35 -

    	 

    

 

IN WITNESS WHEREOF,
the parties hereto have executed this Agreement as of the date first written above.

 

	ABL LENDER:	WELLS FARGO BANK, NATIONAL ASSOCIATION, as ABL Lender
	 	 	 
	 	By:	 
	 	 	Name: James B. Fisher
	 	 	Title: Authorized Signatory
	 	 	 
	 	Address for Notices:
	 	 
	 	Wells Fargo Bank, National Association
	 	1300 SW Fifth Avenue, 6th Floor
	 	Portland, OR 97201
	 	MAC P6101-068
	 	Attn: SAExploration Relationship Manager
	 	Fax No. (877) 518-9602
	 	Email: michael.white@wellsfargo.com
	 	 	 
	 	With a copy to (which shall not constitute notice):
	 	 	 
	 	Lane Powell PC 
	 	1420 Fifth Avenue, Suite 4200 
	 	P.O. Box 91302 
	 	Seattle, WA 98111-9402
	 	Attention:  Gregory R. Fox
	 	Email: foxg@lanepowell.com 
	 	Facsimile: (206) 223-7107

 

INTERCREDITOR AGREEMENT

 

    	 

    	 

    

 

	NOTEHOLDER AGENT:	U.S. BANK NATIONAL ASSOCIATION, as Noteholder Agent for and on behalf of the Indenture Secured Parties
	 	 	 
	 	By:	 
	 	 	Name:  Steven A. Finklea 
	 	 	Title:  Vice President
	 	 	 
	 	Address for Notices:
	 	 
	 	5555 San Felipe Street, Suite 1150
	 	Houston, Texas 77056
	 	Attention:  Mauri J. Cowen
	 	Email: mauri.cowen@usbank.com 
	 	Facsimile: (713) 235-9213
	 	 
	 	With a copy to (which shall not constitute notice):
	 	 
	 	Thompson & Knight LLP
	 	333 Clay St., Suite 3300
	 	Houston, Texas 77002
	 	Attention: Cassandra G. Mott
	 	Email:
    cassandra.mott@tklaw.com 
	 	Facsimile: (832) 397-8012

 

INTERCREDITOR AGREEMENT

 

    	 

    	 

    

 

ANNEX 1 

 

ACKNOWLEDGMENT

 

The undersigned hereby
acknowledge and consent to the foregoing Intercreditor Agreement, dated as of November 6, 2014 (as in effect on the date hereof,
the “Intercreditor Agreement”), by and between Wells Fargo Bank, National Association, as ABL Lender, and U.S.
Bank National Association, as Noteholder Agent. Unless otherwise defined in this Acknowledgement, terms defined in the Intercreditor
Agreement have the same meanings when used in this Acknowledgement.

 

Each Loan Party agrees
to be bound by the Intercreditor Agreement and agrees that it will, together with its successors and assigns, recognize all rights
granted pursuant to the Intercreditor Agreement to each Representative and each Class of Secured Parties and will not do any act
or perform any obligation which is not in accordance with the agreements set forth in the Intercreditor Agreement.

 

Each Loan Party agrees
that any Representative holding Collateral does so as bailee (under the UCC) for the other and is hereby authorized to and may
turn over to such other Representative upon request therefor any such Collateral, after all obligations and indebtedness of each
of undersigned to the bailee Representative and the Secured Parties for which it acts have been fully paid and performed.

 

Each Loan Party further
acknowledges and agrees that (i) it is not an intended beneficiary or third party beneficiary under the Intercreditor Agreement
or under any amendment thereto, (ii) in the event of a breach by any Loan Party that is continuing of any of the terms and provisions
contained in the foregoing Intercreditor Agreement, such a breach shall constitute an “Event of Default” as defined
in and under the ABL Agreement, (iii) it will execute and deliver such additional documents and take such additional actions as
may be necessary or desirable in the opinion of any Representative to effectuate the provisions and purposes of the foregoing Intercreditor
Agreement and (iv) the Intercreditor Agreement may be amended or supplemented from time to time without notice to, or the consent
of, any Loan Party so long as such amendment or supplement does not impose any additional obligations on such Loan Party.

 

[Remainder of page intentionally left
blank] 

 

ANNEX 1 - ACKNOWLEDGMENT 

 

    	 

    	 

    

 

	 	SAEXPLORATION, INC.
	 	 	 
	 	By:	 
	 	 	Name:  Brent Whiteley
	 	 	Title:  Chief Financial Officer
	 	 	 
	 	SAEXPLORATION HOLDINGS, INC.
	 	 	 
	 	By:	 
	 	 	Name:  Brent Whiteley
	 	 	Title:  Chief Financial Officer
	 	 	 
	 	SAEXPLORATION SUB, INC.
	 	 	 
	 	By:	 
	 	 	Name:  Brent Whiteley
	 	 	Title:  Chief Financial Officer
	 	 	 
	 	SAExploration Seismic Services (US), LLC
	 	 	 
	 	By:	 
	 	 	Name:  Brent Whiteley
	 	 	Title:  Chief Financial Officer
	 	 	 
	 	NES, LLC
	 	 	 
	 	By:	 
	 	 	Name:  Brent Whiteley
	 	 	Title:  Chief Financial Officer
	 	 	 
	 	Address for Notices:
	 	1160 Dairy Ashford, Suite 160
	 	Houston, Texas 77079
	 	Attention: Chief Financial Officer
	 	Email:  bwhiteley@saexploration.com
	 	Facsimile:  (281)258-4418

 

INTERCREDITOR AGREEMENTex-4.5

 Exhibit 4.5
 

 

 	 	 	 	 	
	  
	  
	  
	  
	  

	  
	  
	  
	  
	  

	  
	  
	 BLUE EARTH, INC.
	  
	  

	  
	  
	  
	  
	  

	  
	  
	 and
	  
	  

	  
	  
	  
	  
	  

	  
	  
	 _________________________, as Trustee
	  
	  

	  
	  
	 INDENTURE
	  
	  

	  
	  
	 Dated as of __________, 20__
	  
	  

	  
	  
	 Providing for the Issuance of Debt Securities
	  
	  

  
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
  
 CROSS-REFERENCE TABLE*
 

 	 	 	 	 	 	 	 	 	
	 Trust Indenture
	  
	  
	  
	  

	 Act Section
	  
	 
	  
	 Indenture Section

	 
	310
	(a)(1)
	  
	  
	  
	  
	 N.A.
	  

	  
	  
	 (a)(2)
	  
	  
	  
	  
	 6.13
	  

	 
	 
	(a)(3)
	  
	  
	  
	  
	 6.13
	  

	  
	  
	 (a)(4)
	  
	  
	  
	  
	 N.A.
	  

	 
	 
	(a)(5)
	  
	  
	  
	  
	 7.01
	  

	  
	  
	 (b)
	  
	  
	  
	  
	 7.02
	  

	 
	 
	(c)
	  
	  
	  
	  
	 7.02
	  

	  
	 311
	 (a)
	  
	  
	  
	  
	 7.03
	  

	 
	 
	(b)
	  
	  
	  
	  
	 7.03
	  

	  
	  
	 (c)
	  
	  
	  
	  
	 7.03
	  

	 
	312
	(a)
	  
	  
	  
	  
	 7.03
	  

	  
	  
	 (b)
	  
	  
	  
	  
	 7.04; 1.02
	  

	 
	 
	(c)
	  
	  
	  
	  
	 1.02
	  

	  
	 313
	 (a)
	  
	  
	  
	  
	 1.02
	  

	 
	 
	(b)(2)
	  
	  
	  
	  
	 N.A.
	  

	  
	  
	 (c)
	  
	  
	  
	  
	 1.02
	  

	 
	 
	(d)
	  
	  
	  
	  
	 N.A.
	  

	  
	 314
	 (a)
	  
	  
	  
	  
	 6.01
	  

	 
	 
	(c)(1)
	  
	  
	  
	  
	 6.02; 1.06
	  

	  
	  
	 (c)(2)
	  
	  
	  
	  
	 6.01
	  

	 
	 
	(c)(3)
	  
	  
	  
	  
	 6.01
	  

	  
	  
	 (e)
	  
	  
	  
	  
	 5.14
	  

	 
	 
	(f)
	  
	  
	  
	  
	 1.01
	  

	  
	 315
	 (a)
	  
	  
	  
	  
	 5.12
	  

	 
	 
	(b)
	  
	  
	  
	  
	 5.02
	  

	  
	  
	 (c)
	  
	  
	  
	  
	 N.A.
	  

	 
	 
	(d)
	  
	  
	  
	  
	 5.08
	  

	  
	  
	 (e)
	  
	  
	  
	  
	 3.07
	  

	 
	316
	(a)(last sentence)
	  
	  
	  
	  
	 5.03
	  

	  
	  
	 (a)(1)(A)
	  
	  
	  
	  
	 5.04
	  

	 
	 
	(a)(1)(B)
	  
	  
	  
	  
	 4.06
	  

	  
	  
	 (a)(2)
	  
	  
	  
	  
	 1.07
	  

	 
	 
	(b)
	  
	  
	  
	  
	 N.A.
	  

	  
	  
	 (c)
	  
	  
	  
	  
	 1.07
	  

  
 	 	 	
	 N.A. means not applicable

	  
	  
	  

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

  
 

 

 

 

 
 

 

  
 TABLE OF CONTENTS
 	 	 	 	 	
	  
	  
	  
	  
	  

	 ARTICLE I DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION
	  
	  
	 1
	  

	  
	  
	  
	  
	  

	 Section 1.01 Definitions
	  
	  
	 1
	  

	 Section 1.02 Officers’ Certificates and Opinions
	  
	  
	 6
	  

	 Section 1.03 Form of Documents Delivered to Trustee
	  
	  
	 6
	  

	 Section 1.04 Acts of Securityholders
	  
	  
	 6
	  

	 Section 1.05 Notices, etc., to Trustee and Company
	  
	  
	 7
	  

	 Section 1.06 Notice To Securityholders; Waiver
	  
	  
	 7
	  

	 Section 1.07 Conflict with Trust Indenture Act
	  
	  
	 8
	  

	 Section 1.08 Effect of Headings and Table of Contents
	  
	  
	 8
	  

	 Section 1.09 Successors and Assigns
	  
	  
	 8
	  

	 Section 1.10 Separability Clause
	  
	  
	 8
	  

	 Section 1.11 Benefits of Indenture
	  
	  
	 8
	  

	 Section 1.12 Governing Law
	  
	  
	 8
	  

	 Section 1.13 Counterparts
	  
	  
	 8
	  

	 Section 1.14 Judgment Currency
	  
	  
	 8
	  

	 Section 1.15 Legal Holidays
	  
	  
	 8
	  

	  
	  
	  
	  
	  

	 ARTICLE II SECURITY FORMS
	  
	  
	 9
	  

	  
	  
	  
	  
	  

	 Section 2.01 Forms Generally
	  
	  
	 9
	  

	 Section 2.02 Forms of Securities
	  
	  
	 9
	  

	 Section 2.03 Securities in Global Form
	  
	  
	 9
	  

	 Section 2.04 Form of Trustee’s Certificate of Authentication
	  
	  
	 9
	  

	  
	  
	  
	  
	  

	 ARTICLE III THE SECURITIES
	  
	  
	 9
	  

	  
	  
	  
	  
	  

	 Section 3.01 General Title; General Limitations; Issuable in Series; Terms of Particular Series
	  
	  
	 9
	  

	 Section 3.02 Denominations and Currency
	  
	  
	 12
	  

	 Section 3.03 Execution, Authentication and Delivery, and Dating
	  
	  
	 12
	  

	 Section 3.04 Temporary Securities
	  
	  
	 14
	  

	 Section 3.05 Registration, Transfer and Exchange
	  
	  
	 14
	  

	 Section 3.06 Mutilated, Destroyed, Lost and Stolen Securities
	  
	  
	 16
	  

	 Section 3.07 Payment of Interest; Interest Rights Preserved
	  
	  
	 16
	  

	 Section 3.08 Persons Deemed Owners
	  
	  
	 17
	  

	 Section 3.09 Cancellation
	  
	  
	 17
	  

	 Section 3.10 Computation of Interest
	  
	  
	 17
	  

	  
	  
	  
	  
	  

	 ARTICLE IV SATISFACTION AND DISCHARGE
	  
	  
	 18
	  

	  
	  
	  
	  
	  

	 Section 4.01 Satisfaction and Discharge of Indenture
	  
	  
	 18
	  

	 Section 4.02 Discharge and Defeasance
	  
	  
	 18
	  

	 Section 4.03 Covenant Defeasance
	  
	  
	 19
	  

	 Section 4.04 Conditions To Defeasance Or Covenant Defeasance
	  
	  
	 19
	  

	 Section 4.05 Application of Trust Money; Excess Funds
	  
	  
	 20
	  

	 Section 4.06 Paying Agent to Repay Moneys Held
	  
	  
	 21
	  

	 Section 4.07 Return of Unclaimed Amounts
	  
	  
	 21
	  

 

 

 -i-
 

 
 

 	 	 	 	 	
	 ARTICLE V REMEDIES
	  
	  
	 21
	  

	  
	  
	  
	  
	  

	 Section 5.01 Events of Default
	  
	  
	 21
	  

	 Section 5.02 Acceleration of Maturity; Rescission, and Annulment
	  
	  
	 22
	  

	 Section 5.03 Collection of Indebtedness and Suits for Enforcement by Trustee
	  
	  
	 23
	  

	 Section 5.04 Trustee May File Proofs of Claim
	  
	  
	 23
	  

	 Section 5.05 Trustee May Enforce Claims Without Possession of Securities
	  
	  
	 24
	  

	 Section 5.06 Application of Money Collected
	  
	  
	 24
	  

	 Section 5.07 Limitation on Suits
	  
	  
	 24
	  

	 Section 5.08 Unconditional Right of Securityholders to Receive Principal, Premium, and Interest
	  
	  
	 24
	  

	 Section 5.09 Restoration of Rights and Remedies
	  
	  
	 25
	  

	 Section 5.10 Rights and Remedies Cumulative
	  
	  
	 25
	  

	 Section 5.11 Delay or Omission Not Waiver
	  
	  
	 25
	  

	 Section 5.12 Control by Securityholders
	  
	  
	 25
	  

	 Section 5.13 Waiver of Past Defaults
	  
	  
	 25
	  

	 Section 5.14 Undertaking for Costs
	  
	  
	 25
	  

	 Section 5.15 Waiver of Stay or Extension Laws
	  
	  
	 26
	  

	  
	  
	  
	  
	  

	 ARTICLE VI THE TRUSTEE
	  
	  
	 26
	  

	  
	  
	  
	  
	  

	 Section 6.01 Certain Duties and Responsibilities of Trustee
	  
	  
	 26
	  

	 Section 6.02 Notice of Defaults
	  
	  
	 27
	  

	 Section 6.03 Certain Rights of Trustee
	  
	  
	 27
	  

	 Section 6.04 Not Responsible for Recitals or Issuance of Securities
	  
	  
	 27
	  

	 Section 6.05 May Hold Securities
	  
	  
	 28
	  

	 Section 6.06 Money Held in Trust
	  
	  
	 28
	  

	 Section 6.07 Compensation and Reimbursement
	  
	  
	 28
	  

	 Section 6.08 Disqualification; Conflicting Interests
	  
	  
	 28
	  

	 Section 6.09 Corporate Trustee Required; Eligibility
	  
	  
	 28
	  

	 Section 6.10 Resignation and Removal; Appointment of Successor
	  
	  
	 29
	  

	 Section 6.11 Acceptance of Appointment by Successor
	  
	  
	 29
	  

	 Section 6.12 Merger, Conversion, Consolidation or Succession to Business
	  
	  
	 30
	  

	 Section 6.13 Preferential Collection of Claims Against Company
	  
	  
	 30
	  

	 Section 6.14 Appointment of Authenticating Agent
	  
	  
	 30
	  

	  
	  
	  
	  
	  

	 ARTICLE VII SECURITYHOLDERS’ LISTS AND REPORTS BY TRUSTEE AND COMPANY
	  
	  
	 31
	  

	  
	  
	  
	  
	  

	 Section 7.01 Company to Furnish Trustee Names and Addresses of Securityholders
	  
	  
	 31
	  

	 Section 7.02 Preservation of Information; Communications to Securityholders
	  
	  
	 32
	  

	 Section 7.03 Reports by Trustee
	  
	  
	 32
	  

	 Section 7.04 Reports by Company
	  
	  
	 33
	  

	  
	  
	  
	  
	  

	 ARTICLE VIII CONSOLIDATION, MERGER, CONVEYANCE OR TRANSFER
	  
	  
	 33
	  

	  
	  
	  
	  
	  

	 Section 8.01 Company May Consolidate, etc., Only on Certain Terms
	  
	  
	 33
	  

	 Section 8.02 Successor Corporation Substituted
	  
	  
	 34
	  

	  
	  
	  
	  
	  

	 ARTICLE IX SUPPLEMENTAL INDENTURES
	  
	  
	 34
	  

	  
	  
	  
	  
	  

	 Section 9.01 Supplemental Indentures Without Consent of Securityholders
	  
	  
	 34
	  

	 Section 9.02 Supplemental Indentures With Consent of Securityholders
	  
	  
	 35
	  

	 Section 9.03 Execution of Supplemental Indentures
	  
	  
	 36
	  

	 Section 9.04 Effect of Supplemental Indentures
	  
	  
	 36
	  

	 Section 9.05 Conformity With Trust Indenture Act
	  
	  
	 36
	  

	 Section 9.06 Reference in Securities to Supplemental Indentures
	  
	  
	 36
	  

 

 -ii-
 

 
 

 	 	 	 	 	
	  
	  
	  
	  
	  

	 ARTICLE X COVENANTS
	  
	  
	 36
	  

	  
	  
	  
	  
	  

	 Section 10.01 Payment of Principal, Premium and Interest
	  
	  
	 36
	  

	 Section 10.02 Maintenance of Office or Agency
	  
	  
	 36
	  

	 Section 10.03 Money or Security Payments to Be Held in Trust
	  
	  
	 36
	  

	 Section 10.04 Certificate to Trustee
	  
	  
	 37
	  

	 Section 10.05 Corporate Existence
	  
	  
	 37
	  

	  
	  
	  
	  
	  

	 ARTICLE XI REDEMPTION OF SECURITIES
	  
	  
	 37
	  

	  
	  
	  
	  
	  

	 Section 11.01 Applicability of Article
	  
	  
	 37
	  

	 Section 11.02 Election to Redeem; Notice to Trustee
	  
	  
	 38
	  

	 Section 11.03 Selection by Trustee of Securities to be Redeemed
	  
	  
	 38
	  

	 Section 11.04 Notice of Redemption
	  
	  
	 38
	  

	 Section 11.05 Deposit of Redemption Price
	  
	  
	 39
	  

	 Section 11.06 Securities Payable on Redemption Date
	  
	  
	 39
	  

	 Section 11.07 Securities Redeemed in Part
	  
	  
	 39
	  

	 Section 11.08 Provisions with Respect to any Sinking Funds
	  
	  
	 39
	  

	  
	  
	  
	  
	  

	 ARTICLE XII REPAYMENT AT OPTION OF HOLDERS
	  
	  
	 40
	  

	  
	  
	  
	  
	  

	 Section 12.01 Applicability of Article
	  
	  
	 40
	  

	 Section 12.02 Repayment of Securities
	  
	  
	 40
	  

	 Section 12.03 Exercise of Option
	  
	  
	 40
	  

	 Section 12.04 When Securities Presented for Repayment Become Due and Payable
	  
	  
	 41
	  

	 Section 12.05 Securities Repaid in Part
	  
	  
	 41
	  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 -iii-
 

 
 

      THIS INDENTURE, between Blue Earth, Inc., a Nevada corporation (hereinafter called the “Company”) having its principal office at 2298 Horizon Ridge Parkway, Suite 205, Henderson, NV  89052, and, [ ], a [ ] as trustee (hereinafter called the “ Trustee ”), is made and entered into as of this [ ] day of [ ], 20[ ].
 Recitals of the Company
      The Company has duly authorized the execution and delivery of this Indenture to provide for the issuance of its unsecured debentures, notes, bonds, and other evidences of indebtedness, to be issued in one or more fully registered series.
      All things necessary to make this Indenture a valid agreement of the Company, in accordance with its terms, have been done.
 Agreements of the Parties
      To set forth or to provide for the establishment of the terms and conditions upon which the Securities (as hereinafter defined) are and are to be authenticated, issued, and delivered, and in consideration of the premises thereof, and the purchase of Securities by the Holders (as hereinafter defined) thereof, it is mutually covenanted and agreed as follows, for the equal and proportionate benefit of all Holders from time to time of the Securities or of any series thereof, as the case may be:
 ARTICLE I
  DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION
      Section 1.01 Definitions. For all purposes of this Indenture and of any indenture supplemental hereto, 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 (as hereinafter defined), either directly or by reference therein, have the meanings assigned to them therein;
  (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 as are generally accepted in the United States of America at the date of such computation; and
  (d) all references in this instrument to designated “Articles”, “Sections” and other subdivisions are to the designated Articles, Sections and other subdivisions of this instrument as originally executed. 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) the following terms will have the meanings set forth below:
      “Act”, when used with respect to any Securityholder (as hereinafter defined), has the meaning specified in Section 1.04.
      “Affiliate” of any specified Person (as hereinafter defined) 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.
      “Authenticating Agent” means any Person authorized by the Trustee to authenticate Securities of one or more series under Section 6.14.
      “Authentication Order” has the meaning specified in Section 3.03.
 

 

 

 

 

 

 

 -1-
 

 
 

      “Board of Directors” means (i) the board of directors of the Company, (ii) any duly authorized committee of that board, or (iii) any officer, director, or authorized representative of the Company, in each case duly authorized by such Board to act hereunder.
      “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.
      “Capital Stock” means, with respect to any Person, any capital stock (including preferred stock), shares, interests, participations or other ownership interests (however designated) of such Person and any rights (other than debt securities convertible or exchangeable for corporate stock), warrants or options to purchase any thereof.
      “Commission” means the Securities and Exchange Commission, as from time to time constituted, created under the Securities Exchange Act of 1934, or, if at any time after the execution of this instrument such Commission is not existing and performing the duties now assigned to it under the Trust Indenture Act, then the body performing such duties on such date.
      “Company” means Blue Earth, Inc., unless and until a successor corporation shall have become such pursuant to the applicable provisions of this Indenture, and thereafter “ Company ” shall mean such successor corporation.
      “Company Request”, “Company Order”, and “Company Consent” mean, respectively, a written request, order, or consent signed in the name of the Company by the chairman of the Board of Directors, the chief executive officer, the chief financial officer, the treasurer, the controller, or by any other officer or officers of the Company pursuant to an applicable Board Resolution, and delivered to the Trustee.
      “Corporate Trust Office” means the office of the Trustee at which at any particular time its corporate trust business shall be principally administered, which office at the date hereof is located at [ ].
      “Corporation” means a corporation, association, company, joint-stock company, limited liability company or business trust.
      “Covenant Defeasance” has the meaning specified in Section 4.03.
      “Defaulted Interest” has the meaning specified in Section 3.07.
      “Defeasance” has the meaning specified in Section 4.02.
      “Depositary” means with respect to the Securities of any series issuable or issued in whole or in part in global form, the Person designated as Depositary by the Company pursuant to Section 3.01, unless and until a successor Depositary shall have become such pursuant to the applicable provisions of this Indenture, and thereafter “Depositary ” shall mean or include each Person who is then a Depositary hereunder, and if at any time there is more than one such Person, “Depositary ” as used with respect to the Securities of any such series shall mean the “Depositary ” with respect to the Securities of that series.
      “Equivalent Government Securities” means, in relation to Securities denominated in a currency other than U.S. dollars, securities of the government that issued the currency in which such Securities are denominated or securities of government agencies backed by the full faith and credit of such government.
      “Event of Default” has the meaning specified in Article 5.
      “Holder”, “Securityholder” and “Holder of Securities” means a Person in whose name a Security is registered in the Security Register (as hereinafter defined).
      “Indebtedness” with respect to any Person means (1) any liability of such Person (a) for borrowed money, or (b) evidenced by a bond, note, debenture or similar instrument (including purchase money obligations but excluding Trade Payables), or (c) for the payment of money relating to a lease that is required to be classified as a capitalized lease obligation in accordance with generally accepted accounting principles; (2) mandatorily
 

 

 

 

 

 

 

 

 

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 redeemable preferred or preference stock of a Subsidiary held by Persons other than the Company or a Subsidiary; (3) any liability of others described in the preceding clause (1) that such Person has guaranteed, that is recourse to such Person or that is otherwise such Person’s legal liability; and (4) any amendment, supplement, modification, deferral, renewal, extension or refunding of any liability of the types referred to in clauses (1), (2) and (3) above.
      “Indenture” or “this Indenture” means this instrument as originally executed or as it may from time to time be supplemented or amended by one or more indentures supplemental hereto entered into pursuant to the applicable provisions hereof and shall include the terms of any particular series of Securities established as contemplated by Section 3.01.
      “Interest Payment Date”, when used with respect to any series of Securities, means any date on which an installment of interest on those Securities is scheduled to be paid.
      “Maturity”, when used with respect to any Security, means the date on which the principal amount outstanding under such Security or an installment of principal amount outstanding under such Security becomes due and payable, as therein or herein provided, whether on the Scheduled Maturity Date (as hereinafter defined), by declaration of acceleration, call for redemption, or otherwise.
      “New York Business Day” means (except, with respect to any particular series of Securities, as may be otherwise provided in the form of such Securities) any day other than a Saturday or Sunday that is neither a legal holiday nor a day on which banking institutions are authorized or required by law, regulation, or executive order to be closed.
      “Officers’ Certificate” means a certificate signed by any two of the chairman of the Board of Directors, the chief executive officer, the president, any vice president, the treasurer or by any other officer or officers of the Company pursuant to an applicable Board Resolution, and delivered to the Trustee.
      “Opinion of Counsel” means a written opinion of counsel to the Company, which counsel may be an employee of the Company or other counsel who shall be reasonably acceptable to the Trustee.
      “Original Issue Discount Security” means any Security which is initially sold at a discount from the principal amount thereof and the terms of which provide that upon redemption or acceleration of the Maturity thereof, an amount less than the principal amount thereof would become due and payable.
      “Outstanding”, when used with respect to any particular Securities or to the Securities of any particular series means, as of the date of determination, all such Securities theretofore authenticated and delivered under this Indenture, except:
  (a) such Securities theretofore canceled by the Trustee or delivered by the Company to the Trustee for cancellation;
  (b) such Securities, or portions thereof, for whose payment or redemption money in the necessary amount has been theretofore deposited in trust with the Trustee or with any Paying Agent (as hereinafter defined) other than the Company, or, if the Company shall act as its own Paying Agent, has been set aside and segregated in trust by the Company; provided, in any case, that if such Securities are to be redeemed prior to their Scheduled Maturity Date, notice of such redemption has been duly given pursuant to this Indenture or provision therefor satisfactory to the Trustee has been made; and
  (c) such Securities in exchange for or in lieu of which other Securities have been authenticated and delivered pursuant to this Indenture, or which shall have been paid, in each case, pursuant to the terms of Section 3.06 (except with respect to any such Security as to which proof satisfactory to the Trustee is presented that such Security is held by a Person in whose hands such Security is a legal, valid, and binding obligation of the Company).
      In determining whether the Holders of the requisite principal amount of such Securities Outstanding have given any request, demand, authorization, direction, notice, consent or waiver hereunder, the principal amount of any Original Issue Discount Security that shall be deemed to be Outstanding shall be the amount of the principal thereof that would be due and payable as of the date of such determination upon a declaration of acceleration of the
 

 

 

 

 

 

 

 

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 Maturity thereof. In determining whether the Holders of the requisite principal amount of such Securities Outstanding have given a direction concerning the time, method, and place of conducting any proceeding for any remedy available to the Trustee, or concerning the exercise of any trust or power conferred upon the Trustee under this Indenture, or concerning a consent on behalf of the Holders of any series of Securities to the waiver of any past default and its consequences, Securities owned by the Company, any other obligor upon the Securities, or any Affiliate of the Company or such other obligor shall be disregarded and deemed not to be Outstanding. In determining whether the Trustee shall be protected in relying upon any such request, demand, authorization, direction, notice, consent, or waiver, only Securities which a Responsible Officer assigned to the corporate trust department of the Trustee knows to be owned by the Company or any other obligor upon the Securities or any Affiliate of the Company or such other obligor 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 to act as owner 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.
      “Paying Agent” means, with respect to any Securities, any Person appointed by the Company to distribute amounts payable by the Company on such Securities. If at any time there shall be more than one such Person, “Paying Agent” as used with respect to the Securities of any particular series shall mean the Paying Agent with respect to Securities of that series. As of the date of this Indenture, the Company has appointed [ ] as Paying Agent with respect to all Securities issuable hereunder.
      “Person” means any individual, corporation, partnership, joint venture, association, joint-stock company, trust, unincorporated organization, or government, or any agency or political subdivision thereof.
      “Place of Payment” means with respect to any series of Securities issued hereunder the city or political subdivision so designated with respect to the series of Securities in question in accordance with the provisions of Section 3.01.
      “Predecessor Securities” of any particular Security means every previous Security evidencing all or a portion of the same debt as that evidenced by such particular Security; and, for the purposes of this definition, any Security authenticated and delivered under Section 3.06 in lieu of a lost, destroyed, mutilated, or stolen Security shall be deemed to evidence the same debt as the lost, destroyed, mutilated, or stolen Security.
      “Record Date” means any date as of which the Holder of a Security will be determined for any purpose described herein, such determination to be made as of the close of business on such date by reference to the Security Register.
      “Redemption Date”, when used with respect to any Security to be redeemed, means the date fixed for such redemption by or pursuant to this Indenture.
      “Redemption Price”, when used with respect to any Security to be redeemed, means the price specified in the Security at which it is to be redeemed pursuant to this Indenture.
      “Repayment Date”, when used with respect to any Security to be repaid, means the date fixed for such repayment pursuant to such Security.
      “Repayment Price”, when used with respect to any Security to be repaid, means the price at which it is to be repaid pursuant to such Security.
      “Responsible Officer”, when used with respect to the Trustee, shall mean an officer or assistant officer of the Trustee in the Corporate Trust Office, having direct responsibility for the administration of this Indenture, and also, with respect to a particular corporate trust matter, any other officer to whom such matter is referred because of such officer’s knowledge of and familiarity with the particular subject.
      “Scheduled Maturity Date”, when used with respect to any Security, means the date specified in such Security as the date on which all outstanding principal and interest will be due and payable.
 

 

 

 

 

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      “Security” or “Securities” means any note or notes, bond or bonds, debenture or debentures, or any other evidences of indebtedness, as the case may be, of any series authenticated and delivered from time to time under this Indenture.
      “Security Register” shall have the meaning specified in Section 3.05.
      “Security Registrar” means the Person who maintains the Security Register, which Person shall be the Trustee unless and until a successor Security Registrar is appointed by the Company.
      “Senior Indebtedness” means all obligations or indebtedness of, or guaranteed or assumed by, the Company, whether or not represented by bonds, debentures notes or similar instruments, for borrowed money, and any amendments, renewals, extensions, modifications and refundings of any such obligations or indebtedness, unless in the instrument creating or evidencing any such indebtedness or obligations or pursuant to which the same is outstanding it is specifically stated, at or prior to the time the Company becomes liable in respect thereof, that any such obligation or indebtedness or such amendment, renewal, extension, modification and refunding thereof is not Senior Indebtedness.
      “Significant Subsidiary” means each Subsidiary which is a “significant subsidiary” as defined in Rule 1-02(w) of Regulation S-X, as amended or modified and in effect from time to time.
      “Special Record Date” for the payment of any Defaulted Interest means a date fixed by the Trustee pursuant to Section 3.07.
      “Specified Currency” has the meaning specified in Section 3.01.
      “Subsidiary” means any corporation, partnership or other entity of which at the time of determination the Company owns or controls directly or indirectly more than 50% of the shares of voting stock or equivalent interest.
      “Trade Payables” means accounts payable or any other Indebtedness or monetary obligations to trade creditors created or assumed in the ordinary course of business in connection with the obtaining of materials, finished products, inventory or services.
      “Trust Indenture Act” or “TIA” means the Trust Indenture Act of 1939, as in force as of the date hereof, except as provided in Section 9.05.
      “Trustee” means the party named as such above until a successor becomes such pursuant to this Indenture and thereafter means or includes each party who is then a trustee hereunder, and if at any time there is more than one such party, “Trustee” as used with respect to the Securities of any series means the Trustee with respect to Securities of that series. If Trustees with respect to different series of Securities are trustees under this Indenture, nothing herein shall constitute the Trustees co-trustees of the same trust, and each Trustee shall be the trustee of a trust separate and apart from any trust administered by any other Trustee with respect to a different series of Securities.
      “U.S. Government Obligations” means (i) securities that are direct obligations of the United States of America, the payment of which is unconditionally guaranteed by the full faith and credit of the United States of America and (ii) securities that are obligations of a Person controlled or supervised by and acting as an agency or instrumentality of the United States of America, the payment of which is unconditionally guaranteed by the full faith and credit of the United States of America, and also includes depository receipts issued by a bank or trust company as custodian with respect to any of the securities described in the preceding clauses (i) and (ii), and any payment of interest or principal payable under any of the securities described in the preceding clauses (i) and (ii) that is held by such custodian for the account of the 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, or from any amount received by the custodian in respect of such securities, or from any specific payment of interest or principal payable under the securities evidenced by such depository receipt.
      “Voting Stock”, as applied to the stock of any corporation, means stock of any class or classes (however designated), the outstanding shares of which have, by the terms thereof, ordinary voting power to elect a majority of
 

 

 

 

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 the members of the board of directors (or other governing body) of such corporation, other than stock having such power only by reason of the happening of a contingency.
      Section 1.02 Officers’ Certificates and Opinions. Every Officers’ Certificate, Opinion of Counsel, and other certificate or opinion to be delivered to the Trustee under this Indenture with respect to any action to be taken by the Trustee (except for the Officers’ Certificate required by Section 10.04) shall include the following:
  (a) a statement that each individual signing such certificate or opinion has read all covenants and conditions of this Indenture relating to such proposed action, including 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 or she has made such examination or investigation as is necessary to enable him or her to express an informed opinion as to whether or not such covenant or condition has been complied with; and
  (d) a statement as to whether, in the opinion of each such individual, such condition or covenant has been complied with.
      Section 1.03 Form of Documents Delivered to Trustee. In any case where several matters are required to be certified by, or covered by an opinion of, any specified Person, it is not necessary that all such matters be certified by, or covered by the opinion of, only one such Person, or that they be so certified or covered by only one document, but one such Person may certify or give an opinion with respect to some matters and one or more other such Persons as to the 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 a certificate or opinion of, or representations by, legal counsel, unless such officer knows that any such certificate, opinion, or representation is erroneous. Any opinion of counsel for the Company 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, unless such counsel knows that any such certificate, opinion, or representation is erroneous.
      Where any Person is required to make, give, or execute two or more applications, requests, consents, certificates, statements, opinions, or other instruments under this Indenture, such instruments may, but need not, be consolidated and form a single instrument.
      Section 1.04 Acts of Securityholders.
  (a) Any request, demand, authorization, direction, notice, consent, waiver, or other action provided by this Indenture to be given or taken by Securityholders may be embodied in and evidenced by one or more instruments of substantially similar tenor signed by such Securityholders in person or by an agent duly appointed in writing; and, except as herein otherwise expressly provided, such action shall become effective when such instrument or instruments are delivered to the Trustee and (if expressly required by the applicable terms of this Indenture) to the Company. If any Securities are denominated in coin or currency other than that of the United States, then for the purposes of determining whether the Holders of the requisite principal amount of Securities have taken any action as herein described, the principal amount of such Securities shall be deemed to be that amount of United States dollars that could be obtained for such principal amount on the basis of the spot rate of exchange into United States dollars for the currency in which such Securities are denominated (as evidenced to the Trustee by a certificate provided by a financial institution, selected by the Company, that maintains an active trade in the currency in question, acting as conversion agent) as of the date the taking of such action by the Holders of such requisite principal amount is evidenced to the Trustee as provided in the immediately preceding sentence. Such instrument or instruments (and the action embodied therein and evidenced thereby) are herein sometimes referred to as the  “Act ” of the Securityholders signing such instrument or instruments. Proof of execution of any such instrument or of a writing appointing any such agent shall be sufficient for any purpose of this Indenture and (subject to Section 6.01) conclusive in favor of the Trustee and the Company, if made in the manner provided in this Section.
 

 

 

 

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  (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 to such execution or by the certificate of any 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 an officer of a corporation or a member of a partnership, on behalf of such corporation or partnership, such certificate or affidavit shall also constitute sufficient proof of his 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 ownership of Securities shall for all purposes be determined by reference to the Security Register, as such register shall exist as of the applicable date.
  (d) If the Company shall solicit from the Holders any request, demand, authorization, direction, notice, consent, waiver or other action, the Company may, at its option, by 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 action, but the Company shall have no obligation to do so. If such Record Date is fixed, such request, demand, authorization, direction, notice, consent, waiver or other action 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 purpose of determining whether Holders of the requisite proportion of Securities Outstanding have authorized or agreed or consented to such request, demand, authorization, direction, notice, consent, waiver or other action, and for that purpose the Securities Outstanding 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 six months after such Record Date.
  (e) Any request, demand, authorization, direction, notice, consent, waiver or other action by the Holder of any Security shall bind each subsequent Holder of such Security, and each Holder of any Security issued upon the registration of transfer thereof or in exchange therefor or in lieu thereof, with respect to anything done or suffered to be done by the Trustee or the Company in reliance upon such action, whether or not notation of such action is made upon such Security.
      Section 1.05 Notices, etc., to Trustee and Company. Any request, order, authorization, direction, consent, waiver, or other action to be taken by the Trustee, the Company, or the Securityholders hereunder (including any Authentication Order), and any notice to be given to the Trustee or the Company with respect to any action taken or to be taken by the Trustee, the Company, or the Securityholders hereunder, shall be sufficient if made in writing and
  (a) (if to be furnished or delivered to or filed with the Trustee by the Company or any Securityholder) delivered to the Trustee at its Corporate Trust Office, Attention: [ ], or
      (b) (if to be furnished or delivered to the Company by the Trustee or any Securityholder, and except as otherwise provided in Section 5.01(d) and, in the case of a request for repayment, except as specified in the Security carrying the right to repayment) mailed to the Company, first-class postage prepaid, at its principal office (as specified in the first paragraph of this instrument), Attention: [ ], or at any other address hereafter furnished in writing by the Company to the Trustee.
      Section 1.06 Notice To Securityholders; Waiver. Where this Indenture or any Security provides for notice to Securityholders of any event, such notice shall be sufficiently given (unless otherwise expressly provided herein or in such Security) if in writing and mailed, first-class postage prepaid, to each Securityholder affected by such event, at his or her address as it appears in the Security Register as of the applicable Record Date, not later than the latest date or earlier than the earliest date prescribed by this Indenture or such Security for the giving of such notice. In any case where notice to Securityholders is given by mail, neither the failure to mail such notice nor any defect in any notice so mailed to any particular Securityholder shall affect the sufficiency of such notice with respect to other Securityholders. Where this Indenture or any Security 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 Securityholders 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.
      In case, by reason of the suspension of regular mail service as a result of a strike, work stoppage or otherwise, it shall be impractical to mail notice of any event to any Securityholder when such notice is required to be
 

 

 

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 given pursuant to any provision of this Indenture or the applicable Security, then any method of notification as shall be satisfactory to the Trustee and the Company shall be deemed to be sufficient for the giving of such notice.
      Section 1.07 Conflict with Trust Indenture Act. If any provision hereof limits, qualifies or conflicts with another provision hereof which is required to be included in this Indenture by any of the provisions of the TIA, such required provision shall control.
      Section 1.08 Effect of Headings and Table of Contents. The Article and Section headings herein and the Table of Contents hereof are for convenience only and shall not affect the construction of any provision of this Indenture.
      Section 1.09 Successors and Assigns. All covenants and agreements in this Indenture by the Company shall bind its successors and assigns, whether so expressed or not.
      Section 1.10 Separability Clause. In case any provision in this Indenture or in the Securities 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.
      Section 1.11 Benefits of Indenture. Nothing in this Indenture or in any Securities, express or implied, shall give to any Person, other than the parties hereto, their successors hereunder, the Authenticating Agent, the Security Registrar, any Paying Agent, and the Holders of Securities (or such of them as may be affected thereby), any benefit or any legal or equitable right, remedy or claim under this Indenture.
      Section 1.12 Governing Law. This Indenture shall be governed by and construed in accordance with the laws of the State of New York.
      Section 1.13 Counterparts. This instrument may be executed in any number of counterparts, each of which when so executed shall be deemed to be an original, but all of which shall together constitute but one and the same instrument.
      Section 1.14 Judgment Currency. The Company agrees, to the fullest extent that it may effectively do so under applicable law, that (a) if for the purpose of obtaining judgment in any court with respect to the Securities of any series it is necessary to convert the sum due in respect of the principal, premium, if any, or interest, if any, payable with respect to such Securities into a currency in which a judgment can be rendered (the “ Judgment Currency ”), the rate of exchange from the currency in which payments under such Securities is payable (the “ Required Currency ”) into the Judgment Currency shall be the highest bid quotation (assuming European-style quotation —  i.e. , Required Currency per Judgment Currency) received by the Company from three recognized foreign exchange dealers in the City of New York for the purchase of the aggregate amount of the judgment (as denominated in the Judgment Currency) on the New York Business Day preceding the date on which a final unappealable judgment is rendered, for settlement on such payment date, and at which the applicable dealer timely commits to execute a contract, and (b) the Company’s obligations under this Indenture to make payments in the Required Currency (i) shall not be discharged or satisfied by any tender, or by any recovery pursuant to any judgment (whether or not entered in accordance with the preceding clause (a)), in any currency other than the Required Currency, except to the extent that such tender or recovery shall result in the actual receipt by the judgment creditor of the full amount of the Required Currency expressed to be payable in respect of such payments, (ii) shall be enforceable as an alternative or additional cause of action for the purpose of recovering in the Required Currency the amount, if any, by which such actual receipt shall fall short of the full amount of the Required Currency so expressed to be payable, and (iii) shall not be affected by judgment being obtained for any other sum due under this Indenture.
      Section 1.15 Legal Holidays. In any case where any Interest Payment Date, Redemption Date, Repayment Date or Maturity of any Security shall not be a New York Business Day at any Place of Payment, then (notwithstanding any other provision of this Indenture or of the Securities) payment of interest or principal (and premium, 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 at Maturity,  provided that no interest shall accrue for the period from and after such Interest Payment Date, Redemption Date, Repayment Date or Maturity, as the case may be.
 

 

 

 

 

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 ARTICLE II
  SECURITY FORMS
      Section 2.01 Forms Generally. The Securities of each series shall have such appropriate insertions, omissions, substitutions and other variations as are required or permitted by this Indenture and may have such letters, numbers or other marks of identification and such legends or endorsements placed thereon, 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. 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 definitive Securities, if any, shall be printed, lithographed or engraved or produced by any combination of these methods on steel engraved borders or may be produced in any other manner permitted by the rules of any securities exchange, all as determined by the officers executing such Securities, as evidenced by their execution of such Securities.
      Section 2.02 Forms of Securities. Each Security shall be in one of the forms approved from time to time by or pursuant to any Board Resolution, or established in one or more indentures supplemental hereto. Prior to the delivery to the Trustee for authentication of any Security in any form approved by or pursuant to a Board Resolution, the Company shall deliver to the Trustee a copy of such Board Resolution, together with a true and correct copy of the form of Security which has been approved thereby, or, if a Board Resolution authorizes a specific officer or officers to approve a form of Security, together with a certificate of such officer or officers approving the form of Security attached thereto,  provided ,  however , that with respect to all Securities issued pursuant to the same Board Resolution, the required copy of such Board Resolution, together with the appropriate attachment, need be delivered only once. Any form of Security approved by or pursuant to a Board Resolution must be acceptable as to form to the Trustee, such acceptance to be evidenced by the Trustee’s authentication of Securities in that form or by a certificate signed by a Responsible Officer of the Trustee and delivered to the Company.
      Section 2.03 Securities in Global Form. If Securities of a series are issuable in whole or in part in global form, the global security representing such Securities may provide that it shall represent the aggregate amount of Outstanding Securities from time to time endorsed thereon and may also provide that the aggregate amount of Outstanding Securities represented thereby may from time to time be reduced to reflect exchanges or increased to reflect the issuance of additional Securities. 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 in such manner and by such Person or Persons as shall be specified therein or in the Authentication Order delivered to the Trustee pursuant to Section 3.03 hereof.
      Section 2.04 Form of Trustee’s Certificate of Authentication. The form of Trustee’s Certificate of Authentication for any Security issued pursuant to this Indenture shall be substantially as follows:
 TRUSTEE’S CERTIFICATE OF AUTHENTICATION
      This is one of the Securities of the series designated therein referred to in the within-mentioned Indenture.
 [ ], as Trustee,
 By:
    Authorized Officer:
 ARTICLE III
  THE SECURITIES
      Section 3.01 General Title; General Limitations; Issuable in Series; Terms of Particular Series.
 

 

 

 

 

 

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  (a) The aggregate principal amount of Securities that may be authenticated, delivered, and Outstanding at any time under this Indenture is not limited.
  (b) The Securities may be issued in one or more series in such aggregate principal amount as may from time to time be authorized by the Board of Directors. All Securities of a series issued under this Indenture shall in all respects be equally and ratably entitled to the benefits hereof, without preference, priority, or distinction on account of the actual time of the authentication and delivery or Scheduled Maturity Date thereof.
  (c) Each series of Securities shall be created either by or pursuant to one or more Board Resolutions, by an Officers’ Certificate or by one or more indentures supplemental hereto. Any such Board Resolution or supplemental indenture (or, in the case of a series of Securities created pursuant to a Board Resolution, any officer or officers authorized by such Board Resolution) shall establish the terms of any such series of Securities, including the following (as and to such extent as may be applicable):
  (1) the title of such series;
  (2) the limit, if any, upon the aggregate principal amount or issue price of the Securities of such series;
  (3) the issue date or issue dates of the Securities of such series;
  (4) the Scheduled Maturity Date of the Securities of such series;
  (5) the place or places where the principal, premium, if any, interest, if any, and additional amounts, if any, payable with respect to the Securities of such series shall be payable;
  (6) whether the Securities of such series will be issued at par or at a premium over or a discount from their face amount;
  (7) the rate or rates (which may be fixed or variable) at which the Securities of such series shall bear interest, if any, and, if applicable, the method by which such rate or rates may be determined;
  (8) the date or dates (or the method by which such date or dates may be determined) from which interest, if any, shall accrue, and the Interest Payment Dates on which such interest shall be payable;
  (9) the rights, if any, to defer payments of interest on the Securities by extending the interest payment periods and the duration of such extension;
  (10) the period or periods within which, the Redemption Price(s) or Repayment Price(s) at which, and any other terms and conditions upon which the Securities of such series may be redeemed or repaid, in whole or in part, by the Company;
  (11) the obligation, if any, of the Company to redeem, repay, or purchase any of the Securities of such series pursuant to any sinking fund, mandatory redemption, purchase obligation, or analogous provision at the option of a Holder thereof, and the period or periods within which, the Redemption Price(s) or Repayment Price(s) or other price or prices at which, and any other terms and conditions upon which the Securities of such series shall be redeemed, repaid, or purchased, in whole or in part, pursuant to such obligation;
  (12) the issuance of the Securities of such series in whole or in part in global form and, if so, the identity of the Depositary for such global security and the terms and conditions, if any, upon which interests in the Securities represented by such global security may be exchanged, in whole or in part, for the individual Securities represented thereby (if other than as provided in Section 3.05);
  (13) whether such securities are subordinated securities and if so, the provisions for such subordination;
  (14) the denominations in which the Securities of such series will be issued (which may be any denomination as set forth in the terms of such Securities) if other than U.S. $1,000 or an integral multiple
 

 

 

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 thereof;
  (15) whether and under what circumstances additional amounts on the Securities of such series shall be payable in respect of any taxes, assessments, or other governmental charges withheld or deducted and, if so, whether the Company will have the option to redeem such Securities rather than pay such additional amounts;
  (16) the basis upon which interest shall be calculated;
  (17) if the Securities of such series are to be issuable in definitive form (whether upon original issue or upon exchange of a temporary Security for a definitive Security of such series) only upon receipt of certain certificates or other documents or upon satisfaction of other conditions, then the form and terms of such certificates, documents, and/or conditions;
  (18) the exchange or conversion of the Securities of that series, whether or not at the option of the Holders thereof, for or into new Securities of a different series or for or into any other securities which may include shares of Capital Stock of the Company or any Subsidiary of the Company or securities directly or indirectly convertible into or exchangeable for any such shares or securities of entities unaffiliated with the Company or any Subsidiary of the Company;
  (19) if other than U.S. dollars, the foreign or composite currency or currencies (each such currency a “Specified Currency ”) in which the Securities of such series shall be denominated and in which payments of principal, premium, if any, interest, if any, or additional amounts, if any, payable with respect to such Securities shall or may be payable;
  (20) if the principal, premium, if any, interest, if any, or additional amounts, if any, payable with respect to the Securities of such series are to be payable in any currency other than that in which the Securities are stated to be payable, whether at the election of the Company or of a Holder thereof, the period or periods within which, and the terms and conditions upon which, such election may be made;
  (21) if the amount of any payment of principal, premium, if any, interest, if any, or other sum payable with respect to the Securities of such series may be determined by reference to the relative value of one or more Specified Currencies, commodities, securities, or instruments, the level of one or more financial or non-financial indices, or any other designated factors or formulas, the manner in which such amounts shall be determined;
  (22) the exchange of Securities of such series, at the option of the Holders thereof, for other Securities of the same series of the same aggregate principal amount of a different authorized kind or different authorized denomination or denominations, or both;
  (23) the appointment by the Trustee of an Authenticating Agent in one or more places other than the Corporate Trust Office of the Trustee, with power to act on behalf of the Trustee, and subject to its direction, in the authentication and delivery of the Securities of such series;
  (24) any trustees, depositaries, paying agents, transfer agents, exchange agents, conversion agents, registrars, or other agents with respect to the Securities of such series if other than the Trustee, Paying Agent and Security Registrar named herein;
  (25) the portion of the principal amount of Securities of such series, if other than the principal amount thereof, that shall be payable upon declaration of acceleration of the Maturity thereof pursuant to Section 5.02 or provable in bankruptcy pursuant to Section 5.04;
  (26) any Event of Default with respect to the Securities of such series, if not set forth herein, or any modification of any Event of Default set forth herein with respect to such series;
  (27) any covenant solely for the benefit of the Securities of such series;
 

 

 

 

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  (28) the inapplicability of Section 4.02 and Section 4.03 of this Indenture to the Securities of such series and if Section 4.03 is applicable, the covenants subject to Covenant Defeasance under Section 4.03; and
  (29) any other terms of the securities of such series (which terms shall not be inconsistent with the provisions of this Indenture, but which may modify or delete any provision of this Indenture insofar as it applies to such series).
      If all of the Securities issuable by or pursuant to any Board Resolution are not to be issued at one time, it shall not be necessary to deliver the Officers’ Certificate and Opinion of Counsel required by Section 3.03 hereof at the time of issuance of each such Security, but such Officers’ Certificate and Opinion of Counsel shall be delivered at or before the time of issuance of the first such Security.
      If any series of Securities shall be established by action taken pursuant to any Board Resolution, the execution by the officer or officers authorized by such Board Resolution of an Authentication Order (as defined in Section 3.03 below) with respect to the first Security of such series to be issued, and the delivery of such Authentication Order to the Trustee at or before the time of issuance of the first Security of such series, shall constitute a sufficient record of such action. Except as otherwise permitted by Section 3.03, if all of the Securities of any such series are not to be issued at one time, the Company shall deliver an Authentication Order with respect to each subsequent issuance of Securities of such series, but such Authentication Orders may be executed by any authorized officer or officers of the Company, whether or not such officer or officers would have been authorized to establish such series pursuant to the aforementioned Board Resolution.
      Unless otherwise provided by or pursuant to the Board Resolution or supplemental indenture creating such series, (i) a series may be reopened for issuances of additional Securities of such series, and (ii) all Securities of the same series shall be substantially identical, except for the initial Interest Payment Date, issue price, initial interest accrual date and the amount of the first interest payment.
      The form of the Securities of each series shall be established in a supplemental indenture or by or pursuant to the Board Resolution creating such series. The Securities of each series shall be distinguished from the Securities of each other series in such manner as the Board of Directors or its authorized representative or representatives may determine.
      Unless otherwise provided with respect to Securities of a particular series, the Securities of any series may only be issuable in registered form, without coupons.
      Section 3.02 Denominations and Currency. The Securities of each series shall be issuable in such denominations and currency as shall be provided in the provisions of this Indenture or by or pursuant to the Board Resolution or supplemental indenture creating such series. In the absence of any such provisions with respect to the Securities of any series, the Securities of that series shall be issuable only in fully registered form in denominations of U.S. $1,000 and any integral multiple thereof.
      Section 3.03 Execution, Authentication and Delivery, and Dating. The Securities shall be executed on behalf of the Company by the president, any vice president, the treasurer or any assistant treasurer and attested by the secretary or any one of its assistant secretaries, under its corporate seal. The signature of any of these officers on the Securities may be manual or facsimile. The seal of the Company, if set forth thereon, may be in the form of a facsimile thereof and may be impressed, affixed, imprinted, or otherwise reproduced on the Securities. Typographical and other minor errors or defects in any such reproduction of the seal or any such signature shall not affect the validity or enforceability of any Security that has been duly authenticated and delivered by the Trustee.
      Unless otherwise provided in the form of Security for any series, all Securities shall be dated the date of their authentication.
      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.
 

 

 

 

 

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      At any time and from time to time after the execution and delivery of this Indenture, the Company may deliver Securities to the Trustee for authentication, together with a Company Order for authentication and delivery (such Order an “ Authentication Order ”) with respect to such Securities, and the Trustee shall, upon receipt of such Authentication Order, in accordance with procedures acceptable to the Trustee set forth in the Authentication Order, and subject to the provisions hereof, authenticate and deliver such Securities to such recipients as may be specified from time to time pursuant to such Authentication Order. The material terms of such Securities shall be determinable by reference to such Authentication Order and procedures. If provided for in such procedures, such Authentication Order may authorize authentication and delivery of such Securities pursuant to oral instructions from the Company or its duly authorized agent, which instructions shall be promptly confirmed in writing. 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 the provisions of Section 6.01 hereof) shall be fully protected in relying upon:
      (1) an executed supplemental indenture, if any;
      (2) an Officers’ Certificate, certifying as to the authorized form or forms and terms of such Securities; and
      (3) an Opinion of Counsel, stating that:
 (a) the form or forms and terms of such Securities have been established by and in conformity with the provisions of this Indenture;  provided  that if all such Securities are not to be issued at the same time, such Opinion of Counsel may state that such terms will be established in conformity with the provisions of this Indenture, subject to any conditions specified in such Opinion of Counsel; and
 (b) such Securities, when authenticated and delivered by the Trustee and issued by the Company in the manner and subject to any conditions specified in such Opinion of Counsel, will constitute valid and legally binding obligations of the Company, enforceable in accordance with their terms, subject to bankruptcy, insolvency, moratorium, reorganization, and other laws of general applicability relating to or affecting the enforcement of creditors’ rights and to general principles of equity;
 provided, however , that if all Securities issuable by or pursuant to a Board Resolution or supplemental indenture are not to be originally issued at one time, it shall not be necessary to deliver the Officers’ Certificate or Opinion of Counsel otherwise required pursuant to this paragraph at or prior to the time of authentication of each such Security if such documents are delivered at or prior to the time of authentication upon original issuance of the first such Security to be issued. After the original issuance of the first such Security to be issued, any separate request by the Company that the Trustee authenticate such Securities for original issuance will be deemed to be a certification by the Company that it is in compliance with all conditions precedent provided for in this Indenture relating to the authentication and delivery of such Securities.
      The Trustee shall not be required to authenticate such Securities if the issue thereof will adversely affect the Trustee’s own rights, duties, or immunities under the Securities and this Indenture.
      If the Company shall establish pursuant to Section 3.01 that Securities of a series may be issued in whole or in part in global form, then the Company shall execute, and the Trustee shall (in accordance with this Section 3.03 and the Authentication Order with respect to such series) authenticate and deliver, one or more Securities in global form that (i) shall represent and shall be denominated in an aggregate amount equal to the aggregate principal amount of the Outstanding Securities of such series to be represented by such one or more Securities in global form, (ii) shall be registered, in the name of the Depositary for such Security or Securities in global form, or in the name of a nominee of such Depositary, (iii) shall be delivered to such Depositary or pursuant to such Depositary’s instruction, and (iv) shall bear a legend substantially as follows: “Unless and until it is exchanged in whole or in part for Securities in certificated form, 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.” Each Depositary designated pursuant to Section 3.01 for a Security in global form must, at the time of its designation and at all times while it serves as Depositary, be a clearing agency registered under the Securities Exchange Act of 1934 and any other applicable statute or regulation.
 

 

 

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      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 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.
      Section 3.04 Temporary Securities. Pending the preparation of definitive Securities of any series, the Company may execute, and, upon receipt of the documents required by Sections 2.02, 3.01 and 3.03 hereof, together with an Authentication Order, the Trustee shall authenticate and deliver, temporary Securities of such series that are printed, lithographed, typewritten, mimeographed, or otherwise produced, in any authorized denomination, substantially of the tenor of the definitive Securities in lieu of which they are issued in registered form, without coupons, and with such appropriate insertions, omissions, substitutions, and other variations as the officers executing such Securities may determine, as evidenced by their execution of such Securities. In the case of Securities of any series for which a temporary Security may be issued in global form, such temporary global security shall represent all of the Outstanding Securities of such series and tenor.
      Except in the case of temporary Securities in global form, which shall be exchanged in accordance with the provisions thereof, if temporary Securities of any series are issued, the Company will cause definitive Securities of such series to be prepared without unreasonable delay. After the preparation of definitive Securities, the temporary Securities of such series shall be exchangeable, at the Corporate Trust Office of the Trustee, or at such other office or agency as may be maintained by the Company in a Place of Payment pursuant to Section 10.02 hereof, for definitive Securities of such series having identical terms and provisions, upon surrender of the temporary Securities of such series, at the Company’s own expense and without charge to the Holder; and upon surrender for cancellation of any one or more temporary Securities of any series, the Company shall execute and the Trustee shall authenticate and deliver in exchange therefor a like principal amount of definitive Securities of such series in authorized denominations containing identical terms and provisions. Unless otherwise specified as contemplated by Section 3.01 with respect to a temporary Security in global form, until so exchanged, the temporary Securities of such series shall in all respects be entitled to the same benefits under this Indenture as definitive Securities of such series.
      Section 3.05 Registration, Transfer and Exchange. With respect to the Securities of each series, the Trustee shall keep a register (herein sometimes referred to as the “ Security Register ”) which shall provide for the registration of Securities of such series, and for transfers of Securities of such series, in accordance with information to be provided to the Trustee by the Company, subject to such reasonable regulations as the Trustee may prescribe. Such register shall be in written form or in any other form capable of being converted into written form within a reasonable time. At all reasonable times the information contained in such register or registers shall be available for inspection at the Corporate Trust Office of the Trustee or at such other office or agency to be maintained by the Company pursuant to Section 10.02 hereof.
      Upon due presentation for registration of transfer of any Security of any series at the Corporate Trust Office of the Trustee or at any other office or agency maintained by the Company with respect to that series pursuant to Section 10.02 hereof, the Company shall execute, and the Trustee shall authenticate and deliver, in the name of the designated transferee or transferees, one or more new Securities of such series of any authorized denominations, of like aggregate principal amount, tenor, terms and Scheduled Maturity Date.
      Any other provision of this Section 3.05 notwithstanding, unless and until it is exchanged in whole or in part for the individual Securities represented thereby, in definitive form, a Security in global form 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.
      At the option of the Holder, Securities of any series may be exchanged for other Securities of such series of any authorized denominations, of like aggregate principal amount, tenor, terms and Scheduled Maturity Date, 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 Securityholder making the exchange is entitled to receive.
 

 

 

 

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      If at any time the Depositary for the Securities of a series represented by one or more Securities in global form 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 the Securities of such series shall no longer be eligible under Section 3.03 hereof, the Company, by Company Order, 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 ineligibility, the Company’s election pursuant to Section 3.01 that such Securities be represented by one or more Securities in global form shall no longer be effective with respect to the Securities of such series and the Company will execute, and the Trustee, upon receipt of an Authentication Order for the authentication and delivery of definitive Securities of such series, will authenticate and deliver Securities of such series in definitive form, in authorized denominations, in an aggregate principal amount, and of like terms and tenor, equal to the principal amount of the Security or Securities in global form representing such series, in exchange for such Security or Securities in global form.
      The Company may at any time and in its sole discretion and subject to the procedures of the Depositary determine that individual Securities of any series issued in global form shall no longer be represented by such Security or Securities in global form. In such event the Company will execute, and the Trustee, upon receipt of an Authentication Order for the authentication and delivery of definitive Securities of such series and of the same terms and tenor, will authenticate and deliver Securities of such series in definitive form, in authorized denominations, and in aggregate principal amount equal to the principal amount of the Security or Securities in global form representing such series in exchange for such Security or Securities in global form.
      If specified by the Company pursuant to Section 3.01 with respect to a series of Securities issued in global form, the Depositary for such series of Securities may surrender a Security in global form for such series of Securities in exchange in whole or in part for Securities of such series in definitive form and of like terms and tenor on such terms as are acceptable to the Company and such Depositary. Thereupon, the Company shall execute, and the Trustee upon receipt of an Authentication Order for the authentication and delivery of definitive Securities of such series, shall authenticate and deliver, without service charge:
 (a) to each Person specified by such Depositary, a new definitive Security or Securities of the same series and of the same tenor and terms, in authorized denominations, in aggregate principal amount equal to and in exchange for such Person’s beneficial interest in the Security in global form; and
 (b) to such Depositary, a new Security in global form in a denomination equal to the difference, if any, between the principal amount of the surrendered Security in global form and the aggregate principal amount of the definitive Securities delivered to Holders pursuant to clause (a) above.
      Upon the exchange of a Security in global form for Securities in definitive form, such Security in global form shall be canceled by the Trustee or an agent of the Company or the Trustee. Securities issued in definitive form in exchange for a Security in global form pursuant to this Section 3.05 shall be registered in such names and in such authorized denominations as the Depositary for such Security in global form, pursuant to instructions from its direct or indirect participants or otherwise, shall instruct the Trustee or an agent of the Company or the Trustee in writing. The Trustee or such agent shall deliver such Securities to or as directed by the Persons in whose names such Securities are so registered or to the Depositary.
      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.
      All Securities issued upon any registration of transfer or exchange of Securities shall be the valid obligations of the Company, evidencing the same debt, and entitled to the same benefits under this Indenture, as the Securities surrendered upon such transfer or exchange.
      Every Security presented or surrendered for registration of transfer, exchange, redemption or payment shall (if so required by the Company or the Trustee) 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.
 

 

 

 

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      Unless otherwise provided in the Security to be transferred or exchanged, no service charge shall be imposed for any registration of transfer or exchange of Securities, but the Company may (unless otherwise provided in such Security) require payment of a sum sufficient to cover any tax or other governmental charge that may be imposed in connection with any transfer or exchange of Securities, other than exchanges pursuant to Section 3.04, 3.06, 9.06 and 11.07 hereof not involving any transfer.
      The Company shall not be required to (i) issue, register the transfer of, or exchange any Security of any series during a period beginning at the opening of business 15 days before the day of the mailing of a notice of redemption of Securities of such series selected for redemption under Section 11.03 and ending at the close of business on the date of such mailing, or (ii) register the transfer of or exchange any Security so selected for redemption in whole or in part, except, in the case of any Security to be redeemed in part, the portion thereof not to be redeemed.
      Section 3.06 Mutilated, Destroyed, Lost and Stolen Securities. If (i) any mutilated Security is surrendered to the Trustee, or the Company and the Trustee receive evidence to their satisfaction of the destruction, loss or theft of any Security, and (ii) there is delivered to the Company and the Trustee such security or indemnity as may be required by them to save each of them harmless, then, in the absence of notice to the Company or the Trustee that such Security has been acquired by a bona fide purchaser, the Company may in its discretion execute and upon request of the Company the Trustee shall authenticate and deliver, in exchange for or in lieu of any such mutilated, destroyed, lost or stolen Security, a new Security of like tenor, terms, series, Scheduled Maturity Date, and principal amount, bearing a number not contemporaneously outstanding.
      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 new 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 new Security issued pursuant to this Section in lieu of any destroyed, lost or stolen Security shall constitute an original additional contractual obligation of the Company, whether or not the destroyed, lost or stolen Security 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 the same series duly issued hereunder.
      The provisions of this Section 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.
      Section 3.07 Payment of Interest; Interest Rights Preserved. Interest on any Security which is payable and is punctually paid or duly provided for on any Interest Payment Date shall, if so provided in such Security, be paid to the Person in whose name that Security (or one or more Predecessor Securities) is registered at the close of business on the applicable Record Date, notwithstanding any transfer or exchange of such Security subsequent to such Record Date and prior to such Interest Payment Date. (unless such Interest Payment Date is also the date of Maturity of such Security).
      Any interest on any Security which is payable, but is not punctually paid or duly provided for, on any Interest Payment Date (herein called “ Defaulted Interest ”) shall forthwith cease to be payable to the registered Holder on the applicable Record Date by virtue of his having been such Holder; and, except as hereinafter provided, such Defaulted Interest may be paid by the Company, at its election in each case, as provided in clause (a) or clause (b) below:
  (a) The Company may elect to make payment of any Defaulted Interest to the Persons in whose names any such Securities (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 such Security and the date of the proposed payment, and at the same time the Company shall deposit with the Trustee an amount of money equal to the aggregate amount proposed to be paid in respect of such Defaulted Interest or shall make arrangements satisfactory to the Trustee for such deposit prior to the date of the proposed payment, such
 

 

 

 

 

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 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 nor less than 10 days prior to the date of the proposed payment and not less than 10 days after the receipt by the Trustee of the notice of the proposed payment. The Trustee shall promptly notify the Company of such Special Record Date and, in the name and at the expense of the Company, shall cause notice of the proposed payment of such Defaulted Interest and the Special Record Date therefor to be mailed, first-class postage prepaid, to the Holder of each such Security at his address as it appears in the Security Register, not less than 10 days prior to such Special Record Date. Notice of the proposed payment of such Defaulted Interest and the Special Record Date therefor having been mailed as aforesaid, such Defaulted Interest shall be paid to the Persons in whose names such Securities (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 (b).
  (b) The Company may make payment of any Defaulted Interest 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.
      Interest on Securities of any series that bear interest may be paid by mailing a check to the address of the Person entitled thereto at such address as shall appear in the Securities Register for such series or by such other means as may be specified in the form of such Security.
      Subject to the foregoing provisions of this Section 3.07 and the provisions of Section 3.05 hereof, 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.
      Section 3.08 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 any Security is registered on the applicable Record Date(s) as the owner of such Security for the purpose of receiving payment of principal, premium, if any, interest, if any (subject to Sections 3.05 and 3.07 hereof), and any additional amounts payable with respect to such Security, and for all other purposes whatsoever, whether or not such Security be overdue, and neither the Company, the Trustee, nor any agent of the Company or the Trustee shall be affected by notice to the contrary.
      None of the Company, the Trustee, any Authenticating Agent, any Paying Agent, the Security Registrar, or any Co-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 Security in global form or for maintaining, supervising or reviewing any records relating to such beneficial ownership interests and each of them may act or refrain from acting without liability on any information relating to such records provided by the Depositary.
      Section 3.09 Cancellation. All Securities surrendered for payment, redemption, registration of transfer, exchange, or credit against a sinking or analogous fund shall, if surrendered to any Person other than the Trustee, be delivered to the Trustee and, if not already canceled, shall be promptly canceled 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 all Securities so delivered shall be promptly canceled by the Trustee. Acquisition of such Securities by the Company shall not operate as a redemption or satisfaction of the indebtedness represented by such Securities unless and until the same are delivered to the Trustee for cancellation. No Security shall be authenticated in lieu of or in exchange for any Securities canceled as provided in this Section, except as expressly permitted by this Indenture. The Trustee shall dispose of all canceled Securities in accordance with its customary procedures and deliver a certificate of such disposition to the Company.
      Section 3.10 Computation of Interest. Unless otherwise provided as contemplated in Section 3.01, interest on the Securities shall be calculated on the basis of a 360-day year of twelve 30-day months.
 

 

 

 

 

 

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 ARTICLE IV
  SATISFACTION AND DISCHARGE
      Section 4.01 Satisfaction and Discharge of Indenture. This Indenture shall cease to be of further effect with respect to any series of Securities (except as to any surviving rights of conversion or transfer or exchange of Securities of such series expressly provided for herein or in the form of Security for such series and obligations described as surviving below), and the Trustee, on demand of and 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 that 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 3.06, and (B) Securities of such series for whose payment money has theretofore been deposited in trust or segregated and held in trust by the Company and thereafter repaid to the Company or discharged from such trust, as provided in Section 4.07) have been delivered to the Trustee canceled or for cancellation; or
   (ii) all such Securities of that series not theretofore delivered to the Trustee canceled or for cancellation
     (A) have become due and payable, or
     (B) will, in accordance with their Scheduled Maturity Date, become due and payable within one year,
   or
     (C) 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, in any of the cases described in subparagraphs (A), (B), or (C) above, the Company has irrevocably deposited or caused to be deposited with the Trustee, as trust funds in trust for the purpose, (x) an amount in money sufficient, (y) U.S. Government Obligations or Equivalent Government Securities which through the payment of interest and principal in respect thereof in accordance with their terms will provide, not later than one day before the due date of any payment, money sufficient, or (z) a combination of (x) and (y) sufficient, in the opinion with respect to (y) and (z) of a nationally recognized firm of independent public accountants expressed in a written certification thereof delivered to the Trustee, to pay and discharge the entire indebtedness on such Securities with respect to principal, 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 Scheduled Maturity Date or Redemption Date, as the case may be; provided, however , that if such U.S. Government Obligations or Equivalent Government Securities are callable or redeemable at the option of the issuer thereof, the amount of such money, U.S. Government Obligations, and Equivalent Government Securities deposited with the Trustee must be sufficient to pay and discharge the entire indebtedness referred to above if such issuer elects to exercise such call or redemption provisions at any time prior to the Scheduled Maturity Date or Redemption Date, as the case may be, and the Company, but not the Trustee, shall be responsible for monitoring any such call or redemption provision; and
  (b) the Company has paid or caused to be paid all other sums payable hereunder by the Company with respect to the Securities of such series; 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 with respect to the Securities of such series have been complied with.
      Notwithstanding the satisfaction and discharge of this Indenture with respect to any series of Securities, the obligations of the Company under paragraph (a) of this Section 4.01 and its obligations to the Trustee with respect to that series under Section 6.07 shall survive, and the obligations of the Trustee under Sections 4.05, 4.07 and 10.03 shall survive.
      Section 4.02 Discharge and Defeasance. The provisions of this Section and Section 4.04 (insofar as relating to this Section) shall apply to the Securities of each series unless specifically otherwise provided in a Board
 

 

 

 

 

 

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 Resolution or indenture supplemental hereto provided pursuant to Section 3.01. In addition to discharge of this Indenture pursuant to Section 4.01, in the case of any series of Securities with respect to which the exact amount described in subparagraph (a) of Section 4.04 can be determined at the time of making the deposit referred to in such subparagraph (a), the Company shall be deemed to have paid and discharged the entire indebtedness on all the Securities of such a series as provided in this Section on and after the date the conditions set forth in Section 4.04 are satisfied, and the provisions of this Indenture with respect to the Securities of such series shall no longer be in effect (except as to (i) rights of registration of transfer and exchange of Securities of such series, (ii) substitution of mutilated, destroyed, lost or stolen Securities of such series, (iii) rights of Holders of Securities of such series to receive, solely from the trust fund described in subparagraph (a) of Section 4.04, payments of principal thereof, premium, if any, and interest, if any, thereon upon the original stated due dates or upon the Redemption Dates therefor (but not upon acceleration), and remaining rights of the Holders of Securities of such series to receive mandatory sinking fund payments, if any, (iv) the rights, obligations, duties and immunities of the Trustee hereunder, (v) this Section 4.02, Section 4.07, Section 10.02 and Section 10.03 and (vi) the rights of the Holders of Securities of such series as beneficiaries hereof with respect to the property so deposited with the Trustee payable to all or any of them) (hereinafter called “ Defeasance ”), and the Trustee at the cost and expense of the Company, shall execute proper instruments acknowledging the same.
      Section 4.03 Covenant Defeasance. The provisions of this Section and Section 4.04 (insofar as relating to this Section) shall apply to the Securities of each series unless specifically otherwise provided in a Board Resolution or indenture supplemental hereto provided pursuant to Section 3.01. In the case of any series of Securities with respect to which the exact amount described in subparagraph (a) of Section 4.04 can be determined at the time of making the deposit referred to in such subparagraph (a), (i) the Company shall be released from its obligations under any covenants specified in or pursuant to Section 3.01 as being subject to Covenant Defeasance with respect to such series (except as to (a) rights of registration of transfer and exchange of Securities of such series and rights under Section 4.07, Section 10.02 and Section 10.03, (b) substitution of mutilated, destroyed, lost or stolen Securities of such series, (c) rights of Holders of Securities of such series to receive, from the Company pursuant to Section 10.01, payments of principal thereof and interest, if any, thereon upon the original stated due dates or upon the Redemption Dates therefor (but not upon acceleration), and remaining rights of the Holders of Securities of such series to receive mandatory sinking fund payments, if any, (d) the rights, obligations, duties and immunities of the Trustee hereunder and (e) the rights of the Holders of Securities of such series as beneficiaries hereof with respect to the property so deposited with the Trustee payable to all or any of them), and (ii) the occurrence of any event specified in Section 5.01(d) (with respect to any of the covenants specified in or pursuant to Section 3.01 as being subject to Covenant Defeasance with respect to such series) shall be deemed not to be or result in a default or an Event of Default, in each case with respect to the Outstanding Securities of such series as provided in this Section on and after the date the conditions set forth in Section 4.04 are satisfied (hereinafter called “ Covenant Defeasance ”), and the Trustee at the cost and expense of the Company, shall execute proper instruments acknowledging the same. For this purpose, such Covenant Defeasance means that 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 (to the extent so specified in the case of Section 5.01(d)), whether directly or indirectly by reason of any reference elsewhere herein to any such covenant or by reason of any reference in any such covenant to any other provision herein or in any other document, but the remainder of this Indenture and the Securities of such series shall be unaffected thereby.
      Section 4.04 Conditions To Defeasance Or Covenant Defeasance. The following shall be the conditions to application of either Section 4.02 or Section 4.03 to the Outstanding Securities:
  (a) with reference to Section 4.02 or Section 4.03, the Company has irrevocably deposited or caused to be irrevocably deposited with the Trustee as funds in trust, specifically pledged as security for, and dedicated solely to, the benefit of the Holders of Securities of such series (i) money in an amount, or (ii) U.S. Government Obligations or Equivalent Government Securities which through the payment of interest and principal in respect thereof in accordance with their terms will provide, not later than one day before the due date of any payment, money in an amount, or (iii) a combination of (i) and (ii), sufficient, in the opinion (with respect to (ii) and (iii)) of a nationally recognized firm of independent public accountants expressed in a written certification thereof delivered to the Trustee, to pay and discharge each installment of principal (including mandatory sinking fund payments) of, premium, if any, and interest on, the Outstanding Securities of such series on the dates such installments of interest, premium or principal are due, including upon redemption; provided, however, that if such U.S. Government Obligations and Equivalent Government Securities are callable or redeemable at the option of the issuer thereof, the
 

 

 

 

 

 

 

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  amount of such money, U.S. Government Obligations, and/or Equivalent Government Securities deposited with the Trustee must be sufficient to pay and discharge the entire indebtedness referred to above if the issuer of any such U.S. Government Obligations or Equivalent Government Securities elects to exercise such call or redemption provisions at any time prior to the Scheduled Maturity Date or Redemption Date of such Securities, as the case may be. The Company, but not the Trustee, shall be responsible for monitoring any such call or redemption provision.
  (b) in the case of Defeasance under Section 4.02, the Company has delivered to the Trustee an Opinion of Counsel based on the fact that (x) the Company has received from, or there has been published by, the Internal Revenue Service a ruling or (y) since the date hereof, there has been a change in the applicable United States federal income tax law, in either case to the effect that, and such opinion shall confirm that, the Holders of the Securities of such series will not recognize income, gain or loss for federal income tax purposes as a result of such deposit, defeasance and discharge and will be subject to federal income tax on the same amount and in the same manner and at the same times, as would have been the case if such deposit, Defeasance and discharge had not occurred;
  (c) in the case of Covenant Defeasance under Section 4.03, the Company has delivered to the Trustee an Opinion of Counsel to the effect that, and such opinion shall confirm that, the Holders of the Securities of such series will not recognize income, gain or loss for federal income tax purposes as a result of such deposit and Covenant Defeasance and will be subject to federal income tax on the same amount and in the same manner and at the same times, as would have been the case if such deposit and Covenant Defeasance had not occurred;
  (d) no Event of Default or event which, with notice or lapse of time or both, would become an Event of Default with respect to the Securities of such series shall have occurred and be continuing on the date of such deposit, after giving effect to such deposit or, in the case of a Defeasance under Section 4.02, no Event of Default specified in Section 5.01(e) or Section 5.01(f) shall have occurred, at any time during the period ending on the 91st day after the date of such deposit or, if longer, ending on the day following the expiration of the longest preference period applicable to the Company in respect of such deposit (it being understood that this condition shall not be deemed satisfied until the expiration of such period);
  (e) such Defeasance or Covenant Defeasance will not cause the Trustee to have a conflicting interest within the meaning of the TIA, assuming all Securities of a series were in default within the meaning of the TIA;
  (f) such Defeasance or Covenant Defeasance will not result in a breach or violation of, or constitute a default under, any agreement or instrument to which the Company is a party or by which it is bound;
  (g) such Defeasance or Covenant Defeasance will not result in the trust arising from such deposit constituting an investment company within the meaning of the Investment Company Act of 1940, as amended, unless the trust is registered under such Act or exempt from registration;
  (h) if the Securities of such series are to be redeemed prior to their Stated Maturity Date (other than from mandatory sinking fund payments or analogous payments), notice of such redemption shall have been duly given pursuant to this Indenture or provision therefor satisfactory to the Trustee shall have been made; and
  (i) the Company shall have delivered to the Trustee an Officers’ Certificate and an Opinion of Counsel, each stating that all conditions precedent provided for herein relating to such Defeasance or Covenant Defeasance, as the case may be, have been complied with.
      Section 4.05 Application of Trust Money; Excess Funds. All money and U.S. Government Obligations or Equivalent Government Securities (including the proceeds thereof) deposited with the Trustee pursuant to Section 4.01 or Section 4.04 hereof shall be held in trust and applied by it, in accordance with the provisions of this Indenture and of the series of Securities in respect of which it was deposited, 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, 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.
      The Company will pay and indemnify the Trustee against any tax, fee or other charge imposed on or assessed against the cash or U.S. Government Obligations or Equivalent Government Securities deposited pursuant
 

 

 

 

 

 

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 to Section 4.01 or Section 4.04 hereof or the principal and interest received in respect thereof other than any such tax, fee or other charge which by law is for the account of the Holders of the Outstanding Securities.
      Anything in this Article 4 to the contrary notwithstanding, the Trustee shall deliver or pay to the Company from time to time upon Company Request any money or U.S. Governmental Obligations or Equivalent Government Securities held by it as provided in Section 4.01 or Section 4.04 which, in the opinion of a nationally recognized investment bank, appraisal firm or firm of independent public accountants, expressed in a written certification thereof delivered to the Trustee, (which may be the opinion delivered under Section 4.01 or Section 4.04, as applicable), are in excess of the amount thereof that would then be required to be deposited to effect an equivalent satisfaction and discharge, Covenant Defeasance or Defeasance of the applicable series.
      Section 4.06 Paying Agent to Repay Moneys Held. Upon the satisfaction and discharge of this Indenture, all moneys then held by any Paying Agent of the Securities (other than the Trustee) shall, upon demand of the Company, be repaid to it or paid to the Trustee, and thereupon such Paying Agent shall be released from all further liability with respect to such moneys.
      Section 4.07 Return of Unclaimed Amounts. Any amounts deposited with or paid to the Trustee or any Paying Agent or then held by the Company, in trust for payment of the principal of, premium, if any, or interest, if any, on the Securities and not applied but remaining unclaimed by the Holders of such Securities for two years after the date upon which the principal of, premium, if any, or interest, if any, on such Securities, as the case may be, shall have become due and payable, shall be repaid to the Company by the Trustee on Company Request or (if then held by the Company) shall be discharged from such trust; and the Holder of any of such Securities shall thereafter look only to the Company for any payment which such Holder may be entitled to collect (until such time as such unclaimed amounts shall escheat, if at all, to the State of New York) 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. Notwithstanding the foregoing, the Trustee or Paying Agent, before being required to make any such repayment, may at the expense of the Company cause to be published once a week for two successive weeks (in each case on any day of the week) in a newspaper printed in the English language and customarily published at least once a day at least five days in each calendar week and of general circulation in the Borough of Manhattan, in the City and State of New York, a notice that said amounts have not been so applied and that after a date named therein any unclaimed balance of said amounts then remaining will be promptly returned to the Company.
 ARTICLE V
 REMEDIES
      Section 5.01 Events of Default. “Event of Default”, wherever used herein, means with respect to any series of Securities any one of the following events (whatever the reason for such Event of Default and whether it shall be voluntary or involuntary or be effected by operation of law or pursuant to any judgment, decree or order of any court or any order, rule or regulation of any administrative or governmental body), unless such event is either inapplicable to a particular series or it is specifically deleted or modified in the manner contemplated by Section 3.01:
  (a) default in the payment of any interest on any Security of such series when it becomes due and payable, and continuance of such default for a period of 30 days; or
  (b) default in the payment of the principal amount of (or premium, if any, on) any Security of such series as and when the same shall become due, either at Maturity, upon redemption, by declaration, or otherwise; or
  (c) default in the payment of any sinking or purchase fund or analogous obligation when the same becomes due by the terms of the Securities of such series and continuance of such default for a period of 30 days; or
  (d) default in the performance or breach of any covenant or warranty of the Company in this Indenture in respect of the Securities of such series (other than a covenant or warranty in respect of the Securities of such series a default in the performance of which or the breach of which is elsewhere in this Section specifically dealt with), and continuance of such default or breach for a period of 60 days 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 the
 

 

 

 

 

 

 

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 principal amount of the Outstanding Securities of such 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 an order for relief against the Company under the Federal Bankruptcy Act by a court having jurisdiction in the premises or a decree or order by a court having jurisdiction in the premises adjudging the Company a bankrupt or insolvent under any other applicable Federal or State law, or the entry of a decree or order approving as properly filed a petition seeking reorganization, arrangement, adjustment or composition of or in respect of the Company under the Federal Bankruptcy Code or any other applicable Federal or State law, or appointing a receiver, liquidator, assignee, trustee, sequestrator (or other similar official) of the Company or of any substantial part of its property, or ordering the winding up or liquidation of its affairs, and the continuance of any such decree or order unstayed and in effect for a period of 90 consecutive days; or
  (f) the consent by the Company 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 the Federal Bankruptcy Code or any other applicable Federal or State law, 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 an 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 the taking of corporate action by the Company in furtherance of any such action; or
  (g) any other Event of Default provided for with respect to the Securities of such series in accordance with Section 3.01. A default under any indebtedness of the Company other than the Securities will not constitute an Event of Default under this Indenture, and a default under one series of Securities will not constitute a default under any other series of Securities. The Trustee shall not be charged with knowledge of an Event of Default unless a Responsible Officer at the Corporate Trust Office has actual knowledge thereof.
      Section 5.02 Acceleration of Maturity; Rescission, and Annulment. If any Event of Default described in Section 5.01 above (other than Events of Default described in Section 5.01(e) and Section 5.01(f)) shall have occurred and be continuing with respect to any series, then and in each and every such case, unless the principal of all the Securities of such series shall have already become due and payable, either the Trustee or the Holders of not less than 51% in aggregate principal amount of the Securities of such series then Outstanding hereunder, by notice in writing to the Company (and to the Trustee if given by Holders), may declare the principal amount (or, if the Securities of such series are Original Issue Discount Securities, such portion of the principal amount as may be specified in the terms of that series) of all the Securities of such series and any and all accrued interest thereon to be due and payable immediately, and upon any such declaration the same shall become and shall be immediately due and payable, any provision of this Indenture or the Securities of such series to the contrary notwithstanding. If an Event of Default specified in Section 5.01(e) or Section 5.01(f) occurs, the principal amount of the Securities of such series and any and all accrued interest thereon shall immediately become and be due and payable without any declaration or other act on the party of the Trustee or any Holder. No declaration of acceleration by the Trustee with respect to any series of Securities shall constitute a declaration of acceleration by the Trustee with respect to any other series of Securities, and no declaration of acceleration by the Holders of at least 51% in aggregate principal amount of the Outstanding Securities of any series shall constitute a declaration of acceleration or other action by any of the Holders of any other series of Securities, in each case whether or not the Event of Default on which such declaration is based shall have occurred and be continuing with respect to more than one series of Securities, and whether or not any Holders of the Securities of any such affected series shall also be Holders of Securities of any other such affected series.
      At any time after such a declaration of acceleration has been made with respect to the Securities of any series and before a judgment or decree for payment of the money due has been obtained by the Trustee as hereinafter in this Article provided, the Holders of not less than a majority of the aggregate principal amount of the Outstanding Securities of such series, by written notice to the Company and the Trustee, may rescind and annul such declaration and its consequences if all Events of Default with respect to such series of Securities, other than the nonpayment of the principal of the Securities of such series which have become due solely by such acceleration, have been cured or waived as provided in Section 5.13, if such cure or waiver does not conflict with any judgment or decree set forth in Section 5.01(e) and Section 5.01(f) and if all sums paid or advanced by the Trustee hereunder and the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and counsel have been paid.
 

 

 

 

 

 

 

 

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      No such rescission shall affect any subsequent default or impair any right consequent thereon.
      Section 5.03 Collection of Indebtedness 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 of any series when such interest becomes due and payable, or
  (b) default is made in the payment of the principal of (or premium, if any, on) any Security at the Maturity thereof, or
  (c) default is made in the payment of any sinking or purchase fund or analogous obligation when the same becomes due by the terms of the Securities of any series, and
  (d) any such default continues for any period of grace provided in relation to such default pursuant to Section 5.01, then, with respect to the Securities of such series, the Company will, upon demand of the Trustee, pay to it, for the benefit of the Holder of any such Security (or the Holders of any such series in the case of clause (c) above), the whole amount then due and payable on any such Security (or on the Securities of any such series in the case of clause (c) above) for principal (and premium, if any) and interest, if any, with interest (to the extent that payment of such interest shall be legally enforceable) upon the overdue principal (and premium, if any) and upon overdue installments of interest, if any, at such rate or rates as may be prescribed therefor by the terms of any such Security (or of Securities of any such series in the case of clause (c) above); 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 and all other amounts due the Trustee under Section 6.07.
      If the Company fails to pay such amounts forthwith upon such demand, the Trustee, in its own name and as trustee of an express trust, may institute a judicial proceeding for the collection of the sums so due and unpaid, and may prosecute such proceeding to judgment or final decree, and may enforce the same against the Company or any other obligor upon the Securities of such series and collect the money 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 any series of Securities 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 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.
      Section 5.04 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 or interest) shall be entitled and empowered, by intervention in such proceedings or otherwise,
  (a) to file and prove a claim for the whole amount of principal (or, with respect to Original Discount Securities, such portion of the principal amount as may be specified in the terms of such Securities), premium, if any, and interest, if any, owing and unpaid in respect of the Securities, and to file such other papers or documents as may be necessary and 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 all other amounts due the Trustee under Section 6.07) and of the Securityholders allowed in such judicial proceedings, 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 receiver, assignee, trustee, liquidator, sequestrator (or other similar official) in any such judicial proceeding is hereby authorized by each Securityholder to make such payments to the Trustee, and in the
 

 

 

 

 

 

 

 

 

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 event that the Trustee shall consent to the making of such payments directly to the Securityholders, to pay to the Trustee any amount due to it for the reasonable compensation, expenses, disbursements and advances of the Trustee and its agent and counsel, and any other amounts due the Trustee under Section 6.07 hereof.
      Nothing herein contained shall be deemed to authorize the Trustee to authorize or consent to or accept or adopt on behalf of any Securityholder 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 Securityholder in any such proceeding.
      Section 5.05 Trustee May Enforce Claims Without Possession of Securities. All rights of action and claims under this Indenture or the Securities of any series may be prosecuted and enforced by the Trustee without the possession of any of the Securities of such series 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 and its agents and counsel, be for the ratable benefit of the Holders of the Securities, of the series in respect of which such judgment has been recovered.
      Section 5.06 Application of Money Collected. Any money collected by the Trustee with respect to a series of Securities 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, premium, if any, or interest, if any, upon presentation of the Securities of such series and the notation thereon of the payment, if only partially paid, and upon surrender thereof, if fully paid:
      First: To the payment of all amounts due the Trustee under Section 6.07 hereof.
      Second: To the payment of the amounts then due and unpaid upon the Securities of that series for principal, premium, if any, interest, if any, and additional amounts, if any, in respect of which or for the benefit of which such money has been collected, ratably, without preference or priority of any kind.
      Section 5.07 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 for the appointment of a receiver or trustee, or for any other remedy hereunder, unless
  (a) such Holder has previously given written notice to the Trustee of a continuing Event of Default with respect to Securities of such series;
  (b) the Holders of not less than 51% in principal amount of the Outstanding Securities of such series 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 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 in principal amount of the Outstanding Securities of such series; it being understood and intended that no one or more Holders of Securities of such series 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 such series, or to obtain or to seek to obtain priority or preference over any other such Holders or to enforce any right under this Indenture, except in the manner herein provided and for the equal and proportionate benefit of all the Holders of all Securities of such series.
      Section 5.08 Unconditional Right of Securityholders 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 of the principal, premium, if any, and (subject to Section 3.07)
 

 

 

 

 

 

 

 

 

 

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 interest, if any, (and additional amounts, if any) on such Security on or after the respective payment dates expressed in such Security (or, in the case of redemption or repayment, on the Redemption Date or Repayment Date, as the case may be) and to institute suit for the enforcement of any such payment on or after such respective date, and such right shall not be impaired or affected without the consent of such Holder.
      Section 5.09 Restoration of Rights and Remedies. If the Trustee or any Securityholder has instituted any proceeding to enforce any right or remedy under this Indenture and such proceeding has been discontinued or abandoned for any reason, then and in every such case the Company, the Trustee and the Securityholders shall, subject to any determination in such proceeding, be restored severally and respectively to their former positions hereunder, and thereafter all rights and remedies of the Trustee and the Securityholders shall continue as though no such proceeding had been instituted.
      Section 5.10 Rights and Remedies Cumulative. No right or remedy herein conferred upon or reserved to the Trustee or to the Securityholders is intended to be exclusive of any other right or remedy, and every right or 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.
      Section 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 Securityholders may be exercised from time to time, and as often as may be deemed expedient, by the Trustee or by the Securityholders, as the case may be.
      Section 5.12 Control by Securityholders. The Holders of a majority in principal amount of the Outstanding Securities of any 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 with respect to the Securities of such series, provided that
  (a) the Trustee shall have the right to decline to follow any such direction if the Trustee, being advised by counsel, determines that the action so directed may not lawfully be taken or would conflict with this Indenture or if the Trustee in good faith shall, by a Responsible Officer, determine that the proceedings so directed would involve it in personal liability or be unjustly prejudicial to the Holders not taking part in such direction, and
  (b) the Trustee may take any other action deemed proper by the Trustee which is not inconsistent with such direction.
      Section 5.13 Waiver of Past Defaults. 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 hereunder with respect to such series and its consequences, except a default not theretofore cured:
  (a) in the payment of principal, premium, if any, or interest, if any, on any Security of such series, or in the payment of any sinking or purchase fund or analogous obligation with respect to the Securities of such series, or
  (b) in respect of a covenant or provision in this Indenture which, under Article Nine hereof, cannot be modified or amended without the consent of the Holder of each Outstanding Security of such series.
      Upon any such waiver, such default shall cease to exist, and any Event of Default arising therefrom shall be deemed to have been cured, for every purpose of this Indenture; but no such waiver shall extend to any subsequent or other default or impair any right consequent thereon.
      Section 5.14 Undertaking for Costs. All parties to this Indenture agree, and each Holder of any Security by his acceptance thereof shall be deemed to have agreed, that any court may in its discretion require, in any suit for the enforcement of any right or remedy under this Indenture, or in any suit against the Trustee for any action taken or omitted by it as Trustee, the filing by any party litigant in such suit of an undertaking to pay the costs of such suit, and that such court may in its discretion assess reasonable costs, including reasonable attorneys’ fees, against any
 

 

 

 

 

 

 

 

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 party litigant in such suit, having due regard to the merits and good faith of the claims or defenses made by such party litigant; but the provisions of this Section shall not apply to any suit instituted by the Trustee, to any suit instituted by any Securityholder or group of Securityholders holding in the aggregate more than 10% in principal amount of the Outstanding Securities of any series to which the suit relates, or to any suit instituted by any Securityholder for the enforcement of the payment of principal, premium, if any, or interest, if any, on any Security on or after the respective payment dates expressed in such Security (or, in the case of redemption or repayment, on or after the Redemption Date or Repayment Date).
      Section 5.15 Waiver of Stay or Extension Laws. The Company covenants (to the extent that it may lawfully do so) that it will 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 (other than any bankruptcy 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 will not hinder, delay or impede the execution of any power herein granted to the Trustee, but will suffer and permit the execution of every such power as though no such law had been enacted.
 ARTICLE VI
  THE TRUSTEE
      Section 6.01 Certain Duties and Responsibilities of Trustee.
  (a) Except during the continuance of an Event of Default with respect to any series of Securities,
   (i) the Trustee undertakes to perform such duties and only such duties as are specifically set forth in this Indenture with respect to the Securities of such series, and no implied covenants or obligations shall be read into this Indenture against the Trustee; and
   (ii) in the absence of bad faith on its part, the Trustee may, with respect to Securities of such series, conclusively rely upon certificates or opinions furnished to the Trustee and conforming to the requirements of this Indenture; but in the case of any such certificates or opinions which by any provision hereof are specifically required to be furnished to the Trustee, the Trustee shall be under a duty to examine the same to determine whether or not they conform on their face to the requirements of this Indenture (but need not confirm or investigate the accuracy of calculations or other facts stated therein).
  (b) If an Event of Default with respect to any series of Securities actually known to a Responsible Officer of the Trustee has occurred and is continuing, the Trustee shall exercise, with respect to the Securities of such series, such of the rights and powers vested in it by this Indenture, and use the same degree of care and skill in their exercise, as a prudent person would exercise or use under the circumstances in the conduct of his own affairs.
  (c) No provision of this Indenture shall be construed to relieve the Trustee from liability for its own negligent action, its own negligent failure to act, or its own willful misconduct, except that
   (i) this Subsection shall not be construed to limit the effect of Subsection (a) of this Section;
   (ii) the Trustee shall not be liable for any error of judgment made in good faith by a Responsible Officer, unless it shall be proved that the Trustee was negligent in ascertaining the pertinent facts;
   (iii) the Trustee shall not be liable with respect to any action taken or omitted to be taken by it in good faith in accordance with the direction of the Holders of not less than a majority in principal amount of the Outstanding Securities of any series relating to the time, method, and place of conducting any proceeding for any remedy available to the Trustee with respect to the Securities of such series, or exercising any trust or power conferred upon the Trustee, under this Indenture with respect to the Securities of such series; and
   (iv) no provision of this Indenture shall require the Trustee 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.
 

 

 

 

 

 

 

 

 

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  (d) Whether or not therein expressly so provided, every provision of this Indenture relating to the conduct or affecting the liability of or affording protection to the Trustee shall be subject to the provisions of this Section.
      Section 6.02 Notice of Defaults. Within 90 days after receipt of notice of the occurrence of any default hereunder with respect to Securities of any series, the Trustee shall transmit by mail to all Securityholders of such series, as their names and addresses appear in the Security Register, 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, premium, if any, or interest, if any, on any Security of such series or in the payment of any sinking or purchase fund installment or analogous obligation 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 interests of the Securityholders of such series and;  provided ,  further , that, in the case of any default of the character specified in Section 5.01(d) with respect to Securities of such series, no such notice to Securityholders of such series shall be given until at least 60 days after the occurrence thereof. For the purpose of this Section, the term “ default ”, with respect to Securities of any series, means any event which is, or after notice or lapse of time or both would become, an Event of Default with respect to Securities of such series.
      Section 6.03 Certain Rights of Trustee. Except as otherwise provided in Section 6.01 above:
  (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 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, direction or order of the Company mentioned herein shall be sufficiently evidenced by a Company Request or Company Order 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 an Officers’ Certificate or Opinion of Counsel or both, and shall not be liable for any action it takes or omits to take in good faith reliance on such certificate or opinion;
  (d) the Trustee may consult with counsel of its selection and the advice or opinion of such counsel as to matters of law shall be full and complete authorization and protection from liability in respect of any action taken, suffered or omitted by it hereunder in good faith and in reliance thereon;
  (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 Securityholders pursuant to this Indenture, unless such Securityholders shall have offered to the Trustee security or indemnity reasonably 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 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; and
  (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.
      Section 6.04 Not Responsible for Recitals or Issuance of Securities. The recitals contained herein and in the Securities, except the certificates of authentication, shall be taken as the statements of the Company, and the Trustee assumes no responsibility for their correctness. The Trustee makes no representations as to the validity or sufficiency of this Indenture or of the Securities. The Trustee shall not be accountable for the use or application by the Company of Securities or the proceeds thereof.
 

 

 

 

 

 

 

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      Section 6.05 May Hold Securities. The Trustee or any Paying Agent, Security Registrar, or other agent of the Company, in its individual or any other capacity, may become the owner or pledgee of Securities and, subject to Sections 6.08 and 6.13 hereof, may otherwise deal with the Company with the same rights it would have if it were not Trustee, Paying Agent, Security Registrar, or such other agent.
      Section 6.06 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.
      Section 6.07 Compensation and Reimbursement. The Company covenants and agrees
  (a) to pay the Trustee from time to time, and the Trustee shall be entitled to, reasonable compensation for all services rendered by it hereunder (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 reasonable expenses 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 this trust, including the reasonable 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.
      Without prejudice to any other rights available to the Trustee under applicable law, when the Trustee incurs expenses or renders services in connection with an Event of Default specified in Section 5.01(e) and Section 5.01(f) above, such expenses (including the reasonable charges and expenses of its counsel) and compensation for such services are intended to constitute expenses of administration under any applicable Federal or State bankruptcy, insolvency, reorganization, or other similar law.
      The Trustee shall have a lien prior to the Securities upon all property and funds held or collected by it as such for any amount owing to it or any predecessor Trustee pursuant to this Section 6.07, except with respect to funds held in trust for the benefit of the Holders of particular Securities.
      The provisions of this Section shall survive the satisfaction and discharge of this Indenture.
      Section 6.08 Disqualification; Conflicting Interests. If the Trustee has or shall acquire any conflicting interest within the meaning of the Trust Indenture Act, it shall either eliminate such interest or resign as Trustee with respect to one or more series of Securities, to the extent and in the manner provided by, and subject to the provisions of, the Trust Indenture Act and this Indenture. To the extent permitted by the Trust Indenture Act, the Trustee shall not be deemed to have a conflicting interest by virtue of being a trustee under this Indenture with respect to Securities of more than one series.
      Section 6.09 Corporate Trustee Required; Eligibility. There shall at all times be a Trustee hereunder with respect to each series of Securities that shall be a corporation organized and doing business under the laws of the United States of America or of any State or Territory thereof or of the District of Columbia, authorized under such laws to exercise corporate trust powers, having a combined capital and surplus of at least $50,000,000, and subject to supervision or examination by Federal or State authority and having its principal office and place of business in the City of New York, if there be such a corporation having its principal office and place of business in said City and willing to act as Trustee on customary and usual terms. If such corporation publishes reports of condition at least annually, pursuant to law or to the requirements of the aforesaid supervising or examining authority, then for the purposes of this Section, the combined capital and surplus of such corporation shall be deemed to be its combined capital and surplus as set forth in its most recent report of condition so published. If at any time the Trustee with respect to any series of Securities 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.
 

 

 

 

 

 

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      Section 6.10 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 under Section 6.11.
  (b) The Trustee may resign with respect to any one or more series of Securities at any time by giving at least 60 days’ written notice thereof to the Company. If an instrument of acceptance by a successor Trustee 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.
  (c) The Trustee may be removed with respect to any series of Securities at any time by Act of the Holders of 66 2/3% in principal amount of the Outstanding Securities of that series, delivered to the Trustee and to the Company.
  (d) If at any time:
   (i) the Trustee shall fail to comply with Section 6.08 above with respect to any series of Securities after written request therefor by the Company or by any Securityholder who has been a bona fide Holder of a Security of that series for at least six months, or
   (ii) the Trustee shall cease to be eligible under Section 6.09 above with respect to any series of Securities and shall fail to resign after written request therefor by the Company or by any such Securityholder, or
   (iii) the Trustee shall become incapable of acting with respect to any series of Securities, or
   (iv) the Trustee 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 (A) the Company may remove the Trustee, with respect to the series or, in the case of clause (iv), with respect to all series, or (B) subject to Section 5.14, any Securityholder who has been a bona fide Holder of a Security of such series for at least 6 months may, on behalf of himself and all others similarly situated, petition any court of competent jurisdiction for the removal of the Trustee and the appointment of a successor Trustee with respect to the series or, in the case of clause (iv), with respect to all series.
  (e) If the Trustee shall resign, be removed or become incapable of acting with respect to any series of Securities, or if a vacancy shall occur in the office of Trustee with respect to any series of Securities for any cause, the Company shall promptly appoint a successor Trustee for that series of Securities. If, within one year after such resignation, removal or incapacity, or the occurrence of such vacancy, a successor Trustee with respect to such series of Securities shall be appointed by Act of the Holders of 66 2/3% 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 such series and supersede the successor Trustee appointed by the Company with respect to such series. If no successor Trustee with respect to such series shall have been so appointed by the Company or the Securityholders of such series and accepted appointment in the manner hereinafter provided, any Securityholder who has been bona fide Holder of a Security of that 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 such series.
  (f) The Company shall give notice of each resignation and each removal of the Trustee with respect to any series and each appointment of a successor Trustee with respect to any series by mailing written notice of such event by first-class mail, postage prepaid, to the Holders of Securities of that series as their names and addresses appear in the Security Register. Each notice shall include the name of the successor Trustee and the address of its principal Corporate Trust Office.
      Section 6.11 Acceptance of Appointment by Successor. Every successor Trustee appointed hereunder with respect to all series of Securities shall execute, acknowledge and deliver to the Company and to the predecessor Trustee an instrument accepting such appointment, and thereupon the resignation or removal of the predecessor Trustee shall become effective, and such successor Trustee, without any further act, deed or conveyance, shall
 

 

 

 

 

 

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 become vested with all the rights, powers, trusts and duties of the predecessor Trustee with respect to any such series; but, on request of the Company or the successor Trustee, such predecessor Trustee shall, upon payment of its reasonable charges, if any, execute and deliver an instrument transferring to such successor Trustee all the rights, powers and trusts of the predecessor Trustee, and shall duly assign, transfer and deliver to such successor Trustee all property and money held by such predecessor Trustee hereunder.
      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 predecessor Trustee and each successor Trustee with respect to the Securities of any applicable series shall execute and deliver an indenture supplemental hereto which (1) shall contain such provisions as shall be deemed necessary or desirable to transfer and to conform to, and to vest in, each successor Trustee all the rights, powers, trusts and duties of the predecessor Trustee with respect to the Securities of any series as to which the appointment of such successor Trustee relates and (2) if the predecessor 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 predecessor Trustee with respect to the Securities of any series as to which the predecessor Trustee is not being succeeded shall continue to be vested in the predecessor Trustee, and (3) 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; and, 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.
      Upon request of any such successor Trustee, the Company shall execute any and all instruments for more fully and certainly vesting in and confirming to such successor Trustee all such rights, powers and trusts referred to in the first or second preceding paragraph, as the case may be.
      No successor Trustee with respect to any series of Securities shall accept its appointment unless at the time of such acceptance such successor Trustee shall be qualified and eligible with respect to that series under this Article.
      Notwithstanding replacement of the Trustee pursuant to this Section, the Company’s obligations under Section 6.07 hereof shall continue for the benefit of the retiring Trustee.
      Section 6.12 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 that 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 Trustee 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.
      Section 6.13 Preferential Collection of Claims Against Company. If and when the Trustee shall be or shall become a creditor, of the Company (or of any other obligor upon the Securities), the Trustee shall be subject to the provisions of the Trust Indenture Act regarding the collection of claims against the Company (or against any such other obligor, as the case may be).
      Section 6.14 Appointment of Authenticating Agent. At any time when any of the Securities remain Outstanding the Trustee, with the approval of the Company, may appoint an Authenticating Agent or 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 issued upon exchange, registration of transfer or partial redemption thereof or pursuant to
 

 

 

 

 

 

 

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 Section 3.06, and 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. 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 United States of America, any State thereof or the District of Columbia, authorized under such laws to act as an 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 Authenticating Agent 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 Authenticating Agent 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, such Authenticating Agent 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, if other than the Company, 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, if other than the Company, 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, with the approval of the Company, may appoint a successor Authenticating Agent which shall be acceptable to the Company and shall mail written notice of such appointment by first-class mail, postage prepaid, to all Holders of Securities of the series with respect to which such Authenticating Agent will serve, as their names and addresses appear in the Security Register. 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 originally named as an Authenticating Agent. No successor Authenticating Agent shall be appointed unless eligible under the provisions of this Section.
      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 in the following form:
      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:
  Authorized Officer:
 ARTICLE VII
  SECURITYHOLDERS’ LISTS AND REPORTS BY TRUSTEE AND COMPANY
      Section 7.01 Company to Furnish Trustee Names and Addresses of Securityholders. The Company will furnish or cause to be furnished to the Trustee:
 

 

 

 

 

 

 

 

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  (a) semiannually, not more than 15 days after January 1 and July 1 in each year, in such form as the Trustee may reasonably require, a list of the names and addresses of the Holders of Securities of each series as of such date, and
  (b) at such other times as the Trustee may request in writing, within 30 days after the receipt by the Company of any such request, a list of similar form and content as of a date not more than 15 days prior to the time such list is furnished, provided that if the Trustee shall be the Security Registrar for such series, such list shall not be required to be furnished.
      Section 7.02 Preservation of Information; Communications to Securityholders.
  (a) The Trustee shall preserve, in as current a form as is reasonably practicable, the names and addresses of Holders of Securities contained in the most recent list furnished to the Trustee as provided in Section 7.01 and the names and addresses of Holders of Securities received by the Trustee in its capacity as Security Registrar. The Trustee may destroy any list furnished to it as provided in Section 7.01 upon receipt of a new list so furnished.
  (b) If three or more Holders of Securities of any series (hereinafter referred to as “applicants”) apply in writing to the Trustee, and furnish to the Trustee reasonable proof that each such applicant has owned a Security of such series for a period of at least six months preceding the date of such application, and such application states that the applicants desire to communicate with other Holders of Securities of such series or with the Holders of all Securities with respect to their rights under this Indenture or under such Securities and is accompanied by a copy of the form of proxy or other communication which such applicants propose to transmit, then the Trustee shall, within five Business Days after the receipt of such application, at its election, either:
   (i) afford such applicants access to the information preserved at the time by the Trustee in accordance with Section 7.02(a), or
   (ii) inform such applicants as to the approximate number of Holders of Securities of such series or all Securities, as the case may be, whose names and addresses appear in the information preserved at the time by the Trustee in accordance with Section 7.02(a), and as to the approximate cost of mailing to such Securityholders the form of proxy or other communication, if any, specified in such application.
      If the Trustee shall elect not to afford such applicants access to such information, the Trustee shall, upon the written request of such applicants, mail to each Holder of a Security of such series or to all Securityholders, as the case may be, whose names and addresses appear in the information preserved at the time by the Trustee in accordance with Section 7.02 (a), a copy of the form of proxy or other communication which is specified in such request, with reasonable promptness after a tender to the Trustee of the material to be mailed and of payment, or provision for the payment, of the reasonable expenses of mailing, unless within five days after such tender, the Trustee shall mail to such applicants and file with the Commission, together with a copy of the material to be mailed, a written statement to the effect that, in the opinion of the Trustee, such mailing would be contrary to the best interests of the Holders of Securities of such series or all Securityholders, as the case may be, or would be in violation of applicable law. Such written statement shall specify the basis of such opinion. If the Commission, after opportunity for a hearing upon the objections specified in the written statement so filed, shall enter an order refusing to sustain any of such objections or if, after the entry of an order sustaining one or more of such objections, the Commission shall find, after notice and opportunity for hearing, that all the objections so sustained have been met and shall enter an order so declaring, the Trustee shall mail copies of such material to all Securityholders of such series or all Securityholders, as the case may be, with reasonable promptness after the entry of such order and the renewal of such tender; otherwise the Trustee shall be relieved of any obligation or duty to such applicants respecting their application.
  (c) Every Holder of Securities, by receiving and holding the same, agrees with the Company and the Trustee that neither the Company nor the Trustee shall be held accountable by reason of the disclosure of any such information as to the names and addresses of the Holders of Securities in accordance with Section 7.02(b), 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 Section 7.02(b).
      Section 7.03 Reports by Trustee.
 

 

 

 

 

 

 

 

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  (a) The Trustee shall transmit to Holders such reports concerning the Trustee and its actions under this Indenture as may be required pursuant to the Trust Indenture Act at the times and in the manner provided pursuant thereto. If required by Section 313(a) of the Trust Indenture Act, the Trustee shall, within 60 days after each June 1 following the date of this Indenture, deliver to each Holder, as provided in Trust Indenture Act Section 313(c), a brief report dated as of such June 1, which complies with the provisions of such Section 313(a).
  (b) A copy of each such report shall, at the time of such transmission to Holders, be filed by the Trustee with each stock exchange upon which any Securities are listed, with the Commission and with the Company as required by Trust Indenture Act Section 313(d). The Company will promptly notify the Trustee when any Securities are listed on any stock exchange.
      Section 7.04 Reports by Company. The Company will:
  (a) file with the Trustee, within 30 days after the Company is required to file 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 Securities Exchange Act of 1934; or, if the Company is not required to file information, documents or reports pursuant to either of said Sections, then it will 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 Securities Exchange Act of 1934 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;
  (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 by mail to all Securityholders, as their names and addresses appear in the Security Register, 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 paragraphs (a) and (b) of this Section as may be required by rules and regulations prescribed from time to time by the Commission.
 ARTICLE VIII
  CONSOLIDATION, MERGER, CONVEYANCE OR TRANSFER
      Section 8.01 Company May Consolidate, etc., Only on Certain Terms. The Company shall not consolidate with or merge into any other corporation or convey or transfer all or substantially all of its properties and assets and the properties and assets of the Subsidiaries, taken as a whole, to any Person, unless;
  (a) either the Company shall be the continuing corporation, or the corporation formed by such consolidation or into which the Company is merged or the Person which acquires by conveyance or transfer all or substantially all of the properties and assets of the Company and the Subsidiaries, taken as a whole, shall be a corporation organized and existing under the laws of the United States of America or any State or the District of Columbia, and shall expressly assume, by an indenture supplemental hereto, executed and delivered to the Trustee, in form satisfactory to the Trustee, the due and punctual payment of the principal, premium, if any, and interest, if any, on all the Securities and the performance of every covenant of this Indenture on the part of the Company to be performed or observed;
  (b) immediately after giving effect to such transaction, no Event of Default, or event which, after notice or lapse of time, or both, would become an Event of Default, shall have happened and be continuing; and
  (c) the Company has delivered to the Trustee an Officers’ Certificate and an Opinion of Counsel to the effect that any such consolidation, merger, conveyance or transfer and any assumption permitted or required by this Article complies with the provisions of this Article.
 

 

 

 

 

 

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      Section 8.02 Successor Corporation Substituted. Upon any consolidation or merger, or any conveyance or transfer of all or substantially all of the properties and assets of the Company in accordance with Section 8.01, the successor corporation formed by such consolidation or into which the Company is merged or the Person to which such conveyance or transfer 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 corporation had been named as the Company herein and the Company shall thereupon be released from all obligations hereunder and under the Securities. Such successor corporation thereupon may cause to be signed and may issue any or all of the Securities issuable hereunder which theretofore shall not have been signed by the Company and delivered to the Trustee; and, upon the order of such successor corporation, instead of the Company, and subject to all the terms, conditions and limitations in this Indenture prescribed, the Trustee shall authenticate and shall deliver any Securities which previously shall have been signed and delivered by the officers of the Company to the Trustee for authentication, and any Securities which such successor corporation thereafter shall cause to be signed and delivered to the Trustee for that purpose. All of the Securities so issued shall in all respects have the same legal rank and benefit under this Indenture as the Securities theretofore or thereafter issued in accordance with the terms of this Indenture as though all of such Securities had been issued at the date of the execution hereof.
      In case of any such consolidation, merger, sale or conveyance, such changes in phraseology and form (but not in substance) may be made in the Securities thereafter to be issued as may be appropriate.
 ARTICLE IX
  SUPPLEMENTAL INDENTURES
      Section 9.01 Supplemental Indentures Without Consent of Securityholders. Without the consent of the Holders of any Securities, the Company and the Trustee, at any time and from time to time, may enter into one or more indentures supplemental hereto (which shall conform to the provisions of the Trust Indenture Act as in force at the date of execution thereof), in form satisfactory to the Trustee, for any of the following purposes:
  (a) to evidence the succession of another corporation to the Company, or successive successions, and the assumption by any such successor of the covenants, agreements and obligations of the Company pursuant to Article 8 hereof; or
  (b) to add to the covenants of the Company such further covenants, restrictions or conditions for the protection of the Holders of the Securities of any or all series as the Company and the Trustee shall consider to be for the protection of the Holders of the Securities of any or all series or to surrender any right or power herein conferred upon the Company (and if such covenants or the surrender of such right or power are to be for the benefit of less than all series of Securities, stating that such covenants are expressly being included or such surrenders are expressly being made solely for the benefit of one or more specified series); or
  (c) to cure any ambiguity, to correct or supplement any provision herein which may be inconsistent with any other provision herein or in any supplemental indenture, or to make any other provisions with respect to matters or questions arising under this Indenture that do not adversely affect the interests of the Holders of Securities of any series in any material respect; or
  (d) to add to this Indenture such provisions as may be expressly permitted by the Trust Indenture Act, excluding, however, the provisions referred to in Section 316(a)(2) of the Trust Indenture Act as in effect at the date as of which this instrument is executed or any corresponding provision in any similar federal statute hereafter enacted; or
  (e) to add guarantors or co-obligors with respect to any series of Securities; or
  (f) to secure any series of Securities; or
  (g) to establish any form of Security, as provided in Article 2 hereof, and to provide for the issuance of any series of Securities, as provided in Article 3 hereof, and to set forth the terms thereof, and/or to add to the rights of the Holders of the Securities of any series; or
 

 

 

 

 

 

 

 

 

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  (h) to evidence and provide for the acceptance of appointment by another corporation as a successor Trustee hereunder with respect to one or more series of Securities 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 Section 6.11 hereof; or
  (i) to add any additional Events of Default in respect of the Securities of any or all series (and if such additional Events of Default are to be in respect of less than all series of Securities, stating that such Events of Default are expressly being included solely for the benefit of one or more specified series); or
  (j) to comply with the requirements of the Commission in connection with the qualification of this Indenture under the Trust Indenture Act; or
  (k) to make any change in any series of Securities that does not adversely affect in any material respect the interests of the Holders of such Securities.
      Section 9.02 Supplemental Indentures With Consent of Securityholders. With the consent of the Holders of not less than a majority in principal amount of the Outstanding Securities of each series affected by such supplemental indenture or indentures, by Act of said Holders delivered to the Company and the Trustee, the Company and the Trustee may from time to time and at any time enter into an indenture or indentures supplemental hereto for the purpose of adding any provisions to or changing in any manner or eliminating any of the provisions of this Indenture or of any supplemental indenture or of modifying in any manner the rights of the Holders of the Securities of each such series under this Indenture; provided, however , that no such supplemental indenture shall, without the consent of the Holder of each Outstanding Security affected thereby:
  (a) change the Scheduled Maturity Date or the stated payment date of any payment of premium or interest payable on any Security, or reduce the principal amount thereof, or any amount of interest or premium payable thereon, or
  (b) change the method of computing the amount of principal of any Security or any interest payable thereon on any date, or change any Place of Payment where, or the coin or currency in which, any Security or any payment of premium or interest thereon is payable, or
  (c) impair the right to institute suit for the enforcement of any payment described in clauses (a) or (b) on or after the same shall become due and payable, whether at Maturity or, in the case of redemption or repayment, on or after the Redemption Date or the Repayment Date, as the case may be; or
  (d) change or waive the redemption or repayment provisions of any series;
  (e) reduce the percentage in principal amount of the Outstanding Securities of any series, the consent of whose Holders is 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 or certain defaults hereunder and their consequences, provided for in this Indenture; or
  (f) modify any of the provisions of this Section or Section 5.13, except to increase any such percentage or to provide that certain other provisions of this Indenture cannot be modified or waived without the consent of the Holder of each Outstanding Security affected thereby; provided, however , that this clause shall not be deemed to require the consent of any Holder with respect to changes in the references to “the Trustee” and concomitant changes in this Section, or the deletion of this proviso, in accordance with the requirements of Sections 6.11 and 9.01(h); or
  (g) adversely affect the ranking or priority of any series;
  (h) release any guarantor or co-obligor from any of its obligations under its guarantee of the Securities or this Indenture, except in compliance with the terms of this Indenture; or
  (i) waive any Event of Default pursuant to Section 5.01(a), Section 5.01(b) or Section 5.01(c) hereof with respect to such Security.
 

 

 

 

 

 

 

 

 

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      A supplemental indenture that changes or eliminates any covenant or other provision of this Indenture that has expressly been included solely for the benefit of one or more particular series of Securities, or that 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.
      It shall not be necessary for any Act of Securityholders under this Section 9.02 to approve the particular form of any proposed supplemental indenture, but it shall be sufficient if such Act shall approve the substance thereof.
      Section 9.03 Execution of Supplemental Indentures. Upon request of the Company and upon filing with the Trustee of evidence of an Act of Securityholders as aforementioned, the Trustee shall join with the Company in the execution of such supplemental indenture unless such supplemental indenture affects the Trustee’s own rights, powers, trusts, duties or immunities under this Indenture or otherwise, in which case the Trustee may in its discretion, but shall not be obligated to, enter into such supplemental indenture. 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 entitled to receive, and (subject to Section 6.01) 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.
      Section 9.04 Effect of Supplemental Indentures. Upon the execution of any supplemental indenture under this Article, this Indenture shall be and be deemed to be modified and amended in accordance therewith, and such supplemental indenture shall form a part of this Indenture for all purposes; and the respective rights, limitation of rights, duties, powers, trusts and immunities under this Indenture of the Trustee, the Company, and every Holder of Securities theretofore or thereafter authenticated and delivered hereunder shall be determined, exercised and enforced thereunder to the extent provided therein.
      Section 9.05 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.
      Section 9.06 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 so modified as to conform, in the opinion of the Trustee and the Company, to any modification of this Indenture contained in any such supplemental indenture may be prepared and executed by the Company and authenticated and delivered by the Trustee in exchange for Outstanding Securities.
 ARTICLE X
  COVENANTS
      Section 10.01 Payment of Principal, Premium and Interest. With respect to each series of Securities, the Company will duly and punctually pay or cause to be paid the principal, premium, if any, and interest, if any, on such Securities in accordance with their terms and this Indenture, and will duly comply with all the other terms, agreements and conditions contained in the Indenture for the benefit of the Securities of such series.
      Section 10.02 Maintenance of Office or Agency. So long as any of the Securities remain outstanding, the Company will maintain an office or agency in each Place of Payment where Securities may be presented or surrendered for payment, where Securities may be surrendered for registration of transfer or exchange, and where notices and demands to or upon the Company in respect of the Securities and this Indenture may be served. The Company will give prompt written notice to the Trustee of the location, and of any change in the location, of such office or agency. If at any time the Company shall fail to maintain such 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 Trustee its agent to receive all such presentations, surrenders, notices and demands.
      Section 10.03 Money or Security Payments to Be Held in Trust. If the Company shall at any time act as its own Paying Agent for any series of Securities, it will, on or before each due date of the principal, premium, if any,
 

 

 

 

 

 

 

 

 

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 or interest, if any, on any of the Securities of such series, segregate and hold in trust for the benefit of the Holders of the Securities of such series a sum sufficient to pay such principal, premium, or interest so becoming due until such sums shall be paid to such Holders of such Securities or otherwise disposed of as herein provided, and will 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 will, on or prior to each due date of the principal, premium, if any, or interest, if any, on any Securities of such series, deposit with a Paying Agent a sum sufficient to pay such principal, premium, or interest so becoming due, such sum to be held in trust for the benefit of the Holders of the Securities entitled to the same and (unless such Paying Agent is the Trustee) the Company will promptly notify the Trustee of its action or failure so to act.
      The Company will 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 will
  (a) hold all sums held by it for the payment of principal, premium, if any, or interest, if any, on Securities of such series in trust for the benefit of the Holders of the Securities entitled thereto until such sums shall be paid to such Holders of such Securities 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 such payment of principal, 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 with respect to any series of Securities 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 in respect of each and every series of Securities as to which it seeks to discharge this Indenture or, if for any other purpose, all sums so held in trust by the Company in respect of all Securities, such sums to be held by the Trustee upon the same trusts as those upon which such sums were held by the Company or such Paying Agent; and, upon such payment by any Paying Agent to the Trustee, such Paying Agent shall be released from all further liability with respect to such money.
      Section 10.04 Certificate to Trustee. The Company will deliver to the Trustee within 120 days after the end of each fiscal year, an Officers’ Certificate, one of whose signatories shall be the Company’s principal executive, accounting or financial officer, stating that in the course of the performance by the signers of their duties as officers of the Company they would normally have knowledge of any default by the Company in the performance of any of its covenants, conditions or agreements contained herein (without regard to any period of grace or requirement of notice provided hereunder), stating whether or not they have knowledge of any such default and, if so, specifying each such default of which the signers have knowledge and the nature thereof.
      Section 10.05 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.
 ARTICLE XI
  REDEMPTION OF SECURITIES
      Section 11.01 Applicability of Article. The Company may reserve the right to redeem and pay before the Scheduled Maturity Date all or any part of the Securities of any series, either by optional redemption, sinking or purchase fund or analogous obligation or otherwise, by provision therefor in the form of Security for such series established and approved pursuant to Section 2.02 and 2.03 or as otherwise provided in Section 3.01, and on such terms as are specified in such form or in the indenture supplemental hereto with respect to Securities of such series as provided in Section 3.01. Redemption of Securities of any series shall be made in accordance with the terms of such Securities and, to the extent that this Article does not conflict with such terms, the succeeding Sections of this Article.
 

 

 

 

 

 

 

 

 

 

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      Section 11.02 Election to Redeem; Notice to Trustee. 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 in writing of such Redemption Date and of the principal amount of Securities of such series to be redeemed. In the case of any redemption of Securities (a) prior to the expiration of any restriction on such redemption provided in the terms of such Securities or elsewhere in this Indenture, or (b) pursuant to an election of the Company which is subject to a condition specified 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 or condition.
      Section 11.03 Selection by Trustee of Securities to be Redeemed. If fewer 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, which may include provision for the selection for redemption of portions of the principal of Securities of such series of a denomination larger than the minimum authorized denomination for Securities of that series. Unless otherwise provided in the terms of a particular series of Securities, the portions of the principal of Securities so selected for partial redemption shall be equal to the minimum authorized denomination of the Securities of such series, or an integral multiple thereof, and the principal amount which remains outstanding shall not be less than the minimum authorized denomination for Securities of such series.
      The Trustee shall promptly notify the Company in writing of the Securities selected for redemption and, in the case of any Security 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 of such Security which has been or is to be redeemed.
      Section 11.04 Notice of Redemption. Notice of redemption shall be given by first-class mail, postage prepaid, mailed not fewer than 30 nor more than 60 days prior to the Redemption Date, to each Holder of Securities to be redeemed, at his or her address appearing in the Security Register on the applicable Record Date.
      All notices of redemption shall state:
   (1) the Redemption Date;
   (2) the Redemption Price, or if not then ascertainable, the manner of calculation thereof;
   (3) if fewer than all Outstanding Securities of any series are to be redeemed, the identification (and, in the case of partial redemption, the respective principal amounts) of the Securities to be redeemed, from the Holder to whom the notice is given and that on and after the date fixed for redemption, upon surrender of such Security, a new Security or Securities of the same series in the aggregate principal amount equal to the unredeemed portion thereof will be issued in accordance with Section 11.07;
   (4) that on the Redemption Date the Redemption Price will become due and payable upon each such Security, and that interest, if any, thereon shall cease to accrue from and after said date;
   (5) the place where such Securities are to be surrendered for payment of the Redemption Price, which shall be the office or agency maintained by the Company in the Place of Payment pursuant to Section 10.02 hereof; and
   (6) that the redemption is on account of a sinking or purchase fund, or other analogous obligation, if that be 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, made at least five business days prior to the date on which notice is to be given, by the Trustee in the name and at the expense of the Company.
 

 

 

 

 

 

 

 

 

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      Section 11.05 Deposit of Redemption Price. On or prior to 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 10.03) an amount of money, in immediately available funds, sufficient to pay the Redemption Price of all the Securities which are to be redeemed on that date.
      Section 11.06 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 and from and after such date (unless the Company shall default in the payment of the Redemption Price) such Securities shall cease to bear interest. Upon surrender of such Securities for redemption in accordance with the notice, such Securities shall be paid by the Company at the Redemption Price. Any installment of interest due and payable on or prior to the Redemption Date shall be payable to the Holders of such Securities registered as such on the relevant Record Date according to the terms and the provisions of Section 3.07 above; unless, with respect to an Interest Payment Date that falls on a Redemption Date, such Securities provide that interest due on such date is to be paid to the Person to whom principal is payable.
      If any Security called for redemption shall not be so paid upon surrender thereof for redemption, the principal shall, until paid, bear interest from the Redemption Date at the rate borne by the Security, or as otherwise provided in such Security.
      Section 11.07 Securities Redeemed in Part. Any Security that is to be redeemed only in part shall be surrendered at the office or agency maintained by the Company in the Place of Payment pursuant to Section 10.02 hereof with respect to that series (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 his 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 and at the expense of the Company, a new Security or Securities of the same series, tenor, terms and Scheduled Maturity Date, of any authorized denomination as requested by such Holders in aggregate principal amount equal to and in exchange for the unredeemed portion of the principal of the Security so surrendered.
      Section 11.08 Provisions with Respect to any Sinking Funds. Unless the form or terms of any series of Securities shall provide otherwise, in lieu of making all or any part of any mandatory sinking fund payment with respect to such series of Securities in cash, the Company may at its option (a) deliver to the Trustee for cancellation any Securities of such series theretofore acquired by the Company, or (b) receive credit for any Securities of such series (not previously so credited) acquired or redeemed by the Company (other than through operation of a mandatory sinking fund) and theretofore delivered to the Trustee for cancellation, and if it does so then (i) Securities so delivered or credited shall be credited at the applicable sinking fund Redemption Price with respect to Securities of such series, and (ii) on or before the 60th day next preceding each sinking fund Redemption Date with respect to such series of Securities, the Company will deliver to the Trustee (A) an Officers’ Certificate specifying the portions of such sinking fund payment to be satisfied by payment of cash and by the delivery or credit of Securities of such series acquired or redeemed by the Company, and (B) such Securities, to the extent not previously surrendered. Such Officers’ Certificate shall also state the basis for any such credit and that the Securities for which the Company elects to receive credit have not been previously so credited and were not acquired by the Company through operation of the mandatory sinking fund, if any, provided with respect to such Securities and shall also state that no Event of Default with respect to Securities of such series has occurred and is continuing. All Securities so delivered to the Trustee shall be canceled by the Trustee and no Securities shall be authenticated in lieu thereof.
      If the sinking fund payment or payments (mandatory or optional) with respect to any series of Securities made in cash plus any unused balance of any preceding sinking fund payments with respect to Securities of such series made in cash shall exceed $50,000 (or a lesser sum if the Company shall so request), unless otherwise provided by the terms of such series of Securities, that cash shall be applied by the Trustee on the sinking fund Redemption Date with respect to Securities of such series next following the date of such payment to the redemption of Securities of such series at the applicable sinking fund Redemption Price with respect to Securities of such series, together with accrued interest, if any, to the date fixed for redemption, with the effect provided in Section 11.06. The Trustee shall select, in the manner provided in Section 11.03, for redemption on such sinking fund Redemption Date a sufficient principal amount of Securities of such series to utilize that cash and shall thereupon cause notice of redemption of the Securities of such series for the sinking fund to be given in the manner provided in Section 11.04 (and with the effect provided in Section 11.06) for the redemption of Securities in part at the option of the Company.
 

 

 

 

 

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 Any sinking fund moneys not so applied or allocated by the Trustee to the redemption of Securities of such series shall be added to the next cash sinking fund payment with respect to Securities of such series received by the Trustee and, together with such payment, shall be applied in accordance with the provisions of this Section 11.08. Any and all sinking fund moneys with respect to Securities of any series held by the Trustee at the Maturity of Securities of such series, and not held for the payment or redemption of particular Securities of such series, shall be applied by the Trustee, together with other moneys, if necessary, to be deposited sufficient for the purpose, to the payment of the principal of the Securities of such series at Maturity.
      On or before each sinking fund Redemption Date provided with respect to Securities of any series, the Company shall pay to the Trustee in cash a sum equal to all accrued interest, if any, to the date fixed for redemption on Securities to be redeemed on such sinking fund Redemption Date pursuant to this Section 11.08.
      The Trustee shall not redeem any Securities with sinking fund moneys or give any notice of redemption of Securities by operation of the applicable sinking fund during the continuance of a default in payment of interest on Securities of such series or of any Event of Default with respect to such series, except that if the notice of redemption of any Securities shall theretofore have been mailed in accordance with the provisions hereof, the Trustee shall redeem such Securities if cash sufficient for that purpose shall be deposited with the Trustee for that purpose in accordance with the terms of this Article 11. Except as aforesaid, any moneys in the sinking fund with respect to Securities of any series at the time when any such default or Event of Default with respect to such series shall occur, and any moneys thereafter paid into such sinking fund shall, during the continuance of such default or Event of Default with respect to such series, be held as security for the payment of all Securities of such series; provided, however, that in case such default or Event of Default with respect to such series shall have been cured or waived as provided herein, such moneys shall thereafter be applied on the next sinking fund payment date on which such moneys may be applied pursuant to the provisions of this Section 11.08.
 ARTICLE XII
  REPAYMENT AT OPTION OF HOLDERS
      Section 12.01 Applicability of Article. Repayment of Securities of any series before their Scheduled Maturity Date 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 3.01 for Securities of any series) in accordance with this Article.
      Section 12.02 Repayment of Securities. Securities of any series subject to repayment in whole or in part at the option of the Holders thereof will, unless otherwise provided in the terms of such Securities, be repaid at a price equal to the principal amount thereof, together with interest thereon accrued to the Repayment Date specified in the terms of such Securities. On or before the Repayment Date, the Company will 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 10.03) an amount of money, in immediately available funds, sufficient to pay the Repayment Price of all the Securities which are to be repaid on such date.
      Section 12.03 Exercise of Option. Securities of any series subject to repayment at the option of the Holders thereof will 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, 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 of which the Company shall from time to time notify the Holders of such Securities) not earlier than 30 days nor later than 15 days prior to the Repayment Date. If less than the entire principal amount of such Security is to be repaid in accordance with the terms of such Security, the principal amount of such Security to be repaid, in increments of $1,000 unless otherwise specified in the terms of such Security, and the denomination or denominations of the Security or Securities to be issued to the Holder for the portion of the principal amount of such Security surrendered that is not to be repaid must be specified. The principal amount of 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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      Section 12.04 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 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) interest on such Securities or the portions thereof, as the case may be, shall cease to accrue.
      Section 12.05 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, tenor, terms and Scheduled Maturity Date, 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.
 

 

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      IN WITNESS WHEREOF, the parties hereto have caused this Indenture to be duly executed, and their respective corporate seals to be hereunto affixed and attested; all as of the day and year first above written.
 

 	 	 	 	 	 	 	 	 	
	  
	 BLUE EARTH, INC.
   
	  

	  
	 By:  
	  
	  

	  
	  
	 Name:  
	  
	  

	  
	  
	 Title:  
	  
	  

	  

	  
	  
	  
	  
	  

	  
	 Attest:
   
	  

	  
	 By:  
	  
	  

	  
	  
	 Name:  
	  
	  

	  
	  
	 Title:  
	  
	  

	  

	  
	  
	  
	  
	  

	  
	 TRUSTEE
   
	  

	  
	 By:  
	  
	  

	  
	  
	 Name:  
	  
	  

	  
	  
	 Title:  
	  
	  

	  

	  
	  
	  
	  
	  

	  
	 Attest:
   
	  

	  
	 By:  
	  
	  

	  
	  
	 Name:  
	  
	  

	  
	  
	 Title:  
	  
	  

 

 

 

 

 

 

 

 

 

 

 

  
 

 

 

 

 
 

 State of
 ss.:
 County of
      On the [ ] day of [ ], 20[ ] before me personally came [ ] to me known, who, being by me duly sworn, did depose and say that he resides at [ ]; that he is of [ ], one of the parties described in and which executed the above instrument; that he knows the corporate seal of said corporation; that the seal affixed to that instrument is such corporate seal; that it was affixed by authority of the board of directors of said corporation; and that he signed his name thereto by like authority.
 Name
 Notary Public
 

 

 

 

 

 

 

 

 

 

 

 

 

 

  
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
 

 State of
 ss.:
 County of
      On the [ ] day of [ ], 20[ ] before me personally came [ ], to me known, who, being by me duly sworn, did depose and say that he resides at [ ]; that he is the [ ] of Blue Earth, Inc., one of the parties described in and which executed the above instrument; that he knows the corporate seal of said corporation; that the seal affixed to that instrument is such corporate seal; that it was affixed by authority of the board of directors of said corporation; and that he signed his name thereto by like authority.
 Name
 Notary Public

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