Document:

Exhibit 4.3

 

FORM OF SUBORDINATED INDENTURE

 

GOLDEN MINERALS COMPANY,

 

ISSUER,

 

AND

 

[ __________ ],

 

TRUSTEE

 

INDENTURE

 

DATED AS OF [ __________ ], 20[ ]

 

SUBORDINATED DEBT SECURITIES

 

    

     

    

 

CROSS-REFERENCE TABLE1

 

	Section of Trust Indenture Act of 1939, as amended	 	Section of

Indenture
	310(a)(1)	 	7.09
	310(a)(2)	 	7.09
	310(a)(3)	 	Inapplicable
	310(a)(4)	 	Inapplicable
	310(b)	 	7.08
	 	 	7.10
	310(c)	 	Inapplicable
	311(a)	 	7.13
	311(b)	 	7.13
	311(c)	 	Inapplicable
	312(a)	 	5.01
	 	 	5.02(a)
	312(b)	 	5.02(c)
	312(c)	 	5.02(c)
	313(a)	 	5.04(a)
	313(b)	 	5.04(b)
	313(c)	 	5.04(a)
	 	 	5.04(b)
	 	 	5.04(c)
	313(d)	 	5.04(b)
	 	 	5.04(c)
	314(a)	 	5.03
	 	 	13.05(c)
	314(b)	 	Inapplicable
	314(c)	 	13.05
	314(d)	 	Inapplicable
	314(e)	 	13.05
	314(f)	 	Inapplicable
	315(a)(1)	 	7.01(b)
	315(a)(2)	 	7.02
	315(b)	 	5.04(d)
	315(c)	 	7.01
	315(d)	 	7.01
	 	 	7.02
	315(e)	 	6.07
	316(a)	 	6.06
	 	 	8.04
	316(b)	 	6.04
	316(c)	 	8.01
	317(a)	 	6.02
	317(b)	 	4.03
	318(a)	 	13.07

 

 

1 This Cross-Reference Table does not constitute
part of the Indenture and shall not have any bearing on the interpretation of any of its terms or provisions.

 

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TABLE OF CONTENTS2

 

	 	Page
	Article I DEFINITIONS	1
	Section 1.01   Definitions of Terms	1
	 	 
	Article II ISSUE, DESCRIPTION, TERMS, EXECUTION, REGISTRATION AND EXCHANGE OF SECURITIES	4
	Section 2.01   Designation and Terms of Securities	4
	Section 2.02   Form of Securities and Trustee’s Certificate	5
	Section 2.03   Denominations; Provisions for Payment	5
	Section 2.04   Execution and Authentications	6
	Section 2.05   Registration of Transfer and Exchange	7
	Section 2.06   Temporary Securities	8
	Section 2.07   Mutilated, Destroyed, Lost or Stolen Securities	8
	Section 2.08   Cancellation	8
	Section 2.09   Benefits of Indenture	9
	Section 2.10   Authenticating Agent	9
	Section 2.11   Global Securities	9
	 	 
	Article III REDEMPTION OF SECURITIES AND SINKING FUND PROVISIONS	10
	Section 3.01   Redemption	10
	Section 3.02   Notice of Redemption	10
	Section 3.03   Payment Upon Redemption	11
	Section 3.04   Sinking Fund	11
	Section 3.05   Satisfaction of Sinking Fund Payments with Securities	11
	Section 3.06   Redemption of Securities for Sinking Fund	11
	 	 
	Article IV COVENANTS	12
	Section 4.01   Payment of Principal, Premium and Interest	12
	Section 4.02   Maintenance of Office or Agency	12
	Section 4.03   Paying Agents	12
	Section 4.04   Appointment to Fill Vacancy in Office of Trustee	13
	 	 
	Article V SECURITYHOLDERS’ LISTS AND REPORTS BY THE COMPANY AND THE TRUSTEE	13
	Section 5.01   Company to Furnish Trustee Names and Addresses of Securityholders	13
	Section 5.02   Preservation Of Information; Communications With Securityholders	13
	Section 5.03   Reports by the Company	13
	Section 5.04   Reports by the Trustee	14
	 	 
	Article VI REMEDIES OF THE TRUSTEE AND SECURITYHOLDERS ON EVENT OF DEFAULT	14
	Section 6.01   Events of Default	14
	Section 6.02   Suits for Enforcement by Trustee	15
	Section 6.03   Application of Moneys Collected	16
	Section 6.04   Limitation on Suits	17
	Section 6.05   Rights and Remedies Cumulative; Delay or Omission Not Waiver	17
	Section 6.06   Control by Securityholders	17
	Section 6.07   Undertaking to Pay Costs	18
	 	 
	Article VII CONCERNING THE TRUSTEE	18
	Section 7.01   Certain Duties and Responsibilities of Trustee	18
	Section 7.02   Certain Rights of Trustee	19
	Section 7.03   Trustee Not Responsible for Recitals or Issuance or Securities	20

 

 

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

 

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	Section 7.04   May Hold Securities	20
	Section 7.05   Moneys Held in Trust	20
	Section 7.06   Compensation and Reimbursement	20
	Section 7.07   Reliance on Officers’ Certificate	20
	Section 7.08   Disqualification; Conflicting Interests	21
	Section 7.09   Corporate Trustee Required; Eligibility	21
	Section 7.10   Resignation and Removal; Appointment of Successor	21
	Section 7.11   Acceptance of Appointment By Successor	22
	Section 7.12   Merger, Conversion, Consolidation or Succession to Business	23
	Section 7.13   Preferential Collection of Claims Against the Company	23
	 	 
	Article VIII CONCERNING THE SECURITYHOLDERS	23
	Section 8.01   Evidence of Action by Securityholders	23
	Section 8.02   Proof of Execution by Securityholders	24
	Section 8.03   Who May be Deemed Owners	24
	Section 8.04   Certain Securities Owned by Company Disregarded	24
	Section 8.05   Actions Binding on Future Securityholders	24
	 	 
	Article IX SUPPLEMENTAL INDENTURES	25
	Section 9.01   Supplemental Indentures Without the Consent of Securityholders	25
	Section 9.02   Supplemental Indentures With Consent of Securityholders	25
	Section 9.03   Effect of Supplemental Indentures	26
	Section 9.04   Securities Affected by Supplemental Indentures	26
	Section 9.05   Execution of Supplemental Indentures	26
	 	 
	Article X SUCCESSOR ENTITY	26
	Section 10.01   Company May Consolidate, Etc	26
	Section 10.02   Successor Entity Substituted	27
	Section 10.03   Evidence of Consolidation, Etc. to Trustee	27
	 	 
	Article XI SATISFACTION AND DISCHARGE	27
	Section 11.01   Satisfaction and Discharge of Indenture	27
	Section 11.02   Discharge of Obligations	28
	Section 11.03   Deposited Moneys to be Held in Trust	28
	Section 11.04   Payment of Moneys Held by Paying Agents	28
	Section 11.05   Repayment to Company	28
	 	 
	Article XII IMMUNITY OF INCORPORATORS, STOCKHOLDERS, OFFICERS AND DIRECTORS	28
	Section 12.01   No Recourse	28
	 	 
	Article XIII MISCELLANEOUS PROVISIONS	29
	Section 13.01   Effect on Successors and Assigns	29
	Section 13.02   Actions by Successor	29
	Section 13.03   Notices	29
	Section 13.04   Governing Law	29
	Section 13.05   Compliance Certificates and Opinions	29
	Section 13.06   Payments on Business Days	30
	Section 13.07   Conflict with Trust Indenture Act	30
	Section 13.08   Counterparts	30
	Section 13.09   Separability	30
	Section 13.10   Assignment	30
	 	 
	Article XIV SUBORDINATION OF SECURITIES	30
	Section 14.01   Subordination Terms	30

 

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INDENTURE, dated as of [ ], 20[ ], between
Golden Minerals Company, a Delaware corporation (the “Company”), and [ ], as trustee (the “Trustee”):

 

WHEREAS, for its lawful corporate purposes,
the Company has duly authorized the execution and delivery of this Indenture to provide for the issuance of unsecured subordinated
debt securities (hereinafter referred to as the “Securities”) in an unlimited aggregate principal amount to be issued
from time to time in one or more series as in this Indenture provided, as registered Securities without coupons, to be authenticated
by the certificate of the Trustee;

 

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

 

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

 

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

 

Article
I

DEFINITIONS

 

Section
1.01      Definitions
of Terms.

 

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

 

“Authenticating Agent” means
an authenticating agent with respect to all or any of the series of Securities appointed with respect to all or any series of the
Securities by the Trustee pursuant to Section 2.10.

 

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

 

“Board of Directors” means the
Board of Directors of the Company or any duly authorized committee of such Board of Directors.

 

“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.

 

“Business Day” means, with respect
to any series of Securities, any day other than a day on which Federal or State banking institutions in the United States (or in
any city in which the paying agent appointed pursuant to Section 4.03 has an office), are authorized or obligated by law, executive
order or regulation to close.

 

“Certificate” means a certificate
signed by the principal executive officer, the principal financial officer or the principal accounting officer of the Company.
The Certificate need not comply with the provisions of Section 13.05.

 

“Company” means Golden Minerals
Company, a corporation duly organized and existing under the laws of the State of Delaware, and, subject to the provisions of Article
Ten, shall also include its successors and assigns.

 

“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 [ ], except that whenever a provision herein refers to an office or agency of the Trustee
in the United States, such office is located, at the date hereof, at [ ].

 

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“Custodian” means any receiver,
trustee, assignee, liquidator, or similar official under any Bankruptcy Law.

 

“Default” means any event, act
or condition that with notice or lapse of time, or both, would constitute an Event of Default.

 

“Depositary” means, with respect
to Securities of any series, for which the Company shall determine that such Securities will be issued as a Global Security, The
Depository Trust Company, New York, New York, another clearing agency, or any successor registered as a clearing agency under the
Securities Exchange Act of 1934, as amended (the “Exchange Act”), or other applicable statute or regulation, which,
in each case, shall be designated by the Company pursuant to either Section 2.01 or 2.11.

 

“Event of Default” means, with
respect to Securities of a particular series any event specified in Section 6.01, continued for the period of time, if any, therein
designated.

 

“Global Security” means, with
respect to any series of Securities, a Security executed by the Company and delivered by the Trustee to the Depositary or pursuant
to the Depositary’s instruction, all in accordance with the Indenture, which shall be registered in the name of the Depositary
or its nominee.

 

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

 

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

 

“Indenture” means this instrument
as originally executed or as it may from time to time be supplemented or amended by one or more indentures supplemental hereto
entered into in accordance with the terms hereof.

 

“Interest Payment Date,” when
used with respect to any installment of interest on a Security of a particular series, means the date specified in such Security
or in a Board Resolution or in an indenture supplemental hereto with respect to such series as the fixed date on which an installment
of interest with respect to Securities of that series is due and payable.

 

“Officers’ Certificate”
means in the case of the Company, a certificate signed by the Chairman, Vice Chairman, Chief Executive Officer, President, Chief
Financial Officer, Chief Operating Officer, an Executive Vice President or a Senior Vice President and by the Treasurer or an Assistant
Treasurer or the Controller or an Assistant Controller or the Secretary or an Assistant Secretary of the Company that is delivered
to the Trustee in accordance with the terms hereof. Each such certificate shall include the statements provided for in Section
13.05, if and to the extent required by the provisions thereof.

 

“Opinion of Counsel” means an
opinion in writing of legal counsel, who may be an employee of or counsel for the Company that is delivered to the Trustee in accordance
with the terms hereof. Each such opinion shall include the statements provided for in Section 13.05, if and to the extent required
by the provisions thereof.

 

“Outstanding,” when used with
reference to Securities of any series, means, subject to the provisions of Section 8.04, as of any particular time, all Securities
of that series theretofore authenticated and delivered by the Trustee under this Indenture, except (a) Securities theretofore canceled
by the Trustee or any paying agent, or delivered to the Trustee or any paying agent for cancellation or that have previously been
canceled; (b) Securities or portions thereof for the payment or redemption of which moneys or Governmental Obligations in the necessary
amount shall have been deposited in trust with the Trustee or with any paying agent (other than the Company) or shall have been
set aside and segregated in trust by the Company (if the Company shall act as its own paying agent); provided, however, that if
such Securities or portions of such Securities are to be redeemed prior to the maturity thereof, notice of such redemption shall
have been given as in Article Three provided, or provision satisfactory to the Trustee shall have been made for giving such notice;
and (c) Securities in lieu of or in substitution for which other Securities shall have been authenticated and delivered pursuant
to the terms of Section 2.07.

 

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“Person” means any individual,
corporation, partnership, joint venture, joint-stock company, unincorporated organization or government or any agency or political
subdivision thereof.

 

“Predecessor Security” 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 2.07 in lieu of a lost,
destroyed or stolen Security shall be deemed to evidence the same debt as the lost, destroyed or stolen Security.

 

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

 

“Securities” means the debt
Securities authenticated and delivered under this Indenture.

 

“Securityholder,” “holder
of Securities,” “registered holder” or other similar term, means the Person or Persons in whose name or names
a particular Security shall be registered on the books of the Company kept for that purpose in accordance with the terms of this
Indenture.

 

“Senior Indebtedness” means
indebtedness issued pursuant to a senior indenture, as supplemented or amended by one or more indentures supplemental thereto,
payment of which shall be senior to the payment of the Securities issued hereunder, pursuant to ARTICLE XIV hereof.

 

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

 

“Trustee” means [ ], and, subject
to the provisions of Article Seven, shall also include its successors and assigns, and, if at any time there is more than one Person
acting in such capacity hereunder, “Trustee” shall mean each such Person. The term “Trustee” as used with
respect to a particular series of the Securities shall mean the trustee with respect to that series.

 

“Trust Indenture Act” means
the Trust Indenture Act of 1939, as amended, subject to the provisions of Sections 9.01, 9.02 and 10.01, as in effect at the date
of execution of this instrument.

 

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

 

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Article
II

ISSUE, DESCRIPTION, TERMS, EXECUTION,

REGISTRATION AND EXCHANGE OF SECURITIES

 

Section
2.01      Designation
and Terms of Securities.

 

(a)           
The aggregate principal amount of Securities that may be authenticated and delivered under this Indenture is unlimited.
The Securities may be issued in one or more series up to the aggregate principal amount of Securities of that series from time
to time authorized by or pursuant to a Board Resolution of the Company or pursuant to one or more indentures supplemental hereto.
Prior to the initial issuance of Securities of any series, there shall be established in or pursuant to a Board Resolution of the
Company, and set forth in an Officers’ Certificate, or established in one or more indentures supplemental hereto:

 

(1)            
the title of the Security of the series (which shall distinguish the Securities of the series from all other Securities);

 

(2)            
any limit upon the aggregate principal amount of the Securities of that series that may be authenticated and delivered under
this Indenture (except for Securities authenticated and delivered upon registration of transfer of, or in exchange for, or in lieu
of, other Securities of that series);

 

(3)             
the date or dates on which the principal of the Securities of the series is payable and the place(s) of payment;

 

(4)             
the rate or rates at which the Securities of the series shall bear interest or the manner of calculation of such rate or
rates, if any;

 

(5)             
the date or dates from which such interest shall accrue, the Interest Payment Dates on which such interest will be payable
or the manner of determination of such Interest Payment Dates, the place(s) of payment, and the record date for the determination
of holders to whom interest is payable on any such Interest Payment Dates;

 

(6)             
the right, if any, to extend the interest payment periods and the duration of such extension;

 

(7)             
the period or periods within which, the price or prices at which and the terms and conditions upon which, Securities of
the series may be redeemed, in whole or in part, at the option of the Company;

 

(8)             
the obligation, if any, of the Company to redeem or purchase Securities of the series pursuant to any sinking fund or analogous
provisions (including payments made in cash in satisfaction of future sinking fund obligations) or at the option of a holder thereof
and the period or periods within which, the price or prices at which, and the terms and conditions upon which, Securities of the
series shall be redeemed or purchased, in whole or in part, pursuant to such obligation;

 

(9)             
the form of the Securities of the series including the form of the certificate of authentication for such series;

 

(10)           
if other than denominations of one thousand U.S. dollars ($1,000) or any integral multiple thereof, the denominations in
which the Securities of the series shall be issuable;

 

(11)           
any and all other terms with respect to such series (which terms shall not be inconsistent with the terms of this Indenture,
as amended by any supplemental indenture) including any terms which may be required by or advisable under United States laws or
regulations or advisable in connection with the marketing of Securities of that series;

 

(12)           
whether the Securities are issuable as a Global Security and, in such case, the identity of the Depositary for such series;

 

    4

     

    

 

(13)          
whether the Securities will be convertible into shares of common stock or other securities of the Company and, if so, the
terms and conditions upon which such Securities will be so convertible, including the conversion price and the conversion period;

 

(14)          
if other than the principal amount thereof, the portion of the principal amount of Securities of the series which shall
be payable upon declaration of acceleration of the maturity thereof pursuant to Section 6.01;

 

(15)          
the subordination terms of the Securities of the series; and

 

(16)          
any additional or different Events of Default or restrictive covenants provided for with respect to the Securities of the
series.

 

All Securities of any one series shall be
substantially identical except as to denomination and except as may otherwise be provided in or pursuant to any such Board Resolution
or in any indentures supplemental hereto.

 

If any of the terms of the series are established
by action taken pursuant to a Board Resolution, a copy of an appropriate record of such action shall be certified by the Secretary
or an Assistant Secretary of the Company delivered to the Trustee at or prior to the delivery of the Officers’ Certificate
setting forth the terms of the series.

 

Securities of any particular series may
be issued at various times, with different dates on which the principal or any installment of principal is payable, with different
rates of interest, if any, or different methods by which rates of interest may be determined, with different dates on which such
interest may be payable and with different redemption dates.

 

Section
2.02      Form
of Securities and Trustee’s Certificate.

 

The Securities of any series and the Trustee’s
certificate of authentication to be borne by such Securities shall be substantially of the tenor and purport as set forth in one
or more indentures supplemental hereto or as provided in a Board Resolution and as set forth in an Officers’ Certificate
and may have such letters, numbers or other marks of identification or designation and such legends or endorsements printed, lithographed
or engraved thereon as the Company may deem appropriate and as are not inconsistent with the provisions of this Indenture, or as
may be required to comply with any law or with any rule or regulation made pursuant thereto or with any rule or regulation of any
stock exchange on which Securities of that series may be listed, or to conform to usage.

 

Section
2.03      Denominations;
Provisions for Payment.

 

The Securities shall be issuable as registered
Securities and in the denominations of one thousand U.S. dollars ($1,000) or any integral multiple thereof, subject to Section
2.01(10). The Securities of a particular series shall bear interest payable on the dates and at the rate specified with respect
to that series. The principal of and the interest on the Securities of any series, as well as any premium thereon in case of redemption
thereof prior to maturity, shall be payable in the coin or currency of the United States of America that at the time is legal tender
for public and private debt, at the office or agency of the Company maintained for that purpose in the United States. Each Security
shall be dated the date of its authentication. Interest on the Securities shall be computed on the basis of a 360-day year composed
of twelve 30-day months.

 

The interest installment on any Security
that is payable, and is punctually paid or duly provided for, on any Interest Payment Date for Securities of that series shall
be paid to the Person in whose name said Security (or one or more Predecessor Securities) is registered at the close of business
on the regular record date for such interest installment. In the event that any Security of a particular series or portion thereof
is called for redemption and the redemption date is subsequent to a regular record date with respect to any Interest Payment Date
and prior to such Interest Payment Date, interest on such Security will be paid upon presentation and surrender of such Security
as provided in Section 3.03.

 

Any interest on any Security that is payable,
but is not punctually paid or duly provided for, on any Interest Payment Date for Securities of the same series (herein called
 “Defaulted Interest”) shall forthwith cease to be payable to the registered holder on the relevant regular record date
by virtue of having been such holder; and such Defaulted Interest shall be paid by the Company, at its election, as provided in
clause (1) or clause (2) below:

 

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(1)            
The Company may make payment of any Defaulted Interest on Securities to the Persons in whose names 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 money when
deposited to be held in trust for the benefit of the Persons entitled to such Defaulted Interest as in this clause provided. Thereupon
the Trustee shall fix a special record date for the payment of such Defaulted Interest which shall not be more than 15 nor less
than 10 days prior to the date of the proposed payment and not less than 10 days after the receipt by the Trustee of the notice
of the proposed payment. The Trustee shall promptly notify the Company of such special record date and, in the name and at the
expense of the Company, shall cause notice of the proposed payment of such Defaulted Interest and the special record date therefor
to be mailed, first class postage prepaid, to each Securityholder at his or her address as it appears in the Security Register
(as hereinafter defined), not less than 10 days prior to such special record date. Notice of the proposed payment of such Defaulted
Interest and the special record date therefor having been mailed as aforesaid, such Defaulted Interest shall be paid to the Persons
in whose names such Securities (or their respective Predecessor Securities) are registered on such special record date.

 

(2)            
The Company may make payment of any Defaulted Interest on any Securities 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.

 

Unless otherwise set forth in a Board Resolution
or one or more indentures supplemental hereto establishing the terms of any series of Securities pursuant to Section 2.01 hereof,
the term “regular record date” as used in this Section with respect to a series of Securities with respect to any Interest
Payment Date for such series shall mean either the fifteenth day of the month immediately preceding the month in which an Interest
Payment Date established for such series pursuant to Section 2.01 hereof shall occur, if such Interest Payment Date is the first
day of a month, or the last day of the month immediately preceding the month in which an Interest Payment Date established for
such series pursuant to Section 2.01 hereof shall occur, if such Interest Payment Date is the fifteenth day of a month, whether
or not such date is a Business Day.

 

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

 

Section
2.04      Execution
and Authentications.

 

The Securities shall be signed on behalf
of the Company by its Chairman, Vice Chairman, Chief Executive Officer, President, Chief Financial Officer, Chief Operating Officer,
or one of its Executive Vice Presidents or Senior Vice Presidents, or its Treasurer, or one of its Assistant Treasurers, or its
Secretary, or one of its Assistant Secretaries, under its corporate seal attested by its Secretary or one of its Assistant Secretaries.
The Company may use the facsimile signature of any Person who were at any time proper officers of the Company notwithstanding the
fact that at the time the Securities shall be authenticated and delivered or disposed of such Person shall have ceased to hold
such office. The seal of the Company may be in the form of a facsimile of such seal and may be impressed, affixed, imprinted or
otherwise reproduced on the Securities. The Securities may contain such notations, legends or endorsements required by law, stock
exchange rule or usage. Each Security shall be dated the date of its authentication by the Trustee.

 

No Security shall be valid until authenticated
manually by an authorized signatory of the Trustee, or by an Authenticating Agent. Such signature shall be conclusive evidence
that the Security so authenticated has been duly authenticated and delivered hereunder and that the holder is entitled to the benefits
of this Indenture. At any time and from time to time after the execution and delivery of this Indenture, the Company may deliver
Securities of any series executed by the Company to the Trustee for authentication, together with a written order of the Company
for the authentication and delivery of such Securities, signed by an authorized officer and its Secretary or any Assistant Secretary,
and the Trustee in accordance with such written order shall authenticate and deliver such Securities.

 

    6

     

    

 

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 Section 7.01) shall be fully protected in relying upon, an Opinion of Counsel stating that the form and terms thereof
have been established in conformity with the provisions of this Indenture.

 

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

 

Section
2.05      Registration
of Transfer and Exchange.

 

(a)          
Securities of any series may be exchanged upon presentation thereof at the office or agency of the Company designated for
such purpose in the United States, for other Securities of such series of authorized denominations, and for a like aggregate principal
amount, upon payment of a sum sufficient to cover any tax or other governmental charge in relation thereto, all as provided in
this Section. In respect of any Securities so surrendered for exchange, the Company shall execute, the Trustee shall authenticate
and such office or agency shall deliver in exchange therefor the Security or Securities of the same series that the Securityholder
making the exchange shall be entitled to receive, bearing numbers not contemporaneously outstanding.

 

(b)          
The Company shall keep, or cause to be kept, at its office or agency designated for such purpose in the United States, or
such other location designated by the Company a register or registers (herein referred to as the “Security Register”)
in which, subject to such reasonable regulations as it may prescribe, the Company shall register the Securities and the transfers
of Securities as in this Article provided and which at all reasonable times shall be open for inspection by the Trustee. The registrar
for the purpose of registering Securities and transfer of Securities as herein provided shall be appointed as authorized by a Board
Resolution (the “Security Registrar”).

 

Upon surrender for transfer of any Security
at the office or agency of the Company designated for such purpose, the Company shall execute, the Trustee shall authenticate and
such office or agency shall deliver in the name of the transferee or transferees a new Security or Securities of the same series
as the Security presented for a like aggregate principal amount.

 

All Securities presented or surrendered
for exchange or registration of transfer, as provided in this Section, shall be accompanied (if so required by the Company or the
Security Registrar) by a written instrument or instruments of transfer, in form satisfactory to the Company or the Security Registrar,
duly executed by the registered holder or by such holder’s duly authorized attorney in writing.

 

(c)          
No service charge shall be made for any exchange or registration of transfer of Securities, or issue of new Securities in
case of partial redemption of any series, but the Company may require payment of a sum sufficient to cover any tax or other governmental
charge in relation thereto, other than exchanges pursuant to Section 2.06, Section 3.03(b) and Section 9.04 not involving any transfer.

 

(d)          
The Company shall not be required (1) to issue, exchange or register the transfer of any Securities during a period beginning
at the opening of business 15 days before the day of the mailing of a notice of redemption of less than all the Outstanding Securities
of the same series and ending at the close of business on the day of such mailing, nor (2) to register the transfer of or exchange
any Securities of any series or portions thereof called for redemption. The provisions of this Section 2.05 are, with respect to
any Global Security, subject to Section 2.11 hereof.

 

    7

     

    

 

Section
2.06      Temporary
Securities.

 

Pending the preparation of definitive Securities
of any series, the Company may execute, and the Trustee shall authenticate and deliver, temporary Securities (printed, lithographed
or typewritten) of any authorized denomination. Such temporary Securities shall be substantially in the form of the definitive
Securities in lieu of which they are issued, but with such omissions, insertions and variations as may be appropriate for temporary
Securities, all as may be determined by the Company. Every temporary Security of any series shall be executed by the Company and
be authenticated by the Trustee upon the same conditions and in substantially the same manner, and with like effect, as the definitive
Securities of such series. Without unnecessary delay the Company will execute and will furnish definitive Securities of such series
and thereupon any or all temporary Securities of such series may be surrendered in exchange therefor (without charge to the holders),
at the office or agency of the Company designated for the purpose in the United States, and the Trustee shall authenticate and
such office or agency shall deliver in exchange for such temporary Securities an equal aggregate principal amount of definitive
Securities of such series, unless the Company advises the Trustee to the effect that definitive Securities need not be executed
and furnished until further notice from the Company. Until so exchanged, the temporary Securities of such series shall be entitled
to the same benefits under this Indenture as definitive Securities of such series authenticated and delivered hereunder.

 

Section
2.07      Mutilated,
Destroyed, Lost or Stolen Securities.

 

In case any temporary or definitive Security
shall become mutilated or be destroyed, lost or stolen, the Company (subject to the next succeeding sentence) shall execute, and
upon the Company’s request, the Trustee (subject as aforesaid) shall authenticate and deliver, a new Security of the same
series, bearing a number not contemporaneously outstanding, in exchange and substitution for the mutilated Security, or in lieu
of and in substitution for the Security so destroyed, lost or stolen. In every case the applicant for a substituted Security shall
furnish to the Company and the Trustee such security or indemnity as may be required by them to save each of them harmless, and,
in every case of destruction, loss or theft, the applicant shall also furnish to the Company and the Trustee evidence to their
satisfaction of the destruction, loss or theft of the applicant’s Security and of the ownership thereof. The Trustee may
authenticate any such substituted Security and deliver the same upon the written request or authorization of any officer of the
Company. Upon the issuance of any substituted Security, the Company may require the payment of a sum sufficient to cover any tax
or other governmental charge that may be imposed in relation thereto and any other expenses (including the fees and expenses of
the Trustee) connected therewith. In case any Security that has matured or is about to mature shall become mutilated or be destroyed,
lost or stolen, the Company may, instead of issuing a substitute Security, pay or authorize the payment of the same (without surrender
thereof except in the case of a mutilated Security) if the applicant for such payment shall furnish to the Company and the Trustee
such security or indemnity as they may require to save each of them harmless, and, in case of destruction, loss or theft, evidence
to the satisfaction of the Company and the Trustee of the destruction, loss or theft of such Security and of the ownership thereof.

 

Every replacement Security issued pursuant
to the provisions of this Section shall constitute an additional contractual obligation of the Company, whether or not the mutilated,
destroyed, lost or stolen Security shall be found at any time, or be enforceable by anyone, and shall be entitled to all the benefits
of this Indenture equally and proportionately with any and all other Securities of the same series duly issued hereunder. All Securities
shall be held and owned upon the express condition that the foregoing provisions are exclusive with respect to the replacement
or payment of mutilated, destroyed, lost or stolen Securities, and shall preclude (to the extent lawful) any and all other rights
or remedies, notwithstanding any law or statute existing or hereafter enacted to the contrary with respect to the replacement or
payment of negotiable instruments or other securities without their surrender.

 

Section
2.08      Cancellation.

 

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

 

    8

     

    

 

Section
2.09      Benefits
of Indenture.

 

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

 

Section
2.10      Authenticating
Agent.

 

So long as any of the Securities of any
series remain Outstanding there may be an Authenticating Agent for any or all such series of Securities which the Trustee shall
have the right to appoint. Said Authenticating Agent shall be authorized to act on behalf of the Trustee to authenticate Securities
of such series issued upon exchange, transfer or partial redemption thereof, 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.
All references in this Indenture to the authentication of Securities by the Trustee shall be deemed to include authentication by
an Authenticating Agent for such series. Each Authenticating Agent shall be acceptable to the Company and shall be a corporation
that has a combined capital and surplus, as most recently reported or determined by it, sufficient under the laws of any jurisdiction
under which it is organized or in which it is doing business to conduct a trust business, and that is otherwise authorized under
such laws to conduct such business and is subject to supervision or examination by Federal or State authorities. If at any time
any Authenticating Agent shall cease to be eligible in accordance with these provisions, it shall resign immediately.

 

Any Authenticating Agent may at any time
resign by giving written notice of resignation to the Trustee, to the Company. The Trustee may at any time (and upon request by
the Company shall) terminate the agency of any Authenticating Agent by giving written notice of termination to such Authenticating
Agent, to the Company. Upon resignation, termination or cessation of eligibility of any Authenticating Agent, the Trustee may appoint
an eligible successor Authenticating Agent acceptable to the Company. Any successor Authenticating Agent, upon acceptance of its
appointment hereunder, shall become vested with all the rights, powers and duties of its predecessor hereunder as if originally
named as an Authenticating Agent pursuant hereto.

 

Section
2.11      Global
Securities.

 

(a)           
If the Company shall establish pursuant to Section 2.01 that the Securities of a particular series are to be issued as a
Global Security, then the Company shall execute and the Trustee shall, in accordance with Section 2.04, authenticate and deliver,
a Global Security that (1) shall represent, and shall be denominated in an amount equal to the aggregate principal amount of, all
of the Outstanding Securities of such series, (2) shall be registered in the name of the Depositary or its nominee, (3) shall be
delivered by the Trustee to the Depositary or pursuant to the Depositary’s instruction and (4) shall bear a legend substantially
to the following effect: “Except as otherwise provided in Section 2.11 of the Indenture, this Security may be transferred,
in whole but not in part, only to another nominee of the Depositary or to a successor Depositary or to a nominee of such successor
Depositary.”

 

(b)          
Notwithstanding the provisions of Section 2.05, the Global Security of a series may be transferred, in whole but not in
part and in the manner provided in Section 2.05, only to another nominee of the Depositary for such series, or to a successor Depositary
for such series selected or approved by the Company or to a nominee of such successor Depositary.

 

(c)           
If at any time the Depositary for a series of the Securities notifies the Company that it is unwilling or unable to continue
as Depositary for such series or if at any time the Depositary for such series shall no longer be registered or in good standing
under the Exchange Act, or other applicable statute or regulation, and a successor Depositary for such series is not appointed
by the Company within 90 days after the Company receives such notice or becomes aware of such condition, as the case may be, this
Section 2.11 shall no longer be applicable to the Securities of such series and the Company will execute and, subject to Section
2.05, the Trustee will authenticate and deliver the Securities of such series in definitive registered form without coupons, in
authorized denominations, and in an aggregate principal amount equal to the principal amount of the Global Security of such series
in exchange for such Global Security. In addition, the Company may at any time determine that the Securities of any series shall
no longer be represented by a Global Security and that the provisions of this Section 2.11 shall no longer apply to the Securities
of such series. In such event the Company will execute and, subject to Section 2.05, the Trustee, upon receipt of an Officers’
Certificate evidencing such determination by the Company, will authenticate and deliver the Securities of such series in definitive
registered form without coupons, in authorized denominations, and in an aggregate principal amount equal to the principal amount
of the Global Security of such series in exchange for such Global Security. Upon the exchange of the Global Security for such Securities
in definitive registered form without coupons, in authorized denominations, the Global Security shall be canceled by the Trustee.
Such Securities in definitive registered form issued in exchange for the Global Security pursuant to this Section 2.11(c) shall
be registered in such names and in such authorized denominations as the Depositary, pursuant to instructions from its direct or
indirect participants or otherwise, shall instruct the Trustee. The Trustee shall deliver such Securities to the Depositary for
delivery to the Persons in whose names such Securities are so registered.

 

    9

     

    

 

Article
III

REDEMPTION OF SECURITIES AND SINKING FUND PROVISIONS

 

Section
3.01      Redemption.

 

The Company may redeem the Securities of
any series issued hereunder on and after the dates and in accordance with the terms established for such series pursuant to Section
2.01 hereof.

 

Section
3.02      Notice
of Redemption.

 

(a)           
In case the Company shall desire to exercise such right to redeem all or, as the case may be, a portion of the Securities
of any series in accordance with the right reserved so to do, the Company shall, or shall cause the Trustee to, give notice of
such redemption to holders of the Securities of such series to be redeemed by mailing, first class postage prepaid, a notice of
such redemption not less than 30 days and not more than 90 days before the date fixed for redemption of that series to such holders
at their last addresses as they shall appear upon the Security Register unless a shorter period is specified in the Securities
to be redeemed. Any notice that is mailed in the manner herein provided shall be conclusively presumed to have been duly given,
whether or not the registered holder receives the notice. In any case, failure duly to give such notice to the holder of any Security
of any series designated for redemption in whole or in part, or any defect in the notice, shall not affect the validity of the
proceedings for the redemption of any other Securities of such series or any other series. In the case of any redemption of Securities
prior to the expiration of any restriction on such redemption provided in the terms of such Securities or elsewhere in this Indenture,
the Company shall furnish the Trustee with an Officers’ Certificate evidencing compliance with any such restriction.

 

Each such notice of redemption shall specify
the date fixed for redemption and the redemption price at which Securities of that series are to be redeemed, and shall state that
payment of the redemption price of such Securities to be redeemed will be made at the office or agency of the Company in the United
States, upon presentation and surrender of such Securities, that interest accrued to the date fixed for redemption will be paid
as specified in said notice, that from and after said date interest will cease to accrue and that the redemption is for a sinking
fund, if such is the case. If less than all the Securities of a series are to be redeemed, the notice to the holders of Securities
of that series to be redeemed in whole or in part shall specify the particular Securities to be so redeemed. In case any Security
is to be redeemed in part only, the notice that relates to such Security shall state the portion of the principal amount thereof
to be redeemed, and shall state that on and after the redemption date, upon surrender of such Security, a new Security or Securities
of such series in principal amount equal to the unredeemed portion thereof will be issued.

 

(b)          
If less than all the Securities of a series are to be redeemed, the Company shall give the Trustee at least 45 days’
notice in advance of the date fixed for redemption as to the aggregate principal amount of Securities of the series to be redeemed,
and thereupon the Trustee shall select, by lot or in such other manner as it shall deem appropriate and fair in its discretion
and that may provide for the selection of a portion or portions (equal to one thousand U.S. dollars ($1,000) or any integral multiple
thereof) of the principal amount of such Securities of a denomination larger than $1,000, the Securities to be redeemed and shall
thereafter promptly notify the Company in writing of the numbers of the Securities to be redeemed, in whole or in part. The Company
may, if and whenever it shall so elect, by delivery of instructions signed on its behalf by its Chairman, Vice Chairman, Chief
Executive Officer, President, Chief Financial Officer, Chief Operating Officer, or any Executive Vice President or Senior Vice
President, instruct the Trustee or any paying agent to call all or any part of the Securities of a particular series for redemption
and to give notice of redemption in the manner set forth in this Section, such notice to be in the name of the Company or its own
name as the Trustee or such paying agent may deem advisable. In any case in which notice of redemption is to be given by the Trustee
or any such paying agent, the Company shall deliver or cause to be delivered to, or permit to remain with, the Trustee or such
paying agent, as the case may be, such Security Register, transfer books or other records, or suitable copies or extracts therefrom,
sufficient to enable the Trustee or such paying agent to give any notice by mail that may be required under the provisions of this
Section.

 

    10

     

    

 

Section
3.03      Payment
Upon Redemption.

 

(a)           
If the giving of notice of redemption shall have been completed as above provided, the Securities or portions of Securities
of the series to be redeemed specified in such notice shall become due and payable on the date and at the place stated in such
notice at the applicable redemption price, together with interest accrued to the date fixed for redemption and interest on such
Securities or portions of Securities shall cease to accrue on and after the date fixed for redemption, unless the Company shall
default in the payment of such redemption price and accrued interest with respect to any such Security or portion thereof. On presentation
and surrender of such Securities on or after the date fixed for redemption at the place of payment specified in the notice, said
Securities shall be paid and redeemed at the applicable redemption price for such series, together with interest accrued thereon
to the date fixed for redemption (but if the date fixed for redemption is an interest payment date, the interest installment payable
on such date shall be payable to the registered holder at the close of business on the applicable record date pursuant to Section
2.03).

 

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

 

Section
3.04      Sinking
Fund.

 

The provisions of Sections 3.04, 3.05 and
3.06 shall be applicable to any sinking fund for the retirement of Securities of a series, except as otherwise specified as contemplated
by Section 2.01 for Securities of such series. The minimum amount of any sinking fund payment provided for by the terms of Securities
of any series is herein referred to as a “mandatory sinking fund payment,” and any payment in excess of such minimum
amount provided for by the terms of Securities of any series is herein referred to as an “optional sinking fund payment”.
If provided for by the terms of Securities of any series, the cash amount of any sinking fund payment may be subject to reduction
as provided in Section 3.05. Each sinking fund payment shall be applied to the redemption of Securities of any series as provided
for by the terms of Securities of such series.

 

Section
3.05      Satisfaction
of Sinking Fund Payments with Securities.

 

The Company (a) may deliver Outstanding
Securities of a series (other than any Securities previously called for redemption) and (b) may apply as a credit Securities of
a series that have been redeemed either at the election of the Company pursuant to the terms of such Securities or through the
application of permitted optional sinking fund payments pursuant to the terms of such Securities, in each case in satisfaction
of all or any part of any sinking fund payment with respect to the Securities of such series required to be made pursuant to the
terms of such Securities, provided that such Securities have not been previously so credited. Such Securities shall be received
and credited for such purpose by the Trustee at the redemption price specified in such Securities for redemption through operation
of the sinking fund and the amount of such sinking fund payment shall be reduced accordingly.

 

Section
3.06      Redemption
of Securities for Sinking Fund.

 

Not less than 45 days prior to each sinking
fund payment date for any series of Securities, the Company will deliver to the Trustee an Officers’ Certificate specifying
the amount of the next ensuing sinking fund payment for that series pursuant to the terms of the series, the portion thereof, if
any, that is to be satisfied by delivering and crediting Securities of that series pursuant to Section 3.05 and the basis for such
credit and will, together with such Officers’ Certificate, deliver to the Trustee any Securities to be so delivered. Not
less than 30 days before each such sinking fund payment date the Trustee shall select the Securities to be redeemed upon such sinking
fund payment date in the manner specified in Section 3.02 and cause notice of the redemption thereof to be given in the name of
and at the expense of the Company in the manner provided in Section 3.02. Such notice having been duly given, the redemption of
such Securities shall be made upon the terms and in the manner stated in Section 3.03.

 

    11

     

    

 

Article
IV

COVENANTS

 

Section
4.01      Payment
of Principal, Premium and Interest.

 

The Company will duly and punctually pay
or cause to be paid the principal of (and premium, if any) and interest on the Securities of that series at the time and place
and in the manner provided herein and established with respect to such Securities.

 

Section
4.02      Maintenance
of Office or Agency.

 

So long as any series of the Securities
remain Outstanding, the Company agrees to maintain an office or agency in the United States, with respect to each such series and
at such other location or locations as may be designated as provided in this Section 4.02, where (a) Securities of that series
may be presented for payment, (b) Securities of that series may be presented as herein above authorized for registration of transfer
and exchange, and (c) notices and demands to or upon the Company in respect of the Securities of that series and this Indenture
may be given or served, such designation to continue with respect to such office or agency until the Company shall, by written
notice signed by its Chairman, Vice Chairman, Chief Executive Officer, President, Chief Financial Officer, Chief Operating Officer,
or an Executive Vice President or Senior Vice President and delivered to the Trustee, designate some other office or agency for
such purposes or any of them. If at any time the Company shall fail to maintain any such required office or agency or shall fail
to furnish the Trustee with the address thereof, such presentations, notices and demands may be made or served at the Corporate
Trust Office of the Trustee, and the Company hereby appoints the Trustee as its agent to receive all such presentations, notices
and demands.

 

Section
4.03      Paying
Agents.

 

(a)           
If the Company shall appoint one or more paying agents for all or any series of the Securities, other than the Trustee,
the Company will cause each such paying agent to execute and deliver to the Trustee an instrument in which such agent shall agree
with the Trustee, subject to the provisions of this Section:

 

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

 

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

 

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

 

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

 

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

 

    12

     

    

 

(c)           
Notwithstanding anything in this Section to the contrary, (1) the agreement to hold sums in trust as provided in this Section
is subject to the provisions of Section 11.05, and (2) the Company may at any time, for the purpose of obtaining the satisfaction
and discharge of this Indenture or for any other purpose, pay, or direct any paying agent to pay, to the Trustee all sums held
in trust by the Company or such paying agent, such sums to be held by the Trustee upon the same terms and conditions as those upon
which such sums were held by the Company or such paying agent; and, upon such payment by any paying agent to the Trustee, such
paying agent shall be released from all further liability with respect to such money.

 

Section
4.04      Appointment
to Fill Vacancy in Office of Trustee.

 

The Company, whenever necessary to avoid
or fill a vacancy in the office of Trustee, will appoint, in the manner provided in Section 7.10, a Trustee, so that there shall
at all times be a Trustee hereunder.

 

Article
V

SECURITYHOLDERS’ LISTS AND REPORTS

BY THE COMPANY AND THE TRUSTEE

 

Section
5.01      Company
to Furnish Trustee Names and Addresses of Securityholders.

 

The Company will furnish or cause to be
furnished to the Trustee (a) on each regular record date (as defined in Section 2.03), but in each case will be no more than six
months apart, a list, in such form as the Trustee may reasonably require, of the names and addresses of the holders of each series
of Securities as of such regular record date, provided that the Company shall not be obligated to furnish or cause to be furnished
such list at any time that the list shall not differ in any respect from the most recent list furnished to the Trustee by the Company
and at such other times as the Trustee may request in writing within 30 days after the receipt by the Company of any such request,
a list of similar form and content as of a date not more than 15 days prior to the time such list is furnished; provided, however,
that, in either case, no such list need be furnished for any series for which the Trustee shall be the Security Registrar.

 

Section
5.02      Preservation
Of Information; Communications With Securityholders.

 

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

 

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

 

(c)           
Securityholders may communicate as provided in Section 312(b) of the Trust Indenture Act with other Securityholders with
respect to their rights under this Indenture or under the Securities. The Company, the Trustee, the Security Registrar and any
other Person shall have the protection of the Trust Indenture Act Section 312(c).

 

Section
5.03      Reports
by the Company.

 

(a)          
The Company covenants and agrees to file with the Trustee, within 15 days after the Company files 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) that the Company may be required to file with the Commission
pursuant to Section 13 or Section 15(d) of the Exchange Act; or, if the Company is not required to file information, documents
or reports pursuant to either of such sections, then to file with the Trustee and the Commission, in accordance with the rules
and regulations prescribed from time to time by the Commission, such of the supplementary and periodic information, documents and
reports that may be required pursuant to Section 13 of the Exchange Act, in respect of a security listed and registered on a national
securities exchange as may be prescribed from time to time in such rules and regulations.

 

    13

     

    

 

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

 

(c)          
The Company covenants and agrees to transmit by mail, first class postage prepaid, or reputable overnight delivery service
that provides for evidence of receipt, to the Securityholders, as their names and addresses appear upon 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 subsections (a) and (b) of this Section as may be required by rules and regulations prescribed
from time to time by the Commission.

 

Section
5.04      Reports
by the Trustee.

 

(a)          
On or before [ ] in each year in which any of the Securities are Outstanding, the Trustee shall transmit by mail, first
class postage prepaid, to the Securityholders, as their names and addresses appear upon the Security Register, a brief report dated
as of the preceding [ ], if and to the extent required under Section 313(a) of the Trust Indenture Act.

 

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

 

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

 

(d)           
If an Event of Default occurs and is continuing and the Trustee receives actual notice of such Event of Default, the Trustee
shall mail to each Securityholder notice of the uncured Event of Default within 90 days after the occurrence thereof. Except in
the case of an Event of Default in payment of principal of, or interest on, any Securities, or in the payment of any sinking or
purchase fund installment, the Trustee may withhold the 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.

 

Article
VI

REMEDIES OF THE TRUSTEE AND SECURITYHOLDERS ON EVENT OF DEFAULT

 

Section
6.01      Events
of Default.

 

(a)           
Whenever used herein with respect to Securities of a particular series, “Event of Default” means any one or
more of the following events that has occurred and is continuing:

 

(1)            
the Company defaults in the payment of any installment of interest upon any of the Securities of that series, as and when
the same shall become due and payable, and such default continues for a period of 90 days; provided, however, that a valid extension
of an interest payment period by the Company in accordance with the terms of any indenture supplemental hereto, shall not constitute
a default in the payment of interest for this purpose;

 

(2)            
the Company defaults in the payment of the principal of (or premium, if any, on) any of the Securities of that series as
and when the same shall become due and payable whether at maturity, upon redemption, by declaration or otherwise, or in any payment
required by any sinking or analogous fund established with respect to that series; provided, however, that a valid extension of
the maturity of such Securities in accordance with the terms of any indenture supplemental hereto shall not constitute a default
in the payment of principal or premium, if any;

 

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(3)            
the Company fails to observe or perform any other of its covenants or agreements with respect to that series contained in
this Indenture or otherwise established with respect to that series of Securities pursuant to Section 2.01 hereof (other than a
covenant or agreement that has been expressly included in this Indenture solely for the benefit of one or more series of Securities
other than such series) for a period of 90 days after the date on which written notice of such failure, requiring the same to be
remedied and stating that such notice is a “Notice of Default” hereunder, shall have been given to the Company by the
Trustee, by registered or certified mail, or to the Company and the Trustee by the holders of at least 25% in principal amount
of the Securities of that series at the time Outstanding;

 

(4)            
the Company pursuant to or within the meaning of any Bankruptcy Law (i) commences a voluntary case, (ii) consents to the
entry of an order for relief against it in an involuntary case, (iii) consents to the appointment of a Custodian of it or for all
or substantially all of its property or (iv) makes a general assignment for the benefit of its creditors; or

 

(5)            
a court of competent jurisdiction enters an order under any Bankruptcy Law that (i) is for relief against the Company in
an involuntary case, (ii) appoints a Custodian of the Company for all or substantially all of its property or (iii) orders the
liquidation of the Company, and the order or decree remains unstayed and in effect for 90 days.

 

(b)           
In each and every such case, unless the principal of all the Securities of that series shall have already become due and
payable, either the Trustee or the holders of not less than 25% in aggregate principal amount of the Securities of that series
then Outstanding hereunder, by notice in writing to the Company (and to the Trustee if given by such Securityholders), may declare
the principal of all the Securities of that series to be due and payable immediately, and upon any such declaration the same shall
become and shall be immediately due and payable.

 

(c)           
At any time after the principal of the Securities of that series shall have been so declared due and payable, and before
any judgment or decree for the payment of the moneys due shall have been obtained or entered as hereinafter provided, the holders
of a majority in aggregate principal amount of the Securities of that series then Outstanding hereunder, by written notice to the
Company and the Trustee, may rescind and annul such declaration and its consequences if: (1) the Company has paid or deposited
with the Trustee a sum sufficient to pay all matured installments of interest upon all the Securities of that series and the principal
of (and premium, if any, on) all Securities of that series that shall have become due otherwise than by acceleration (with interest
upon such principal and premium, if any, and, to the extent that such payment is enforceable under applicable law, upon overdue
installments of interest, at the rate per annum expressed in the Securities of that series to the date of such payment or deposit)
and any amount payable to the Trustee under Section 7.06, and (2) any and all other Events of Default under the Indenture with
respect to such series, other than the nonpayment of principal on Securities of that series that shall not have become due by their
terms, shall have been remedied or waived as provided in Section 6.06.

 

No such rescission and annulment shall extend
to or shall affect any subsequent default or impair any right consequent thereon.

 

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

 

Section
6.02      Suits
for Enforcement by Trustee.

 

(a)           
If an Event of Default specified in Section 6.01(a)(1) or (2) hereof occurs and is continuing, the Trustee, in its own name
and as trustee of an express trust, shall be entitled and empowered to institute any action or proceedings at law or in equity
for the collection of the sums so due and unpaid, and may prosecute any such action or proceeding to judgment or final decree,
and may enforce any such judgment or final decree against the Company or any other obligor upon the Securities of that series and
collect the moneys adjudged or decreed to be payable in the manner provided by law out of the property of the Company or any other
obligor upon the Securities of that series, wherever situated.

 

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(b)           In
case of any receivership, insolvency, liquidation, bankruptcy, reorganization, readjustment, arrangement, composition or judicial
proceedings affecting the Company, or its creditors or property, the Trustee shall have power to intervene in such proceedings
and take any action therein that may be permitted by the court and shall (except as may be otherwise provided by law) be entitled
to file such proofs of claim and other papers and documents as may be necessary or advisable in order to have the claims of the
Trustee and of the holders of Securities of a series allowed for the entire amount due and payable by the Company under this Indenture
at the date of institution of such proceedings and for any additional amount that may become due and payable by the Company after
such date, and to collect and receive any moneys or other property payable or deliverable on any such claim, and to distribute
the same after the deduction of the amount payable to the Trustee under Section 7.06; and any receiver, assignee or trustee in
bankruptcy or reorganization is hereby authorized by each of the holders of Securities of such series to make such payments to
the Trustee, and, in the event that the Trustee shall consent to the making of such payments directly to such Securityholders,
to pay to the Trustee any amount due it under Section 7.06.

 

(c)           All
rights of action and of asserting claims under this Indenture, or under any of the terms established with respect to Securities
of a series, may be enforced by the Trustee without the possession of any of such Securities, or the production thereof at any
trial or other proceeding relative thereto, and any such suit or proceeding instituted by the Trustee shall be brought in its
own name as trustee of an express trust, and any recovery of judgment shall, after provision for payment to the Trustee of any
amounts due under Section 7.06, be for the ratable benefit of the holders of the Securities of such series.

 

In case of an Event of Default hereunder,
the Trustee may in its discretion proceed to protect and enforce the rights vested in it by this Indenture by such appropriate
judicial proceedings as the Trustee shall deem most effectual to protect and enforce any of such rights, either at law or in equity
or in bankruptcy or otherwise, whether for the specific enforcement of any covenant or agreement contained in this Indenture or
in aid of the exercise of any power granted in this Indenture, or to enforce any other legal or equitable right vested in the Trustee
by this Indenture or by law.

 

Nothing contained herein shall be deemed
to authorize the Trustee to authorize or consent to or accept or adopt on behalf of any Securityholder any plan of reorganization,
arrangement, adjustment or composition affecting the Securities of that series 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
6.03    Application
of Moneys Collected.

 

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

 

FIRST: To the payment of costs
and expenses of collection and of all amounts payable to the Trustee under Section 7.06;

 

SECOND: To the payment of all
Senior Indebtedness of the Company if and to the extent required by ARTICLE XIV; and

 

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

 

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Section
6.04      Limitation
on Suits.

 

No holder of any Security of any series
shall have any right by virtue or by availing of any provision of this Indenture to institute any suit, action or proceeding in
equity or at law upon or under or with respect to this Indenture or for the appointment of a receiver or trustee, or for any other
remedy hereunder, unless (a) such holder previously shall have given to the Trustee written notice of an Event of Default and of
the continuance thereof with respect to the Securities of such series specifying such Event of Default, as hereinbefore provided;
(b) the holders of not less than 25% in aggregate principal amount of the Securities of such series then Outstanding shall have
made written request upon the Trustee to institute such action, suit or proceeding in its own name as trustee hereunder; (c) such
holder or holders shall have offered to the Trustee such reasonable indemnity as it may require against the costs, expenses and
liabilities to be incurred therein or thereby; (d) the Trustee for 60 days after its receipt of such notice, request and offer
of indemnity, shall have failed to institute any such action, suit or proceeding; and (e) during such 60-day period, the holders
of a majority in principal amount of the Securities of that series shall not have given the Trustee a direction inconsistent with
the request.

 

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

 

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

 

(a)           All
powers and remedies given by this Article to the Trustee or to the Securityholders shall, to the extent permitted by law, be deemed
cumulative and not exclusive of any other powers and remedies available to the Trustee or the holders of the Securities, by judicial
proceedings or otherwise, to enforce the performance or observance of the covenants and agreements contained in this Indenture
or otherwise established with respect to such Securities.

 

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

 

Section
6.06     Control
by Securityholders.

 

The holders of a majority in aggregate principal
amount of the Securities of any series at the time Outstanding, determined in accordance with Section 8.01, shall have the right
to direct the time, method and place of conducting any proceeding for any remedy available to the Trustee, or exercising any trust
or power conferred on the Trustee with respect to such series; provided, however, that such direction shall not be in conflict
with any rule of law or with this Indenture or be unduly prejudicial to the rights of holders of Securities of any other series
at the time Outstanding determined in accordance with Section 8.01. Subject to the provisions of Section 7.01, the Trustee shall
have the right to decline to follow any such direction if the Trustee in good faith shall, by a Responsible Officer or Officers
of the Trustee, determine that the proceeding so directed would involve the Trustee in personal liability. The holders of a majority
in aggregate principal amount of the Securities of any series at the time Outstanding affected thereby, determined in accordance
with Section 8.01, may on behalf of the holders of all of the Securities of such series waive any past default in the performance
of any of the covenants contained herein or established pursuant to Section 2.01 with respect to such series and its consequences,
except an uncured default in the payment of the principal of (or premium, if any) or interest on, any of the Securities of that
series as and when the same shall become due by the terms of such Securities otherwise than by acceleration (unless such default
has been cured and a sum sufficient to pay all matured installments of interest and principal and any premium has been deposited
with the Trustee (in accordance with Section 6.01(c)). Upon any such waiver, the default covered thereby shall be deemed to be
cured for all purposes of this Indenture and the Company, the Trustee and the holders of the Securities of such series shall be
restored to their former positions and rights hereunder, respectively; but no such waiver shall extend to any subsequent or other
default or impair any right consequent thereon.

 

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Section
6.07     Undertaking
to Pay Costs.

 

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

 

Article
VII

CONCERNING THE TRUSTEE

 

Section
7.01     Certain
Duties and Responsibilities of Trustee.

 

(a)           The
Trustee, prior to the occurrence of an Event of Default with respect to the Securities of a series and after the curing of all
Events of Default with respect to the Securities of that series that may have occurred, shall undertake to perform with respect
to the Securities of such series such duties and only such duties as are specifically set forth in this Indenture, and no implied
covenants shall be read into this Indenture against the Trustee. In case an Event of Default with respect to the Securities of
a series has occurred (that has not been cured or waived), the Trustee shall exercise with respect to Securities of that 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.

 

(b)           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:

 

(1)           prior
to the occurrence of an Event of Default with respect to the Securities of a series and after the curing or waiving of all such
Events of Default with respect to that series that may have occurred:

 

(2)           the
duties and obligations of the Trustee shall with respect to the Securities of such series be determined solely by the express
provisions of this Indenture, and the Trustee shall not be liable with respect to the Securities of such series except for the
performance of such duties and obligations as are specifically set forth in this Indenture, and no implied covenants or obligations
shall be read into this Indenture against the Trustee; and

 

(3)           in the absence of bad faith on the part of the Trustee, the Trustee may with respect to the Securities of such series conclusively
rely, as to the truth of the statements and the correctness of the opinions expressed therein, upon any certificates or opinions
furnished to the Trustee and conforming to the requirements of this Indenture; but in the case of any such certificates or opinions
that 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 to the requirements of this Indenture;

 

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

 

(5)           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 Securities of any series at the time Outstanding
relating to the time, method and place of conducting any proceeding for any remedy available to the Trustee, or exercising any
trust or power conferred upon the Trustee under this Indenture with respect to the Securities of that series; and

 

(6)          
none of the provisions contained in this Indenture shall require the Trustee to expend or risk its own funds or otherwise
incur personal financial liability in the performance of any of its duties or in the exercise of any of its rights or powers, if
there is reasonable ground for believing that the repayment of such funds or liability is not reasonably assured to it under the
terms of this Indenture or adequate indemnity against such risk is not reasonably assured to it.

 

Section
7.02     Certain
Rights of Trustee.

 

Except as otherwise provided in Section
7.01:

 

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

 

(b)           Any
request, direction, order or demand of the Company mentioned herein shall be sufficiently evidenced by a Board Resolution or an
instrument signed in the name of the Company, by the Chairman, Vice Chairman, Chief Executive Officer, President, Executive Vice
President or any Senior Vice President and by the Secretary or an Assistant Secretary or the Treasurer or an Assistant Treasurer
thereof (unless other evidence in respect thereof is specifically prescribed herein);

 

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

 

(d)           The
Trustee shall be under no obligation to exercise any of the rights or powers vested in it by this Indenture at the request, order
or direction of any of the Securityholders, pursuant to the provisions of this Indenture, unless such Securityholders shall have
offered to the Trustee reasonable security or indemnity against the costs, expenses and liabilities that may be incurred therein
or thereby; nothing contained herein shall, however, relieve the Trustee of the obligation, upon the occurrence of an Event of
Default with respect to a series of the Securities (that has not been cured or waived) to exercise with respect to Securities
of that series such of the rights and powers vested in it by this Indenture, and to 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;

 

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

 

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

 

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

 

Section
7.03     Trustee
Not Responsible for Recitals or Issuance or Securities.

 

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

 

(b)           The
Trustee makes no representations as to the validity or sufficiency of this Indenture or of the Securities.

 

(c)           The
Trustee shall not be accountable for the use or application by the Company of any of the Securities or of the proceeds of such
Securities, or for the use or application of any moneys paid over by the Trustee in accordance with any provision of this Indenture
or established pursuant to Section 2.01, or for the use or application of any moneys received by any paying agent other than the
Trustee.

 

Section
7.04     May
Hold Securities.

 

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

 

Section
7.05     Moneys
Held in Trust.

 

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

 

Section
7.06     Compensation
and Reimbursement.

 

(a)           The
Company covenants and agrees to pay to the Trustee, and the Trustee shall be entitled to, such reasonable compensation (which
shall not be limited by any provision of law in regard to the compensation of a trustee of an express trust), as the Company and
the Trustee may from time to time agree in writing, for all services rendered by it in the execution of the trusts hereby created
and in the exercise and performance of any of the powers and duties hereunder of the Trustee, and, except as otherwise expressly
provided herein, the Company will pay or reimburse the Trustee upon its request for all reasonable expenses, disbursements and
advances incurred or made by the Trustee in accordance with any of the provisions of this Indenture (including the reasonable
compensation and the expenses and disbursements of its counsel and of all Persons not regularly in its employ) except any such
expense, disbursement or advance as may arise from its negligence or bad faith. The Company also covenants to indemnify the Trustee
(and its officers, agents, directors and employees) for, and to hold it harmless against, any loss, liability or expense incurred
without negligence or bad faith on the part of the Trustee and arising out of or in connection with the acceptance or administration
of this trust, including the costs and expenses of defending itself against any claim of liability in the premises.

 

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

 

Section
7.07     Reliance
on Officers’ Certificate.

 

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

 

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Section
7.08     Disqualification;
Conflicting Interests.

 

If the Trustee has or shall acquire any
 “conflicting interest” within the meaning of Section 310(b) of the Trust Indenture Act, the Trustee and the Company
shall in all respects comply with the provisions of Section 310(b) of the Trust Indenture Act.

 

Section
7.09     Corporate
Trustee Required; Eligibility.

 

There shall at all times be a Trustee with
respect to the Securities issued hereunder which shall at all times be a corporation organized and doing business under the laws
of the United States of America or any State or Territory thereof or of the District of Columbia, or a corporation or other Person
permitted to act as trustee by the Commission, authorized under such laws to exercise corporate trust powers, having a combined
capital and surplus of at least 50 million U.S. dollars ($50,000,000), and subject to supervision or examination by Federal, State,
Territorial or District of Columbia authority. If such corporation publishes reports of condition at least annually, pursuant to
law or to the requirements of the aforesaid supervising or examining authority, then for the purposes of this Section, the combined
capital and surplus of such corporation shall be deemed to be its combined capital and surplus as set forth in its most recent
report of condition so published. The Company may not, nor may any Person directly or indirectly controlling, controlled by or
under common control with the Company, serve as Trustee. In case at any time the Trustee shall cease to be eligible in accordance
with the provisions of this Section, the Trustee shall resign immediately in the manner and with the effect specified in Section
7.10.

 

Section
7.10     Resignation
and Removal; Appointment of Successor.

 

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

 

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

 

(1)           the Trustee shall fail to comply with the provisions of Section 7.08 after written request therefor by the Company or by
any Securityholder who has been a bona fide holder of a Security or Securities for at least six months; or

 

(2)           the
Trustee shall cease to be eligible in accordance with the provisions of Section 7.09 and shall fail to resign after written request
therefor by the Company or by any such Securityholder; or

 

(3)           the
Trustee shall become incapable of acting, or shall be adjudged a bankrupt or insolvent, or commence a voluntary bankruptcy
proceeding, or a receiver of the Trustee or of its property shall be appointed or consented to, or any public officer shall
take charge or control of the Trustee or of its property or affairs for the purpose of rehabilitation, conservation or
liquidation, then, in any such case, the Company may remove the Trustee with respect to all Securities and appoint a
successor trustee by written instrument, in duplicate, executed by order of the Board of Directors, one copy of which
instrument shall be delivered to the Trustee so removed and one copy to the successor trustee, or, unless the Trustee’s
duty to resign is stayed as provided herein, any Securityholder who has been a bona fide holder of a Security or Securities
for at least six months may, on behalf of that holder and all others similarly situated, petition any court of competent
jurisdiction for the removal of the Trustee and the appointment of a successor trustee. Such court may thereupon after such
notice, if any, as it may deem proper and prescribe, remove the Trustee and appoint a successor trustee.

 

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(c)           The
holders of a majority in aggregate principal amount of the Securities of any series at the time Outstanding may at any time remove
the Trustee with respect to such series by so notifying the Trustee and the Company and may appoint a successor Trustee for such
series with the consent of the Company.

 

(d)           Any
resignation or removal of the Trustee and appointment of a successor trustee with respect to the Securities of a series pursuant
to any of the provisions of this Section shall become effective upon acceptance of appointment by the successor trustee as provided
in Section 7.11.

 

(e)           Any
successor trustee appointed pursuant to this Section may be appointed with respect to the Securities of one or more series or
all of such series, and at any time there shall be only one Trustee with respect to the Securities of any particular series.

 

Section
7.11     Acceptance
of Appointment By Successor.

 

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

 

(b)           In
case of the appointment hereunder of a successor trustee with respect to the Securities of one or more (but not all) series, the
Company, the retiring Trustee and each successor trustee with respect to the Securities of one or more series shall execute and
deliver an indenture supplemental hereto wherein each successor trustee shall accept such appointment and which (1) shall contain
such provisions as shall be necessary or desirable to transfer and confirm to, and to vest in, each successor trustee all the
rights, powers, trusts and duties of the retiring Trustee with respect to the Securities of that or those series to which the
appointment of such successor trustee relates, (2) shall contain such provisions as shall be deemed necessary or desirable to
confirm that all the rights, powers, trusts and duties of the retiring Trustee with respect to the Securities of that or those
series as to which the retiring Trustee is not retiring shall continue to be vested in the retiring Trustee, and (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, 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 that no Trustee shall be responsible
for any act or failure to act on the part of any other Trustee hereunder; 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, such retiring
Trustee shall with respect to the Securities of that or those series to which the appointment of such successor trustee relates
have no further responsibility for the exercise of rights and powers or for the performance of the duties and obligations vested
in the Trustee under this Indenture, and each such successor trustee, without any further act, deed or conveyance, shall become
vested with all the rights, powers, trusts and duties of the retiring Trustee with respect to the Securities of that or those
series to which the appointment of such successor trustee relates; but, on request of the Company or any successor trustee, such
retiring Trustee shall duly assign, transfer and deliver to such successor trustee, to the extent contemplated by such supplemental
indenture, the 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.

 

(c)           Upon
request of any such successor trustee, the Company shall execute any and all instruments for more fully and certainly vesting
in and confirming to such successor trustee all such rights, powers and trusts referred to in paragraph (a) or (b) of this Section,
as the case may be.

 

    22

     

    

 

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

 

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

 

Section
7.12       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 the corporate trust business of the Trustee, shall be the
successor of the Trustee hereunder, provided that such corporation shall be qualified under the provisions of Section 7.08 and
eligible under the provisions of Section 7.09, without the execution or filing of any paper or any further act on the part of any
of the parties hereto, anything herein to the contrary notwithstanding. In case any Securities shall have been authenticated, but
not delivered, by the Trustee then in office, any successor by merger, conversion or consolidation to such authenticating Trustee
may adopt such authentication and deliver the Securities so authenticated with the same effect as if such successor Trustee had
itself authenticated such Securities.

 

Section
7.13       Preferential
Collection of Claims Against the Company.

 

The Trustee shall comply with Section 311(a)
of the Trust Indenture Act, excluding any creditor relationship described in Section 311(b) of the Trust Indenture Act. A Trustee
who has resigned or been removed shall be subject to Section 311(a) of the Trust Indenture Act to the extent included therein.

 

Article
VIII

CONCERNING THE SECURITYHOLDERS

 

Section
8.01       Evidence
of Action by Securityholders.

 

Whenever in this Indenture it is provided
that the holders of a majority or specified percentage in aggregate principal amount of the Securities of a particular series may
take any action (including the making of any demand or request, the giving of any notice, consent or waiver or the taking of any
other action), the fact that at the time of taking any such action the holders of such majority or specified percentage of that
series have joined therein may be evidenced by any instrument or any number of instruments of similar tenor executed by such holders
of Securities of that series in Person or by agent or proxy appointed in writing.

 

If the Company shall solicit from the Securityholders
of any series any request, demand, authorization, direction, notice, consent, waiver or other action, the Company may, at its option,
as evidenced by an Officers’ Certificate, fix in advance a record date for such series for the determination of Securityholders
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 a record date is fixed, such request, demand, authorization, direction, notice, consent, waiver
or other action may be given before or after the record date, but only the Securityholders of record at the close of business on
the record date shall be deemed to be Securityholders for the purposes of determining whether Securityholders of the requisite
proportion of Outstanding Securities of that series have authorized or agreed or consented to such request, demand, authorization,
direction, notice, consent, waiver or other action, and for that purpose the Outstanding Securities of that series shall be computed
as of the record date; provided, however, that no such authorization, agreement or consent by such Securityholders on the record
date shall be deemed effective unless it shall become effective pursuant to the provisions of this Indenture not later than six
months after the record date.

 

    23

     

    

 

Section
8.02     Proof
of Execution by Securityholders.

 

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

 

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

 

(b)           The
ownership of Securities shall be proved by the Security Register of such Securities or by a certificate of the Security Registrar
thereof.

 

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

 

Section
8.03     Who
May be Deemed Owners.

 

Prior to the due presentment for registration
of transfer of any Security, the Company, the Trustee, any paying agent and any Security Registrar may deem and treat the Person
in whose name such Security shall be registered upon the books of the Company as the absolute owner of such Security (whether or
not such Security shall be overdue and notwithstanding any notice of ownership or writing thereon made by anyone other than the
Security Registrar) for the purpose of receiving payment of or on account of the principal of (and premium, if any) and (subject
to Section 2.03) interest on such Security and for all other purposes; and neither the Company nor the Trustee nor any paying agent
nor any Security Registrar shall be affected by any notice to the contrary.

 

Section
8.04     Certain
Securities Owned by Company Disregarded.

 

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

 

Section
8.05     Actions
Binding on Future Securityholders.

 

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

 

    24

     

    

 

Article
IX

SUPPLEMENTAL INDENTURES

 

Section
9.01     Supplemental
Indentures Without the Consent of Securityholders.

 

In addition to any supplemental indenture
otherwise authorized by this Indenture, the Company and the Trustee may from time to time and at any time enter into an indenture
or indentures supplemental hereto (which shall conform to the provisions of the Trust Indenture Act as then in effect), without
the consent of the Securityholders, for one or more of the following purposes:

 

(a)           to
cure any ambiguity, defect or inconsistency herein or in the Securities of any series;

 

(b)           to
comply with Article Ten;

 

(c)           to provide for uncertificated Securities in addition to or in place of certificated Securities;

 

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

 

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

 

(f)            to
make any change that does not adversely affect the rights of any Securityholder in any material respect; or

 

(g)           to
provide for the issuance of and establish the form and terms and conditions of the Securities of any series as provided in Section
2.01, to establish the form of any certifications required to be furnished pursuant to the terms of this Indenture or any series
of Securities, or to add to the rights of the holders of any series of Securities.

 

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

 

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

 

Section
9.02     Supplemental
Indentures With Consent of Securityholders.

 

With the consent (evidenced as provided
in Section 8.01) of the holders of not less than a majority in aggregate principal amount of the Securities of each series affected
by such supplemental indenture or indentures at the time Outstanding, the Company, when authorized by Board Resolutions, and the
Trustee may from time to time and at any time enter into an indenture or indentures supplemental hereto (which shall conform to
the provisions of the Trust Indenture Act as then in effect) for the purpose of adding any provisions to or changing in any manner
or eliminating any of the provisions of this Indenture or of any supplemental indenture or of modifying in any manner not covered
by Section 9.01 the rights of the holders of the Securities of such series under this Indenture; provided, however, that no such
supplemental indenture shall, without the consent of the holders of each Security then Outstanding and affected thereby, (i) extend
the fixed maturity of any Securities of any series, or reduce the principal amount thereof, or reduce the rate of interest thereon,
or reduce any premium payable upon the redemption thereof, or (ii) reduce the aforesaid percentage of Securities, the holders of
which are required to consent to any such supplemental indenture.

 

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

 

    25

     

    

 

Section
9.03     Effect
of Supplemental Indentures.

 

Upon the execution of any supplemental indenture
pursuant to the provisions of this Article or of Section 10.01, this Indenture shall, with respect to such series, be and be deemed
to be modified and amended in accordance therewith and the respective rights, limitations of rights, obligations, duties and immunities
under this Indenture of the Trustee, the Company and the holders of Securities of the series affected thereby shall thereafter
be determined, exercised and enforced hereunder subject in all respects to such modifications and amendments, and all the terms
and conditions of any such supplemental indenture shall be and be deemed to be part of the terms and conditions of this Indenture
for any and all purposes.

 

Section
9.04     Securities
Affected by Supplemental Indentures.

 

Securities of any series affected by a supplemental
indenture, authenticated and delivered after the execution of such supplemental indenture pursuant to the provisions of this Article
or of Section 10.01, may bear a notation in form approved by the Company, provided such form meets the requirements of any exchange
upon which such series may be listed, as to any matter provided for in such supplemental indenture. If the Company shall so determine,
new Securities of that series so modified as to conform, in the opinion of the Board of Directors, to any modification of this
Indenture contained in any such supplemental indenture may be prepared by the Company, authenticated by the Trustee and delivered
in exchange for the Securities of that series then Outstanding.

 

Section
9.05     Execution
of Supplemental Indentures.

 

Upon the request of the Company, accompanied
by Board Resolutions authorizing the execution of any such supplemental indenture, and upon the filing with the Trustee of evidence
of the consent of Securityholders required to consent thereto as aforesaid, the Trustee shall join with the Company in the execution
of such supplemental indenture unless such supplemental indenture affects the Trustee’s own rights, duties or immunities
under this Indenture or otherwise, in which case the Trustee may in its discretion but shall not be obligated to enter into such
supplemental indenture. The Trustee, subject to the provisions of Section 7.01, may receive an Opinion of Counsel as conclusive
evidence that any supplemental indenture executed pursuant to this Article is authorized or permitted by, and conforms to, the
terms of this Article and that it is proper for the Trustee under the provisions of this Article to join in the execution thereof;
provided, however, that such Opinion of Counsel need not be provided in connection with the execution of a supplemental indenture
that establishes the terms of a series of Securities pursuant to Section 2.01 hereof.

 

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

 

Article
X

SUCCESSOR ENTITY

 

Section
10.01    Company
May Consolidate, Etc.

 

Nothing contained in this Indenture or in
any of the Securities shall prevent any consolidation or merger of the Company with or into any other Person (whether or not affiliated
with the Company) or successive consolidations or mergers in which the Company or its successor or successors shall be a party
or parties, or shall prevent any sale, conveyance, transfer or other disposition of the property of the Company or its successor
or successors as an entirety, or substantially as an entirety, to any other corporation (whether or not affiliated with the Company
or its successor or successors) authorized to acquire and operate the same; provided, however, the Company hereby covenants and
agrees that, upon any such consolidation or merger (in each case, if the Company is not the survivor of such transaction), sale,
conveyance, transfer or other disposition, the due and punctual payment of the principal of (premium, if any) and interest on all
of the Securities of all series in accordance with the terms of each series, according to their tenor, and the due and punctual
performance and observance of all the covenants and conditions of this Indenture with respect to each series or established with
respect to such series pursuant to Section 2.01 to be kept or performed by the Company shall be expressly assumed by supplemental
indenture (which shall conform to the provisions of the Trust Indenture Act as then in effect) satisfactory in form to the Trustee
executed and delivered to the Trustee by the entity formed by such consolidation, or into which the Company shall have been merged,
or by the entity which shall have acquired such property.

 

    26

     

    

 

Section
10.02   Successor
Entity Substituted.

 

(a)           In
case of any such consolidation, merger, sale, conveyance, transfer or other disposition and upon the assumption by the successor
entity by supplemental indenture, executed and delivered to the Trustee and satisfactory in form to the Trustee, of the due and
punctual payment of the principal of (and premium, if any) and interest on all of the Securities of all series Outstanding and
the due and punctual performance of all of the covenants and conditions of this Indenture or established with respect to each
series of the Securities pursuant to Section 2.01 to be performed by the Company with respect to each series, such successor entity
shall succeed to and be substituted for the Company with the same effect as if it had been named as the Company herein, and thereupon
the predecessor corporation shall be relieved of all obligations and covenants under this Indenture and the Securities.

 

(b)           In
case of any such consolidation, merger, sale, conveyance, transfer or other disposition, such changes in phraseology and form
(but not in substance) may be made in the Securities thereafter to be issued as may be appropriate.

 

(c)           Nothing
contained in this Article shall apply to limit or impose any requirements upon the consolidation or merger of any Person into
the Company where the Company is the survivor of such transaction, or the acquisition by the Company, by purchase or otherwise,
of all or any part of the property of any other Person (whether or not affiliated with the Company).

 

Section
10.03   Evidence
of Consolidation, Etc. to Trustee.

 

The Trustee, subject to the provisions of
Section 7.01, may receive an Opinion of Counsel as conclusive evidence that any such consolidation, merger, sale, conveyance, transfer
or other disposition, and any such assumption, comply with the provisions of this Article.

 

Article
XI

SATISFACTION AND DISCHARGE

 

Section
11.01   Satisfaction
and Discharge of Indenture.

 

If at any time: (a) the Company shall have
delivered to the Trustee for cancellation all Securities of a series theretofore authenticated (other than any Securities that
have been destroyed, lost or stolen and that have been replaced or paid as provided in Section 2.07) and Securities for whose payment
money or Governmental Obligations have theretofore been deposited in trust or segregated and held in trust by the Company (and
thereupon repaid to the Company or discharged from such trust, as provided in Section 11.05); or (b) all such Securities of a particular
series not theretofore delivered to the Trustee for cancellation shall have become due and payable, or are by their terms to become
due and payable within one year or are to be called for redemption within one year under arrangements satisfactory to the Trustee
for the giving of notice of redemption, and the Company shall deposit or cause to be deposited with the Trustee as trust funds
the entire amount in moneys or Governmental Obligations or a combination thereof, sufficient in the opinion of a nationally recognized
firm of independent public accountants expressed in a written certification thereof delivered to the Trustee, to pay at maturity
or upon redemption all Securities of that series not theretofore delivered to the Trustee for cancellation, including principal
(and premium, if any) and interest due or to become due to such date of maturity or date fixed for redemption, as the case may
be, and if the Company shall also pay or cause to be paid all other sums payable hereunder with respect to such series by the Company
then this Indenture shall thereupon cease to be of further effect with respect to such series except for the provisions of Sections
2.03, 2.05, 2.07, 4.01, 4.02, 4.03 and 7.10, that shall survive until the date of maturity or redemption date, as the case may
be, and Sections 7.06 and 11.05, that shall survive to such date and thereafter, and the Trustee, on demand of the Company and
at the cost and expense of the Company, shall execute proper instruments acknowledging satisfaction of and discharging this Indenture
with respect to such series.

 

    27

     

    

 

Section
11.02     Discharge of Obligations.

 

If at any time all such Securities of a
particular series not heretofore delivered to the Trustee for cancellation or that have not become due and payable as described
in Section 11.01 shall have been paid by the Company by depositing irrevocably with the Trustee as trust funds moneys or an amount
of Governmental Obligations sufficient to pay at maturity or upon redemption all such Securities of that series not theretofore
delivered to the Trustee for cancellation, including principal (and premium, if any) and interest due or to become due to such
date of maturity or date fixed for redemption, as the case may be, and if the Company shall also pay or cause to be paid all other
sums payable hereunder by the Company with respect to such series, then after the date such moneys or Governmental Obligations,
as the case may be, are deposited with the Trustee, the obligations of the Company under this Indenture with respect to such series
shall cease to be of further effect except for the provisions of Sections 2.03, 2.05, 2.07, 4.01, 4.02, 4.03, 7.06, 7.10 and 11.05
hereof that shall survive until such Securities shall mature and be paid. Thereafter, Sections 7.06 and 11.05 shall survive.

 

Section
11.03     Deposited Moneys to
be Held in Trust.

 

All moneys or Governmental Obligations deposited
with the Trustee pursuant to Sections 11.01 or 11.02 shall be held in trust and shall be available for payment as due, either directly
or through any paying agent (including the Company acting as its own paying agent), to the holders of the particular series of
Securities for the payment or redemption of which such moneys or Governmental Obligations have been deposited with the Trustee.

 

Section
11.04     Payment of Moneys
Held by Paying Agents.

 

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

 

Section
11.05     Repayment to Company.

 

Any moneys or Governmental Obligations deposited
with any paying agent or the Trustee, or then held by the Company, in trust for payment of principal of (and premium, if any) or
interest on the Securities of a particular series that are not applied but remain unclaimed by the holders of such Securities for
at least two years after the date upon which the principal of (and premium, if any) or interest on such Securities shall have respectively
become due and payable, shall be repaid to the Company or (if then held by the Company) shall be discharged from such trust; and
thereupon the paying agent and the Trustee shall be released from all further liability with respect to such moneys or Governmental
Obligations, and the holder of any of the Securities entitled to receive such payment shall thereafter, as an unsecured general
creditor, look only to the Company for the payment thereof.

 

Article
XII

IMMUNITY OF INCORPORATORS, STOCKHOLDERS, OFFICERS AND DIRECTORS

 

Section
12.01     No Recourse.

 

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

 

    28

     

    

 

Article
XIII

MISCELLANEOUS PROVISIONS

 

Section
13.01     Effect on Successors
and Assigns.

 

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

 

Section
13.02    Actions by Successor.

 

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

 

Section
13.03     Notices.

 

Except as otherwise expressly provided herein
any notice or demand that by any provision of this Indenture is required or permitted to be given or served by the Trustee or by
the holders of Securities to or on the Company may be given or served by being deposited first class postage prepaid in a post-office
letterbox addressed (until another address is filed in writing by the Company with the Trustee), as follows: [ ]. Any notice, election,
request or demand by the Company or any Securityholder to or upon the Trustee shall be deemed to have been sufficiently given or
made, for all purposes, if given or made in writing at the Corporate Trust Office of the Trustee.

 

Section
13.04     Governing Law.

 

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

 

Section
13.05     Compliance Certificates
and Opinions.

 

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

 

(b)           Each
certificate or opinion provided for in this Indenture and delivered to the Trustee with respect to compliance with a condition
or covenant in this Indenture shall include (1) a statement that the Person making such certificate or opinion has read such covenant
or condition; (2) a brief statement as to the nature and scope of the examination or investigation upon which the statements or
opinions contained in such certificate or opinion are based; (3) a statement that, in the opinion of such Person, he has made
such examination or investigation as is necessary to enable him to express an informed opinion as to whether or not such covenant
or condition has been complied with; and (4) a statement as to whether or not, in the opinion of such Person, such condition or
covenant has been complied with.

 

(c)           The
Company shall furnish to the Trustee, on [ ] of each year, a brief certificate from the principal executive officer, principal
financial officer or principal accounting officer as to his or her knowledge of such obligor’s compliance with all conditions
and covenants under this Indenture. For purposes of this subsection, such compliance shall be determined without regard to any
period of grace or requirement of notice provided hereunder.

 

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Section
13.06     Payments on Business
Days.

 

Except as provided pursuant to Section 2.01
pursuant to a Board Resolution, and as set forth in an Officers’ Certificate, or established in one or more indentures supplemental
to this Indenture, in any case where the date of maturity of interest or principal of any Security or the date of redemption of
any Security shall not be a Business Day, then payment of interest or principal (and premium, if any) may be made on the next succeeding
Business Day with the same force and effect as if made on the nominal date of maturity or redemption, and no interest shall accrue
for the period after such nominal date.

 

Section
13.07     Conflict with Trust
Indenture Act.

 

If and to the extent that any provision
of this Indenture limits, qualifies or conflicts with the duties imposed by Sections 310 to 317, inclusive, of the Trust Indenture
Act, such imposed duties shall control.

 

Section
13.08     Counterparts.

 

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

 

Section
13.09     Separability.

 

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

 

Section
13.10     Assignment.

 

The Company will have the right at all times
to assign any of its rights or obligations under this Indenture to a direct or indirect wholly owned Subsidiary of the Company,
provided that, in the event of any such assignment, the Company will remain liable for all such obligations. Subject to the foregoing,
the Indenture is binding upon and inures to the benefit of the parties thereto and their respective successors and assigns. This
Indenture may not otherwise be assigned by the parties thereto.

 

Article
XIV

SUBORDINATION OF SECURITIES

 

Section
14.01     Subordination Terms.

 

The payment by the Company of the principal
of (and premium, if any) and interest on any series of Securities issued hereunder shall be subordinated to the extent set forth
in an indenture supplemental hereto relating to such Securities.

 

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

 

	 	GOLDEN MINERALS COMPANY
	 	By:	 
	 	Name:	 
	 	Title:	 
	 	 
	 	[ ],
	 	as Trustee
	 	By:	 
	 	Name:	 
	 	Title:	 

 

    30Exhibit 10.1

 

EXECUTION COPY

	
 
    

 

TERM LOAN AGREEMENT

 

dated as of July 11, 2017

 

among

 

MINERA PLATA REAL S. DE R.L. DE C.V.,

OPERACIONES SAN JOSE DE PLATA, S. DE R.L. DE C.V., and

SERVICIOS SAN JOSE DE PLATA, S. DE R.L. DE C.V.

as Borrowers

 

and

 

DOWA METALS & MINING CO., LTD.

as Lender

 

and

 

SUNSHINE SILVER MINING AND REFINING CORPORATION

 

and

 

LOS GATOS LUXEMBOURG S.ar.L

	
 
    

 

 

TABLE OF CONTENTS

 

	
 
    	
 
    	
Page
    
	
 
    	
 
    	
 
    
	
ARTICLE 1
    	
DEFINITIONS;   INTERPRETATION
    	
1
    
	
 
    	
 
    	
 
    
	
1.1
    	
Defined Terms
    	
1
    
	
1.2
    	
Other Definitional   Provisions
    	
13
    
	
1.3
    	
Currency Matters
    	
13
    
	
 
    	
 
    	
 
    
	
ARTICLE 2
    	
LOANS
    	
13
    
	
 
    	
 
    	
 
    
	
2.1
    	
Loans
    	
13
    
	
2.2
    	
Interest
    	
14
    
	
2.3
    	
Interest Payment Dates
    	
14
    
	
2.4
    	
Prepayments
    	
14
    
	
2.5
    	
Repayment
    	
15
    
	
2.6
    	
Payment
    	
15
    
	
2.7
    	
Manner of Payment
    	
16
    
	
2.8
    	
Lender Tax Forms
    	
16
    
	
2.9
    	
FATCA Documentation
    	
17
    
	
2.10
    	
Capital Adequacy;   Change in Law
    	
17
    
	
2.11
    	
Fees
    	
17
    
	
 
    	
 
    	
 
    
	
ARTICLE 3
    	
CONDITIONS PRECEDENT;   CONDITIONS SUBSEQUENT
    	
18
    
	
 
    	
 
    	
 
    
	
3.1
    	
Conditions Precedent to   the Initial Drawdown Under the Loans
    	
18
    
	
3.2
    	
Conditions Precedent to   Subsequent Drawdowns
    	
19
    
	
 
    	
 
    	
 
    
	
ARTICLE 4
    	
REPRESENTATIONS AND   WARRANTIES
    	
20
    
	
 
    	
 
    	
 
    
	
4.1
    	
Representations and   Warranties
    	
20
    
	
4.2
    	
Survival of   Representations and Warranties, etc.
    	
24
    
	
 
    	
 
    	
 
    
	
ARTICLE 5
    	
AFFIRMATIVE COVENANTS
    	
24
    
	
 
    	
 
    	
 
    
	
5.1
    	
Preservation of   Existence and Similar Matters
    	
24
    
	
5.2
    	
Conduct of Business;   Maintenance of Assets
    	
24
    
	
5.3
    	
Accounting Methods and   Financial Records
    	
25
    
	
5.4
    	
Insurance
    	
25
    
	
5.5
    	
Payment of Taxes and   Claims
    	
25
    
	
5.6
    	
Use of Proceeds
    	
25
    
	
5.7
    	
Indemnity
    	
25
    
	
5.8
    	
Further Assurances
    	
26
    
	
5.9
    	
Environmental Matters
    	
26
    
	
5.10
    	
OFAC
    	
27
    
	
5.11
    	
Payment of Indebtedness   and Leasehold Obligations
    	
27
    
	
5.12
    	
Reserve Accounts
    	
27
    
	
 
    	
 
    	
 
    
	
ARTICLE 6
    	
INFORMATION COVENANTS
    	
28
    
	
 
    	
 
    	
 
    
	
6.1
    	
Annual Financial Statements   and Information
    	
28
    
	
6.2
    	
Quarterly Financial   Statements and Information
    	
28
    
	
6.3
    	
Performance   Certificates
    	
28
    
	
6.4
    	
Copies of Other Reports
    	
28
    
	
6.5
    	
Notice of Litigation   and Other Matters
    	
28
    
	
6.6
    	
Access and Inspections
    	
29
    

 

i

 

TABLE OF CONTENTS

(continued)

	
 
    	
 
    	
Page
    
	
 
    	
 
    	
 
    
	
ARTICLE 7
    	
NEGATIVE COVENANTS
    	
29
    
	
 
    	
 
    	
 
    
	
7.1
    	
Indebtedness of the   Borrowers
    	
29
    
	
7.2
    	
Limitation on Liens
    	
29
    
	
7.3
    	
Liquidation, Merger or   Disposition of Assets
    	
29
    
	
7.4
    	
Limitation on   Guarantees
    	
29
    
	
7.5
    	
Investments
    	
29
    
	
7.6
    	
Restricted Payments and   Restricted Purchases
    	
29
    
	
7.7
    	
Affiliate Transactions
    	
30
    
	
 
    	
 
    	
 
    
	
ARTICLE 8
    	
EVENTS OF DEFAULT;   REMEDIES
    	
30
    
	
 
    	
 
    	
 
    
	
8.1
    	
Events of Default
    	
30
    
	
8.2
    	
Remedies
    	
31
    
	
8.3
    	
Payments Subsequent to   Declaration of Event of Default
    	
32
    
	
 
    	
 
    	
 
    
	
ARTICLE 9
    	
MISCELLANEOUS
    	
33
    
	
 
    	
 
    	
 
    
	
9.1
    	
Notices
    	
33
    
	
9.2
    	
Expenses
    	
34
    
	
9.3
    	
Waivers
    	
34
    
	
9.4
    	
Set-Off
    	
34
    
	
9.5
    	
Successors and Assigns
    	
35
    
	
9.6
    	
Counterparts
    	
36
    
	
9.7
    	
Governing Law
    	
36
    
	
9.8
    	
Severability
    	
36
    
	
9.9
    	
Interest
    	
36
    
	
9.10
    	
Table of Contents and   Headings
    	
37
    
	
9.11
    	
Entire Agreement
    	
37
    
	
9.12
    	
Reliance on and   Survival of Various Provisions
    	
37
    
	
9.13
    	
Confidentiality
    	
37
    
	
9.14
    	
Illegality
    	
38
    
	
9.15
    	
Joint and Several   Liability
    	
38
    
	
9.16
    	
Amendments
    	
38
    
	
 
    	
 
    	
 
    
	
ARTICLE 10
    	
WAIVER OF JURY TRIAL
    	
38
    
	
 
    	
 
    	
 
    
	
10.1
    	
Waiver of Jury Trial;   Waiver of Special, Exemplary, Punitive or Consequential Damages
    	
38
    

 

ii

 

Annexes

 

Annex I                                                    Payment Information for Lender

 

Schedule

 

Schedule 1                                     Corporate Information of the Borrowers

 

Schedule 2                                     Security Documents

 

iii

 

TERM LOAN AGREEMENT

 

THIS TERM LOAN AGREEMENT (this “Agreement”) is entered into as of July 11, 2017, among MINERA PLATA REAL S. DE R.L. DE C.V., OPERACIONES SAN JOSE DE PLATA, S. DE R.L. DE C.V., and SERVICIOS SAN JOSE DE PLATA, S. DE R.L. DE C.V. (collectively, the “Borrowers”), DOWA METALS & MINING CO., LTD., as lender (together with its respective successors and assigns, the “Lender”), and SUNSHINE SILVER MINING & REFINING CORPORATION (“SSMRC”) and LOS GATOS LUXEBOURG S.ar.L (“SSMRC Lux”).

 

WHEREAS, Lender, SSMRC and SSMRC Lux (collectively, the “Shareholders”) directly and indirectly own all of the Equity Interests of the Borrowers;

 

WHEREAS, the Borrowers require funding to develop the Los Gatos silver-zinc-lead project located in the state of Chihuahua, Mexico (the “Los Gatos Project”); and

 

WHEREAS, SSMRC, SSMRC Lux and the Borrowers have requested, and Lender has agreed, to fund a portion of the Los Gatos Project with the Loans provided for herein.

 

THEREFORE, subject to the terms and conditions set forth herein and for other good and valuable consideration, the parties hereby agree as follows:

 

ARTICLE 1

DEFINITIONS; INTERPRETATION.

 

1.1                                                                               Defined Terms.

 

When used herein the following terms shall have the following meanings:

 

Acquisition shall mean (whether by purchase, exchange, issuance of stock or other equity or debt securities, merger, reorganization, amalgamation or any other method) any acquisition by any Borrowers or any of their respective Subsidiaries of any other Person or any substantial part of the assets of any other Person.

 

Affiliate shall mean, with respect to a Person, any other Person directly or indirectly Controlling, Controlled by, or under common Control with, such first Person. Without limiting the generality of the foregoing, a Person shall be deemed to be “controlled” by another Person if such other Person possesses, directly or indirectly, power to vote 10% or more of the securities having ordinary voting powers for the election of directors, managing general partners or equivalent governing body of such Person.

 

Agreement shall mean this Term Loan Agreement, including, without limitation, all schedules, riders or other attachments, as amended, restated, supplemented, replaced or otherwise modified from time to time.

 

Amendment to Partner Agreement shall mean that certain amendment to Omnibus Partner Agreement between the parties dated as of even date herewith.

 

Applicable Law shall mean, in respect of any Person, all provisions of constitutions, statutes, rules, regulations and orders of any Governmental Entity applicable to such Person, including, without limiting the foregoing, all Environmental Laws and all orders, decisions, judgments and decrees of all courts and arbitrators in proceedings or actions to which the Person in question is a

 

 

party or by which it is bound. Notwithstanding the foregoing, Applicable Law shall not include any environmental laws not expressly described in the definition of Environmental Laws.

 

Applicable Margin shall mean a rate of interest equal to 2.35% per annum.

 

Arrangement Fee shall have the meaning ascribed thereto in Section 2.11(b) hereof.

 

Authorized Signatory with respect to any Person, shall mean any legal representative or attorney in fact, including any executive duly authorized and appointed in writing from time to time by such Person to execute documents, agreements, contracts and instruments on behalf of such Person.

 

Availability Period shall mean the period commencing on the Closing Date and ending on the Availability Termination Date.

 

Availability Termination Date shall mean the date that is the earliest of (i) the date on which Borrowers have drawn $210,000,000 under this Agreement, but in no event earlier than two (2) Business Days prior to December 31, 2019, (ii) two (2) Business Days prior to June 30, 2020 if the Borrowers have drawn less than $210,000,000 under this Agreement and have notified Lender that they will cease making any additional draws under this Agreement, or (iii) two (2) Business Days prior to December 31, 2020.

 

Bankruptcy Laws shall mean any of the Commercial Bankruptcy Law of Mexico (Ley de Concursos Mercantiles), as now and hereafter in effect, any successors to such statute and any other applicable insolvency or other similar law of any jurisdiction, including any law of any jurisdiction permitting a debtor to obtain a stay or a compromise of the claims of its creditors against it.

 

Borrowers have the meaning set forth in the preamble of this Agreement.

 

Breakage Costs shall mean the actual losses, if any, that Lender sustains or incurs as a correspondence of any payment or repayment of any Loan on a day other than the last day of the corresponding Interest Period.

 

Budget shall mean the Los Gatos Project budget, prepared and approved by the Shareholders in accordance with the Partner Agreement, as the same is amended from time to time pursuant to the Partner Agreement.

 

Business Day shall mean a day excluding Saturday, Sunday and any day that is a legal holiday under the laws of Chihuahua, Mexico, New York, New York, Denver, Colorado, or Tokyo, Japan or is a day on which banking institutions located in such jurisdictions are authorized or required by law or other governmental action to close.

 

Capital Expenditures shall mean, for any period and for any Borrower, the sum (without duplication) of all expenditures made by such Borrower during such period that are or are required to be treated as capital expenditures under GAAP.

 

Capital Lease shall mean, as to any Person, any lease of any interest in any kind of Property by that Person as lessee that is, should be or should have been recorded as a “capital lease” in accordance with GAAP.

 

2

 

Capital Lease Obligations shall mean that portion of the obligations of any Person under Capital Leases, in each case taken at the amount thereof that is required to be capitalized for financial accounting purposes in accordance with GAAP.

 

Cash Equivalents shall mean, as at any date of determination, cash equivalents as determined in accordance with GAAP.

 

Change of Control shall mean the occurrence, without the prior written consent of Lender, of any event (whether in one or more transactions) that results in (a) the sale of all or substantially all of the assets of SSMRC, SSMRC Lux or any of the Borrowers, (b) any merger, consolidation or acquisition of SSMRC, SSMRC Lux or any of the Borrowers by any other Person, (c) any transfer or disposition, direct or indirect, of the ownership or control of more than 50% of SSMRC’s or SSMRC Lux’s Shares (as such term is defined in the Partner Agreement), or (d) SSMRC ceasing to have the power to direct or cause the direction of the management and policies of the Borrowers, in each case of clauses (c) and (d), other than in connection with a Permitted IPO or other equity issuance.

 

Closing Date shall mean five (5) Business Days following the date on which all conditions precedent under Section 3.1 have been satisfied or otherwise waived in writing by Lender.

 

Collateral shall mean any Property constituting collateral for the Obligations.

 

Code shall mean the Internal Revenue Code of 1986, as amended from time to time.

 

Control shall mean, with respect to a Person, possession by another Person, directly or indirectly, of the power to direct or cause the direction of the management or policies of such first Person, whether through the ownership of voting securities, by contract or otherwise. The words “Controlling” and “Controlled” have correlative meanings.

 

Debt Service Reserve Account shall have the meaning set forth in Section 5.12.

 

Default shall mean any event that with the passage of time or giving of notice, or both, would constitute an Event of Default.

 

Default Rate shall mean a per annum interest rate equal to the sum of the Interest Rate, plus two percent (2%).

 

Drawdown shall have the meaning ascribed thereto in Section 2.1 hereof.

 

Drawdown Date shall have the meaning ascribed thereto in Section 2.1 hereof.

 

EBITDA shall mean for any period with respect to Borrowers on a combined basis, the net income (or loss) for such period (excluding extraordinary gains and non-cash losses), plus, without duplication and to the extent deducted in determining such net income (or loss) for such period, without duplication, (a) each of the following items: (i) all interest expense for such period, (ii) all charges against income for such period for foreign, federal, state and local taxes for such period, (iii) depreciation and depletion expenses for such period, (iv) reclamation obligations and accretion on reclamation obligations, and (v) amortization expenses for such period.

 

Eligible Assignee shall mean Lender, any Affiliate of Lender (excluding for clarity, any of the Borrowers), SSMRC in the event SSMRC issues its common stock in a private placement or

 

3

 

effects an initial public offering of its common stock by registration under the Securities Act of 1933, on terms and conditions to be negotiated in good faith by SSMRC and Lender, or any other Person consented to by the Borrowers, such consent not to be unreasonably withheld.

 

Environmental Claim shall mean any investigation, notice, notice of violation, claim, action, suit, proceeding, demand, abatement order or other order or directive (conditional or otherwise), by any Governmental Entity or any other Person, arising (a) pursuant to or in connection with any actual or alleged violation of any Environmental Law; (b) in connection with any Hazardous Material or any actual or alleged Hazardous Materials Activity; or (c) in connection with any actual or alleged damage, injury, threat or harm to health, safety, natural resources or the environment.

 

Environmental Laws shall mean any and all current or future foreign or domestic, federal, national, state, provincial, municipal (or any subdivision of either of them), laws, treaties, statutes, ordinances, rules, regulations and Codes, together with all decrees, judgments, directives, orders or injunctions issued, governmental authorizations, or any other requirements of Governmental Entity relating to (a) environmental matters, including those relating to any Hazardous Materials Activity; (b) the generation, use, storage, transportation or disposal of Hazardous Materials; or (c) occupational safety and health, industrial hygiene, land use or the protection of human, plant or animal health or welfare, in any manner applicable to the Borrowers.

 

Equity Interests shall mean, with respect to any Person, any and all shares, general or limited liability partnership interests, member interests, participation or other equivalents of or interest in (regardless of how designated) equity of such Person, whether voting or nonvoting, including common stock, preferred stock, convertible securities or any other “equity security” (as such term is defined in Rule 3a11-1 of the General Rules and Regulations promulgated by the SEC under the Exchange Act).

 

Event of Default shall mean any of the events specified in Section 8.1 hereof, provided that any requirement for notice or lapse of time, or both, has been satisfied or expired.

 

Excess Cash Flow shall mean, for any period, EBITDA for such period, less interest expense paid or payable during such period, taxes paid during such period, scheduled payments of principal under this Agreement, and payments made to the Debt Service Reserve Account and to the Operating and Capital Cost Reserve Account during such period.

 

Excluded Taxes shall mean, with respect to the Lender or any Participant, (a) foreign, federal, state and local income or franchise taxes imposed on (or measured by) its net income, gross receipts or assets pursuant to the laws of the jurisdiction in which such recipient is organized, managed or controlled or in which the principal office or applicable lending office of such recipient is located, (b) any branch profits Taxes or any similar Tax imposed by any jurisdiction (foreign or domestic) described in clause (a) above, (c) any backup withholding Taxes that are imposed by the United States under Section 3406 of the Code or any similar Taxes imposed by the jurisdiction under the laws of which such recipient is organized or, in which its principal office or applicable lending office is located or in which it or its principal office or its applicable lending office is located or is otherwise doing business (other than a business that arises solely from such recipient having executed, delivered or performed its obligations or received payment under, or enforced its rights under this Agreement or any other Loan Document); (d) any United States federal withholding Tax imposed under FATCA or otherwise; and (e) Taxes or special assessments of any kind imposed by the jurisdiction (foreign or domestic) under the laws of

 

4

 

which such recipient is organized, in which its principal office or its applicable lending office is located or in which it or its principal office or its applicable lending office is otherwise doing business, that are measured by or imposed as a result of the extent and nature of its activities, assets, liabilities, leverage, other exposures to risk, or other similar factors.

 

FATCA shall mean Sections 1471 through 1474 of the Code, as of the date of this Agreement (or any amended or successor version that is substantively comparable and not more onerous to comply with), any current or future regulations or official interpretations thereof and any agreement entered into pursuant to Section 1471(b)(1) of the Code.

 

Financial Guarantee shall mean a secondary back-to-back guarantee from a financial institution reasonably satisfactory to Lender of the SSMRC Guaranty, as amended, restated, supplemented or modified from time to time.

 

Fiscal Year shall mean the applicable fiscal year of each Borrower.

 

Foreign Lender shall mean a Lender that is not organized under the laws of the United States or any state thereof.

 

GAAP shall mean, for any Person, generally accepted accounting principles which are in effect from time to time in the United States.

 

Governmental Entity shall mean any (a) multinational, federal, national, provincial, state, regional, municipal, local or other government, governmental or public department, central bank, court, tribunal, arbitral body, commission, board, bureau, ministry or agency and, in general, governmental authorities, domestic or foreign, (b) any subdivision, agent, commission, board, or authority of any of the foregoing, or (c) any quasi-governmental or private body exercising any regulatory, self-regulatory, expropriation or taxing authority under or for the account of any of the foregoing.

 

Guarantor shall mean SSMRC and any other Person that guarantees the Obligations.

 

Guaranty, as applied to an obligation, shall mean and include (a) a guaranty, direct or indirect, in any manner, of all or any part of such obligation, and (b) any agreement, direct or indirect, contingent or otherwise, the practical effect of which is to assure in any way the payment or performance (or payment of damages in the event of non-performance) of all or any part of such obligation, including, without limiting the foregoing, any reimbursement obligations as to amounts drawn down by beneficiaries of outstanding letters of credit or capital call requirements; provided that endorsements of instruments for deposit or collection shall be excluded. The amount of any Guaranty hereunder shall (subject to any limitations set forth therein) be deemed to be an amount equal to the outstanding obligations in respect of which such Guaranty is made (or, if such Guaranty is limited by its terms to a lesser amount, such lesser amount) or, if not determinable, the maximum reasonably anticipated liability in respect thereof as determined by the guarantying Person in good faith.

 

Hazardous Materials shall mean all explosive, radioactive, hazardous, or toxic substances, wastes or materials, including petroleum or petroleum distillates, asbestos or asbestos-containing materials, polychlorinated biphenyls, radon, gas, any chemical, material or substance, and all other substances or wastes, the use of, generation of, or exposure to which, is prohibited, limited or regulated pursuant to Environmental Laws.

 

5

 

Hazardous Materials Activity shall mean any past, current, proposed or threatened activity, event or occurrence involving any Hazardous Materials, including the use, manufacture, possession, storage, holding, presence, existence, location, Release, threatened Release, discharge, placement, generation, transportation, processing, construction, treatment, abatement, removal, remediation, disposal, disposition or handling of any Hazardous Materials, and any corrective action or response action with respect to any of the foregoing.

 

Indebtedness of any Person shall mean, without duplication, (a) all obligations of such Person for borrowed money, bankers’ acceptances, or with respect to deposits or advances of any kind (including all Indebtedness for Money Borrowed), (b) all obligations of such Person evidenced by bonds, debentures, notes or similar instruments, (c) all obligations of such Person upon which interest charges are customarily paid, (d) all obligations of such Persons under conditional sale or other title retention agreements relating to property acquired by such Person, (e) all obligations of such Person in respect of the deferred purchase price of property or services (excluding trade accounts payable and accrued expenses incurred in the ordinary course of business) that in accordance with GAAP would be included as liabilities on the balance sheet of such Person, (f) all Indebtedness of others secured by (or for which the holder of such Indebtedness has an existing right, contingent or otherwise, to be secured by) any Lien on property owned or acquired by such Person, whether or not the Indebtedness secured thereby has been assumed, but, with respect to such Indebtedness that is non-recourse, only to the extent of the lesser of the amount of such Indebtedness or the fair market value of the property at the time of determination that is encumbered by such Lien, (g) all Guarantees by such Person of Indebtedness of others, (h) all Capital Lease Obligations of such Person, (i) the then current amount of all obligations, contingent or otherwise, of such Person as an account party in respect of letters of credit and letters of guaranty, and (j) all obligations, contingent or otherwise, of such Person in respect of bankers’ acceptances. Notwithstanding the foregoing, Indebtedness shall not include (i) deferred revenue, as determined in accordance with GAAP, arising in the ordinary course of business or (ii) preferred stock required to be treated as indebtedness under GAAP. The Indebtedness of any Person shall include the Indebtedness of any other entity (including any partnership in which such Person is a general partner) to the extent such Person is liable therefor as a result of such Person’s ownership interest in or other relationship with such entity, except to the extent the terms of such Indebtedness provide that such Person is not liable therefor.

 

Indebtedness for Money Borrowed shall mean, with respect to any Person, (a) Indebtedness for money borrowed and Indebtedness represented by notes payable and drafts accepted representing extensions of credit, (b) all obligations evidenced by bonds, debentures, notes or other similar instruments, (c) all Indebtedness upon which interest charges are customarily paid, (d) the principal component of all Capital Lease Obligations, (e) all actual outstanding and unpaid reimbursement obligations with respect to outstanding letters of credit (to the extent drawn), (f) all Indebtedness issued or assumed as full or partial payment for property or services (other than deferred revenue, as determined in accordance with GAAP, arising in the ordinary course of business, and trade payables and accrued expenses arising in the ordinary course of business), whether or not any such notes, drafts, obligations or Indebtedness represent Indebtedness for money borrowed, that in accordance with GAAP would be included as liabilities on the balance sheet of such Person, and (g) without duplication, Guaranties of any of the foregoing. For purposes of this definition, interest paid-in-kind or capitalized (including accreted amounts thereon) shall be deemed Indebtedness for Money Borrowed.

 

Indemnitee shall have the meaning ascribed thereto in Section 5.7 hereof.

 

6

 

Interest Payment Date shall mean any day on which interest is payable in accordance with Section 2.3 hereof.

 

Interest Period shall mean the period commencing on the applicable Drawdown Date, or the first day after the expiration of an Interest Period, and ending on the numerically corresponding day in the calendar month that is six months thereafter; provided that (a) if any Interest Period would end on a day other than a Business Day, such Interest Period shall be extended to the immediately succeeding Business Day unless such next succeeding Business Day would fall in the next calendar month, in which case such Interest Period shall end on the next preceding Business Day, (b) any Interest Period pertaining to a Loan that commences on the last Business Day of a calendar month (or on a day for which there is no numerically corresponding day in the last calendar month of such Interest Period) shall end on the last Business Day of the last calendar month of such Interest Period, and (c) no Interest Period shall extend beyond the Maturity Date.

 

Interest Rate has the meaning set forth in Section 2.2(a).

 

Investment shall mean, with respect to any Borrower, any loan, advance or extension of credit (other than extensions of trade credit in the ordinary course of business) by such Borrower to, or any Guaranty or other contingent liability with respect to the Equity Interests, indebtedness or other obligations of, or any contributions to the capital of, any other Person, or any ownership, purchase or other acquisition by such Borrower of any interest in any Equity Interests, limited partnership interests, general partnership interest, or other securities of such other Person, other than an Acquisition.

 

Lender has the meaning set forth in the Preamble.

 

LIBOR shall mean, in relation to any Loan for any Interest Period, the rate published by ICE Benchmark Administration Limited (or any successor to, or substitute for, such service, providing rate quotations comparable to those currently provided by ICE Benchmark Administration Limited, as determined by the Lender from time to time for purposes of providing quotations of interest rates applicable to dollar deposits in the London interbank market) at approximately 11:00 a.m., London time, on the first day of such Interest Period and having a maturity equal to such Interest Period. In the event that no such rate is available to the Lender, the applicable LIBOR rate for the relevant Interest Period shall be the rate per annum reasonably determined by the Lender to be the rate at which deposits in Dollars, in the approximate amount of such Loan and for a period equal to such Interest Period, would be offered to the Lender by major banks in the London interbank market at approximately 11:00 a.m., London time, on the date that is the first day of such Interest Period.

 

Lien shall mean, with respect to any right, property or asset, any mortgage, deed of trust, fiduciary transfer, lien (statutory or other) or preferential arrangement (including a securitization) of any kind or nature, mortgage, usufruct, pledge, assignment, charge or deposit arrangement, security interest, title retention agreement, levy, attachment, garnishment or other encumbrance of any kind in respect of such right, property and/or asset, whether created by statute, contract, the common law or otherwise, and whether or not choate, vested or perfected.

 

Loan shall mean each advance made by the Lender to or for the benefit of the Borrowers pursuant to Article 2 hereof.

 

Loan Documents shall mean this Agreement, the SSMRC Guarantee, the Financial Guarantee (if any), the Promissory Note and any other documents and agreements executed or delivered by the

 

7

 

Borrowers in connection with or contemplated by this Agreement, and any amendments, modifications or supplements thereto or waivers thereof.

 

Los Gatos Project has the meaning set forth in the recitals to this Agreement.

 

Material Adverse Change shall mean any material adverse change to any of the following: (a) the business, assets, liabilities, condition (financial or otherwise), results of operations, prospects or properties of the Borrowers and their Subsidiaries, taken as a whole, or (b) the binding nature, validity, or enforceability of this Agreement or the other Loan Documents, the Lender’s Liens on the Collateral, the ability of the Borrowers to perform the payment obligations or other material obligations under this Agreement or any other Loan Document or the rights and remedies of the Lender under this Agreement; in each case, whether resulting from any single act, omission, situation, status, event or undertaking, or taken together with other such acts, omissions, situations, statuses, events or undertakings.

 

Maturity Date shall mean the earlier of (i) the date that is two (2) Business Days prior to December 31, 2027 or (ii) such earlier date as payment of the Obligations in full shall be due (whether by acceleration or otherwise).

 

MPR shall mean Minera Plata Real S. de R.L. de C.V.

 

Necessary Authorizations shall mean any governmental or other regulatory authority, including but not limited to, the authorization of MIA (Manifestacion de Impacto Ambiental) by Semarnat and the change of land use application, and all other permits, approvals, licenses, filings and registrations necessary in order to enable the Borrowers to develop and operate the Los Gatos Project.

 

Net Proceeds (Asset Sales) shall mean, with respect to any sale or other disposition of assets, excluding all Net Proceeds (Insurance), by a Borrower, the difference between (a) the aggregate amount of cash or Cash Equivalents received therefrom by such Person, and (b) the sum of (i) all attorneys’, accountants’ and investment banking fees actually incurred in connection therewith, all legal, title and recording tax expenses, commissions and other fees and expenses and all federal, state, provincial, foreign and local taxes required to be paid or estimated in good faith to be payable or accrued as a liability as a consequence of such asset sale or other disposition (after taking into account any available tax credits or deductions and any tax sharing arrangements), (ii) all payments made by such Person on any Indebtedness for Money Borrowed or other Indebtedness that is secured by the assets subject to such asset sale or other disposition in accordance with the terms of any Lien upon or with respect to such assets or which must by the terms of such Lien, or in order to obtain a necessary consent to such asset sale or other disposition or by Applicable Law, be repaid out of the proceeds from such asset sale or other disposition, and (iii) amounts held in escrow to be applied as part of the purchase price (provided, that such amounts shall be included as Net Proceeds (Asset Sales) at such time as such cash is released and delivered to such Borrower).

 

Net Proceeds (Insurance) shall mean, with respect to any insurance proceeds from a casualty and, in the case of a condemnation, expropriation or similar event, condemnation or expropriation awards, net proceeds as a result of eminent domain and lost or damaged assets or similar payments, the difference between (a) the aggregate amount of cash or Cash Equivalents received in the form of proceeds of insurance paid (other than proceeds received from business interruption insurance) with respect to lost or damaged assets, awards arising from condemnation or expropriation of assets or taking by eminent domain and including by way of sale or

 

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discounting of a note, installment receivable or other receivable, but excluding any consideration received in the form of assumption of Indebtedness for Money Borrowed or other obligations relating to such properties or assets or received in any other non-cash form) therefrom by such Person, and (b) all costs actually incurred in connection therewith, including, without limitation, all legal expenses, commissions and other fees and expenses, and all federal, state, provincial, foreign and local taxes required to be paid or estimated in good faith to be payable in connection therewith.

 

Obligations shall mean all payment and performance obligations of every kind, nature and description of the Borrowers, and any other obligors to the Lender, or any of them, arising under this Agreement and the other Loan Documents (including, without limitation, any interest, fees, expenses and other charges on the Loans or otherwise under the Loan Documents that would accrue but for the filing of a bankruptcy action with respect to a Borrower, whether or not such claim is allowed in such bankruptcy action) as they may be amended from time to time.

 

OFAC shall mean the United States Department of the Treasury’s Office of Foreign Assets Control or any successor thereto.

 

Operating and Capital Cost Reserve Account shall have the meaning ascribed thereto in Section 5.12.

 

Organizational Documents shall mean with respect to any Person all formation, organizational and governing documents, instruments and agreements, including (i) with respect to any corporation, its certificate or articles of incorporation or organization, as amended, and its by-laws, as amended, (ii) with respect to any limited partnership, its certificate of limited partnership, as amended, and its partnership agreement, as amended, (iii) with respect to any general partnership, its partnership agreement, as amended and (iv) with respect to any limited liability company, its certificate or articles of organization or formation, as amended, and its operating agreement, as amended.

 

Other Taxes shall mean any and all present and future stamp, court or documentary taxes or any other excise or property taxes, or charges, impost, duties, fees or similar taxes and/or levies arising from any payment made hereunder or under any other Loan Document or from the execution, delivery or enforcement of, or otherwise with respect to any Loan Document, excluding, however, Excluded Taxes.

 

Participant shall have the meaning assigned to such term in Section 9.5(d) hereof.

 

Partner Agreement shall mean the Unanimous Omnibus Partner Agreement, dated as of January 1, 2015, among the Borrowers and the Shareholders, as amended, restated, supplemented or modified from time to time.

 

Permitted Encumbrances shall mean, with respect to any Person, the following:

 

(a)                                 liens for Taxes, assessments and other governmental charges not yet due or if due, the validity of which is being contested diligently and in good faith by appropriate proceedings by that Person and for which appropriate reserves in accordance with GAAP have been established;

 

(b)                                 the Security;

 

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(c)                                  Liens on real estate or other property for taxes, assessments, governmental charges or levies not yet delinquent or the non-payment of which is being contested in good faith by appropriate proceedings, so long as adequate reserves with respect thereto are set aside in accordance with GAAP, but only so long as no foreclosure, distraint, sale or similar proceedings have been commenced with respect thereto;

 

(d)                                 Liens of carriers, warehousemen, landlords, mechanics, vendors, repairmen, laborers and materialmen (solely to the extent arising by operation of law) incurred in the ordinary course of business and not in connection with the borrowing of money, for sums not overdue for more than thirty (30) days or, if overdue, that are being diligently contested in good faith, so long as adequate reserves with respect thereto are set aside in accordance with GAAP, but only so long as no foreclosure, distraint, sale or similar proceedings have been commenced with respect thereto;

 

(e)                                  Liens incurred in the ordinary course of business in connection with worker’s compensation and unemployment insurance and other types of social security obligations, assessments or government charges which are not overdue for more than thirty (30) days or, if overdue for more than thirty (30) days, are being contested in good faith by appropriate proceedings and for which adequate reserves with respect thereto are maintained in accordance with GAAP;

 

(f)                                   easements, rights-of-way, zoning restrictions, licenses, reservations or restrictions on use, minor defects or irregularities in title, and other similar encumbrances on the use of real property which do not individually or in the aggregate materially interfere with the ordinary conduct of the business of such Person or the use of such property including encumbrances respecting minor encroachments by the property over neighboring lands and/or permitted under agreements with the owners of such other lands and minor encroachments over the property;

 

(g)                                  Liens filed in respect of financed assets, leased assets or Capital Lease Obligations or purchase money Indebtedness incurred in the ordinary course of business of the Borrowers; provided, that (i) any such Lien attaches only to the property acquired with the proceeds of such Indebtedness and (ii) the principal amount of the Indebtedness secured thereby does not exceed the cost of such property;

 

(h)                                 Liens consisting of rights of set-off of a customary nature or bankers’ Liens on amounts on deposit, whether arising by contract or operation of law, incurred in the ordinary course of business;

 

(i)                                     any interest or title of a lessor under any lease that is not prohibited by this Agreement;

 

(j)                                    leases or subleases granted to others with respect to a Borrower’s or any of their Subsidiaries’ properties not interfering in any material respect with respect to the business of the Borrowers and their Subsidiaries, taken as a whole;

 

(k)                                 licenses and sublicenses granted to others not interfering in any material respect with the business of the Borrowers and their Subsidiaries taken as a whole;

 

(l)                                     Liens filed in respect of true leases of a Borrower or any of their Subsidiaries and Liens arising from precautionary UCC financing statements regarding operating leases or

 

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consignment or bailee arrangements entered into in the ordinary course of business of the Borrowers;

 

(m)                             non-exclusive licenses of patents, trademarks, copyrights, and other intellectual property rights in the ordinary course of business; and

 

(n)                                 Liens that are replacements of Liens permitted under the definition of “Permitted Encumbrances” in this Agreement.

 

Permitted IPO shall mean an initial public offering of the common stock of SSMRC pursuant to a registration statement under the Securities Act of 1933 in which the shares of SSMRC become publicly tradable instruments on a registered stock exchange; provided that such offering does not constitute a Material Adverse Change.

 

Person shall mean an individual, corporation, limited liability company, association, partnership, joint venture, trust or estate, an unincorporated organization, a government or any agency or political subdivision thereof, or any other entity.

 

Projections shall have the meaning ascribed thereto in Section 4.1(p) hereof.

 

Promissory Note shall mean a promissory note issued by the Borrowers and endorsed by the Guarantor under Mexican law (Ley General de Titulos y Operaciones de Credito — General Law of Negotiable Instruments and Credit Operations) evidencing the Term Loan.

 

Property shall mean all types of real, personal or mixed property and all types of tangible or intangible property.

 

Release shall mean any release, spill, emission, leaking, pumping, pouring, injection, escaping, deposit, disposal, discharge, dispersal, dumping, leaching or migration of any Hazardous Material into the indoor or outdoor environment (including the abandonment or disposal of any barrels, containers or other closed receptacles containing any Hazardous Material), including the movement of any Hazardous Material through the air, soil, surface water or groundwater, all in violation of Environmental Laws.

 

Restricted Payment shall mean (a) any direct or indirect distribution, dividend or other payment to any Person (other than to a Borrower or any Subsidiary of a Borrower) on account of any Equity Interests in a Borrower or any of their Subsidiaries (other than dividends payable solely in stock of or other Equity Interests in such Person and stock splits), including, without limitation, any direct or indirect distribution, dividend or other payment to any Person (other than to a Borrower or any Subsidiary of a Borrower) on account of any warrants or other rights or options to acquire Equity Interests of a Borrower or any of their Subsidiaries, or (b) any payment of principal of, or interest on, or payment into a sinking fund for the retirement of, or any defeasance of Indebtedness subordinated to the Loans.

 

Restricted Purchase shall mean any payment (including, without limitation, any sinking fund payment, prepayment or installment payment) on account of the purchase, redemption, defeasance or other acquisition or retirement of any Equity Interest in a Borrower or any of their Subsidiaries, including, without limitation, any warrants or other rights or options to acquire shares of capital stock or other Equity Interests in a Borrower or any of their Subsidiaries.

 

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Sanctioned Country shall mean a country subject to the sanctions program identified on the list maintained by OFAC and available at the following website or as otherwise published from time to time: http://www.treas.gov/offices/enforcement/ofac/programs/.

 

Sanctioned Person shall mean (a) any Person named on the list of Specially Designated Nationals or Blocked Persons maintained by OFAC available at http://www.treas.gov/offices/eotffc/ofac/sdn/index.html or as otherwise published from time to time, (b) any agency, authority, or subdivision of the government of a Sanctioned Country, or (c) any Person or organization controlled by a Sanctioned Country.

 

Sanctions shall mean the sanction programs identified on the list maintained by OFAC and available at the following website or as otherwise published from time to time: http://www.treas.gov/offices/enforcement/ofac/programs/.

 

Security shall mean the Encumbrances created by the Security Documents.

 

Security Documents shall mean the documents listed on Schedule 2 and any other agreement or instrument providing for collateral for the Obligations, whether now or hereafter in existence, and any filings, instruments, agreements and documents related thereto or to this Agreement that are executed to guarantee and/or govern and/or secure all or any part of the Loan, interest thereon and, in general, providing the Lender with Collateral for the Obligations (whether or not any such document also secured moneys from time to time owing pursuant to any other document or agreement).

 

Shareholders has the meaning ascribed thereto in the recitals of this Agreement.

 

Solvent shall mean, as to any Person as of the date of determination, that (a) the fair value of such Person’s Property is greater than the amount of such Person’s liabilities (including disputed, contingent and unliquidated liabilities); (b) the present fair saleable value of the Property of such Person is not less than the amount that will be required to pay the probable liability of such Person on its debts as they become absolute and matured; (c) such Person is able to realize upon its Property and pay its debts and other probable liabilities (including disputed, contingent and unliquidated liabilities) as they mature in the normal course of business; (d) such Person has not incurred, does not intend to and does not believe that it will incur, debts or liabilities beyond such Person’s ability to pay such debts and liabilities as they mature; and (e) such Person is not engaged in a business or transaction, and is not about to engage in a business or transaction, for which such Person’s Property would constitute unreasonably small capital.

 

SSMRC has the meaning set forth in the recitals of this Agreement.

 

SSMRC Guarantee shall mean the Guarantee, dated as of the date hereof, made by SSMRC in favor of Lender in respect of not less than 70% of the Obligations, as amended, restated, supplemented or modified from time to time.

 

SSMRC Lux has the meaning set forth in the recitals of this Agreement.

 

Subsidiary shall mean, as applied to any Person, (a) any corporation of which more than fifty percent (50%) of the outstanding stock having ordinary voting power to elect a majority of its board of directors, regardless of the existence at the time of a right of the holders of any class or classes of securities of such corporation to exercise such voting power by reason of the happening of any contingency, or any partnership or limited liability company of which more than fifty

 

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percent (50%) of the outstanding Equity Interests, is at the time owned directly or indirectly by such Person, or by one or more Subsidiaries of such Person, or by such Person and one or more Subsidiaries of such Person, or (b) any other entity which is directly or indirectly Controlled by such Person, or by one or more Subsidiaries of such Person, or by such Person and one or more Subsidiaries of such Person.

 

Taxes shall have the meaning ascribed thereto in Section 2.7(a) hereof.

 

Term Loan shall mean Loans advanced by the Lender to the Borrowers under this Agreement in the aggregate principal amount not to exceed $210,000,000.

 

to the knowledge of the Borrowers shall mean actually known by or reasonably should have been known (using reasonable diligence) by any executive officers of Borrowers, or any replacement of any such officer.

 

Up Front Fee shall have the meaning ascribed thereto in Section 2.11(a) hereof.

 

U.S. Dollars and the sign $ shall mean lawful money of the United States of America.

 

1.2                                                                               Other Definitional Provisions.

 

All definitions contained in this Agreement are equally applicable to the singular and plural forms of the terms defined. Unless the context clearly states otherwise, the use of “include” or “including” shall be by way of example rather than by limitation. The words “hereof,” “herein” and “hereunder” and words of similar import referring to this Agreement refer to this Agreement as a whole and not to any particular provision of this Agreement. The term “continuing,” “continuation” or “continuance” means, in reference to any Default or Event of Default that has occurred, that such Default or Event of Default has not been either cured or waived in writing by the Lender. Unless otherwise specified, all Article and Section references pertain to this Agreement. All references in this Agreement to any agreement shall be deemed to mean and refer to such agreement as it may be amended, restated, modified or supplemented from time to time, except as otherwise expressly provided in such reference or otherwise expressly prohibited by the terms of this Agreement.

 

1.3                                                                               Currency Matters.

 

Principal, interest, reimbursement obligations, fees, and all other amounts payable under this Agreement and the other Loan Documents to the Lender shall be payable in the currency in which such Obligations are denominated. All calculations, comparisons, measurements or determinations under this Agreement shall be made in U.S. Dollars.

 

ARTICLE 2

LOANS

 

2.1                                                                               Loans

 

Subject to the terms and conditions of this Agreement, the Lender agrees to make the Term Loan to the Borrowers. During the Availability Period, the Term Loan may be advanced to a Borrower not more than once each calendar quarter (each such advance, a “Drawdown”), by written request of the Borrowers to the Lender not less than five (5) Business Days in advance of the date of any such advance (each, a “Drawdown Date”), provided, that each Drawdown must be in purpose and amount set forth in

 

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the Budget; provided further, that any undrawn amounts as of the end of the Availability Period will cease to be available to the Borrowers.

 

Loans shall be repaid by the Borrowers, on a joint and several basis, in U.S. Dollars, commencing two (2) Business Days prior to June 30, 2021, in fourteen (14) consecutive semi-annual installments, each in an amount equal to the sum of (i) one fourteenth (1/14) of the aggregate principal amount outstanding under this Agreement as of the Availability Termination Date, plus (ii) one fourteenth (1/14) of any capitalized interest accrued as of December 31, 2019, plus (iii) all accrued, unpaid interest payable in respect of the principal then outstanding, and shall be payable two (2) Business Days prior to each month end of June and December until the Maturity Date. No portion of principal paid may be re-borrowed after being repaid.

 

2.2                                                                               Interest

 

(a)                                 Subject to the remainder of this Section 2.2, the unpaid principal amount of the Loans shall bear interest from the applicable Drawdown Date thereof until paid in full, and Borrowers promise, on a joint and several basis, to pay interest on the unpaid principal amount of each Loan at a rate per annum equal to LIBOR plus the Applicable Margin (the “Interest Rate”).

 

(b)                                 Immediately upon the occurrence, and during the continuance, of an Event of Default, the Default Rate shall apply to the outstanding principal balance of the Loans. Such interest shall accrue from the occurrence of such Event of Default until the earlier of (i) the date of cure by the Borrower of the applicable Event of Default, and (ii) payment in full of the Obligations.

 

2.3                                                                               Interest Payment Dates

 

Interest shall accrue from day to day on the basis of a 360-day year, shall be calculated beginning on and including the date of the Drawdown to, but excluding, the date of any repayment thereof if paid prior to 3:00 p.m. (New York time) and shall be payable in arrears on the date that is two (2) Business Days prior of June 30 and December 31 of each year; provided, that until commencement of production by the Los Gatos Project, interest shall accrue and be capitalized on a monthly basis, with the first payment in cash on the day that is two (2) Business Days prior to December 31, 2019, or on a later date in the event of production delay, subject to Lender’s consent.

 

2.4                                                                               Prepayments

 

(a)                                 Voluntary Prepayments. Subject to Section 2.4(c), Borrowers may from time to time prepay the Loans in whole or in part, together with all accrued and unpaid interest in respect of the principal amount so prepaid without any premium or penalty. Any voluntary prepayment shall be in a principal amount of not less than $1,000,000 unless the Loan is being prepaid in full.

 

(b)                                 Mandatory Prepayments.

 

(i)                                     On the first Business Day following the receipt of (y) any Net Proceeds (Asset Sales) of Borrowers, or (z) any Net Proceeds (Insurance) of Borrowers, the Borrowers shall utilize one hundred percent (100%) of the amount of any cash receipts described in clauses (y) or (z) above, if any, to make a mandatory prepayment of the Loans, together with all accrued and unpaid interest in respect

 

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of the principal amount so prepaid; provided, however that, so long as no Event of Default shall have occurred and be continuing, the Borrowers may give written notice to Lender that they plan to reinvest all or any portion of such Net Proceeds (Asset Sales) or Net Proceeds (Insurance) for loss to property in assets used or useful in the Borrowers’ business in accordance with the terms of the Partner Agreement so long as within 90 days following receipt of such Net Proceeds (Asset Sales), such purchase shall have been consummated, or within 90 days of a Borrower’s receipt of Net Proceeds (Insurance), Borrowers commence and diligently pursue the restoration of the Property for which such Net Proceeds (Insurance) are being paid (as certified by the Borrowers in writing to the Lender).

 

(ii)                                  After the occurrence of the Availability Termination Date, on the date that is two (2) Business Days prior to August 31 and February 28 (or 29 in any leap year), the Borrowers shall utilize 70% of Excess Cash Flow of the Borrowers, calculated for the previous six-month period ended June 30 or December 31, as applicable, to prepay the Loans, together with all accrued and unpaid interest in respect of the principal amount so prepaid, subject to adjustment based on year-end audited financials to the extent required by the Management Committee under the Partner Agreement.

 

(c)                                  The Borrowers shall give the Lender written notice of any prepayment not later than five (5) Business Days prior to the date of such prepayment (which shall be a Business Day), specifying the aggregate principal amount of the Loan(s) to be prepaid and the date and amount of prepayment. If any repayment is remitted on a day other than an Interest Payment Date, the Borrowers shall pay all Breakage Costs suffered by the Lender in connection therewith.

 

(d)                                 Prepayments made under this Section 2.4 shall be applied first to principal in inverse order of maturity. Any amounts prepaid under this Section 2.4 may not be re-borrowed.

 

2.5                                                                               Repayment

 

The principal amount of the Loans, together with all accrued and unpaid interest or respect thereof, shall be repaid in full on the Maturity Date.

 

2.6                                                                               Payment

 

(a)                                 Making and Settlement of Payments. All payments of principal of, or interest on, the Loans, and of all fees and other amounts due hereunder or under any other Loan Document, shall be made by Borrowers to the Lender in immediately available funds as specified in Annex I (or such other location specified by the Lender in writing) not later than 3:30 p.m. New York time on the date due, and funds received after that hour shall be deemed to have been received on the following Business Day.

 

(b)                                 Application of Certain Payments. All payments hereunder shall be applied (w) first, to any fees, costs or expenses owed by the Borrowers hereunder or under any other Loan Document, (x) second, to any accrued and unpaid interest, excluding capitalized interest, (y) third, to any principal amounts outstanding, including capitalized interest, and (z) fourth, without duplication, to any other amounts under the Loan Documents.

 

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(c)                                  Payment Dates. If any payment of principal or interest with respect to any of the Loans or of any fees falls due on a day which is not a Business Day, then such due date shall be extended to the immediately following Business Day and, in the case of principal, additional interest shall accrue and be payable for the period of any such extension.

 

2.7                                                                               Manner of Payment

 

(a)                                 The Borrowers agree to pay principal, interest, fees and all other amounts due hereunder or under any other Loan Document without set-off or counterclaim or any deduction whatsoever and free and clear of all taxes and levies (other than withholding taxes), unless required by Applicable Law. If the Borrowers are required by Applicable Law to deduct any taxes other than Excluded Taxes (“Taxes”) from or in respect of any sum payable to the Lender hereunder, under any Note or under any other Loan Document: (i) the Borrowers shall increase the amount payable hereunder or thereunder, as applicable, to the extent necessary to provide that, after making all required deductions or withholdings for Taxes (including deductions applicable to additional sums payable under this Section 2.7(a)), the Lender receives an amount equal to the sum it would have received had no such deductions been made and sums payable under this Agreement shall be increased accordingly; (ii) the Borrowers shall make such deductions from such sums payable hereunder or thereunder, as applicable, and pay the amount so deducted to the relevant taxing authority as required by Applicable Law; and (iii) the Borrowers shall provide the Lender with evidence that such deducted amounts have been paid to the relevant taxing authority by delivery to the Lender on whose account such payment was made of the official tax receipts or copies of such receipts within thirty (30) days after payment for such tax or, to the extent such receipts are not available, such other evidence as may be reasonably satisfactory to the Lender. If the Borrowers fail to make any such payment when due, the Borrowers shall indemnify the Lender for any incremental Taxes, interest or penalties that may become payable by the Lender as a result of such failure.

 

(b)                                 In addition, the Borrowers shall pay any Other Taxes to the relevant Governmental Entity in accordance with Applicable Law.

 

(c)                                  The Borrowers shall indemnify the Lender, promptly after written demand therefore, for the full amount of any Taxes (including Other Taxes) paid by the Lender, as the case may be, on or with respect to any payment by or on account of any obligation of the Borrowers or under any other Loan Document (including Taxes imposed or asserted on or attributable to amounts payable under this Section 2.7) and any penalties, interest and reasonable, documented, out-of-pocket expenses arising therefrom or with respect thereto, in each case whether or not such Taxes were correctly or legally imposed or asserted by the relevant Governmental Entity. A certificate as to the amount of such payment or liability delivered to the Borrowers by the Lender shall be conclusive absent manifest error.

 

2.8                                                                               Lender Tax Forms

 

On or prior to the Closing Date, and prior to the date on which any Person becomes a Lender hereunder, and from time to time thereafter if required by Applicable Law due to a change in circumstances and as reasonably requested by the Borrowers (unless such Lender is legally unable to do so), each Foreign Lender shall provide the Borrowers with such properly completed documentation prescribed by Applicable Law as necessary to permit any all payments hereunder or under any Loan Document to be made without or with reduced US withholding tax. In the event that the Borrowers

 

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withhold a portion of any payment hereunder or under any Note or other Loan Document in accordance with this Section 2.8, the Borrowers shall provide evidence that such taxes of any nature whatsoever in respect of this Agreement, or other Loan Document shall have been paid to the appropriate taxing authorities by delivery to the Lender on whose account such payment was made of the official tax receipts or notarized copies of such receipts (or such other evidence of payment as shall be reasonably acceptable to Lender) within thirty (30) days after payment of such tax. If the Borrowers fail to make any such withholding payment when due, the Borrowers shall indemnify the Lender for any incremental taxes, interest or penalties that may become payable by the Lender as a direct result of any such failure.

 

2.9                                                                               FATCA Documentation.

 

If a payment made to Lender under any Loan Document would be subject to US federal withholding Tax imposed under FATCA if Lender were to fail to comply with the applicable reporting requirements of FATCA, Lender shall deliver to the Borrowers at the time or times prescribed by law and at such time or times reasonably requested by the Borrowers such documentation prescribed by applicable law and such additional documentation reasonably requested by the Borrowers as may be necessary for the Borrowers to comply with their obligations under FATCA and to determine that Lender has complied with Lender’s obligations under FATCA or to determine the amount, if any, to deduct and withhold from such payment. Solely for purposes of this Section 2.9, “FATCA” shall include any amendments made to FATCA after the date of this Agreement.

 

2.10                                                                        Capital Adequacy; Change in Law

 

If after the Closing Date, the adoption of any Applicable Law or guideline regarding capital adequacy, or any Change in Law or any change in the interpretation or administration thereof by any Governmental Entity, central bank or comparable agency charged with the interpretation or administration thereof, or compliance by any third party lender to Lender with any request or directive regarding capital adequacy (whether or not having the force of law) of any such authority, central bank or comparable agency, has or would have the effect of reducing the rate of return on such third party lender’s capital in respect of amounts advanced to Lender in order for Lender to make the Loans, to a level below that which it could have achieved but for such adoption, change or compliance (taking into consideration such third party lender’s policies with respect to capital adequacy immediately before such adoption, change or compliance) by an amount reasonably deemed by such third party lender, in good faith, to be material, and if Lender is obligated to pay such third party lender such additional amounts as shall be sufficient to compensate such third party lender for such reduced return, Borrower shall promptly reimburse on demand to the Lender such additional amounts. Notwithstanding the foregoing, the Borrowers shall only be obligated to compensate the Lender for any amount under this subsection arising or occurring at any time (i) in the case of each such request for compensation, during the period commencing not more than ninety (90) days prior to the date on which the Lender submits such request and (ii) during which, because of the unannounced retroactive application of such law, regulation, interpretation, request or directive, the third party lender could not have known that the resulting reduction in return might arise. A certificate of the Lender delivered to the Borrowers setting forth the amount to be paid to the Lender by the Borrowers as a result of any event referred to in this paragraph and supporting calculations in reasonable detail shall be presumptively correct absent manifest error.

 

2.11                                                                        Fees

 

(a)                                 On or prior to the Closing Date, Borrowers shall pay to Lender an up front fee equal to $4,200,000 (the “Up Front Fee”).

 

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(b)                                 Commencing on the Closing Date, SSMRC shall pay to Lender an Arrangement Fee equal to 2.0% per annum (the “Arrangement Fee”). The Arrangement fee shall be paid in two (2) semi-annual installments, on that date which is two (2) Business Days prior to June 30 and December 31 each fiscal year until Maturity, and shall be calculated based upon 70% of the outstanding principal amount of Loans then outstanding on each semi-annual installment payment date. Such fee shall be earned when due. By way of example, if the outstanding principal balance of the Loans is $100,000,000 two (2) Business Days prior to June 30, the semi-annual installment of the Arrangement Fee shall be $700,000 ($100,000,000 times 70% times 1%), with the December 31 semi-annual installment calculated in a similar manner based upon the outstanding principal balance of the Loans two (2) Business Days prior to December 31.

 

ARTICLE 3

CONDITIONS PRECEDENT; CONDITIONS SUBSEQUENT

 

3.1                                                                               Conditions Precedent to the Initial Drawdown Under the Loans

 

The obligation of the Lender to advance the initial Drawdown is subject to the prior or contemporaneous fulfillment of each of the following conditions on or prior to October 31, 2017, unless otherwise agreed by Lender:

 

(a)                                 The Lender shall have received each of the following, each in form and substance satisfactory to the Lender:

 

(i)                                     this Agreement and the Promissory Note duly executed and delivered by the Borrowers;

 

(ii)                                  the SSMRC Guaranty duly executed and delivered by SSMRC;

 

(iii)                               a duly executed secretary’s certificate of the Borrowers, including a certificate of incumbency with respect to Authorized Signatories, together with the following items: (A) a true, correct and complete copy of each Organizational Document of the Borrowers as in effect on the Closing Date, (B) certificates of status for the Borrowers issued by the state of its formation and for each state in which such Borrowers are qualified to do business and (C) a true, complete and correct copy of the corporate resolutions of the Borrowers authorizing the execution, delivery and performance of this Agreement and the other Loan Documents to which it is a party;

 

(iv)                              a duly executed secretary’s certificate of each Borrower, including a certificate of incumbency with respect to Authorized Signatories, together with the following items: (A) a true, correct and complete copy of each Organizational Document of such Person as in effect on the Closing Date, (B) a certificates of status issued by the state of its formation and (C) a true, complete and correct copy of the corporate resolutions of such Person authorizing the execution, delivery and performance of the Loan Documents to which it is a party;

 

(v)                                 a duly executed certificate of a senior financial officer of the Borrowers, certifying that (i) each of the representations and warranties in Article 4 hereof and in the other Loan Documents are true and correct in all material respects as of the date thereof and after giving effect to the initial Drawdown, (ii) no Default

 

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or Event of Default then exists or is continuing or will exist after giving effect to the initial Drawdown, (iii) no material litigation, (iv) that Borrowers are Solvent, and (v) there has been no Material Adverse Change since December 31, 2016.

 

(vi)                              legal opinions of counsel to the Borrowers addressed to the Lender, in each case in form and substance reasonably satisfactory to the Lender;

 

(vii)                           the Security Documents shall have been executed and delivered by the Borrowers; and

 

(viii)                        all registration, filing or recording documents necessary to preserve, protect or perfect the enforceability and first priority of the Security, subject in all events to the Permitted Encumbrances, shall have been completed all satisfactory in form and substance to the Lender, including but not limited to ratification of the Security Documents (apostilled and translated into Spanish) before a Mexican Notary Public and entry into applicable public registries;

 

(b)                                 The Lender shall have received evidence that all Necessary Authorizations required for the execution, delivery and performance of this Agreement by the Borrowers have been obtained or made, are in full force and effect and are not subject to any pending or, to the actual knowledge of the Borrowers, threatened reversal or cancellation.

 

(c)                                  The Borrowers shall have paid to the Lender all outstanding fees (including reasonable legal fees) to the extent then due and payable, including but not limited to the Up Front Fee and, if a Drawdown is made on the Closing Date, the Arrangement Fee.

 

(d)                                 The Lender shall have received the Projections which shall be in form and substance satisfactory in all respects.

 

(e)                                  The Shareholders shall have each executed and delivered the Amendment to Partner Agreement setting forth their agreement as to the funding of additional funds required for completion of the Los Gatos Project. The Remaining Required Capital Contributions (as defined in the Amendment to Partner Agreement) shall be made on a pro rata basis concurrent with each Loan advanced by Lender under this Agreement following the advance of $79.25 million in Loan proceeds.

 

(f)                                   The Lender shall have received evidence to its reasonable satisfaction that SSMRC shall have raised proceeds from the issuance of its Equity Interests, which, subject to Lender having funded the Dowa MPR Loan, as defined in and in accordance with the Amendment to Partner Agreement, shall be in an amount sufficient for SSMRC to make capital contributions to Borrowers in an aggregate amount not less than $25 million less any capital contributions made by SSMRC and SSMRC Lux since July 1, 2017.

 

3.2                                                                               Conditions Precedent to Subsequent Drawdowns

 

The obligation of the Lender to advance subsequent Drawdowns is subject to the prior or contemporaneous fulfillment of each of the following conditions:

 

(a)                                 No Default or Event of Default shall have occurred and be continuing.

 

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(b)                                 Each of the representations and warranties in Article 4 hereof and in the other Loan Documents are true and correct in all material respects as of the date thereof and after giving effect to such Drawdown.

 

Each request for a Loan by any Borrower hereunder shall constitute a representation and warranty by each Borrower as of the date of such Loan that the conditions contained in this subsection shall have been satisfied.

 

ARTICLE 4

REPRESENTATIONS AND WARRANTIES

 

4.1                                                                               Representations and Warranties

 

Each Borrower hereby agrees, represents and warrants, upon the Closing Date and on each Drawdown Date, in favor of the Lender that:

 

(a)                                 Name; Organization; Ownership; Power; Qualification. Such Person (i) has been duly and validly formed and is validly subsisting and in good standing as a commercial company under the laws of its jurisdiction of formation and (ii) is duly qualified to conduct the business in which it is currently engaged in each jurisdiction in which it or the nature of its business requires qualification, except to the extent failure to be so qualified would not cause a Material Adverse Change. The name of such Person as it appears in official filings in the state of its formation, the type of entity of such Person, organizational identification number issued by the state of formation of such Person or a statement that no such number has been issued by the state of formation or incorporation, the location of the chief executive office of such Person, principal place of business, and the locations of its books and records concerning its assets, in each case, as of the Closing Date, is set forth on Schedule 1 attached hereto.

 

(b)                                 Authorization; Enforceability. Such Person has the corporate power and has taken all necessary corporate and organizational action to borrow hereunder, to execute, deliver and perform this Agreement and each of the other Loan Documents to which it is a party in accordance with their respective terms, and to consummate the transactions contemplated hereby and thereby. This Agreement and the other Loan Documents have been duly executed and delivered by such Person and each of the other Loan Documents to which such Person is a party is, a legal, valid and binding obligation of such Person, enforceable against such Person, in accordance with its terms, subject, as to enforcement of remedies, to applicable bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium and similar laws affecting creditors’ rights and remedies generally, and subject, as to enforceability, to general principles of equity.

 

(c)                                  Compliance with Other Loan Documents and Contemplated Transactions. The execution, delivery and performance, in accordance with their respective terms, by the such Person of this Agreement and the other Loan Documents, as applicable, to which is a party, and the consummation of the transactions contemplated hereby and thereby, do not and will not (i) require any consent or approval, governmental or otherwise, not already obtained, (ii) violate any Applicable Law respecting such Person, (iii) conflict with, result in a breach of, or constitute a default under the Organizational Documents of such Person, (iv) conflict with, result in a breach of, or constitute a default under any material indenture, agreement, or other instrument, to which such Person is a party or by which it or its properties may be bound, or (v) result in or require the creation or imposition of any

 

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Lien upon or with respect to any property now owned or hereafter acquired by such Person, other than Permitted Encumbrances.

 

(d)                                 Business. The Borrowers are engaged solely in the business of development and operation of the Los Gatos Project.

 

(e)                                  Necessary Authorizations. The Borrowers have secured all Necessary Authorizations for the execution and delivery of this Agreement and the Loan Documents to which it is a party, and none of the Necessary Authorizations are the subject of any pending or, to the best of such Person’s knowledge, threatened revocation, except where the failure to secure such Necessary Authorization or the failure of such Necessary Authorization to be in full force and effect could not reasonably be expected to be Material Adverse Change.

 

(f)                                   Compliance with Law. The Borrowers are in compliance with all Applicable Law (excluding any Environmental Law which is the subject of (g), below).

 

(g)                                  Environmental Laws. Neither any Borrower, their Subsidiaries nor any of their operations are subject to any outstanding written order, consent decree or settlement agreement with any Person relating to any Environmental Law, any Environmental Claim, or any Hazardous Materials Activity that, individually or in the aggregate, could reasonably be expected to cause a Material Adverse Change. There are and, to Borrowers’ knowledge, have been, no conditions, occurrences, or Release in violation of any Environmental Law which could reasonably be expected to form the basis of an Environmental Claim against the Borrowers that, individually or in the aggregate, could reasonably be expected to be a Material Adverse Change. No Borrower has filed any notice under any Environmental Law indicating past or present treatment of Hazardous Materials at any facility, and no such Person’s operations involves the generation, transportation, treatment, storage or disposal of hazardous waste, as defined under Environmental Laws that, individually or in the aggregate, could reasonably be expected to cause a Material Adverse Change. To the knowledge of the Borrowers, no event or condition has occurred or is occurring with respect to Borrowers relating to any Environmental Law, any Release of Hazardous Materials, or any Hazardous Materials Activity which individually or in the aggregate has had, or could reasonably be expected to be, a Material Adverse Change.

 

(h)                                 Title to Assets. The Borrowers and each of their Subsidiaries have good and valid title to, or the right to use, their Property, free and clear of all Encumbrances except Permitted Encumbrances.

 

(i)                                     Litigation. There are no actions, suits or proceedings pending or, to the knowledge of the Borrowers, threatened against or affecting a Borrower or any of their Subsidiaries as of the date hereof and as of each Drawdown Date, which purports to affect the legality or enforceability of the Agreement or any of the other Loan Documents, which seeks to enjoin the performance of any of the Loan Documents, or which could reasonably be expected to cause a Material Adverse Change.

 

(j)                                    Taxes. All federal, state, provincial and other material income tax returns and material non-income tax returns of the Borrowers required by law to be filed have been duly filed and are true, complete and correct in all material respects, and all federal, state and other income taxes and material non-income taxes, including, without limitation, withholding taxes, assessments and other governmental charges or levies required to be withheld, remitted or paid by the Borrowers or imposed upon any Borrower or any of its properties,

 

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income, profits or assets, which are due and payable, have been properly withheld, remitted, or paid, except any such taxes (i) (x) the payment of which the Borrowers are diligently contesting in good faith by appropriate proceedings, (y) for which adequate reserves have been provided on the books of the Borrowers involved, and (z) as to which no Lien other than Permitted Encumbrances has attached and no foreclosure, distraint, sale or similar proceedings have been commenced, (ii) which may result from audits not yet conducted or (iii) the failure of which to pay could not reasonably be expected to cause a Material Adverse Change. The charges, accruals and reserves on the books of the Borrowers and each of its Subsidiaries in respect of taxes are, in the reasonable judgment of the Borrowers, adequate in accordance with GAAP.

 

(k)                                 No Material Adverse Change. There has occurred no Material Adverse Change since December 31, 2016.

 

(l)                                     Mexican Law Matters.

 

(i)                                     The obligations of each Borrower under the Loan Documents are commercial in nature and are subject to civil and commercial law with respect thereto. The execution and performance of the Loan Documents by each Borrower constitute private and commercial acts and not government or public acts. Each Borrower and its Property are subject to legal actions regarding its Obligations and it is not entitled to immunity on the grounds of sovereignty or otherwise based on the jurisdiction of any court or based on any legal process (whether through service or notice, attachment prior to judgment, attachment in aid of execution, execution or otherwise) in connection therewith. If any Borrower or any of its Property should become entitled to any such right of immunity, such Borrower shall have effectively waived such right.

 

(ii)                                  None of the employees of the Borrowers are on strike, nor has a strike been called, and none of the Borrowers are subject to labor or collective proceedings.

 

(iii)                               None of the Borrowers have or are subject to any agrarian, community or land ownership conflict.

 

(iv)                              All of the activities performed by the Borrowers are allowed and observant of Applicable Law and pursue only company purposes allowed by Applicable Law and in accordance with the object of the company. The resources Borrowers obtain from their activity are legal and the destination of the resources they shall obtain by virtue of the Loan and its accessories are and shall always be legal; and the Borrowers have implemented and maintain satisfactory internal procedures and control systems that, pursuant to Applicable Law and in accordance with the generally accepted guidelines, are required to enable the suitable knowledge of their clients and operations with the purpose of preventing that they be used as an instrument of third parties for money laundering, financing of terrorist activities, frauds or other manners of corruption or illegal activity.

 

(m)                             Governmental Regulation. The Borrowers are not required to obtain any consent, approval, authorization, permit or license which has not already been obtained from, or effect any filing or registration which has not already been effected with, any Governmental Entity in connection with the execution and delivery of this Agreement or any other Loan Document, or their performance thereunder, in accordance with the

 

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respective terms thereof, except for usual and customary filings that are necessary to perfect the Security under Applicable Law.

 

(n)                                 No Default. No Default or Event of Default has occurred which is continuing.

 

(o)                                 Accuracy and Completeness of Information. All information, reports, prospectuses and other papers and data relating to the Borrowers and furnished by the Borrowers to the Lender (other than the Projections, other financial projections, budgets, forward-looking statements and third-party generated industry data), taken as a whole, were, at the time furnished, true, complete and correct in all material respects (except as supplemented, updated or corrected by subsequent information, reports, prospectuses and other papers and data provided on or prior to the Closing Date), and all projections (the “Projections”), consisting of a combined projected cash flow statement, an income statement, and a balance sheet for the Borrowers (i) are based on estimates and assumptions that the Borrowers believe in good faith to be reasonable at the time such Projections were prepared; and (ii) reflect, as of the date prepared, the Borrowers’ good faith forecast of the results of operations and other information projected therein for the periods covered thereby. Notwithstanding the foregoing, any inaccuracy or breach in the representations and warranties set forth in this Section 4.1(p) shall not constitute a Default or an Event of Default in the event Lender had actual knowledge of such inaccuracy or breach prior to the Closing Date.

 

(p)                                 Security. The Security constitutes a valid first priority security interest on such of the Property of the Borrowers as is expressed to be subject thereto, in favor of the Lender, subject only to Permitted Encumbrances.

 

(q)                                 Indebtedness. As of the Closing Date, and after giving effect to the Loans hereunder on the Closing Date and the application of the proceeds thereof, Borrowers have no Indebtedness for Money Borrowed other than the Loans.

 

(r)                                    Solvency. As of the Closing Date and after giving effect to the transactions contemplated by the Loan Documents on the Closing Date the Borrowers will be Solvent.

 

(s)                                   Patents, Trademarks, Franchises, etc. The Borrowers and each of their Subsidiaries own, possess, or have (i) the right to use all necessary patents, trademarks, trademark rights, trade names, trade name rights, service marks, and copyrights currently used by such Person; and (ii) all rights with respect to franchises, and under licenses, and rights with respect thereof, reasonably necessary to conduct its respective business as now conducted without known conflict with any patent, trademark, trademark rights, trade name, trade name rights, service mark, franchise, license, or copyright of any other Person, and in each case, subject to no Lien except for Permitted Encumbrances. All such patents, trademarks, trademark rights, trade names, trade name rights, service marks, copyrights, franchises, and licenses that are registered, together with all state and/or federal application or registration numbers held by the Borrowers, are to the best of the Borrowers’ knowledge, valid, subsisting and enforceable, and the holder thereof is in compliance with all of the provisions thereof, and no such asset or agreement is subject to any pending or, to the best of the Borrowers’ knowledge, threatened attack or revocation.

 

(t)                                    Use of Proceeds. The proceeds of any Loan will be used only for the purposes specified in Section 5.6 hereof.

 

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(u)                                 Sanctioned Persons; Sanctioned Countries. None of the Borrowers or any of their Affiliates (a) is a Sanctioned Person or (b) does business in a Sanctioned Country or with a Sanctioned Person in violation of the economic sanctions of the United States administered by OFAC. Borrowers will not use the proceeds of any extension of credit hereunder to fund any operation in, finance any investments or activities in, or make any payments to, a Sanctioned Person or a Sanctioned Country.

 

(v)                                 Stamp Duties. No stamp, registration or similar tax or charge is payable by Borrowers in connection with the entering into, and performance by Borrowers of their obligations under, any Loan Document to which Borrowers are a party, except for those which have already been paid or will be timely paid by Borrower.

 

(w)                               OFAC. No Borrower or any of their respective Affiliates or agents acting or benefiting in any capacity in connection with this Agreement is a “Specially Designated National” under the sanctions administered by the Office of Foreign Assets Control and shall not use the proceeds from the Loans in any transaction for the purpose of financing activities of any Person subject to any US sanctions administered by OFAC, including, without limitation, those implemented against India, the United Nations, the European Union or any other country by regulation codified in Subtitle B, Chapter V of Title 31, U.S. Code of Federal Regulations.

 

4.2                                                                               Survival of Representations and Warranties, etc.

 

All representations and warranties made under this Agreement and any other Loan Document shall be deemed to be made, and shall be true and correct in all material respects (provided that if any representation or warranty already includes a materiality or material adverse change qualifier, such representation or warranty shall be true and correct in all respects) at and as of the Closing Date and on each Drawdown Date, except to the extent relating specifically to the Closing Date or any other particular date expressly set forth above. All representations and warranties made under this Agreement and the other Loan Documents shall survive, and not be waived by, the execution hereof by the Lender, any investigation or inquiry by the Lender or the making of any Loan under this Agreement.

 

ARTICLE 5

AFFIRMATIVE COVENANTS

 

So long as any of the Obligations is outstanding and unless the Lender shall otherwise consent in writing:

 

5.1                                                                               Preservation of Existence and Similar Matters

 

Each Borrower will do all things necessary (i) to maintain its existence as a legally valid and subsisting limited liability company under the laws of its jurisdiction of organization, and (ii) to maintain all rights, privileges and franchises necessary in the normal conduct of its business.

 

5.2                                                                               Conduct of Business; Maintenance of Assets

 

Each Borrower will (a) continuously and operate actively its business according to good business practices and maintain all of its properties useful or necessary in its business in good working order and condition (reasonable wear and tear excepted and except as may be disposed of in accordance with the terms of this Agreement); and (b) keep in full force and effect its existence and comply in all respects

 

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with the laws and regulations governing the conduct of its business where the failure to do so could reasonably be expected to have a Material Adverse Effect.

 

5.3                                                                               Accounting Methods and Financial Records

 

Each Borrower will maintain a system of accounting established and administered in accordance with GAAP, keep adequate records and books of account in which complete entries will be made and reflecting all transactions, in each case to the extent consistent with good business practice, and keep accurate and complete records of its respective properties and assets.

 

5.4                                                                               Insurance

 

Borrowers will maintain with financially sound and reputable insurance companies liability, casualty, property and business interruption insurance (including, without limitation, insurance with respect to its tangible assets) in at least such amounts and against at least such risks as are usually and customarily insured against in the same general area by similar companies engaged in the same or a similar business; and furnish to Lender, upon the reasonable request of the Lender, full information as to the insurance carried.

 

5.5                                                                               Payment of Taxes and Claims

 

Each Borrower will pay, discharge, withhold and remit all taxes when due, including, without limitation, withholding taxes, assessments and governmental charges or levies required to be paid, withheld or remitted by it or imposed upon it or its income or profits or upon any properties belonging to it, as required by Applicable Law, prior to the date on which penalties attach thereto, and all lawful claims for labor, materials and supplies which, if unpaid, might become a Lien or charge upon any of its properties; except that no such tax, assessment, charge, levy or claim need be paid (i) which is being diligently contested in good faith by appropriate proceedings and for which adequate reserves shall have been set aside in accordance with GAAP on the appropriate books, but only so long as such tax, assessment, charge, levy or claim does not become a Lien or charge other than a Permitted Encumbrance, or (ii) if no foreclosure, distraint, sale or similar proceedings shall have been commenced with respect thereto. Borrowers will file all income and material non-income tax and information returns required by federal, provincial, state or local tax authorities.

 

5.6                                                                               Use of Proceeds

 

On the date hereof and at all times thereafter, the Borrowers shall use the proceeds of the Term Loan only (i) to finance and manage the Los Gatos Project, the initial capital cost of which is projected to be $316,000,000, (ii) to pay the costs and expenses incurred in connection with the Term Loan, and (iii) to fund such other activities related to the development of the Los Gatos Project as permitted by the Partner Agreement.

 

5.7                                                                               Indemnity

 

The Borrowers agree to indemnify and hold harmless the Lender and each of its respective Affiliates, employees, representatives, shareholders, officers, directors, trustees, agents and advisors (any of the foregoing shall be an “Indemnitee”) from and against any and all claims, liabilities, losses, damages, actions, reasonable out-of-pocket attorneys’ fees and expenses (as such fees and expenses are incurred and documented; provided that reimbursement of attorneys’ fees and expenses shall be limited to the reasonable fees and expenses of one counsel for all such Indemnitees (and, in the event of any conflict of interest, one counsel for each party subject to such conflict) in any relevant jurisdiction) and demands

 

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by any party, including the reasonable, documented, out-of-pocket costs of investigating and defending such claims, whether or not Borrowers or the Person seeking indemnification is the prevailing party (a) resulting from any breach or alleged breach by Borrowers of any representation or warranty made hereunder; (b) the use, handling, release, emission, discharge, transportation, storage, treatment or disposal of any Hazardous Materials in violation of Environmental Laws at any property owned or leased by Borrower; (c) any violation of, non-compliance with or any liability under any Environmental Laws with respect to conditions at any property owned or leased by Borrowers or the operations conducted thereon; (d) the investigation, cleanup or remediation of offsite locations at which Borrowers or their respective predecessors are alleged to have directly or indirectly disposed of Hazardous Materials in violation of Environmental Laws; (d) otherwise arising out of (i) the Loans or otherwise under this Agreement, any Loan Document or any transaction contemplated hereby or thereby, including, without limitation, the use of the proceeds of Loans hereunder in any fashion by the Borrowers or the performance of their respective obligations under the Loan Documents by Borrower, (ii) allegations of any participation by the Lender in the affairs of Borrower, or allegations that any of them has any joint liability with Borrowers for any reason, (iii) any claims against the Lender by Borrower, by any shareholder or other investor in or lender to Borrower, by any brokers or finders or investment advisers or investment bankers retained by Borrowers or by any other third party, arising out of the Loans or otherwise under this Agreement; or (e) in connection with taxes (other than Excluded Taxes), fees, and other charges payable by Borrowers in connection with the Loans, or the execution, delivery, and enforcement of this Agreement, the other Loan Documents, and any amendments thereto or waivers of any of the provisions thereof; provided, further that if and to the extent that the Person seeking indemnification hereunder is determined in such case to have acted with gross negligence or willful misconduct by a final, non-appealable judicial order of a court of competent jurisdiction, such Person shall not be entitled to indemnification of such losses, claims, damages, liabilities or related expenses. The obligations of Borrowers under this Section 5.7 are in addition to, and shall not otherwise limit, any liabilities which Borrowers might otherwise have in connection with any warranties or similar obligations of Borrowers in any other Loan Document. Notwithstanding any other provision of this Section 5.7, under no circumstances shall any claim for indemnification hereunder include any claim on any theory of liability or indemnification, for lost profits or for special, indirect, consequential or punitive damages (as opposed to direct or actual damages).

 

5.8                                                                               Further Assurances.

 

At its cost and expense, upon request of the Lender, Borrowers shall duly execute and deliver, or cause to be duly executed and delivered, to the Lender such further instruments and do and cause to be done such further acts as may be necessary or proper in the reasonable opinion of the Lender to carry out more effectually the provisions and purposes of this Agreement and the other Loan Documents.

 

5.9                                                                               Environmental Matters.

 

Each Borrower will (i) comply in all respects with all applicable Environmental Laws; (ii) obtain and renew all environmental permits necessary for its operations and properties to comply with all applicable Environmental Laws and environmental permits; and (iii) conduct any investigation, study, sampling and testing, and undertake any cleanup, removal, remedial or other action necessary to comply with all Environmental Laws; except, in each case for such non-compliance, failure to obtain or renew, or failure to conduct or undertake as could not, individually or in the aggregate, reasonably be expected to cause a Material Adverse Change; provided, however, that Borrowers shall not be required to undertake any such cleanup, removal, remedial or other action to the extent that its obligation to do so is being contested in good faith and by proper proceedings and appropriate reserves are being maintained with respect to such circumstances.

 

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5.10                                                                        OFAC

 

(a)                                 The Borrowers acknowledge that the Sanctions may become applicable with respect to the Loans or Loan Documents, including to any documentary credits, guarantees issued or disbursements or payments made by the Lender pursuant to the Loan Documents. Sanctions may pertain inter alia to the purpose and end use of the Loans, goods manufactured in or originated from or through certain countries, shipment from, to, or using certain countries, ports, vessels, liners, or due to involvement of certain persons and entities (including correspondent banks). Consequently, disbursement, issuance, payment, or processing under the Loans by the Lender may become subjected to the Sanctions and the Lender shall have the unconditional right to refuse to process any transactions that violate, or may violate, any Sanctions.

 

(b)                                 The Borrowers agree to ensure that the transactions entered into pursuant to the Loan Documents do not violate any Sanctions and that the Borrowers are not currently subject to any Sanctions. The Borrowers agree that it shall not avail of the Loans or use the proceeds of the Loans in any transaction with, or for the purpose of financing the activities of, any person currently subject to any Sanctions as aforementioned.

 

(c)                                  Each Borrower hereby agrees to indemnify and hold harmless the Lender, to the fullest extent permitted by Applicable Law, for all losses and liabilities (including due to claims by a third party), incurred by the Lender as a result of any breach by it of its representations and undertakings contained herein pertaining to the Sanctions or due to any action taken by the Lender pursuant to the Sanctions. No action taken by the Lender pursuant to the Loan Documents, including grant of the Loans, issuance of any financial instruments thereunder or processing of any payments or transactions, nor any action taken by such Person in relation thereto, shall be deemed to be a waiver of any of the Lender’s rights under any provisions of the Loan Documents related to the Sanctions nor shall they act to relieve the Borrowers of their obligations or liabilities in relation thereto.

 

5.11                                                                        Payment of Indebtedness and Leasehold Obligations.

 

Borrowers shall pay, discharge or otherwise satisfy (i) at or before maturity (subject, where applicable, to specified grace periods) all its Indebtedness, except when the failure to do so could not reasonably be expected to have a Material Adverse Effect and (ii) when due its rental obligations under all leases under which it is a tenant, except when the failure to do so could not reasonably be expected to have a Material Adverse Effect, and shall otherwise comply, in all material respects, with all other terms of such leases and use its commercially reasonable efforts to keep them in full force and effect.

 

5.12                                                                        Reserve Accounts.

 

Borrowers shall maintain accounts funded in an amount sufficient to pay (i) one semi-annual payment of principal (the “Debt Service Reserve Account”), and (ii) the Borrowers’ operations for a three-month period as set forth in the Budget (the “Operating and Capital Reserve Cost Account”). Such accounts shall be maintained at a financial institution reasonably satisfactory to Lender and pledged to Lender as Collateral, and monthly statements shall be provided by the financial institution to Lender indicating the balances thereof. Borrowers will be permitted day-to-day access to such accounts so long as the minimum balances are at all times maintained and may draw on such balances solely for their stated purposes.

 

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ARTICLE 6

INFORMATION COVENANTS

 

So long as any of the Obligations are outstanding, the Borrowers will furnish or cause to be furnished to the Lender:

 

6.1                                                                               Annual Financial Statements and Information

 

Within 90 days after the end of each Fiscal Year, a copy of the audited combined financial statements of the Borrowers, as at the end of and for such Fiscal Year, prepared in accordance with GAAP (which financial statements shall include, subject to such changes as shall be mandated by GAAP from time to time, an income statement, statements of cash flows and a balance sheet), and which financial statements shall be audited by the statutory auditor or then-current accounting firm (in all other cases), and setting forth in comparative form, the figure for the previous Fiscal Year.

 

6.2                                                                               Quarterly Financial Statements and Information

 

Within 45 days after the end of each of the first three fiscal quarters of each Fiscal Year, balance sheet and statements of stockholders’ equity and cash flow of the Borrowers on a combined basis reflecting results of operations from the beginning of the fiscal year to the end of such quarter and for such quarter, prepared on a basis consistent with prior practices and complete and correct in all material respects, subject to normal and recurring year-end adjustments that individually and in the aggregate are not material to Borrowers’ business operations and setting forth in comparative form the respective financial statements for the corresponding date and period in the previous fiscal year.

 

6.3                                                                               Performance Certificates

 

At the time the combined financial statements are furnished pursuant to Sections 6.1 and 6.2, a certificate of the Borrowers executed on its behalf by an Authorized Signatory of the Borrowers as to its financial performance stating that no Default or Event of Default has occurred as at the end of such Fiscal Year or fiscal quarter, or, if a Default or Event of Default has occurred, disclosing each such Default or Event of Default and its nature, when it occurred, whether it is continuing and, in the case of a Default which has not yet become an Event of Default the steps being taken by the Borrowers with respect to such Default.

 

6.4                                                                               Copies of Other Reports

 

From time to time and promptly upon each request such further information regarding the business, assets, liabilities, financial position, and results of operations of a Borrower or any of their Subsidiaries, as the Lender may reasonably request; and

 

6.5                                                                               Notice of Litigation and Other Matters

 

Promptly notify the Lender on becoming aware of the occurrence of any litigation, dispute, arbitration, proceeding, investigation or similar circumstance the result of which could reasonably be expected to result in a Default, Event of Default or Material Adverse Change with respect to the Borrowers and from time to time provide the Lender with all reasonable information requested by the Lender concerning the status of any such proceeding.

 

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6.6                                                                               Access and Inspections

 

Borrowers shall permit Lender, on reasonable advance notice and, unless and Event of Default has occurred and is continuing, at Lender’s sole cost and expense, access to the books and records of the Borrowers, and Lender may inspect the Borrowers’ premises and the Collateral. Any review or inspection conducted by or on behalf of Lender will be made during the Borrowers’ normal business hours and will not interfere with operations of the Borrowers.

 

ARTICLE 7

NEGATIVE COVENANTS

 

So long as any of the Obligations are outstanding and unless the Lender shall otherwise consent in writing:

 

7.1                                                                               Indebtedness of the Borrowers

 

After the date hereof, the Borrowers shall not create, assume, incur or otherwise become or remain obligated in respect of, or permit to be outstanding, any Indebtedness for Money Borrowed other than the Term Loan.

 

7.2                                                                               Limitation on Liens

 

Borrowers shall not assume, incur or permit to exist or to be created, assumed, incurred or permitted to exist any Lien on any of its properties or assets, whether now owned or hereafter acquired, except for Permitted Encumbrances.

 

7.3                                                                               Liquidation, Merger or Disposition of Assets

 

(a)                                 Disposition of Assets. Borrowers shall not, at any time sell, lease, abandon, transfer or otherwise dispose of any assets other than in the ordinary course of business.

 

(b)                                 Liquidation, Dissolution or Merger. Borrowers shall not at any time liquidate or dissolve itself (or suffer any liquidation or dissolution) or otherwise wind up, or enter into any acquisition, amalgamation, merger or consolidation.

 

7.4                                                                               Limitation on Guarantees

 

After the date hereof, Borrowers shall not, at any time Guaranty, assume, be obligated with respect to, or permit to be outstanding any Guaranty of any obligation of any other Person.

 

7.5                                                                               Investments

 

The Borrowers shall not, directly or indirectly make any Investment, loan, advance or Capital Expenditures without the prior written consent of the Lender.

 

7.6                                                                               Restricted Payments and Restricted Purchases

 

The Borrowers shall not, and shall not permit any of Borrower’s Subsidiaries to, directly or indirectly declare or make any Restricted Payment or Restricted Purchase except as permitted by the Partner Agreement.

 

29

 

7.7                                                                               Affiliate Transactions

 

The Borrowers shall not at any time engage in any transaction with an Affiliate, or make an assignment or other transfer of any of its properties or assets to any such Affiliate, other than as permitted pursuant to the Partner Agreement or on terms substantially as favorable as would be obtainable in a comparable arms-length transaction with a Person other than an Affiliate.

 

ARTICLE 8

EVENTS OF DEFAULT; REMEDIES.

 

8.1                                                                               Events of Default

 

Each of the following shall constitute an Event of Default, whatever the reason for such event and whether it shall be voluntary or involuntary or be effected by operation of law or pursuant to any judgment or order of any court or any order, rule or regulation of any Governmental Entity or non-governmental body:

 

(a)                                 (i) Borrowers shall fail to pay any interest, fees or other Obligations due under the Loan Documents within five (5) Business Days after the same becomes due and payable, or (ii) Borrowers have failed to pay principal when due under the Loan Documents; or

 

(b)                                 Any representation or warranty made under this Agreement shall prove incorrect in any material respect when made or deemed to be made; or

 

(c)                                  Borrowers shall default in the performance or observance of (i) any agreement or covenant set forth in Sections 5.5, 6.1, 6.2 or 6.3 or Article 7, or (ii) any other agreement or covenant contained in this Agreement or the other Loan Documents to which it is a party and such default under this clause (ii) shall continue for a period of thirty (30) days; or

 

(d)                                 A court of competent jurisdiction shall enter a decree or order for relief in respect of any Borrowers in an involuntary case under Bankruptcy Laws or under any other applicable bankruptcy, insolvency or similar law now or hereafter in effect, which decree or order is not stayed within sixty (60) days; or any other similar relief shall be granted under any applicable federal or state law; or (ii) an involuntary case shall be commenced against a Borrower under Bankruptcy Laws or under any other applicable bankruptcy, insolvency or similar law now or hereafter in effect; or a decree or order of a court having jurisdiction in the premises for the appointment of a receiver, interim receiver, receiver and manager, liquidator, sequestrator, trustee, custodian or other officer having similar powers over Borrower, or over all or a substantial part of its property, shall have been entered; or there shall have occurred the involuntary appointment of an interim receiver, receiver, receiver and manager, trustee or other custodian of such Borrower for all or a substantial part of its property; or a warrant of attachment, execution or similar process shall have been issued against any substantial part of the property of such Borrower, and any such event described in this clause (ii) shall continue for sixty (60) days without having been dismissed, bonded or discharged; or

 

(e)                                  (i) a Borrower shall have an order for relief entered with respect to it or shall commence a voluntary case under Bankruptcy Laws or under any other applicable bankruptcy, insolvency or similar law now or hereafter in effect, or shall consent to the entry of an order for relief in an involuntary case, or to the conversion of an involuntary case to a

 

30

 

voluntary case, under any such law, or shall consent to the appointment of or taking possession by a receiver, interim receiver, receiver and manager, trustee or other custodian for all or a substantial part of its property; or a Borrower shall make any general assignment for the benefit of creditors; or (ii) a Borrower shall be unable, or shall fail generally, or shall admit in writing its inability, to pay its debts generally as such debts become due; or the board of directors (or similar governing body) of Borrowers (or any committee thereof) shall adopt any resolution or otherwise authorize any action to approve any of the actions referred to herein or in Section 8.1(f), or (iii) shall commit an act of bankruptcy for the purposes of Bankruptcy Laws; or

 

(f)                                   In the reasonable judgment of the Lender, there shall have occurred a Material Adverse Change; or

 

(g)                                  If any Guaranty of the Obligations shall be terminated or cease to be enforceable; or

 

(h)                                 If any Loan Document or Security Document shall be deemed illegal, invalid or unenforceable or the lender shall cease to have a perfected first priority security interest thereunder, subject only to Permitted Encumbrances; or

 

(i)                                     Borrowers or the title and rights of Borrowers shall have become the subject matter of claim, litigation, suit or other proceeding which might, in the reasonable opinion of the Lender result in impairment or loss of the Security provided by this Agreement or the other Loan Documents and Borrowers are not diligently and in good faith defending any such claim, litigation, suit or other proceeding; or

 

(j)                                    There is entered by any court or arbitration panel against a Borrower a monetary judgment in excess of $1,000,000, decree or award not covered by insurance or indemnification (where the indemnifying party has agreed to indemnify and is financially able to do so) and if, within forty-five (45) days after the entry, issue or levy thereof, such judgment shall not have been paid or discharged or stayed pending appeal or removed to bond, or if, after the expiration of any such stay, such judgment shall not have been paid or discharged or removed to bond; or

 

(k)                                 Any Necessary Authorization applicable to Borrowers is revoked and not reinstated within sixty (60) days of the date of such revocation; or

 

(l)                                     Either of SSMRC or SSMRC Lux defaults under the Amendment to Partner Agreement (after the expiration of all notice and cure periods); or

 

(m)                             the occurrence, whether in a single transaction or a series of transactions, of a Change of Control.

 

8.2                                                                               Remedies

 

(a)                                 Subject to Section 8.2(e) below, if an Event of Default specified in Section 8.1 hereof (other than an Event of Default under Section 8.1(d) or Section 8.1(e) hereof) shall have occurred and shall be continuing, the Lender may declare the principal of and interest on the Loans and all other amounts owed to the Lender under this Agreement and any other Loan Documents to be forthwith due and payable without presentment, demand, protest or other notice of any kind, all of which are hereby expressly waived, anything in this Agreement or any other Loan Document to the contrary notwithstanding.

 

31

 

(b)                                 Upon the occurrence and continuance of an Event of Default specified in Section 8.1(d) or Section 8.1(e) hereof all principal, interest and other amounts due hereunder and all other Obligations, shall thereupon and concurrently therewith automatically become due and payable and the principal amount of the Loans outstanding hereunder shall bear interest at the Default Rate, all without any action by the Lender and without presentment, demand, protest or other notice of any kind, all of which are expressly waived, anything in this Agreement or in the other Loan Documents to the contrary notwithstanding.

 

(c)                                  Upon acceleration of the Obligations, as provided in subsections (a) or (b) of this Section 8.2 above, the Lender shall have all of the post default rights granted to it under the Loan Documents and under Applicable Law.

 

(d)                                 Upon acceleration of the Obligations, as provided in subsections (a) or (b) of this Section 8.2, the Lender, shall have the right to the appointment of a receiver for the properties and assets of the Borrowers, and the Borrowers hereby consent to such rights and such appointment and hereby waives any objection the Borrowers may have thereto or the right to have a bond or other security posted by the Lender, in connection therewith.

 

(e)                                  If (i) Borrowers fail to make any payment when due under this Agreement or (ii) a non-payment Event of Default shall have occurred and is continuing, prior to acceleration of the Obligations under Section 8.2(a) above, if both (x) after three (3) Business Days’ notice of demand SSMRC fails to perform under the SSMRC Guarantee in respect of the payment then due under the foregoing clause (i), or all of the Obligations that would be due upon acceleration under the foregoing clause (ii), and (y) immediately upon demand by Lender the obligated party under the Financial Guarantee (if any) fails to perform under the Financial Guarantee in respect of such payment, then Lender may in its sole discretion make an irrevocable election upon notice to SSMRC either (x) to pursue its remedies under this Agreement or (y) to forgive or convert to equity such payment obligation, in which case each of the Shareholders’ Participating Interests shall be adjusted based on the ratio of (i) the amount of such payment that Lender has elected to forgive or convert multiplied by 1.4, over (ii) $210,000,000, which amount will be added to Lender’s then existing Interest. Upon exercise by Lender of its rights under clause (y) above, the subject default or Event of Default shall be deemed cured. Lender’s rights under clauses (x) and (y) shall apply to any subsequent payment default.

 

(f)                                   Subject to Section (e) hereof, the rights and remedies of the Lender hereunder shall be cumulative, and not exclusive.

 

8.3                                                                               Payments Subsequent to Declaration of Event of Default

 

Subsequent to the acceleration of the Obligations under Section 8.2 hereof, payments and prepayments under this Agreement made to the Lender shall be distributed as follows: first, to the Lender’s reasonable, documented, out-of-pocket costs and expenses, if any, incurred in connection with the collection of such payment or prepayment, including, without limitation, all amounts under Section 9.2 hereof; second, to the Lender for any fees hereunder or under any of the other Loan Documents then due and payable; third, to the Lender for any unpaid interest which may have accrued on the Obligations; fourth, to the Lender for the unpaid principal amount of the Loans then outstanding until all Loans have been paid in full; fifth, to the Lender for any unpaid amounts, to the payment of any other unpaid Obligations; and sixth, to the Borrowers or as otherwise required by law.

 

32

 

ARTICLE 9

MISCELLANEOUS

 

9.1                                                                               Notices

 

(a)                                 Except as otherwise expressly provided herein, all notices and other communications under this Agreement and the other Loan Documents (unless otherwise specifically stated therein) shall be in writing and shall be deemed to have been given three (3) Business Days after deposit in the mail, designated as certified mail, return receipt requested, postage-prepaid, or one (1) Business Day after being entrusted to a reputable commercial overnight delivery service for next day delivery, or when sent on a Business Day prior to 5:00 p.m. (New York time) by electronic mail addressed to the party to which such notice is directed at its address determined as provided in this Section 9.1. All notices and other communications under this Agreement shall be given to the parties hereto at the following addresses:

 

(i)                                     If to the Borrowers, to them at:

 

660 Lincoln Street, Suite 2750

Denver, Colorado 80264

Attn: Roger Johnson, CFO

Email: rjohnson@ssmines.com

 

with a copy to (which shall not constitute notice to Borrowers):

 

Snell & Wilmer L.L.P.

1200 Seventeenth Street, Suite 1900

Denver, Colorado 80202

Attn: Jeff Reeser

Email: jreeser@swlaw.com

 

(ii)                                  If to the Lender, to it at:

 

Dowa Metals & Mining Co., Ltd.

14-1, Sotokanda 4-Chome

Chiyoda-ku, Tokyo 101-002 Japan

Attn: Toshiaki Suyama

Director, General Manager

Resource Development &

Raw Materials Department

suyamat@dowa.co.jp

 

with a copy to (which shall not constitute notice to the Lender):

 

Torys LLP

1114 Avenue of the Americas

23rd Floor

New York, NY 10036

Attn: Don Bell

dbell@torys.com

 

33

 

The failure to provide copies shall not affect the validity of the notice given to the primary recipient.

 

(b)                                 Any party hereto may change the address to which notices shall be directed under this Section 9.1 from time to time by giving ten (10) days’ prior written notice of such change to the other parties.

 

9.2                                                                               Expenses

 

The Borrowers will promptly pay, or reimburse:

 

(a)                                 all reasonable and documented out-of-pocket expenses of the Lender in connection with the preparation, negotiation, execution and delivery of this Agreement and the other Loan Documents, and the transactions contemplated hereunder and thereunder, including, but not limited to, the reasonable fees and disbursements of Torys LLP, special counsel for the Lender;

 

(b)                                 all reasonable and documented out-of-pocket expenses of the Lender in connection with the restructuring and “work out” of the transactions contemplated in this Agreement and the preparation, negotiation, execution and delivery of any waiver, amendments, or consent by the Lender, or any of them, relating thereto whether or not executed, including, but not limited to, the reasonable fees and disbursements of any experts, agents or consultants and of counsel for the Lender; and

 

(c)                                  all reasonable and documented out-of-pocket costs and expenses of the Lender of enforcement under this Agreement or the other Loan Documents and all reasonable out-of-pocket costs and expenses of collection if an Event of Default occurs in the payment of the Obligations, which in each case shall include reasonable fees and out of pocket expenses of counsel for the Lender.

 

9.3                                                                               Waivers

 

The rights and remedies of the Lender under this Agreement and the other Loan Documents shall be cumulative and not exclusive of any rights or remedies which they would otherwise have. No failure or delay by the Lender in exercising any right, shall operate as a waiver of such right. Any waiver or indulgence granted by the Lender, shall not constitute a modification of this Agreement or any other Loan Document, except to the extent expressly provided in such waiver or indulgence, or constitute a course of dealing at variance with the terms of this Agreement or any other Loan Document such as to require further notice of their intent to require strict adherence to the terms of this Agreement or any other Loan Document in the future.

 

9.4                                                                               Set-Off

 

In addition to any rights now or hereafter granted under Applicable Law and not by way of limitation of any such rights, upon the occurrence of an Event of Default and during the continuation thereof, the Lender is hereby authorized by the Borrowers at any time or from time to time, without notice to the Borrowers or to any other Person, any such notice being hereby expressly waived, to set off and to appropriate and to apply any and all deposits (general or special, time or demand, including, but not limited to, Indebtedness evidenced by certificates of deposit, in each case whether matured or unmatured), and any other Indebtedness at any time held or owing by the Lender, to or for the credit or the account of the Borrowers, against and on account of the obligations and liabilities of the Borrowers to the Lender, including, but not limited to, all Obligations and any other claims of any nature or description arising out

 

34

 

of or connected with this Agreement or any other Loan Document, irrespective of whether (a) the Lender shall have made any demand hereunder or (b) the Lender shall have declared the principal of and interest on the Loans and other amounts due hereunder to be due and payable as permitted by Section 8.2 hereof and although such obligations and liabilities or any of them shall be contingent or unmatured.

 

9.5                                                                               Successors and Assigns

 

(a)                                 The provisions of this Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns permitted hereby, except that the Borrowers may not assign or otherwise transfer any of its rights or obligations hereunder without the prior written consent of the Lender, and the Lender may not assign or otherwise transfer any of its rights or obligations hereunder except (i) to an Eligible Assignee in accordance with the provisions of clause (i) of this Section 9.5, or (ii) by way of participation in accordance with the provisions of clause (d) of this Section 9.5 (and any other attempted assignment or transfer by any party hereto shall be null and void). Nothing in this Agreement, expressed or implied, shall be construed to confer upon any Person (other than the parties hereto, their respective successors and assigns permitted hereby, Participants to the extent provided in clause (d) of this Section 9.5 and, to the extent expressly contemplated hereby, the Affiliates of the Lender) any legal or equitable right, remedy or claim under or by reason of this Agreement.

 

(b)                                 The Lender may at any time assign to one or more Eligible Assignees all or a portion of its rights and obligations under this Agreement; provided that:

 

(i)                                     each partial assignment shall be made as an assignment of a proportionate part of all the assigning Lender’s rights and obligations under this Agreement with respect to the Loans assigned; and

 

(ii)                                  If required by Applicable Law, the Lender shall, and shall cause each of its assignees to, provide to the Borrowers on or prior to the effective date of any assignment an appropriate form supporting the Lender’s or assignee’s position that no withholding by the Borrowers for income tax payable by the Lender or assignee in respect of amounts received by it hereunder is required.

 

(c)                                  The Lender may at any time, without the consent of, or notice to, the Borrowers sell participations to any Person (other than a natural person or a Borrower or any of the Borrowers’ Affiliates or Subsidiaries) (each, a “Participant”) in all or a portion of the Lender’s rights and/or obligations under this Agreement (including all or a portion of the Loans owing to it); provided that (i) the Lender’s obligations under this Agreement shall remain unchanged, (ii) the Lender shall remain solely responsible to the other parties hereto for the performance of such obligations and (iii) Borrowers shall continue to deal solely and directly with the Lender in connection with the Lender’s rights and obligations under this Agreement. Any agreement or instrument pursuant to which a Lender sells such a participation shall provide that the Lender shall retain the sole right to enforce this Agreement and to approve any amendment, modification or waiver of any provision of this Agreement. The rights of any Participant only shall be derivative through the Lender with whom such Participant participates and no Participant shall have any rights under this Agreement or the other Loan Documents or any direct rights as to the Lender, Borrower, the Security, or otherwise in respect of the Loan. No Participant shall have the right to participate directly in the making of decisions by the Lender.

 

35

 

(d)                                 A Participant shall not be entitled to receive any greater payment under Section 2.8 hereof than the applicable Lender would have been entitled to receive with respect to the participation sold to such Participant, unless the sale of the participation to such Participant is made with the Borrowers’ prior written consent or at the Borrowers’ request and such Participant has complied with the terms of such provisions as if it were a Lender.

 

(e)                                  Any assignment to an Eligible Assignee and any transaction with a Participant shall be carried out (i) at Lender’s sole cost and expense; (ii) without any cost or expense to Borrowers, and (iii) without any additional obligations being imposed on Borrowers.

 

A Lender may furnish any information concerning Borrowers in the possession of the Lender from time to time to assignees and participants (including prospective assignees and participants) subject, however, to and so long as the recipient agrees in writing to be bound by the provisions of Section 9.4 hereof.

 

9.6                                                                               Counterparts

 

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

 

9.7                                                                               Governing Law

 

This Agreement shall be construed in accordance with and governed by the laws of the State of New York, without giving effect to any choice of law principles that impose or attempt to impose the law(s) of any other jurisdiction. If any action or proceeding shall be brought by any of the parties hereto hereunder or under any other Loan Document in order to enforce any right, each of the parties hereby consents to and will submit to the jurisdiction of any commonwealth or federal court of competent jurisdiction sitting within New York City, the State of New York on the date of this Agreement. Each of the parties hereto hereby agrees that, to the extent permitted by Applicable Law, service of the summons and complaint and all other process which may be served in any such suit, action or proceeding may be effected by mailing by registered mail a copy of such process to the offices of such Person at the address given in Section 9.1 hereof and that personal service of process shall not be required. Nothing herein shall be construed to prohibit service of process by any other method permitted by law, or the bringing of any suit, action or proceeding in any other jurisdiction. Each of the parties hereto agrees that final judgment in such suit, action or proceeding shall be conclusive and may be enforced in any other jurisdiction by suit on the judgment or in any other manner provided by Applicable Law.

 

9.8                                                                               Severability

 

Any provision of this Agreement which is prohibited or unenforceable in any jurisdiction shall be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof in that jurisdiction or affecting the validity or enforceability of such provision in any other jurisdiction.

 

9.9                                                                               Interest

 

In no event shall the amount of interest due or payable hereunder exceed the maximum rate of interest allowed by Applicable Law, and in the event any such payment is inadvertently made by the Borrowers or inadvertently received by the Lender, then such excess sum shall be credited as a payment

 

36

 

of principal. If the maximum lawful interest rate is calculated pursuant to this paragraph, such interest shall be calculated at a daily rate equal to the maximum lawful rate divided by the number of days in the year in which such calculation is made. It is the express intent hereof that the Borrowers not pay and the Lender not receive, directly or indirectly in any manner whatsoever, interest in excess of that which may legally be paid by the Borrowers under Applicable Law.

 

9.10                                                                        Table of Contents and Headings

 

The Table of Contents and the headings of the various subdivisions used in this Agreement are for convenience only and shall not in any way modify or amend any of the terms or provisions hereof, nor be used in connection with the interpretation of any provision hereof.

 

9.11                                                                        Entire Agreement

 

Except as otherwise expressly provided herein, this Agreement and the other documents described or contemplated herein will embody the entire agreement and understanding among the parties hereto and thereto and supersede all prior agreements and understandings relating to the subject matter hereof and thereof.

 

9.12                                                                        Reliance on and Survival of Various Provisions

 

All covenants, agreements, statements, representations and warranties made herein or in any certificate delivered pursuant hereto (i) shall be deemed to have been relied upon by the Lender notwithstanding any investigation heretofore or hereafter made by them and (ii) shall survive so long as any Obligation is outstanding and unpaid. Any right to indemnification hereunder, shall survive the termination of this Agreement and the payment and performance of all Obligations.

 

9.13                                                                        Confidentiality

 

The Lender agrees to keep confidential information obtained by it pursuant hereto and the other Loan Documents confidential in accordance with its customary practices and agrees that it will only use such information in connection with the transactions contemplated by this Agreement and not disclose any of such information other than (a) to the Lender’s employees, representatives, directors, attorneys, auditors, agents, professional advisors, trustees or affiliates who are advised of the confidential nature of such information or to any direct or indirect contractual counterparty in swap agreements or such contractual counterparty’s professional advisor (so long as such contractual counterparty or professional advisor to such contractual counterparty agrees to be bound by the provision of this Section 9.14), (b) to the extent such information presently is or hereafter becomes available to the Lender on a non-confidential basis from any source of such information that is in the public domain at the time of disclosure, (c) to the extent disclosure is required by law (including applicable securities laws), regulation, subpoena or judicial order or process (provided that notice of such requirement or order shall be promptly furnished to the Borrowers unless such notice is legally prohibited) or requested or required by bank, securities, insurance or investment company regulators, examiners or auditors or any administrative entity or Governmental Entity to whose jurisdiction the Lender may be subject, (d) to any rating agency to the extent required in connection with any rating to be assigned to the Lender, (e) to assignees or participants or prospective assignees or participants who agree to be bound by the provisions of this Section 9.14, (f) to the extent required in connection with any litigation or in connection with any enforcement rights between any obligor and the Lender with respect to the Loans or this Agreement and the other Loan Documents, or (g) with the Borrower’s prior written consent.

 

37

 

9.14                                                                        Illegality

 

If, at any time, it is or will become unlawful in any applicable jurisdiction for the Lender to perform any of its obligations under this Agreement, or to fund any Loan:

 

(a)                                 the Lender shall promptly notify the Borrowers upon becoming aware of such event;

 

(b)                                 upon the Lender notifying the Borrowers, the obligation of the Lender to fund any advances will be immediately cancelled to the extent Lender determines it is unlawful for Lender to fund the Loan; and

 

(c)                                  the Borrowers shall repay the total amount of principal and interest outstanding on the last day of the Interest Period for each Loan occurring after the Lender has notified the Borrowers or, if earlier, the date specified by the Lender in the notice delivered to the Borrower, provided, that the Lender may not specify a date earlier than the last day of any applicable grace period permitted by Applicable Law.

 

9.15                                                                        Joint and Several Liability.

 

All Obligations shall be joint and several, and each Borrower shall make payment upon the maturity of the Obligations by acceleration or otherwise, and such obligation and liability on the part of each Borrower shall in no way be affected by any extensions, renewals and forbearance granted by Lender to any Borrower, failure of Lender to give any Borrower notice of borrowing or any other notice, any failure of Lender to pursue or preserve its rights against any Borrower, the release by Lender of any Collateral now or thereafter acquired from any Borrower, and such agreement by each Borrower to pay upon any notice issued pursuant thereto is unconditional and unaffected by prior recourse by Lender to the other Borrowers or any Collateral for such Borrower’s Obligations or the lack thereof. Each Borrower waives all suretyship defenses.

 

9.16                                                                        Amendments.

 

This Agreement may not be amended or modified except by a written instrument describing such amendment or modification executed by each of the parties hereto.

 

ARTICLE 10

WAIVER OF JURY TRIAL

 

10.1                                                                        Waiver of Jury Trial; Waiver of Special, Exemplary, Punitive or Consequential Damages

 

THE BORROWERS AND THE LENDER HEREBY AGREE, TO THE EXTENT PERMITTED BY LAW, TO WAIVE AND HEREBY WAIVE THE RIGHT TO A TRIAL BY JURY IN ANY COURT AND IN ANY ACTION OR PROCEEDING OF ANY TYPE IN WHICH THE BORROWERS, THE LENDER, OR ANY OF THEIR RESPECTIVE SUCCESSORS OR ASSIGNS IS A PARTY, AS TO ALL MATTERS AND THINGS ARISING DIRECTLY OR INDIRECTLY OUT OF THIS AGREEMENT OR THE OTHER LOAN DOCUMENTS AND THE RELATIONS AMONG THE PARTIES LISTED IN THIS SECTION 10.1. EXCEPT AS PROHIBITED BY LAW, EACH PARTY TO THIS AGREEMENT WAIVES ANY RIGHTS IT MAY HAVE TO CLAIM OR RECOVER IN ANY LITIGATION REFERRED TO IN THIS SECTION, ANY SPECIAL, EXEMPLARY, PUNITIVE OR CONSEQUENTIAL DAMAGES OR ANY DAMAGES OTHER THAN, OR IN ADDITION TO, ACTUAL DAMAGES. EACH PARTY TO THIS AGREEMENT (i) CERTIFIES THAT NEITHER

 

38

 

ANY REPRESENTATIVE, AGENT OR ATTORNEY OF THE LENDER HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT THE LENDER WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVERS AND (ii) ACKNOWLEDGES THAT IT HAS BEEN INDUCED TO ENTER INTO THIS AGREEMENT AND EACH OTHER LOAN DOCUMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION. THE PROVISIONS OF THIS SECTION HAVE BEEN FULLY DISCLOSED BY AND TO THE PARTIES AND SUCH PROVISIONS SHALL BE SUBJECT TO NO EXCEPTIONS. NO PARTY HAS IN ANY WAY AGREED WITH OR REPRESENTED TO ANY OTHER PARTY THAT THE PROVISIONS OF THIS SECTION WILL NOT BE FULLY ENFORCED IN ALL INSTANCES.

 

[signature pages follow]

 

39

 

The parties hereto have caused this Agreement to be duly executed and delivered by their duly authorized officers as of the date first set forth above.

 

	
 
    	
BORROWERS:
    
	
 
    	
 
    
	
 
    	
MINERA PLATA REAL, S.   DE R.L. DE C.V.
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Roger Johnson
    
	
 
    	
 
    	
Name: Roger Johnson
    
	
 
    	
 
    	
Title:   Treasurer
    
	
 
    	
 
    
	
 
    	
OPERACIONES SAN JOSE DE   PLATA, S. DE R.L. DE C.V.
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Roger Johnson
    
	
 
    	
 
    	
Name: Roger Johnson
    
	
 
    	
 
    	
Title:   Treasurer
    
	
 
    	
 
    
	
 
    	
SERVICES SAN JOSE DE   PLATA, S. DE R.L. DE C.V.
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Roger Johnson
    
	
 
    	
 
    	
Name: Roger Johnson
    
	
 
    	
 
    	
Title:   Treasurer
    

 

[Loan Agreement]

 

 

	
 
    	
SSMRC:
    
	
 
    	
 
    
	
 
    	
SUNSHINE SILVER MINING   AND REFINING CORPORATION
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Stephen A. Orr
    
	
 
    	
 
    	
Name: Stephen A. Orr
    
	
 
    	
 
    	
Title:   Executive Chairman & CEO
    
	
 
    	
 
    
	
 
    	
SSMRC   Lux:
    
	
 
    	
 
    
	
 
    	
LOS GATOS LUXEMBOURG   S.ar.L
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Stephen A. Orr
    
	
 
    	
 
    	
Name: Stephen A. Orr
    
	
 
    	
 
    	
Title:   Category A Manager
    

 

[Loan Agreement]

 

 

	
 
    	
LENDER:
    
	
 
    	
 
    
	
 
    	
DOWA METALS &   MINING CO., LTD.
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Akira Sekiguchi
    
	
 
    	
 
    	
Name: Akira Sekiguchi
    
	
 
    	
 
    	
Title:   President
    

 

[Loan Agreement]

 

 

ANNEX I

 

Payment Information for Lender

 

	
ACCOUNT NAME
    	
Dowa   Metals & Mining Co., Ltd.
    
	
 
    	
 
    
	
ADDRESS
    	
14-1, Sotokanda   4-Chome, Chiyoda-ku, Tokyo 101-0021, Japan
    
	
 
    	
 
    
	
ACCOUNT No.
    	
0848368
    
	
 
    	
 
    
	
BANK NAME
    	
The Bank of   Tokyo-Mitsubishi UFJ, Ltd.
    
	
 
    	
 
    
	
 
    	
Head Office
    
	
 
    	
 
    
	
SWIFT CODE
    	
BOTKJPJT
    
	
 
    	
 
    
	
BANK ADDRESS
    	
7-1, Marunouchi   2-Chome, Chiyoda-Ku, Tokyo 100-8388, Japan
    

 

 

 

Schedule 1

 

Corporate Information of the Borrowers

 

MINERA PLATA REAL, S. DE R.L. DE C.V.

Valle Escondido No. 5500,

Complejo Industrial El Saucito,

Punto Alto E-2, Oficina 201,

C.P. 31125, Chihuahua, Mexico

 

OPERACIONES SAN JOSE DE PLATA, S. DE R.L. DE C.V.

Valle Escondido No. 5500,

Complejo Industrial El Saucito,

Punto Alto E-2, Oficina 201,

C.P. 31125, Chihuahua, Mexico

 

SERVICES SAN JOSE DE PLATA, S. DE R.L. DE C.V.

Valle Escondido No. 5500,

Complejo Industrial El Saucito,

Punto Alto E-2, Oficina 201,

C.P. 31125, Chihuahua, Mexico

 

 

Schedule 2

 

Security Documents

 

1.                                      Contrato de Prenda — Maquinaria y Equipo

 

2.                                      Garantía Corporativa

 

3.                                      Contrato de Prenda de Partes Sociales

 

4.                                      Garantía Hipotecaria Dowa

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