Document:

Exhibit 10.1

 

INVESTMENT
AGREEMENT

 

This
Agreement is entered into this 5th day of May 2017 BETWEEN:

 

		(1)	REBEL
                                         GROUP INC. (CIK No. 0001532158) (“Rebel Group”), a company incorporated
                                         in the State of Florida and having its principal executive office at 7500A Beach Road,
                                         Unit 12-313, The Plaza, Singapore 199591;

 

		(2)	PURE
                                         HEART ENTERTAINMENT PTE LTD (RC No. 200007374H) (“Pure Heart”),
                                         a company incorporated in Singapore and having its registered address at 7500A Beach
                                         Road #12-313 The Plaza, Singapore 199591;

  

		(3)	LEONG
                                         KHIAN KIEE (NRIC No. S0170169Z) (“LKK”), of 65 Shelford Road #02-11
                                         Shelford Regency, Singapore 288455;

 

		(4)	TENG
                                         CHEE KEONG (NRIC NO.S7418771D) (“TCK”), of Apt Blk 4 Sago Lane
                                         #14-103 Singapore 050004.

 

WHEREAS:

 

		(A)	As
                                         at the date of this Agreement, Rebel Group has an issued and paid-up capital of US$315,715
                                         divided into 23,531,548 shares. LKK is a majority shareholder of Rebel Group.

 

		(B)	Pure
                                         Heart is a wholly-owned subsidiary of Rebel Group.

 

		(C)	TCK
                                         has agreed to invest in Rebel Group on the terms and subject to the conditions contained
                                         in this Agreement.

 

IT
IS HEREBY AGREED:

 

		1	Definitions

 

		1.1	In
                                         this Contract, words and expressions used shall have the meanings set out hereunder,
                                         or as defined in this Contract, unless the context otherwise requires:

 

"Agreement"
means this Contract;

 

“Board
of Directors” or “”Directors” means the directors for the time being of Rebel Group;

 

“Business
Day” means a day (other than Saturday, Sunday or public holidays in Singapore and/or the United States) in which banks
are open for general business in Singapore and the United States;

 

“Clause”
means clauses in this Contract;

 

“Completion
Date” means 12 May 2017 or such other date as may be agreed between the parties;

 

    	 	1	 

     

    

 

“Conversion
Amount” means the aggregate amount of the Loan, being US$300,000;

 

“Conversion
Date” shall have the meaning ascribed in Clause 7.4(i);

 

“Conversion
Notice” means a notice in writing issued by TCK to Rebel Group substantially in the form set out in Annex A;

 

“Conversion
Period” shall have the meaning ascribed in Clause 7.2;

 

“Conversion
Right” shall have the meaning ascribed in Clause 7.1;

 

“Conversion
Shares” means if the Conversion Right is exercised (a) in accordance with Clause 7.3(i), 600,000 new Shares or (b) in
accordance with Clause 7.3(ii), 500,000 new Shares, to be issued by Rebel Group upon the conversion of the Loan, such Shares to
be issued free from all claims, charges, liens and other Encumbrances and shall rank pari passu with the then existing
Shares in the capital of Rebel Group;

 

“Encumbrance”
means any mortgage, assignment of receivable, debenture, lien, hypothecation, charge, pledge, title retention, right to acquire,
security interest, option, pre-emptive or other similar right, right of first refusal, restriction, third-party right or interest,
any other encumbrance, condition or security interest whatsoever or any other type of preferential arrangement (including without
limitation, a title transfer or retention arrangement) having similar effect;

 

“Event
of Default” means any of the events described in Clause 12;

 

“Extended
Maturity Date” shall have the meaning in Clause 4.2;

 

“Loan”
shall have the meaning ascribed in Clause 2.1;

 

“Loan
Disbursement Date” means 5 May 2017 or such other date as may be agreed between the parties;

 

“Maturity
Date” shall have the meaning in Clause 4.1;

 

“Shares”
means ordinary shares issued and outstanding in the common stock of Rebel Group;

 

“Shareholders”
means the shareholders of Rebel Group;

 

“Subscription
Shares” means 1,400,000 new ordinary shares in the capital of Rebel Group;

 

“Subscription
Price” means US$0.50 for each Subscription Share;

 

“Tax”
or “Taxation” means any tax, levy, impost, duty or other charge or withholding of a similar nature (including
any penalty or interest payable in connection with any failures to pay or any delay in paying any of the same);

 

“S$”
and “Singapore Dollars” means the lawful currency of Singapore.

 

“USD”
and “US$” means the lawful currency of The United States of America.

 

“Year”
means one calendar year.

 

		1.2	The
                                         headings in this Agreement are inserted for convenience only and shall be ignored in
                                         construing this Agreement. Unless the context otherwise requires, words (including words
                                         defined herein) denoting the singular number only shall include the plural and vice
                                         versa. The words “written” and “in writing” include any means
                                         of visible reproduction. References to the “Annexes”, “Clauses”
                                         and “Recital” are to be construed as references to the annexes, clauses and
                                         recital of this Agreement respectively. Any reference to a sub clause or a paragraph
                                         is to a sub clause or paragraph of the clause in which such reference appears. Any reference
                                         to a time of the day is to be construed as Singapore time unless otherwise stated.

 

    	 	2	 

     

    

 

		1.3	References
                                         to a statute or statutory provision include that statute or provision as from time to
                                         time modified, re-enacted or consolidated whether before or after the date of this Agreement
                                         so far as such modification, re-enactment or consolidation applies or is capable of applying
                                         to any transactions entered into in accordance with this Agreement and (so far as liability
                                         thereunder may exist or can arise) shall include also any past statute or statutory provision
                                         (as from time to time modified, re-enacted or consolidated) which such statute or provision
                                         has directly or indirectly replaced. References to a statutory provision include any
                                         subordinate legislation made from time to time under that provision.

 

		2	THE
                                         LOAN

 

		2.1	TCK
                                         has agreed to grant to Rebel Group a convertible loan of in the aggregate principal amount
                                         of United States Dollars US$300,000 (the “Loan”) subject to
                                         the terms of this Agreement.

 

		2.2	Unless
                                         otherwise notified by Rebel Group in writing, the Loan shall be disbursed by TCK no later
                                         than the Loan Disbursement Date. The Loan shall be disbursed in immediately available
                                         funds to the following account of Rebel Group

 

	 	A/C Name	:	Pure Heart Entertainment Pte Ltd
	 	A/C Number (USD A/C)	:	392 901 126 9
	 	                  (S$
    A/C)	:	392 303 860 2
	 	Bank Name	:	United Overseas Bank Limited (Jalan Sultan Branch)
	 	Bank Address	:	200 Jalan Sultan #01-06 Textile Centre, Singapore 199018
	 	SWIFT Address	:	UOVBSGSG

 

		3	USE
                                         OF PROCEEDS

 

Rebel
Group shall utilise the Loan paid by TCK for Mixed Martial Arts event operations in China.

 

		4	REPAYMENT

 

		4.1	Rebel
                                         Group shall repay the principal amount of the Loan (to the extent actually received by
                                         Rebel Group in accordance with this Agreement and to the extent that it has not been
                                         converted pursuant to Clause 7 (Conversion) below) within 7 Business Days immediately
                                         following 4 May 2018 (the “Maturity Date”).

 

		4.2	TCK
                                         shall at his sole and absolute discretion have the option to extend the term of the Loan
                                         from the Maturity Date to 4 May 2019 (the “Extended Maturity Date”).

 

		5	INTEREST

 

		5.1	Subject
                                         to Clause 5.2 below, Rebel Group shall pay interest on any outstanding portion of the
                                         Loan at the rate of ten percent. (10%) per annum until the date on which the Loan is
                                         fully repaid or converted into Conversion Shares. For the avoidance of doubt, interest
                                         of United States Dollars SevenThousand Five Hundred (US$7,500) is payable every quarter
                                         (on 4th August 2017, 4th November 2017, 4th February
                                         2018 and 4th May 2018 and if the term of the Loan is extended to the Extended
                                         Maturity Date, on 4th August 2018, 4th November 2018, 4th
                                         February 2019 and 4th May 2019).

 

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		5.2	If
                                         any sum becomes due for payment under or pursuant to this Agreement on a day which is
                                         not a Business Day, full payment shall be made on the next succeeding Business Day.

 

		6	GUARANTEE
                                         AND INDEMNITY

 

		6.1	LKK
                                         irrevocably:

 

		(i)	guarantees
                                         to TCK punctual payment by Rebel Group of all of Rebel Group’s obligations under
                                         this Agreement;

 

		(ii)	undertakes
                                         with TCK that whenever Rebel Group does not punctually pay any amount when due under
                                         or in connection with this Agreement, that LKK shall immediately on demand pay that amount
                                         as if he was the principal borrower in respect of that amount; and

 

		(iii)	agrees
                                         with TCK that if any obligation guaranteed or expressed to be guaranteed by him is or
                                         becomes unenforceable, invalid or illegal, he will, as an independent and primary obligation,
                                         indemnify TCK immediately on demand against any cost, loss or liability which TCK incurs
                                         as a result of Rebel Group not paying any amount which would, but for such unenforceability,
                                         invalidity or illegality, have been payable by Rebel Group under this Agreement on the
                                         date when it would have been due. The amount payable by LKK under this indemnity will
                                         not exceed the amount he would have to pay under this Clause 6 if the amount claimed
                                         had been recoverable on the basis of a guarantee.

 

		6.2	This
                                         guarantee is a continuing guarantee and will extend to the ultimate balance of sums payable
                                         by Rebel Group under this Agreement, regardless of any intermediate payment or discharge
                                         in whole or in part.

 

		6.3	If
                                         any discharge, release or arrangement (whether in respect of the obligations of Rebel
                                         Group or any security for those obligations or otherwise) is made by TCK in whole or
                                         in part on the basis of any payment, security or other disposition which is avoided or
                                         must be restored in insolvency, liquidation, administration or otherwise, without limitation,
                                         then the liability of LKK under this Clause 6 will continue or be reinstated as if such
                                         discharge, release or arrangement had not occurred.

 

		6.4	The
                                         obligations of LKK under this Clause 6 will not be affected by an act, omission, matter
                                         or thing which, but for this Clause 6, would reduce, release or prejudice any of its
                                         obligations under this Clause 6 (without limitation and whether or not known to it or
                                         TCK) including:

 

		(i)	any
                                         time, waiver or consent granted to, or composition with Rebel Group, LKK or any other
                                         person;

 

		(ii)	the
                                         release of Rebel Group, LKK or any other person under the terms of any composition or
                                         arrangement with any creditor of Rebel Group, LKK or any other person;

 

		(iii)	the
                                         taking, variation, compromise, exchange, renewal or release of, or refusal or neglect
                                         to perfect, take up or enforce, any rights against, or security over assets of Rebel
                                         Group, LKK or any other person, any non-execution of this Agreement by Rebel Group, LKK
                                         or any other person, or any non-presentation or non-observance of any formality or other
                                         requirement in respect of any instrument or any failure to realise the full value of
                                         any security;

 

    	 	4	 

     

    

 

		(iv)	any
                                         incapacity or lack of power, authority or legal personality of or dissolution or change
                                         in the members or status of Rebel Group, LKK or any other person;

 

		(v)	any
                                         amendment, novation, supplement, extension, restatement (however fundamental and whether
                                         or not more onerous) or replacement of this Agreement or any other document or security
                                         including any change in the purpose of, any extension of or increase in any loan or the
                                         addition of any new loans under any agreement or other document or security;

 

		(vi)	any
                                         unenforceability, illegality or invalidity of any obligation of any person under this
                                         Agreement or any other document or security;

 

		(vii)	any
                                         insolvency or similar proceedings.

 

		(viii)	any
                                         postponement, discharge, reduction, non-provability or other similar circumstance affecting
                                         any obligation of any Party or other person under this Agreement resulting from any insolvency,
                                         liquidation or dissolution proceedings or from any law, regulation or order;

 

		(ix)	anything
                                         done or not done by TCK in exercising its rights under this Agreement;

 

		(x)	TCK
                                         obtaining a judgement against Rebel Group in any court for performance of any obligation
                                         under this Agreement;

 

		(xi)	TCK
                                         agreeing to Rebel Group making an assignment for the benefit of Rebel Group’s creditors
                                         or any arrangement with creditors under insolvency laws; or

 

		(xii)	any
                                         arrangement made between TCK and Rebel Group with or without the consent of LKK.

 

		6.5	LKK
                                         waives any right he may have of first requiring Rebel Group (or any trustee or agent
                                         on its behalf) to proceed against or enforce any other rights or security or claim payment
                                         from any person before claiming from LKK under this Clause 6. This waiver applies irrespective
                                         of any law or any provision of this Agreement to the contrary.

 

		6.6	The
                                         guarantee under this Clause 6 is in addition to and is not in any way prejudiced by any
                                         other guarantee or security now or subsequently held by TCK.

 

		7	CONVERSION

 

		7.1	TCK
                                         shall be entitled to convert the Loan into Conversion Shares on the terms set out below
                                         (the “Conversion Right”).

 

		7.2	Subject
                                         to Clause 7.1, the Conversion Right can be exercised at any time for the period commencing
                                         on the date hereof and ending on either of (a) 14 days after the Maturity Date or (b)
                                         14 days after the Extended Maturity Date (if the repayment of the Loan is extended in
                                         accordance with Clause 4 above) (the “Conversion Period”), in full
                                         and not in part, by TCK serving a Conversion Notice on Rebel Group. A Conversion Notice,
                                         once received by Rebel Group, shall be irrevocable.

 

		7.3	For
                                         the purposes of Clauses 7.1 and 7.2, the Conversion Shares shall be calculated as follows:

 

		(i)	in
                                         the event that the Conversion Right is exercised within 7 Business Days immediately following
                                         the Maturity Date, it shall result in TCK being issued the Conversion Shares based on
                                         the share price of USD0.50 per share.

 

    	 	5	 

     

    

 

		(ii)	in
                                         the event that the Conversion Right is exercised after the Maturity Date but within 7
                                         Business Days immediately following the Extended Maturity Date, it shall result in TCK
                                         being issued the Conversion Shares based on the share price of USD0.60 per Share.

 

		7.4	Upon
                                         receipt by Rebel Group of the Conversion Notice and its enclosures, in each case duly
                                         executed by TCK:

 

		(i)	Rebel
                                         Group shall allot and issue, on or prior to the date falling 10 Business Days after the
                                         date of the Conversion Notice (the “Conversion Date”), in favour of
                                         TCK the Conversion Shares; and

 

		(ii)	TCK
                                         shall be deemed to have applied and subscribed for the Conversion Shares at a total consideration
                                         equal to the principal sum of the Loan, and the Loan shall be deemed to be fully discharged
                                         and released simultaneously upon the allotment of the Conversion Shares to TCK.

  

		7.5	On
                                         the Conversion Date, Rebel Group shall deliver to TCK the following:

 

		(i)	the
                                         definitive share certificate in respect of the Conversion Shares (credited as fully paid-up);
                                         and

 

		(ii)	a
                                         certified true copy of the updated register of members of Rebel Group with TCK’s
                                         name entered thereon as a member of Rebel Group in respect of the Conversion Shares.

 

		8	SUBSCRIPTION,
                                         ISSUE AND ALLOTMENT OF SHARES TO TCK

 

		8.1	Subject
                                         to the terms and conditions of this Agreement, on the Completion Date, TCK, relying on
                                         the representations, warranties, undertaking and indemity by Rebel Group, Pure Heart
                                         and LKK contained in this Agreement shall subscribe in cash for, and Rebel Group shall
                                         issue and allot the Subscription Shares based on the share price of USD0.50 to TCK at
                                         the aggregate Subscription Price of US$700,000.

 

		8.2	The
                                         Subscription Shares shall be allotted and issued by Rebel Group free from all claims,
                                         charges, liens, options, pledges and other encumbrances on the Completion Date.

  

		9	CONDITIONS
                                         PRECEDENT

 

		9.1	The
                                         issue and allotment of the Subscription Shares is conditional upon the following conditions
                                         (“Conditions”) having been fulfilled (or waived):

 

		(i)	the
                                         approval of the board of directors (and if required, the shareholders) of each Party
                                         for the entering into of this Agreement and other related transactions as may be required
                                         in relation thereto;

 

		(ii)	the
                                         clearance by OTCQX and/or OTCQB if required, of the transactions contemplated in this
                                         Agreement;

 

    	 	6	 

     

    

 

		(iii)	all
                                         applicable governmental or regulatory approvals being obtained, including but not limited
                                         to any OTCQX or OTCQB requirements, for the issue and allotment of the Subscription Shares.

 

		9.2	If
                                         at any time Rebel Group or LKK shall become aware of a fact or circumstance which might
                                         prevent any of the Conditions from being satisfied, it shall immediately inform TCK.

 

		9.3	A
                                         Party shall notify the other Party promptly in writing upon either:

 

		(i)	waiving
                                         a Condition; or

 

		(ii)	being
                                         satisfied that a Condition has been fulfilled.

 

		10	PAYMENT
                                         AND COMPLETION

 

		10.1	Completion
                                         for the subscription, allotment and issuance of the Subscription Shares shall take place
                                         at such venue as the Parties may agree on the Completion Date.

 

		10.2	On
the Completion Date, Rebel Group shall deliver to TCK:

 

		(i)	a
                                         certified true copy of the shareholders’ resolution (a) approving the allotment
                                         and issue of the Subscription Shares to TCK and authorising the Board of Directors to
                                         allot and issue the Subscription Shares to TCK and (b) appointing TCK as an independent
                                         non-executive director of Rebel Group;

  

		(ii)	a
                                         certified true copy of the resolutions of the Board of Directors approving the allotment
                                         and issue of the Subscription Shares to TCK;
	 	 	 
	 	(iii)	the
duly issued share certificates in respect of the Subscription Shares;
	 	 	 
	 	(iv)	a
certified true copy of the constitutional documents of Rebel Group;

  

		10.3	Rebel
                                         Group shall duly file with the Florida corporate regulatory authority and/or any other
                                         appropriate governmental authority all relevant documents, returns, notifications and
                                         instruments in relation to the subscription for, allotment and issue of the Subscription
                                         Shares as soon as possible, and in any event within the time period stipulated in any
                                         relevant U.S. legislation or regulations.

 

		10.4	On
                                         the Completion Date, TCK shall pay to Rebel Group the aggregate Subscription Price for
                                         the Subscription Shares, such payment to be made by way of cashier’s order or such
                                         other form of payment as Rebel Group may deem to be acceptable.

 

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		11	REPRESENTATIONS,
                                         WARRANTIES AND UNDERTAKINGS

 

		11.1	Each
                                         of Rebel Group, Pure Heart and LKK jointly and severally represent and warrant to TCK
                                         that as at the date hereof:

 

		(i)	It/he
                                         has the legal right and full power and authority to execute and deliver this Agreement
                                         and perform the transactions contemplated hereby, and all necessary actions have been
                                         taken to authorise the execution, delivery and performance of this Agreement and all
                                         other documents to be executed and delivered by Rebel Group in connection therewith;

 

		(ii)	this
                                         Agreement constitutes its/his valid and legally binding obligations, enforceable against
                                         it/him in accordance with its/his terms;

 

		(iii)	the
                                         execution and delivery of, and the performance by it of its obligations under this Agreement
                                         do not and will not:

 

		a)	infringe,
                                         or constitute a default under, any instrument, contract, document or agreement to which
                                         it/he is a party or by which it/he or its/his assets are bound; or

 

		b)	result
                                         in a breach of any law, rule, regulation, ordinance, order, judgment or decree of or
                                         undertaking to any court, government body, statutory authority or regulatory, administrative
                                         or supervisory body to which it/he is a party or by which it/he or its/his assets are
                                         bound, whether in Singapore, United States or elsewhere; and

 

		(iv)	it/he
                                         is not insolvent or unable to pay its/his debts (including subordinated or contingent
                                         debts), nor will it/he become so in consequence of entering into this Agreement and/or
                                         performing any transaction contemplated by this Agreement.

 

		11.2	Each
                                         of Rebel Group, Pure Heart and LKK further jointly and severally represent, warrant and
                                         undertake to TCK that:

 

		(i)	the
                                         Conversion Shares to be allotted and issued pursuant to the exercise of the Conversion
                                         Right are validly authorised but unissued Shares which Rebel Group shall, on the exercise
                                         of the Conversion Right by TCK, have full authority to allot and issue and are not subject
                                         to any pre-emptive or other similar rights of Shareholders (and if so subject, such rights
                                         shall have been duly waived by all the Shareholders for the time being), and when allotted,
                                         issued and paid up pursuant to the terms of this Agreement, will be validly issued and
                                         fully paid Shares which will not be subject to further call;

 

		(ii)	the
                                         Conversion Shares shall be issued free from all Encumbrances and will be freely transferable
                                         (save to the extent restricted in Rebel Group’s constitutional documents and applicable
                                         laws and regulations, if any) and shall rank pari passu in all respects with all
                                         other Shares in issue at the time of the allotment of the Conversion Shares (save to
                                         the extent, if any, otherwise provided in Rebel Group’s constitutional documents
                                         and applicable laws and regulations);

 

		(iii)	all
                                         written information and documents provided by Rebel Group, its officers, representatives
                                         and/or its advisers (whether or not included in this Agreement) are when provided true
                                         and accurate in all material aspects and not misleading; and

 

		(iv)	from
                                         the date of this Agreement to the earlier of:

 

		(a)	the
                                         Maturity Date or Extended Maturity Date (as the case may be); and

 

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		(b)	the
                                         allotment date of the Conversion Shares to TCK,

 

it/he
will promptly notify TCK in writing of any changes to the share capital structure of Rebel Group, and the issue or grant of any
option, right and/or convertible (whether exercisable now or in future and whether contingent or not) by Rebel Group to call for
the allotment, conversion, issue, sale or transfer of any of the Shares.

 

		11.3	Each
                                         of Rebel Group and LKK jointly and severally warrant that:

 

		(i)	Rebel
                                         Group is or will on Completion Date be entitled to or is otherwise able to allot and
                                         issue to TCK the Subscription Shares on the terms and conditions of this Agreement without
                                         the consent of any person;

 

		(ii)	that
                                         the Subscription Shares will on issue have been validly authorised, such Subscription
                                         Shares are not or will not be subject to any pre-emptive rights of any person, and when
                                         allotted and issued will be validly allotted and issued as preference shares which are
                                         free from all and any Encumbrance; and

 

		(iii)	no
                                         person has the right (whether exercisable now or in the future and whether contingent
                                         or not) to call for the allotment, issue, sale or transfer of any share or loan capital
                                         of Rebel Group under any option or other agreement (including conversion rights and rights
                                         of pre-emption).

 

		11.4	Save
                                         as disclosed to TCK in writing, Rebel Group hereby represents and warrants to TCK and
                                         his successors in title that as at the date of this Agreement and for each day up to
                                         and including the date of Completion, each of the representations and warranties set
                                         out in Annex B (“Warranties”) is true and accurate in all respects
                                         and there is no information the omission of which might make any of such representations
                                         and warranties misleading or inaccurate in any respect.

 

		11.5	Each
                                         of the Warranties shall be separate and independent and save as expressly provided shall
                                         not be limited by reference to any other Clause or anything in this Agreement or any
                                         other paragraph of Annex B. The Warranties given hereunder shall continue after the Completion
                                         Date and shall not in any respect be extinguished or qualified in any way affected except
                                         by a specific and duly authorised written waiver or release by TCK.

 

		11.6	If
                                         at Completion, it shall be found that any of the Warranties has not been carried out
                                         or complied with to the satisfaction of TCK or is otherwise untrue or misleading in any
                                         respect, TCK shall be entitled (in addition to and without prejudice to all other rights
                                         or remedies available to it and its successors in title including the right to claim
                                         damages) by notice in writing to the other Parties to terminate this Agreement and/or
                                         his obligation to subscribe for the Subscription Shares, but failure to exercise this
                                         right shall not constitute a waiver of any other rights of TCK or his successors in title
                                         arising out of any breach of a Warranty.

 

		11.7	Each
                                         of Rebel Group and LKK hereby jointly and severally covenants to TCK to indemnify and
                                         hold harmless TCK from and against any and all losses, damages, charges, costs and expenses
                                         of whatever nature which TCK may at any time and from time to time sustain, incur or
                                         suffer as a direct result of or arising out of a breach or breaches of the representations,
                                         warranties and undertakings contained in this Agreement.

 

    	 	9	 

     

    

 

		11.8	TCK
                                         represents and warrants to Rebel Group that as the date hereof:

 

		(i)	this
                                         Agreement has been duly executed and delivered by TCK and constitutes a valid and legally
                                         binding obligation of TCK, enforceable in accordance with its terms; and

 

		(ii)	he
                                         has full legal right and capacity to execute and deliver this Agreement and perform the
                                         transactions contemplated hereby.

 

		12	EVENTS
                                         OF DEFAULT

 

		12.1	Each
                                         of the following events or circumstances is an Event of Default:

 

		(i)	Rebel
                                         Group commits any material breach of its obligations under this Agreement or any representation
                                         or warranty given in this Agreement is false or inaccurate in any material respect, and,
                                         if remediable, fails to remedy such breach within 14 days from the service of written
                                         notice by TCK notifying such breach;

 

		(ii)	Rebel
                                         Group is adjudicated to be insolvent or if applicable, enters into a scheme of arrangement
                                         or composition with or assignment for the benefit of all or any class of creditors or
                                         any order is made by any competent court or other appropriate authority or any resolution
                                         is passed for the winding-up of Rebel Group or for the appointment of a judicial manager,
                                         liquidator or provisional liquidator, receiver or receiver and manager, trustee or similar
                                         officer of the whole or any part of the undertakings, assets, rights or revenue of Rebel
                                         Group;

 

		(iii)	any
                                         expropriation, attachment, sequestration, distress or execution which affects any asset
                                         or assets of Rebel Group is not discharged within one (1) month; or

 

		(iv)	it
                                         is or becomes unlawful for Rebel Group to perform any of its obligations under this Agreement.

 

		12.2	On
                                         and at any time after the occurrence of an Event of Default TCK may, by notice to Rebel
                                         Group, declare that all or part of the Loan (to the extent actually received by Rebel
                                         Group in accordance with this Agreement and to the extent unconverted pursuant to the
                                         exercise of the Conversion Right) be immediately due and payable, whereupon they shall
                                         become immediately due and payable.

 

		13	CONFIDENTIALITY

 

		13.1	Each
                                         Party agrees to keep strictly confidential, and under no circumstances disclose to any
                                         person who is not a Party, any confidential information and discussions relating to,
                                         arising from or in connection with this Agreement unless such disclosure is expressly
                                         permitted by the prior written consent of the other Parties, which shall not be unreasonably
                                         withheld.

 

		13.2	The
                                         obligations in this Clause 10 shall not apply to:

 

		(i)	any
                                         information obtained which becomes generally known to the public, other than by reason
                                         of any willful or negligent act or omission of the disclosing Party or any of its agents,
                                         advisers, directors, officers, employees or representatives;

 

		(ii)	any
                                         information which is required to be disclosed to a Party pursuant to judicial proceedings,
                                         any applicable laws, or rules and regulations of any regulatory authority; and

 

    	 	10	 

     

    

 

		(iii)	any
                                         information disclosed by a Party to its respective professional advisers or its directors,
                                         officers and shareholders for the purpose of entering into, performing, or exercising
                                         its obligations under this Agreement, provided that the disclosing Party procures such
                                         persons to be made aware or agree to be bound by the provisions under this clause.

 

		13.3	Notwithstanding
                                         Clause 10, each Party’s obligations under this clause shall apply without limitation
                                         in time and shall survive termination of this Agreement.

 

		14	NOTICES

 

All
notices, demands or other communications required or permitted to be given or made under this Agreement shall be in writing and
delivered personally or sent by local courier or by email or facsimile transmission to the intended recipient thereof at its or
his address or email address or facsimile number, and marked for the attention of such person (if any), designated by it or him
for the purposes of this Agreement. The initial address, email address or facsimile number and person (if any) so designated by
the Parties are set out below:

 

	 	Rebel Group, Inc.
	 	 
	 	Address	:	7500A Beach Road, Unit 12-313, The Plaza, Singapore 199591
	 	Email	:	kkleong@rebelfc.com.sg
	 	Facsimile	:	63387806
	 	Attention:	:	Mr. K K Leong
	 	 	 	 
	 	Pure Heart
	 	 
	 	Address	:	7500A Beach Road, Unit 12-313, The Plaza, Singapore 199591
	 	Email	:	justin@rebelfc.com.sg
	 	Facsimile	:	63387806
	 	Attention:	:	Leong Aan Yee, Justin
	 	 	 	 
	 	LKK
	 	 
	 	Address	:	65 Shelford Road #02-11 Shelford Regency, Singapore 288455
	 	Email	:	kkleong@rebelfc.com.sg
	 	Facsimile	:	63387806
	 	Attention:	:	Mr. K K Leong
	 	 	 	 
	 	TCK
	 	 
	 	Address	:	Apt Blk 4 Sago Lane #14-103 Singapore 050004.
	 	Email	:	mephistkyle@gmail.com
	 	Attention	:	Mr C K Teng

 

    	 	11	 

     

    

 

		15	COSTS

 

Rebel
Group Inc shall bear its own Taxes, legal costs, and any other costs and expenses incurred in connection with this Agreement.

 

		16	FURTHER
                                         ASSURANCE

 

Each
Party shall do and execute or procure to be done and executed all such further acts, deeds, things and documents as may be necessary
to give effect to the terms of this Agreement.

 

		17	ASSIGNMENT

 

Each
Party shall not assign or transfer any of its rights (including the Loan and the right to the repayment thereof and the Conversion
Right), undertakings, agreements, duties, liabilities or obligations under this Agreement without the prior written consent of
the other Parties.

 

		18	TIME
                                         OF ESSENCE

 

Time
shall be of the essence of the obligations to be performed by the Parties under this Agreement.

 

		19	ENTIRE
                                         AGREEMENT

 

This
Agreement constitutes the entire Agreement between the Parties with respect to the subject matter of this Agreement and supersedes
and extinguishes all previous agreements, promises, assurances, warranties, representations and understandings between them, whether
written or oral, relating to its subject matter.

 

		20	VARIATION

 

No
variation, supplement, deletion or replacement of or from this Agreement or any of its items shall be effective unless made in
writing and signed by or on behalf of each Party.

 

		21	NON-WAIVER

 

No
failure to exercise, nor any delay in exercising any right or remedy under this Agreement shall operate as a waiver, nor shall
any single or partial exercise of any right or remedy prevent any further or other exercise or the exercise of any other right
or remedy. The rights and remedies provided in this Agreement are cumulative and not exclusive of any rights or remedies provided
by law.

 

		22	SEVERANCE

 

If
any provision of this Agreement is held to be illegal, invalid or unenforceable in whole or in part in any jurisdiction, this
Agreement shall, as to such jurisdiction, continue to be valid as to its other provisions and the remainder of the affected provision;
and the legality, validity and enforceability of such provision in any other jurisdiction shall be unaffected.

 

    	 	12	 

     

    

 

		23	THIRD
                                         PARTIES

 

The
Contracts (Rights of Third Parties) Act, Chapter 53B shall not under any circumstances apply to this Agreement and any person
who is not a party to this Agreement (whether or not such person shall be named, referred to, or otherwise identified, or form
part of a class of persons so named, referred to or identified in this Agreement) shall have no right under the Contracts (Rights
of Third Parties) Act, Chapter 53B to enforce this Agreement.

 

		24	COUNTERPARTS

 

This
Agreement may be signed in any number of counterparts, and by the Parties on separate counterparts, each of which when so executed,
shall be an original, but all counterparts shall together constitute one and the same document. Delivery of an executed counterpart
of a signature page to this Agreement by facsimile or other electronic transmission, such as a PDF, shall be effective as delivery
of a manually executed counterpart of this Agreement, with original signatures to follow.

 

		25	GOVERNING
                                         LAW AND DISPUTE RESOLUTION

 

		25.1	This
                                         Agreement is governed by, and shall be construed in accordance with, the laws of Singapore.

 

		25.2	The
                                         Parties irrevocably agree to submit to the exclusive jurisdiction of the courts of Singapore
                                         in all matters arising in connection with this Agreement.

 

    	 	13	 

     

    

 

ANNEX
A

 

CONVERSION
NOTICE

 

	Date	:	[●]
	 	 	 
	To	:	Rebel Group Inc.
	 	 	7500A Beach Road, 
	 	 	Unit 12-313, The Plaza, 
	 	 	Singapore 199591
	 	 	 
	Attn	:	The Board of Directors

 

Dear
Sirs

 

CONVERSION
OF THE LOAN

 

		1.	I,
                                         [●], hereby irrevocably exercise my conversion rights in respect of the
                                         Investment Agreement (the “Agreement”) dated [●] 2017 made between
                                         (1) yourselves, (2) Pure Heart Entertainment Pte Ltd, (3) Leong Khian Kiee and (4) myself
                                         in accordance with Clause 7 (Conversion) of the Agreement. Terms defined and references
                                         construed in the Agreement shall have the same meaning and construction in this notice.

 

		2.	I
                                         hereby irrevocably request that the Loan be converted in accordance with Clause 7 (Conversion),
                                         and hereby give you notice that the Conversion Amount is United States Dollars Three
                                         Hundred Thousand (US$300,000) and that the number of Conversion Shares to be issued and
                                         allotted to me is [ ] new ordinary shares in the capital of Rebel Group Inc.

 

Yours
faithfully,

 

	 	 

Name:

 

    	 	14	 

     

    

 

ANNEX
B

 

WARRANTIES

 

		1.	Information

 

All
written information disclosed by Rebel Group or its directors or auditors or financial advisers or consultants to TCK or his representatives
in the course of the negotiations leading to this Agreement was when given true, complete and accurate in all material respects
or has been corrected by other written information subsequently given to TCK or his representatives and Rebel Group is not aware
of any fact or matter not disclosed in writing to TCK which renders any such information untrue, inaccurate or misleading in any
material respect of the disclosure of which might reasonably affect the willingness of the Subscriber to subscribe for the Subscription
Shares or the terms upon which TCK would be wiling to subscribe for them.

 

		2.	Accounts

 

		(a)	As
                                         at Completion, the audited and unaudited accounts of Rebel Group covering the period
                                         from the date of incorporation of Rebel Group up to 31 December 2016 (the “Accounts
                                         Date”) delivered to TCK (the “Accounts”) have been prepared
                                         so as to give a true and fair view of the state of affairs of Rebel Group and do not
                                         materially misstate the assets and liabilities of Rebel Group at the date of the Accounts
                                         nor the profits or losses for the period concerned.

 

		(b)	Save
                                         as disclosed to TCK in writing, Rebel Group does not have any outstanding loan capital,
                                         nor any debt, nor is it engaged in financing of a type which would not be required to
                                         be shown or reflected in the Accounts, nor has it, borrowed any money which it has not
                                         repaid.

 

		(c)	There
                                         are no liabilities (including contingent liabilities) which are outstanding on the part
                                         of Rebel Group, other than those liabilities disclosed in the Accounts or which have
                                         arisen in the ordinary course of business since the date of Accounts.

 

		(d)	There
                                         has been no revaluation of any assets, fixed or otherwise, of Rebel Group from the value
                                         of those assets stated in the Accounts.

 

		(e)	No
                                         value was attributed in the Accounts to any assets which was not beneficially owned by
                                         Rebel Group at the date of the Accounts or which, in the case of fixed assets, were not
                                         in full and exclusive use for the purposes of Rebel Group’s business.

 

    	 	15	 

     

    

 

		(f)	The
                                         stock-in-trade and work-in-progress were valued in the Accounts at figures not exceeding
                                         the amounts which could in the circumstances existing at the date of the Accounts, reasonably
                                         be expected to be realised in the ordinary and usual course of carrying on the business
                                         of Rebel Group (net of selling and distribution costs).

 

		(g)	The
                                         profits and losses of Rebel Group for the period ended on the date of the Accounts as
                                         shown by the Accounts and the trend of profits and losses shown by such accounts have
                                         not (except as fairly disclosed in such accounts) been affected by changes or inconsistencies
                                         in accounting treatment, by any non-recurring items of income or expenditure, by transactions
                                         of an abnormal or unusual nature or entered into otherwise than on normal commercial
                                         terms or by any other factors rendering such profits and losses for all or any of such
                                         periods exceptionally high or low.

 

		(h)	Full
                                         provision or reserve has been made in the Accounts for all Taxation liable to be assets
                                         on Rebel Group or for which Rebel Group is or may become accountable in respect of:

 

		(i)	profits,
                                         gains or income (as computed for Taxation purposes) arising or accruing or deemed to
                                         arise or accrue on or before the date of Accounts; and

 

		(ii)	any
                                         transactions effected or deemed to be effected on or before the date of the Accounts,
                                         or provided for in the Accounts.

 

		(i)	Full
                                         provision for deferred Taxation has been made in the Accounts in accordance with accounting
                                         principles, standards and practices generally accepted in USA at the relevant date of
                                         the Accounts.

 

		3.	Changes
                                         since Accounts Date

 

Rebel
Group (a) is a corporation duly organised and validly existing under the laws of Florida, USA (b) has full corporate power to
carry on its business as it is now conducted, and (c) is entitled to own, lease or operate the properties and assets it now owns,
leases and operates.

 

Since
the Accounts Date, save as disclosed in writing by Rebel Group to TCK or in the Accounts (if any):

 

		(a)	it
                                         has not carried on any business other than the existing business of Rebel Group;

 

		(b)	its
                                         business has been lawfully carried on in the ordinary course;

 

		(c)	there
                                         has been no material adverse change in its financial position, operations, assets or
                                         prospects and no event, fact or matter has occurred which will give rise to any such
                                         change;

 

		(d)	its
                                         business has not been materially and adversely affected by the loss of any important
                                         customer or by any abnormal factor not affecting similar businesses to a like extent
                                         and there are no facts which are likely to give rise to any such effects;

 

		(e)	it
                                         has not repaid any shareholders loan or inter-Rebel Group loan owing by it or paid any
                                         accrued directors’ fees to any of its directors, whether in the ordinary and usual
                                         course of business or not;

 

		(f)	no
                                         dividend or other distribution has been declared, made or paid to its members;

 

    	 	16	 

     

    

 

		(g)	no
                                         share or loan capital or any other security giving rise to a right over the capital has
                                         been allotted or issued or agreed to be allotted or issued;

 

		(h)	it
                                         has not redeemed or purchased or agreed to redeem or purchase any of its share capital;

 

		(i)	it
                                         has not made or received any surrender relating to group relief or any surrender of a
                                         Tax refund;

 

		(j)	no
                                         insurance claims have been refused or settled below the amount claimed;

 

		(k)	it
                                         has not entered into any unusual, long term and onerous commitments and contracts; and

 

		(l)	it
                                         has not disposed of any assets which are material for the business of Rebel Group.

 

		4.	Litigation

 

		(a)	Rebel
                                         Group is not present engaged whether as plaintiff or defendant or otherwise any legal
                                         action, proceeding or arbitration or being prosecuted for any criminal offence and no
                                         such legal action, proceeding, arbitration or prosecution is pending or threatened by
                                         or against Rebel Group (or any person for whose acts or defaults Rebel Group may be vicariously
                                         liable).

 

		(b)	There
                                         are no circumstances known to Rebel Group which, to the best knowledge of Rebel Group,
                                         are likely to lead to any such claim or legal action, proceeding or arbitration or prosecution
                                         against Rebel Group.

 

		(c)	Neither
                                         Rebel Group, nor any of the properties, assets or operations which it owns or in which
                                         it is interested, is subject to any continuing injunction, judgment or order of any Court,
                                         arbitrator, governmental agency or regulatory body, nor in default under any order, licence,
                                         regulation or demand of any governmental agency or regulatory body or with respect to
                                         any order, suit, injunction or decree of any Court.

 

		5.	Taxation

 

		(a)	Rebel
                                         Group has not been the subject of an investigation, discovery or access order by or involving
                                         any Taxation authority and there are no circumstances existing which make it likely that
                                         an investigation, discovery or order will be made.

 

		(b)	All
                                         returns, computations, notices and information which are or have been required to be
                                         made or given Rebel Group for any Taxation purpose:

 

		(i)	have
                                         been made or given within the requisite periods and on a proper basis and are up-to-date
                                         and correct; and

 

		(ii)	none
                                         of them is, or is likely to be, the subject of any dispute with the Inland Revenue or
                                         other Taxation authorities.

 

    	 	17	 

     

    

 

		(c)	Rebel
                                         Group is in possession of sufficient information to enable it to compute its liability
                                         to Taxation insofar as it depends on any transaction occurring on or before the Completion
                                         Date.

 

		(d)	No
                                         transaction has been effected by Rebel Group in respect of which any consent or clearance
                                         from the relevant Taxation authorities or other governmental authorities was required
                                         or was or could have been sought (i) without such consent or clearance having been validly
                                         obtained before the transaction was effected, (ii) otherwise than in accordance with
                                         the terms of and so as to satisfy any conditions attached to such consent or clearance,
                                         and (iii) otherwise than at a time when in circumstances in which such consent or clearance
                                         was valid and effective.

 

		(e)	All
                                         particulars furnished to the relevant Taxation authorities or other governmental authorities,
                                         in connection with the application for any consent or clearance by Rebel Group, fully
                                         and accurately disclosed all facts and circumstances relevant to the decision of the
                                         relevant Taxation authorities.

 

		(f)	Rebel
                                         Group has not paid nor has any director or officer of Rebel Group paid, or become liable
                                         to pay, any fine, penalty or interest charged by virtue of any other statutory provision
                                         relating to Taxation.

 

		(g)	Rebel
                                         Group has complied in all respects with all statutory provisions relating to Taxation
                                         and requiring the deduction of Tax from any payment made by it, and has properly accounted
                                         for, and remitted or paid to the Inland Revenue or other Taxation authorities within
                                         the time required.

 

		(h)	Rebel
                                         Group has not since its incorporated engaged in, or been a party to, any transaction
                                         or series of transaction or scheme or arrangement of which the main purpose, or one of
                                         the main purposes, was or could be said to be the avoidance of, or deferral of or a reduction
                                         in liability to, Taxation.

 

		(i)	All
                                         documents to which Rebel Group is a party or which form part of Rebel Group’s title
                                         to any asset owned or possessed by it or which it may need to enforce or produce in evidence
                                         in the courts of Singapore have been duly stamped and (where appropriate) adjudicated.

 

		6.	Employees

 

		(a)	There
                                         are no amounts owing to any present or former director of Rebel Group other than any
                                         amounts reimbursable to such director for any expenses properly incurred by such director
                                         in the ordinary course of performing his duties as a director or employee.

 

		(b)	There
                                         are no employees employed in Rebel Group other than those whose details have been disclosed
                                         in writing to TCK.

 

		(c)	Full
                                         details, in relation to Rebel Group, of the terms of all consultancy and employment agreements
                                         have been disclosed in writing to TCK.

 

    	 	18	 

     

    

 

		(d)	To
                                         the best knowledge of Rebel Group, no liability has been incurred, and no liability is
                                         expected to be incurred, by Rebel Group for breach of any contract of employment or consultancy
                                         agreement with any employee or consultant, including redundancy payments, protective
                                         awards, compensation for wrongful dismissal, unfair dismissal or for failure to comply
                                         with any order for the reinstatement or re-engagement of any employee.

 

		(e)	Save
                                         as disclosed in writing to TCK, Rebel Group has not made or agreed to make any payment
                                         or provided or agreed to provide any benefit to any employee or consultant or former
                                         employee or consultant or any dependant of any such persons in connection with the proposed
                                         termination or suspension of employment or variation of any contract of employment or
                                         consultancy agreement of any such employee or consultant or former employee or consultant.

 

		7.	Debts
                                         to, and Contracts with, Connected Persons

 

		(a)	There
                                         are:

 

		(i)	no
                                         loans made by Rebel Group to its shareholders and/or directors or any affiliate of a
                                         shareholder or director (each a “Connected Person”);

 

		(ii)	no
                                         debts owing to Rebel Group by any Connected Person;

 

		(iii)	no
                                         securities for any such loans or debts as aforesaid; and

 

		(iv)	no
                                         claim or circumstance which may reasonably be expected to give rise to a claim against
                                         Rebel Group by any Connected Person or employee of Rebel Group.

 

		(b)	There
                                         are no existing contracts or arrangement to which Rebel Group is a party and in which
                                         any shareholder and/or any director is interested.

 

		(c)	No
                                         director has any right or interest, direct or indirect, in any business other than those
                                         now carried on by Rebel Group which is of a similar nature to or is, or is likely to
                                         become, competitive with any of the businesses or any proposed new business of Rebel
                                         Group other than right or interest in shares or securities of any such public listed
                                         company which is listed and traded on any stock exchange where such right or interest
                                         does not exceed 4% of such public listed company’s total share capital.

 

		8.	Capital
                                         Commitments, Unusual Contracts and Guarantees

 

Save
as disclosed to TCK in writing or in the Accounts (if any) Rebel Group:

 

		(a)	has
                                         no other capital commitments;

 

		(b)	has
                                         not delegated any powers under a power of attorney which remains in effect;

 

		(c)	has
                                         not entered into or is bound by any guarantee or indemnity under which any liability
                                         or contingent liability is outstanding;

 

		(d)	is
                                         not or has not agreed to become a member of any joint venture, consortium, partnership
                                         or other unincorporated association; is or has agreed to become, a party to any agreement
                                         or arrangement for participating with others in any business sharing commissions or other
                                         income;

 

    	 	19	 

     

    

 

		(e)	is
                                         not a party to any agreement or arrangement of any nature whatsoever which restricts
                                         its freedom to carry on its business in any part of the world in any manner; or

 

		(f)	is
                                         or has been a party to any contract, commitment, arrangement, transaction, understanding,
                                         obligation or liability which:

 

		(i)	is
                                         outside the ordinary and usual course of business;

 

		(ii)	is
                                         not wholly on an arm’s length basis;

 

		(iii)	is
                                         of a long-term nature (that is, unlikely to have been fully performed in accordance with
                                         its terms more than six months after the date it was entered into or undertaken or incapable
                                         of termination by Rebel Group on six months’ notice or less); or

 

		(iv)	involves,
                                         or is likely to involve, obligations or liabilities which by reason of their nature or
                                         magnitude, ought reasonably to be made known to an intending investor in Rebel Group.

 

		9.	Book
                                         Debts 

 

Save
as disclosed to TCK in writing or in the Accounts (if any), Rebel Group does not have any book debts.

 

		10.	Title
                                         to Assets

 

Save
as disclosed to TCK in writing or in the Accounts, if any:

 

		(a)	the
                                         assets owned by Rebel Group comprise all the assets necessary to enable Rebel Group to
                                         carry on its business in the ordinary course as carried on up to the present time and
                                         no such assets are used wholly or partly for any purpose other than its business.

 

		(b)	all
                                         assets of Rebel Group, including all debts due to Rebel Group which have been represented
                                         as being the property of or due to Rebel Group or used or held for the purposes of its
                                         business, were on the relevant date the absolute property of Rebel Group and (save for
                                         those subsequently disposed of or realised in the ordinary and usual course of business)
                                         all such assets and all assets and debts which have subsequently have been acquired or
                                         arisen are the absolute property of Rebel Group and none is the subject of any assignment
                                         or Encumbrance (excepting only liens arising by operation of law in the normal course
                                         of trading) or the subject of any factoring arrangement, hire purchase, conditional sale
                                         or credit sale agreement.

 

    	 	20	 

     

    

 

		(c)	all
                                         such assets are, where capable of possession, in the possession of or under the control
                                         of Rebel Group or Rebel Group is entitled to take possession or control of such assets.

 

		(d)	The
                                         property, rights and assets owned, leased or otherwise used by Rebel Group comprise all
                                         the property, rights and assets necessary or convenient for the carrying on of the business
                                         of Rebel Group fully and effectively in the manner in, and to the extent to, which it
                                         is presently conducted.

 

		11.	Property,
                                         Leases

 

		(a)	Rebel
                                         Group has not entered into any leases, tenancies, licenses, concessions, agencies and
                                         agreements of whatsoever nature.

 

		(b)	Rebel
                                         Group does not own any real property.

 

		12.	Statutory
                                         and Other Requirements, Consents and License 

 

		(a)	Rebel
                                         Group has carried on its business in accordance with applicable laws, regulations and
                                         bylaws in the countries it operates and there is no investigation or enquiry by, or order,
                                         decree or judgment of, any court or any government agency or regulatory body outstanding
                                         or anticipated against Rebel Group.

 

		(b)	There
                                         is no investigation disciplinary proceeding or enquiry by, or order, decree, decision
                                         or judgment of, any court, tribunal, arbitrator, governmental agency or regulatory body
                                         outstanding or to the best knowledge of Rebel Group, anticipated against Rebel Group
                                         or any person for whose acts or defaults it may be vicariously liable.

 

		(c)	Rebel
                                         Group has not received any notice or other communication (official or otherwise) from
                                         any court, tribunal, arbitrator, governmental agency or regulatory body with respect
                                         to an alleged, actual or potential violation and/or failure to comply with any such applicable
                                         law, bye-law or regulation, or requiring it to take or omit any action.

 

		(d)	None
                                         of the directors, officers, agents, employees or other persons acting on behalf of Rebel
                                         Group has been party to the use of any of the assets of Rebel Group for unlawful contributions,
                                         gifts, entertainment or other unlawful expenses relating to political activity or to
                                         the making of any direct or indirect unlawful payment to government officials or employees
                                         from such assets; to the establishment or maintenance of any unlawful or unrecorded fund
                                         of monies or other assets; to the making of any false or fictitious entries in the books
                                         or records of Rebel Group; or to the making of any unlawful or undisclosed payment.

 

		13.	Books
                                         and Records

 

The
statutory records, registers and books and the books of account of Rebel Group have been properly kept, are duly entered up and
maintained in accordance with all legal requirements applicable thereto on a proper and consistent basis and contain complete
and accurate records of all matters required to be dealt with in such books and all such books and records and all other documents
(including documents of title and copies of all subsisting agreements to which Rebel Group is a party) which are the property
of Rebel Group or ought to be in its possession are in its possession (or under its control) and no notice or allegation that
any is incorrect or should be rectified has been received. All accounts, documents and returns required by law to be delivered
or made to the Registrar of Companies or any other authority have been duly and correctly delivered or made.

 

    	 	21	 

     

    

 

		14.	Options
                                         on Share Capital or Assets

 

There
is no option, right to acquire, mortgage, charge, pledge, lien or other form of security or Encumbrance on, over or affecting
the shares or capital in, or any of the assets or businesses of, Rebel Group and there is no agreement or commitment to give or
create any of the foregoing.

 

		15.	Intellectual
                                         Property

 

For
the purposes of this paragraph of Schedule 3:

 

“Business
IP” means all Intellectual Property which has been used in the business of Rebel Group;

 

“Intellectual
Property” means trademarks, service marks, trade names, domain names, logos, get-up, patents, inventions, registered
and unregistered design rights, copyrights, semi-conductor topography rights, database rights and all other similar rights in
any part of the world (including Know-how) including, where such rights are obtained or enhanced by registration, any registration
of such rights and applications and rights to apply for such registrations;

 

“Know-how”
means confidential, industrial and commercial information and techniques in any form including drawings, formulae, test results,
reports, project reports and testing procedures, instruction and training manuals, tables of operating conditions, market forecasts,
lists and particulars of customers and suppliers;

 

“Licensed
Business IP” means Business IP other than Owned Business IP; and

 

“Owned
Business IP” means Business IP which is owned by Rebel Group.

 

		(a)	All
                                         Business IP is either legally and beneficially owned by Rebel Group or lawfully used
                                         with the consent of the owner.

 

		(b)	All
                                         Owned Business IP is not being infringed or attacked or opposed by any person.

 

		(c)	All
                                         Business IP is not subject to any Encumbrance or any licence or authority in favour of
                                         another.

 

		(d)	The
                                         Owned Business IP is valid and enforceable.

 

		(e)	There
                                         has been and is no misuse of Know-how by Rebel Group and Rebel Group has not made any
                                         disclosure of Know-how to any person other than TCK, except property and in the ordinary
                                         and usual course of business and on the basis that such disclosure is to be treated as
                                         being of a confidential character.

 

    	 	22	 

     

    

 

		(f)	Neither
                                         entering into, nor compliance with, nor completion of this Agreement will, or is likely
                                         to result in a breach of, or give any third party a right to terminate or vary any license
                                         to use any Licensed Business IP.

 

		(g)	No
                                         moral rights have been asserted or, to the best knowledge of Rebel Group, are likely
                                         to be asserted which would affect the use of any of the Business IP.

 

		(h)	The
                                         Business IP comprises all the rights and interests in Intellectual Property necessary
                                         or convenient for the carrying on of the business of Rebel Group in the manner in and
                                         to the extent to which it is presently conducted.

 

		16.	Banking
                                         and Finance

 

Save
as disclosed in writing to TCK:

 

		(a)	Rebel
                                         Group has no liabilities in the nature of borrowings or in respect of debentures or negotiable
                                         instruments other than cheques drawn in the ordinary course of business on its bank accounts
                                         and is not a party to any loan agreement, facility letter or other agreement for the
                                         provision of credit or financing facilities to it or any agreement for the sale, factoring
                                         or discounting of debts.

 

		(b)	Rebel
                                         Group has not given or undertaken to give any security or guarantee for any liability
                                         of any person.

 

		17.	Material
                                         Contracts

 

Save
as disclosed in writing to TCK, Rebel Group has not entered into any Material Contract. As used herein, “Material Contract”
means an agreement or arrangement to which Rebel Group is a party or is bound by and which is of material importance to its business,
affairs, operations, assets, profits or financial condition.

 

		18.	Insolvency,
                                         etc

 

		(a)	No
                                         order has been made or petition presented or resolution passed for the winding-up or
                                         administration of Rebel Group and to the best knowledge of Rebel Group, there are no
                                         grounds on which any person would be entitled to have Rebel Group wound-up or placed
                                         in administration, nor has any person threatened to present such a petition or convened
                                         or threatened to convene a meeting of Rebel Group to consider a resolution to wind up
                                         Rebel Group or any other resolutions, nor has any step been taken in relation to Rebel
                                         Group under the law relating to insolvency or the relief of debtors in any part of the
                                         world.

 

		(b)	No
                                         petition has been presented or other proceedings have been commenced for an administration
                                         or judicial management order to be made (or any other order to be made by which during
                                         the period it is in force, the affairs, business and assets of the company concerned
                                         are managed by a person appointed for the purpose by a court, governmental agency or
                                         similar body) in relation to Rebel Group, nor has any such other been made.

 

    	 	23	 

     

    

 

		(c)	No
                                         receiver (including an administrative receiver), liquidator, judicial manager trustee,
                                         administrator, custodian or similar official has been appointed in any jurisdiction in
                                         respect of the whole or any part of the business or assets of Rebel Group and no step
                                         has been taken for or with a view to the appointment of such a person.

 

		(d)	In
                                         relation to any property or assets held by Rebel Group under any hire purchase, conditional
                                         sale, chattel leasing or retention of title agreement or otherwise belonging to a third
                                         party, no event has occurred which entitles, or which upon intervention or notice by
                                         the third party may entitle, the third party to repossess the property or assets concerned
                                         or terminate the agreement or any license in respect of the same.

 

    	 	24	 

     

    

 

IN
WITNESS WHEREOF this Agreement has been duly executed on the date stated at the beginning of this Contract.

 

	REBEL
    GROUP	 
	 	 
	Signed
        by:

         

         

         

         

        For
        and on behalf of

        REBEL
        GROUP INC.
	 
	 	 
	 	 
	In
    the presence of:	 
	 	 
	 	 
	 	 
	Witness
    name:	 
	Passport
    Number:	 
	Address:	 
	 	 
	 	 
	PURE
    HEART	 
	 	 
	Signed
        by:

         

        Leong
        Aan Yee, Justin (Director)

         

         

         

        For
        and on behalf of

        PURE
        HEART ENTERTAINMENT PTE LTD
	 
	 	 
	 	 
	In
    the presence of:	 
	 	 
	 	 
	 	 
	Witness
    name:	 
	Passport
    Number:	 
	Address:	 

 

    	 	25	 

     

    

 

	LKK	 
	 	 
	Signed
        by:

         

        LEONG
        KHIAN KIEE 

         

         

         

        In
        the presence of:
	 
	 	 
	 	 
	 	 
	Witness
    name:	 
	Passport
    Number:	 
	Address:	 
	 	 
	 	 
	TCK	 
	 	 
	Signed
        by:

         

        TENG
        CHEE KEONG 

         

         

         

        In
        the presence of:
	 
	 	 
	 	 
	 	 
	Witness
    name:	 
	Passport
    Number:	 
	Address:	 

 

 

26Exhibit 4.2

 

 

LANNETT COMPANY, INC.

 

 

INDENTURE

 

Dated as of                  

 

 

[                ]

 

Trustee

 

 

 

TABLE OF CONTENTS

 

	
 
    	
 
    	
Page
    
	
 
    	
 
    
	
ARTICLE I.   DEFINITIONS AND INCORPORATION BY REFERENCE
    	
1
    
	
Section 1.1.
    	
Definitions
    	
1
    
	
Section 1.2.
    	
Other Definitions
    	
4
    
	
Section 1.3.
    	
Incorporation by   Reference of Trust Indenture Act
    	
5
    
	
Section 1.4.
    	
Rules of   Construction
    	
5
    
	
ARTICLE II.   THE SECURITIES
    	
5
    
	
Section 2.1.
    	
Issuable in Series
    	
5
    
	
Section 2.2.
    	
Establishment of Terms   of Series of Securities
    	
6
    
	
Section 2.3.
    	
Execution and   Authentication
    	
8
    
	
Section 2.4.
    	
Registrar and Paying   Agent
    	
9
    
	
Section 2.5.
    	
Paying Agent to Hold   Money in Trust
    	
10
    
	
Section 2.6.
    	
Securityholder Lists
    	
10
    
	
Section 2.7.
    	
Transfer and Exchange
    	
10
    
	
Section 2.8.
    	
Mutilated, Destroyed,   Lost and Stolen Securities
    	
11
    
	
Section 2.9.
    	
Outstanding Securities
    	
12
    
	
Section 2.10.
    	
Treasury Securities
    	
12
    
	
Section 2.11.
    	
Temporary Securities
    	
12
    
	
Section 2.12.
    	
Cancellation
    	
13
    
	
Section 2.13.
    	
Defaulted Interest
    	
13
    
	
Section 2.14.
    	
Global Securities
    	
13
    
	
Section 2.15.
    	
CUSIP Numbers
    	
14
    
	
ARTICLE III.   REDEMPTION
    	
14
    
	
Section 3.1.
    	
Notice to Trustee
    	
14
    
	
Section 3.2.
    	
Selection of Securities   to be Redeemed
    	
15
    
	
Section 3.3.
    	
Notice of Redemption
    	
15
    
	
Section 3.4.
    	
Effect of Notice of   Redemption
    	
16
    
	
Section 3.5.
    	
Deposit of Redemption   Price
    	
16
    
	
Section 3.6.
    	
Securities Redeemed in   Part
    	
16
    
	
ARTICLE IV.   COVENANTS
    	
17
    
	
Section 4.1.
    	
Payment of Principal   and Interest
    	
17
    
	
Section 4.2.
    	
SEC Reports
    	
17
    
	
Section 4.3.
    	
Compliance Certificate
    	
17
    
	
Section 4.4.
    	
Stay, Extension and   Usury Laws
    	
18
    
	
ARTICLE V.   SUCCESSORS
    	
18
    
	
Section 5.1.
    	
When Company   May Merge, Etc.
    	
18
    
	
Section 5.2.
    	
Successor Corporation   Substituted
    	
18
    
	
ARTICLE VI.   DEFAULTS AND REMEDIES
    	
19
    
	
Section 6.1.
    	
Events of Default
    	
19
    
	
Section 6.2.
    	
Acceleration of   Maturity; Rescission and Annulment
    	
20
    
	
Section 6.3.
    	
Collection of   Indebtedness and Suits for Enforcement by Trustee
    	
20
    
	
Section 6.4.
    	
Trustee May File   Proofs of Claim
    	
21
    
	
Section 6.5.
    	
Trustee   May Enforce Claims Without Possession of Securities
    	
22
    
	
Section 6.6.
    	
Application of Money   Collected
    	
22
    

 

i

 

	
Section 6.7.
    	
Limitation on Suits
    	
23
    
	
Section 6.8.
    	
Unconditional Right of   Holders to Receive Principal and Interest
    	
23
    
	
Section 6.9.
    	
Restoration of Rights   and Remedies
    	
23
    
	
Section 6.10.
    	
Rights and Remedies   Cumulative
    	
24
    
	
Section 6.11.
    	
Delay or Omission Not   Waiver
    	
24
    
	
Section 6.12.
    	
Control by Holders
    	
24
    
	
Section 6.13.
    	
Waiver of Past Defaults
    	
24
    
	
Section 6.14.
    	
Undertaking for Costs
    	
25
    
	
ARTICLE VII.   TRUSTEE
    	
25
    
	
Section 7.1.
    	
Duties of Trustee
    	
25
    
	
Section 7.2.
    	
Rights of Trustee
    	
26
    
	
Section 7.3.
    	
Individual Rights of   Trustee
    	
27
    
	
Section 7.4.
    	
Trustee’s Disclaimer
    	
28
    
	
Section 7.5.
    	
Notice of Defaults
    	
28
    
	
Section 7.6.
    	
Reports by Trustee to   Holders
    	
28
    
	
Section 7.7.
    	
Compensation and   Indemnity
    	
28
    
	
Section 7.8.
    	
Replacement of Trustee
    	
29
    
	
Section 7.9.
    	
Successor Trustee by   Merger, Etc.
    	
30
    
	
Section 7.10.
    	
Eligibility; Disqualification
    	
30
    
	
Section 7.11.
    	
Preferential Collection   of Claims Against Company
    	
30
    
	
ARTICLE VIII.   SATISFACTION AND DISCHARGE; DEFEASANCE
    	
30
    
	
Section 8.1.
    	
Satisfaction and   Discharge of Indenture
    	
30
    
	
Section 8.2.
    	
Application of Trust   Funds; Indemnification
    	
31
    
	
Section 8.3.
    	
Legal Defeasance of   Securities of any Series
    	
32
    
	
Section 8.4.
    	
Covenant Defeasance
    	
33
    
	
Section 8.5.
    	
Repayment to Company
    	
35
    
	
Section 8.6.
    	
Reinstatement
    	
35
    
	
ARTICLE IX.   AMENDMENTS AND WAIVERS
    	
35
    
	
Section 9.1.
    	
Without Consent of   Holders
    	
35
    
	
Section 9.2.
    	
With Consent of Holders
    	
36
    
	
Section 9.3.
    	
Limitations
    	
36
    
	
Section 9.4.
    	
Compliance with Trust   Indenture Act
    	
37
    
	
Section 9.5.
    	
Revocation and Effect   of Consents
    	
37
    
	
Section 9.6.
    	
Notation on or Exchange   of Securities
    	
38
    
	
Section 9.7.
    	
Trustee Protected
    	
38
    
	
ARTICLE X.   MISCELLANEOUS
    	
38
    
	
Section 10.1.
    	
Trust Indenture Act   Controls
    	
38
    
	
Section 10.2.
    	
Notices
    	
38
    
	
Section 10.3.
    	
Communication by   Holders with Other Holders
    	
39
    
	
Section 10.4.
    	
Certificate and Opinion   as to Conditions Precedent
    	
39
    
	
Section 10.5.
    	
Statements Required in   Certificate or Opinion
    	
39
    
	
Section 10.6.
    	
Rules by Trustee   and Agents
    	
40
    
	
Section 10.7.
    	
Legal Holidays
    	
40
    
	
Section 10.8.
    	
No Recourse Against   Others
    	
40
    
	
Section 10.9.
    	
Counterparts
    	
40
    
	
Section 10.10.
    	
Governing Law
    	
41
    

 

ii

 

	
Section 10.11.
    	
No Adverse   Interpretation of Other Agreements
    	
41
    
	
Section 10.12.
    	
Successors
    	
41
    
	
Section 10.13.
    	
Severability
    	
41
    
	
Section 10.14.
    	
Table of Contents,   Headings, Etc.
    	
41
    
	
Section 10.15.
    	
Securities in a Foreign   Currency
    	
41
    
	
Section 10.16.
    	
Judgment Currency
    	
42
    
	
Section 10.17.
    	
Force Majeure
    	
42
    
	
ARTICLE XI.   SINKING FUNDS
    	
43
    
	
Section 11.1.
    	
Applicability of   Article
    	
43
    
	
Section 11.2.
    	
Satisfaction of Sinking   Fund Payments with Securities
    	
43
    
	
Section 11.3.
    	
Redemption of   Securities for Sinking Fund
    	
44
    

 

iii

 

LANNETT COMPANY, INC.

 

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

 

	
§ 310(a)(1)
    	
 
    	
7.10
    
	
(a)(2)
    	
 
    	
7.10
    
	
(a)(3)
    	
 
    	
Not Applicable
    
	
(a)(4)
    	
 
    	
Not Applicable
    
	
(a)(5)
    	
 
    	
7.10
    
	
(b)
    	
 
    	
7.10
    
	
§ 311(a)
    	
 
    	
7.11
    
	
(b)
    	
 
    	
7.11
    
	
(c)
    	
 
    	
Not Applicable
    
	
§ 312(a)
    	
 
    	
2.6
    
	
(b)
    	
 
    	
10.3
    
	
(c)
    	
 
    	
10.3
    
	
§ 313(a)
    	
 
    	
7.6
    
	
(b)(1)
    	
 
    	
7.6
    
	
(b)(2)
    	
 
    	
7.6
    
	
(c)(1)
    	
 
    	
7.6
    
	
(d)
    	
 
    	
7.6
    
	
§ 314(a)
    	
 
    	
4.2, 10.5
    
	
(b)
    	
 
    	
Not Applicable
    
	
(c)(1)
    	
 
    	
10.4
    
	
(c)(2)
    	
 
    	
10.4
    
	
(c)(3)
    	
 
    	
Not Applicable
    
	
(d)
    	
 
    	
Not Applicable
    
	
(e)
    	
 
    	
10.5
    
	
(f)
    	
 
    	
Not Applicable
    
	
§ 315(a)
    	
 
    	
7.1
    
	
(b)
    	
 
    	
7.5
    
	
(c)
    	
 
    	
7.1
    
	
(d)
    	
 
    	
7.1
    
	
(e)
    	
 
    	
6.14
    
	
§ 316(a)
    	
 
    	
2.10
    
	
(a)(1)(A)
    	
 
    	
6.12
    
	
(a)(1)(B)
    	
 
    	
6.13
    
	
(b)
    	
 
    	
6.8
    
	
§ 317(a)(1)
    	
 
    	
6.3
    
	
(a)(2)
    	
 
    	
6.4
    
	
(b)
    	
 
    	
2.5
    
	
§ 318(a)
    	
 
    	
10.1
    

 

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

 

iv

 

Indenture dated as of [              ] between Lannett Company, Inc., a Delaware corporation (“Company”), and [             ], a [           ] (“Trustee”).

 

Each party agrees as follows for the benefit of the other party and for the equal and ratable benefit of the Holders of the Securities issued under this Indenture.

 

ARTICLE I.
 DEFINITIONS AND INCORPORATION BY REFERENCE

 

Section 1.1.                                 Definitions.

 

“Additional Amounts” means any additional amounts which are required hereby or by any Security, under circumstances specified herein or therein, to be paid by the Company in respect of certain taxes imposed on Holders specified herein or therein and which are owing to such Holders.

 

“Affiliate” of any specified person means any other person directly or indirectly controlling or controlled by or under common control with such specified person.   For the purposes of this definition, “control” (including, with correlative meanings, the terms “controlled by” and “under common control with”), as used with respect to any person, shall mean the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of such person, whether through the ownership of voting securities or by agreement or otherwise.

 

“Agent” means any Registrar, Paying Agent or Notice Agent.

 

“Board of Directors” means the board of directors of the Company or any duly authorized committee thereof.

 

“Board Resolution” means a copy of a resolution certified by the Secretary or an Assistant Secretary of the Company to have been adopted by the Board of Directors or pursuant to authorization by the Board of Directors and to be in full force and effect on the date of the certificate and delivered to the Trustee.

 

“Business Day” means, unless otherwise provided by Board Resolution, Officer’s Certificate or supplemental indenture hereto for a particular Series, any day except a Saturday, Sunday or a legal holiday in The City of New York, New York (or in connection with any payment, the place of payment) on which banking institutions are authorized or required by law, regulation or executive order to close.

 

“Capital Stock” means any and all shares, interests, participations, rights or other equivalents (however designated) of corporate stock.

 

“Company” means the party named as such above until a successor replaces it and thereafter means the successor.

 

“Company Order” means a written order signed in the name of the Company by an Officer.

 

 

“Corporate Trust Office” means the office of the Trustee at which at any particular time its corporate trust business related to this Indenture shall be principally administered.

 

“Default” means any event which is, or after notice or passage of time or both would be, an Event of Default.

 

“Depositary” means, with respect to the Securities of any Series issuable or issued in whole or in part in the form of one or more Global Securities, the person designated as Depositary for such Series by the Company, which Depositary shall be a clearing agency registered under the Exchange Act; and if at any time there is more than one such person, “Depositary” as used with respect to the Securities of any Series shall mean the Depositary with respect to the Securities of such Series.

 

“Discount Security” means any Security that provides for an amount less than the stated principal amount thereof to be due and payable upon declaration of acceleration of the maturity thereof pursuant to Section 6.2.

 

“Dollars” and “$” means the currency of The United States of America.

 

“Exchange Act” means the Securities Exchange Act of 1934, as amended.

 

“Foreign Currency” means any currency or currency unit issued by a government other than the government of The United States of America.

 

“Foreign Government Obligations” means, with respect to Securities of any Series that are denominated in a Foreign Currency, direct obligations of, or obligations guaranteed by, the government that issued or caused to be issued such currency for the payment of which obligations its full faith and credit is pledged and which are not callable or redeemable at the option of the issuer thereof.

 

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

 

“Global Security” or “Global Securities” means a Security or Securities, as the case may be, in the form established pursuant to Section 2.2 evidencing all or part of a Series of Securities, issued to the Depositary for such Series or its nominee, and registered in the name of such Depositary or nominee.

 

“Holder” or “Securityholder” means a person in whose name a Security is registered.

 

2

 

“Indenture” means this Indenture as amended or supplemented from time to time and shall include the form and terms of particular Series of Securities established as contemplated hereunder.

 

“interest” with respect to any Discount Security which by its terms bears interest only after Maturity, means interest payable after Maturity.

 

“Maturity,” when used with respect to any Security, means the date on which the principal of such Security becomes due and payable as therein or herein provided, whether at the Stated Maturity or by declaration of acceleration, call for redemption or otherwise.

 

“Officer” means the Chief Executive Officer, President, the Chief Financial Officer, the Chief Operating Officer, the Treasurer or any Assistant Treasurer, the Secretary or any Assistant Secretary, and any Vice President of the Company.

 

“Officer’s Certificate” means a certificate signed by any Officer.

 

“Opinion of Counsel” means a written opinion of legal counsel who is acceptable to the Trustee.  The counsel may be an employee of or counsel to the Company.

 

“person” means any individual, corporation, partnership, joint venture, association, limited liability company, joint-stock company, trust, unincorporated organization or government or any agency or political subdivision thereof.

 

“principal” of a Security means the principal of the Security plus, when appropriate, the premium, if any, on, and any Additional Amounts in respect of, the Security.

 

“Responsible Officer” means any officer of the Trustee in its Corporate Trust Office having responsibility for administration of this Indenture and also means, with respect to a particular corporate trust matter, any other officer to whom any corporate trust matter is referred because of his or her knowledge of and familiarity with a particular subject.

 

“SEC” means the Securities and Exchange Commission.

 

“Securities” means the debentures, notes or other debt instruments of the Company of any Series authenticated and delivered under this Indenture.

 

“Series” or “Series of Securities” means each series of debentures, notes or other debt instruments of the Company created pursuant to Sections 2.1 and 2.2 hereof.

 

“Stated Maturity” when used with respect to any Security, means the date specified in such Security as the fixed date on which the principal of such Security or interest is due and payable.

 

“Subsidiary” of any specified person means any corporation, association or other business entity of which more than 50% of the total voting power of shares of Capital Stock entitled (without regard to the occurrence of any contingency) to vote in the election of directors, 

 

3

 

managers or trustees thereof is at the time owned or controlled, directly or indirectly, by such person or one or more of the other Subsidiaries of that person or a combination thereof.

 

“TIA” means the Trust Indenture Act of 1939 (15 U.S. Code §§ 77aaa-77bbbb) as in effect on the date of this Indenture; provided, however, that in the event the Trust Indenture Act of 1939 is amended after such date, “TIA” means, to the extent required by any such amendment, the Trust Indenture Act as so amended.

 

“Trustee” means the person named as the “Trustee” in the first paragraph of this instrument until a successor Trustee shall have become such pursuant to the applicable provisions of this Indenture, and thereafter “Trustee” shall mean or include each person who is then a Trustee hereunder, and if at any time there is more than one such person, “Trustee” as used with respect to the Securities of any Series shall mean the Trustee with respect to Securities of that Series.

 

“U.S. Government Obligations” means securities which are direct obligations of, or guaranteed by, The United States of America for the payment of which its full faith and credit is pledged and which are not callable or redeemable at the option of the issuer thereof, and shall also include a depositary receipt issued by a bank or trust company as custodian with respect to any such U.S. Government Obligation or a specific payment of interest on or principal of any such U.S. Government Obligation held by such custodian for the account of the holder of a depository receipt, provided that (except as required by law) such custodian is not authorized to make any deduction from the amount payable to the holder of such depositary receipt from any amount received by the custodian in respect of the U.S. Government Obligation evidenced by such depositary receipt.

 

Section 1.2.                                 Other Definitions.

 

	
TERM
    	
 
    	
DEFINED IN
   SECTION
    
	
 
    	
 
    	
 
    
	
“Bankruptcy Law”
    	
 
    	
6.1
    
	
“Custodian”
    	
 
    	
6.1
    
	
“Event of Default”
    	
 
    	
6.1
    
	
“Judgment Currency”
    	
 
    	
10.16
    
	
“Legal Holiday”
    	
 
    	
10.7  
    
	
“mandatory sinking fund payment”
    	
 
    	
11.1  
    
	
“New York Banking Day”
    	
 
    	
10.16
    
	
“optional sinking fund   payment”
    	
 
    	
11.1  
    
	
“Paying Agent”
    	
 
    	
2.4
    
	
“Registrar”
    	
 
    	
2.4
    
	
“Required Currency”
    	
 
    	
10.16
    
	
“Notice Agent”
    	
 
    	
2.4
    
	
“successor person”
    	
 
    	
5.1
    

 

4

 

Section 1.3.                                 Incorporation by Reference of Trust Indenture Act.

 

Whenever this Indenture refers to a provision of the TIA, the provision is incorporated by reference in and made a part of this Indenture.  The following TIA terms used in this Indenture have the following meanings:

 

“Commission” means the SEC.

 

“indenture securities” means the Securities.

 

“indenture security holder” means a Securityholder.

 

“indenture to be qualified” means this Indenture.

 

“indenture trustee” or “institutional trustee” means the Trustee.

 

“obligor” on the indenture securities means the Company and any successor obligor upon the Securities.

 

All other terms used in this Indenture that are defined by the TIA, defined by TIA reference to another statute or defined by SEC rule under the TIA and not otherwise defined herein are used herein as so defined.

 

Section 1.4.                                 Rules of Construction.

 

Unless the context otherwise requires:

 

(a)                                 a term has the meaning assigned to it;

 

(b)                                 an accounting term not otherwise defined has the meaning assigned to it in accordance with GAAP;

 

(c)                                  “or” is not exclusive;

 

(d)                                 words in the singular include the plural, and in the plural include the singular; and

 

(e)                                  provisions apply to successive events and transactions.

 

ARTICLE II.
 THE SECURITIES

 

Section 2.1.                                 Issuable in Series.

 

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. All Securities of a Series shall be identical except as may be set forth or determined in the manner provided in a Board Resolution, a supplemental indenture or an Officer’s Certificate detailing the adoption of the terms thereof pursuant to authority granted under a Board Resolution. In the case of Securities of a Series to be issued from time to time, the Board Resolution, Officer’s Certificate or supplemental indenture detailing the adoption of the terms 

 

5

 

thereof pursuant to authority granted under a Board Resolution may provide for the method by which specified terms (such as interest rate, maturity date, record date or date from which interest shall accrue) are to be determined.  Securities may differ between Series in respect of any matters, provided that all Series of Securities shall be equally and ratably entitled to the benefits of the Indenture.

 

Section 2.2.                                 Establishment of Terms of Series of Securities.

 

At or prior to the issuance of any Securities within a Series, the following shall be established (as to the Series generally, in the case of Subsection 2.2.1 and either as to such Securities within the Series or as to the Series generally in the case of Subsections 2.2.2 through 2.2.23) by or pursuant to a Board Resolution, and set forth or determined in the manner provided in a Board Resolution, supplemental indenture hereto or Officer’s Certificate:

 

2.2.1.                                          the title (which shall distinguish the Securities of that particular Series from the Securities of any other Series) and ranking (including the terms of any subordination provisions) of the Series;

 

2.2.2.                                          the price or prices (expressed as a percentage of the principal amount thereof) at which the Securities of the Series will be issued;

 

2.2.3.                                          any limit upon the aggregate principal amount of the Securities of the Series which may be authenticated and delivered under this Indenture (except for Securities authenticated and delivered upon registration of transfer of, or in exchange for, or in lieu of, other Securities of the Series pursuant to Section 2.7, 2.8, 2.11, 3.6 or 9.6);

 

2.2.4.                                          the date or dates on which the principal of the Securities of the Series is payable;

 

2.2.5.                                          the rate or rates (which may be fixed or variable) per annum or, if applicable, the method used to determine such rate or rates (including, but not limited to, any commodity, commodity index, stock exchange index or financial index) at which the Securities of the Series shall bear interest, if any, the date or dates from which such interest, if any, shall accrue, the date or dates on which such interest, if any, shall commence and be payable and any regular record date for the interest payable on any interest payment date;

 

2.2.6.                                          the place or places where the principal of and interest, if any, on the Securities of the Series shall be payable, where the Securities of such Series may be surrendered for registration of transfer or exchange and where notices and demands to or upon the Company in respect of the Securities of such Series and this Indenture may be delivered, and the method of such payment, if by wire transfer, mail or other means;

 

2.2.7.                                          if applicable, the period or periods within which, the price or prices at which and the terms and conditions upon which the Securities of the Series may be redeemed, in whole or in part, at the option of the Company;

 

2.2.8.                                          the obligation, if any, of the Company to redeem or purchase the Securities of the Series pursuant to any sinking fund or analogous provisions or at the option of a 

 

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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;

 

2.2.9.                                          the dates, if any, on which and the price or prices at which the Securities of the Series will be repurchased by the Company at the option of the Holders thereof and other detailed terms and provisions of such repurchase obligations;

 

2.2.10.                                   if other than denominations of $1,000 and any integral multiple thereof, the denominations in which the Securities of the Series shall be issuable;

 

2.2.11.                                   the forms of the Securities of the Series and whether the Securities will be issuable as Global Securities;

 

2.2.12.                                   if other than the principal amount thereof, the portion of the principal amount of the Securities of the Series that shall be payable upon declaration of acceleration of the maturity thereof pursuant to Section 6.2;

 

2.2.13.                                   the currency of denomination of the Securities of the Series, which may be Dollars or any Foreign Currency, and if such currency of denomination is a composite currency, the agency or organization, if any, responsible for overseeing such composite currency;

 

2.2.14.                                   the designation of the currency, currencies or currency units in which payment of the principal of and interest, if any, on the Securities of the Series will be made;

 

2.2.15.                                   if payments of principal of or interest, if any, on the Securities of the Series are to be made in one or more currencies or currency units other than that or those in which such Securities are denominated, the manner in which the exchange rate with respect to such payments will be determined;

 

2.2.16.                                   the manner in which the amounts of payment of principal of or interest, if any, on the Securities of the Series will be determined, if such amounts may be determined by reference to an index based on a currency or currencies or by reference to a commodity, commodity index, stock exchange index or financial index;

 

2.2.17.                                   the provisions, if any, relating to any security provided for the Securities of the Series;

 

2.2.18.                                   any addition to, deletion of or change in the Events of Default which applies to any Securities of the Series and any change in the right of the Trustee or the requisite Holders of such Securities to declare the principal amount thereof due and payable pursuant to Section 6.2;

 

2.2.19.                                   any addition to, deletion of or change in the covenants set forth in Articles IV or V which applies to Securities of the Series;

 

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2.2.20.                                   any Depositaries, interest rate calculation agents, exchange rate calculation agents or other agents with respect to Securities of such Series if other than those appointed herein;

 

2.2.21.                                   the provisions, if any, relating to conversion or exchange of any Securities of such Series, including if applicable, the conversion or exchange price, the conversion or exchange period, provisions as to whether conversion or exchange will be mandatory, at the option of the Holders thereof or at the option of the Company, the events requiring an adjustment of the conversion price or exchange price and provisions affecting conversion or exchange if such Series of Securities are redeemed;

 

2.2.22.                                   any other terms of the Series (which may supplement, modify or delete any provision of this Indenture insofar as it applies to such Series), including any terms that may be required under applicable law or regulations or advisable in connection with the marketing of Securities of that Series; and

 

2.2.23.                                   whether any of the Company’s direct or indirect Subsidiaries will guarantee the Securities of that Series, including the terms of subordination, if any, of such guarantees.

 

All Securities of any one Series need not be issued at the same time and may be issued from time to time, consistent with the terms of this Indenture, if so provided by or pursuant to the Board Resolution, supplemental indenture hereto or Officer’s Certificate referred to above.

 

Section 2.3.                                 Execution and Authentication.

 

Two (2) Officers shall sign the Securities for the Company by manual or facsimile signature.

 

If an Officer whose signature is on a Security no longer holds that office at the time the Security is authenticated, the Security shall nevertheless be valid.

 

A Security shall not be valid until authenticated by the manual or facsimile signature of the Trustee or an authenticating agent.  The signature shall be conclusive evidence that the Security has been authenticated under this Indenture.

 

The Trustee shall at any time, and from time to time, authenticate Securities for original issue in the principal amount provided in the Board Resolution, supplemental indenture hereto or Officer’s Certificate, upon receipt by the Trustee of a Company Order.  Each Security shall be dated the date of its authentication.

 

The aggregate principal amount of Securities of any Series outstanding at any time may not exceed any limit upon the maximum principal amount for such Series set forth in the Board Resolution, supplemental indenture hereto or Officer’s Certificate delivered pursuant to Section 2.2, except as provided in Section 2.8.

 

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Prior to the issuance of Securities of any Series, the Trustee shall have received and (subject to Section 7.2) shall be fully protected in relying on:  (a) the Board Resolution, supplemental indenture hereto or Officer’s Certificate establishing the form of the Securities of that Series or of Securities within that Series and the terms of the Securities of that Series or of Securities within that Series, (b) an Officer’s Certificate complying with Section 10.4, and (c) an Opinion of Counsel complying with Section 10.4.

 

The Trustee shall have the right to decline to authenticate and deliver any Securities of such Series: (a) if the Trustee, being advised by counsel, determines that such action may not be taken lawfully; or (b) if the Trustee in good faith by its board of directors or trustees, executive committee or a trust committee of directors and/or vice-presidents or a committee of Responsible Officers shall determine that such action would expose the Trustee to personal liability to Holders of any then outstanding Series of Securities.

 

The Trustee may appoint an authenticating agent acceptable to the Company to authenticate Securities.  An authenticating agent may authenticate Securities whenever the Trustee may do so.  Each reference in this Indenture to authentication by the Trustee includes authentication by such agent.  An authenticating agent has the same rights as an Agent to deal with the Company or an Affiliate of the Company.

 

Section 2.4.                                 Registrar and Paying Agent.

 

The Company shall maintain, with respect to each Series of Securities, at the place or places specified with respect to such Series pursuant to Section 2.2, an office or agency where Securities of such Series may be presented or surrendered for payment (“Paying Agent”), where Securities of such Series may be surrendered for registration of transfer or exchange (“Registrar”) and where notices and demands to or upon the Company in respect of the Securities of such Series and this Indenture may be delivered (“Notice Agent”).  The Registrar shall keep a register with respect to each Series of Securities and to their transfer and exchange.  The Company will give prompt written notice to the Trustee of the name and address, and any change in the name or address, of each Registrar, Paying Agent or Notice Agent.  If at any time the Company shall fail to maintain any such required Registrar, Paying Agent or Notice Agent or shall fail to furnish the Trustee with the name and address thereof, such presentations, surrenders, notices and demands may be made or served at the Corporate Trust Office of the Trustee, and the Company hereby appoints the Trustee as its agent to receive all such presentations, surrenders, notices and demands.

 

The Company may also from time to time designate one or more co-registrars, additional paying agents or additional notice agents and may from time to time rescind such designations; provided, however, that no such designation or rescission shall in any manner relieve the Company of its obligations to maintain a Registrar, Paying Agent and Notice Agent in each place so specified pursuant to Section 2.2 for Securities of any Series for such purposes.  The Company will give prompt written notice to the Trustee of any such designation or rescission and of any change in the name or address of any such co-registrar, additional paying agent or additional notice agent.  The term “Registrar” includes any co-registrar; the term “Paying Agent” includes any additional paying agent; and the term “Notice Agent” includes any 

 

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additional notice agent.  The Company or any of its Affiliates may serve as Registrar or Paying Agent.

 

The Company hereby appoints the Trustee the initial Registrar, Paying Agent and Notice Agent for each Series unless another Registrar, Paying Agent or Notice Agent, as the case may be, is appointed prior to the time Securities of that Series are first issued.

 

Section 2.5.                                 Paying Agent to Hold Money in Trust.

 

The Company shall require each Paying Agent other than the Trustee to agree in writing that the Paying Agent will hold in trust, for the benefit of Securityholders of any Series of Securities, or the Trustee, all money held by the Paying Agent for the payment of principal of or interest on the Series of Securities, and will notify the Trustee in writing of any default by the Company in making any such payment.  While any such default continues, the Trustee may require a Paying Agent to pay all money held by it to the Trustee.  The Company at any time may require a Paying Agent to pay all money held by it to the Trustee.  Upon payment over to the Trustee, the Paying Agent (if other than the Company or a Subsidiary of the Company) shall have no further liability for the money.  If the Company or a Subsidiary of the Company acts as Paying Agent, it shall segregate and hold in a separate trust fund for the benefit of Securityholders of any Series of Securities all money held by it as Paying Agent.  Upon any bankruptcy, reorganization, or similar proceeding with respect to the Company, the Trustee shall serve as Paying Agent for the Securities.

 

Section 2.6.                                 Securityholder Lists.

 

The Trustee shall preserve in as current a form as is reasonably practicable the most recent list available to it of the names and addresses of Securityholders of each Series of Securities and shall otherwise comply with TIA § 312(a).  If the Trustee is not the Registrar, the Company shall furnish to the Trustee at least ten days before each interest payment date and at such other times as the Trustee may request in writing a list, in such form and as of such date as the Trustee may reasonably require, of the names and addresses of Securityholders of each Series of Securities.

 

Section 2.7.                                 Transfer and Exchange.

 

Where Securities of a Series are presented to the Registrar or a co-registrar with a request to register a transfer or to exchange them for an equal principal amount of Securities of the same Series, the Registrar shall register the transfer or make the exchange if its requirements for such transactions are met.  To permit registrations of transfers and exchanges, the Trustee shall authenticate Securities at the Registrar’s request.  No service charge shall be made for any registration of transfer or exchange (except as otherwise expressly permitted herein), but the Company may require payment of a sum sufficient to cover any transfer tax or similar governmental charge payable in connection therewith (other than any such transfer tax or similar governmental charge payable upon exchanges pursuant to Sections 2.11, 3.6 or 9.6).

 

Neither the Company nor the Registrar shall be required (a) to issue, register the transfer of, or exchange Securities of any Series for the period beginning at the opening of business fifteen days immediately preceding the sending of a notice of redemption of Securities 

 

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of that Series selected for redemption and ending at the close of business on the day such notice is sent, or (b) to register the transfer of or exchange Securities of any Series selected, called or being called for redemption as a whole or the portion being redeemed of any such Securities selected, called or being called for redemption in part.

 

Section 2.8.                                 Mutilated, Destroyed, Lost and Stolen Securities.

 

If any mutilated Security is surrendered to the Trustee, the Company shall execute and the Trustee shall authenticate and deliver in exchange therefor a new Security of the same Series and of like tenor and principal amount and bearing a number not contemporaneously outstanding.

 

If there shall be delivered to the Company and the Trustee (i) evidence to their satisfaction of the destruction, loss or theft of any Security and (ii) such security or indemnity bond as may be required by each of them to hold itself and any of its agents harmless, then, in the absence of notice to the Company or the Trustee that such Security has been acquired by a bona fide purchaser, the Company shall execute and upon its request the Trustee shall authenticate and make available for delivery, in lieu of any such destroyed, lost or stolen Security, a new Security of the same Series and of like tenor and principal amount and bearing a number not contemporaneously outstanding.

 

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

 

Upon the issuance of any new Security under this Section, the Company may require the payment of a sum sufficient to cover any tax or other governmental charge that may be imposed in relation thereto and any other expenses (including the fees and expenses of the Trustee) connected therewith.

 

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

 

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

 

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Section 2.9.                                 Outstanding Securities.

 

The Securities outstanding at any time are all the Securities authenticated by the Trustee except for those canceled by it, those delivered to it for cancellation, those reductions in the interest on a Global Security effected by the Trustee in accordance with the provisions hereof and those described in this Section as not outstanding.

 

If a Security is replaced pursuant to Section 2.8, it ceases to be outstanding until the Trustee receives proof satisfactory to it that the replaced Security is held by a bona fide purchaser.

 

If the Paying Agent (other than the Company, a Subsidiary of the Company or an Affiliate of the Company) holds on the Maturity of Securities of a Series money sufficient to pay such Securities payable on that date, then on and after that date such Securities of the Series cease to be outstanding and interest on them ceases to accrue.

 

The Company may purchase or otherwise acquire the Securities, whether by open market purchases, negotiated transactions or otherwise.  A Security does not cease to be outstanding because the Company or an Affiliate of the Company holds the Security (but see Section 2.10 below).

 

In determining whether the Holders of the requisite principal amount of outstanding Securities have given any request, demand, authorization, direction, notice, consent or waiver hereunder, the principal amount of a Discount Security that shall be deemed to be outstanding for such purposes shall be the amount of the principal thereof that would be due and payable as of the date of such determination upon a declaration of acceleration of the Maturity thereof pursuant to Section 6.2.

 

Section 2.10.                          Treasury Securities.

 

In determining whether the Holders of the required principal amount of Securities of a Series have concurred in any request, demand, authorization, direction, notice, consent or waiver, Securities of a Series owned by the Company or any Affiliate of the Company shall be disregarded, except that for the purposes of determining whether the Trustee shall be protected in relying on any such request, demand, authorization, direction, notice, consent or waiver only Securities of a Series that a Responsible Officer of the Trustee knows are so owned shall be so disregarded.

 

Section 2.11.                          Temporary Securities.

 

Until definitive Securities are ready for delivery, the Company may prepare and the Trustee shall authenticate temporary Securities upon a Company Order.  Temporary Securities shall be substantially in the form of definitive Securities but may have variations that the Company considers appropriate for temporary Securities.  Without unreasonable delay, the Company shall prepare and the Trustee upon receipt of a Company Order shall authenticate definitive Securities of the same Series and date of maturity in exchange for temporary Securities.  Until so exchanged, temporary securities shall have the same rights under this Indenture as the definitive Securities.

 

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Section 2.12.                          Cancellation.

 

The Company at any time may deliver Securities to the Trustee for cancellation.  The Registrar and the Paying Agent shall forward to the Trustee any Securities surrendered to them for registration of transfer, exchange or payment.  The Trustee shall cancel all Securities surrendered for transfer, exchange, payment, replacement or cancellation and shall destroy such canceled Securities (subject to the record retention requirement of the Exchange Act and the Trustee) and deliver a certificate of such cancellation to the Company upon written request of the Company.  The Company may not issue new Securities to replace Securities that it has paid or delivered to the Trustee for cancellation.

 

Section 2.13.                          Defaulted Interest.

 

If the Company defaults in a payment of interest on a Series of Securities, it shall pay the defaulted interest, plus, to the extent permitted by law, any interest payable on the defaulted interest, to the persons who are Securityholders of the Series on a subsequent special record date.  The Company shall fix the special record date and payment date.  At least 10 days before the special record date, the Company shall mail to the Trustee and to each Securityholder of the Series a notice that states the record date, the payment date and the amount of interest to be paid.  The Company may pay defaulted interest in any other lawful manner.

 

Section 2.14.                          Global Securities.

 

2.14.1.                                   Terms of Securities.  A Board Resolution, a supplemental indenture hereto or an Officer’s Certificate shall establish whether the Securities of a Series shall be issued in whole or in part in the form of one or more Global Securities and the Depositary for such Global Security or Securities.

 

2.14.2.                                   Transfer and Exchange.  Notwithstanding any provisions to the contrary contained in Section 2.7 of the Indenture and in addition thereto, any Global Security shall be exchangeable pursuant to Section 2.7 of the Indenture for Securities registered in the names of Holders other than the Depositary for such Security or its nominee only if (i) such Depositary notifies the Company that it is unwilling or unable to continue as Depositary for such Global Security or if at any time such Depositary ceases to be a clearing agency registered under the Exchange Act, and, in either case, the Company fails to appoint a successor Depositary registered as a clearing agency under the Exchange Act within 90 days of such event or (ii) the Company executes and delivers to the Trustee an Officer’s Certificate to the effect that such Global Security shall be so exchangeable.  Any Global Security that is exchangeable pursuant to the preceding sentence shall be exchangeable for Securities registered in such names as the Depositary shall direct in writing in an aggregate principal amount equal to the principal amount of the Global Security with like tenor and terms.

 

Except as provided in this Section 2.14.2, a Global Security may not be transferred except as a whole by the Depositary with respect to such Global Security to a nominee of such Depositary, by a nominee of such Depositary to such Depositary or another nominee of such Depositary or by the Depositary or any such nominee to a successor Depositary or a nominee of such a successor Depositary.

 

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2.14.3.                                   Legend.  Any Global Security issued hereunder shall bear a legend in substantially the following form:

 

“THIS SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF THE DEPOSITARY OR A NOMINEE OF THE DEPOSITARY.  THIS SECURITY IS EXCHANGEABLE FOR SECURITIES REGISTERED IN THE NAME OF A PERSON OTHER THAN THE DEPOSITARY OR ITS NOMINEE ONLY IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE, AND MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITARY TO A NOMINEE OF THE DEPOSITARY, BY A NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY OR BY THE DEPOSITARY OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH A SUCCESSOR DEPOSITARY.”

 

2.14.4.                                   Acts of Holders.  The Depositary, as a Holder, may appoint agents and otherwise authorize participants to give or take any request, demand, authorization, direction, notice, consent, waiver or other action which a Holder is entitled to give or take under the Indenture.

 

2.14.5.                                   Payments.  Notwithstanding the other provisions of this Indenture, unless otherwise specified as contemplated by Section 2.2, payment of the principal of and interest, if any, on any Global Security shall be made to the Holder thereof.

 

2.14.6.                                   Consents, Declaration and Directions.  The Company, the Trustee and any Agent shall treat a person as the Holder of such principal amount of outstanding Securities of such Series represented by a Global Security as shall be specified in a written statement of the Depositary or by the applicable procedures of such Depositary with respect to such Global Security, for purposes of obtaining any consents, declarations, waivers or directions required to be given by the Holders pursuant to this Indenture.

 

Section 2.15.                          CUSIP Numbers.

 

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

 

ARTICLE III.
 REDEMPTION

 

Section 3.1.                                 Notice to Trustee.

 

The Company may, with respect to any Series of Securities, reserve the right to redeem and pay the Series of Securities or may covenant to redeem and pay the Series of Securities or any part thereof prior to the Stated Maturity thereof at such time and on such terms as provided for in such Securities.  If a Series of Securities is redeemable and the Company 

 

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wants or is obligated to redeem prior to the Stated Maturity thereof all or part of the Series of Securities pursuant to the terms of such Securities, it shall notify the Trustee in writing of the redemption date and the principal amount of Series of Securities to be redeemed.  The Company shall give the notice at least 15 days before the redemption date, unless a shorter period is satisfactory to the Trustee.

 

Section 3.2.                                 Selection of Securities to be Redeemed.

 

Unless otherwise indicated for a particular Series by a Board Resolution, a supplemental indenture hereto or an Officer’s Certificate, if less than all the Securities of a Series are to be redeemed, the Trustee shall select the Securities of the Series to be redeemed in any manner that the Trustee deems fair and appropriate, including by lot or other method, unless otherwise required by law or applicable stock exchange requirements, subject, in the case of Global Securities, to the applicable rules and procedures of the Depositary.  The Trustee shall make the selection from Securities of the Series outstanding not previously called for redemption.  The Trustee may select for redemption portions of the principal of Securities of the Series that have denominations larger than $1,000.  Securities of the Series and portions of them it selects shall be in amounts of $1,000 or whole multiples of $1,000 or, with respect to Securities of any Series issuable in other denominations pursuant to Section 2.2.10, the minimum principal denomination for each Series and the authorized integral multiples thereof.  Provisions of this Indenture that apply to Securities of a Series called for redemption also apply to portions of Securities of that Series called for redemption.

 

Section 3.3.                                 Notice of Redemption.

 

Unless otherwise indicated for a particular Series by Board Resolution, a supplemental indenture hereto or an Officer’s Certificate, at least 15 days but not more than 60 days before a redemption date, the Company shall send or cause to be sent by first-class mail or electronically, in accordance with the procedures of the Depositary, a notice of redemption to each Holder whose Securities are to be redeemed.

 

The notice shall identify the Securities of the Series to be redeemed and shall state:

 

(a)                                 the redemption date;

 

(b)                                 the redemption price;

 

(c)                                  the name and address of the Paying Agent;

 

(d)                                 if any Securities are being redeemed in part, the portion of the principal amount of such Securities to be redeemed and that, after the redemption date and upon surrender of such Security, a new Security or Securities in principal amount equal to the unredeemed portion of the original Security shall be issued in the name of the Holder thereof upon cancellation of the original Security;

 

(e)                                  that Securities of the Series called for redemption must be surrendered to the Paying Agent to collect the redemption price;

 

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(f)                                   that interest on Securities of the Series called for redemption ceases to accrue on and after the redemption date, unless the Company defaults in the deposit of the redemption price;

 

(g)                                  the CUSIP number, if any; and

 

(h)                                 any other information as may be required by the terms of the particular Series or the Securities of a Series being redeemed.

 

At the Company’s request, the Trustee shall give the notice of redemption in the Company’s name and at its expense; provided, however, that the Company has delivered to the Trustee, at least 10 days (unless a shorter time shall be acceptable to the Trustee) prior to the notice date, an Officer’s Certificate requesting that the Trustee give such notice and setting forth the information to be stated in such notice.

 

Section 3.4.                                 Effect of Notice of Redemption.

 

Once notice of redemption is sent as provided in Section 3.3, Securities of a Series called for redemption become due and payable on the redemption date and at the redemption price.  Except as otherwise provided in the supplemental indenture, Board Resolution or Officer’s Certificate for a Series, a notice of redemption may not be conditional.  Upon surrender to the Paying Agent, such Securities shall be paid at the redemption price plus accrued interest to the redemption date.

 

Section 3.5.                                 Deposit of Redemption Price.

 

On or before 11:00 a.m., New York City time, on the redemption date, the Company shall deposit with the Paying Agent money sufficient to pay the redemption price of and accrued interest, if any, on all Securities to be redeemed on that date.

 

Section 3.6.                                 Securities Redeemed in Part.

 

Upon surrender of a Security that is redeemed in part, the Trustee shall authenticate for the Holder a new Security of the same Series and the same maturity equal in principal amount to the unredeemed portion of the Security surrendered.

 

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ARTICLE IV.
 COVENANTS

 

Section 4.1.                                 Payment of Principal and Interest.

 

The Company covenants and agrees for the benefit of the Holders of each Series of Securities that it will duly and punctually pay the principal of and interest, if any, on the Securities of that Series in accordance with the terms of such Securities and this Indenture.  On or before 11:00 a.m., New York City time, on the applicable payment date, the Company shall deposit with the Paying Agent money sufficient to pay the principal of and interest, if any, on the Securities of each Series in accordance with the terms of such Securities and this Indenture.

 

Section 4.2.                                 SEC Reports.

 

To the extent any Securities of a Series are outstanding, the Company shall deliver to the Trustee within 15 days after it files them with the SEC copies of the annual reports and of the information, documents, and other reports (or copies of such portions of any of the foregoing as the SEC may by rules and regulations prescribe) which the Company is required to file with the SEC pursuant to Section 13 or 15(d) of the Exchange Act.  The Company also shall comply with the other provisions of TIA § 314(a). Reports, information and documents filed with the SEC via the EDGAR system will be deemed to be delivered to the Trustee as of the time of such filing via EDGAR for purposes of this Section 4.2.

 

Delivery of reports, information and documents to the Trustee under this Section 4.2 are for informational purposes only and the Trustee’s receipt of the foregoing shall not constitute constructive or actual notice of any information contained therein or determinable from information contained therein, including the Company’s compliance with any of their covenants hereunder (as to which the Trustee is entitled to rely exclusively on the Officer’s Certificates).

 

Section 4.3.                                 Compliance Certificate.

 

To the extent any Securities of a Series are outstanding, the Company shall deliver to the Trustee, within 120 days after the end of each fiscal year of the Company, an Officer’s Certificate stating that a review of the activities of the Company and its Subsidiaries during the preceding fiscal year has been made under the supervision of the signing Officers with a view to determining whether the Company has kept, observed, performed and fulfilled its obligations under this Indenture, and further stating, as to each such Officer signing such certificate, that to the best of his/her knowledge the Company has kept, observed, performed and fulfilled each and every covenant contained in this Indenture and is not in default in the performance or observance of any of the terms, provisions and conditions hereof (or, if a Default or Event of Default shall have occurred, describing all such Defaults or Events of Default of which the Officer may have knowledge).

 

The Company will, so long as any of the Securities are outstanding, deliver to the Trustee, promptly upon becoming aware of any Default or Event of Default, an Officer’s Certificate specifying such Default or Event of Default and what action the Company is taking or proposes to take with respect thereto.

 

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Section 4.4.                                 Stay, Extension and Usury Laws.

 

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

 

ARTICLE V.
 SUCCESSORS

 

Section 5.1.                                 When Company May Merge, Etc.

 

The Company shall not consolidate with or merge with or into, or convey, transfer or lease all or substantially all of its properties and assets to, any person (a “successor person”) unless:

 

(a)                                 the Company is the surviving corporation or the successor person (if other than the Company) expressly assumes the Company’s obligations on the Securities and under this Indenture; and

 

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

 

The Company shall deliver to the Trustee prior to the consummation of the proposed transaction an Officer’s Certificate to the foregoing effect and an Opinion of Counsel stating that the proposed transaction and any supplemental indenture comply with this Indenture.

 

Notwithstanding the above, any Subsidiary of the Company may consolidate with, merge into or transfer all or part of its properties to the Company. Neither an Officer’s Certificate nor an Opinion of Counsel shall be required to be delivered in connection therewith.

 

Section 5.2.                                 Successor Corporation Substituted.

 

Upon any consolidation or merger, or any sale, lease, conveyance or other disposition of all or substantially all of the assets of the Company in accordance with Section 5.1, the successor corporation formed by such consolidation or into or with which the Company is merged or to which such sale, lease, conveyance or other disposition is made shall succeed to, and be substituted for, and may exercise every right and power of, the Company under this Indenture with the same effect as if such successor person has been named as the Company herein; provided, however, that the predecessor Company in the case of a sale, conveyance or other disposition (other than a lease) shall be released from all obligations and covenants under this Indenture and the Securities.

 

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ARTICLE VI.
 DEFAULTS AND REMEDIES

 

Section 6.1.                                 Events of Default.

 

“Event of Default,” wherever used herein with respect to Securities of any Series, means any one of the following events, unless in the establishing Board Resolution, supplemental indenture or Officer’s Certificate, it is provided that such Series shall not have the benefit of said Event of Default:

 

(a)                                 default in the payment of any interest on any Security of that Series when it becomes due and payable, and continuance of such default for a period of 30 days (unless the entire amount of such payment is deposited by the Company with the Trustee or with a Paying Agent prior to 11:00a.m., New York City time, on the 30th day of such period); or

 

(b)                                 default in the payment of principal of any Security of that Series at its Maturity; or

 

(c)                                  default in the performance or breach of any covenant or warranty of the Company in this Indenture (other than defaults pursuant to paragraphs (a) or (b) above or pursuant to a covenant or warranty that has been included in this Indenture solely for the benefit of Series of Securities other than that Series), which default continues uncured for a period of 60 days after there has been given, by registered or certified mail, to the Company by the Trustee or to the Company and the Trustee by the Holders of at least 25% in principal amount of the outstanding Securities of that Series a written notice specifying such default or breach and requiring it to be remedied and stating that such notice is a “Notice of Default” hereunder; or

 

(d)                                 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;

 

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

 

(v)                                 generally is unable to pay its debts as the same become due; or

 

(e)                                  a court of competent jurisdiction enters an order or decree under any Bankruptcy Law that:

 

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

 

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(ii)                                  appoints a Custodian of the Company or 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 60 days; or

 

(f)                                   any other Event of Default provided with respect to Securities of that Series, which is specified in a Board Resolution, a supplemental indenture hereto or an Officer’s Certificate, in accordance with Section 2.2.18.

 

The term “Bankruptcy Law” means title 11, U.S. Code or any similar Federal or State law for the relief of debtors.  The term “Custodian” means any receiver, trustee, assignee, liquidator or similar official under any Bankruptcy Law.

 

Section 6.2.                                 Acceleration of Maturity; Rescission and Annulment.

 

If an Event of Default with respect to Securities of any Series at the time outstanding occurs and is continuing (other than an Event of Default referred to in Section 6.1(d) or (e)) then in every such case the Trustee or the Holders of not less than 25% in principal amount of the outstanding Securities of that Series may declare the principal amount (or, if any Securities of that Series are Discount Securities, such portion of the principal amount as may be specified in the terms of such Securities) of and accrued and unpaid interest, if any, on all of the Securities of that Series to be due and payable immediately, by a notice in writing to the Company (and to the Trustee if given by Holders), and upon any such declaration such principal amount (or specified amount) and accrued and unpaid interest, if any, shall become immediately due and payable.  If an Event of Default specified in Section 6.1(d) or (e) shall occur, the principal amount (or specified amount) of and accrued and unpaid interest, if any, on all outstanding Securities shall ipso facto become and be immediately due and payable without any declaration or other act on the part of the Trustee or any Holder.

 

At any time after such a declaration of acceleration with respect to any Series has been made and before a judgment or decree for payment of the money due has been obtained by the Trustee as hereinafter in this Article provided, the Holders of a majority in principal amount of the outstanding Securities of that Series, by written notice to the Company and the Trustee, may rescind and annul such declaration and its consequences if all Events of Default with respect to Securities of that Series, other than the non-payment of the principal and interest, if any, of Securities of that Series which have become due solely by such declaration of acceleration, have been cured or waived as provided in Section 6.13.

 

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

 

Section 6.3.                                 Collection of Indebtedness and Suits for Enforcement by Trustee.

 

The Company covenants that if

 

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

 

(b)                                 default is made in the payment of principal of any Security at the Maturity thereof, or

 

(c)                                  default is made in the deposit of any sinking fund payment, if any, when and as due by the terms of a Security,

 

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

 

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

 

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

 

Section 6.4.                                 Trustee May File Proofs of Claim.

 

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

 

(a)                                 to file and prove a claim for the whole amount of principal and interest owing and unpaid in respect of the Securities and to file such other papers or documents as may be necessary or advisable in order to have the claims of the Trustee (including any 

 

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claim for the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and counsel) and of the Holders allowed in such judicial proceeding, and

 

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

 

and any custodian, receiver, assignee, trustee, liquidator, sequestrator or other similar official in any such judicial proceeding is hereby authorized by each Holder to make such payments to the Trustee and, in the event that the Trustee shall consent to the making of such payments directly to the Holders, to pay to the Trustee any amount due it for the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and counsel, and any other amounts due the Trustee under Section 7.7.

 

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

 

Section 6.5.                                 Trustee May Enforce Claims Without Possession of Securities.

 

All rights of action and claims under this Indenture or the Securities may be prosecuted and enforced by the Trustee without the possession of any of the Securities or the production thereof in any proceeding relating thereto, and any such proceeding instituted by the Trustee shall be brought in its own name as trustee of an express trust, and any recovery of judgment shall, after provision for the payment of the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and counsel, be for the ratable benefit of the Holders of the Securities in respect of which such judgment has been recovered.

 

Section 6.6.                                 Application of Money Collected.

 

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

 

First:                                                                     To the payment of all amounts due the Trustee under Section 7.7; and

 

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

 

Third:                                                               To the Company.

 

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Section 6.7.                                 Limitation on Suits.

 

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

 

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

 

(b)                                 the Holders of not less than 25% in principal amount of the outstanding Securities of that Series shall have made written request to the Trustee to institute proceedings in respect of such Event of Default in its own name as Trustee hereunder;

 

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

 

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

 

(e)                                  no direction inconsistent with such written request has been given to the Trustee during such 60-day period by the Holders of a majority in principal amount of the outstanding Securities of that Series;

 

it being understood, intended and expressly covenanted by the Holder of every Security with every other Holder and the Trustee that no one or more of such Holders shall have any right in any manner whatever by virtue of, or by availing of, any provision of this Indenture to affect, disturb or prejudice the rights of any other of such Holders, or to obtain or to seek to obtain priority or preference over any other of such Holders or to enforce any right under this Indenture, except in the manner herein provided and for the equal and ratable benefit of all such Holders of the applicable Series.

 

Section 6.8.                                 Unconditional Right of Holders to Receive Principal and Interest.

 

Notwithstanding any other provision in this Indenture, the Holder of any Security shall have the right, which is absolute and unconditional, to receive payment of the principal of and interest, if any, on such Security on the Maturity of such Security, including the Stated Maturity expressed in such Security (or, in the case of redemption, on the redemption date) and to institute suit for the enforcement of any such payment, and such rights shall not be impaired without the consent of such Holder.

 

Section 6.9.                                 Restoration of Rights and Remedies.

 

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

 

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Section 6.10.                          Rights and Remedies Cumulative.

 

Except as otherwise provided with respect to the replacement or payment of mutilated, destroyed, lost or stolen Securities in Section 2.8, no right or remedy herein conferred upon or reserved to the Trustee or to the Holders is intended to be exclusive of any other right or remedy, and every right and remedy shall, to the extent permitted by law, be cumulative and in addition to every other right and remedy given hereunder or now or hereafter existing at law or in equity or otherwise.  The assertion or employment of any right or remedy hereunder, or otherwise, shall not, to the extent permitted by law, prevent the concurrent assertion or employment of any other appropriate right or remedy.

 

Section 6.11.                          Delay or Omission Not Waiver.

 

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

 

Section 6.12.                          Control by Holders.

 

The Holders of a majority in principal amount of the outstanding Securities of any Series shall have the right to direct the time, method and place of conducting any proceeding for any remedy available to the Trustee, or exercising any trust or power conferred on the Trustee, with respect to the Securities of such Series, provided that:

 

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

 

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

 

(c)                                  subject to the provisions of Section 6.1, the Trustee shall have the right to decline to follow any such direction if the Trustee in good faith shall, by a Responsible Officer of the Trustee, determine that the proceeding so directed would involve the Trustee in personal liability; and

 

(d)                                 prior to taking any action as directed under this Section 6.12, the Trustee shall be entitled to indemnity satisfactory to it against the costs, expenses and liabilities which might be incurred by it in compliance with such a request or direction.

 

Section 6.13.                          Waiver of Past Defaults.

 

The Holders of not less than a majority in principal amount of the outstanding Securities of any Series may on behalf of the Holders of all the Securities of such Series waive any past Default hereunder with respect to such Series and its consequences, except a Default in the payment of the principal of or interest on any Security of such Series (provided, however, 

 

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that the Holders of a majority in principal amount of the outstanding Securities of any Series may rescind an acceleration and its consequences, including any related payment default that resulted from such acceleration).  Upon any such waiver, such Default shall cease to exist, and any Event of Default arising therefrom shall be deemed to have been cured, for every purpose of this Indenture; but no such waiver shall extend to any subsequent or other Default or impair any right consequent thereon.

 

Section 6.14.                          Undertaking for Costs.

 

All parties to this Indenture agree, and each Holder of any Security by his acceptance thereof shall be deemed to have agreed, that any court may in its discretion require, in any suit for the enforcement of any right or remedy under this Indenture, or in any suit against the Trustee for any action taken, suffered 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 Company, to any suit instituted by the Trustee, to any suit instituted by any Holder, or group of Holders, holding in the aggregate more than 10% in principal amount of the outstanding Securities of any Series, or to any suit instituted by any Holder for the enforcement of the payment of the principal of or interest on any Security on or after the Maturity of such Security, including the Stated Maturity expressed in such Security (or, in the case of redemption, on the redemption date).

 

ARTICLE VII.
 TRUSTEE

 

Section 7.1.                                 Duties of Trustee.

 

(a)                                 If an Event of Default has occurred and is continuing, the Trustee shall exercise 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 such person’s own affairs.

 

(b)                                 Except during the continuance of an Event of Default:

 

(i)                                     The Trustee need perform only those duties that are specifically set forth in this Indenture and no others; and

 

(ii)                                  In the absence of bad faith on its part, the Trustee may conclusively rely, as to the truth of the statements and the correctness of the opinions expressed therein, upon Officer’s Certificates or Opinions of Counsel furnished to the Trustee and conforming to the requirements of this Indenture; however, in the case of any such Officer’s Certificates or Opinions of Counsel which by any provisions hereof are specifically required to be furnished to the Trustee, the Trustee shall examine such Officer’s Certificates and Opinions of Counsel to determine whether or not they conform to the form requirements of this Indenture.

 

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(c)                                  The Trustee may not be relieved from liability for its own negligent action, its own negligent failure to act or its own willful misconduct, except that:

 

(i)                                     This paragraph does not limit the effect of paragraph (b) of this Section;

 

(ii)                                  The Trustee shall not be liable for any error of judgment made in good faith by a Responsible Officer; unless it is proved that the Trustee was negligent in ascertaining the pertinent facts; and

 

(iii)                               The Trustee shall not be liable with respect to any action taken, suffered or omitted to be taken by it with respect to Securities of any Series in good faith in accordance with the direction of the Holders of a majority in principal amount of the outstanding Securities of such Series 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 such Series in accordance with Section 6.12.

 

(d)                                 Every provision of this Indenture that in any way relates to the Trustee is subject to paragraph (a), (b) and (c) of this Section.

 

(e)                                  The Trustee may refuse to perform any duty or exercise any right or power unless it receives indemnity satisfactory to it against the costs, expenses and liabilities which might be incurred by it in performing such duty or exercising such right or power.

 

(f)                                   The Trustee shall not be liable for interest on any money received by it except as the Trustee may agree in writing with the Company.  Money held in trust by the Trustee need not be segregated from other funds except to the extent required by law.

 

(g)                                  No provision of this Indenture shall require the Trustee to risk its own funds or otherwise incur any financial liability in the performance of any of its duties, or in the exercise of any of its rights or powers, if adequate indemnity against such risk is not assured to the Trustee in its satisfaction.

 

(h)                                 The Paying Agent, the Registrar and any authenticating agent shall be entitled to the protections and immunities as are set forth in paragraphs (e), (f) and (g) of this Section and in Section 7.2, each with respect to the Trustee.

 

Section 7.2.                                 Rights of Trustee.

 

(a)                                 The Trustee may rely on and shall be protected in acting or refraining from acting upon any document (whether in original or facsimile form) believed by it to be genuine and to have been signed or presented by the proper person.  The Trustee need not investigate any fact or matter stated in the document.

 

(b)                                 Before the Trustee acts or refrains from acting, it may require an Officer’s Certificate or an Opinion of Counsel or both.  The Trustee shall not be liable for any 

 

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action it takes or omits to take in good faith in reliance on such Officer’s Certificate or Opinion of Counsel.

 

(c)                                  The Trustee may act through agents and shall not be responsible for the misconduct or negligence of any agent appointed with due care.  No Depositary shall be deemed an agent of the Trustee and the Trustee shall not be responsible for any act or omission by any Depositary.

 

(d)                                 The Trustee shall not be liable for any action it takes or omits to take in good faith which it believes to be authorized or within its rights or powers, provided that the Trustee’s conduct does not constitute willful misconduct or negligence.

 

(e)                                  The Trustee may consult with counsel and the advice of such counsel or any Opinion of Counsel shall be full and complete authorization and protection in respect of any action taken, suffered or omitted by it hereunder without willful misconduct or negligence, and in reliance thereon.

 

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

 

(g)                                  The Trustee shall not be bound to make any investigation into the facts or matters stated in any resolution, certificate, statement, instrument, opinion, report, notice, request, direction, consent, order, bond, debenture, note, other evidence of indebtedness or other paper or document, but the Trustee, in its discretion, may make such further inquiry or investigation into such facts or matters as it may see fit.

 

(h)                                 The Trustee shall not be deemed to have notice of any Default or Event of Default unless a Responsible Officer of the Trustee has actual knowledge thereof or unless written notice of any event which is in fact such a default is received by the Trustee at the Corporate Trust Office of the Trustee, and such notice references the Securities generally or the Securities of a particular Series and this Indenture.

 

(i)                                     The permissive right of the Trustee to take the actions permitted by this Indenture shall not be construed as an obligation or duty to do so.

 

Section 7.3.                                 Individual Rights of Trustee.

 

The Trustee in its individual or any other capacity may become the owner or pledgee of Securities and may otherwise deal with the Company or an Affiliate of the Company with the same rights it would have if it were not Trustee.  Any Agent may do the same with like rights.  The Trustee is also subject to Sections 7.10 and 7.11.

 

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Section 7.4.                                 Trustee’s Disclaimer.

 

The Trustee makes no representation as to the validity or adequacy of this Indenture or the Securities, it shall not be accountable for the Company’s use of the proceeds from the Securities, and it shall not be responsible for any statement in the Securities other than its authentication.

 

Section 7.5.                                 Notice of Defaults.

 

If a Default or Event of Default occurs and is continuing with respect to the Securities of any Series and if it is known to a Responsible Officer of the Trustee, the Trustee shall mail to each Securityholder of the Securities of that Series notice of a Default or Event of Default within 90 days after it occurs or, if later, after a Responsible Officer of the Trustee has knowledge of such Default or Event of Default.  Except in the case of a Default or Event of Default in payment of principal of or interest on any Security of any Series, the Trustee may withhold the notice if and so long as its corporate trust committee or a committee of its Responsible Officers in good faith determines that withholding the notice is in the interests of Securityholders of that Series.

 

Section 7.6.                                 Reports by Trustee to Holders.

 

Within 60 days after each anniversary of the date of this Indenture, the Trustee shall transmit by mail to all Securityholders, as their names and addresses appear on the register kept by the Registrar, a brief report dated as of such anniversary date, in accordance with, and to the extent required under, TIA § 313.

 

A copy of each report at the time of its mailing to Securityholders of any Series shall be filed with the SEC and each national securities exchange on which the Securities of that Series are listed.  The Company shall promptly notify the Trustee in writing when Securities of any Series are listed on any national securities exchange.

 

Section 7.7.                                 Compensation and Indemnity.

 

The Company shall pay to the Trustee from time to time compensation for its services as the Company and the Trustee shall from time to time agree upon in writing.  The Trustee’s compensation shall not be limited by any law on compensation of a trustee of an express trust.  The Company shall reimburse the Trustee upon request for all reasonable out of pocket expenses incurred by it.  Such expenses shall include the reasonable compensation and expenses of the Trustee’s agents and counsel.

 

The Company shall indemnify each of the Trustee and any predecessor Trustee (including the cost of defending itself) against any cost, expense or liability, including taxes (other than taxes based upon, measured by or determined by the income of the Trustee) incurred by it except as set forth in the next paragraph in the performance of its duties under this Indenture as Trustee or Agent.  The Trustee shall notify the Company promptly of any claim for which it may seek indemnity.  The Company shall defend the claim and the Trustee shall cooperate in the defense.  The Trustee may have one separate counsel and the Company shall pay the reasonable fees and expenses of such counsel.  The Company need not pay for any settlement made without its consent, which consent shall not be unreasonably withheld.  This 

 

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indemnification shall apply to officers, directors, employees, shareholders and agents of the Trustee.

 

The Company need not reimburse any expense or indemnify against any loss or liability incurred by the Trustee or by any officer, director, employee, shareholder or agent of the Trustee through willful misconduct or negligence.

 

To secure the Company’s payment obligations in this Section, the Trustee shall have a lien prior to the Securities of any Series on all money or property held or collected by the Trustee, except that held in trust to pay principal of and interest on particular Securities of that Series.

 

When the Trustee incurs expenses or renders services after an Event of Default specified in Section 6.1(d) or (e) occurs, the expenses and the compensation for the services are intended to constitute expenses of administration under any Bankruptcy Law.

 

The provisions of this Section shall survive the termination of this Indenture.

 

Section 7.8.                                 Replacement of Trustee.

 

A resignation or removal of the Trustee and appointment of a successor Trustee shall become effective only upon the successor Trustee’s acceptance of appointment as provided in this Section.

 

The Trustee may resign with respect to the Securities of one or more Series by so notifying the Company at least 30 days prior to the date of the proposed resignation.  The Holders of a majority in principal amount of the Securities of any Series may remove the Trustee with respect to that Series by so notifying the Trustee and the Company.  The Company may remove the Trustee with respect to Securities of one or more Series if:

 

(a)                                 the Trustee fails to comply with Section 7.10;

 

(b)                                 the Trustee is adjudged a bankrupt or an insolvent or an order for relief is entered with respect to the Trustee under any Bankruptcy Law;

 

(c)                                  a Custodian or public officer takes charge of the Trustee or its property; or

 

(d)                                 the Trustee becomes incapable of acting.

 

If the Trustee resigns or is removed or if a vacancy exists in the office of Trustee for any reason, the Company shall promptly appoint a successor Trustee.  Within one year after the successor Trustee takes office, the Holders of a majority in principal amount of the then outstanding Securities may appoint a successor Trustee to replace the successor Trustee appointed by the Company.

 

If a successor Trustee with respect to the Securities of any one or more Series does not take office within 60 days after the retiring Trustee resigns or is removed, the retiring Trustee, the Company or the Holders of at least a majority in principal amount of the Securities 

 

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of the applicable Series may petition any court of competent jurisdiction for the appointment of a successor Trustee.

 

A successor Trustee shall deliver a written acceptance of its appointment to the retiring Trustee and to the Company.  Immediately after that, the retiring Trustee shall transfer all property held by it as Trustee to the successor Trustee subject to the lien provided for in Section 7.7, the resignation or removal of the retiring Trustee shall become effective, and the successor Trustee shall have all the rights, powers and duties of the Trustee with respect to each Series of Securities for which it is acting as Trustee under this Indenture.  A successor Trustee shall mail a notice of its succession to each Securityholder of each such Series.  Notwithstanding replacement of the Trustee pursuant to this Section 7.8, the Company’s obligations under Section 7.7 hereof shall continue for the benefit of the retiring Trustee with respect to expenses and liabilities incurred by it for actions taken or omitted to be taken in accordance with its rights, powers, and duties under this Indenture prior to such replacement.

 

Section 7.9.                                 Successor Trustee by Merger, Etc.

 

If the Trustee consolidates with, merges or converts into, or transfers all or substantially all of its corporate trust business to, another corporation, the successor corporation without any further act shall be the successor Trustee, subject to Section 7.10.

 

Section 7.10.                          Eligibility; Disqualification.

 

This Indenture shall always have a Trustee who satisfies the requirements of TIA § 310(a)(1), (2) and (5).  The Trustee shall always have a combined capital and surplus of at least $25,000,000 as set forth in its most recent published annual report of condition.  The Trustee shall comply with TIA § 310(b).

 

Section 7.11.                          Preferential Collection of Claims Against Company.

 

The Trustee is subject to TIA § 311(a), excluding any creditor relationship listed in TIA § 311(b).  A Trustee who has resigned or been removed shall be subject to TIA § 311(a) to the extent indicated.

 

ARTICLE VIII.
 SATISFACTION AND DISCHARGE; DEFEASANCE

 

Section 8.1.                                 Satisfaction and Discharge of Indenture.

 

This Indenture shall upon Company Order cease to be of further effect (except as hereinafter provided in this Section 8.1), and the Trustee, at the expense of the Company, shall execute proper instruments acknowledging satisfaction and discharge of this Indenture, when

 

(a)                                 either

 

(i)                                     all Securities theretofore authenticated and delivered (other than Securities that have been destroyed, lost or stolen and that have been replaced or paid) have been delivered to the Trustee for cancellation; or

 

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

 

(1)                                 have become due and payable, or

 

(2)                                 will become due and payable at their Stated Maturity within one year, or

 

(3)                                 have been called for redemption or are to be called for redemption within one year under arrangements satisfactory to the Trustee for the giving of notice of redemption by the Trustee in the name, and at the expense, of the Company, or

 

(4)                                 are deemed paid and discharged pursuant to Section 8.3, as applicable;

 

and the Company, in the case of (1), (2) or (3) above, has irrevocably deposited or caused to be deposited with the Trustee as trust funds in trust an amount of money or U.S. Government Obligations sufficient for the purpose of paying and discharging the entire indebtedness on such Securities not theretofore delivered to the Trustee for cancellation, for principal and interest to the date of such deposit (in the case of Securities which have become due and payable on or prior to the date of such deposit) or to the Stated Maturity or redemption date, as the case may be;

 

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

 

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

 

Notwithstanding the satisfaction and discharge of this Indenture, the obligations of the Company to the Trustee under Section 7.7, and, if money shall have been deposited with the Trustee pursuant to clause (a) of this Section, the provisions of Sections 2.4, 2.7, 2.8, 8.2 and 8.5 shall survive.

 

Section 8.2.                                 Application of Trust Funds; Indemnification.

 

(a)                                 Subject to the provisions of Section 8.5, all money or U.S. Government Obligations deposited with the Trustee pursuant to Section 8.1, all money and U.S. Government Obligations or Foreign Government Obligations deposited with the Trustee pursuant to Section 8.3 or 8.4 and all money received by the Trustee in respect of U.S. Government Obligations or Foreign Government Obligations deposited with the Trustee pursuant to Section 8.3 or 8.4, shall be held in trust and applied by it, in accordance with the provisions of the Securities and this Indenture, to the payment, either directly or through any Paying Agent (including the Company acting as its own Paying Agent) as the Trustee may determine, to the persons entitled thereto, of the principal and interest for whose payment such money has been deposited with or received by the Trustee or to 

 

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make mandatory sinking fund payments or analogous payments as contemplated by Sections 8.3 or 8.4.

 

(b)                                 The Company shall pay and shall indemnify the Trustee against any tax, fee or other charge imposed on or assessed against U.S. Government Obligations or Foreign Government Obligations deposited pursuant to Sections 8.3 or 8.4 or the interest and principal received in respect of such obligations other than any payable by or on behalf of Holders.

 

(c)                                  The Trustee shall deliver or pay to the Company from time to time upon Company Order any U.S. Government Obligations or Foreign Government Obligations or money held by it as provided in Sections 8.3 or 8.4 which, in the opinion of a nationally recognized firm of independent certified public accountants or investment bank expressed in a written certification thereof delivered to the Trustee, are then in excess of the amount thereof which then would have been required to be deposited for the purpose for which such U.S. Government Obligations or Foreign Government Obligations or money were deposited or received.  This provision shall not authorize the sale by the Trustee of any U.S. Government Obligations or Foreign Government Obligations held under this Indenture.

 

Section 8.3.                                 Legal Defeasance of Securities of any Series.

 

Unless this Section 8.3 is otherwise specified, pursuant to Section 2.2.20, to be inapplicable to Securities of any Series, the Company shall be deemed to have paid and discharged the entire indebtedness on all the outstanding Securities of any Series on the 91st day after the date of the deposit referred to in subparagraph (d) hereof, and the provisions of this Indenture, as it relates to such outstanding Securities of such Series, shall no longer be in effect (and the Trustee, at the expense of the Company, shall, upon receipt of a Company Order, execute instruments acknowledging the same), except as to:

 

(a)                                 the rights of Holders of Securities of such Series to receive, from the trust funds described in subparagraph (d) hereof, (i) payment of the principal of and each installment of principal of and interest on the outstanding Securities of such Series on the Maturity of such principal or installment of principal or interest and (ii) the benefit of any mandatory sinking fund payments applicable to the Securities of such Series on the day on which such payments are due and payable in accordance with the terms of this Indenture and the Securities of such Series;

 

(b)                                 the provisions of Sections 2.4, 2.7, 2.8, 8.2, 8.3 and 8.5; and

 

(c)                                  the rights, powers, trusts and immunities of the Trustee hereunder and the Company’s obligations in connection therewith;

 

provided that, the following conditions shall have been satisfied:

 

(d)                                 the Company shall have deposited or caused to be irrevocably deposited (except as provided in Section 8.2(c)) with the Trustee as trust funds in trust for the purpose of making the following payments, specifically pledged as security for and 

 

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dedicated solely to the benefit of the Holders of such Securities (i) in the case of Securities of such Series denominated in Dollars, cash in Dollars and/or U.S. Government Obligations, or (ii) in the case of Securities of such Series denominated in a Foreign Currency (other than a composite currency), money and/or Foreign Government Obligations, which through the payment of interest and principal in respect thereof in accordance with their terms, will provide (and without reinvestment and assuming no tax liability will be imposed on such Trustee), not later than one day before the due date of any payment of money, an amount in cash, sufficient, in the opinion of a nationally recognized firm of independent public accountants or investment bank expressed in a written certification thereof delivered to the Trustee, to pay and discharge each installment of principal of and interest, if any, on and any mandatory sinking fund payments in respect of all the Securities of such Series on the dates such installments of principal or interest and such sinking fund payments are due;

 

(e)                                  such deposit will not result in a breach or violation of, or constitute a default under, this Indenture or any other agreement or instrument to which the Company is a party or by which it is bound;

 

(f)                                   no Default or Event of Default with respect to the Securities of such Series shall have occurred and be continuing on the date of such deposit or during the period ending on the 91st day after such date;

 

(g)                                  the Company shall have delivered to the Trustee an Officer’s Certificate and an Opinion of Counsel to the effect that (i) the Company has received from, or there has been published by, the Internal Revenue Service a ruling, or (ii) since the date of execution of this Indenture, there has been a change in the applicable Federal income tax law, in either case to the effect that, and based thereon such Opinion of Counsel shall confirm that, the Holders of the Securities of such Series will not recognize income, gain or loss for Federal income tax purposes as a result of such deposit, defeasance and discharge and will be subject to Federal income tax on the same amount and in the same manner and at the same times as would have been the case if such deposit, defeasance and discharge had not occurred;

 

(h)                                 the Company shall have delivered to the Trustee an Officer’s Certificate stating that the deposit was not made by the Company with the intent of defeating, hindering, delaying or defrauding any other creditors of the Company; and

 

(i)                                     the Company shall have delivered to the Trustee an Officer’s Certificate and an Opinion of Counsel, each stating that all conditions precedent provided for relating to the defeasance contemplated by this Section have been complied with.

 

Section 8.4.                                 Covenant Defeasance.

 

Unless this Section 8.4 is otherwise specified pursuant to Section 2.2.20 to be inapplicable to Securities of any Series, the Company may omit to comply with respect to the Securities of any Series with any term, provision or condition set forth under Sections 4.2, 4.3, 4.4, 4.5, and 5.1 as well as any additional covenants specified in a supplemental indenture for 

 

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such Series of Securities or a Board Resolution or an Officer’s Certificate delivered pursuant to Section 2.2.20 (and the failure to comply with any such covenants shall not constitute a Default or Event of Default with respect to such Series under Section 6.1) and the occurrence of any event specified in a supplemental indenture for such Series of Securities or a Board Resolution or an Officer’s Certificate delivered pursuant to Section 2.2.18 and designated as an Event of Default shall not constitute a Default or Event of Default hereunder, with respect to the Securities of such Series, provided that the following conditions shall have been satisfied:

 

(a)                                 With reference to this Section 8.4, the Company has deposited or caused to be irrevocably deposited (except as provided in Section 8.2(c)) with the Trustee as trust funds in trust for the purpose of making the following payments specifically pledged as security for, and dedicated solely to, the benefit of the Holders of such Securities (i) in the case of Securities of such Series denominated in Dollars, cash in Dollars and/or U.S. Government Obligations, or (ii) in the case of Securities of such Series denominated in a Foreign Currency (other than a composite currency), money and/or Foreign Government Obligations, which through the payment of interest and principal in respect thereof in accordance with their terms, will provide (and without reinvestment and assuming no tax liability will be imposed on such Trustee), not later than one day before the due date of any payment of money, an amount in cash, sufficient, in the opinion of a nationally recognized firm of independent certified public accountants or investment bank expressed in a written certification thereof delivered to the Trustee, to pay and discharge each installment of principal of and interest, if any, on and any mandatory sinking fund payments in respect of the Securities of such Series on the dates such installments of interest or principal and such sinking fund payments are due;

 

(b)                                 Such deposit will not result in a breach or violation of, or constitute a default under, this Indenture or any other agreement or instrument to which the Company is a party or by which it is bound;

 

(c)                                  No Default or Event of Default with respect to the Securities of such Series shall have occurred and be continuing on the date of such deposit;

 

(d)                                 The Company shall have delivered to the Trustee an Opinion of Counsel to the effect that Holders of the Securities of such Series will not recognize income, gain or loss for federal income tax purposes as a result of such deposit and covenant defeasance and will be subject to federal income tax on the same amounts, in the same manner and at the same times as would have been the case if such deposit and covenant defeasance had not occurred;

 

(e)                                  The Company shall have delivered to the Trustee an Officer’s Certificate stating the deposit was not made by the Company with the intent of defeating, hindering, delaying or defrauding any other creditors of the Company; and

 

(f)                                   The Company shall have delivered to the Trustee an Officer’s Certificate and an Opinion of Counsel, each stating that all conditions precedent herein provided for relating to the covenant defeasance contemplated by this Section have been complied with.

 

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Section 8.5.                                 Repayment to Company.

 

Subject to applicable abandoned property law, the Trustee and the Paying Agent shall pay to the Company upon request any money held by them for the payment of principal and interest that remains unclaimed for two years.  After that, Securityholders entitled to the money must look to the Company for payment as general creditors unless an applicable abandoned property law designates another person.

 

Section 8.6.                                 Reinstatement.

 

If the Trustee or the Paying Agent is unable to apply any money deposited with respect to Securities of any Series in accordance with Section 8.1 by reason of any legal proceeding or by reason of any order or judgment of any court or governmental authority enjoining, restraining or otherwise prohibiting such application, the obligations of the Company under this Indenture with respect to the Securities of such Series and under the Securities of such Series shall be revived and reinstated as though no deposit had occurred pursuant to Section 8.1 until such time as the Trustee or the Paying Agent is permitted to apply all such money in accordance with Section 8.1; provided, however, that if the Company has made any payment of principal of or interest on or any Additional Amounts with respect to any Securities because of the reinstatement of its obligations, the Company shall be subrogated to the rights of the Holders of such Securities to receive such payment from the money or U.S. Government Obligations held by the Trustee or Paying Agent.

 

ARTICLE IX.
 AMENDMENTS AND WAIVERS

 

Section 9.1.                                 Without Consent of Holders.

 

The Company and the Trustee may amend or supplement this Indenture or the Securities of one or more Series without the consent of any Securityholder:

 

(a)                                 to cure any ambiguity, defect or inconsistency;

 

(b)                                 to comply with Article V;

 

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

 

(d)                                 to add guarantees with respect to Securities of any Series or secure Securities of any Series;

 

(e)                                  to surrender any of the Company’s rights or powers under this Indenture;

 

(f)                                   to add covenants or events of default for the benefit of the holders of Securities of any Series;

 

(g)                                  to comply with the applicable procedures of the applicable depositary;

 

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(h)                                 to make any change that does not adversely affect the rights of any Securityholder;

 

(i)                                     to provide for the issuance of and establish the form and terms and conditions of Securities of any Series as permitted by this Indenture;

 

(j)                                    to evidence and provide for the acceptance of appointment hereunder by a successor Trustee with respect to the Securities of one or more Series and to add to or change any of the provisions of this Indenture as shall be necessary to provide for or facilitate the administration of the trusts hereunder by more than one Trustee; or

 

(k)                                 to comply with requirements of the SEC in order to effect or maintain the qualification of this Indenture under the TIA.

 

Section 9.2.                                 With Consent of Holders.

 

The Company and the Trustee may enter into a supplemental indenture with the written consent of the Holders of at least a majority in principal amount of the outstanding Securities of each Series affected by such supplemental indenture (including consents obtained in connection with a tender offer or exchange offer for the Securities of such Series), for the purpose of adding any provisions to or changing in any manner or eliminating any of the provisions of this Indenture or of any supplemental indenture or of modifying in any manner the rights of the Securityholders of each such Series.  Except as provided in Section 6.13, the Holders of at least a majority in principal amount of the outstanding Securities of any Series by notice to the Trustee (including consents obtained in connection with a tender offer or exchange offer for the Securities of such Series) may waive compliance by the Company with any provision of this Indenture or the Securities with respect to such Series.

 

It shall not be necessary for the consent of the Holders of Securities under this Section 9.2 to approve the particular form of any proposed supplemental indenture or waiver, but it shall be sufficient if such consent approves the substance thereof.  After a supplemental indenture or waiver under this section becomes effective, the Company shall mail to the Holders of Securities affected thereby, a notice briefly describing the supplemental indenture or waiver.  Any failure by the Company to mail or publish such notice, or any defect therein, shall not, however, in any way impair or affect the validity of any such supplemental indenture or waiver.

 

Section 9.3.                                 Limitations.

 

Without the consent of each Securityholder affected, an amendment or waiver may not:

 

(a)                                 reduce the principal amount of Securities whose Holders must consent to an amendment, supplement or waiver;

 

(b)                                 reduce the rate of or extend the time for payment of interest (including default interest) on any Security;

 

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(c)                                  reduce the principal or change the Stated Maturity of any Security or reduce the amount of, or postpone the date fixed for, the payment of any sinking fund or analogous obligation;

 

(d)                                 reduce the principal amount of Discount Securities payable upon acceleration of the maturity thereof;

 

(e)                                  waive a Default or Event of Default in the payment of the principal of or interest, if any, on any Security (except a rescission of acceleration of the Securities of any Series by the Holders of at least a majority in principal amount of the outstanding Securities of such Series and a waiver of the payment default that resulted from such acceleration);

 

(f)                                   make the principal of or interest, if any, on any Security payable in any currency other than that stated in the Security;

 

(g)                                  make any change in Sections 6.8, 6.13 or 9.3 (this sentence); or

 

(h)                                 waive a redemption payment with respect to any Security, provided that such redemption is made at the Company’s option.

 

Section 9.4.                                 Compliance with Trust Indenture Act.

 

Every amendment to this Indenture or the Securities of one or more Series shall be set forth in a supplemental indenture hereto that complies with the TIA as then in effect.

 

Section 9.5.                                 Revocation and Effect of Consents.

 

Until an amendment is set forth in a supplemental indenture or a waiver becomes effective, a consent to it by a Holder of a Security is a continuing consent by the Holder and every subsequent Holder of a Security or portion of a Security that evidences the same debt as the consenting Holder’s Security, even if notation of the consent is not made on any Security.  However, any such Holder or subsequent Holder may revoke the consent as to his Security or portion of a Security if the Trustee receives the notice of revocation before the date of the supplemental indenture or the date the waiver becomes effective.

 

Any amendment or waiver once effective shall bind every Securityholder of each Series affected by such amendment or waiver unless it is of the type described in any of clauses (a) through (h) of Section 9.3.  In that case, the amendment or waiver shall bind each Holder of a Security who has consented to it and every subsequent Holder of a Security or portion of a Security that evidences the same debt as the consenting Holder’s Security.

 

The Company may, but shall not be obligated to, fix a record date for the purposes of determining the Holders entitled to give their consent or take any other action described above or required or permitted to be taken pursuant to this Indenture.  If a record date is fixed, then notwithstanding the immediately preceding paragraph, those Persons who were Holders at such record date (or their duly designated proxies), and only those Persons, shall be entitled to give such consent or to revoke any consent previously given or take any such action, 

 

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whether or not such Persons continue to be Holders after such record date.  No such consent shall be valid or effective for more than 120 days after such record date.

 

Section 9.6.                                 Notation on or Exchange of Securities.

 

The Company or the Trustee may place an appropriate notation about an amendment or waiver on any Security of any Series thereafter authenticated.  The Company in exchange for Securities of that Series may issue and the Trustee shall authenticate upon request new Securities of that Series that reflect the amendment or waiver.

 

Section 9.7.                                 Trustee Protected.

 

In executing, or accepting the additional trusts created by, any supplemental indenture permitted by this Article or the modifications thereby of the trusts created by this Indenture, the Trustee shall be entitled to receive, and (subject to Section 7.1) shall be fully protected in relying upon, an Officer’s Certificate or an Opinion of Counsel or both complying with Section 10.4.  The Trustee shall sign all supplemental indentures upon delivery of such an Officer’s Certificate or Opinion of Counsel or both, except that the Trustee need not sign any supplemental indenture that adversely affects its rights.

 

ARTICLE X.
 MISCELLANEOUS

 

Section 10.1.                          Trust Indenture Act Controls.

 

If any provision of this Indenture limits, qualifies, or conflicts with another provision which is required or deemed to be included in this Indenture by the TIA, such required or deemed provision shall control.

 

Section 10.2.                          Notices.

 

Any notice or communication by the Company or the Trustee to the other, or by a Holder to the Company or the Trustee, is duly given if in writing and delivered in person or mailed by first-class mail (registered or certified, return receipt requested), facsimile transmission, email or overnight air courier guaranteeing next day delivery, to the others’ address:

 

if to the Company:

 

Lannett Company, Inc.

9000 State Road

Philadelphia, Pennsylvania 19136

Attention: Chief Financial Officer

Telephone: (215) 333-9000

 

if to the Trustee:

 

[                         ]

 

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The Company or the Trustee by notice to the other may designate additional or different addresses for subsequent notices or communications.

 

Any notice or communication to a Securityholder shall be sent electronically or by first-class mail to his address shown on the register kept by the Registrar, in accordance with the procedures of the Depositary.  Failure to mail a notice or communication to a Securityholder of any Series or any defect in it shall not affect its sufficiency with respect to other Securityholders of that or any other Series.

 

If a notice or communication is sent or published in the manner provided above, within the time prescribed, it is duly given, whether or not the Securityholder receives it.

 

If the Company sends a notice or communication to Securityholders, it shall send a copy to the Trustee and each Agent at the same time.

 

Notwithstanding any other provision of this Indenture or any Security, where this Indenture or any Security provides for notice of any event (including any notice of redemption) to a Holder of a Global Security (whether by mail or otherwise), such notice shall be sufficiently given to the Depositary for such Security (or its designee) pursuant to the customary procedures of such Depositary.

 

Section 10.3.                          Communication by Holders with Other Holders.

 

Securityholders of any Series may communicate pursuant to TIA § 312(b) with other Securityholders of that Series or any other Series with respect to their rights under this Indenture or the Securities of that Series or all Series.  The Company, the Trustee, the Registrar and anyone else shall have the protection of TIA § 312(c).

 

Section 10.4.                          Certificate and Opinion as to Conditions Precedent.

 

Upon any request or application by the Company to the Trustee to take any action under this Indenture, the Company shall furnish to the Trustee:

 

(a)                                 an Officer’s Certificate stating that, in the opinion of the signers, all conditions precedent, if any, provided for in this Indenture relating to the proposed action have been complied with; and

 

(b)                                 an Opinion of Counsel stating that, in the opinion of such counsel, all such conditions precedent have been complied with.

 

Section 10.5.                          Statements Required in Certificate or Opinion.

 

Each certificate or opinion with respect to compliance with a condition or covenant provided for in this Indenture (other than a certificate provided pursuant to TIA § 314(a)(4)) shall comply with the provisions of TIA § 314(e) and shall include:

 

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(a)                                 a statement that the person making such certificate or opinion has read such covenant or condition;

 

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

 

(c)                                  a statement that, in the opinion of 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

 

(d)                                 a statement as to whether or not, in the opinion of such person, such condition or covenant has been complied with.

 

Section 10.6.                          Rules by Trustee and Agents.

 

The Trustee may make reasonable rules for action by or a meeting of Securityholders of one or more Series.  Any Agent may make reasonable rules and set reasonable requirements for its functions.

 

Section 10.7.                          Legal Holidays.

 

Unless otherwise provided by Board Resolution, Officer’s Certificate or supplemental indenture hereto for a particular Series, a “Legal Holiday” is any day that is not a Business Day.  If a payment date is a Legal Holiday at a place of payment, payment may be made at that place on the next succeeding day that is not a Legal Holiday, and no interest shall accrue for the intervening period.

 

Section 10.8.                          No Recourse Against Others.

 

A director, officer, employee or stockholder (past or present), as such, of the Company shall not have any liability for any obligations of the Company under the Securities or the Indenture or for any claim based on, in respect of or by reason of such obligations or their creation.  Each Securityholder by accepting a Security waives and releases all such liability.  The waiver and release are part of the consideration for the issue of the Securities.

 

Section 10.9.                          Counterparts.

 

This Indenture may be executed in any number of counterparts and by the parties hereto in separate counterparts, each of which when so executed shall be deemed to be an original and all of which taken together shall constitute one and the same agreement. The exchange of copies of this Indenture and of signature pages by facsimile or PDF transmission shall constitute effective execution and delivery of this Indenture as to the parties hereto and may be used in lieu of the original Indenture for all purposes.  Signatures of the parties hereto transmitted by facsimile or PDF shall be deemed to be their original signatures for all purposes.

 

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Section 10.10.                   Governing Law.

 

THIS INDENTURE AND THE SECURITIES, INCLUDING ANY CLAIM OR CONTROVERSY ARISING OUT OF OR RELATING TO THE INDENTURE OR THE SECURITIES, SHALL BE GOVERNED BY THE LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO THE CONFLICT OF LAWS PRINCIPLES THAT WOULD RESULT IN THE APPLICATION OF ANY LAW OTHER THAN THE LAW OF THE STATE OF NEW YORK.

 

Section 10.11.                   No Adverse Interpretation of Other Agreements.

 

This Indenture may not be used to interpret another indenture, loan or debt agreement of the Company or a Subsidiary of the Company.  Any such indenture, loan or debt agreement may not be used to interpret this Indenture.

 

Section 10.12.                   Successors.

 

All agreements of the Company in this Indenture and the Securities shall bind its successor.  All agreements of the Trustee in this Indenture shall bind its successor.

 

Section 10.13.                   Severability.

 

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

 

Section 10.14.                   Table of Contents, Headings, Etc.

 

The Table of Contents, Cross Reference Table, and headings of the Articles and Sections of this Indenture have been inserted for convenience of reference only, are not to be considered a part hereof, and shall in no way modify or restrict any of the terms or provisions hereof.

 

Section 10.15.                   Securities in a Foreign Currency.

 

Unless otherwise specified in a Board Resolution, a supplemental indenture hereto or an Officer’s Certificate delivered pursuant to Section 2.2 of this Indenture with respect to a particular Series of Securities, whenever for purposes of this Indenture any action may be taken by the Holders of a specified percentage in aggregate principal amount of Securities of all Series or all Series affected by a particular action at the time outstanding and, at such time, there are outstanding Securities of any Series which are denominated in more than one currency, then the principal amount of Securities of such Series which shall be deemed to be outstanding for the purpose of taking such action shall be determined by converting any such other currency into a currency that is designated upon issuance of any particular Series of Securities.  Unless otherwise specified in a Board Resolution, a supplemental indenture hereto or an Officer’s Certificate delivered pursuant to Section 2.2 of this Indenture with respect to a particular Series of Securities, such conversion shall be at the spot rate for the purchase of the designated currency as published in The Financial Times in the “Currency Rates” section (or, if The Financial Times is no longer published, or if such information is no longer available in The Financial Times, such source as may be selected in good faith by the Company) on any date of determination.  The 

 

41

 

provisions of this paragraph shall apply in determining the equivalent principal amount in respect of Securities of a Series denominated in currency other than Dollars in connection with any action taken by Holders of Securities pursuant to the terms of this Indenture.

 

All decisions and determinations provided for in the preceding paragraph shall, in the absence of manifest error, to the extent permitted by law, be conclusive for all purposes and irrevocably binding upon the Trustee and all Holders.

 

Section 10.16.                   Judgment Currency.

 

The Company agrees, to the fullest extent that it may effectively do so under applicable law, that (a) if for the purpose of obtaining judgment in any court it is necessary to convert the sum due in respect of the principal of or interest or other amount on the Securities of any Series (the “Required Currency”) into a currency in which a judgment will be rendered (the “Judgment Currency”), the rate of exchange used shall be the rate at which in accordance with normal banking procedures the Trustee could purchase in The City of New York the Required Currency with the Judgment Currency on the day on which final unappealable judgment is entered, unless such day is not a New York Banking Day, then the rate of exchange used shall be the rate at which in accordance with normal banking procedures the Trustee could purchase in The City of New York the Required Currency with the Judgment Currency on the New York Banking Day preceding the day on which final unappealable judgment is entered and (b) its obligations under this Indenture to make payments in the Required Currency (i) shall not be discharged or satisfied by any tender, any recovery pursuant to any judgment (whether or not entered in accordance with subsection (a)), in any currency other than the Required Currency, except to the extent that such tender or recovery shall result in the actual receipt, by the payee, of the full amount of the Required Currency expressed to be payable in respect of such payments, (ii) shall be enforceable as an alternative or additional cause of action for the purpose of recovering in the Required Currency the amount, if any, by which such actual receipt shall fall short of the full amount of the Required Currency so expressed to be payable, and (iii) shall not be affected by judgment being obtained for any other sum due under this Indenture.  For purposes of the foregoing, “New York Banking Day” means any day except a Saturday, Sunday or a legal holiday in The City of New York on which banking institutions are authorized or required by law, regulation or executive order to close.

 

Section 10.17.                   Force Majeure.

 

In no event shall the Trustee be responsible or liable for any failure or delay in the performance of its obligations hereunder arising out of or caused by, directly or indirectly, forces beyond its control, including, without limitation, strikes, work stoppages, accidents, acts of war or terrorism, civil or military disturbances, nuclear or natural catastrophes or acts of God, and interruptions, loss or malfunctions of utilities, communications or computer (software and hardware) services, it being understood that the Trustee shall use reasonable best efforts which are consistent with accepted practices in the banking industry to resume performance as soon as practicable under the circumstances.

 

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ARTICLE XI.
 SINKING FUNDS

 

Section 11.1.                          Applicability of Article.

 

The provisions of this Article shall be applicable to any sinking fund for the retirement of the Securities of a Series if so provided by the terms of such Securities pursuant to Section 2.2 and except as otherwise permitted or required by any form of Security of such Series issued pursuant to this Indenture.

 

The minimum amount of any sinking fund payment provided for by the terms of the Securities of any Series is herein referred to as a “mandatory sinking fund payment” and any other amount provided for by the terms of Securities of such 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 11.2.  Each sinking fund payment shall be applied to the redemption of Securities of any Series as provided for by the terms of the Securities of such Series.

 

Section 11.2.                          Satisfaction of Sinking Fund Payments with Securities.

 

The Company may, in satisfaction of all or any part of any sinking fund payment with respect to the Securities of any Series to be made pursuant to the terms of such Securities (1) deliver outstanding Securities of such Series to which such sinking fund payment is applicable (other than any of such Securities previously called for mandatory sinking fund redemption) and (2) apply as credit Securities of such Series to which such sinking fund payment is applicable and which have been repurchased by the Company or redeemed either at the election of the Company pursuant to the terms of such Series of Securities (except pursuant to any mandatory sinking fund) or through the application of permitted optional sinking fund payments or other optional redemptions pursuant to the terms of such Securities, provided that such Securities have not been previously so credited.  Such Securities shall be received by the Trustee, together with an Officer’s Certificate with respect thereto, not later than 15 days prior to the date on which the Trustee begins the process of selecting Securities for redemption, and shall be credited for such purpose by the Trustee at the 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.  If as a result of the delivery or credit of Securities in lieu of cash payments pursuant to this Section 11.2, the principal amount of Securities of such Series to be redeemed in order to exhaust the aforesaid cash payment shall be less than $100,000, the Trustee need not call Securities of such Series for redemption, except upon receipt of a Company Order that such action be taken, and such cash payment shall be held by the Trustee or a Paying Agent and applied to the next succeeding sinking fund payment, provided, however, that the Trustee or such Paying Agent shall from time to time upon receipt of a Company Order pay over and deliver to the Company any cash payment so being held by the Trustee or such Paying Agent upon delivery by the Company to the Trustee of Securities of that Series purchased by the Company having an unpaid principal amount equal to the cash payment required to be released to the Company.

 

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Section 11.3.                          Redemption of Securities for Sinking Fund.

 

Not less than 45 days (unless otherwise indicated in the Board Resolution, supplemental indenture hereto or Officer’s Certificate in respect of a particular Series of Securities) prior to each sinking fund payment date for any Series of Securities, the Company will deliver to the Trustee an Officer’s Certificate specifying the amount of the next ensuing mandatory sinking fund payment for that Series pursuant to the terms of that Series, the portion thereof, if any, which is to be satisfied by payment of cash and the portion thereof, if any, which is to be satisfied by delivering and crediting of Securities of that Series pursuant to Section 11.2, and the optional amount, if any, to be added in cash to the next ensuing mandatory sinking fund payment, and the Company shall thereupon be obligated to pay the amount therein specified.  Not less than 30 days (unless otherwise indicated in the Board Resolution, Officer’s Certificate or supplemental indenture in respect of a particular Series of Securities) before each such sinking fund payment date the Securities to be redeemed upon such sinking fund payment date will be selected in the manner specified in Section 3.2 and the Company shall send or cause to be sent a 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 3.3.  Such notice having been duly given, the redemption of such Securities shall be made upon the terms and in the manner stated in Sections 3.4, 3.5 and 3.6.

 

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

 

	
 
    	
Lannett   Company, Inc.
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Its:
    
	
 
    	
 
    
	
 
    	
[                                           ],   as Trustee
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Its:

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