Document:

exv10w38

 

Exhibit 10.38

	 	 	 
	

	 	MITEL NETWORKS, INC.
	 	MITEL NETWORKS SOLUTIONS, INC.
	 	205 Van Buren Street, Suite 400
	 	Hemdon, VA, 20170-5336
	 	Telephone: 703-318-7020

February 21, 2005

Kevin Bowyer,

Dear Kevin;

Mitel Networks, Inc. is pleased to offer you full-time employment. Your position with us will be
President, Mitel Networks Inc. and you will report to me, Paul Butcher, in my capacity as Chief
Operating Officer. Your start date will be March 14, 2005.

The terms of your offer are outlined below.

COMPENSATION

Your annual base compensation will be $183,000.00, which includes a car allowance of $8,000. In
addition you will be eligible for an annualized target incentive opportunity of $175,000, which
will be payable based upon successful completion of assigned objectives. Details of the incentive
compensation plan will be provided to you following your start date.

You will have the opportunity to participate in our Employee Stock Option Plan upon signing. The
company will be recommending to the Compensation Committee of the Board of Directors that an option
for 150,000 common shares be granted to you. The option will be effective on the date of approval
of the Compensation Committee and the share price will be the share price in effect on the date of
approval. This option will exist while you are an employee at Mitel Networks and will be subject to
all other items in the plan including exercise period and method of payment.

You will be eligible to participate in the Executive Fleet Program. Further details of the program
may be obtained from our Fleet Manager, Mark Brown in Kanata at extension 1430.

BENEFITS

One of the advantages of working at Mitel is having access to an employee benefits program that is
designed to meet your specific needs for health, dental care, and insurance coverage, a program
that can be changed each year to reflect your evolving lifestyle, family situation and benefit
priorities. Complete information will be provided to you on your start date and during your
orientation with the Company. This is just one of the many benefits that are available to you as an
employee at Mitel Networks.

 

 

Kevin Bowyer,

February 21, 2005

Page 2 of 3

Your
vacation will be accrued at a rate of 3.076 hours per pay period, or
four (4) weeks per
year. The maximum carry-over at the end of each fiscal year is 4 weeks (20 days, or pro-rated) of
vacation. Any outstanding vacation over these hours at the end of the fiscal year is forfeited if
it has not been taken.

COMPANY POLICIES

You are required to follow the Company’s policies and guidelines as communicated to you. The
Policies@Work document is available to you through our internal Intranet site. It is recommended
that you become familiar with our policies as the company’s policies and guidelines form part of
your contract of employment.

Attached to this Letter of Offer are copies of the Internet Policy (Attachment “A”), the Code of
Business Conduct (Attachment “B”) and the Directed Termination Due to Redundancy Policy (Attachment
“C”). Mitel reserves the right to add, change, or modify any clause, at any time, to reflect
business requirements and to maintain its legislative compliance.

You will be required to sign the Mitel “ Intellectual Property Rights & Confidentiality
Agreement” (Attachment “D”) as a condition of employment. A copy of this form is enclosed for
your review. You will be required to sign an original form and forward it to us upon your
acceptance.

As well, Mitel reserves the right to retract the offer or to terminate an accepted offer without
any liability to you if any misrepresentation has been made or if a significant fact has not been
disclosed to Mitel. If you require further clarification, please contact the Human Resources
department.

In accordance with the Immigration Reform and Control Act of 1986, it will be necessary for you to
provide us with documentation that establish your identity and eligibility for employment in the
United States of America. A list of acceptable documents will be couriered to you along with your
new hire documentation.

Your employment shall at all times be considered “at will”. This letter is not to be considered
an employment contract or guarantee of employment for any specific period.

The company reserves the right to change, with reasonable notice, any of the above terms and
conditions of employment.

To indicate your acceptance of our offer of employment, please sign the bottom of this letter and
return to the attention of Kathy Enright by March 7, 2005 at the following address:

Mitel Networks

350 Legget Drive

Ottawa, Ontario

Canada K2K 2W7

 

 

Kevin Bowyer,

February 21, 2005

Page 3 of 3

If you have any questions about this letter or the enclosed materials, please contact
Kathy at (613)592-5660 x3257.

We look forward to welcoming you to our team as you pursue your career with Mitel Networks.

Yours sincerely

	 	 	 
	/s/ Paul Butcher

	 	/s/ Kathy Enright
	 
	Paul Butcher,

	 	Kathy Enright,
	Chief Operating Officer,

	 	Human Resources,
	Mitel Networks, 
Ottawa, Ontario

	 	Mitel Networks, 
Ottawa, Ontario

I accept the offer of employment with Mitel Networks Solutions, upon the terms and conditions set
out in this letter and Attachment “A”, Attachment “B”, Attachment “C” and Attachment “D”.

	 	 	 
	/s/ Kevin E. Bowyer

	 	February 28, 2005
	 

	 	 
	Accepted

	 	Date

 

 

INTELLECTUAL PROPERTY RIGHTS,

CONFIDENTIALITY AGREEMENT, AND

NON-SOLICITATION/NON-COMPETE AGREEMENT

In consideration of my employment with Mitel Networks, Inc. or its subsidiary Mitel Networks
Solutions, Inc. (“Mitel”), the salary or wages paid and/or to be paid to me in connection with my
employment, the access provided to me to proprietary information of Mitel (including that of Mitel
Networks Corporation), its suppliers and customers and other good and valuable consideration, the
adequacy of which is hereby acknowledged, I agree as follows:

	1.0	 	BEST EFFORTS
	 
	1.1	 	I agree to devote my full time and attention and use my best efforts to perform the duties
(“Work”)
associated with my position, including, without limitation, the duty to create and invent.
I agree not to
work for or provide any services to a third party (other than as required by my position)
without the prior
written consent of Mitel.
	 
	2.0	 	OWNERSHIP OF INVENTIONS
	 
	2.1	 	Every invention and discovery, (whether patentable or not), work of authorship (including
software code),
technology and know-how and any improvement and revision to any of the foregoing
(collectively
“Inventions”) made or created by me, either alone or in collaboration with others, during
the period of my
employment with Mitel which either uses Information (as defined in 5.1, below) or which is
within the
scope of the actual or anticipated business of Mitel, including research and development
activities, its
manufacturing, its products and its services, and all intellectual and industrial property
rights (IPR’s)
arising with respect to any of the above, will be and remain the exclusive property of
Mitel. I agree to
hold all Inventions in a fiduciary capacity for the benefit of Mitel and hereby agree to
assign all my rights
and interests in the Inventions made or created by me to Mitel and its nominees and to
promptly disclose
in writing to my manager or to any person specifically designated by Mitel from time to time
complete
information concerning all Inventions made or created by me and this undertaking shall
survive
termination with respect to any such Invention(s) made or created by me during my
employment.
	 
	2.2	 	I acknowledge that I am being permitted by Mitel to use its premises, facilities, equipment
and tools,
supplies and other resources to do my Work which may involve making or creating various
Inventions and
that I am receiving Mitel’s assistance in performing my Work.
	 
	2.3	 	I also agree that I may perform my Work at home or at other than Mitel locations during as
well as outside
regular Mitel business hours. I agree that the Work so performed will be considered part of
and within the
scope of my regular Work for Mitel for the purposes of this Agreement.
	 
	3.0	 	AGREEMENT TO ASSIST
	 
	3.1	 	I will, during and after the period of my employment with Mitel, without charge to Mitel, but
at its request
and expense, assist Mitel and its nominees in every reasonable way to obtain and vest in it
or them title to
all IPR’s arising with respect to all such Inventions in all countries by executing all
necessary or desirable
documents, including applications for patents, copyrights, topography rights and assignments
thereof. I
will also co-operate with Mitel and its nominees in the prosecution or defense of any
claims, lawsuits or
other proceedings arising in connection with any such Inventions, without charge to Mitel,
but at its
expense and request.

 

 

	3.2	 	I hereby unconditionally and irrevocably waive all my individual rights under
patent and/or copyright legislation arising in connection with all Inventions, as
applicable.
	 
	4.0	 	RECORDS
	 
	4.1	 	I will keep and maintain adequate and current records of all Inventions made or created by me
and agree
that these records will be and remain the property of and available to Mitel at all times.
I agree that on
leaving the employ of Mitel, I will promptly hand over to Mitel’s designated representative
all such records
(including all copies of such) existing in a tangible form such as notes, sketches,
drawings, tables, lists,
correspondence, computer diskettes, engineering books provided by Mitel, and other written,
printed or
photographed material in my possession, power or control relating to such Inventions and
will not retain
any such records. I likewise agree to permanently delete any such records residing on any
computer or computer program in my possession upon may termination of employment.
	 
	5.0	 	TRADE SECRETS AND CONFIDENTIALITY
	 
	5.1	 	I recognize that during the period of my employment with Mitel, I will receive, develop or
otherwise
acquire information that (i) is a trade secret of Mitel, or (ii) is proprietary and
confidential to Mitel, its
parent, affiliates, suppliers or customers, as applicable, or (iii) is information that
Mitel, its parent or any
of its affiliates owes an obligation of confidence (collectively “Information”). I agree not
to use any of the
Information, in whole or in part, for any purpose other than for the benefit of Mitel and I
will not, directly
or indirectly, publish or disclose to any third party at any time during or after my
employment any of the
Information, in whole or in part, including Information relating to confidential inventions
and ideas,
products, product specifications, processes, procedures, machinery, apparatus, manufacturing
affairs,
business affairs, future plans, marketing plans, technical data, pricing, customers or
customer lists
(whether or not developed or acquired by me) without first obtaining the prior written
authorization of
Mitel for such use, publication or disclosure.
	 
	6.0	 	USE OF MITEL COMPUTERS AND COMMUNICATIONS SYSTEMS
	 
	6.1	 	I agree to adhere to all Mitel policies and guidelines regarding the use of Mitel’s
computers, communications systems (voice, data, video), databases or files, and I agree not
to make any unauthorized use of such computers, communications systems, databases, files or
information contained therein or thereon. I agree that I have no expectation of privacy with
respect to such.
	 
	7.0	 	COVENANT NOT TO SOLICIT/COMPETE
	 
	7.1	 	I further agree that while I am a paid employee of Mitel and for twelve (12) months
thereafter:

	 	  (a)	 	     I will not directly or indirectly, either for my own benefit or for the benefit
of any person,
firm or corporation, knowingly, directly or indirectly solicit, entice or approach
any of Mitel’s
employees so as to induce them to leave their employment with Mitel;
	 
	 	  (b)	 	     I will not solicit, or entice or attempt to solicit or entice away from Mitel
any existing
Mitel customer or any other person, firm or corporation dealing with Mitel and,
likewise, I agree
not to sell products and/or services competing with Mitel’s products and/or service
for such period
to customers of Mitel.

 

 

	8.0	 	REASONABLENESS OF RESTRICTIONS
	 
	8.1	 	I have carefully read and considered the provisions of this Agreement and, having done
so, agree that the
restrictions set forth herein are fair and reasonable and are reasonably required for the
protection of the
interests of Mitel, its officers, directors, shareholders and other employees.
	 
	9.0	 	NOT A CONTRACT OF EMPLOYMENT
	 
	9.1	 	Nothing stated herein shall be construed as creating a contract of employment or as
changing the at will
relationship of the parties.
	 
	10.0	 	TERM
	 
	10.1	 	This Agreement will be effective upon execution and for the duration of my employment
with Mitel. The
rights and obligations of the parties arising under this Agreement will also survive the
termination of my
employment with Mitel according to their specific terms as stated hereinabove.
	 
	11.0	 	SUCCESSORS, ASSIGNS, ETC.
	 
	11.1	 	This Agreement will inure to the benefit of the successors and assigns of Mitel and be
binding upon my
heirs, executors and administrators.
	 
	12.0	 	GOVERNING LAW & SEVERABILITY
	 
	12.1	 	This Agreement will be governed by and construed in accordance with the laws of the
Commonwealth of
Virginia and venue is agreed to be in Fairfax County, Virginia. If any provision of this
Agreement, or any
part thereof, shall be held to be invalid or unenforceable, such provision, or part thereof,
shall be severable
and of no force and effect without invalidating the remaining provisions hereof, and this
Agreement shall
continue in full force and effect as if same had not been a part hereof.

	 	 	 	 	 	 	 	 	 
	 

	 	    
    EMPLOYER:
 MITEL
NETWORKS, INC.

MITEL NETWORKS

SOLUTIONS, INC.
	 	 	 	 	 	EMPLOYEE
	 
	 	 	 	 	 	 	 	 
	By:

	 	/s/ Kathy Enright
	 	 	 	By:
	 	/s/ Kevin E. Bowyer
	 

	 	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Printed Name:

	 	Kathy Enright
	 	 	 	Printed Name:
	 	Kevin E. Bowyer
	 
	 	 	 	 	 	 	 	 
	Title:

	 	VP Human Resources
	 	 	 	Address:	 	 
	 

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Dated:

	 	March 4/05
	 	 	 	Dated:
	 	February 28, 2005

I HEREBY ACKNOWLEDGE RECEIPT OF A FULLY EXECUTED COPY OF THIS AGREEMENT

                                        

(Employee’s Initials)exv4w1

 

Exhibit 4.1

NORTEL NETWORKS LIMITED

as Issuer,

NORTEL NETWORKS CORPORATION

AND

NORTEL NETWORKS INC.

as Guarantors,

AND

THE BANK OF NEW YORK

as Trustee

 

INDENTURE

Dated as of July 5, 2006

 

 

 

NORTEL NETWORKS LIMITED

Reconciliation and tie between Trust Indenture Act of 1939 and

Indenture, dated as of July 5, 2006

	 	 	 
	Trust Indenture Act Section	Indenture Section
	310(a)(1) 
	 	609
	(a)(2) 
	 	609
	(a)(3) 
	 	Not Applicable
	(a)(4) 
	 	Not Applicable
	(b)
	 	609
	(c)
	 	Not Applicable
	311(a)
	 	610
	(b)
	 	610
	312(a)
	 	701
	(b)
	 	701(b)
	(c)
	 	701(c)
	313(a)
	 	702(a)
	(b)
	 	702(a)
	(c)
	 	702(a)
	(d)
	 	702(b)
	314(a)
	 	703(b)
	(b)
	 	Not Applicable
	(c)(1) 
	 	102
	(c)(2) 
	 	102
	(c)(3) 
	 	Not Applicable
	(d)
	 	Not Applicable
	(e)
	 	102
	315(a)
	 	601(b)
	(b)
	 	605
	(c)
	 	601(a)
	(d)
	 	601(c)
	(d)(1) 
	 	601(b)
	(d)(2) 
	 	601(c)(2)
	(d)(3) 
	 	601(c)(3)
	(e)
	 	511
	316(a)(1)(A) 
	 	506(a)(1)
	(a)(1)(B) 
	 	506(a)(2)
	 
	 	503(a)
	(a)(2) 
	 	Not Applicable
	(b)
	 	508
	317(a)(1) 
	 	509
	(a)(2) 
	 	510
	(b)
	 	1003
	318(a)
	 	107

 

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

i

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page
	ARTICLE ONE
	 	 	 	 
	DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION
	 	 	 	 
	Section 101. Definitions.
	 	 	1	 
	(1) “Acquired Funded Debt”
	 	 	1	 
	(2) “Act”
	 	 	1	 
	(3) “Additional Amounts”
	 	 	2	 
	(4) “Additional Debt Securities”
	 	 	2	 
	(5) “Additional Interest”
	 	 	2	 
	(6) “Adjusted EBITDA”
	 	 	2	 
	(7) “Affiliate”
	 	 	3	 
	(8) “Asset Acquisition”
	 	 	3	 
	(9) “Authorized Newspaper”
	 	 	3	 
	(10) “Authorized Officers”
	 	 	3	 
	(11) “Board of Directors”
	 	 	4	 
	(12) “Board Resolution”
	 	 	4	 
	(13) “Business Day”
	 	 	4	 
	(14) “Capital Stock”
	 	 	4	 
	(15) “Capitalized Lease Obligation”
	 	 	4	 
	(16) “Certificated Security”
	 	 	4	 
	(17) “Change of Control”
	 	 	4	 
	(18) “Commission”
	 	 	6	 
	(19) “Common Stock”
	 	 	6	 
	(20) “Consolidated Fixed Charge Coverage Ratio”
	 	 	6	 
	(21) “Consolidated Fixed Charges”
	 	 	7	 
	(22) “Consolidated Interest Expense”
	 	 	7	 
	(23) “Consolidated Net Income”
	 	 	8	 
	(24) “Consolidated Net Tangible Assets”
	 	 	8	 
	(25) “Corporate Trust Office”
	 	 	9	 
	(26) “corporation”
	 	 	9	 
	(27) “Credit Enhanced Foreign Subsidiary Debt”
	 	 	9	 

ii

 

TABLE
OF CONTENTS

(continued)

	 	 	 	 	 
	 	 	Page
	(28) “Debt Securities”
	 	 	9	 
	(29) “Default”
	 	 	9	 
	(30) “Defaulted Interest”
	 	 	9	 
	(31) “Depositary”
	 	 	9	 
	(32) “Designated Qualified Preferred Stock”
	 	 	9	 
	(33) “Disclosure Materials”
	 	 	9	 
	(34) “Disqualified Capital Stock”
	 	 	9	 
	(35) “Dollar”
	 	 	10	 
	(36) “DTC”
	 	 	10	 
	(37) “Event of Default”
	 	 	10	 
	(38) “Exchange Act”
	 	 	10	 
	(39) “Exchange Debt Securities”
	 	 	10	 
	(40) “Exchange Offer”
	 	 	10	 
	(41) “Exchange Rate”
	 	 	10	 
	(42) “Exchange Rate Officers’ Certificate”
	 	 	11	 
	(43) “Exchange Registration Statement”
	 	 	11	 
	(44) “Excluded Holder”
	 	 	11	 
	(46) “Existing NNC Convertible Notes”
	 	 	11	 
	(46) “Existing Preferred Stock”
	 	 	11	 
	(47) “Foreign Currency”
	 	 	11	 
	(48) “Foreign Subsidiary”
	 	 	11	 
	(49) “Funded Debt”
	 	 	11	 
	(50) “GAAP”
	 	 	13	 
	(51) “Global Security”
	 	 	13	 
	(52) “Guarantee”
	 	 	13	 
	(53) “Guarantor”
	 	 	13	 
	(54) “Guarantor Request”
	 	 	13	 
	(55) “Holder”
	 	 	13	 
	(56) “Indenture”
	 	 	13	 
	(57) “Initial Purchasers”
	 	 	13	 

iii

 

TABLE
OF CONTENTS

(continued)

	 	 	 	 	 
	 	 	Page
	(58) “Initial Debt Securities”
	 	 	13	 
	(59) “interest”
	 	 	14	 
	(60) “Interest Payment Date”
	 	 	14	 
	(61) “Interest Swap Obligations”
	 	 	14	 
	(62) “Investment Grade Status”
	 	 	14	 
	(63) “Issue Date”
	 	 	14	 
	(64) “Issue Date Registration Rights Agreement”
	 	 	14	 
	(65) “Issuer”
	 	 	14	 
	(66) “Issuer Request” and “Issuer Order”
	 	 	14	 
	(67) “Lien”
	 	 	14	 
	(68) “Managed Service Contract Liens”
	 	 	14	 
	(69) “Maturity”
	 	 	14	 
	(70) “Measurement Date”
	 	 	15	 
	(71) “Moody’s”
	 	 	15	 
	(72) “NGSH”
	 	 	15	 
	(73) “NNC”
	 	 	15	 
	(74) “NNCC”
	 	 	15	 
	(75) “NNI”
	 	 	15	 
	(76) “NNL”
	 	 	15	 
	(77) “Officers’ Certificate”
	 	 	15	 
	(78) “Opinion of Counsel”
	 	 	15	 
	(79) “Original Issue Discount Security”
	 	 	15	 
	(80) “Outstanding”
	 	 	15	 
	(81) “Participant”
	 	 	16	 
	(82) “Paying Agent”
	 	 	16	 
	(83) “Permitted Funded Debt”
	 	 	16	 
	(84) “Person”
	 	 	17	 
	(85) “Place of Payment”
	 	 	18	 
	(86) “Predecessor Security”
	 	 	18	 
	(87) “Preferred Stock”
	 	 	18	 

iv

 

TABLE
OF CONTENTS

(continued)

	 	 	 	 	 
	 	 	Page
	(88) “Purchase Money Lien”
	 	 	18	 
	(89) “QIB”
	 	 	18	 
	(90) “Qualified Capital Stock”
	 	 	18	 
	(91) “Qualified Equity Proceeds”
	 	 	18	 
	(92) “Redemption Date”
	 	 	18	 
	(93) “Redemption Price”
	 	 	18	 
	(94) “Refinance”
	 	 	18	 
	(95) “Refinancing Funded Debt”
	 	 	19	 
	(96) “Registration Rights”
	 	 	19	 
	(97) “Registration Rights Agreement”
	 	 	19	 
	(98) “Registration Statement”
	 	 	19	 
	(99) “Regular Record Date”
	 	 	19	 
	(100) “Regulation S”
	 	 	19	 
	(101) “Regulation S Debt Securities”
	 	 	19	 
	(102) “Regulation S Global Security”
	 	 	19	 
	(103) “Resale Restriction Termination Date”
	 	 	19	 
	(104) “Responsible Officer”
	 	 	20	 
	(105) “Restricted Debt Securities”
	 	 	20	 
	(106) “Restricted Debt Securities Certificate”
	 	 	20	 
	(107) “Restricted Debt Securities Legend”
	 	 	20	 
	(108) “Restricted Period”
	 	 	20	 
	(109) “Restricted Subsidiary”
	 	 	20	 
	(110) “Reversion Date”
	 	 	20	 
	(111) “Rule 144A”
	 	 	20	 
	(112) “Rule 144A Debt Securities”
	 	 	20	 
	(113) “Rule 144A Global Security”
	 	 	21	 
	(114) “S&P”
	 	 	21	 
	(115) “Securities Act”
	 	 	21	 
	(116) “Security Custodian”
	 	 	21	 
	(117) “Security Register”
	 	 	21	 

v

 

TABLE
OF CONTENTS

(continued)

	 	 	 	 	 
	 	 	Page
	(118) “Security Registrar”
	 	 	21	 
	(119) “Shelf Registration Statement”
	 	 	21	 
	(120) “Special Record Date”
	 	 	21	 
	(121) “Stated Maturity Date”
	 	 	21	 
	(122) “Subsidiary”
	 	 	21	 
	(123) “Successor Debt Security”
	 	 	21	 
	(124) “Suspended Covenants”
	 	 	22	 
	(125) “Suspension Period”
	 	 	22	 
	(126) “Synthetic Purchase Agreement”
	 	 	22	 
	(127) “Trust Indenture Act”
	 	 	22	 
	(128) “Trustee”
	 	 	22	 
	(129) “United States”
	 	 	22	 
	(130) “Weighted Average Life to Maturity”
	 	 	22	 
	Section 102. Compliance Certificates and Opinions
	 	 	23	 
	Section 103. Form of Documents Delivered to Trustee
	 	 	23	 
	Section 104. Acts of Holders
	 	 	24	 
	Section 105. Notices, etc., to Trustee, Issuer and Guarantors
	 	 	25	 
	Section 106. Notice to Holders; Waiver
	 	 	25	 
	Section 107. Conflict with Trust Indenture Act
	 	 	26	 
	Section 108. Effect of Headings and Table of Contents
	 	 	26	 
	Section 109. Successors and Assigns
	 	 	26	 
	Section 110. Separability Clause
	 	 	26	 
	Section 111. Benefits of Indenture
	 	 	26	 
	Section 112. Governing Law, etc
	 	 	26	 
	Section 113. WAIVER OF JURY TRIAL
	 	 	27	 
	Section 114. Legal Holidays
	 	 	27	 
	Section 201. Forms Generally
	 	 	28	 
	Section 202. Forms of Debt Securities
	 	 	28	 
	Section 203. Guarantee by Guarantor; Form of Guarantee; Release of Guarantee
	 	 	28	 
	Section 204. Form of Trustee’s Certificate of Authentication
	 	 	31	 

vi

 

TABLE
OF CONTENTS

(continued)

	 	 	 	 	 
	 	 	Page
	ARTICLE THREE
	 	 	 	 
	THE DEBT SECURITIES
	 	 	 	 
	Section 301. Amount Unlimited; Issuable in Series
	 	 	31	 
	Section 302. Denominations
	 	 	34	 
	Section 303. Execution, Authentication, Delivery and Dating
	 	 	34	 
	Section 304. Temporary Debt Securities
	 	 	37	 
	Section 305. Registration, Registration of Transfer and Exchange
	 	 	37	 
	Section 307. Legends
	 	 	40	 
	Section 311. Mutilated, Destroyed, Lost or Stolen Debt Securities
	 	 	45	 
	Section 312. Payment of Interest; Interest Rights Preserved
	 	 	46	 
	Section 315. Persons Deemed Owners
	 	 	49	 
	Section 316. Cancellation
	 	 	49	 
	Section 317. Computation of Interest
	 	 	49	 
	Section 318. Payment in Currencies
	 	 	49	 
	Section 319. Judgments
	 	 	51	 
	Section 320. CUSIP Numbers
	 	 	52	 
	 	 	 	 	 
	ARTICLE FOUR
	 	 	 	 
	SATISFACTION AND DISCHARGE
	 	 	 	 
	Section 401. Satisfaction and Discharge of Indenture
	 	 	52	 
	Section 402. Application of Trust Money
	 	 	53	 
	 	 	 	 	 
	ARTICLE FIVE
	 	 	 	 
	DEFAULTS AND REMEDIES
	 	 	 	 
	Section 501. Events of Default and Enforcement
	 	 	53	 
	Section 502. Waiver of Declaration
	 	 	55	 
	Section 503. Waiver
	 	 	55	 
	Section 504. Other Remedies
	 	 	56	 
	Section 505. Application of Money Collected
	 	 	56	 
	Section 506. Control by Holders
	 	 	57	 
	Section 507. Limitation on Suits
	 	 	57	 

vii

 

TABLE
OF CONTENTS

(continued)

	 	 	 	 	 
	 	 	Page
	Section 508. Rights of Holders To Receive Payment
	 	 	57	 
	Section 509. Collection Suit by Trustee
	 	 	57	 
	Section 510. Trustee May File Proofs of Claim
	 	 	58	 
	Section 511. Undertaking for Costs
	 	 	58	 
	Section 512. Delay or Omission Not Waiver
	 	 	58	 
	Section 513. Waiver of Stay or Extension Laws
	 	 	58	 
	 	 	 	 	 
	ARTICLE SIX
	 	 	 	 
	THE TRUSTEE
	 	 	 	 
	Section 601. Duties of Trustee
	 	 	58	 
	Section 602. Rights of Trustee
	 	 	59	 
	Section 603. Individual Rights of Trustee
	 	 	60	 
	Section 604. Trustee’s Disclaimer
	 	 	60	 
	Section 605. Notice of Defaults
	 	 	60	 
	Section 606. Compensation and Indemnity
	 	 	61	 
	Section 607. Replacement of Trustee
	 	 	61	 
	Section 608. Successor Trustee by Merger, etc.
	 	 	63	 
	Section 609. Eligibility; Disqualification
	 	 	64	 
	Section 610. Preferential Collection of Claims Against the Issuer
	 	 	64	 
	 	 	 	 	 
	ARTICLE SEVEN
	 	 	 	 
	HOLDERS’ LISTS AND REPORTS BY TRUSTEE, ISSUER AND GUARANTORS
	 	 	 	 
	Section 701. Preservation of Information; Communications to Holders
	 	 	64	 
	Section 702. Reports by Trustee
	 	 	65	 
	Section 703. Reports by Issuer and Guarantors
	 	 	66	 
	 	 	 	 	 
	ARTICLE NINE
	 	 	 	 
	SUPPLEMENTAL INDENTURES
	 	 	 	 
	Section 901. Supplemental Indentures Without Consent of Holders
	 	 	68	 
	Section 902. Supplemental Indentures with Consent of Holders
	 	 	69	 
	Section 903. Execution of Supplemental Indentures
	 	 	70	 
	Section 904. Effect of Supplemental Indentures
	 	 	71	 

viii

 

TABLE
OF CONTENTS

(continued)

	 	 	 	 	 
	 	 	Page
	Section 905. Conformity with Trust Indenture Act
	 	 	71	 
	Section 906. Reference in Debt Securities to Supplemental Indentures
	 	 	71	 
	 	 	 	 	 
	ARTICLE TEN
	 	 	 	 
	COVENANTS
	 	 	 	 
	Section 1001. Payment of Principal, Premium and Interest
	 	 	71	 
	Section 1002. Maintenance of Office or Agency
	 	 	71	 
	Section 1003. Money for Debt Securities Payments to Be Held in Trust
	 	 	72	 
	Section 1008. Compliance Certificate
	 	 	80	 
	Section 1009. Waiver of Certain Covenants
	 	 	80	 
	 	 	 	 	 
	ARTICLE ELEVEN
	 	 	 	 
	REDEMPTION OF DEBT SECURITIES
	 	 	 	 
	Section 1101. Applicability of Article
	 	 	81	 
	Section 1106. Debt Securities Payable on Redemption Date
	 	 	83	 
	Section 1107. Debt Security Redeemed in Part
	 	 	84	 
	 	 	 	 	 
	ARTICLE TWELVE
	 	 	 	 
	SINKING FUNDS
	 	 	 	 
	Section 1201. Applicability of Article
	 	 	84	 
	Section 1202. Satisfaction of Sinking Fund Payments with Debt Securities
	 	 	84	 
	Section 1203. Redemption of Debt Securities for Sinking Fund
	 	 	85	 
	 	 	 	 	 
	ARTICLE THIRTEEN
	 	 	 	 
	DEFEASANCE
	 	 	 	 
	Section 1301. Discharge by Deposit of Money or Debt Securities
	 	 	85	 
	Section 1302. Application of Trust Money
	 	 	87	 
	Section 1303. Repayment to the Issuer or Guarantors
	 	 	87	 
	 	 	 	 	 
	ARTICLE FOURTEEN
	 	 	 	 
	MEETINGS OF HOLDERS OF DEBT SECURITIES
	 	 	 	 
	Section 1401. Purposes for Which Meetings May Be Called
	 	 	87	 
	Section 1402. Call, Notice and Place of Meetings
	 	 	87	 

ix

 

TABLE
OF CONTENTS

(continued)

	 	 	 	 	 
	 	 	Page
	Section 1403. Persons Entitled to Vote at Meetings
	 	 	88	 
	Section 1404. Quorum; Action
	 	 	88	 
	Section 1405. Determination of Voting Rights; Conduct and Adjournment of Meetings
	 	 	89	 
	Section 1406. Counting Votes and Recording Action of Meetings
	 	 	89	 
	Exhibit A        Form of Currency Election Certificate
	 	 	A-1	 
	Exhibit B         Form of Regulation S/Rule 144 Certificate
	 	 	B-1	 

x

 

INDENTURE dated as of July 5, 2006 among Nortel Networks Limited (together with any successors,
“NNL” or the “Issuer”), a Canadian corporation having its principal place of business at 8200 Dixie
Road, Suite 100, Brampton, Ontario, Canada L6T 5P6, Nortel Networks Corporation (together with any
successors, “NNC”), a Canadian corporation having its principal place of business at 8200 Dixie
Road, Suite 100, Brampton, Ontario, Canada L6T5P6 and Nortel Networks Inc. (together with any
successors, “NNI”), a Delaware corporation having its principal place of business at 4008 Chapel
Hill – Nelson Highway, Research Triangle Park, North Carolina, U.S.A., 27709, and The Bank of New
York (the “Trustee”), a New York corporation authorized to conduct a banking business, having its
Corporate Trust Office at 101 Barclay Street 21W, New York, New York, U.S.A., 10286.

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

ARTICLE ONE

Definitions and Other Provisions of General Application

SECTION 101. Definitions.

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

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

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

(C) all accounting terms not otherwise defined herein have the meanings assigned to them in
accordance with GAAP;

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

(E) each reference to an Article or Section refers to an Article or Section of this
Indenture, unless otherwise specified herein.

(1) “Acquired Funded Debt” means Funded Debt of a Person or any of its Subsidiaries existing at the
time such Person becomes a Subsidiary of NNC or at the time it merges, amalgamates or consolidates
with or into NNC or any of its Subsidiaries or assumed in connection with the acquisition of
property or assets from such Person and in each case not incurred by such Person in connection
with, or in anticipation or contemplation of, such Person becoming a Subsidiary of NNC or such
acquisition, merger or consolidation or acquisition of such property or assets.

(2) “Act” when used with respect to any Holder, has the meaning specified in Section 104.

 

 

(3) “Additional Amounts” has the meaning specified in Section 313.

(4) “Additional Debt Securities” means any Debt Securities of a series issued after the Issue Date
of the Initial Debt Securities of such series pursuant to Section 310.

(5) “Additional Interest” when used with respect to the Debt Securities of any series issued with
Registration Rights, has the meaning specified in the applicable Registration Rights Agreement.

(6) “Adjusted EBITDA” means, with respect to NNC, for any period, the sum, all as determined on a
consolidated basis for NNC and its Subsidiaries in accordance with GAAP (without duplication), of:

     (a) Consolidated Net Income; plus

     (b) to the extent Consolidated Net Income has been reduced thereby
(without duplication):

     (i) all income taxes and related interest and penalties of NNC and its Subsidiaries
paid or accrued (net of any income tax credits or gains) in accordance with GAAP for such
period;

     (ii) Consolidated Fixed Charges;

     (iii) any non-cash expenses, charges or losses that decreased Consolidated Net Income
during such period;

     (iv) any loss, charge or cost attributable to exit or disposal activities approved by
the Board of Directors of NNC as part of a restructuring plan;

     (v) any loss, charge or cost attributable to any restatements of financial information
of NNC or any of its subsidiaries described in the Disclosure Materials or any related
internal control remedial measures;

     (vi) any loss, charge or cost attributable to the actual and contemplated transactions
with Flextronics described in the Disclosure Materials;

     (vii) any loss, charge or cost attributable to the finance transformation project of
NNC and its Subsidiaries including, without limitation, the implementation of a new
information technology platform (SAP) to provide an integrated global financial system;

     (viii) any loss, charge or cost attributable to any payment of fines, penalties or
other amounts paid to any government authority or stock exchange in connection with any
regulatory or enforcement proceeding relating to events described in the Disclosure
Materials; and

2

 

     (ix) any loss, charge or cost attributable to the contracts existing on the date of
this Indenture with Bharat Sanchar Nigam Limited described in the Disclosure Materials, but
not any expansion option, extension, renewal or replacement thereof; minus

     (c) any non-cash credits and gains that increased Consolidated Net
Income during such period, including any reversal of a charge referred to in
subclauses (b)(iii) or (ix) above; minus

     (d) to the extent Consolidated Net Income has been increased
thereby:

     (i) any gains attributable to reversals prior to the date of this Indenture of
provisions relating to a certain customer bankruptcy settlement during the year ended
December 31, 2003 as described in the Disclosure Materials;

     (ii) any credits and gains attributable to the restructuring of customer financing
receivables prior to the date of this Indenture; and

     (iii) any reversals of any reserves for any losses, charges or costs with respect to
the matters covered by subclauses (iv), (v), (vi), (vii), (viii) or (ix) of clause (b)
above.

(7) “Affiliate” means, with respect to any specified Person, any other Person who directly or
indirectly through one or more intermediaries controls, or is controlled by, or is under common
control with, such specified Person. The term “control” means the possession, directly or
indirectly, of the power to direct or cause the direction of the management and policies of a
Person, whether through the ownership of voting securities, by contract or otherwise; and the terms
“controlling” and “controlled” have meanings correlative of the foregoing.

(8) “Asset Acquisition” means (1) an investment by NNC or any Subsidiary of NNC in any other Person
pursuant to which such Person shall become a Subsidiary of NNC or shall be merged, consolidated or
amalgamated with or into NNC or any Subsidiary of NNC, or (2) the acquisition by NNC or any
Subsidiary of NNC of the assets of any Person (other than a Subsidiary of NNC) which constitute all
or substantially all of the assets of such Person or comprise any division or line of business of
such Person or any other properties or assets of such Person other than in the ordinary course of
business.

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

(10) “Authorized Officers” means, with respect to, (i) each of NNC and NNL, any two of its
President and Chief Executive Officer, General Counsel, Chief Legal Officer, Chief Operating
Officer and Chief Financial Officer or any one of the aforesaid officers together with any one of
its Corporate Secretary, its Treasurer, any Assistant Secretary or any Assistant Treasurer; and
(ii) NNI, any one of its President, its Vice-President, Finance and Treasurer, any other of its
Vice-

3

 

Presidents, its Secretary, or any of its Assistant Secretaries; provided that NNC, NNL and NNI
may, from time to time, designate additional officers who would qualify as “Authorized Officers”
pursuant to an Officers’ Certificate delivered to the Trustee.

(11) “Board of Directors” means, in respect of the Issuer or a Guarantor, the board of directors,
the executive committee or any other committee of that board or any group of directors of that
board, duly authorized to make a decision on the matter in question.

(12) “Board Resolution” means a copy of a resolution certified by the Corporate Secretary, the
Secretary or an Assistant Secretary of the Issuer or a Guarantor, as the case may be, to have been
duly adopted by the Board of Directors of the Issuer or such Guarantor, respectively, and to be in
full force and effect on the date of such certification.

(13) “Business Day” means, (a) when used with respect to any Place of Payment, any Monday, Tuesday,
Wednesday, Thursday or Friday that is not a day on which banking institutions in that Place of
Payment are authorized or obligated by law to close and (b) otherwise, any Monday, Tuesday,
Wednesday, Thursday or Friday that is not a day on which banking institutions in New York City are
authorized or obligated by law to close.

(14) “Capital Stock” means:

	 	(a)	 	with respect to any Person that is a corporation, any and all shares, interests, participations or other equivalents (however designated and
whether or not voting) of corporate stock, including each class of Common Stock
and Preferred Stock of such Person; and
	 
	 	(b)	 	with respect to any Person that is not a corporation, any and
all partnership, membership or other equity interests of such Person.

(15) “Capitalized Lease Obligation” means, as to any Person, the obligations of such Person under a
lease that are required to be classified and accounted for as capital lease obligations under GAAP
and, for purposes of this definition, the amount of such obligations at any date shall be the
capitalized amount of such obligations at such date, determined in accordance with GAAP.

(16) “Certificated Security” means any Debt Security issued under this Indenture in
fully-registered, certificated form (other than a Global Security).

(17) “Change of Control” means the occurrence of one or more of the following events:

	 	(a)	 	any “person,” including its Affiliates and associates, or any
“group,” in each case, other than NNC, any one or more Subsidiaries of NNC or
NNC’s or such Subsidiaries’ employee benefit plans, files a Schedule 13D or
Schedule TO (or any successor schedule, form or report under the Exchange Act)
disclosing that such person or group has become the “beneficial owner” of 50%
or more of the combined voting power of NNC’s Capital Stock having ordinary
power to elect directors, or has the power to, directly or indirectly, elect a
majority of the members of the 

4

 

	 	 	 	NNC’s Board of Directors; provided that the
foregoing shall not apply if as a result of, and immediately following, the
transaction giving a person or group such beneficial ownership (including an
exchange offer or a transaction referred to in clause (c) below), the holders
of the Issuer’s or NNC’s Common Stock immediately prior to such transaction
are, directly or indirectly, the beneficial owners of at least a majority of
the total voting power in the aggregate of all classes of Capital Stock of such
Person;
	 
	 	(b)	 	NNC ceases to be the “beneficial owner” of 100% of the voting
power of the Common Stock of the Issuer;
	 
	 	(c)	 	there shall be consummated any share exchange, amalgamation,
consolidation or merger of NNC pursuant to which NNC’s Common Stock would be
converted into cash, securities or other property, or the Issuer or NNC sells,
assigns, conveys, transfers, leases or otherwise disposes of all or
substantially all of its assets, in each case other than pursuant to a share
exchange, amalgamation, consolidation or merger of the Issuer or NNC in which
the holders of the Issuer’s or NNC’s Common Stock immediately prior to the
share exchange, amalgamation, consolidation or merger have, directly or
indirectly, at least a majority of the total voting power in the aggregate of
all classes of Capital Stock of the continuing or surviving corporation (or of
the parent of such continuing or surviving corporation) immediately after the
share exchange, amalgamation, consolidation or merger; or
	 
	 	(d)	 	the Issuer or NNC is dissolved or liquidated.

For purposes of this “Change of Control” definition:

	 	(i)	 	“person” or “group” has the meaning given to it for purposes of
Sections 13(d) and 14(d) of the Exchange Act or any successor provisions, and
the term “group” includes any group acting for the purpose of acquiring,
holding or disposing of securities within the meaning of Rule 13d-5(b)(1) under
the Exchange Act or any successor provision;
	 
	 	(ii)	 	a “beneficial owner” will be determined in accordance with Rule
13d-3 under the Exchange Act, as in effect on the date of this Indenture; and
	 
	 	(iii)	 	the number of shares of the Issuer’s voting stock outstanding
will be deemed to include, in addition to all outstanding shares of the
Issuer’s voting stock and unissued shares deemed to be held by the “person” or
“group” or other person with respect to which the Change of Control
determination is being made, all unissued shares deemed to be held by all other
persons.

     Notwithstanding the foregoing, any (A) amalgamation, consolidation or merger of NNC
with or into the Issuer (whether directly or indirectly by merger with or into an entity
with only nominal assets created in anticipation or contemplation of such

5

 

amalgamation,
consolidation or merger), (B) transfer of assets solely between or among NNC, the Issuer and
any successor entity to NNC or the Issuer or (C) liquidation or dissolution of NNC or the
Issuer resulting in the transfer of all of the assets of NNC or the Issuer to NNC, the
Issuer or any successor entity to NNC or the Issuer shall, in each case, not constitute a
Change of Control; provided that such transaction does not contravene the terms of Article
Eight of this Indenture.

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

(19) “Common Stock” of any Person means any and all shares, interests or other participations in,
and other equivalents (however designated and whether voting or non-voting) of, such Person’s
common equity interests, whether outstanding on the date of this Indenture or issued after the date
of this Indenture, and includes, without limitation, all series and classes of such equity
interests.

(20) “Consolidated Fixed Charge Coverage Ratio” means the ratio of (i) Adjusted EBITDA of NNC
during the four full fiscal quarters (the “Four Quarter Period”) ending prior to the date of the
transaction (the “Transaction Date”) giving rise to the need to calculate the Consolidated Fixed
Charge Coverage Ratio for which financial statements are publicly available to (ii) Consolidated
Fixed Charges for such Four Quarter Period. In addition to and without limitation of the
foregoing, for purposes of this definition, “Adjusted EBITDA” and “Consolidated Fixed Charges”
shall be calculated after giving effect on a pro forma basis (as reasonably estimated by NNC) for
the period of such calculation to:

	 	(a)	 	the incurrence of any Funded Debt of NNC or any of its
Subsidiaries giving rise to the need to make such calculation and any
incurrence or repayment of other Funded Debt (and the application of the
proceeds thereof), other than the incurrence or repayment of Funded Debt in the
ordinary course of business for working capital purposes pursuant to working
capital facilities, occurring during the Four Quarter Period or at
any time subsequent to the last day of the Four Quarter Period and on or
prior to the Transaction Date, as if such incurrence or repayment, as the
case may be (and the application of the proceeds thereof), occurred on the
first day of the Four Quarter Period; and
	 
	 	(b)	 	(i) any asset sale during the Four Quarter Period involving
the sale of a Subsidiary or line of business by NNC or any of its Subsidiaries,
in each case, that accounted for at least $150,000,000 of NNC’s consolidated
revenue for the Four Quarter Period and (ii) any Asset Acquisition by NNC or
any of its Subsidiaries during the Four Quarter Period which would have
accounted for at least $150,000,000 of NNC’s consolidated revenue for the Four
Quarter Period, in each case, so as to exclude or include, as the case may be,
NNC’s good faith estimate of any Adjusted EBITDA (including any pro forma
expense and cost reductions calculated on a basis consistent with Regulation
S-X under the Exchange Act) 

6

 

	 	 	 	attributable to the assets which are the subject of
such asset sale or Asset Acquisition, as if such asset sale or Asset
Acquisition occurred on the first day of the Four Quarter Period.

     If NNC or any of its Subsidiaries directly or indirectly guarantees Funded Debt of a third
Person, the preceding sentence shall give effect to the incurrence of such guaranteed Funded Debt,
without duplication, as if NNC or any Subsidiary of NNC had directly incurred or otherwise assumed
such guaranteed Funded Debt.

     Furthermore, in calculating the “Consolidated Fixed Charge Coverage Ratio”:

	 	(i)	 	for purposes of determining the numerator (but not the denominator) of this
“Consolidated Fixed Charge Coverage Ratio,” interest income determined on a fluctuating
basis as of the Transaction Date and which will continue to be so determined
thereafter, shall be deemed to have accrued at a fixed rate per annum equal to the
applicable rate of interest in effect on the Transaction Date;
	 
	 	(ii)	 	for purposes of determining the denominator (but not the numerator) of this
“Consolidated Fixed Charge Coverage Ratio,” interest on outstanding Funded Debt,
determined on a fluctuating basis as of the Transaction Date and which will continue to
be so determined thereafter, shall be deemed to have accrued at a fixed rate per annum
equal to the applicable rate of interest in effect on the Transaction Date; and
	 
	 	(iii)	 	notwithstanding clause (i) or (ii) above, interest on Funded Debt determined
on a fluctuating basis, to the extent such interest is covered by agreements relating
to Interest Swap Obligations, shall be deemed to accrue at the rate per annum resulting
after giving effect to the operation of such agreements.

	(21)	 	“Consolidated Fixed Charges” means, for any period, the sum, without duplication, of:

	 	(a)	 	Consolidated Interest Expense for such period; plus
	 
	 	(b)	 	the amount of all dividends on any series of Disqualified
Capital Stock (including the Existing Preferred Stock) or Designated Qualified
Preferred Stock of NNC or its Subsidiaries paid, declared or accrued during
such period multiplied, to the extent such dividend payments are not a
deduction to the federal income tax liabilities of NNC or its applicable
Subsidiary, by a fraction, the numerator of which is one and the denominator of
which is one minus the then current effective consolidated federal, state and
local tax rate of NNC or such Subsidiary, expressed as a decimal.

(22) “Consolidated Interest Expense” means, for any period, total interest expense (including that
portion attributable to Capitalized Lease Obligations in accordance with GAAP) of NNC and its
Subsidiaries for such period, on a consolidated basis, determined in accordance with GAAP (without
duplication).

7

 

(23) “Consolidated Net Income” means, with respect to NNC, for any period, the aggregate net income
(or loss) of NNC and its Subsidiaries for such period on a consolidated basis, determined in
accordance with GAAP; provided that there shall be excluded therefrom (without duplication):

	 	(a)	 	net after-tax gains or losses classified in NNC’s consolidated
statement of operations as gains or losses on the sale of businesses or assets;
	 
	 	(b)	 	net after-tax items classified as extraordinary gains or
losses;
	 
	 	(c)	 	the net after-tax expense (or gain) resulting from any payment,
distribution or accrual in connection with the settlement of, or satisfaction
of any judgment resulting from, any shareholder litigation or regulatory or law
enforcement investigation, in each case, relating to circumstances described in
the Disclosure Materials;
	 
	 	(d)	 	the net income (but not loss) of any Subsidiary of NNC (other
than the Issuer or any Guarantor) to the extent that (i) the declaration of
dividends by such Subsidiary of that income is prohibited by a contract,
operation of law (other than as a result of any solvency or minimum capital
requirement) or applicable judgment and (ii) such net income cannot otherwise
be distributed or transferred to NNC;
	 
	 	(e)	 	the net income or loss of any Person that is not a Subsidiary
of NNC, and any joint ventures in which NNC or any Subsidiary is a party,
except to the extent of cash dividends or distributions paid to NNC or to a
Subsidiary of NNC by such Person;
	 
	 	(f)	 	after-tax income or loss attributable to discontinued
operations;
	 
	 	(g)	 	the cumulative effect of changes in accounting principles; and
	 
	 	(h)	 	for purposes of calculating Consolidated Net Income pursuant to
clause (iii) of Section 1007(b) only, in the case of a successor to NNC by
consolidation, amalgamation or merger or as a transferee of assets of NNC or
the Issuer, as applicable, the net income (but not loss) of the successor
corporation prior to such consolidation, amalgamation, merger or transfer of
assets (other than the successor of a merger, amalgamation or consolidation of
the Issuer with or into NNC or any Subsidiary of NNC or of NNC into any
Subsidiary of NNC).

(24) “Consolidated Net Tangible Assets” means NNC’s consolidated total assets after deducting
therefrom (i) all current liabilities and (ii) all goodwill, trade names, trademarks, patents,
unamortized debt discount and expense and other like intangible assets, as shown in NNC’s then most
recent consolidated balance sheet prepared in accordance with GAAP contained in (x) NNC’s most
recent annual or quarterly report on Form 10-K or Form 10-Q, as applicable, as filed with the
Commission or (y) if NNC is no longer subject to reporting

8

 

requirements under the Exchange Act,
NNC’s most recent annual or quarterly financial statements certified by NNC’s chief financial
officer.

(25) “Corporate Trust Office” means the principal corporate trust office of the Trustee at which at
any particular time its corporate trust business shall be administered.

(26) “corporation” includes corporations, associations, companies and business trusts.

(27) “Credit Enhanced Foreign Subsidiary Debt” means any Funded Debt of a Foreign Subsidiary
payable to a financial institution that has (a) sold a participation for cash consideration in the
full principal amount of such Funded Debt to NNC, the Issuer or any other Subsidiary of NNC or (b)
a Lien on or right of set-off against deposits of cash, cash equivalents or investment securities
of NNC, the Issuer or any other Subsidiary of NNC; provided that, in the case of clause (b) above,
the principal amount of such Funded Debt does not exceed the amount of cash, cash equivalents or
investment securities so deposited.

(28) “Debt Securities” means Debt Securities issued by NNL and guaranteed by the Guarantors and
authenticated and delivered under this Indenture.

(29) “Default” means an event or condition the occurrence of which is, or with the lapse of time or
the giving of notice or both would be, an Event of Default.

(30) “Defaulted Interest” has the meaning specified in Section 312.

(31) “Depositary” means, with respect to the Debt 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
by the Issuer pursuant to Section 301 until a successor Depositary shall have become such pursuant
to the applicable provisions of this Indenture, and thereafter “Depositary” shall mean or include
each Person who is then a Depositary hereunder, and if at any time there is more
than one such Person, “Depositary” as used with respect to the Debt Securities of any such series
shall mean the Depositary with respect to the Debt Securities of that series.

(32) “Designated Qualified Preferred Stock” means any Preferred Stock consisting of Qualified
Capital Stock issued by NNC or any of its Subsidiaries that is designated as such by NNC by an
officers’ certificate delivered to the Trustee; provided that, immediately after giving effect to
the issuance thereof, the Consolidated Fixed Charge Coverage Ratio is greater than 2.0 to 1.0.

(33) “Disclosure Materials” means the Offering Memorandum of NNL, dated July 5, 2006, (the
“Offering Memorandum”) and all materials disclosed in, incorporated by reference in or contemplated
by the Offering Memorandum.

(34) “Disqualified Capital Stock” means, with respect to the Debt Securities of any series, that
portion of any Capital Stock which, by its terms (or by the terms of any security into which it is
convertible or for which it is exchangeable at the option of the holder thereof), or upon the
happening of any event (other than an event which would constitute an asset sale or Change of
Control), matures or is mandatorily redeemable (other than such Capital Stock that will be redeemed
with Qualified Capital Stock), pursuant to a sinking fund obligation or otherwise, or is

9

 

redeemable
at the sole option of the holder thereof (except, in each case, upon the occurrence of an asset
sale or Change of Control) on or prior to the final Maturity of the Debt Securities of such series.

(35) “Dollar” or “$,”, unless otherwise indicated, means the lawful currency of the United States
of America.

(36) “DTC” means The Depository Trust Company, its nominees and their respective successors and
assigns, or such other depositary institution hereinafter appointed by the Issuer that is a
clearing agency registered under the Exchange Act.

(37) “Event of Default” has the meaning specified in Section 501.

(38) “Exchange Act” means the United States Securities Exchange Act of 1934, as amended, or any
successor statute or statutes thereto.

(39) “Exchange Debt Securities” means (a) any Debt Securities issued in exchange for Initial Debt
Securities or Additional Debt Securities pursuant to an Exchange Offer or any other registration
under the Securities Act and (b) any Debt Security with respect to which the next preceding
Predecessor Security of such Debt Security was an Exchange Debt Security.

(40) “Exchange Offer” when used with respect to the Debt Securities of any series issued with
Registration Rights, means an exchange offer by the Issuer pursuant to which Initial Debt
Securities may be exchanged for Exchange Debt Securities evidencing the same, continuing
indebtedness as the Initial Debt Securities registered under the Securities Act.

(41) “Exchange Rate” means: (i) with respect to payments in Dollars to be made on Debt Securities
denominated in a Foreign Currency, the noon buying rate for that currency for wire transfers quoted
in The City of New York on the Regular Record Date or Special Record Date with respect to such
Interest Payment Date or date for payment of Defaulted Interest or the fifteenth day immediately
preceding the maturity of an installment of principal, as the case may be, as certified for customs
purposes by the Federal Reserve Bank of New York; (ii) with respect to payments in a Foreign
Currency to be made on Debt Securities denominated in Dollars, the noon Dollar buying rate for that
currency for wire transfers quoted in The City of New York on the Regular Record Date or Special
Record Date with respect to such Interest Payment Date or date for payment of Defaulted Interest or
the fifteenth day immediately preceding the maturity of an installment of principal, as the case
may be, as certified for customs purposes by the Federal Reserve Bank of New York; and (iii) with
respect to payments in a Foreign Currency to be made on Debt Securities denominated in a different
Foreign Currency, the exchange rate between such Foreign Currencies determined in the manner
specified pursuant to Section 301(b)(14). If for any reason such rates are not available with
respect to one or more currencies for which an Exchange Rate is required, the Trustee shall use
such quotation of the Federal Reserve Bank of New York as of the most recent available date, or
quotations from one or more major banks in The City of New York or in the country of issue of the
currency in question, or such other quotations as the Trustee shall deem appropriate, such banks
being satisfactory to the Issuer. Unless otherwise specified by the Trustee, if there is more than
one market for dealing in any currency by reason of foreign exchange regulations or otherwise, the
market to be used in respect

10

 

of such currency shall be that upon which a non-resident issuer of
securities designated in such currency would purchase such currency in order to make payments in
respect of such securities.

(42) “Exchange Rate Officers’ Certificate,” with respect to any date for the payment of principal
of (and premium, if any) and interest on any series of Debt Securities, means a certificate setting
forth the applicable Exchange Rate or Exchange Rates as of the Regular Record Date or Special
Record Date with respect to such Interest Payment Date, the date for payment of Defaulted Interest
or the fifteenth day immediately preceding the maturity of an installment of principal, as the case
may be, and the amounts payable in Dollars and Foreign Currencies in respect of the principal of
(and premium, if any) and interest on Debt Securities denominated in any Foreign Currency, and
signed by an Authorized Officer of the Issuer and delivered to the Trustee.

(43) “Exchange Registration Statement” means, when used with respect to the Debt Securities of a
series having Registration Rights, a registration statement filed by the Issuer and the Guarantors
in accordance with the Issue Date Registration Rights Agreement or any other Registration Rights
Agreement entered into with respect to such Debt Securities.

(44) “Excluded Holder” has the meaning specified in Section 313.

(45) “Existing NNC Convertible Notes” means the 4.25% Convertible Senior Notes due September 1,
2008 issued by NNC and guaranteed by NNL pursuant to the Indenture dated as of August 15, 2001
among NNC, as issuer, NNL, as guarantor, and Deutsche Bank Trust Company Americas, as successor to
The Bankers Trust Company, as trustee.

(46) “Existing Preferred Stock” means the Issuer’s Cumulative Redeemable Class A Preferred Shares
Series 5, of which 16,000,000 shares are outstanding on the date of this Indenture (and the
Issuer’s Redeemable Class A Preferred Shares Series 6 into which such shares are convertible), and
Non-cumulative Redeemable Class A Preferred Shares Series 7, of which 14,000,000 shares are
outstanding on the date of this Indenture (and the Issuer’s Non-Cumulative Redeemable Class A
Preferred Shares Series 8 into which such shares are convertible), in each case as the same may be
amended from time to time.

(47) “Foreign Currency” means a currency issued by the government of any country other than the
United States of America.

(48) “Foreign Subsidiary” means a Subsidiary of NNC organized under the laws of a jurisdiction
outside the United States of America and Canada.

(49) “Funded Debt” means with respect to any Person, without duplication:

	 	(a)	 	all indebtedness of such Person for borrowed money;
	 
	 	(b)	 	all indebtedness of such Person evidenced by bonds, debentures,
notes or other similar instruments;
	 
	 	(c)	 	all Capitalized Lease Obligations of such Person;

11

 

	 	(d)	 	guarantees of indebtedness of another Person of the type
referred to in clauses (a) through (c) above and clause (e) below (each such
guarantee to constitute Funded Debt in an amount equal to the maximum amount of
such other Person’s Funded Debt guaranteed thereby);
	 
	 	(e)	 	all indebtedness of any other Person of the type referred to in
clauses (a) through (d) which is secured by any Lien on any property or asset
of such Person, the amount of such indebtedness being deemed to be the lesser
of the fair market value of such property or asset and the amount of the
indebtedness so secured; and
	 
	 	(f)	 	all Disqualified Capital Stock (including the Existing
Preferred Stock) and Designated Qualified Preferred Stock issued by such Person
with the amount of Funded Debt represented thereby being equal to the greater
of its voluntary or involuntary liquidation preference and its maximum fixed
repurchase price, if any, but excluding accrued dividends, if any.

     For greater certainty, (i) proceeds received in respect of any factoring, securitization, sale
of receivables or similar transaction, (ii) obligations in respect of the performance of bids,
trade contracts, leases, statutory obligations, surety and appeal bonds, performance bonds and
obligations of a like nature, (iii) guarantees of, and indemnity arrangements with respect to,
obligations described in clauses (i) and (ii) of this paragraph, or (iv) obligations under letters
of credit and letters of guarantee issued to support (A) trade or performance obligations, (B)
obligations under operating leases or (C) contingent obligations arising in connection with
the settlement of any shareholder litigation or regulatory or criminal investigation, or
satisfaction of any judgment resulting therefrom, will not be considered Funded Debt.

     For purposes hereof, the “maximum fixed repurchase price” of any Disqualified Capital Stock
that does not have a fixed repurchase price shall be calculated in accordance with the terms of
such Disqualified Capital Stock as if such Disqualified Capital Stock were purchased on any date on
which Funded Debt shall be required to be determined pursuant to this Indenture, and if such price
is based upon, or measured by, the fair market value of such Disqualified Capital Stock shall be
determined in accordance with the definition thereof.

     Accrual of interest, accrual of dividends, the accretion of accreted value, the payment of
interest in the form of additional Funded Debt and the payment of dividends in the form of
additional shares of Preferred Stock will not be deemed to be an incurrence of Funded Debt. The
amount of any Funded Debt outstanding as of any date shall be (i) the accreted value of the Funded
Debt, in the case of any Funded Debt issued with original issue discount or (ii) the principal
amount or liquidation preference of such Funded Debt, in any other case.

     For purposes of determining compliance with any U.S. dollar-denominated restriction on the
incurrence of Funded Debt, the U.S. dollar-equivalent principal amount of Funded Debt denominated
in a Foreign Currency shall be calculated based on the relevant currency exchange rate in effect on
the date such Funded Debt was incurred, in the case of term Funded Debt, or first committed, in the
case of revolving credit Funded Debt. Notwithstanding any other provision of Section 1006 of this
Indenture, the maximum amount of Funded Debt that NNC, the Issuer or the Guarantors may incur
pursuant to Section 1006 of this Indenture shall not be

12

 

deemed to be exceeded solely as a result of
fluctuations in the exchange rate of currencies. The principal amount of any Funded Debt incurred
to Refinance other Funded Debt, if incurred in a different currency from the Funded Debt being
Refinanced, shall be calculated based on the currency exchange rate applicable to the currencies in
which such Refinancing Funded Debt is denominated that is in effect on the date of such
Refinancing.

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

(51) “Global Security” means a Debt Security evidencing all or part of a series of Debt Securities,
issued to the Depositary for such series in accordance with Section 303 and bearing the appropriate
legend prescribed in Section 303.

(52) “Guarantee” means the guarantee of each of the Guarantors as endorsed on each Global Security
and Certificated Security authenticated and delivered pursuant to this Indenture and shall include
the Guarantee set forth in Section 203 of this Indenture and all other obligations and covenants of
the Guarantors contained in this Indenture and any Global Security and Certificated Security.

(53) “Guarantor” means each of (a) Nortel Networks Corporation, (b) at any time other than during a
Suspension Period, Nortel Networks Inc. and (c) any successor corporation to a Guarantor that has
become a Guarantor pursuant to the applicable provisions of this Indenture.

(54) “Guarantor Request” means a written request or order signed in the name of a Guarantor by, in
the case of NNC, any two of its President and Chief Executive Officer, General Counsel, Chief Legal
Officer, Chief Operating Officer and Chief Financial Officer or any one of the aforesaid officers
together with any one of its Authorized Officers, or, in the case of NNI, any one of its Authorized
Officers and, in each case, delivered to the Trustee.

(55) “Holder,” with respect to a Debt Security, means the Person in whose name such Debt Security
is registered in the Security Register.

(56) “Indenture” means this instrument as originally executed or as it may from time to time be
supplemented, amended or restated by or pursuant to one or more indentures supplemental hereto
entered into pursuant to the applicable provisions hereof and, unless the context otherwise
requires, shall include the terms of a particular series of Debt Securities established as
contemplated by Section 301.

(57) “Initial Purchasers” means J.P. Morgan Securities Inc., Citigroup Global Markets Inc., ABN
AMRO Incorporated, Credit Suisse Securities (USA) LLC and Deutsche Bank Securities Inc.

(58) “Initial Debt Securities,” when used with respect to the Debt Securities of any series having
Registration Rights, means the Debt Securities of such series issued upon original

13

 

issuance and all
Debt Securities, other than Exchange Debt Securities, issued upon the registration of transfer,
exchange or partial redemption of Initial Debt Securities.

(59) “interest,” when used with respect to an Original Issue Discount Security that by its terms
bears stated interest only after Maturity, refers to interest payable after Maturity.

(60) “Interest Payment Date,”, with respect to any Debt Security, means the Stated Maturity Date of
an installment of interest on such Debt Security.

(61) “Interest Swap Obligations” means the obligations of any Person pursuant to any arrangement
with any other Person, whereby, directly or indirectly, such Person is entitled to receive from
time to time periodic payments calculated by applying either a floating or a fixed rate of interest
on a stated notional amount in exchange for periodic payments made by such other Person calculated
by applying a fixed or a floating rate of interest on the same notional amount and shall include,
without limitation, interest rate swaps, caps, floors, collars and similar agreements.

(62) “Investment Grade Status,”, with respect to the Debt Securities of any series, shall occur
when the Debt Securities of such series have both (a) a rating of “BBB-” or higher from S&P and (b)
a rating of “Baa3” or higher from Moody’s, and each such rating shall have been published by the
applicable agency, in each case with no negative outlook.

(63) “Issue Date” means the date of original issue of any Initial Debt Securities.

(64) “Issue Date Registration Rights Agreement” means the registration rights agreement dated as of
the date of this Indenture among the Issuer, the Guarantors and the Initial Purchasers.

(65) “Issuer” has the meaning assigned to such term in the first paragraph of this Indenture.

(66) “Issuer Request” and “Issuer Order” mean, respectively, a written request or order signed in
the name of the Issuer by an Authorized Officer of the Issuer and delivered to the Trustee.

(67) “Lien” means any mortgage, hypothec, pledge, lien, security interest, privilege, floating
charge, conditional sale or other title retention agreement or other similar encumbrance securing
indebtedness for borrowed money. For greater certainty, “Lien” does not include any such
encumbrance covering receivables or other assets an interest in which has been transferred to a
third party in a factoring, securitization or similar transaction that is accounted for as a sale
under GAAP.

(68) “Managed Service Contract Liens” means any Lien in favor of a customer of NNC or any of its
Subsidiaries and/or a third party financing company relating to equipment owned by NNC or any of
its Subsidiaries that is (a) used by such customer in the conduct of its business and (b) managed
by NNC or any of its Subsidiaries under a managed services or hosting services contract between NNC
or any of its Subsidiaries, such customer and/or such third party financing company.

(69) “Maturity,” when used with respect to any Debt Security, means the date on which the principal
of such Debt Security becomes due and payable as therein or herein provided, whether

14

 

at the Stated Maturity Date or by declaration of acceleration, call for redemption, repayment
at the option of the Holder or otherwise.

(70) “Measurement Date” means March 31, 2006.

(71) “Moody’s” means Moody’s Investors Service, Inc. and its successors.

(72) “NGSH” means Nortel Government Solutions Holding Corporation, a Delaware corporation, and any
successor corporation thereto.

(73) “NNC” has the meaning specified in the preamble hereto.

(74) “NNCC” means Nortel Networks Capital Corporation, a Delaware corporation, and any successor
corporation thereto.

(75) “NNI” has the meaning specified in the preamble hereto.

(76) “NNL” has the meaning specified in the preamble hereto.

(77) “Officers’ Certificate” means a certificate signed by, in the case of NNC or NNL, any two of
its President and Chief Executive Officer, General Counsel, Chief Legal Officer, Chief Operating
Officer and Chief Financial Officer or any one of the aforesaid officers together with any one of
its Authorized Officers, and, in the case of NNI, any one of its Authorized Officers and, in each
case, delivered to the Trustee.

(78) “Opinion of Counsel” means a written opinion of counsel, who may be counsel to or an employee
of the Issuer or a Guarantor or both, which opinion shall be subject to customary assumptions and
qualifications.

(79) “Original Issue Discount Security” means any Debt Security that is issued with “original issue
discount” within the meaning of Section 1273(a) of the United States Internal Revenue Code of 1986
and the regulations thereunder and any other Debt Security designated by the Issuer as issued with
original issue discount for United States federal income tax purposes.

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

	 	(a)	 	Debt Securities theretofore cancelled by the Trustee or
delivered to the Trustee for cancellation;
	 
	 	(b)	 	Debt Securities for whose payment or redemption money in the
necessary amount has been theretofore deposited with the Trustee or any Paying
Agent (other than the Issuer or a Guarantor) in trust or set aside and
segregated in trust by the Issuer or a Guarantor (if the Issuer or a Guarantor
shall act as its own Paying Agent) for the Holders of such Debt Securities;
provided that if such Debt Securities are to be redeemed, notice of such
redemption has been duly given pursuant to this Indenture or provision therefor
satisfactory to the Trustee has been made; and

15

 

	 	(c)	 	Debt Securities that have been surrendered to the Trustee
pursuant to Section 311 or in exchange for or in lieu of which other Debt
Securities have been authenticated and delivered pursuant to this Indenture,
other than any such Debt Securities in respect of which there shall have been
presented to the Trustee proof that such Debt Securities are held by a bona
fide purchaser in whose hands such Debt Securities are valid and binding
obligations of the Issuer;

provided that in determining whether the Holders of the requisite principal amount of Outstanding
Debt Securities have taken any Act hereunder, Debt Securities owned by the Issuer or any other
obligor upon the Debt Securities or any Affiliate of the Issuer or of such other obligor shall be
disregarded and deemed not to be Outstanding; provided further that, in determining whether the
Trustee shall be protected in relying upon such Act, only Debt Securities that a Responsible
Officer of the Trustee knows to be so owned shall be so disregarded; and provided further that Debt
Securities so owned that have been pledged in good faith may be regarded as Outstanding if the
pledgee establishes to the satisfaction of the Trustee the pledgee’s right to act with respect to
such Debt Securities and that the pledgee is not the Issuer or any other obligor upon the Debt
Securities or any Affiliate of the Issuer or of such other obligor.

(81) “Participant” means, with respect to the Depositary, a Person who has a direct account with
the Depositary.

(82) “Paying Agent” means any Person authorized by the Issuer to pay the principal of (and premium,
if any) or interest on any Debt Securities on behalf of the Issuer.

(83) “Permitted Funded Debt” means, without duplication, each of the following:

	 	(a)	 	Funded Debt under the Debt Securities issued on the date of
this indenture and any Exchange Debt Securities issued with respect to such
Debt Securities;
	 
	 	(b)	 	Funded Debt incurred to finance the acquisition, improvement or
construction of assets that is secured by Purchase Money Liens on the assets so
acquired, improved or constructed;
	 
	 	(c)	 	Funded Debt of NNC, the Issuer and/or any Subsidiary of NNC
outstanding on the date of this Indenture;
	 
	 	(d)	 	Funded Debt of NNC, the Issuer and/or any Subsidiary of NNC to
NNC, the Issuer and/or any Subsidiary of NNC;
	 
	 	(e)	 	Funded Debt of NNC, the Issuer and/or any Subsidiary of NNC
owing to any joint-venture in which NNC, the Issuer or such Subsidiary has a
minority holding;

16

 

	 	(f)	 	any guarantee of Funded Debt by NNC, the Issuer or any
Subsidiary of NNC so long as the incurrence of such Funded Debt would otherwise
be permitted or is otherwise not restricted under this Indenture;
	 
	 	(g)	 	Refinancing Funded Debt;
	 
	 	(h)	 	any Credit Enhanced Foreign Subsidiary Debt and any Funded Debt
arising out of the deposit of cash or cash equivalents to secure any Credit
Enhanced Foreign Subsidiary Debt;
	 
	 	(i)	 	additional Funded Debt of NNC, the Issuer and any Subsidiary of
NNC in an aggregate outstanding principal amount not to exceed, after giving
effect to the relevant transaction, $250,000,000;
	 
	 	(j)	 	any other Funded Debt of any Foreign Subsidiary; provided that
the aggregate outstanding principal amount of Funded Debt issued or assumed
pursuant to this clause (j) by any individual Foreign Subsidiary would not,
after giving effect to the relevant transaction, exceed $5,000,000; and
	 
	 	(k)	 	Funded Debt in an aggregate outstanding principal amount not to
exceed 15% of Consolidated Net Tangible Assets after giving effect to any such
incurrence of Funded Debt under this clause (k).

     For purposes of determining compliance with Section 1006 of this Indenture, in the event that
an item of Funded Debt meets the criteria of more than one of the categories of Permitted Funded
Debt other than clause (c) above or is entitled to be incurred pursuant to the Consolidated Fixed
Charge Coverage Ratio provisions of such covenant, the Issuer or the applicable Guarantor shall, in
its sole discretion, classify such item of Funded Debt in any manner that complies with such
covenant. In addition, the Issuer or the applicable Guarantor may, at any time, change the
classification of an item of Funded Debt (or any portion thereof) to any other clause, and may
classify an item in part under any one or more of the clauses listed above, or in whole or in part
to Section 1006(a) of this Indenture; provided that NNC, the Issuer or any other Subsidiary of NNC
would be permitted to incur such item of Funded Debt (or portion thereof) pursuant to such other
clause or clauses, as the case may be, or Section 1006(a) of this Indenture, as the case may be, at
such time of reclassification. Accrual of interest, accretion or amortization of original issue
discount or other discounts or premiums, the payment of interest on any Funded Debt in the form of
additional Funded Debt with the same terms, and the payment of dividends on Disqualified Capital
Stock or Designated Qualified Preferred Stock in the form of additional shares of the same class of
Disqualified Capital Stock or Designated Qualified Preferred Stock and any other changes in
reported Funded Debt required by GAAP and other non-cash changes in Funded Debt due to fluctuations
in currency exchange rates, will not be deemed to be an incurrence of Funded Debt or an issuance of
Disqualified Capital Stock or Designated Qualified Preferred Stock for purposes of Section 1006 of
this Indenture.

(84) “Person” means an individual, partnership, corporation, limited liability company,
unincorporated organization, trust or joint venture, or a governmental agency or political
subdivision thereof.

17

 

(85) “Place of Payment” means: (i) when used with respect to the Debt Securities of any series
payable in Dollars, the Corporate Trust Office of the Trustee in the Borough of Manhattan, The City
and State of New York; and (ii) when used with respect to the Debt Securities of any series payable
in a Foreign Currency, the other place or places, if any, where the principal of (and premium, if
any) and interest on the Debt Securities of that series are payable as specified as contemplated by
Section 301.

(86) “Predecessor Security” of any particular Debt Security means every previous Debt Security
evidencing all or a portion of the same debt as that evidenced by such particular Debt Security;
and, for the purposes of this definition, any Debt Security authenticated and delivered under
Section 311 in lieu of a lost, destroyed or stolen Debt Security shall be deemed to evidence the
same debt as the lost, destroyed or stolen Debt Security.

(87) “Preferred Stock” of any Person means any Capital Stock of such Person that has preferential
rights to any other Capital Stock of such Person with respect to dividends or redemptions or upon
liquidation.

(88) “Purchase Money Lien” means any Lien on property existing at the time of acquisition thereof
by NNC or any Subsidiary of NNC; any Lien on any property acquired, constructed or improved by NNC
or any Subsidiary of NNC incurred subsequent to the date of this Indenture, which is created or
assumed contemporaneously with, or within 180 days after, such acquisition or the completion of
such construction or improvement, to secure or provide for the payment of the purchase price
thereof or the cost of construction or improvement thereon incurred subsequent to the date of this
Indenture (including the cost of any underlying real property); provided that in the case of any
such acquisition, construction or improvement, the Lien shall not apply to any property previously
owned by NNC or any Subsidiary of NNC, other than, in the case of any such construction or
improvement, any real property, theretofore substantially unimproved for the purposes of NNC or any
Subsidiary of NNC, on which the property so constructed, or the improvement, is located and other
than any machinery or equipment installed at any time so as to constitute immovable property or a
fixture on the real property on which the property so constructed, or the improvement, is located.

(89) “QIB” means any “qualified institutional buyer” as defined in Rule 144A.

(90) “Qualified Capital Stock” means any Capital Stock that is not Disqualified Capital Stock.

(91) “Qualified Equity Proceeds” means the net cash proceeds from any issuance or sale of Qualified
Capital Stock of NNC or NNL, other than issuances or sales to NNC or any Subsidiary of NNC.

(92) “Redemption Date,” when used with respect to any Debt Security to be redeemed, means the date
fixed for such redemption by or pursuant to this Indenture.

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

(94) “Refinance” means, with respect to any security or Funded Debt, to refinance, extend, renew,
refund, repay, prepay, redeem, defease or retire, or to issue a security or any Funded Debt

18

 

in
exchange or replacement for, such security or Funded Debt in whole or in part. “Refinanced” and
“Refinancing” have correlative meanings.

(95) “Refinancing Funded Debt” means any Refinancing by NNC, the Issuer or any other Subsidiary of
NNC of Funded Debt permitted by Section 1006 of this Indenture (other than pursuant to clauses (d),
(e), (f), (h), (i), (j) or (k) of the definition of “Permitted Funded Debt”), in each case that
does not:

	 	(a)	 	result in an increase in the aggregate principal amount of
Funded Debt of such Person as of the date of such proposed Refinancing (plus
the amount of any premium required to be paid under the terms of the instrument
governing such Funded Debt and plus the amount of reasonable expenses incurred
by NNC, the Issuer or any other Subsidiary of NNC in connection with such
Refinancing); or
	 
	 	(b)	 	create Funded Debt with either (i) a Weighted Average Life to
Maturity that is less than the Weighted Average Life to Maturity of the Funded
Debt being Refinanced or (ii) a final maturity earlier than the final Maturity
of any Debt Security.

(96) “Registration Rights,” when used with respect to any Debt Security, means that such Debt
Security has the benefit of a Registration Rights Agreement entered into in connection with the
issuance of such Debt Security.

(97) “Registration Rights Agreement” means any registration rights agreement among the Issuer, the
Guarantors and one or more investment banks acting as initial purchasers in connection with any
issuance of Debt Securities under this Indenture, including the Issue Date Registration Rights
Agreement.

(98) “Registration Statement” means an effective Exchange Registration Statement or Shelf
Registration Statement.

(99) “Regular Record Date” for the interest payable on any Interest Payment Date on the Debt
Securities of any series means the date specified for that purpose as contemplated by Section 301.

(100) “Regulation S” means Regulation S under the Securities Act (or any successor provision), as
it may be amended from time to time.

(101) “Regulation S Debt Securities,” when used with respect to an identifiable series of the Debt
Securities of any series, means all Debt Securities of such series sold (whether in the original
issuance or afterwards) pursuant to Regulation S.

(102) “Regulation S Global Security” has the meaning specified in Section 301(i).

(103) “Resale Restriction Termination Date” means, (a) for any Restricted Debt Security (or
beneficial interest therein) that is not a Regulation S Debt Security, two years (or such other
period specified in Rule 144(k)) from the later of (i) the Issue Date thereof and (ii) the last
date on which the Issuer, any Guarantor or any Affiliate of the Issuer or any Guarantor was the
owner

19

 

of such Debt Securities and (b) for any Restricted Debt Securities that are Regulation S Debt
Securities (or beneficial interests in a Regulation S Global Security), 40 days after the later of
(i) the Issue Date thereof and (ii) the last date on which the Issuer, any Guarantor or any
Affiliate of the Issuer or any Guarantor was the owner of such Debt Securities.

(104) “Responsible Officer,” when used with respect to the Trustee, means any vice-president
(whether or not designated by a number or word or words added before or after the title
“vice-president”), any assistant secretary, any assistant treasurer, any trust officer or assistant
trust officer, or any other officer of the Trustee customarily performing functions similar to
those
performed by any of the above designated officers and also means, with respect to a particular
corporate trust matter, any other officer to whom such matter is referred because of his knowledge
of and familiarity with the particular subject.

(105) “Restricted Debt Securities,” when used with respect to an identifiable series of the Debt
Securities, means all Debt Securities of such series other than Exchange Debt Securities, and shall
include the Regulation S Global Security and the Rule 144A Global Security; provided that
Restricted Debt Securities of such series shall cease to be Restricted Debt Securities upon the
removal of the Restricted Debt Securities Legend.

(106) “Restricted Debt Securities Certificate” means a certificate substantially in the form set
forth in Exhibit B.

(107) “Restricted Debt Securities Legend” means, collectively, the legends substantially in the
forms of the legends required by Section 307 to be placed upon each Restricted Debt Security.

(108) “Restricted Period” means, in the case of any Regulation S Debt Securities of an identifiable
series, the period of 40 consecutive days beginning on and including the later of (i) the day on
which such Debt Securities are first offered to Persons other than distributors (as defined in
Regulation S) in reliance on Regulation S and (ii) the Issue Date for such Regulation S Debt
Securities.

(109) “Restricted Subsidiary” means (a) during a Suspension Period, NNI and NNCC, and (b) at all
other times, any Subsidiary of NNC (other than the Issuer).

(110) “Reversion Date” means, for any series of Debt Securities, the date such Debt Securities
cease to have the applicable rating from either Moody’s or S&P specified in the definition of
Investment Grade Status; provided that solely for the purpose of determining whether and when the
Reversion Date shall have occurred, a series of Debt Securities shall be deemed to have Investment
Grade Status if clauses (a) and (b) of the definition of Investment Grade Status are otherwise
satisfied, notwithstanding that either Moody’s and/or S&P shall have announced a negative outlook
with respect to such Debt Securities.

(111) “Rule 144A” means Rule 144A under the Securities Act (or any successor provision), as such
Rule 144A may be amended from time to time.

(112) “Rule 144A Debt Securities” means the Debt Securities purchased by the initial purchasers
thereof for resale pursuant to Rule 144A. Such term includes the Rule 144A Global Securities.

20

 

(113) “Rule 144A Global Security” has the meaning specified in Section 301(h).

(114) “S&P” means Standard & Poor’s Rating Service, a division of The McGraw-Hill Companies, Inc.,
and its successors.

(115) “Securities Act” means the United States Securities Act of 1933, as amended, or any successor
statute or statutes thereto.

(116) “Security Custodian” means the custodian with respect to any Global Security appointed by
DTC, or any successor Person thereto, and shall initially be the Trustee.

(117) “Security Register” has the meaning specified in Section 305.

(118) “Security Registrar” has the meaning specified in Section 305.

(119) “Shelf Registration Statement,” when used with respect to the Debt Securities of any series
having Registration Rights, means an effective shelf registration statement under the Securities
Act that registers the resale by Holders (and beneficial owners) of Initial Debt Securities (or
beneficial interests therein).

(120) “Special Record Date” for the payment of any Defaulted Interest means a date fixed by the
Trustee pursuant to Section 312.

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

(122) “Subsidiary,” with respect to any Person, means:

	 	(a)	 	any corporation of which the outstanding Capital Stock having
at least a majority of the votes entitled to be cast in the election of
directors under ordinary circumstances shall at the time be owned, directly or
indirectly, by such Person; or
	 
	 	(b)	 	any other Person of which at least a majority of the voting
interest under ordinary circumstances is at the time, directly or indirectly,
owned by such Person;

provided that none of (i) NGSH, (ii) any direct or indirect Subsidiary of NGSH or (iii) for so long
as it is a tax exempt organization under Section 501(c)(3) of the Internal Revenue Code or an
application for such status is pending, Nortel LearnIT, a Virginia non-stock corporation, shall
constitute a Subsidiary of NNC or any of its Subsidiaries for purposes of Sections 1005, 1006 and
1007 of this Indenture (or the defined terms used therein other than Consolidated Net Income and
Adjusted EBITDA) or any Event of Default.

(123) “Successor Debt Security” of any particular Debt Security as a series means every Debt
Security of such series issued after, and evidencing all or a portion of the same debt as that
evidenced by, such particular Debt Security; and, for purposes of this definition, any Debt
Security of a series authenticated and delivered under Section 311 of this Indenture in exchange

21

 

for or in lieu of a mutilated, destroyed, lost or stolen Debt Security shall be deemed to evidence
the same debt as the mutilated, destroyed, lost or stolen Debt Security.

(124) “Suspended Covenants” has the meaning specified in Section 1010.

(125) “Suspension Period” means, for any series of Debt Securities, any period (a) beginning on the
date that:

	 	(i)	 	the Debt Securities of such series have Investment Grade Status, provided that
prior to the assignment of the ratings contemplated by the definition of Investment
Grade Status, the Issuer has advised Moody’s and S&P that the Suspended Covenants will
not apply during such Suspension Period;
	 
	 	(ii)	 	no Default or Event of Default has occurred and is continuing; and
	 
	 	(iii)	 	the Issuer has delivered an Officers’ Certificate to the Trustee certifying
that the conditions set forth in clauses (i) and (ii) above are satisfied; and

(b) ending on the Reversion Date for such series of Debt Securities.

(126) “Synthetic Purchase Agreement” shall mean any derivative or similar agreement pursuant to
which NNC or any of its Subsidiaries is or may become obligated to make any payment the amount of
which is determined by reference to the price or value at any time of any Capital Stock of NNC;
provided that no phantom stock or similar plan providing for payments only to current or former
directors, officers, employees, consultants or contractors of NNC or any Subsidiary of NNC (or to
their heirs or estates or successors or assigns) shall be deemed to be a Synthetic Purchase
Agreement.

(127) “Trust Indenture Act” means the United States Trust Indenture Act of 1939 as in force at the
date as of which this Indenture was executed, except as provided in Sections 609 and 905.

(128) “Trustee” means the Person named as the “Trustee” in the first paragraph of this Indenture
until a successor Trustee shall have become such pursuant to the applicable provisions hereof, 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 Debt Securities
of any series shall mean the Trustee with respect to Debt Securities of that series.

(129) “United States” means the United States of America.

(130) “Weighted Average Life to Maturity” means, when applied to any Funded Debt at any date, the
number of years obtained by dividing (a) the then outstanding aggregate principal amount of such
Funded Debt into (b) the sum of the products obtained by multiplying (i) the amount of each
then-remaining installment, sinking fund, serial maturity or other required payment of principal,
including payment at final maturity, in respect thereof, by (ii) the number of years (calculated to
the nearest one-twelfth) which will elapse between such date and the making of such payment.

22

 

SECTION 102. Compliance Certificates and Opinions.

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

(b) Every Officers’ Certificate or Opinion of Counsel with respect to compliance with a condition
or covenant provided for in this Indenture (other than the certificate required by Section 1008)
shall include substantially: (1) a statement that each individual signing such certificate or
opinion has read such covenant or condition and the definitions herein related
thereto; (2) a brief statement as to the nature and scope of the examination or investigation upon
which the statements or opinions contained in such certificate or opinion are based; (3) a
statement that, in the opinion of each such individual, he has made such examination or
investigation as is reasonably necessary to enable him to make the statement or to express an
opinion whether such covenant or condition has been complied with; and (4) a statement whether, in
the opinion of each such individual, such condition or covenant has been complied with.

SECTION 103. Form of Documents Delivered to Trustee.

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

(b) Any Officers’ Certificate or Opinion of Counsel of the Issuer or a Guarantor may be based,
insofar as it relates to legal matters, upon a certificate or opinion of, or representations by,
counsel, unless such officer or counsel knows, or in the exercise of reasonable care should know,
that the certificate or opinion or representations with respect to the matters upon which such
certificate or opinion is based are erroneous. Any such certificate or Opinion of Counsel may be
based, insofar as it relates to factual matters, upon a certificate or opinion of, or
representations by, an officer or officers of the Issuer or such Guarantor, as the case may be,
stating that the information with respect to such factual matters is in the possession of such
certifying entity unless such counsel knows, or in the exercise of reasonable care should know,
that the certificate or opinion or representations with respect to such matters are erroneous.

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

23

 

SECTION 104. Acts of Holders.

(a) Any request, demand, authorization, direction, notice, consent, waiver or other action provided
by this Indenture to be given or taken by Holders of the Debt Securities of any series may be
embodied in and evidenced by (i) one or more instruments of substantially similar tenor signed by
such Holders in person or by an agent duly appointed in writing; (ii) the record of such Holders
voting in favor thereof, either in person or by proxies duly appointed in writing, at any meeting
of Holders of the Debt Securities of such series duly called and held in accordance with the
provisions of Article Fourteen or (iii) a combination of any such record and one or more
instruments of substantially similar tenor signed by such Holders in person or by proxies duly
appointed in writing. Except as herein otherwise expressly provided, such action shall become
effective when such record or instrument or instruments (and the action embodied therein or
evidenced thereby) are delivered to the Trustee and, where it is hereby expressly required, to the
Issuer and the Guarantors or any of them. Such record or instrument or instruments (and the action
embodied therein and evidenced thereby) are herein sometimes referred to as the “Act” of the
Holders signing such instrument or instruments or so voting at any such meeting. Proof of
execution of any such record or instrument or of a writing appointing any such agent shall be
sufficient for any purpose of this Indenture and, subject to Section 601, conclusive in favor of
the
Trustee, the Issuer and the Guarantors, if made in the manner provided in this Section. The record
of any meeting of Holders of Debt Securities shall be proved in the manner provided in Section
1406.

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

(c) The ownership of Debt Securities shall be proved by the Security Register.

(d) If the Issuer or a Guarantor shall solicit from the Holders of Debt Securities of any series
any Act, the Issuer or such Guarantor, as the case may be, may, at its option, by Board Resolution,
fix in advance a record date for the determination of Holders of Debt Securities entitled to take
such Act, but the Issuer or such Guarantor, as the case may be, shall have no obligation to do so.
Any such record date shall be fixed at the discretion of the Issuer or such Guarantor, as the case
may be. If such a record date is fixed, such Act may be sought or taken before or after the record
date, but only the Holders of record at the close of business on such record date shall be deemed
to be Holders for the purpose of determining whether Holders of the requisite proportion of Debt
Securities of such series Outstanding have authorized or agreed or consented to such Act, and for
that purpose the Debt Securities of such series Outstanding shall be computed as of such record
date.

(e) Any Act of the Holder of any Debt Security shall bind every future holder of the same Debt
Security and the Holder of every Debt Security issued upon the registration of transfer thereof or
in exchange therefor or in lieu thereof in respect of anything done, suffered or omitted

24

 

by the
Trustee, the Issuer or the applicable Guarantor in reliance thereon, whether or not notation of
such action is made upon such Debt Security.

SECTION 105. Notices, etc., to Trustee, Issuer and Guarantors.

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

	 	(1)	 	the Trustee by any Holder, the Issuer or any Guarantor shall be sufficient for
every purpose hereunder if made, given, furnished or filed in writing to or with the
Trustee at its Corporate Trust Office, Attention: Corporate Trust Department, facsimile
(212) 815-5915, or such other facsimile number as may be provided by the Trustee from
time to time, and shall be deemed to have been made at the time of actual receipt of
such written notice or facsimile transmission thereof; provided that any delivery made
or facsimile sent on a day other than a Business Day in New York shall be deemed to be
received on the next following Business Day in New York; or
	 
	 	(2)	 	the Issuer or any Guarantor by the Trustee or by any Holder shall be sufficient
for every purpose hereunder (unless otherwise herein expressly provided) if in writing
to the Issuer or such Guarantor, as the case may be, addressed to it at the address of
its executive office specified in the first paragraph of this Indenture, Attention:
Corporate Secretary of NNL, facsimile number (905) 863-8386, in the case of NNC, NNL or
NNI or at any other address or facsimile number previously furnished in writing to the
Trustee by the Issuer or such Guarantor, as the case may be, and shall be deemed to
have been made at the time of delivery or facsimile transmission; provided that any
delivery made or facsimile sent on a day other than a Business Day in Research Triangle
Park, North Carolina, in the case of NNI, or Toronto, Ontario, in the case of the NNC
or NNL, shall be deemed to be received on the next following Business Day in Research
Triangle Park, North Carolina or Toronto, Ontario, respectively.

SECTION 106. Notice to Holders; Waiver.

(a) Except as otherwise expressly provided herein, where this Indenture provides for notice to
Holders of the Debt Securities of any series of any event, such notice shall be sufficiently given
to such Holders if in writing and mailed, first-class postage prepaid, to each Holder affected by
such event, at his address as it appears in the Security Register, not later than the latest date,
and not earlier than the earliest date, prescribed for the giving of such notice.

(b) If the regular mail service is suspended or for any other reason it shall be impracticable to
give notice to Holders by mail, then such notification to Holders as shall be made with the
approval of the Trustee shall constitute sufficient notification for every purpose hereunder. In
any case where notice to Holders is given by mail, neither the failure to mail such notice, nor any
defect in any notice so mailed, to any particular Holder shall affect the sufficiency of such
notice with respect to other Holders.

25

 

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

(d) Any request, demand, authorization, direction, notice, consent, waiver or Act required or
permitted under this Indenture shall be in the English language.

SECTION 107. Conflict with Trust Indenture Act.

If any provision of this Indenture limits, qualifies or conflicts with a provision of the Trust
Indenture Act that is required under the Trust Indenture Act to be a part of and govern this
Indenture, the latter provision shall control. If any provision of this Indenture modifies or
excludes any provision of the Trust Indenture Act that may be so modified or excluded, the latter
provision shall be deemed to apply to this Indenture as so modified or excluded, as the case may
be.

SECTION 108. Effect of Headings and Table of Contents.

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

SECTION 109. Successors and Assigns.

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

SECTION 110. Separability Clause.

If any provision in this Indenture or in the Debt Securities of any series 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 111. Benefits of Indenture.

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

SECTION 112. Governing Law, etc.

(a) This Indenture, the Debt Securities and the Guarantees shall be governed by and construed in
accordance with the laws of the State of New York, but without giving effect to applicable
principles of conflicts of law to the extent that the application of the law of another
jurisdiction would be required thereby.

26

 

(b) Each of NNC and the Issuer has appointed CT Corporation System with offices at 111 Eighth
Avenue, 13th Floor, New York, New York, 10011 as its authorized agent (the “Authorized
Agent”) upon whom all writs, process and summonses may be served in any suit, action or proceeding
arising out of or based upon this Indenture or the Debt Securities which may be instituted in any
state or federal court in The City of New York, New York. NNC and NNL hereby represent and warrant
that the Authorized Agent has accepted such appointment and has agreed to act as said agent for
service of process, and NNC and the Issuer agree to take any and all action, including the filing
of any and all documents, that may be reasonably necessary to continue each such appointment in
full force and effect as aforesaid so long as the Debt Securities remain Outstanding. NNC and the
Issuer agree that the appointment of the Authorized Agent shall be irrevocable so long as any of
the Debt Securities remain Outstanding or until the irrevocable appointment by NNC and the Issuer
of a successor authorized agent in The City of New York, New York as the authorized agent of each
of them for such purpose and the acceptance of such appointment by such successor. Service of
process upon the Authorized Agent shall be deemed, in every respect, effective service of process
upon NNC and the Issuer.

(c) Each of the Issuer and the Guarantors hereby:

	 	(i)	 	agrees that any suit, action or proceeding against it arising out of or
relating to this Indenture or the Debt Securities, as the case may be, may be
instituted in any federal or state court sitting in The City of New York,
	 
	 	(ii)	 	waives to the extent permitted by applicable law, any objection which it may
now or hereafter have to the laying of venue of any such suit, action or proceeding,
and any claim that any suit, action or proceeding in such a court has been brought in
an inconvenient forum,
	 
	 	(iii)	 	irrevocably submits to the non-exclusive jurisdiction of such courts in any
such suit, action or proceeding, and
	 
	 	(iv)	 	agrees that service of process by mail to the addresses specified herein shall
constitute personal service of such process on it in any such suit, action or
proceeding.

SECTION 113. WAIVER OF JURY TRIAL.

EACH PARTY HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND
ALL RIGHT TO A TRIAL BY JURY (BUT NO OTHER JUDICIAL REMEDIES) IN ANY LEGAL PROCEEDING ARISING OUT
OF OR RELATING TO THIS INDENTURE OR THE TRANSACTIONS CONTEMPLATED THEREBY.

SECTION 114. Legal Holidays.

If any Interest Payment Date, Redemption Date or Stated Maturity Date of any Debt Security shall
not be a Business Day at any Place of Payment, then (notwithstanding any other provision of this
Indenture or of the Debt Securities) payment of interest or principal (and premium, if any) need
not be made at such Place of Payment on such date, but may be made on the next

27

 

succeeding Business
Day at such Place of Payment with the same force and effect as if made on the Interest Payment
Date, Redemption Date or Stated Maturity Date, and no interest shall accrue on such payment for the
period from and after such Interest Payment Date, Redemption Date or Stated Maturity Date, as the
case may be on account of such delay; provided, in the case of any series of Debt Securities for
which interest accrues at a floating rate, payment of interest shall accrue until, and be paid
upon, the next succeeding Business Day.

ARTICLE TWO

Debt Security Forms 

SECTION 201. Forms Generally.

(a) All Debt Securities, all Guarantees and the Trustee’s certificate of authentication shall have
such appropriate insertions, omissions, substitutions and other variations as are required or
permitted by this Indenture or by a Board Resolution and as set forth in an Officers’ Certificate
or any indenture supplemental hereto and may have such letters, numbers or other marks of
identification or designation and such legends or endorsements placed thereon as the Issuer or the
applicable Guarantor, as the case may be, may deem appropriate and as are not inconsistent with the
provisions of this Indenture, or as may be required to comply with any law or with any rule or
regulation made pursuant thereto or with any rule or regulation of any securities exchange on which
any of the Debt Securities may be listed, or to conform to usage.

(b) The Certificated Securities of any series and Guarantees, if any, shall be printed,
lithographed or engraved or produced by any combination of these methods on steel engraved
borders or may be produced in any other manner; provided that such manner is permitted by the rules
of any securities exchange on which such Debt Securities may be listed or of any automated
quotation system on which such Debt Securities may be quoted, all as determined by the officers
executing such Debt Securities and Guarantees, as conclusively evidenced by their execution of such
Debt Securities and Guarantees.

SECTION 202. Forms of Debt Securities.

Debt Securities shall be in the forms approved by the officers executing such Debt Securities, as
conclusively evidenced by their execution of such Debt Securities, having those terms approved by
or pursuant to a Board Resolution and set forth in an Officers’ Certificate or one or more
indentures supplemental hereto which shall set forth the information required by Section 301. The
Debt Securities of each series shall be issuable in registered form without coupons and may be in
the form of one or more Global Securities in whole or in part.

SECTION 203. Guarantee by Guarantor; Form of Guarantee; Release of Guarantee.

(a) Each Guarantor by its execution of this Indenture hereby agrees with each Holder of a Debt
Security of each series authenticated and delivered by the Trustee and with the Trustee on behalf
of each such Holder, to be unconditionally bound by the terms and provisions of the Guarantees set
forth below and authorizes the Trustee to confirm such Guarantees to the Holder of each such Debt
Security by its execution and delivery of each such Debt Security, with such Guarantees endorsed
thereon, authenticated and delivered by the Trustee.

28

 

     Guarantees to be endorsed on the Debt Securities shall, subject to this Section 203, be in
substantially the form set forth below:

GUARANTEE

OF

[GUARANTOR]

     For value received, [Guarantor] (the “Guarantor”) hereby unconditionally and irrevocably
guarantees, jointly and severally to the Holder of the Debt Security upon which this Guarantee is
endorsed and to the Trustee on behalf of each such Holder the due and punctual payment of the
principal of, premium, if any, interest and Additional Amounts, if any, on such Debt Security and
the due and punctual payment of any sinking fund or analogous payments referred to therein, if any,
when and as the same shall become due and payable, whether on the Stated Maturity Date, by
declaration of acceleration, call for redemption or otherwise, according to the terms thereof and
of the indenture dated as of July 5, 2006 among Nortel Networks Limited, as issuer, Nortel Networks
Corporation and Nortel Networks Inc., as guarantors and The Bank of New York, as trustee (the
“Indenture” and as supplemented by [any applicable supplemental indenture], the “Indenture”). In
case of the failure of Nortel Networks Limited, a corporation organized under the laws of Canada
(herein called the “Issuer,” which term includes any successor Person under the Indenture),
punctually to make any such payment of principal, premium, if any, or interest, and Additional
Amounts, if any, or any sinking fund or analogous payment, the Guarantor, for so long as this
Guarantee shall be in effect, hereby agrees to cause any such payment to be made to or to the order
of the Trustee punctually when and as the same shall become due and payable,
whether on the Stated Maturity Date or by declaration of acceleration, call for redemption or
otherwise, and as if such payment were made by the Issuer.

     The Guarantor hereby agrees that its obligations hereunder shall be as if it were the
principal debtor and not merely surety, and shall be absolute and unconditional, irrespective of,
and shall be unaffected by, any invalidity, irregularity or unenforceability of such Debt Security
or the Indenture, any failure to enforce the provisions of such Debt Security or the Indenture, or
any waiver, modification or indulgence granted to the Issuer with respect thereto, by the Holder of
such Debt Security or the Trustee or any other circumstance which may otherwise constitute a legal
or equitable discharge of a surety or guarantor. The Guarantor hereby waives diligence,
presentment, demand of payment, filing of claims with a court in the event of merger or bankruptcy
of the Issuer, any right to require a proceeding first against the Issuer, protest or notice with
respect to such Debt Security or the indebtedness evidenced thereby or with respect to any sinking
fund or analogous payment required under such Debt Security and all demands whatsoever, and
covenants that this Guarantee will not be discharged except by payment in full of the principal of,
premium, if any, and interest on such Debt Security or as otherwise described in Section 203 of the
Indenture.

     This Guarantee shall be automatically and unconditionally released on the terms set forth in
Section 203(b) of the Indenture.

     The Guarantor shall be subrogated to all rights of the Holder of such Debt Security and the
Trustee against the Issuer in respect of any amounts paid to such Holder by the Guarantor

29

 

pursuant
to the provisions of this Guarantee; provided that the Guarantor shall not be entitled to enforce,
or to receive any payments arising out of or based upon such right of subrogation until the
principal of, premium, if any, and interest on all Debt Securities of the same series issued under
the Indenture shall have been paid in full.

     The Guarantor hereby agrees that its obligations hereunder shall be direct, unconditioned and
unsubordinated and will rank equally and ratably without preference and at least equally with other
senior unsecured obligations of the Guarantor, except to the extent prescribed by law. The Holder
of a guaranteed Debt Security will be entitled to payment under the relevant Guarantee without
taking any action whatsoever against the Issuer.

     No reference herein to the Indenture and no provision of this Guarantee or of the Indenture
shall alter or impair the guarantee of the Guarantor, which is absolute and unconditional, of the
due and punctual payment of the principal of, premium, if any, and interest on, any Additional
Amounts, and any sinking fund or analogous payments with respect to, the Debt Security upon which
this Guarantee is endorsed.

     This Guarantee shall not be valid or obligatory for any purpose until the certificate of
authentication of such Debt Security shall have been manually executed by or on behalf of the
Trustee under the Indenture.

     All terms used in this Guarantee which are defined in the Indenture shall have the meanings
assigned to them in the Indenture.

     This Guarantee shall be governed by and construed in accordance with the laws of the State of
New York, but without giving effect to applicable principles of conflicts of law to the extent that
the application of the law of another jurisdiction would be required thereby.

Executed and dated the date on the face hereof.

	 	 	 	 	 
	 

	 	 	 	          [GUARANTOR]
	 
	 	 	 	 
	 

	 	By	 	 
	 

	 	 	 	 
	 

	 	 	 	Name:
	 

	 	 	 	Title:
	 
	 	 	 	 
	 

	 	By	 	 
	 

	 	 	 	 
	 

	 	 	 	Name:
	 

	 	 	 	Title:

(b) Release of Guarantee.

	 	(i)	 	The Guarantee of each Guarantor shall be released automatically with respect to
any series of Debt Securities upon discharge or defeasance of such series of Debt
Securities as provided below under Article Four or Article Thirteen of this Indenture.

30

 

	 	(ii)	 	The Guarantee of NNI will be automatically and unconditionally released and
such Guarantor relieved of any obligations under its Guarantee with respect to any
series of Debt Securities upon the occurrence of a Suspension Period.
	 
	 	(iii)	 	At such time as NNI’s Guarantee is released with respect to any series of Debt
Securities, NNI will no longer be considered a “Guarantor” of such series of Debt
Securities. Within 15 Business Days of the occurrence of a Reversion Date with respect
to such series of Debt Securities, NNI will enter into a supplemental indenture in
order to provide a Guarantee of such series of Debt Securities on the terms set forth
herein.
	 
	 	(iv)	 	The Trustee shall promptly execute any documents reasonably requested by the
Issuer or a Guarantor in order to evidence the release of such Guarantor from its
obligations under its Guarantee; provided that the Trustee shall not be obligated to
execute or deliver any document evidencing the release of a Guarantee pursuant this
Section 203(b) unless the Issuer has delivered an Officers’ Certificate or an Opinion
of Counsel to the effect that such release is in accordance with the provisions of this
Indenture. Notwithstanding the foregoing, upon the occurrence of a Reversion Date, NNI
hereby agrees to promptly execute and deliver to Trustee a supplemental indenture
guaranteeing such series of Debt Securities on terms substantially similar to those
under NNI’s Guarantee in effect on the date of this Indenture.

SECTION 204. Form of Trustee’s Certificate of Authentication.

The form of the Trustee’s certificate of authentication to be borne by the Debt Securities shall be
substantially as follows:

Dated:

TRUSTEE’S CERTIFICATE OF AUTHENTICATION

This is one of the Debt Securities issued under the within-mentioned Indenture.

	 	 	 	 	 	 	 
	 	 	THE BANK OF NEW YORK,	 	 
	 

	 	 	 	                         as Trustee	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	               Authorized Signatory	 	 

ARTICLE THREE

The Debt Securities

SECTION 301. Amount Unlimited; Issuable in Series.

(a) The aggregate principal amount of Debt Securities that may be authenticated and delivered under
this Indenture is unlimited.

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(b) The Debt Securities may be issued in one or more series. Not all Debt Securities of any one
series need be issued at the same time, and, unless otherwise provided, a series may be reopened
for issuances of Additional Debt Securities of such series. There shall be established in or
pursuant to a Board Resolution of the Issuer and set forth in an Officers’ Certificate of the
Issuer and the Guarantors, or established in one or more indentures supplemental hereto, prior to
the issuance of Debt Securities of any series:

	 	(1)	 	the title of the Debt Securities of such series (which shall distinguish the
Debt Securities of such series from all other Debt Securities);
	 
	 	(2)	 	the limit, if any, upon the aggregate principal amount of the Debt Securities
of such series that may be authenticated and delivered under this Indenture (except for
Debt Securities authenticated and delivered upon registration of transfer of, or in
exchange for, or in lieu of, other Debt Securities of such series pursuant to Sections
304, 305, 311, 906 or 1107);
	 
	 	(3)	 	the date or dates on which the principal of, or premium on, the Debt Securities
of such series is payable;
	 
	 	(4)	 	the rate or rates or the method of determination thereof at which the Debt
Securities of such series shall bear interest, if any, the date or dates from which
such interest shall accrue, the Interest Payment Dates on which such interest shall be
payable, and the Regular Record Dates for the interest payable on such Interest Payment
Dates;
	 
	 	(5)	 	the place or places where the principal of (and premium, if any) and interest
on Debt Securities of such series shall be payable;
	 
	 	(6)	 	the period or periods within which or the date or dates on which, if any, the
price or prices at which and the terms and conditions upon which Debt Securities of
such series may be repurchased or redeemed, in whole or in part, at the option of
the Issuer;
	 
	 	(7)	 	the obligation, if any, of the Issuer to redeem, repay or purchase Debt
Securities of such series either pursuant to any sinking fund or analogous provisions
or at the option of a Holder thereof and the period or periods within which, the price
or prices at which and the terms and conditions upon which Debt Securities of such
series shall be redeemed, repaid or purchased, in whole or in part, pursuant to such
obligation;
	 
	 	(8)	 	whether the Debt Securities of such series shall be issued in whole or in part
in the form of one or more Global Securities and, in such case, the Depositary for such
Global Security or Global Securities and the terms and conditions, if any, upon which
interests in such Global Security or Global Securities may be exchanged in whole or in
part for the individual Debt Securities represented thereby;
	 
	 	(9)	 	the denominations in which Debt Securities of such series shall be issuable;

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	 	(10)	 	if other than the principal amount thereof, the portion of the principal amount
of Debt Securities of such series that shall be payable upon declaration of
acceleration of the Maturity thereof pursuant to Section 501;
	 
	 	(11)	 	the currency or currencies of denominations of the Debt Securities of such
series, which may be in Dollars or any Foreign Currency or any currency unit, and, if
any such currency of denomination is a currency unit, the agency or organization, if
any, responsible for overseeing such currency unit;
	 
	 	(12)	 	the currency or currencies in which payment of the principal of (and premium,
if any) and interest on the Debt Securities of such series will be made, and the
currency or currencies, if any, in which payment of the principal of (and premium, if
any) or interest on Debt Securities of such series, at the election of each of the
Holders thereof, may also be payable;
	 
	 	(13)	 	if the amount of payments of principal of (and premium, if any) or interest on
the Debt Securities of such series may be determined with reference to an index based
on a currency or currencies other than that in which the Debt Securities of the series
are denominated or designated to be payable, the manner in which such amounts shall be
determined;
	 
	 	(14)	 	if the payments of principal of (and premium, if any) or the interest on the
Debt Securities of such series are to be made in a Foreign Currency, other than the
Foreign Currency in which such Debt Securities are denominated, the manner in which the
Exchange Rate with respect to such payments shall be determined;
	 
	 	(15)	 	the terms, if any, upon which the Debt Securities of such series will be
defeasable;
	 
	 	(16)	 	whether any legends shall be stamped or imprinted on all or a portion of the
Debt Securities of such series, and the terms and conditions upon which any such
legends may be removed;
	 
	 	(17)	 	whether the Debt Securities of such series will be entitled to the benefit of a
Registration Rights Agreement, and, if so, any Additional Interest provisions
applicable to such Debt Securities;
	 
	 	(18)	 	any other terms of the series (which terms shall not be inconsistent with the
provisions of this Indenture);
	 
	 	(19)	 	the form of the face and reverse of the Debt Securities of such series; and
	 
	 	(20)	 	CUSIP numbers, if any.

(c) Any terms so established by the Issuer or any Guarantor in accordance with Section 301(b) must
be reasonably satisfactory to the Trustee.

(d) Notwithstanding the foregoing, a series may not be reopened to issue Additional Debt Securities
of such series within five years of the Maturity of the Outstanding Debt Securities of such series.

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(e) All Debt Securities of any one series shall be identical except as to denomination, original
Issue Date, aggregate principal amount, initial interest period, initial Restricted Period,
registration rights and any changes related thereto and except as may otherwise be provided in or
pursuant to such Board Resolution and set forth in such Officers’ Certificate or in such indenture
or indentures supplemental hereto.

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

(g) Debt Securities of any series that are repayable at the option of the Holders shall be repaid
in accordance with the terms of the Debt Securities of such series.

(h) Debt Securities originally offered and sold to QIBs in reliance on Rule 144A will be issued in
the form of one or more permanent Global Securities (each, a “Rule 144A Global Security”).

(i) Debt Securities originally offered and sold outside the United States in reliance on Regulation
S will be issued in the form of one or more permanent Global Securities (each, a “Regulation S
Global Security”).

SECTION 302. Denominations.

Unless otherwise provided as contemplated by Section 301 with respect to any series of Debt
Securities and except as provided in Section 303, Debt Securities will be issued in denominations
of $2,000 and integral multiples of $1,000.

SECTION 303. Execution, Authentication, Delivery and Dating.

(a) The Debt Securities shall be executed on behalf of the Issuer and the Guarantees shall be
executed on behalf of each Guarantor by the Authorized Officers of the Issuer or such Guarantor, as
the case may be. The Debt Securities and the Guarantee of each Guarantor may but need not
be under the corporate seal of the Issuer or such Guarantor, as the case may be, or a reproduction
thereof (which reproduction shall for such purposes be deemed to be the corporate seal of the
Issuer or such Guarantor, as the case may be). The signature of any of these Authorized Officers
on the Debt Securities or the Guarantees may be manual or facsimile. Debt Securities or Guarantees
bearing the manual or facsimile signatures of individuals who were at any time the Authorized
Officers of the Issuer or applicable Guarantor, as the case may be, shall bind the Issuer or such
Guarantor, as the case may be, notwithstanding that such individuals or any of them have ceased to
hold such offices prior to the authentication and delivery of such Debt Securities or Guarantees.

(b) At any time and from time to time after the execution and delivery of this Indenture, the
Issuer may deliver Debt Securities of any series and the related Guarantees executed by the Issuer
and the applicable Guarantors to the Trustee for authentication, together with an Issuer Order for
the authentication and delivery of such Debt Securities; whereupon the Trustee, in accordance with
such Issuer Order shall authenticate and deliver such Debt Securities. At any

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time and from time
to time after the execution and delivery of this Indenture and after the effectiveness of a
registration statement under the Securities Act with respect to the Debt Securities of any series,
the Issuer may deliver Exchange Debt Securities evidencing the same, continuing indebtedness and of
such series executed by the Issuer (with the Guarantee endorsed thereon executed by the applicable
Guarantors) together with an Issuer Order for the authentication and delivery of such Exchange Debt
Securities and of a like principal amount of Initial Debt Securities of such series for
cancellation in accordance with Section 316, and the Trustee in accordance with the Issuer Order
shall authenticate and deliver such Exchange Debt Securities. The Trustee shall be entitled to
receive, prior to the authentication and delivery of such Debt Securities, the supplemental
indenture or the Board Resolution by or pursuant to which the terms of such Debt Securities have
been approved, (x) an Opinion or Opinions of Counsel of the Issuer and applicable Guarantor(s) to
the effect that:

	 	(i)	 	in the event that the forms or terms of such Debt Securities and Guarantees
have been established in a supplemental indenture, the execution and delivery of such
supplemental indenture have been duly authorized by all necessary corporate action of
the Issuer and the Guarantors, such supplemental indenture has been duly executed and
delivered by the Issuer and the Guarantors and, assuming due authorization, execution
and delivery by the Trustee, is a valid and binding obligation enforceable against the
Issuer and the Guarantors in accordance with its terms, subject to applicable
bankruptcy, insolvency and similar laws affecting creditors’ rights generally, to
general principles of equity and, with regard to NNC and the Issuer, to the effect of
judicial application of foreign laws or foreign governmental actions affecting
creditors’ rights;
	 
	 	(ii)	 	the execution and delivery of such Debt Securities have been duly authorized by
all necessary corporate action of the Issuer and such Debt Securities have been duly
executed by the Issuer and, assuming due authentication by the Trustee and delivery by
the Issuer, are valid and binding obligations of the Issuer enforceable against the
Issuer in accordance with their terms, entitled to the benefits of the Indenture,
subject to applicable bankruptcy, insolvency and similar laws affecting creditors’
rights generally, to general principles of equity and, with regard to the Issuer, to
the effect of judicial application of foreign laws or foreign governmental actions
affecting creditors’ rights;
	 
	 	(iii)	 	the execution and delivery of such Guarantees have been duly authorized by all
necessary corporate action of the Guarantors and such Guarantees, if any, have been
duly executed by the Guarantors and, assuming due authentication by the Trustee of the
Debt Securities and delivery of the Debt Securities by the Issuer and delivery of the
Guarantees by the Guarantors, are valid and binding obligations of the Guarantors
enforceable against such Guarantors in accordance with their terms, entitled to the
benefits of the Indenture, subject to applicable bankruptcy, insolvency and similar
laws affecting creditors’ rights generally, to general principles of equity and, with
regard to NNC, to the effect of judicial application of foreign laws or foreign
governmental actions affecting creditors’ rights; and
	 
	 	(iv)	 	such other matters as the Trustee may reasonably request;

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     and (y) an Officers’ Certificate to the effect that:

	 	(i)	 	the forms of such Debt Securities and Guarantees have been established in
conformity with the provisions of this Indenture;
	 
	 	(ii)	 	the terms of such Debt Securities and Guarantees have been established in
conformity with the provisions of this Indenture;
	 
	 	(iii)	 	the amount of Outstanding Debt Securities of such series, together with the
amount of such Debt Securities, does not exceed any limit established under the terms
of this Indenture, a Board Resolution or any supplemental indenture on the amount of
Debt Securities of such series that may be authenticated and delivered; and
	 
	 	(iv)	 	the absence of any event that is, or after notice or lapse of time or both
would become, an Event of Default.

Notwithstanding any contrary provision herein, if the Issuer and applicable Guarantor(s) shall
establish pursuant to Section 301 that the Debt Securities of a series may be issued from time to
time, it shall not be necessary to deliver the Board Resolution, Officers’ Certificate and Opinion
of Counsel otherwise required pursuant to this Section 303 or Section 301 at or prior to the time
of authentication of each Debt Security of such series if such documents are delivered at or prior
to the authentication upon original issuance of the first Debt Security of such series to be
issued.

(c) If the Issuer shall establish pursuant to Section 301 that the Debt Securities of a series are
to be issued in whole or in part in the form of one or more Global Securities, then the Issuer and
the Guarantors shall execute and the Trustee shall authenticate and deliver one or more Global
Securities that shall: (i) represent an aggregate amount equal to the aggregate principal amount of
the Outstanding Debt Securities of such series to be represented by one or more Global Securities;
(ii) be registered in the name of the Depositary for such Global Security or Global Securities or
the nominee of such Depositary; (iii) be held or be delivered by the Trustee to such Depositary or
pursuant to such Depositary’s instruction; and (iv) bear the legends set forth in Section 307(a)
and (c).

(d) Each Depositary designated pursuant to Section 301 for a Global Security must, at the time of
its designation and at all times while it serves as such Depositary, be a clearing agency
registered under the Exchange Act and any other applicable statute or regulation.

(e) The Trustee shall not be required to authenticate any Debt Securities if the issuance of such
Debt Securities pursuant to this Indenture will adversely affect the Trustee’s own rights, duties
or immunities under this Indenture.

(f) Each Debt Security shall be dated the date of its issue, except as otherwise provided pursuant
to Section 301 with respect to Debt Securities of such series.

(g) No Debt Security or Guarantee endorsed thereon shall be entitled to any benefit under this
Indenture or be valid or obligatory for any purpose unless there appears on such Debt Security a
certificate of authentication substantially in the form provided for herein duly

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executed by the
Trustee by manual signature of one of its Responsible Officers, and such certificate upon any Debt
Security shall be conclusive evidence, and the only evidence, that such Debt Security has been duly
authenticated and delivered hereunder and is entitled to the benefits of this Indenture.

SECTION 304. Temporary Debt Securities.

(a) Pending the preparation of Certificated Securities of any series, the Issuer may execute, and,
upon receipt of an Issuer Order, the Trustee shall authenticate and deliver, temporary Debt
Securities that are printed, lithographed, typewritten, photocopied or otherwise produced, in any
authorized denomination, substantially of the tenor of the Certificated Securities in lieu of which
they are issued, in registered form and having endorsed thereon Guarantees executed by the
applicable Guarantors substantially of the tenor of the definitive Guarantees, and in all cases
with such appropriate insertions, omissions, substitutions and other variations as the officers of
the Issuer and the Guarantors executing such Debt Securities and Guarantees may determine, as
conclusively evidenced by their execution of such Debt Securities. Any such temporary Debt
Securities may be in global form, representing all or a portion of the Outstanding Debt Securities
of such series. Every such temporary Debt Security and Guarantee shall be executed by Authorized
Officers of the Issuer and the Guarantors and shall be authenticated and delivered by the Trustee
upon the same terms and conditions and in substantially the same manner, and with the same effect,
as the Certificated Securities and Guarantees in lieu of which they are issued.

(b) If temporary Debt Securities of any series are issued, the Issuer will cause Certificated
Securities of such series to be prepared without unreasonable delay. Upon surrender for
cancellation of any one or more temporary Debt Securities of any series, the Issuer shall execute
and the Trustee shall authenticate and deliver in exchange therefor a like principal amount of
Certificated Securities of the same series of authorized denominations and of like tenor and having
endorsed thereon the Guarantees executed by the applicable Guarantor(s). Until so exchanged,
temporary Debt Securities of any series shall in all respects be entitled to the same benefits
under this Indenture as individual Debt Securities of such series, except as otherwise specified as
contemplated by Section 301 with respect to the payment of interest on Global Securities in
temporary form.

(c) Upon any exchange of a portion of a temporary Global Security for a Certificated Global
Security or for the individual Debt Securities represented thereby pursuant to this Section 304 or
Section 305, the temporary Global Security shall be endorsed by the Trustee to reflect the
reduction of the principal amount evidenced thereby, whereupon the principal amount of such
temporary Global Security shall be reduced for all purposes by the amount so exchanged and
endorsed.

SECTION 305. Registration, Registration of Transfer and Exchange.

(a) The Issuer will maintain an office or agency (the “Security Registrar”) at which shall
be kept a register (the “Security Register”) which, subject to such reasonable regulations
as it may prescribe, shall contain the names and addresses of the Holders and provide for
the registration of Debt Securities and of transfers of Debt Securities. Unless and until
otherwise determined by the Issuer, the Trustee shall act as Security Registrar and the
Security Registers shall be kept at the office or agency of the Trustee in the Borough of
Manhattan, The City of New York. Such

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Security Registers shall be in written form or in any other form capable of being converted
into written form within a reasonable period of time. At all reasonable times, the Security
Registers shall be open for inspection by the Trustee.

(b) Upon surrender for registration of transfer of any Debt Security of any series at the office or
agency of the Issuer maintained for such purpose, the Issuer shall execute, and the Trustee shall
authenticate and deliver, in the name of the designated transferee or transferees, one or more new
Debt Securities of the same series of any authorized denomination or denominations, of like tenor
and aggregate principal amount and having endorsed thereon the Guarantees executed by the
applicable Guarantor(s). Every Debt Security presented or surrendered for registration of transfer
or for exchange shall (if so required by the Issuer, the Security Registrar or the Trustee) be duly
endorsed, or be accompanied by a written instrument of transfer in form satisfactory to the Issuer,
the Security Registrar and the Trustee, and duly executed, by the Holder thereof or his attorney
duly authorized in writing.

(c) Notwithstanding any other provision of this Section 305, unless and until it is exchanged in
whole or in part for a Certificated Security, a Global Security representing all or a portion of
the Debt Securities of a series may not be transferred except as a whole by the Depositary for such
series to a nominee of such Depositary or by a nominee of such Depositary to such Depositary or
another nominee of such Depositary or by such Depositary or any such nominee to a successor
Depositary for such series or a nominee of such successor Depositary.

(d) At the option of the Holder, Debt Securities of any series (other than a Global Security) may
be exchanged for other Debt Securities of the same series of any authorized denomination or
denominations of a like aggregate principal amount, upon surrender of the Debt Securities to be
exchanged at such office or agency. Whenever any Debt Securities are so surrendered for exchange,
the Issuer shall execute the Debt Securities which the Holder making the exchange is entitled to
receive, the applicable Guarantor(s) shall execute the Guarantees endorsed thereon, and the Trustee
shall authenticate and deliver such Debt Securities.

(e) If at any time the Depositary for the Debt Securities of a series notifies the Issuer that it
is unwilling or unable to continue as Depositary for the Debt Securities of such series or if at
any time the Depositary for the Debt Securities of such series shall no longer be eligible under
Section 303(d), the Issuer shall appoint a successor Depositary with respect to the Debt Securities
of such series.

(f) The Issuer may at any time and in its sole discretion determine that individual Debt Securities
of any series issued in the form of one or more Global Securities shall no longer be represented by
such Global Security or Global Securities. In such event, the Issuer will execute, and the
Trustee, upon receipt of an Issuer Order for the authentication and delivery of individual
Certificated Securities of such series, will authenticate and deliver, individual Certificated
Securities of such series in an aggregate principal amount equal to the principal amount of the
Global Security or Global Securities representing Debt Securities of such series (which shall have
endorsed thereon Guarantee(s) executed by the applicable Guarantor(s)) in exchange for such Global
Security or Global Securities.

(g) If specified by the Issuer pursuant to Section 301 with respect to a series of Debt Securities,
the Depositary for such series of Debt Securities may surrender a Global Security for

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such series of Debt Securities in exchange in whole or in part for individual Certificated
Securities of such series on such terms as are acceptable to the Issuer and such Depositary.
Thereupon, the Issuer shall execute, and the Trustee shall authenticate and deliver, without
service charge: (i) to each Person specified by such Depositary a new individual Certificated
Security or Certificated Securities of the same series (which shall have endorsed thereon
Guarantee(s) executed by the applicable Guarantor(s)), of any authorized denomination as requested
by such Person in aggregate principal amount equal to and in exchange for such Person’s beneficial
interest in the Global Security; and (ii) to such Depositary a new Global Security (which shall
have endorsed thereon Guarantee(s) executed by the applicable Guarantor(s)) in a denomination equal
to the difference, if any, between the principal amount of the surrendered Global Security and the
aggregate principal amount of Certificated Securities delivered to Holders thereof.

(h) In any exchange provided for in Section 305(f) or Section 305(g), the Issuer shall execute and
the Trustee will authenticate and deliver Debt Securities, which shall have endorsed thereon
Guarantee(s) executed by the applicable Guarantor(s), in registered form in authorized
denominations.

(i) Upon the exchange of a Global Security for individual Certificated Securities, such Global
Security shall be cancelled by the Trustee. Individual Certificated Securities exchanged for
portions of a Global Security pursuant to this Section shall be registered in such names and in
such authorized denominations as the Depositary for such Global Security, pursuant to instructions
from its direct or indirect participants or otherwise, shall instruct the Trustee. The Trustee
shall deliver such Certificated Securities to the Persons in whose names such Certificated
Securities are so registered.

(j) All Debt Securities executed for delivery upon any transfer or exchange of Debt Securities
shall be valid obligations of the Issuer evidencing the same debt, and entitled to the same
benefits under this Indenture, as the Debt Securities surrendered for such transfer or exchange.
No service charge shall be made for any registration of transfer or exchange of Debt Securities,
but the Issuer may require payment of a sum sufficient to cover any tax or other governmental
charge that may be imposed in connection with any transfer, registration of transfer or exchange of
Debt Securities, other than exchanges pursuant to Sections 304, 906 or 1107 not involving any
transfer.

(k) The Issuer shall not be required to: (i) execute for delivery, register the transfer of or
exchange of Debt Securities of any particular series during a period beginning at the opening of
business 15 days before the day of the mailing of a notice of redemption of Debt Securities of such
series selected for redemption under Section 1103 and ending at the close of business on the day of
such mailing; or (ii) register the transfer of or exchange of any Debt Security so selected for
redemption in whole or in part, except the unredeemed portion of any Debt Security being redeemed
in part.

SECTION 306. Global Security Provisions.

(a) Each Global Security initially shall: (i) be registered in the name of the Depositary or the
nominee of the Depositary, (ii) be delivered to the Security Custodian, and (iii) bear the
appropriate legend, as set forth in Section 307. Any Global Security may be represented by more

39

 

than one certificate. The aggregate principal amount of each Global Security may from time to
time be increased or decreased by adjustments made on the records of the Security Custodian, as
provided in this Indenture.

(b) Participants shall have no rights under this Indenture with respect to any Global Security held
on their behalf by the Depositary or by the Security Custodian under such Global Security, and the
Depositary may be treated by the Issuer, the Guarantors, the Trustee, the Paying Agent and the
Security Registrar and any of their agents as the absolute owner of such Global Security for all
purposes whatsoever. Notwithstanding the foregoing, nothing herein shall prevent the Issuer, the
Guarantors, the Trustee, the Paying Agent or the Security Registrar or any of their agents from
giving effect to any written certification, proxy or other authorization furnished by the
Depositary or impair, as between the Depositary and its Participants, the operation of customary
practices of the Depositary governing the exercise of the rights of an owner of a beneficial
interest in any Global Security. The registered Holder of a Global Security may grant proxies and
otherwise authorize any Person, including Participants and Persons that may hold interests through
Participants, to take any action that a Holder is entitled to take under this Indenture or the Debt
Securities.

(c) Except as provided below or in Sections 305(f) or (g), owners of beneficial interests in Global
Securities will not be entitled to receive Certificated Securities. Certificated Securities shall
be issued to all owners of beneficial interests in a Global Security in exchange for such interests
if:

	 	(i)	 	the Depositary notifies the Issuer that it is unwilling or unable to continue
as depositary for such Global Security or the Depositary ceases to be a clearing agency
registered under the Exchange Act, at a time when the Depositary is required to be so
registered in order to act as depositary, and in each case a successor depositary is
not appointed by the Issuer within 90 days of such notice,
	 
	 	(ii)	 	the Issuer executes and delivers to the Trustee and Security Registrar an
Officers’ Certificate stating that such Global Security shall be so exchangeable, or
	 
	 	(iii)	 	an Event of Default has occurred and is continuing and the Security Registrar
has received a request to issue Certificated Securities from the Depositary.

In connection with the exchange of an entire Global Security for Certificated Securities pursuant
to this paragraph (c), such Global Security shall be surrendered to the Trustee for cancellation,
and the Issuer shall execute, and upon Issuer Order the Trustee shall authenticate and deliver, to
each beneficial owner identified by the Depositary in exchange for its beneficial interest in such
Global Security, an equal aggregate principal amount of Certificated Securities of authorized
denominations.

SECTION 307. Legends

(a) Global Security Legends. (i) Each Global Security shall bear a legend in substantially the
following form:

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“THIS IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE REFERRED TO HEREINAFTER.

     TRANSFERS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS IN WHOLE, BUT NOT IN PART, TO
NOMINEES OF [INSERT NAME OF DEPOSITARY] OR TO A SUCCESSOR THEREOF OR SUCH SUCCESSOR’S NOMINEE AND
TRANSFERS OF PORTIONS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH
THE RESTRICTIONS SET FORTH IN THE INDENTURE REFERRED TO ON THE REVERSE HEREOF.”

(ii) If DTC is the Depositary for a Global Security, such Global Security shall also bear the
following legend:

“UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST
COMPANY, A NEW YORK CORPORATION (“DTC”), NEW YORK, NEW YORK, TO THE ISSUER OR ITS AGENT FOR
REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME
OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND
ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO
ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST
HEREIN.”

(b) (i) Securities Act Legends. Restricted Debt Securities and their Successor Debt Securities
shall bear a Restricted Debt Securities Legend substantially in the form set forth below:

THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED
(THE “SECURITIES ACT”), OR THE SECURITIES LAWS OF ANY STATE OR OTHER JURISDICTION. NEITHER THIS
SECURITY NOR ANY INTEREST OR PARTICIPATION HEREIN MAY BE REOFFERED, SOLD, ASSIGNED, TRANSFERRED,
PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION OR UNLESS SUCH
TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO, SUCH REGISTRATION. THE HOLDER OF THIS SECURITY, BY
ITS ACCEPTANCE HEREOF, AGREES ON ITS OWN BEHALF AND ON BEHALF OF ANY INVESTOR ACCOUNT FOR WHICH IT
HAS PURCHASED SECURITIES, TO OFFER, SELL OR OTHERWISE TRANSFER SUCH SECURITY, PRIOR TO THE DATE
(THE “RESALE RESTRICTION TERMINATION DATE”) THAT IS TWO YEARS (IN THE CASE OF RULE 144A DEBT
SECURITIES) OR 40 DAYS (IN THE CASE OF REGULATION S DEBT SECURITIES) AFTER THE LATER OF THE
ORIGINAL ISSUE DATE HEREOF AND THE LAST DATE ON WHICH THE ISSUER, ANY GUARANTOR OR ANY AFFILIATE OF
THE ISSUER OR ANY GUARANTOR WAS THE OWNER OF THIS SECURITY (OR ANY PREDECESSOR OF SUCH SECURITY),
ONLY (A) TO THE ISSUER OR A GUARANTOR, (B) PURSUANT TO A REGISTRATION

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STATEMENT THAT HAS BEEN
DECLARED EFFECTIVE UNDER THE SECURITIES ACT, (C) FOR SO LONG AS THE SECURITIES ARE ELIGIBLE FOR
RESALE PURSUANT TO RULE 144A UNDER THE SECURITIES ACT, TO A PERSON IT REASONABLY BELIEVES IS A
“QUALIFIED INSTITUTIONAL BUYER” AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT THAT PURCHASES FOR
ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER TO WHOM NOTICE IS GIVEN THAT
THE TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A, (D) PURSUANT TO OFFERS AND SALES THAT OCCUR
OUTSIDE THE UNITED STATES WITHIN THE MEANING OF REGULATION S UNDER THE SECURITIES ACT, (E) TO AN
INSTITUTIONAL “ACCREDITED INVESTOR” WITHIN THE MEANING OF RULE 501(a)(1), (2), (3) OR (7) UNDER THE
SECURITIES ACT THAT IS AN INSTITUTIONAL ACCREDITED INVESTOR ACQUIRING THE SECURITY FOR ITS OWN
ACCOUNT OR FOR THE ACCOUNT OF SUCH AN INSTITUTIONAL ACCREDITED INVESTOR, IN EACH CASE IN A MINIMUM
PRINCIPAL AMOUNT OF THE SECURITIES OF $250,000, FOR INVESTMENT PURPOSES AND NOT WITH A VIEW TO OR
FOR OFFER OR SALE IN CONNECTION WITH ANY DISTRIBUTION IN VIOLATION OF THE SECURITIES ACT, OR (F)
PURSUANT TO ANOTHER AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT,
SUBJECT TO THE ISSUER’S, ANY GUARANTOR’S AND THE TRUSTEE’S RIGHT PRIOR TO ANY SUCH OFFER, SALE OR
TRANSFER PURSUANT TO CLAUSES (D), (E) OR (F) TO REQUIRE THE DELIVERY OF AN OPINION OF COUNSEL,
CERTIFICATION AND/OR OTHER INFORMATION SATISFACTORY TO EACH OF THEM. THIS LEGEND WILL BE REMOVED
UPON THE REQUEST OF THE HOLDER AFTER THE RESALE RESTRICTION TERMINATION DATE.

(c) Canadian Securities Legend. Unless the Security Registrar receives an Officers’ Certificate
confirming that the following legend is not required, each Global Security shall bear a legend in
substantially the following form:

     “UNLESS PERMITTED UNDER CANADIAN SECURITIES LEGISLATION, THE HOLDER OF THE SECURITY MUST NOT
TRADE THE SECURITY IN CANADA BEFORE [INSERT DATE THAT IS FOUR MONTHS PLUS ONE DAY AFTER THE ISSUE
DATE].”

SECTION 308. Transfer and Exchange.

(a) The following provisions shall apply with respect to any proposed transfer of an interest in a
Rule 144A Global Security that is a Restricted Debt Security: If (1) the owner of a beneficial
interest in a Rule 144A Global Security wishes to transfer such interest (or portion thereof) to a
Non-U.S. Person pursuant to Regulation S and (2) such Non-U.S. Person wishes to hold its interest
in the Debt Securities through a beneficial interest in the Regulation S Global Security, (x) upon
receipt by the Security Custodian and Security Registrar of:

	 	(i)	 	instructions from the Holder of the Rule 144A Global Security directing the
Security Custodian and Security Registrar to credit or cause to be credited a
beneficial interest in the Regulation S Global Security equal to the principal

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amount of the beneficial interest in the Rule 144A Global Security to be transferred, and

	 	(ii)	 	a certificate in the form of Exhibit B from the transferor,

(y) subject to the rules and procedures of the Depositary, the Security Custodian and
Security Registrar shall increase the Regulation S Global Security and decrease the Rule
144A Global Security by such amount in accordance with the foregoing and (z) compliance with
the requirements of Section 308(b)(ii), if applicable.

(b) Other Transfers. (i) Any transfer of Restricted Debt Securities not described above (other
than a transfer of a beneficial interest in a Global Security that does not involve an exchange of
such interest for a Certificated Security or a beneficial interest in another Global Security,
which must be effected in accordance with applicable law and the rules and procedures of the
Depositary, but is not subject to any procedure required by this Indenture) shall be made only upon
receipt by the Security Registrar of such Opinions of Counsel, certificates and/or other
information reasonably required by and satisfactory to it in order to ensure compliance with the
Securities Act and this Section 308.

     (ii) Restricted Debt Securities and, unless the Securities Registrar receives an Officers’
Certificate confirming that this Section 308(b)(ii) does not apply to Exchange Debt Securities,
Exchange Debt Securities shall not be transferred, directly or indirectly, in or into Canada before
the date that is four months plus one day after the Issue Date of such Debt Securities except
pursuant to an available exemption from the prospectus requirements of applicable provincial or
territorial securities laws in Canada. Any transfer of such Debt Securities in or into Canada
shall be made only upon receipt by the Security Registrar of an Opinion of Counsel, certificates
and/or other information reasonably required by and satisfactory to it in order to ensure
compliance with applicable provincial or territorial securities laws in Canada.

(c) Use and Removal of Restricted Debt Securities Legends. Upon the transfer, exchange or
replacement of Certificated Securities (or beneficial interests in a Global Security) not bearing
(or not required to bear upon such transfer, exchange or replacement) a Restricted Debt Securities
Legend, the Security Custodian and Security Registrar shall exchange such Certificated Securities
(or beneficial interests) for beneficial interests in a Global Security (or Certificated Securities
if they have been issued pursuant to this paragraph (c)) that does not bear a Restricted Debt
Securities Legend. Upon the transfer, exchange or replacement of Certificated Securities (or
beneficial interests in a Global Security) bearing a Restricted Debt Securities Legend, the
Security Custodian and Security Registrar shall deliver only Certificated Securities (or beneficial
interests in a Global Security) that bear a Restricted Debt Securities Legend unless:

	 	(i)	 	such Certificated Securities (or beneficial interests) are exchanged in an
Exchange Offer;
	 
	 	(ii)	 	such Certificated Securities (or beneficial interests) are transferred pursuant
to a Shelf Registration Statement;
	 
	 	(iii)	 	such Certificated Securities (or beneficial interests) are transferred
pursuant to Rule 144 upon delivery to the Security Registrar of a certificate of the
transferor

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in the form of Exhibit B and an Opinion of Counsel reasonably satisfactory
to the Security Registrar;

	 	(iv)	 	such Certificated Securities (or beneficial interests) are transferred,
replaced or exchanged after the Resale Restriction Termination Date therefor; or
	 
	 	(v)	 	in connection with such transfer, exchange or replacement the Security
Registrar shall have received an Opinion of Counsel and other evidence reasonably
satisfactory to it to the effect that neither such Restricted Debt Securities Legend
nor the related restrictions on transfer are required in order to maintain
compliance with the provisions of the Securities Act.

The Restricted Debt Securities Legend on any Certificated Security shall be removed at the written
request of the Holder on or after the Resale Restriction Termination Date therefor. The Holder of
a Global Security may exchange an interest therein for an equivalent interest in a Global Security
not bearing a Restricted Debt Securities Legend upon transfer of such interest pursuant to any of
clauses (i) through (v) of this paragraph (c). The Issuer shall deliver to the Trustee an
Officers’ Certificate promptly upon effectiveness, withdrawal or suspension of any Registration
Statement.

(d) Consolidation of Global Securities.

	 	(i)	 	If a Global Security not bearing a Restricted Debt Securities Legend is
Outstanding at the time of an Exchange Offer with respect to the same series of Debt
Securities, any interests in a Global Security exchanged in such Exchange Offer shall
be exchanged for interests in such Outstanding Global Security.
	 
	 	(ii)	 	Nothing in this Indenture shall provide for the consolidation of any Debt
Securities with any other Debt Securities to the extent that they constitute, as
determined pursuant to an Opinion of Counsel, different classes of securities for U.S.
federal income tax purposes.

(e) Retention of Documents. The Security Registrar shall retain copies of all letters, notices and
other written communications it receives pursuant to this Article Three. The Issuer and each
Guarantor shall have the right to inspect and make copies of all such letters, notices or other
written communications at any reasonable time upon the giving of reasonable written notice to the
Security Registrar.

SECTION 309. Exchange Debt Securities.

At any time and from time to time after the execution and delivery of this Indenture and after the
effectiveness of a Registration Statement under the Securities Act with respect thereto, the Issuer
may deliver Exchange Debt Securities executed by the Issuer and having endorsed thereon Guarantees
executed by the Guarantors to the Trustee for authentication, together with an Issuer Order in
accordance with Section 303 of this Indenture evidencing the same continuing indebtedness and of
like principal amount of Initial Debt Securities of such series for cancellation in accordance with
Section 316 of this Indenture, and the Trustee in accordance with such Issuer Order shall
authenticate and deliver such Debt Securities. Any Initial Debt Securities

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of any series that
remain Outstanding after the completion of the Exchange Offer, together with the Exchange Debt
Securities of such series issued in connection with the Exchange Offer, will be treated as a single
class of Debt Securities under the Indenture.

SECTION 310. Additional Debt Securities.

(a) The Issuer may, from time to time, subject to compliance with any other applicable provisions
of this Indenture, without the consent of the Holders, create and issue pursuant to this Indenture
additional Debt Securities (“Additional Debt Securities”) of any series currently outstanding,
subject to any limitations on the principal amount of such series established pursuant to Section
301 and the limitations set forth in Section 1006 of this Indenture, and
deliver such Additional Debt Securities executed by the Issuer and having endorsed thereon
Guarantees executed by the Guarantors to the Trustee for authentication, together with an Issuer
Order. Holders of Additional Debt Securities of a series will have the rights to vote together
with Holders of Debt Securities of such series issued on the Issue Date of such series of Debt
Securities and Exchange Debt Securities of such series as one class. Any Additional Debt
Securities of any one series shall have terms and conditions substantially similar to those of the
Initial Debt Securities and the Exchange Debt Securities of such series, except for the following
changes and any other changes related thereto:

	 	(i)	 	the Additional Debt Securities may have a different Issue Date;
	 
	 	(ii)	 	the Additional Debt Securities may have a different amount of interest payable
on the first Interest Payment Date after issuance than is payable on other Debt
Securities of such series; and
	 
	 	(iii)	 	the Additional Debt Securities may have terms specified in the Board
Resolution, Officers’ Certificate or supplemental indenture for such Additional Debt
Securities making appropriate adjustments to this Article Three, as applicable (and
related definitions) applicable to such Additional Debt Securities in order to conform
to and ensure compliance with the Securities Act (or other applicable securities laws)
and any registration rights or similar agreement applicable to such Additional Debt
Securities, which are not adverse in any material respect to the Holder of any Debt
Securities (other than such Additional Debt Securities); provided that any such terms
must be reasonably satisfactory to the Trustee;

and further provided, in each case, that no adjustment pursuant to this Section 310 shall cause
such Additional Debt Securities to constitute, as determined pursuant to an Opinion of Counsel, a
class of securities different from the Original Debt Securities for U.S. federal income tax
purposes except for Additional Debt Securities that have a separate CUSIP number from the Debt
Securities pending performance by the Issuer of its obligations under the applicable Registration
Rights Agreement.

SECTION 311. Mutilated, Destroyed, Lost or Stolen Debt Securities.

(a) If: (i) any mutilated Debt Security is surrendered to the Trustee; or (ii) the Issuer, the
Guarantors and the Trustee receive evidence to their satisfaction of the destruction, loss or theft
of any Debt Security, and the Issuer, the Guarantors and the Trustee receive such security or

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indemnity satisfactory to them; then, in the absence of notice to the Issuer, any Guarantor or the
Trustee that such Debt Security has been acquired by a bona fide purchaser, the Issuer and the
Guarantors shall execute and upon such bona fide purchaser’s written request the Trustee shall
authenticate and deliver, in exchange for any such Debt Security, a new Debt Security of the same
series and of like tenor and principal amount and having endorsed thereon the Guarantees executed
by the Guarantors, in registered form bearing a number not contemporaneously outstanding
appertaining to such destroyed, lost or stolen Debt Security.

(b) If any such mutilated, destroyed, lost or stolen Debt Security has become or is about to become
due and payable, the Issuer or the Guarantors in their discretion may, instead of executing for
delivery a new Debt Security, pay such Debt Security. Upon the execution for delivery of any new
Debt Security under this Section, the Issuer or any Guarantor may require the payment by the Holder
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.

(c) Every new Debt Security of any series and the Guarantees endorsed thereon executed for delivery
pursuant to this Section in lieu of any destroyed, lost or stolen Debt Security shall constitute
contractual obligations of the Issuer and the Guarantors, whether or not such destroyed, lost or
stolen Debt Security shall be at any time enforceable by anyone, and any such new Debt Security and
Guarantees shall be entitled to all the benefits of this Indenture equally and proportionately with
any and all other Debt Securities of the same series and the Guarantees endorsed thereon duly
issued hereunder.

(d) 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 Debt Securities.

SECTION 312. Payment of Interest; Interest Rights Preserved.

(a) Interest on any Debt Security that is payable on any Interest Payment Date shall be paid to the
Person in whose name that Debt Security (or one or more Predecessor Securities) is registered at
the close of business on the Regular Record Date for such interest. At the option of the Issuer,
payment of interest on any Debt Security may be made by check mailed to the address of the Person
entitled thereto as such address shall appear in the Security Register or by wire transfer to an
account designated by such Person.

(b) Any interest on any Debt Security of any series that is payable, but is not punctually paid or
duly provided for, on any Interest Payment Date (herein called “Defaulted Interest”) shall be paid
in accordance with the following provisions and not to the registered Holder on the relevant
Regular Record Date by virtue of his having been such Holder.

	 	(i)	 	The Issuer may elect to make payment of any Defaulted Interest to the Persons
in whose names the Debt Securities of such series (or their respective Predecessor
Securities) are registered at the close of business on a Special Record Date for the
payment of such Defaulted Interest, which shall be fixed in the following manner. The
Issuer shall notify the Trustee in writing of the amount of Defaulted Interest proposed
to be paid on each Debt Security of such series and the date of the

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proposed payment,
and at the same time the Issuer shall deposit with the Trustee an amount of money equal
to the aggregate amount proposed to be paid in respect of such Defaulted Interest or
shall make arrangements satisfactory to the Trustee for such deposit prior to the date
of the proposed payment, such money when deposited to be held in trust for the benefit
of the Persons entitled to such Defaulted Interest. Thereupon the Trustee shall fix a
Special Record Date for the payment of such Defaulted Interest, which shall be not more
than 15 days and not less than 10 days prior to the date of the proposed payment and
not less than 10 days after the receipt by the Trustee of the notice of the proposed
payment. The Trustee shall cause notice of the proposed payment of such Defaulted
Interest and the Special Record Date therefor to be mailed, first-class postage
prepaid, to each Holder of Debt Securities of such series at his address as it appears
in the Security Register, not less than 10 days prior to such Special Record Date.
Defaulted Interest shall be paid to the Persons in whose names the Debt Securities of
such series (or their respective Predecessor Securities) are registered at the close of
business on such Special Record Date and shall no longer be payable pursuant to the
following clause (ii).

	 	(ii)	 	The Issuer may make payment of any Defaulted Interest on the Debt Securities of
any series in any other lawful manner not inconsistent with the requirements of any
securities exchange on which the Debt Securities may be listed, and upon such notice as
may be required by such exchange, if, after notice given by the Issuer to the Trustee
of the proposed payment pursuant to this clause, such manner of payment shall be deemed
practicable by the Trustee.

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

SECTION 313. Additional Amounts.

(a) All payments made by the Issuer or the Guarantors, as applicable, under or in respect of the
Debt Securities or the Guarantees will be made without withholding or deduction for or on account
of any present or future taxes, duties, assessments or governmental charges imposed or levied by or
on behalf of the government of any jurisdiction, including Canada or any province or territory
thereof, or by any authority or agency therein or thereof having power to tax, all of which are
herein referred to as “Taxes,” unless the Issuer or such Guarantor is required to withhold or
deduct Taxes by law or by the interpretation or administration thereof by the relevant governmental
authority. If the Issuer or any Guarantor is required to withhold or deduct any amount for or on
account of Taxes from any payment made under or in respect of the Debt Securities or the
Guarantees, the Issuer or such Guarantor, as applicable, will pay such additional amounts, which
are herein referred to as “Additional Amounts,” as may be necessary so that the net amount received
by each Holder of a Debt Security (including Additional Amounts) after such withholding or
deduction will not be less than the amount the Holder would have received if such Taxes had not
been withheld or deducted. However, no Additional Amounts will be payable with respect to a
payment made to a Holder of a Debt Security, which we refer to as an “Excluded Holder,” in respect
of a beneficial owner, (i) with which the Issuer or such Guarantor

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does not deal at arm’s length
(within the meaning of the Income Tax Act (Canada)) at the time of making such payment, (ii) which
is subject to such Taxes by reason of its being connected presently or formerly with any
jurisdiction, including Canada or any province or territory thereof, otherwise than by reason of
the Holder’s purchase of the Debt Securities, the holding of Debt Securities or the receipt of
payments in respect of the Debt Securities, (iii) which presents such Debt Security for payment
(where presentation is required) more than 30 days after the relevant date (except to the extent
that the Holder thereof would have been entitled to such Additional Amounts on presenting a Debt
Security for payment on the last day of such 30 day period); for this purpose, the “relevant date”
in relation to any payments on any Debt Security means: (A) the due date for payment thereof, or
(B) if the full amount of the monies payable on such date has not been received by the Trustee on
or prior to such due date, the date on which the full amount of such monies has been so received
and notice to that effect has been duly given to Holders of Debt Securities in accordance with this
Indenture or (iv) who could lawfully avoid or reduce (but has not so avoided or reduced) such
withholding or deduction by complying, or procuring that any third party comply with, any statutory
requirements or by making, or procuring that any third party make, a declaration of non-residence,
eligibility for treaty benefits or other similar claim for exemption or reduction to any relevant
tax authority, the Issuer and
such Guarantor, as appropriate; provided that in the case of a reduction, the Holder shall be
entitled to receive Additional Amounts up to the reduced amount that would have applied had it made
the appropriate claim. The Issuer and the applicable Guarantor will also make such withholding or
deduction and remit the full amount deducted or withheld to the relevant authority in accordance
with applicable law. The Issuer will furnish to the Trustee, within 30 days after the date the
payment of any Taxes is due pursuant to applicable law, certified copies of tax receipts evidencing
that such payment has been made by the Issuer or the applicable Guarantor or other evidence of such
payment satisfactory to the Trustee. If any Holder pays any Taxes or other amounts in respect of
payments that the Issuer or Guarantors pay to such Holder, the Issuer and each Guarantor shall
indemnify and hold harmless each Holder of Debt Securities (other than an Excluded Holder) and upon
written request reimburse each such Holder for the amount of (x) any Taxes so levied or imposed and
paid by such Holder as a result of payments made under or with respect to the Debt Securities or
the Guarantees, and (y) any Taxes levied or imposed and paid by such Holder with respect to any
reimbursement under (x) above, but excluding any such Taxes on such Holder’s net income or capital.
A certificate of the Holder (or the Trustee on behalf of the Holder) accompanying the written
request and containing reasonable detail as to the amount of Taxes to be reimbursed shall be
determinative, absent manifest error, of the amount due from the Issuer and Guarantors to the
Holder under this Indemnification.

(b) At least 30 days prior to each date on which any payment under or with respect to the Debt
Securities or the Guarantees is due and payable, if the Issuer or any Guarantor is obligated to pay
Additional Amounts with respect to such payment, the Issuer will deliver to the Trustee an
Officers’ Certificate stating the fact that such Additional Amounts will be payable, the amounts so
payable and that the Issuer or such Guarantor, as the case may be, will remit such deduction or
withholding to the appropriate tax authority, and will set forth such other information necessary
to enable the Trustee to pay such Additional Amounts to Holders of the Debt Securities on the
relevant date. All references in this Indenture to the payment of principal of, premium or any
other amount, if any, and interest on, any Debt Security or Guarantee shall be deemed to include

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the payment of Additional Amounts to the extent that, in such context, Additional Amounts are, were
or would be payable.

SECTION 314. Additional Interest Under Registration Rights Agreements. 

Under certain circumstances, the Issuer may be obligated to pay Additional Interest to Holders, all
as and to the extent set forth in the Issue Date Registration Rights Agreement or any other
Registration Rights Agreement. The terms thereof are hereby incorporated herein by reference and
such Additional Interest is deemed to be interest for all purposes of this Indenture.

SECTION 315. Persons Deemed Owners.

(a) Prior to due presentment of a Debt Security for registration of transfer, the Issuer, the
Guarantors, the Trustee and any agent of any of the foregoing may treat the Person in whose name
such Debt Security is registered as the owner of such Debt Security for the purpose of receiving
payment of principal of (and premium, if any) and, subject to Section 312, interest on such Debt
Security and for all other purposes whatsoever, whether or not such Debt Security be overdue, and
none of the Issuer, the Guarantors, the Trustee or any agent of any of the foregoing shall be
affected by notice to the contrary.

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

SECTION 316. Cancellation.

Unless otherwise provided, all Debt Securities surrendered for payment, redemption, registration of
transfer or exchange shall, if surrendered to any Person other than the Trustee, be delivered to
the Trustee and shall be promptly cancelled by it. The Issuer or any Guarantor may deliver to the
Trustee for cancellation any Debt Securities previously authenticated and delivered hereunder that
the Issuer or such Guarantor may have acquired in any manner whatsoever, and all Debt Securities so
delivered shall be promptly cancelled by the Trustee. No Debt Securities shall be authenticated in
lieu of or in exchange for any Debt Securities cancelled as provided in this Section, except as
expressly permitted by this Indenture. All cancelled Debt Securities held by the Trustee shall be
disposed of in accordance with the Trustee’s policy of disposal or shall be returned to the Issuer
upon Issuer Request; provided that the Trustee shall not be required to destroy cancelled Debt
Securities.

SECTION 317. Computation of Interest.

Interest on any series of Debt Securities shall be computed in the manner set forth in the
supplemental indenture applicable to such series of Debt Securities.

SECTION 318. Payment in Currencies.

(a) Payment of principal of (and premium, if any) and interest on the Debt Securities of any series
shall be made in the currency or currencies specified pursuant to Section 301; provided that the
Holder of a Debt Security of such series may elect to receive such payment in any one of

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Dollars or
any other currency designated for such purpose pursuant to Section 301. A Holder may make such
election by delivering to the Trustee a written notice thereof, substantially in the form attached
hereto as Exhibit A or in such other form as may be acceptable to the Trustee, not later than the
close of business on the Regular Record Date or Special Record Date immediately preceding the
applicable Interest Payment Date or date for payment of Defaulted Interest or the fifteenth day
immediately preceding the Maturity of an installment of principal, as the case may be. Such
election shall remain in effect with respect to such Holder until such Holder delivers to the
Trustee a written notice substantially in the form attached hereto as Exhibit A or in such other
form as may be acceptable to the Trustee specifying a change in the currency in which such payment
is to be made; provided that any such notice must be delivered to the Trustee not later than the
close of business on the Regular Record Date or Special Record Date immediately preceding the next
Interest Payment Date or date for payment of Defaulted Interest or the fifteenth day immediately
preceding the Maturity of an installment of principal, as the case may be, in order to be effective
for the payment to be made thereon; and provided further that no such change in currency may be
made with respect to payments to be made on any Debt Security with respect to which notice of
redemption has been given by the Issuer pursuant to Article Eleven.

(b) Except as otherwise specified pursuant to Section 301, the Trustee shall deliver to the Issuer,
not later than the eighth Business Day after the Regular Record Date or Special Record Date with
respect to an Interest Payment Date or date for payment of Defaulted Interest or the fifteenth day
immediately preceding the Maturity of an installment of principal, as the case may
be, with respect to a series of Debt Securities, a written notice specifying, in the currency or
currencies in which the Debt Securities of such series are denominated, the aggregate amount of the
principal of (and premium, if any) and interest on such Debt Securities to be paid on such payment
date. If payments on any such Debt Securities are designated to be made in a currency other than
the currency in which such Debt Securities are denominated or if at least one Holder has made the
election referred to in paragraph (a) above, then such written notice shall also specify, in each
currency in which payment is to be made pursuant to paragraph (a), the amount of principal of (and
premium, if any) and interest on such series of Debt Securities to be paid in such currency on such
payment date.

(c) The Issuer shall deliver, not later than the fourth Business Day following each Regular Record
Date or Special Record Date or the fifteenth day immediately preceding the Maturity of an
installment of principal, as the case may be, to the Trustee an Exchange Rate Officers’ Certificate
in respect of the Dollar or Foreign Currency payments to be made on such payment date. Except as
otherwise specified pursuant to Section 301, the amount receivable by Holders who have elected
payment in a currency other than the currency in which such Debt Securities are denominated as
provided in paragraph (a) above shall be determined by the Issuer on the basis of the applicable
Exchange Rate set forth in the applicable Exchange Rate Officers’ Certificate.

(d) Except as otherwise specified pursuant to Section 301, if the Foreign Currency in which Debt
Securities of a series is denominated ceases to be used both by the government of the country that
issued such currency and for the settlement of transactions by banks, then with respect to each
date for the payment of principal of (and premium, if any) and interest on such Debt Securities
occurring after the final date on which the Foreign Currency was so used, all payments with respect
to such Debt Securities shall be made in Dollars; provided that payment to a Holder of a Debt
Security of such series shall be made in a different Foreign Currency if that

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Holder has elected or
elects payment in such Foreign Currency as provided for by paragraph (a) above. If payment is to
be made in Dollars to the Holders of any such Debt Securities pursuant to the provisions of the
preceding sentence, then the amount to be paid in Dollars on a payment date by the Issuer to the
Trustee and by the Trustee or any Paying Agent to Holders shall be determined by the Trustee as of
the Regular Record Date or Special Record Date with respect to such Interest Payment Date or date
for payment of Defaulted Interest or the fifteenth day immediately preceding the Maturity of an
installment of principal, as the case may be, and shall be equal to the sum obtained by converting
the specified Foreign Currency into Dollars at the Exchange Rate on the last Record Date on which
such Foreign Currency was so used in such capacity.

(e) All decisions and determinations of the Trustee regarding conversion of Foreign Currency into
Dollars pursuant to Sections 318(d) or 301 or the Exchange Rate shall, in the absence of manifest
error, be conclusive for all purposes and irrevocably binding upon the Issuer and all Holders of
the Debt Securities of the applicable series. If a Foreign Currency in which payment of Debt
Securities of a series may be made ceases to be used both by the government of the country which
issued such currency and for the settlement of transactions by banks, the Issuer, after learning
thereof, will give written notice pursuant to Section 105 thereof to the Trustee immediately (and
the Trustee promptly thereafter will give notice to the Holders in the manner provided in Section
106) specifying the last date on which the Foreign Currency was used for the payment of principal
of (and premium, if any) or interest on such Debt Securities. The Trustee shall be fully
justified, protected and otherwise held harmless in relying and acting
upon the information so received by the Issuer and shall not otherwise have any duty or obligation
to determine or verify such information independently.

SECTION 319. Judgments.

Any payment in respect of principal of (and premium, if any) and interest otherwise due on Debt
Securities made in Canadian currency by NNC or the Issuer to any Holder of Debt Securities (the
“Payee”) pursuant to a judgment or order of a court or tribunal in Canada shall constitute a
discharge of NNC or the Issuer only to the extent of the amount of Dollars or Foreign Currency
payable on such Debt Securities (the “Purchased Amount”) that the Payee, on the date of such
payment in Canadian currency, would be able to purchase with the amount so paid based on the noon
buying rate for Dollars or the Foreign Currency for wire transfers quoted on the date of payment
or, if such date if not a Business Day in Toronto, Canada, on the next Business Day in Toronto,
Canada. If the amount otherwise due to the Payee (the “Amount Due”) is greater or less than the
Purchased Amount, NNC or the Issuer, as the case may be, shall indemnify and hold harmless the
Payee to the extent that the Amount Due exceeds the Purchased Amount and NNC or the Issuer, as the
case may be, may retain the amount, if any, by which the Amount Due is less than the Purchased
Amount. This indemnity shall constitute an obligation that is separate and independent from the
other obligations contained in this Indenture and shall give rise to a separate and independent
cause of action and shall continue in full force and effect notwithstanding any judgment or order
for a liquidated sum in respect of amounts due under the Debt Securities or any judgment or order.

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SECTION 320. CUSIP Numbers.

The Issuer in issuing the Debt Securities may use “CUSIP” numbers (if then generally accepted in
use), and if so, the Trustee shall use “CUSIP” numbers in notices and 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 Debt Securities or as contained in any notice
of a redemption and that reliance may be placed only on the other identification numbers printed on
the Debt Securities, and any such redemption shall not be affected by any defect in or omission of
such numbers. The Issuer will promptly notify the Trustee of any change in the “CUSIP” numbers.

ARTICLE FOUR

Satisfaction and Discharge

SECTION 401. Satisfaction and Discharge of Indenture.

(a) This Indenture shall upon Issuer Request cease to be of further effect (except as to any
surviving rights of registration of transfer or exchange of Debt Securities provided for herein and
rights to receive payments of principal of (and premium, if any) and interest thereon) with respect
to a series of Debt Securities specified by the Issuer, and the Trustee, at the expense of the
Issuer, shall execute proper instruments provided to it acknowledging satisfaction and discharge of
this Indenture with respect to the Debt Securities of such series, when:

	 	(i)	 	either

(A) all Debt Securities of such series theretofore issued by the Issuer and
authenticated and delivered hereunder (other than: (1) Debt Securities that have
been destroyed, lost or stolen and that have been replaced or paid as provided in
Section 311; and (2) Debt Securities for whose payment money has theretofore been
deposited in trust or segregated and held in trust by the Issuer and thereafter
repaid to the Issuer or discharged from such trust, as provided in Section 1003)
have been delivered to the Trustee for cancellation; or

(B) all Debt Securities of such series issued by the Issuer and authenticated and
delivered hereunder and not theretofore delivered to the Trustee for cancellation:

	 	(1)	 	have become due and payable;
	 
	 	(2)	 	will become due and payable at their Stated Maturity Date within one year; or
	 
	 	(3)	 	are to be called for redemption within one year under arrangements satisfactory
to the Trustee for the giving of notice by the Trustee in the name, and at the expense,
of the Issuer,

and the Issuer, in the case of (B)(1), (B)(2) or (B)(3) above, has irrevocably deposited or
caused to be deposited with the Trustee as trust funds in trust an amount sufficient to pay
and discharge the entire indebtedness on such Debt Securities for principal (and

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premium, if
any) and interest to the date of such deposit (in the case of Debt Securities that have
become due and payable) or to the Stated Maturity Date or Redemption Date, as the case may
be;

	 	(ii)	 	the Issuer or the Guarantors has paid or caused to be paid all other sums
payable hereunder by the Issuer or the Guarantors; and
	 
	 	(iii)	 	the Issuer has delivered to the Trustee an Officers’ Certificate and Opinion
of Counsel each stating that all conditions precedent herein provided related to the
satisfaction and discharge of this Indenture have been complied with.

(b) Notwithstanding the satisfaction and discharge of this Indenture, the obligations of the Issuer
to the Trustee under Section 606 and, if money shall have been deposited with the Trustee pursuant
to paragraph (a)(i)(B) of this Section, the obligations of the Trustee under Section 402 and
Section 1003(e) shall survive such satisfaction and discharge.

SECTION 402. Application of Trust Money.

Subject to the provisions of Section 1003(e) of this Indenture, all money deposited with the
Trustee pursuant to Section 401 of this Indenture shall be held in trust and applied by it, in
accordance with the provisions of the Debt Securities, the Guarantees and this Indenture, to the
payment, either directly or through any Paying Agent (including the Issuer or a Guarantor, acting
as its own Paying Agent) as the Trustee may determine, to the Persons entitled thereto, of the
principal (and premium, if any) and interest for whose payment such money has been deposited with
the Trustee.

ARTICLE FIVE

Defaults and Remedies

SECTION 501. Events of Default and Enforcement.

If and when any one or more of the following events (herein called an “Event of Default”) shall
happen and be continuing with respect to the Debt Securities of any series, namely:

	 	(1)	 	the failure to pay principal of any Debt Security of such series when such
principal becomes due and payable, whether at Maturity, upon redemption or otherwise;
	 
	 	(2)	 	the failure to pay interest on any Debt Security of such series when the same
becomes due and the continuance of such Default for a continuous period of 30 days;
	 
	 	(3)	 	a Default in the deposit of any sinking fund payment on any Debt Security of
such series when due;
	 
	 	(4)	 	a Default by the Issuer, NNC, or during any period in which NNI is a Guarantor,
NNI, in the performance or observance of any of their respective covenants, agreements
or other obligations set forth herein for a continuous period of 90 days

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after the
Issuer or such Guarantor receives written notice specifying the Default (and demanding
that such Default be remedied) from the Holders of not less than 25% in principal
amount of the Outstanding Debt Securities of such series;

	 	(5)	 	a decree, judgment or order by a court having jurisdiction in the premises
shall have been entered adjudging the Issuer or any Guarantor a bankrupt or insolvent
or approving as properly filed a petition seeking reorganization, readjustment,
arrangement, composition or similar relief for the Issuer or any Guarantor under any
bankruptcy, insolvency or other similar applicable law and such decree, judgment or
order of a court having jurisdiction in the premises for the appointment of a receiver
or liquidator or trustee or assignee in bankruptcy or insolvency of the Issuer or such
Guarantor, as the case may be, of a substantial part of its property, or for the
winding up or liquidation of its affairs, shall have remained in force for a period of
60 consecutive days; or any substantial part of the property of the Issuer or such
Guarantor shall be sequestered or attached and shall not be returned to the possession
of the Issuer or such Guarantor or released from such attachment whether by filing of a
bond, or stay or otherwise within 60 consecutive days thereafter;
	 
	 	(6)	 	the Issuer or any Guarantor shall institute proceedings to be adjudicated a
voluntary bankrupt, or shall consent to the filing of a bankruptcy proceeding against
it, or shall file a petition or answer or consent seeking reorganization, readjustment,
arrangement, composition or similar relief under any bankruptcy, insolvency or other
similar applicable law or the Issuer or such Guarantor shall consent to the filing of
any such petition, or shall consent to the appointment of a receiver or liquidator or
trustee or assignee in bankruptcy or insolvency for it or of a substantial part of its
property, or shall make an assignment for the benefit of
creditors, or shall be unable, or admit in writing its inability, to pay its debts
generally as they become due, or corporate action shall be taken by the Issuer or
such Guarantor in furtherance of any of the aforesaid actions;
	 
	 	(7)	 	a Default by NNC, the Issuer or during any period in which NNI is a Guarantor,
NNI, under a single obligation in respect of Funded Debt that exceeds on its face
$100,000,000 in principal amount, which results in such Funded Debt becoming or being
declared due and payable prior to the date on which it would otherwise become due and
payable and such acceleration shall not be rescinded or annulled within 10 days after
written notice (i) specifying such Default and (ii) stating that such notice is a
“Notice of Default” hereunder, shall have been given to such defaulting entity by
Holders of not less than 25% in principal amount of the Outstanding Debt Securities of
such series;
	 
	 	(8)	 	any Guarantee shall cease to be in full force and effect (other than in
accordance with the terms of this Indenture) or any Guarantor denies or disaffirms its
obligations under its Guarantee;
	 
	 	(9)	 	one or more judgments in an aggregate amount in excess of $100,000,000 shall
have been rendered against NNC, the Issuer or, during any period in which NNI is a
Guarantor, NNI, and such judgments remain undischarged, unpaid in

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accordance with its
or their respective terms or unstayed for a period of 90 days after such judgment or
judgments become final and non-appealable;

	 	(10)	 	a failure by the Issuer to make a Change of Control Offer; and
	 
	 	(11)	 	any other Event of Default provided with respect to the Debt Securities of that
series and specified in any supplemental indenture applicable to such series of Debt
Security;

then, and in each and every such case, the Trustee or the Holders of not less than 25% in
principal amount of the Outstanding Debt Securities of such series at such time may declare
the principal of (and premium, if any) together with accrued interest on, all Debt
Securities of such series to be due and payable immediately, by a notice in writing to the
Issuer and the Guarantors, and to the Trustee if given by the Holders, and upon any such
declaration such principal amount, together with accrued interest thereon shall become
immediately due and payable.

SECTION 502. Waiver of Declaration.

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

(a) the Issuer or a Guarantor has paid or deposited with the Trustee a sum sufficient to pay:

	 	(i)	 	all overdue interest on all the Debt Securities of such series;
	 
	 	(ii)	 	the principal of any of the Debt Securities of such series that have become due
otherwise than by such declaration of acceleration, and interest thereon at the rate or
rates prescribed therefor in such Debt Securities; and
	 
	 	(iii)	 	to the extent that payment of such interest is lawful and applicable, interest
upon overdue installments of interest at the rate or rates prescribed therefor in such
Debt Securities; and

(b) all Events of Default with respect to the Debt Securities of such series, other than the
non-payment of the principal of, premium if any and interest on, such Debt Securities which have
become due solely by such declaration of acceleration, have been cured or waived in accordance with
the provisions of the Indenture.

SECTION 503. Waiver.

(a) The Holders of not less than a majority in principal amount of the Outstanding Debt Securities
of any series may on behalf of the Holders of all Debt Securities of such series waive any past
Default hereunder with respect to such series and its consequences, except a Default:

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	 	(i)	 	in the payment of the principal of (or premium, if any) or interest on any Debt
Security of such series; or
	 
	 	(ii)	 	in respect of a covenant or provision hereof that under Article Nine cannot be
modified or amended without the consent of the Holder of each Outstanding Debt Security
of such series affected.

(b) 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. No such waiver
shall extend to any subsequent or other Default or impair any right consequent thereon.

SECTION 504. Other Remedies.

(a) If an Event of Default occurs and is continuing, the Trustee may pursue any available remedy to
collect the payment of principal of (and premium, if any) or interest on Debt Securities or to
enforce the performance of any provision of Debt Securities or this Indenture.

(b) The Trustee may maintain a proceeding even if it does not possess any Debt Securities or does
not produce any of them in the proceeding. A delay or omission by the Trustee or any Holder in
exercising any right or remedy accruing upon an Event of Default shall not impair the right or
remedy or constitute a waiver of or acquiescence in the Event of Default. All remedies, except as
provided in Section 311, are cumulative to the extent permitted by law.

SECTION 505. Application of Money Collected.

Any money collected by the Trustee pursuant to this Article shall be applied in the following
order, at the dates fixed by the Trustee and, in case of the distribution of such money on account
of principal of (and premium, if any) or interest, upon presentation of Debt 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 606;

SECOND: To the payment of the amounts then due and unpaid for principal of (and premium, if any)
and interest on the Debt 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 Debt Securities for principal (and premium, if any) and interest, respectively.
The Holders of any Debt Securities denominated in a Foreign Currency shall be entitled to receive
a ratable portion of the amount determined by the Trustee converting the principal amount
Outstanding of such Debt Securities and accrued but unpaid interest on such Debt Securities in the
currency in which such Debt Securities are denominated into Dollars at the Exchange Rate as of the
date of declaration of acceleration of the Maturity of the Debt Securities (or, if there is no such
rate on such date for the reasons specified in Section 318(d), such rate on the date specified in
such Section); and

THIRD: To the Issuer or, to the extent the Trustee collects any amount pursuant to Section 203
hereof from a Guarantor, to such Guarantor.

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SECTION 506. Control by Holders.

(a) The Holders of at least a majority in principal amount of the Outstanding Debt Securities of
any series, may:

	 	(i)	 	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 it with respect
to the Debt Securities of such series; and
	 
	 	(ii)	 	take any other action authorized to be taken by or on behalf of the Holders of
any specified aggregate principal amount of Debt Securities under any provisions of
this Indenture or under applicable law.

(b) The Trustee may refuse, however, to follow any direction that conflicts with law or this
Indenture or is unduly prejudicial to the rights of any Holders.

SECTION 507. Limitation on Suits. 

(a) Any Holder of Debt Securities may individually pursue a remedy with respect to this Indenture
directly only if: (i) such Holder gives to the Trustee written notice of a continuing Event of
Default; (ii) the Holders of at least 25% in principal amount of all of the then-Outstanding Debt
Securities issued under the Indenture (treated as a single class) make a request in writing to the
Trustee to pursue the remedy; (iii) such Holder or Holders indemnify the Trustee in form
satisfactory to it against any loss, liability, claim, damage or expense; (iv) the Trustee does not
comply with the request within 60 days after receipt of such request and indemnity; and (v) during
such 60-day period the Holders of a majority in principal amount of all of the Outstanding Debt
Securities (treated as a single class) do not give the Trustee a direction inconsistent with the
request.

(b) Holders may not use this Indenture to prejudice the rights of another Holder or to obtain a
preference or priority over another Holder.

SECTION 508. Rights of Holders To Receive Payment. 

Notwithstanding any other provision of this Indenture, the right of any Holder to receive payment
of principal of (and, premium, if any) and interest on Debt Securities held by such
Holder, on or after the respective due dates expressed in the Debt Securities (or, in the case of
redemption, on the Redemption Date), or to bring suit for the enforcement of any such payment on or
after such respective dates, shall not be impaired or affected without the consent of the Holder.

SECTION 509. Collection Suit by Trustee. 

If an Event of Default specified in Section 501(1), (2) or (3) occurs and is continuing, the
Trustee may recover judgment in its own name and as trustee of an express trust against the Issuer
or a Guarantor for the whole amount of principal (and premium, if any) and interest remaining
unpaid.

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SECTION 510. Trustee May File Proofs of Claim. 

The Trustee may file such proofs of claim and other papers or documents as may be necessary or
advisable in order to have the claims of the Trustee and the Holders allowed in any judicial
proceedings relative to the Issuer or a Guarantor, its creditors or its property.

SECTION 511. Undertaking for Costs. 

In any suit for the enforcement of any right or remedy under this Indenture or in any suit against
the Trustee for any action taken or omitted by it as Trustee, a court in its discretion may require
the filing by any party litigant in the suit of an undertaking to pay the costs of the suit, and
the court in its discretion may assess reasonable costs, including reasonable attorneys’ fees and
expenses, against any party litigant in the suit, having due regard to the merits and good faith of
the claims or defenses made by the party litigant. This Section does not apply to a suit by the
Trustee, a suit by a Holder pursuant to Section 507, or a suit by any Holder or group of Holders of
more than 10% in principal amount of the Outstanding Debt Securities.

SECTION 512. Delay or Omission Not Waiver.

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

SECTION 513. Waiver of Stay or Extension Laws.

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

ARTICLE SIX

The Trustee

SECTION 601. Duties of Trustee.

(a) If an Event of Default has occurred and is continuing, the Trustee shall exercise such of the
rights and powers vested in it by this Indenture, and use the same degree of care and skill in
their exercise, as a prudent person would exercise or use under the circumstances in the conduct of
his own affairs.

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(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 shall be inferred or implied; 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 certificates or opinions furnished to the Trustee and conforming to the
requirements of this Indenture; however, the Trustee shall examine the certificates and
opinions required to be delivered to it pursuant to the terms of this Indenture to
determine whether or not they so conform.

(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;
	 
	 	(iii)	 	the Trustee shall not be liable with respect to any action it takes or omits
to take in good faith in accordance with a direction received by it pursuant to Section
506; and
	 
	 	(iv)	 	no provision of this Indenture shall require the Trustee to expend or risk its
own funds or otherwise incur any financial liability in the performance of any of its
duties hereunder, or in the exercise of any of its rights or powers, if it shall have
reasonable grounds for believing that repayment of such funds or adequate indemnity
against such risk or liability is not reasonably assured to it.

(d) Every provision of this Indenture that in any way relates to the Trustee is subject to the
above paragraphs of this Section. The Trustee may refuse to perform any duty or exercise any right
or power under this Indenture (including with respect to Section 506) unless it receives indemnity
reasonably satisfactory to it for actions taken under this Indenture. The Trustee shall not be
liable for interest on any money received by it except as the Trustee may agree in writing with the
Issuer or the applicable Guarantor. Money held in trust by the Trustee need not be segregated from
other funds except to the extent required by law.

SECTION 602. Rights of Trustee.

The Trustee may rely on any document (whether in its 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, but the Trustee, in its discretion, may make
such further inquiry or investigation into such facts or matters as it may see fit, and, if the
Trustee shall determine to make such further inquiry or investigation, it shall be entitled to
examine the books, records and premises of the Issuer, personally or by agent or attorney at the
sole cost of the Issuer and shall incur no liability or additional liability of any kind by reason
of

59

 

such inquiry or investigation. Before the Trustee acts or refrains from acting, it may require
an Officers’ Certificate or an Opinion of Counsel. The Trustee shall not be liable for any action
it takes or omits to take in good faith in reliance thereon. The Trustee may act through agents or
attorneys and shall not be responsible for the misconduct or negligence of any agent or attorney
appointed with due care. The Trustee shall not be liable for any action it takes or omits to take
in good faith, except as otherwise provided in this Indenture, which it reasonably believes to be
authorized or within its rights or powers. The Trustee may consult with counsel of its selection
and the advice of such counsel or any Opinion of Counsel shall be full and complete authorization
and protection in respect of any action taken, suffered or omitted by it hereunder in good faith
and in reliance thereon.

The rights, privileges, protections, immunities and benefits given to the Trustee, including,
without limitation, its right to be indemnified, are extended to, and shall be enforceable by, the
Trustee in each of its capacities hereunder as Security Registrar and Security Custodian and each
agent, custodian and other Person employed by the Trustee to act hereunder.

SECTION 603. Individual Rights of Trustee. 

The Trustee in its individual or any other capacity may become the owner or pledgee of Debt
Securities and may otherwise deal with the Issuer or the Guarantors with the same rights it would
have if it were not Trustee. Any agent of the Trustee may do the same with like rights. However,
the Trustee is at all times subject to Sections 609 and 610.

SECTION 604. Trustee’s Disclaimer. 

The recitals contained herein and in the Debt Securities, except the Trustee’s certificate of
authentication, shall be taken as the statements of the Issuer and the Trustee assumes no
responsibility for the correctness of same. The Trustee makes no representations as to the
validity or sufficiency of any offering materials, this Indenture or of the Debt Securities. The
Trustee shall not be accountable for the use or application by the Issuer of any of the Debt
Securities or proceeds of the Debt Securities.

SECTION 605. Notice of Defaults. 

(a) If an Event of Default with respect to a series of Debt Securities occurs and is continuing,
the Trustee shall mail to Holders of Debt Securities of such series a notice of the Event of
Default within 90 days after it occurs. Except in the case of an Event of Default resulting from
nonpayment on any Debt Securities, the Trustee may withhold the notice if and so long as a
committee of its Responsible Officers in good faith determines that withholding the notice is in
the interests of the Holders of Debt Securities.

(b) The Trustee shall not be deemed to have notice of any Default or Event of Default unless a
Responsible Officer of the Trustee has 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 Debt Securities and this Indenture.

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SECTION 606. Compensation and Indemnity. 

(a) The Issuer shall pay to the Trustee from time to time compensation for its services as agreed
separately by the Issuer and the Trustee. The Trustee’s compensation shall not be limited by any
law on compensation of a trustee of an express trust.

(b) The Issuer shall fully indemnify the Trustee and any predecessor Trustee and their agents for,
and to hold them harmless against, any and all loss, damage, claims, liability or expense
(including reasonable attorneys’ fees and expenses) arising out of or in connection with the
acceptance or administration of the trust or trusts hereunder, including the costs and expenses of
defending itself against any claim or liability in connection with the exercise or performance of
any of its rights, powers, trusts or duties hereunder, except to the extent that such loss, damage,
claim, liability or expense is caused by its own negligent action or failure to act, willful
misconduct or bad faith or, with respect to indemnification of an agent hereunder, the negligent
action or failure to act, willful misconduct or bad faith of such agent. The Trustee shall notify
the Issuer promptly of any claim for which it may seek indemnity. The Issuer need not pay for any
settlement made without its consent.

(c) Except as otherwise expressly provided herein, the Issuer agrees to reimburse the Trustee upon
its request for all reasonable and documented expenses, disbursements and advances incurred or made
by the Trustee in accordance with any provision of this Indenture (including the reasonable and
documented compensation, expenses and disbursements of its agents and counsel), except any such
expense, disbursement or advance as may be attributable to its negligent action or failure to act,
willful misconduct or bad faith or, with respect to documented compensation, expenses and
disbursements of an agent or attorney, the negligent action or failure to act, willful misconduct
or bad faith of such agent or attorney.

(d) To secure the Issuer’s respective payment obligations in this Section, the Trustee shall have a
lien prior to Debt Securities on all money or property held or collected by the Trustee, except
that held in trust to pay principal of, premium, if any, on and interest on Debt Securities.

When the Trustee incurs expenses or renders services in connection with an Event of Default
specified in Section 501(5) or Section 501(6), the reasonable and documented expenses (including
the reasonable and documented charges and expenses of its counsel) and compensation for the
services are intended to constitute expenses of administration under any applicable Federal or
state bankruptcy, insolvency or other similar law.

The provisions of this Section shall survive the satisfaction and discharge of the Debt Securities,
termination of this Indenture and the resignation or removal of the Trustee.

SECTION 607. Replacement of Trustee.

(a) A resignation or removal of the Trustee and appointment of a successor Trustee for the Debt
Securities of any series shall become effective only upon the successor Trustee’s acceptance of
appointment as provided in this Section.

(b) The Trustee may resign at any time with respect to Debt Securities of one or more series by
giving written notice thereof to the Issuer and the Guarantors. If an instrument of acceptance

61

 

by
a successor Trustee shall not have been delivered to the Trustee within 30 days after the giving of
such notice of resignation, the resigning Trustee may at the expense of the Issuer petition any
court of competent jurisdiction for the appointment of a successor Trustee to the Trustee. The
Holders of at least a majority in principal amount of the then Outstanding Debt Securities of such
series may remove the Trustee by so notifying the Trustee, the Issuer and the Guarantors if: (i)
the Trustee fails to comply with Section 609; (ii) the Trustee is adjudged a bankrupt or an
insolvent; (iii) a receiver or public officer takes charge of the Trustee or its property; or (iv)
the Trustee becomes incapable of acting; in addition, in any such case, (1) the Issuer by a Board
Resolution may remove the Trustee with respect to all Debt Securities, or (2) any Holder who has
been a bona fide Holder of a Debt Security of any series for at least six months may, on behalf of
himself and all others similarly situated, petition any court of competent jurisdiction for the
removal of the Trustee for the Debt Securities of such series and the appointment of a successor
Trustee.

(c) If the Trustee resigns or is removed or if a vacancy exists in the office of Trustee for any
reason with respect to the Debt Securities of one or more series, the Issuer shall promptly appoint
a successor Trustee or Trustees with respect to the Debt Securities of that or those series (it
being understood that any such successor Trustee may be appointed with respect to the Debt
Securities of one or more or all of such series and that, except as provided by Section 611, at any
time there shall be only one Trustee with respect to the Debt Securities of any particular series)
and shall comply with the applicable requirements of this Section 607. Within one year after the
successor Trustee takes office, the Holders of a majority in principal amount of the Outstanding
Debt Securities of any series may appoint a successor Trustee to replace the successor Trustee
appointed by the Issuer with respect to the Debt Securities of such series. If such a successor
Trustee does not take office within 60 days after the retiring Trustee resigns or is removed, the
retiring Trustee, the Issuer or the Holders of at least 10% in principal amount of the Debt
Securities of any series may petition any court of competent jurisdiction for the appointment of a
successor Trustee with respect to the Debt Securities of such series.

(d) If the Trustee fails to comply with Section 609, any Holder of Debt Securities may petition any
court of competent jurisdiction for the removal of the Trustee and the appointment of a successor
Trustee.

(e) The Issuer shall give notice of each resignation and each removal of the Trustee with respect
to Debt Securities of any series and each appointment of a successor Trustee with respect to Debt
Securities of any series in the manner provided in Section 106. Each notice shall include the name
of the successor Trustee with respect to the Debt Securities of such series and the address of its
Corporate Trust Office.

(f) In the case of an appointment hereunder of a successor Trustee with respect to all Debt
Securities, every such successor Trustee so appointed shall execute, acknowledge and deliver to the
Issuer and to the Guarantors and to the retiring Trustee an instrument accepting such appointment,
and thereupon the resignation or removal of the retiring Trustee shall become effective and such
successor Trustee, without any further act, deed or conveyance, shall become vested with all the
rights, powers, trusts and duties of the retiring Trustee; but, on request of the Issuer, any
Guarantor or the successor Trustee, such retiring Trustee shall, upon payment of its charges,
execute and deliver an instrument transferring to such successor Trustee all the rights,

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powers,
trusts and duties of the retiring Trustee, and shall duly assign, transfer and deliver to such
successor Trustee all property and money held by such retiring Trustee hereunder.

(g) In case of the appointment hereunder of a successor Trustee with respect to the Debt Securities
of one or more (but not all) series, the Issuer, the Guarantors, the retiring Trustee upon payment
of its charges and each successor Trustee with respect to the Debt Securities of one or more series
shall execute and deliver an indenture supplemental hereto wherein each successor Trustee shall
accept such appointment and which: (i) shall contain such provisions as shall be necessary or
desirable to transfer and confirm to, and to vest in, each successor Trustee all the rights,
powers, trusts and duties of the retiring Trustee with respect to the Debt Securities of that or
those series to which the appointment of such successor Trustee relates; (ii) if the retiring
Trustee is not retiring with respect to all Debt Securities, shall contain such provisions as shall
be deemed necessary or desirable to confirm that all the rights, powers, trusts and duties of the
retiring Trustee with respect to the Debt Securities of that or those series as to which the
retiring Trustee is not retiring shall continue to be vested in the retiring Trustee; and (iii)
shall add to or change any of the provisions of this Indenture as shall be necessary to provide for
or facilitate the administration of the trusts hereunder by more than one Trustee, it being
understood that nothing herein or in such supplemental indenture shall constitute such Trustees
co-trustees of the same trust and that each such Trustee shall be trustee of a trust or trusts
hereunder separate and apart from any trust or trusts hereunder administered by any other such
Trustee; and upon the execution and delivery of such supplemental indenture the resignation or
removal of the retiring Trustee shall become effective to the extent provided therein and each such
successor Trustee, without any further act, deed or conveyance, shall become vested with all the
rights, powers, trusts and duties of the retiring Trustee with respect to the Debt Securities of
that or those series to which the appointment of such successor Trustee relates; but, on request of
the Issuer, any
Guarantor or any successor Trustee, such retiring Trustee shall duly assign, transfer and deliver
to such successor Trustee all property and money held by such retiring Trustee hereunder with
respect to the Debt Securities of that or those series to which the appointment of such successor
Trustee relates.

(h) Upon request of any such successor Trustee, the Issuer and the Guarantors shall execute any and
all instruments for more fully and certainly vesting in and confirming to such successor Trustee
all such rights, powers, trusts and duties referred to in paragraph (f) or (g) of this Section, as
the case may be.

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

SECTION 608. Successor Trustee by Merger, etc.

If the Trustee consolidates, merges or converts into, or transfers all or substantially all of its
corporate trust business, including this transaction, to, another corporation, the successor
corporation without any further act shall be the successor Trustee; provided that prior written
notice thereof is given to the Issuer and the Guarantors and such successor corporation is
acceptable to the Issuer and the Guarantors.

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SECTION 609. Eligibility; Disqualification.

This Indenture shall always have a Trustee who satisfies the requirements of Section 310(a)(1) of
the Trust Indenture Act as then in effect. The Trustee shall always have a combined capital and
surplus of at least $5 million, calculated as permitted by Section 310(a)(2) of the Trust Indenture
Act as then in effect. The Trustee is subject to Section 310(b) of the Trust Indenture Act,
including the optional provision permitted by the second sentence of Section 310(b)(9) of the Trust
Indenture Act.

SECTION 610. Preferential Collection of Claims Against the Issuer.

The Trustee is subject to Section 311(a) of the Trust Indenture Act, except with respect to any
creditor relationship listed in Section 311(b) of the Trust Indenture Act. A Trustee who has
resigned or been removed is subject to Section 311(a) of the Trust Indenture Act to the extent
indicated.

SECTION 611. Appointment of Co-Trustee.

The Issuer, the Guarantors and the Trustee may, at any time, appoint a co-trustee for any purpose
or purposes of this Indenture if considered necessary or desirable in the circumstances including,
without limitation, to fulfill any legal requirement under the applicable laws of any jurisdiction,
including any applicable provision of the Canada Business Corporations Act, subject to the
following provisions and conditions:

	 	(1)	 	the instrument appointing the co-trustee shall refer to this Indenture and the
conditions of this Section 611;
	 
	 	(2)	 	the instrument appointing the co-trustee shall set forth the rights, powers,
duties, trusts and obligations under or in connection with this Indenture to be made
available to, imposed upon, exercised and performed by each co-trustee and may, for
greater certainty, identify those rights, powers, duties, trusts and obligations that
will not be made available to, imposed upon, exercised or performed by each such
co-trustee; and
	 
	 	(3)	 	no trustee hereunder shall be responsible for or personally liable by reason of
any act or omission of any other trustee hereunder.

ARTICLE SEVEN

Holders’ Lists and Reports by Trustee, Issuer and Guarantors

SECTION 701. Preservation of Information; Communications to Holders.

(a) The Trustee shall preserve, in as current a form as is reasonably practicable, the names and
addresses of the Holders of Debt Securities received by the Security Registrar.

(b) If three or more Holders of a series of Debt Securities (hereinafter referred to as
“applicants”) apply in writing to the Trustee, and furnish to the Trustee reasonable proof that
each such applicant has owned a Debt Security for a period of at least six months immediately

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preceding the date of such application, and such application states that the applicants desire to
communicate with other Holders of Debt Securities of a particular series (in which case the
applicants must hold Debt Securities of such series) or with all Holders of Debt Securities with
respect to their rights under this Indenture or under the Debt Securities and is accompanied by a
copy of the form of proxy or other communication which such applicants propose to transmit, then
the Trustee shall, within five Business Days after the receipt of such application, at its
election, either:

	 	(i)	 	afford such applicants access to the information preserved at the time by the
Trustee in accordance with Section 701(a); or
	 
	 	(ii)	 	inform such applicants as to the approximate number of the Holders of Debt
Securities of such series or of all Debt Securities, as the case may be, whose names
and addresses appear in the information preserved at the time by the Trustee in
accordance with Section 701(a), and as to the approximate cost to the applicant of
mailing to such Holders the form of proxy or other communication, if any, specified in
such application.

If the Trustee shall elect not to afford such applicants access to such information, the Trustee
shall, upon the written request of such applicants, mail to each Holder whose name and address
appears in the information preserved at the time by the Trustee in accordance with Section 701(a),
a copy of the form of proxy or other communication that is specified in such request, with
reasonable promptness after a tender to the Trustee of the material to be mailed and of payment, or
provision for the payment, by the applicant, of the reasonable expenses of mailing, unless within
five days after such tender, the Trustee shall mail to such applicants and file with the
Commission, together with a copy of the material to be mailed, a written statement to the
effect that, in the opinion of the Trustee, such mailing would be contrary to the best interests of
the Holders or would be in violation of applicable law. Such written statement shall specify the
basis of such opinion. If the Commission, after opportunity for a hearing upon the objections
specified in the written statement so filed, shall enter an order refusing to sustain any of such
objections or if, after the entry of an order sustaining one or more of such objections, the
Commission shall find, after notice and opportunity for hearing, that all the objections so
sustained have been met and shall enter an order so declaring, the Trustee shall mail copies of
such material to all such Holders with reasonable promptness after the entry of such order and the
renewal of such tender, otherwise the Trustee shall be relieved of any obligation or duty to such
applicants respecting their application.

(c) Every Holder of Debt Securities, by receiving and holding the same, agrees with the Issuer, the
Guarantors and the Trustee that none of the Issuer, Guarantors and the Trustee shall be held
accountable by reason of the disclosure of any such information as to the names and addresses of
the Holders in accordance with Section 701(b), regardless of the source from which such information
was derived, and that the Trustee shall not be held accountable by reason of mailing any material
pursuant to a request made under Section 701(b).

SECTION 702. Reports by Trustee.

(a) Within 60 days after May 15 of each year following the date of this Indenture, the Trustee
shall mail to Holders a brief report dated as of such reporting date that complies with

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Section
313(a) of the Trust Indenture Act. The Trustee shall also comply with Sections 313(b)(2) and
313(c) of the Trust Indenture Act.

(b) A copy of each report at the time of its mailing to Holders shall be filed with the Commission
and each stock exchange on which Debt Securities of any series are listed.

SECTION 703. Reports by Issuer and Guarantors.

(a) NNC or the Issuer will:

	 	(i)	 	file with the Trustee, within 15 days after NNC is required to file the same
with the Commission, copies of the annual reports and of the information, documents and
other reports (or copies of such portions of any of the foregoing as the Commission may
from time to time by rules and regulations prescribe) which NNC may be required to file
with the Commission pursuant to Section 13 or Section 15(d) of the Exchange Act; or, if
NNC is not required to file information, documents or reports pursuant to either of
these Sections, NNC will file with the Trustee and the Commission, in accordance with
rules and regulations prescribed from time to time by the Commission, such of the
supplementary and periodic information, documents and reports that may be required
pursuant to Section 13 of the Exchange Act in respect of a security listed and
registered on a national securities exchange as may be prescribed from time to time in
such rules and regulations;
	 
	 	(ii)	 	file with the Trustee and the Commission, in accordance with rules and
regulations prescribed from time to time by the Commission, such additional
information, documents and reports with respect to compliance thereby with the
conditions and covenants of this Indenture as may be required from time to time by
such rules and regulations; and
	 
	 	(iii)	 	notify the Trustee when Debt Securities of any series are listed on any stock
exchange.

(b) Delivery of such reports, information and documents to the Trustee is for informational
purposes only and the Trustee’s receipt of such shall not constitute constructive notice of any
information contained therein or determinable from information contained therein, including the
Issuer’s compliance with any of its covenants hereunder (as to which the Trustee is entitled to
rely exclusively on Officers’ Certificates).

(c) The Issuer and the Guarantors shall also comply with the provisions of Section 314(a) of the
Trust Indenture Act.

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ARTICLE EIGHT

Amalgamation, Merger, Conveyance, Transfer or Lease

SECTION 801. Amalgamations and Mergers of Issuer or a Guarantor and Conveyances Permitted
Subject to Certain Conditions. 

So long as any Debt Security of a particular series remains Outstanding, none of NNC, the Issuer
or, during any period in which NNI is a Guarantor, NNI, will amalgamate or merge with any other
corporation or enter into any reorganization or arrangement or effect any conveyance, transfer or
lease of all or substantially all of its and its Subsidiaries’ assets, taken as a whole, unless in
any such case:

	 	(i)	 	either (A) it shall be the surviving Person or one of the continuing Persons,
or (B) the successor corporation (or the Person that leases or that acquires by
conveyance or transfer all or substantially all of its and its Subsidiaries’ assets,
taken as a whole) expressly assumes the due and punctual payment of the principal of
(and premium, if any) and interest on all Outstanding Debt Securities issued hereunder,
according to their tenor, and the due and punctual performance and observance of all of
the covenants and conditions of this Indenture to be performed by it by supplemental
indenture pursuant to Article Nine satisfactory to the Trustee, executed and delivered
to the Trustee by such Person; and
	 
	 	(ii)	 	NNC, the Issuer or, during any period in which NNI is a Guarantor, NNI, or any
successor Person, as the case may be, are not immediately thereafter in Default under
this Indenture or the Debt Securities.

SECTION 802. Rights and Duties of Successor. 

(a) In case of any such amalgamation, merger, reorganization, arrangement, conveyance, transfer or
lease and upon any such assumption by the successor Person, such successor Person shall agree to be
bound by the terms of this Indenture as principal obligor or guarantor in place of
NNC, the Issuer or NNI with the same effect as if it had been named herein as such. Such successor
Person thereupon may cause to be signed, and may issue either in its own name or in the name of
NNC, the Issuer or NNI, as the case may be, any or all of Debt Securities of any series issuable
and the Guarantees endorsed thereon, hereunder which theretofore shall not have been signed by NNC,
the Issuer or NNI, as the case may be, and delivered to the Trustee. All Debt Securities so issued
and Guarantees endorsed thereon shall in all respects have the same legal rank and benefit under
this Indenture as the Debt Securities and Guarantees theretofore or thereafter issued or endorsed
in accordance with the terms of this Indenture as though all of such Debt Securities and Guarantees
had been issued or endorsed at the date on which the Debt Securities of such series were originally
signed by NNC, the Issuer or NNI, as the case may be, and delivered to the Trustee.

(b) In the case of any such amalgamation, merger, reorganization, arrangement, conveyance, transfer
or lease, such changes in phraseology and form (but not in substance) may be made in Debt
Securities and, the Guarantees endorsed thereon, thereafter to be issued as may be appropriate.

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SECTION 803. Opinion of Counsel. 

The Trustee shall receive an Opinion of Counsel as conclusive evidence that any such amalgamation,
merger, reorganization, arrangement, consolidation, lease, transfer or conveyance, and any such
assumption, comply with the provisions of this Article Eight.

ARTICLE NINE

Supplemental Indentures

SECTION 901. Supplemental Indentures Without Consent of Holders.

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

(1) to evidence the succession of another corporation to the Issuer or a Guarantor, and the
assumption by such successor of the covenants of the Issuer or such Guarantor herein and in the
Debt Securities;

(2) to add to the covenants of the Issuer or a Guarantor, as the case may be, for the benefit of
the Holders of all or any series of Debt Securities (and, if such covenants are to be for the
benefit of less than all series of Debt Securities, stating that such covenants are expressly being
included solely for the benefit of such series), or to surrender any right or power herein
conferred upon the Issuer or such Guarantor;

(3) to add additional items to the definition of Permitted Liens or Permitted Funded Debt which
shall apply only to one or more series of Debt Securities; provided that such supplemental
indenture is entered into on or prior to the initial Issue Date of any Debt Securities of such
series;

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

(5) to change or eliminate any restrictions on the payment of principal (or premium, if any) of
Debt Securities; provided that any such action shall not adversely affect the interests of the
Holders of Debt Securities of any series in any material respect;

(6) to change or eliminate any of the provisions of this Indenture; provided that any such change
or elimination shall become effective only when there is no Outstanding Debt Security of

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any series
created prior to the execution of such supplemental indenture that is entitled to the benefit of
such provision;

(7) to establish the form or terms of Debt Securities of any series as permitted by Sections 201
and 301;

(8) to evidence and provide for the acceptance of appointment hereunder by a successor Trustee with
respect to the Debt 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;

(9) to secure the Debt Securities;

(10) to add an additional Guarantor in respect of the Debt Securities;

(11) to supplement any of the provisions of this Indenture to such extent as shall be necessary to
permit or facilitate the defeasance and discharge of any series of Debt Securities pursuant to
Section 401, Section 1301 or Section 1302; provided that any such action shall not adversely affect
the interests of the Holders of Debt Securities of such series or any other series of Debt
Securities in any material respect; or

(12) to cure any ambiguity, to correct or supplement any provision herein that may be defective or
inconsistent with any other provision herein, or to make any other provisions with respect to
matters or questions arising under this Indenture that shall not be inconsistent with any
provisions of this Indenture; provided that such other provisions shall not adversely affect the
interests of the Holders of Debt Securities of any series in any material respect.

SECTION 902. Supplemental Indentures with Consent of Holders.

(a) With the consent of the Holders of not less than a majority in principal amount of the
Outstanding Debt Securities of any series affected by such supplemental indenture, by Act of said
Holders delivered to the Issuer, the Guarantors and the Trustee, the Issuer and the
Guarantors, when authorized by a Board Resolution of the Issuer and Officers’ Certificates of the
Guarantors, and the Trustee may enter into an indenture or indentures supplemental hereto for the
purpose of adding any provisions to or changing in any manner or eliminating any of the provisions
of this Indenture or of modifying in any manner the rights of the Holders of such series of Debt
Securities under this Indenture or under such series of Debt Securities; provided that no such
supplemental indenture shall, without the consent of the Holder of each Outstanding Debt Security
affected thereby:

	 	(i)	 	change the Stated Maturity Date of the principal of, or any installment of
interest on, any Debt Security, or reduce the principal amount thereof or the interest
thereon or any premium payable upon redemption thereof, or reduce the amount of the
principal of an Original Issue Discount Security that would be due and payable upon a
declaration of acceleration of the Maturity thereof pursuant to Section 501, or change
any Place of Payment, or change the currency in which any Debt Security or interest
thereon is payable, or impair the right to institute

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	 	 	 	suit for the enforcement of any
such payment on or after the Stated Maturity Date thereof (or, in the case of
redemption, on or after the Redemption Date);
	 
	 	(ii)	 	reduce the percentage in principal amount of the Outstanding Debt Securities of
any series, the consent of whose Holders is required for any such supplemental
indenture, or the consent of whose Holders is required for any waiver (of compliance
with certain provisions of this Indenture or certain Defaults hereunder and their
consequences) provided for in this Indenture, or reduce the requirements of Section
1404 for quorum or voting;
	 
	 	(iii)	 	modify any of the provisions of this Section, Section 503 or Section 1009,
except to increase any such percentage or to provide that certain other provisions of
this Indenture cannot be modified or waived without the consent of the Holder of each
Outstanding Debt Security affected thereby; provided that this clause shall not be
deemed to require the consent of any Holder with respect to changes in the references
to “the Trustee” and concomitant changes in this Section and Section 1009, or the
deletion of this proviso, in accordance with the requirements of Section 901(8); or
	 
	 	(iv)	 	change in any manner adverse to the interests of the Holders of any Outstanding
Debt Securities the terms and conditions of the obligations of the Guarantors in
respect of the due and punctual payment of the principal (or, if the context so
requires, lesser amount in the case of Original Issue Discount Securities) thereof (and
premium, if any, thereon) and interest thereon or any Additional Amounts or any sinking
fund or analogous payments provided in respect thereof.

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

(c) A supplemental indenture that changes or eliminates any covenant or other provisions of this
Indenture that has expressly been included solely for the benefit of one or more particular series
of Debt Securities, or that modifies the rights of the Holders of Debt Securities of such
series with respect to such covenant or other provision, shall be deemed not to affect the rights
under this Indenture of the Holders of Debt Securities of any other series.

SECTION 903. Execution of Supplemental Indentures.

In executing, or accepting the additional trusts created by, any supplemental indenture permitted
by this Article or the modifications thereby of the trusts created by this Indenture, the Trustee
shall be entitled to receive, and, subject to Section 601, shall be fully protected in relying
upon, an Opinion of Counsel or Officers’ Certificate stating that the execution of such
supplemental indenture is authorized or permitted by this Indenture. The Trustee may, but shall
not be obligated to, enter into any such supplemental indenture that affects the Trustee’s own
rights, duties or immunities under this Indenture or otherwise.

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SECTION 904. Effect of Supplemental Indentures.

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

SECTION 905. Conformity with Trust Indenture Act.

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

SECTION 906. Reference in Debt Securities to Supplemental Indentures.

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

ARTICLE TEN

Covenants

SECTION 1001. Payment of Principal, Premium and Interest.

The Issuer covenants and agrees for the benefit of each particular series of Debt Securities that
it will duly and punctually pay the principal of (and premium, if any) and interest on the Debt
Securities of such series in accordance with their terms and this Indenture. Principal (and
premium, if any) or interest payable with respect to any Debt Securities shall be considered paid
on the date due if the Paying Agent, or the Issuer if it acts as its own Paying Agent, holds on
that date money sufficient to pay all principal (and premium, if any) and interest then due.

SECTION 1002. Maintenance of Office or Agency.

(a) The Issuer will maintain in each Place of Payment for any series of Debt Securities issued
hereunder an office or agency where Debt Securities of such series may be presented or surrendered
for payment, where Debt Securities of such series may be surrendered for registration of transfer
or exchange and where notices and demands to or upon the Issuer in respect of the Debt Securities
of such series and this Indenture may be served; and the Guarantors will maintain in The City of
New York an office or agency where notices and demands to or upon the Guarantors in respect of Debt
Securities of any series and this Indenture may be served. The Issuer and the Guarantors will give
prompt written notice to the Trustee of the location, and any change in the location of, any such
office or agency. If at any time the Issuer or any Guarantor shall fail to maintain any such
required office or agency or shall fail to

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furnish the Trustee with the address thereof, such
presentations, surrenders, notices and demands may be made or served at the Corporate Trust Office
of the Trustee and the Issuer and the Guarantors each hereby appoints the Trustee its agent to
receive all such presentations, surrenders, notices and demands.

(b) The Issuer may also from time to time designate one or more other offices or agencies (in or
outside of such Place of Payment) where the Debt Securities of one or more series may be presented
or surrendered for any or all of such purposes, and may from time to time rescind such
designations; provided that no such designation or rescission shall in any manner relieve the
Issuer of its obligation to maintain an office or agency in each Place of Payment for any series of
Debt Securities, for such purposes. The Issuer will give prompt written notice to the Trustee of
any such designation and any change in the location of any such other office or agency.

SECTION 1003. Money for Debt Securities Payments to Be Held in Trust.

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

(b) Whenever the Issuer shall have one or more Paying Agents with respect to any series of Debt
Securities, it will, prior to each due date of the principal of (and premium, if any) or interest
on any Debt Securities of such series, deposit with a Paying Agent a sum sufficient to pay the
principal (and premium, if any) or interest so becoming due, such sum to be held in trust for the
benefit of the Persons entitled to such principal, premium or interest, and (unless such Paying
Agent is the Trustee) the Issuer will promptly notify the Trustee of its action or failure so to
act.

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

	 	(i)	 	hold all sums held by it for the payment of the principal of (and premium, if
any) or interest on Debt Securities of such series in trust for the benefit of the
Persons
entitled thereto until such sums shall be paid to such Persons or otherwise disposed
of as herein provided;
	 
	 	(ii)	 	give the Trustee notice of any Default by the Issuer or a Guarantor (or any
other obligor upon the Debt Securities of such series or Guarantees endorsed thereon)
in the making of any payment of principal of (and premium, if any) or interest on the
Debt Securities of such series or Guarantees endorsed thereon; and
	 
	 	(iii)	 	at any time during the continuance of any such Default, upon the written
request of the Trustee, forthwith pay to the Trustee all sums so held in trust by such
Paying Agent.

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(d) The Issuer may at any time, for the purpose of obtaining the satisfaction and discharge of this
Indenture or for any other purpose, pay, or by Issuer Order direct any Paying Agent to pay, to the
Trustee all sums held in trust by the Issuer or such Paying Agent, such sums to be held by the
Trustee upon the same trusts as those upon which such sums were held by the Issuer or such Paying
Agent; and, upon such payment by any Paying Agent to the Trustee, such Paying Agent shall be
released from all further liability with respect to such money.

(e) Any money deposited with the Trustee or any Paying Agent, or then held by the Issuer or any
Guarantor, in trust for the payment of the principal of (and premium, if any) or interest on any
Debt Security of any series and remaining unclaimed for two years after Maturity shall be paid to
the Issuer or such Guarantor on Issuer Request or Guarantor Request of such Guarantor, as the case
may be, or (if then held by the Issuer or such Guarantor) shall be discharged from such trust; and
the Holder of such Debt Security shall thereafter, as an unsecured general creditor, look only to
the Issuer or such Guarantor, as the case may be, for payment thereof, and all liability of the
Trustee or such Paying Agent with respect to such trust money, and all liability of the Issuer or
such Guarantor, as the case may be, as trustee thereof, shall thereupon cease; provided that the
Trustee or such Paying Agent, before being required to make any such repayment, may at the expense
of the Issuer or such Guarantor, as the case may be, cause to be published once, in an Authorized
Newspaper of general circulation in the Borough of Manhattan, The City of New York, and each Place
of Payment or mailed to each such Holder, or both, notice that such money remains unclaimed and
that, after a date specified therein, which shall not be less than 30 days from the date of such
publication or mailing, any unclaimed balance of such money then remaining will be repaid to the
Issuer or such Guarantor, as the case may be.

SECTION 1004. Offer to Repurchase Upon Change of Control.

(a) If a Change of Control occurs, the Issuer shall make an offer (a “Change of Control Offer”) to
each Holder to purchase each Holder’s Debt Securities at a purchase price, in cash, equal to 101%
of the aggregate principal amount thereof, plus accrued and unpaid interest thereon, if any, up to
the date of purchase (the “Change of Control Payment”).

(b) Within 30 days following the date upon which the Change of Control occurs, the Issuer shall
mail, or shall cause the Trustee to mail, by first-class mail, a notice to each Holder, with a copy
to the Trustee, which notice shall govern the terms of the Change of Control Offer and stating:

	 	(i)	 	the CUSIP number, if any, of each series of Debt Securities to which the Change
in Control Offer applies;
	 
	 	(ii)	 	that the Change of Control Offer is being made pursuant to this Section 1004
and that all Debt Securities tendered will be accepted for payment;
	 
	 	(iii)	 	the Change of Control Payment and the purchase date (the “Change of Control
Payment Date”), which shall be no earlier than 30 days and no later than 60 days after
the date such notice is mailed, other than as may be required to comply with any
applicable laws;
	 
	 	(iv)	 	that any Debt Security not tendered will continue to accrue interest;

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	 	(v)	 	that unless the Issuer defaults in the payment of the Change of Control
Payment, all Debt Securities accepted for payment pursuant to the Change of Control
Offer shall cease to accrue interest after the Change of Control Payment Date;
	 
	 	(vi)	 	that Holders electing to have any Debt Securities purchased pursuant to a
Change of Control Offer will be required to surrender the Debt Securities, with the
form entitled “Option of Holder to Elect Purchase” (including specifying the portion
(in integral multiples of $1,000) of such Holder’s Debt Securities that it agrees to
sell to the Issuer pursuant to the Change of Control Offer, on the reverse of the Debt
Securities completed), to the Paying Agent at the address specified in the notice prior
to the close of business on the third Business Day preceding the Change of Control
Payment Date;
	 
	 	(vii)	 	that Holders will be entitled to withdraw their election if the Paying Agent
receives, not later than the close of business on the second Business Day preceding the
Change of Control Payment Date, a telegram, telex, facsimile transmission or letter
setting forth the name of the Holder, the principal amount of Debt Securities delivered
for purchase, and a statement that such Holder is withdrawing his election to have the
Debt Securities purchased;
	 
	 	(viii)	 	that Holders whose Debt Securities are being purchased only in part will be issued
new Debt Securities equal in principal amount to the unpurchased portion of the Debt
Securities surrendered, which unpurchased portion must be an authorized denomination of
such Debt Securities; and
	 
	 	(ix)	 	that Holders electing to have a Debt Security purchased pursuant to a Change of
Control Offer may elect to have Debt Securities purchased in authorized denominations
of such Debt Securities only.

(c) On the Change of Control Payment Date, the Issuer shall, to the extent lawful,

	 	(i)	 	accept for payment all Debt Securities or portions of Debt Securities properly
tendered pursuant to the Change of Control Offer;
	 
	 	(ii)	 	deposit with the Paying Agent an amount equal to the Change of Control Payment
in respect of all Debt Securities or portions of Debt Securities properly tendered; and
	 
	 	(iii)	 	deliver or cause to be delivered to the Trustee the Debt Securities so
accepted together with an Officers’ Certificate stating the aggregate principal amount
of Debt Securities or portions thereof being purchased by the Issuer.

(d) The Paying Agent shall promptly mail to each Holder of Debt Securities properly tendered the
Change of Control Payment for such Debt Securities, and the Trustee shall promptly authenticate and
mail (or cause to be transferred by book entry) to each Holder a new Debt Security equal in
principal amount to any unpurchased portion of the Debt Securities surrendered, if any; provided
that each new Debt Security shall be in an authorized denomination of such Debt Securities.

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(e) The provisions of this Section 1004 will be applicable whether or not any other covenants or
similar provisions of this Indenture are applicable. The Issuer shall comply with the requirements
of Rule 14e-1 under the Exchange Act and any other securities laws or regulations to the extent
those laws and regulations are applicable to any Change of Control Offer. If the provisions of any
of the applicable securities laws or securities regulations conflict with the provisions of this
Section 1004, the Issuer shall comply with the applicable securities laws and regulations and shall
not be deemed to have breached its obligations under this Section 1004 by virtue of the compliance.

(f) The Issuer shall not be required to make a Change of Control Offer upon a Change of Control if
a third party makes the Change of Control Offer in the manner, at the times and otherwise in
compliance with the requirements set forth in this Section 1004 and purchases all Debt Securities
properly tendered and not withdrawn under such Change of Control Offer.

SECTION 1005. Restrictions on Liens.

(a) Subject to the following exceptions, as long as any Debt Securities remain Outstanding, NNC and
the Issuer will not, and will not permit any Restricted Subsidiary, to issue, assume or guarantee
any Funded Debt secured by, and will not secure any Funded Debt by, a Lien upon any property of
NNC, the Issuer or any Restricted Subsidiary (whether now owned or hereafter acquired) without in
any such case effectively providing concurrently therewith that the Debt Securities then
Outstanding shall be secured equally and ratably with such Funded Debt; provided that the foregoing
restrictions shall not apply to Funded Debt secured by the following Liens (“Permitted Liens”):

	 	(i)	 	any Lien existing on property at the time of the acquisition of that property
by NNC, the Issuer or the relevant Restricted Subsidiary;
	 
	 	(ii)	 	any Lien on property that is incurred after the date of issuance of the Debt
Securities to secure or provide for the payment of the purchase price of the property
or the cost of construction or improvement thereon;
	 
	 	(iii)	 	any Lien on property of a Person existing at the time that Person is
liquidated, dissolved or merged into, or amalgamated or consolidated with NNC, the
Issuer or any Restricted Subsidiary, or at the time the properties of or equity
interests in the Person are sold, leased or otherwise transferred to NNC, the Issuer or
any Restricted Subsidiary;
	 
	 	(iv)	 	any Lien securing intercompany Funded Debt among or between NNC, the Issuer
and/or the Restricted Subsidiaries;
	 
	 	(v)	 	deposits of cash, cash equivalents or investment securities against which the
lender of any Credit Enhanced Foreign Subsidiary Debt has a Lien or right of set off;
	 
	 	(vi)	 	any Lien on property of a Foreign Subsidiary securing any Funded Debt incurred
pursuant to clause (i) of the definition of Permitted Funded Debt;

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	 	(vii)	 	Liens in favor of the United States of America or any State thereof, Canada or
any Province or territory thereof, or any department, agency or instrumentality or
political subdivision thereof, or in favor of any other country or political
subdivision, to secure partial, progress, advance or other payments pursuant to any
contract or statute or to secure any Funded Debt incurred or guaranteed for the purpose
of financing or refinancing all or any part of the purchase price of
the property, shares of capital stock or indebtedness subject to such Liens, or the cost of
constructing or improving the property subject to such Liens (including, without
limitation, Liens incurred in connection with pollution control, industrial revenue or
similar financings or relating to the development, restoration, demolition or
remediation of property);
	 
	 	(viii)	 	any Lien created by or resulting from litigation or other proceedings against, or
upon property of, NNC, the Issuer or any Restricted Subsidiary, or any Lien securing
appeal bonds (or letters of credit or other similar instruments issued in support of or
in lieu of appeal bonds) in respect of judgments, in each case, or any Lien for
workmen’s compensation awards or similar awards, so long as the finality of such
judgment or award is being contested and execution thereon is stayed or such Lien
relates to a final unappealable judgment which is satisfied within 30 days of such
judgment or any Lien incurred by NNC, the Issuer or any Restricted Subsidiary for the
purpose of obtaining a stay or discharge in the course of any litigation or other
proceeding;
	 
	 	(ix)	 	any other Liens securing Funded Debt of any Foreign Subsidiary; provided that
the aggregate outstanding principal amount of Funded Debt secured pursuant to this
clause (ix) by any individual Foreign Subsidiary would not, after giving effect to the
relevant transaction, exceed $5,000,000;
	 
	 	(x)	 	Liens existing on the date of this Indenture and any extension, renewal or
replacement in whole or in part of any Lien existing on the date of this Indenture or
referred to in the above exceptions, so long as the total amount of secured
Funded Debt does not increase, and the property securing the Funded Debt is not
expanded, as a result of the extension, renewal or replacement; and
	 
	 	(xi)	 	Managed Service Contract Liens.

(b) Notwithstanding the foregoing, NNC, the Issuer and any Restricted Subsidiary may issue, assume
or guarantee Funded Debt secured by a Lien upon any of their property that would otherwise be
subject to the foregoing restrictions, and may carry out any other transactions which would
otherwise be subject to the foregoing restrictions, provided that the aggregate amount at any time
outstanding of all such secured Funded Debt incurred pursuant to this paragraph (b) would not,
after giving effect thereto, exceed 10% of Consolidated Net Tangible Assets if incurred on or prior
to the earlier of (x) the date of any refinancing or repayment (including by redemption) in full of
the Existing NNC Convertible Notes and (y) September 2, 2008, and 15% of Consolidated Net Tangible
Assets if incurred after such date.

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SECTION 1006. Incurrence of Additional Funded Debt.

(a) The Issuer and the Guarantors will not, and will not permit any of their Subsidiaries to,
directly or indirectly, create, incur, assume, guarantee, acquire, become liable, contingently or
otherwise, with respect to, or otherwise become responsible for the payment of (collectively,
“incur”) any Funded Debt (other than Permitted Funded Debt); provided that the Issuer, any
Guarantor and any other Subsidiary of NNC may incur Funded Debt (including, without limitation,
Acquired Funded Debt), if on the date of the incurrence of such Funded Debt, after giving effect to
the incurrence thereof, the Consolidated Fixed Charge Coverage Ratio is greater than 2.0 to 1.0.

(b) The Issuer and the Guarantors will not, directly or indirectly, incur any Funded Debt which by
its terms (or by the terms of any agreement governing such Funded Debt) is subordinated in right of
payment to any other Funded Debt of the Issuer or such Guarantors, unless such Funded Debt is also
by its terms (or by the terms of any agreement governing such Funded Debt) made expressly
subordinate to the Debt Securities and the Guarantees, as applicable, to the same extent and in the
same manner as such Funded Debt is subordinated to other Funded Debt of the Issuer and the
Guarantors, as applicable.

SECTION 1007. Restricted Payments.

The Issuer and the Guarantors will not, and will not cause or permit any of their Subsidiaries to,
directly or indirectly:

(a) declare or pay any dividend or make any distribution (other than dividends or distributions
payable in Qualified Capital Stock of NNC) on or in respect of shares of NNC’s Capital Stock or the
Issuer’s Preferred Stock to holders of such Capital Stock or Preferred Stock, as the case may be,
in their capacity as such; or

(b) purchase, redeem or otherwise acquire or retire for value any Capital Stock of NNC or any
Preferred Stock of the Issuer or any warrants, rights or options to purchase or acquire shares of
any class of such Capital Stock or Preferred Stock or make any payments with respect to Synthetic
Purchase Agreements, (each of the foregoing actions set forth in clauses (a) and (b)
being referred to as a “Restricted Payment”), if at the time of such Restricted Payment or
immediately after giving effect thereto,

	 	(i)	 	a Default or an Event of Default shall have occurred and be continuing;
	 
	 	(ii)	 	the Issuer would not be able to incur at least $1.00 of additional Funded Debt
(other than Permitted Funded Debt) in compliance with Section 1006; or
	 
	 	(iii)	 	the aggregate amount of Restricted Payments (including such proposed
Restricted Payment) made subsequent to the Measurement Date shall exceed the sum,
without duplication (the “Restricted Payments Basket”), of:

     (w) 50% of the cumulative Consolidated Net Income of NNC (or if cumulative
Consolidated Net Income shall be a loss, minus 100% of such loss) earned subsequent
to the Measurement Date and on or prior to the last day of the

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most recent fiscal
quarter for which consolidated financial information for NNC is available (the
“Reference Date”) (treating such period as a single accounting period); plus

     (x) 100% of the aggregate net cash proceeds received by NNC from any Person
(other than NNC or a Subsidiary of NNC) or the Issuer from any Person (other than
any other Subsidiary of NNC) from the issuance and sale subsequent to the
Measurement Date and on or prior to the Reference Date of Qualified Capital Stock of
NNC or Preferred Stock (other than Disqualified Capital Stock) of the Issuer or
warrants, options or other rights to acquire Qualified Capital Stock of NNC (but
excluding any debt security that is convertible into, or exchangeable for, Qualified
Capital Stock); plus

     (y) 100% of the aggregate net cash proceeds of any equity contribution received
by NNC or the Issuer from a holder of NNC’s or the Issuer’s Capital Stock (other
than an equity contribution received by the Issuer from NNC) following the
Measurement Date; plus

     (z) the amount by which Funded Debt of NNC, the Issuer or another Subsidiary of
NNC is reduced on NNC’s consolidated balance sheet subsequent to the Measurement
Date upon the conversion or exchange (other than by a Subsidiary of the Issuer) of
such Funded Debt for Qualified Capital Stock of NNC or Preferred Stock (other than
Disqualified Capital Stock) of the Issuer (less the amount of any cash, or the fair
value of any other property, distributed by NNC, the Issuer or another Subsidiary of
NNC upon such conversion or exchange).

Notwithstanding the foregoing, the provisions set forth in the preceding paragraphs shall not
prohibit:

	 	(1)	 	the payment of any dividend within 60 days after the date of declaration of
such dividend if the dividend would have complied with the provisions of this Section
1007 on the date of declaration;
	 
	 	(2)	 	the purchase, defeasance, repurchase, prepayment, redemption or other
acquisition or retirement for value of Capital Stock of NNC or Preferred Stock (other
than Disqualified Capital Stock) of the Issuer or any warrants, rights or options to
purchase or acquire shares of any class of such Capital Stock or Preferred Stock in
exchange for, or out of the proceeds of the substantially concurrent sale of, Qualified
Capital Stock of NNC or Preferred Stock (other than Disqualified Capital Stock) of the
Issuer (other than Capital Stock issued or sold to NNC or a Subsidiary of NNC);
provided that the net cash proceeds from such exchange or sale shall be excluded from
the calculations pursuant to clause (iii)(x) of the preceding paragraph;
	 
	 	(3)	 	the repurchase or other acquisition of Capital Stock of NNC or any warrants,
rights or options to purchase or acquire shares of any such Capital Stock or securities
convertible into Capital Stock of NNC, from or on behalf of current or former
employees, directors, consultants or contractors of NNC or any of its

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	 	 	 	Subsidiaries (or
permitted transferees of such current or former employees, directors, consultants or
contractors), pursuant to the terms of the agreements (including employment, consulting
or severance agreements) or plans (or amendments thereto) under which such individuals
purchase or sell, or are granted the option to purchase or sell, shares of such Capital
Stock;
	 
	 	(4)	 	the redemption by NNC of any rights to purchase shares of Common Stock of NNC
outstanding from time to time under the amended and restated shareholder rights plan
agreement between NNC and Computershare Trust Company of Canada, as rights agent, dated
as of February 14, 2003, as the same may be further amended, restated or replaced from
time to time, in accordance with the terms thereof; provided that such rights are
redeemed for nominal consideration;
	 
	 	(5)	 	payments to holders or former holders of Capital Stock of NNC, the Issuer or
any other Subsidiary of NNC pursuant to a statutory dissent right or appraisal remedy;
	 
	 	(6)	 	payments to holders of Capital Stock (or to the holders of Funded Debt or
Disqualified Capital Stock that is convertible into or exchangeable for Capital Stock
upon such conversion or exchange) in lieu of the issuance of fractional shares;
	 
	 	(7)	 	payments to holders of Capital Stock of NNC under any stock purchase plan or
similar employee or director benefit plan in settlement of fractional shares issued
under such plan;
	 
	 	(8)	 	the declaration and payment by NNC or the Issuer of regularly scheduled cash
dividends with respect to, and the redemption by NNC or the Issuer on a scheduled
mandatory redemption date of, any Disqualified Capital Stock (including Existing
Preferred Stock) or Designated Qualified Preferred Stock;
	 
	 	(9)	 	the declaration and payment by NNC or the Issuer of regularly scheduled cash
dividends with respect to, and the redemption by NNC or the Issuer on a scheduled
mandatory redemption date of, any Qualified Capital Stock (other than
Designated Qualified Preferred Stock) issued after the date of this Indenture in an
amount not in excess of the aggregate net cash proceeds received by NNC or the
Issuer from any Person (other than NNC or a Subsidiary of NNC) from such issuance;
provided that the amount of Restricted Payments made pursuant to this clause (9)
shall be excluded from the calculation pursuant to clause (iii)(x) of the preceding
paragraph;
	 
	 	(10)	 	any payment or distribution to holders or former holders of Capital Stock of
NNC in connection with the settlement of, or satisfaction of a judgment resulting from,
any shareholder litigation or regulatory or enforcement proceeding; and
	 
	 	(11)	 	any other Restricted Payments in an aggregate amount which, when taken together
with all other Restricted Payments pursuant to this clause (11), does not exceed
$25,000,000.

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Notwithstanding the foregoing, none of NNC, the Issuer or any other Subsidiary of NNC may make
any Restricted Payment in reliance on clause (11) if, after giving effect to such Restricted
Payment, a Default or Event of Default shall have occurred and be continuing. In calculating the
aggregate amount of Restricted Payments made subsequent to the date of this Indenture for purposes
of clause (iii) of the second preceding paragraph, amounts expended pursuant to clause (1) of the
immediately preceding paragraph shall be included in such calculation and amounts expended pursuant
to clauses (2) through (11) of the immediately preceding paragraph shall be excluded in such
calculation.

SECTION 1008. Compliance Certificate. 

The Issuer and each Guarantor shall deliver an Officers’ Certificate to the Trustee within 120 days
after the end of each fiscal year thereof stating whether the signers know of any Event of Default
that occurred during the fiscal year. If an Event of Default shall have occurred, the applicable
certificate shall describe the nature of the Event of Default and its current status. The
certificate shall be in a form in compliance with the Trust Indenture Act.

SECTION 1009. Waiver of Certain Covenants.

The Issuer and each Guarantor may omit in any particular instance to comply with any covenant or
condition set forth in this Indenture or any applicable supplemental indenture, with respect to the
Debt Securities of any series if, before the time for such compliance, the Holders of a majority in
principal amount of the Outstanding Debt Securities of such series shall, by Act of such Holders,
either waive such compliance in such instance or generally waive compliance with such covenant or
condition, but no such waiver shall extend to or affect such covenant or condition except to the
extent so expressly waived, and, until such waiver shall become effective, the obligations of the
Issuer and such Guarantor and the duties of the Trustee in respect of any such covenant or
condition shall remain in full force and effect.

SECTION 1010. Covenant Suspension.

(a) During any Suspension Period with respect to any series of Debt Securities, NNC and its
Subsidiaries will not be subject to the following Sections of this Indenture for purposes of such
series of Debt Securities: Section 1006 and Section 1007 (collectively, the “Suspended Covenants”).
On any Reversion Date with respect to any series of Debt Securities, NNC and its subsidiaries will
thereafter again be subject to the Suspended Covenants for purposes of such series of Debt
Securities for all periods until the next Suspension Period, if any. Furthermore, on each
Reversion Date with respect to any series of Debt Securities, (i) all Funded Debt of NNC or any
Subsidiary of NNC incurred during the Suspension Period prior to such Reversion Date will be deemed
for purposes of such series of Debt Securities to have been outstanding on the date of this
Indenture and classified as permitted under clause (c) of the definition of Permitted Funded Debt
and (ii) all Liens granted or created by any Subsidiary of NNC (other than the Issuer or any
Subsidiary that was a Restricted Subsidiary during such Suspension Period) during the Suspension
Period prior to such Reversion Date (other than any Lien granted or created in connection with a
transaction that directly results in a downgrade in the rating of the Debt Securities of any series
from S&P or Moody’s to below the applicable rating specified in the
definition of Investment Grade Status) will be deemed for purposes of such series of Debt

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Securities to have been outstanding on the date of this Indenture and classified as permitted under
Section 1005(a)(x).

(b) For purposes of calculating the amount available to be made as Restricted Payments under clause
(iii) of Section 1007(b), calculations under such clause will be made with reference to the
Measurement Date as set forth in that clause. Accordingly, Restricted Payments made during the
Suspension Period with respect to any series of Debt Securities not otherwise permitted pursuant to
any of clauses (1) through (11) under the second paragraph of Section 1007(b) will reduce the
amount available to be made as Restricted Payments under clause (iii) of Section 1007(b) for
purposes of such series of Debt Securities; provided that the amount available to be made as
Restricted Payments on the Reversion Date shall not be reduced to below zero solely as a result of
such Restricted Payments, but may be reduced to below zero as a result of cumulative Consolidated
Net Income for the purpose of sub-clause (w) of clause (iii) of Section 1007(b) being a loss, and
the items specified in sub-clauses (w) through (z) of clause (iii) of Section 1007(b) that occur
during the Suspension Period will increase the amount available to be made as Restricted Payments
under clause (iii) of Section 1007(b). Any Restricted Payments made during the Suspension Period
that would have been made pursuant to clause (11) of the second paragraph under the Section 1007(b)
if the provisions of such Section were then applicable, shall for purposes of such series of Debt
Securities reduce the amounts permitted to be incurred under such clause (11) on the Reversion
Date.

ARTICLE ELEVEN

Redemption of Debt Securities

SECTION 1101. Applicability of Article.

Debt Securities of any series that are redeemable before their Stated Maturity Date shall be
redeemable in accordance with their terms and (except as otherwise specified pursuant to Section
301 for Debt Securities of any series) in accordance with this Article.

SECTION 1102. Election to Redeem; Notice to Trustee.

The election of the Issuer to redeem any or all of the Debt Securities of a series pursuant to
Section 1101 of this Indenture shall be evidenced by a Board Resolution of the Issuer. In case of
any redemption at the election of the Issuer, the Issuer shall, not later than the earlier of the
date that is 35 days prior to the Redemption Date fixed by the Issuer and the date on which notice
is given to the Holders (except as provided in Section 1103 or unless a shorter notice shall be
satisfactory to the Trustee), notify the Trustee of such Redemption Date and of the principal
amount of the Debt Securities to be redeemed, deliver to the Trustee such documentation and records
as shall enable the Trustee to select the Debt Securities to be redeemed pursuant to Section 1103
and direct the Trustee to redeem the Debt Securities in accordance with the Board Resolution. Any
such notice may be canceled at any time prior to notice of such redemption being mailed to any
Holder and shall thereby be void and of no effect.

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SECTION 1103. Selection by Trustee of Debt Securities To Be Redeemed.

(a) If less than all the Debt Securities of any series are to be redeemed at any time pursuant to
an optional redemption, the particular Debt Securities of such series to be redeemed shall be
selected not more than 60 days prior to the Redemption Date by the Trustee, from the Outstanding
Debt Securities of such series not previously called for redemption, in compliance with the
requirements of the principal national securities exchange, if any, on which the Debt Securities of
such series are listed, or, if such series of Debt Securities are not so listed, on a pro rata
basis, by lot or by such other method as the Trustee shall deem fair and appropriate (and in such
manner as complies with applicable legal requirements) and which may provide for the selection for
redemption of portions of the principal of the Debt Securities of such series; provided that Debt
Securities selected for partial redemption shall be in authorized denominations of such Debt
Securities. If a partial redemption is made with Qualified Equity Proceeds, the Trustee will
select the Debt Securities of such series only on a pro rata basis or on as nearly a pro rata basis
as is practicable (subject to procedures of the Depositary).

The Trustee shall promptly notify the Issuer in writing of the Debt Securities of such series
selected for redemption and, in the case of any Debt Securities of a series selected for partial
redemption, the method it has chosen for the selection of Debt Securities of such series and the
principal amount thereof to be redeemed and upon the Issuer’s written approval of such selection,
the Trustee shall redeem the selected Debt Securities of such series.

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

SECTION 1104. Notice of Redemption.

(a) Notice of redemption shall be given by first-class mail not less than 30 nor more than 60 days
prior to the Redemption Date, to each Holder of the Debt Securities of the series to be redeemed at
its address as listed in the Securities Register. The Trustee shall give notice of redemption in
the Issuer’s name and at the Issuer’s expense; provided that the Issuer shall deliver to the
Trustee, at least 35 days prior to the Redemption Date (unless a shorter notice period shall be
satisfactory to the Trustee) an Issuer Order requesting that the Trustee give such notice at the
Issuer’s expense and setting forth the information to be stated in such notice, which shall
include:

	 	(i)	 	the Redemption Date;
	 
	 	(ii)	 	the Redemption Price and the amount of accrued interest to but excluding the
Redemption Date payable as provided in Section 1105, if any;
	 
	 	(iii)	 	if less than all Outstanding Debt Securities of such series are to be
redeemed, the aggregate principal amount of Debt Securities of such series to be
redeemed and the aggregate principal amount of Debt Securities of such series to be
Outstanding after such partial redemption,

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	 	(iv)	 	in case any Debt Security of such series is to be redeemed in part only, the
notice that relates to such Debt Security, a statement that, on and after the
Redemption Date, upon surrender of such Debt Security, the Holder will receive, without
charge, a new Debt Security or Debt Securities of such series of authorized
denominations for the principal amount thereof remaining unredeemed;
	 
	 	(v)	 	a statement that, on the Redemption Date, the Redemption Price of the Debt
Securities to be redeemed (and accrued interest, if any, to but excluding the
Redemption Date payable as provided in Section 1105 of this Indenture) will become due
and payable upon each such Debt Security, or the portion thereof, to be redeemed, and,
unless the Issuer defaults in making the redemption payment, that interest on the Debt
Securities called for redemption (or the portion thereof) will cease to accrue on and
after said date, as long as the Issuer has deposited with the Paying Agent funds in
satisfaction of the applicable redemption price;
	 
	 	(vi)	 	the Place of Payment where such Debt Securities are to be surrendered for
payment of the Redemption Price and accrued interest,
	 
	 	(vii)	 	the CUSIP number, if any, of the series of Debt Securities to be redeemed,
provided that no representation need be made as to the accuracy or correctness of the
CUSIP number, if any, listed in such notice or printed on the Debt Securities, and any
redemption shall not be affected by any defect in such CUSIP numbers;
	 
	 	(viii)	 	the paragraph of the Debt Securities pursuant to which the Debt Securities are to be
redeemed,

(b) If the Issuer exercises its right to redeem the Debt Securities, in whole or in part, the
Issuer shall disseminate a press release containing information regarding the redemption, through a
public medium that is customary for such press releases or publish the information on its website
or through such other public medium as the Issuer may use at that time.

SECTION 1105. Deposit of Redemption Price.

On or before 10:00 a.m. in the Place of Payment on any Redemption Date, the Issuer shall deposit
with the Trustee or with a Paying Agent (or, if the Issuer is acting as its own Paying Agent,
segregate and hold in trust as provided in Section 1003(a)) an amount of money sufficient to pay
the Redemption Price of the Debt Securities which are to be redeemed on that date, other than Debt
Securities or portions of Debt Securities called for redemption that are beneficially owned by the
Issuer and have been delivered by the Issuer to the Trustee for cancellation.

SECTION 1106. Debt Securities Payable on Redemption Date.

(a) Notice of redemption having been given as aforesaid, the Debt Securities so to be redeemed
shall, on the Redemption Date, become due and payable at the Redemption Price specified in such
notice. From and after such date (unless the Issuer and the Guarantors shall default in the
payment of the Redemption Price and accrued interest) such Debt Securities shall cease to bear
interest. Upon surrender of any such Debt Security for redemption in accordance with the notice,
such Debt Security shall be paid by the Issuer at the Redemption Price, together

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with accrued interest to the Redemption Date; provided that installments of interest on Debt
Securities whose Stated Maturity Date is on or prior to the Redemption Date shall be payable to the
Holders of such Debt Securities, or one or more Predecessor Securities, registered as such on the
relevant Record Dates according to their terms and the provisions of Section 312.

(b) If any Debt Security called for redemption shall not be so paid upon surrender thereof for
redemption, the principal (and premium, if any) shall, until paid, bear interest from the
Redemption Date at the rate prescribed therefor in such Debt Security.

SECTION 1107. Debt Security Redeemed in Part.

Any Debt Security that is to be redeemed only in part shall be surrendered at a Place of Payment
therefor (with, if the Issuer, any Guarantor, the Security Registrar or the Trustee so requires,
due endorsement by, or a written instrument of transfer in form satisfactory to the Issuer, such
Guarantor, the Security Registrar and the Trustee duly executed by, the Holder thereof or his
attorney duly authorized in writing), and the Issuer shall execute, and the Trustee shall
authenticate and deliver to the Holder of such Debt Security without service charge, a new Debt
Security or Debt Securities of the same series, each having endorsed thereon the Guarantee(s)
executed by the Guarantors, of any authorized denomination as requested by such Holder in aggregate
principal amount equal to and in exchange for the unredeemed portion of the principal of the Debt
Security so surrendered; except that if a Global Security is so surrendered, the Issuer shall
execute, and the Trustee shall authenticate and deliver to the Depositary for such Global Security,
without service charge, a new Global Security, each having endorsed thereon the Guarantees executed
by the Guarantor(s), in a denomination equal to and in exchange for the unredeemed portion of the
principal of the Global Security so surrendered.

ARTICLE TWELVE

Sinking Funds

SECTION 1201. Applicability of Article.

The provisions of this Article shall be applicable to any sinking fund for the retirement of Debt
Securities of a series except as otherwise specified pursuant to Section 301 for the Debt
Securities of such series. The minimum amount of any sinking fund payment provided for by the
terms of Debt Securities of any series is herein referred to as a “mandatory sinking fund payment,”
and any payment in excess of such minimum amount provided for by the terms of Debt Securities of
any series is herein referred to as an “optional sinking fund payment.” If provided for by the
terms of Debt Securities of any series, the amount of any sinking fund payment may be subject to
reduction as provided in Section 1202. Each sinking fund payment shall be applied to the
redemption of Debt Securities of any series as provided for by the terms of such Debt Securities.

SECTION 1202. Satisfaction of Sinking Fund Payments with Debt Securities.

The Issuer or the Guarantors may deliver Outstanding Debt Securities of a series (other than any
previously called for redemption) and may apply as a credit Debt Securities of a series that have
been redeemed either at the election of the Issuer pursuant to the terms of such Debt Securities or

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

SECTION 1203. Redemption of Debt Securities for Sinking Fund.

Not less than 60 days prior to each sinking fund payment date for any series of Debt Securities
(unless a shorter period shall be satisfactory to the Trustee), the Issuer will deliver to the
Trustee an Officers’ Certificate of the Issuer specifying the amount of the next sinking fund
payment for that series pursuant to the terms of that series, the portion thereof, if any, that is
to be satisfied by payment of cash, the portion thereof, if any, that is to be satisfied by
delivering and crediting Debt Securities of that series pursuant to Section 1202 and the basis for
any such credit and, prior to or concurrently with the delivery of such Officers’ Certificate, will
also deliver to the Trustee any Debt Securities to be so credited and not theretofore delivered to
the Trustee. Not less than 45 days (unless a shorter period shall be satisfactory to the Trustee)
before each such sinking fund payment date the Trustee shall select the Debt Securities to be
redeemed upon such sinking fund payment date in the manner specified in Section 1103 and cause
notice of the redemption thereof to be given in the name of and at the expense of the Issuer in the
manner provided in Section 1104. Such notice having been duly given, the redemption of such Debt
Securities shall be made upon the terms and in the manner stated in Sections 1105, 1106 and 1107.

ARTICLE THIRTEEN

Defeasance

SECTION 1301. Discharge by Deposit of Money or Debt Securities.

(a) This Section 1301 shall be applicable to Debt Securities of a series if so provided pursuant to
Section 301. All obligations, covenants and agreements of the Issuer and the Guarantors under this
Indenture with respect to Debt Securities of a particular series or for the benefit of the Holders
thereof (except as to any surviving rights of registration of transfer or exchange of Debt
Securities or herein expressly provided for) shall cease, terminate and be discharged if:

	 	(i)	 	the Issuer or a Guarantor has, at least 91 days prior thereto, irrevocably
deposited with the Trustee, as specific security pledged for, and dedicated solely to,
the due payment and ultimate satisfaction of its obligations under the Indenture with
respect to the Debt Securities of the series affected,

	 	(A)	 	funds in the currency or currencies in which the Debt
Securities are payable, and/or
	 
	 	(B)	 	an amount of direct obligations of, or obligations the payment
of principal of and interest, if any, on are fully guaranteed by, the
government(s) that

85

 

	 	 	 	issued the currency or currencies in which Debt Securities of such series
are payable, and that are not subject to prepayment, redemption or call,

as will together with the predetermined and certain income to accrue thereon without
consideration of any reinvestment thereof, be sufficient (in the case of such obligations,
through the payment of interest and principal thereunder) to pay (1) the principal of (and
premium, if any) and interest on the Outstanding Debt Securities of the particular series on
the Stated Maturity Date of such principal or interest or of any installment thereof, and
(2) any mandatory prepayments or analogous payments applicable to such Debt Securities on
the day on which such payments are due and payable in accordance with the terms of this
Indenture and such Debt Securities;

	 	(ii)	 	the Issuer or such Guarantor shall have received an Opinion of Counsel to the
effect that Holders of such Debt Securities will not recognize income (whether taxable
to them by deduction or withholding by the Issuer or such Guarantor or otherwise), gain
or loss for United States federal income tax purposes as a result of such deposit and
defeasance in respect of the Issuer’s and the Guarantors’ obligations and will be
subject to United States federal income tax as if such deposit and defeasance had not
occurred;
	 
	 	(iii)	 	the Issuer or such Guarantor shall have received an Opinion of Counsel to the
effect that the Holders of the Debt Securities affected will not recognize income
(whether taxable to them by deduction or withholding by the Issuer or such Guarantor or
otherwise), gain or loss for Canadian federal income tax purposes as a result of such
deposit and defeasance in respect of the Issuer’s and the Guarantors’ obligations and
will be subject to Canadian federal income tax as if such deposit and defeasance had
not occurred;
	 
	 	(iv)	 	such deposit will not result in a breach or violation of, or constitute a
Default under, this Indenture or any other material agreement or instrument to which
the Issuer or any Guarantor is a party or by which it is bound;
	 
	 	(v)	 	no Default with respect to the Debt Securities of such series shall have
occurred and be continuing on the date of such deposit;
	 
	 	(vi)	 	the Issuer or such Guarantor, as the case may be, shall have delivered to the
Trustee an Officers’ Certificate or an Opinion of Counsel, stating compliance with all
conditions precedent to the defeasance contemplated by Section 1301 or Section 1302;
and
	 
	 	(vii)	 	such deposit shall not cause the Trustee with respect to such series of Debt
Securities to have a conflicting interest, within the meaning of this Indenture, and
for purposes of the Trust Indenture Act with respect to such Debt Securities.

(b) Notwithstanding any defeasance under this Indenture with respect to such series of Debt
Securities, the obligation of the Issuer to indemnify and compensate the Trustee under this
Indenture and the obligations of the Trustee under Sections 1003 and 1303 shall survive with
respect to such series of Debt Securities.

86

 

SECTION 1302. Application of Trust Money.

All money deposited with the Trustee pursuant to Sections 1301 and 1302 shall be held in trust and
applied by it, in accordance with the provisions of the Debt Securities and this Indenture and any
applicable direction of the Issuer or a Guarantor to the payment, either directly or through any
Paying Agent (including the Issuer or such Guarantor acting as its own Paying Agent), as the
Trustee may determine, to the Persons entitled thereto, of the principal (and premium, if any) and
interest for whose payment such money has been deposited with the Trustee.

SECTION 1303. Repayment to the Issuer or Guarantors.

(a) The Trustee and any Paying Agent shall promptly pay to the Issuer or the applicable Guarantor
upon Issuer Request or Guarantor Request of such Guarantor, as the case may be, any money or
governmental obligations not required for the payment of the principal of (and premium, if any) and
interest on Debt Securities of any series for which currency or government obligations have been
deposited pursuant to Section 1301 or Section 1302 held by them at any time.

(b) The Trustee and any Paying Agent shall pay to the Issuer or the applicable Guarantor upon
Issuer Request or Guarantor Request of such Guarantor, as the case may be, any money held by them
for the payment of principal (and premium, if any) and interest that remains unclaimed for two
years after the Maturity of the Debt Securities for which a deposit has been made pursuant to
Section 1301 or Section 1302. After such payment to the Issuer or such Guarantor, as the case may
be, the Holders of Debt Securities of such series shall thereafter, as unsecured general creditors,
look only to the Issuer and the Guarantors for payment thereof, and all liability of the Issuer or
Guarantor as trustee thereof shall cease.

ARTICLE FOURTEEN

Meetings of Holders of Debt Securities

SECTION 1401. Purposes for Which Meetings May Be Called.

A meeting of Holders of Debt Securities of a series may be called at any time and from time to time
pursuant to this Article to make, give or take any Act provided by this Indenture to be made, given
or taken by Holders of Debt Securities of such series.

SECTION 1402. Call, Notice and Place of Meetings.

(a) The Trustee may at any time call a meeting of Holders of Debt Securities of any series for any
purpose specified in Section 1401, to be held at such time and at such place in the Borough of
Manhattan, The City of New York as specified in a notice to such Holders. Notice of every meeting
of Holders of Debt Securities of any series, setting forth the time and place of such meeting and
in general terms the action proposed to be taken at such meeting, shall be given, in the manner
provided in Section 106, not less than 21 or more than 50 days prior to the date fixed for the
meeting.

87

 

(b) If at any time the Issuer or a Guarantor, pursuant to a Board Resolution of the Issuer or an
Officers’ Certificate of such Guarantor, or the Holders of at least 10% in principal amount of the
Outstanding Debt Securities of any series shall have requested the Trustee to call a meeting of the
Holders of Debt Securities of such series for any purpose specified in Section 1401, by written
request setting forth in reasonable detail the action proposed to be taken at the meeting, and the
Trustee shall not have made the first publication of the notice of such meeting within 21 days
after receipt of such request or shall not thereafter proceed to cause the meeting to be held as
provided herein, then the Issuer, such Guarantor or the Holders of Debt Securities of such series
in the amount above specified, as the case may be, may determine the time and the place in the
Borough of Manhattan, The City of New York for such meeting and may call such meeting for such
purposes by giving notice thereof as provided in paragraph (a) of this Section.

SECTION 1403. Persons Entitled to Vote at Meetings.

To be entitled to vote at any meeting of Holders of Debt Securities of any series, a Person shall
be: (1) a Holder of one or more Outstanding Debt Securities of such series; or (2) a Person
appointed by an instrument in writing as proxy for a Holder or Holders of one or more Outstanding
Debt Securities of such series by such Holder or Holders. The only Persons who shall be entitled
to be present or to speak at any meeting of Holders of Debt Securities of any series shall be the
Persons entitled to vote at such meeting and their counsel, any representatives of the Trustee and
its counsel and any representatives of the Issuer and its counsel or a Guarantor and its counsel.

SECTION 1404. Quorum; Action.

(a) The Persons entitled to vote a majority in principal amount of Outstanding Debt Securities of a
series shall constitute a quorum for a meeting of Holders of Debt Securities of such series. In
the absence of a quorum within 45 minutes of the time appointed for any such meeting, the meeting
shall, if convened at the request of Holders of Debt Securities of such series, be dissolved. In
the absence of a quorum in any other case the meeting may be adjourned for a period of not less
than 10 days as determined by the chairman of the meeting prior to the adjournment of such meeting.
In the absence of a quorum upon the re-convening of any such adjourned meeting, such re-convened
meeting may be further adjourned for a period of not less than 10 days as determined by the
chairman of the meeting prior to the adjournment thereof. Notice of the reconvening of any
adjourned meeting shall be given as provided in Section 1402(a), except that such notice need be
given only once not less than five days prior to the date on which the meeting is scheduled to be
reconvened.

(b) Except as limited by the proviso to Section 902, any resolution presented to a meeting or
adjourned meeting duly reconvened at which a quorum is present as aforesaid may be adopted only by
the affirmative vote of the Holders of a majority in principal amount of Outstanding Debt
Securities of that series; provided that, except as limited by the proviso to Section 902, any
resolution with respect to any Act that this Indenture expressly provides may be made, given or
taken by the Holders of a specified percentage, which is less than a majority, in principal amount
of Outstanding Debt Securities of a series may be adopted at a meeting or an adjourned meeting duly
reconvened and at which a quorum is present as aforesaid by the affirmative vote of the Holders of
such specified percentage in principal amount of Outstanding Debt Securities of that series.

88

 

(c) Any resolution passed or decision taken at any meeting of Holders of Debt Securities of any
series duly held in accordance with this Section will be binding on all Holders of Debt Securities
of such series, whether or not present or represented at the meeting.

SECTION 1405. Determination of Voting Rights; Conduct and Adjournment of Meetings.

(a) Notwithstanding any other provisions of this Indenture, the Trustee may make such reasonable
regulations as it may deem advisable for any meeting of Holders of Debt Securities of such series
in regard to proof of the holding of Debt Securities of such series and of the appointment of
proxies and in regard to the appointment and duties of inspectors of votes, the submission and
examination of proxies, certificates and other evidence of the right to vote, and such other
matters concerning the conduct of the meeting as it shall deem appropriate. Except as otherwise
permitted or required by any such regulations, the holding of Debt Securities shall be proved in
the manner specified in Section 104 and the appointment of any proxy shall be proved in the manner
specified in Section 104. Such regulations may provide that written instruments appointing
proxies, regular on their face, may be presumed valid and genuine without the proof specified in
Section 104 or other proof.

(b) The Trustee shall, by an instrument in writing, appoint a temporary chairman of the meeting,
unless the meeting shall have been called by the Issuer, a Guarantor or by Holders of Debt
Securities as provided in Section 1402(b), in which case the Issuer, such Guarantor or the Holders
of Debt Securities of the series calling the meeting, as the case may be, shall in like manner
appoint a temporary chairman. A permanent chairman and a permanent secretary of the meeting shall
be elected by vote of the Persons entitled to vote a majority in principal amount of Outstanding
Debt Securities of such series represented at the meeting.

(c) At any meeting each Holder of a Debt Security of such series or proxy shall be entitled to one
vote for each $1,000 principal amount (or the equivalent per the Exchange Rate in any Foreign
Currency at the date of issue) of Debt Securities of such series held or represented by him;
provided that no vote shall be cast or counted at any meeting in respect of any Debt Security
challenged as not Outstanding and ruled by the chairman of the meeting to be not Outstanding. The
chairman of the meeting shall have no right to vote, except as a Holder of a Debt Security of such
series or proxy.

(d) Any meeting of Holders of Debt Securities of any series duly called pursuant to Section 1402 at
which a quorum is present may be adjourned from time to time by Persons entitled to vote a majority
in principal amount of Outstanding Debt Securities of such series represented at the meeting; and
the meeting may be re-convened without further notice.

SECTION 1406. Counting Votes and Recording Action of Meetings.

(a) The vote upon any resolution submitted to any meeting of Holders of Debt Securities of any
series shall be by written ballots on which shall be inscribed the signatures of the Holders of
Debt Securities of such series or of their representatives by proxy and the principal amounts and
serial numbers of Outstanding Debt Securities of such series held or represented by them. The
permanent chairman of the meeting shall appoint two inspectors of votes who shall count all votes
cast at the meeting for or against any resolution and who shall make and file with the

89

 

secretary of the meeting their verified written reports of all votes cast at the meeting. A record
of the proceedings of each meeting of Holders of Debt Securities of any series shall be prepared by
the secretary of the meeting and there shall be attached to said record the original reports of the
inspectors of votes on any vote by ballot taken thereat and affidavits by one or more persons
having knowledge of the facts setting forth a copy of the notice of the meeting and showing that
said notice was given as provided in Section 1402 and, if applicable, Section 1404. Four copies of
each shall be signed and verified by the affidavits of the permanent chairman and secretary of the
meeting and one such copy shall be delivered to the Issuer and Guarantors and another to the
Trustee to be preserved by the Trustee, the latter to have attached thereto the ballots voted at
the meeting. Any record so signed and verified shall be conclusive evidence of the matters therein
stated.

* * *

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

90

 

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

	 	 	 	 	 	 	 
	 	 	THE BANK OF NEW YORK,
	 	 	  as Trustee
	 
	 	 	 	 	 	 
	 	 	By:	 	/s/ Vanessa Mack
	 	 	 	 	 
	 

	 	 	 	Name:
	 	Vanessa Mack
	 

	 	 	 	Title:
	 	Vice President
	 
	 	 	 	 	 	 
	 	 	NORTEL NETWORKS LIMITED,
	 	 	  as Issuer
	 
	 	 	 	 	 	 
	 	 	By:	 	/s/ Katharine B. Stevenson
	 	 	 	 	 
	 

	 	 	 	Name:
	 	Katharine B. Stevenson
	 

	 	 	 	Title:
	 	Treasurer
	 
	 	 	 	 	 	 
	 	 	By:	 	/s/ Gordon A. Davies
	 	 	 	 	 
	 

	 	 	 	Name:
	 	Gordon A. Davies
	 

	 	 	 	Title:
	 	General Counsel — Corporate
	 

	 	 	 	 	 	and Corporate Secretary
	 
	 	 	 	 	 	 
	 	 	NORTEL NETWORKS CORPORATION,
	 	 	  as Guarantor
	 
	 	 	 	 	 	 
	 	 	By:	 	/s/ Katharine B. Stevenson
	 	 	 	 	 
	 

	 	 	 	Name:
	 	Katharine B. Stevenson
	 

	 	 	 	Title:
	 	Treasurer
	 
	 	 	 	 	 	 
	 	 	By:	 	/s/ Gordon A. Davies
	 	 	 	 	 
	 

	 	 	 	Name:
	 	Gordon A. Davies
	 

	 	 	 	Title:
	 	General Counsel — Corporate
	 

	 	 	 	 	 	and Corporate Secretary
	 
	 	 	 	 	 	 
	 	 	NORTEL NETWORKS INC.,
	 	 	  as Guarantor
	 
	 	 	 	 	 	 
	 	 	By:	 	/s/ Allen K. Stout
	 	 	 	 	 
	 

	 	 	 	Name:
	 	Allen K. Stout
	 

	 	 	 	Title:
	 	Vice President, Finance

91

 

Exhibit A

Form of election to receive payments in

[Dollars or other applicable currency]

or to rescind such election

     The undersigned, registered owner of certificate number R-          , representing [name
of series of Debt Securities] (the “Debt Securities”) in an aggregate principal amount of          , hereby

	[  ]	 	elects to receive all payments in respect of the Debt Securities in
[Dollars or other applicable currency], it being understood that
such election shall take effect as provided in the Indenture and,
subject to the terms and conditions set forth in the indenture under
which the Debt Securities were issued, shall remain in effect until
it is rescinded by the undersigned or until such certificate is
transferred.
	 
	[  ]	 	rescinds the election previously submitted by the undersigned to
receive all payments in respect of the Debt Securities in [Dollars
or other applicable currency], it being understood that such
rescission shall take effect as provided in the Indenture.

	 	 	 	 	 
	 

	 	 

(Name of Owner)
	 	 
	 
	 	 	 	 
	`

	 	 

(Signature of Owner)]
	 	 

A-1

 

EXHIBIT B

FORM
OF REGULATIONS/RULE 144 CERTIFICATE

(For transfers pursuant to Section 308 of the Indenture)

The Bank of New York,

as Trustee

101 Barclay St., 8W

New York, New York 10286

Attention: Corporate Trust Administration

	 	 	 
	Re:

	 	[Title of Debt Securities] of
	 

	 	Nortel Networks Limited
	 

	 	(the “Debt Securities”)

     Reference is made to the Indenture, dated as of [  ], 2006 (the “Indenture”), among Nortel
Networks Limited (the “Company”), as Issuer, Nortel Networks Corporation and Nortel Networks Inc.,
as Guarantors and The Bank of New York, as Trustee. Terms used herein and defined in the Indenture
or in Regulation S or Rule 144 under the U.S. Securities Act of 1933, as amended (the “Securities
Act”) are used herein as so defined.

     This certificate relates to U.S. $                     principal amount of Debt Securities, which are
evidenced by the following certificate(s) (the “Specified Debt Securities”):

              CUSIP No(s).                                                       

              CERTIFICATE No(s).                                         

     The person in whose name this certificate is executed below (the “Undersigned”) hereby
certifies that either (i) it is the sole beneficial owner of the Specified Debt Securities or (ii)
it is acting on behalf of all the beneficial owners of the Specified Debt Securities and is duly
authorized by them to do so. Such beneficial owner or owners are referred to herein collectively
as the “Owner.” If the Specified Debt Securities are represented by a Global Security, they are
held through the Depositary or a Participant in the name of the Undersigned, as or on behalf of the
Owner. If the Specified Debt Securities are not represented by a Global Security, they are
registered in the name of the Undersigned, as or on behalf of the Owner.

     The Owner has requested that the Specified Debt Securities be transferred to a Person (the
“Transferee”) who will take delivery in the form of a Regulation S Debt Security. In connection
with such transfer, the Owner hereby certifies that, unless such transfer is being effected
pursuant to an effective registration statement under the Securities Act, it is being effected in
accordance with Rule 904 or Rule 144 under the Securities Act and with all applicable securities
laws of the states of the United States and other jurisdictions. Accordingly, the Owner hereby
further certifies as follows:

B-1

 

	 	(a)	 	Rule 904 Transfers. If the transfer is being effected in accordance with Rule 904:

	 	(i)	 	the Owner is not a distributor of the Debt Securities, an
Affiliate of the Company or any Guarantor or any such distributor or a Person
acting on behalf of any of the foregoing;
	 
	 	(ii)	 	the offer of the Specified Debt Securities was not made to a
Person in the United States;
	 
	 	(iii)	 	either:

	 	(1)	 	at the time the buy order was originated, the
Transferee was outside the United States or the Owner and any Person
acting on its behalf reasonably believed that the Transferee was
outside the United States, or
	 
	 	(2)	 	the transaction is being executed in, on or
through the facilities of the Eurobond market, as regulated by the
Association of International Bond Dealers, or another designated
offshore securities market and neither the Owner nor any Person acting
on its behalf knows that the transaction has been prearranged with a
buyer in the United States;

	 	(iv)	 	no directed selling efforts have been made in the United States
by or on behalf of the Owner or any Affiliate thereof;
	 
	 	(v)	 	if the Owner is a dealer in securities or has received a
selling concession, fee or other remuneration in respect of the Specified Debt
Securities, and the transfer is to occur during the Restricted Period, then the
requirements of Rule 904(c)(1)have been satisfied; and
	 
	 	(vi)	 	the transaction is not part of a plan or scheme to evade the
registration requirements of the Securities Act.

	 	(b)	 	Rule 144 Transfers. If the transfer is being effected pursuant to Rule 144:

	 	(i)	 	the transfer is occurring after a holding period of at least
one year (computed in accordance with paragraph (d) of Rule 144) has elapsed
since the Specified Debt Securities were last acquired from the Company or a
Guarantor or from an Affiliate of the Company or a Guarantor, whichever is
later, and is being effected in accordance with the applicable amount, manner
of sale and notice requirements of Rule 144; or
	 
	 	(ii)	 	the transfer is occurring after a holding period of at least
two years has elapsed since the Specified Debt Securities were last acquired
from the Company or a Guarantor or from an Affiliate of the Company or a
Guarantor, whichever is later, and the Owner is not, and during the preceding
three months has not been, an Affiliate of the Company or a Guarantor.

B-2

 

     This certificate and the statements contained herein are made for your benefit and the benefit
of the Issuer, the Guarantors and the Initial Purchasers of the Debt Securities.

	 	 	 
	Dated:
	 	 
	 

	 	 

(Print the name of the Undersigned,

as such term is defined in the

second paragraph of this certificate.)

By:

Name:

Title:

(If the Undersigned is a corporation, partnership or fiduciary, the title of the person signing on
behalf of the Undersigned must be stated.)

B-3

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