Document:

Exhibit 4.10

 Exhibit 4.10 
  
 CONFORMED COPY 
  
 USD150,000,000 
  
 FACILITY AGREEMENT 
  
 dated 31 March 2004 
  
 for 
  
 Standard Commercial Tobacco Co., Inc. 
  
 Standard Commercial Tobacco Company (UK) Limited 
  
 Trans-Continental Leaf Tobacco Corporation Limited 
  
 arranged by 
  
 DEUTSCHE BANK AG in Hamburg 
  
 as Arranger 
  
 and 
  
 ING
BANK N.V., London Branch 
  
 (in conjunction with ING BHF-BANK AG,
Hamburg) 
  
 as Co-Arranger 
  
 with 
  
 ING BANK N.V., London Branch 
  
 acting as Agent 
  
 [GRAPHIC] 
  
 F3/KB/1279180.17 
 M1209.00275 
  

 CONTENTS 
  

					
	 	  	PAGE

	 CLAUSE
	  	 
			
	 	  	 SECTION 1 INTERPRETATION
	  	 
			
	 1.
	  	 DEFINITIONS AND INTERPRETATION
	  	1
			
	 	  	 SECTION 2 THE FACILITY
	  	 
			
	 2.
	  	 THE FACILITY
	  	12
			
	 3.
	  	 PURPOSE
	  	12
			
	 4.
	  	 CONDITIONS OF UTILISATION
	  	12
			
	 	  	 SECTION 3 UTILISATION
	  	 
			
	 5.
	  	 UTILISATION
	  	14
			
	 6.
	  	 OPTIONAL CURRENCIES
	  	14
			
	 	  	 SECTION 4 REPAYMENT, PREPAYMENT AND
CANCELLATION
	  	 
			
	 7.
	  	 REPAYMENT
	  	16
			
	 8.
	  	 PREPAYMENT AND CANCELLATION
	  	16
			
	 	  	 SECTION 5 COSTS OF UTILISATION
	  	 
			
	 9.
	  	 INTEREST
	  	19
			
	 10.
	  	 INTEREST PERIODS
	  	20
			
	 11.
	  	 CHANGES TO THE CALCULATION OF
INTEREST
	  	21
			
	 12.
	  	 FEES
	  	22
			
	 	  	 SECTION 6 ADDITIONAL PAYMENT OBLIGATIONS
	  	 
			
	 13.
	  	 TAX GROSS UP AND INDEMNITIES
	  	23
			
	 14.
	  	 INCREASED COSTS
	  	27
			
	 15.
	  	 OTHER INDEMNITIES
	  	28
			
	 16.
	  	 MITIGATION BY THE LENDERS
	  	29
			
	 17.
	  	 COSTS AND EXPENSES
	  	29
			
	 	  	 SECTION 7 GUARANTEE
	  	 
			
	 18.
	  	 GUARANTEE AND INDEMNITY
	  	30
			
	 	  	 SECTION 8 REPRESENTATIONS, UNDERTAKINGS AND EVENTS
OF DEFAULT
	  	 
			
	 19.
	  	 REPRESENTATIONS
	  	33
			
	 20.
	  	 INFORMATION UNDERTAKINGS
	  	37
			
	 21.
	  	 FINANCIAL COVENANTS
	  	41
			
	 22.
	  	 GENERAL UNDERTAKINGS
	  	45
			
	 23.
	  	 EVENTS OF DEFAULT
	  	52
			
	 	  	 SECTION 9 CHANGES TO PARTIES
	  	 
			
	 24.
	  	 CHANGES TO THE LENDERS
	  	56
			
	 	  	 SECTION 10 THE FINANCE PARTIES
	  	 

  

					
	 26.
	  	 ROLE OF THE AGENT AND THE
ARRANGER
	  	59
			
	 27.
	  	 CONDUCT OF BUSINESS BY THE FINANCE
PARTIES
	  	61
			
	 28.
	  	 SHARING AMONG THE FINANCE PARTIES
	  	63
			
	 	  	 SECTION 11 ADMINISTRATION
	  	 
			
	 29.
	  	 PAYMENT MECHANICS
	  	65
			
	 30.
	  	 SET-OFF
	  	67
			
	 31.
	  	 NOTICES
	  	67
			
	 32.
	  	 CALCULATIONS AND CERTIFICATES
	  	69
			
	 33.
	  	 PARTIAL INVALIDITY
	  	69
			
	 34.
	  	 REMEDIES AND WAIVERS
	  	69
			
	 35.
	  	 AMENDMENTS AND WAIVERS
	  	69
			
	 36.
	  	 COUNTERPARTS
	  	70
			
	 	  	 SECTION 12 GOVERNING LAW AND ENFORCEMENT
	  	 
			
	 37.
	  	 GOVERNING LAW
	  	71
			
	 38.
	  	 ENFORCEMENT
	  	71

  

					
	 SCHEDULES
	  	 	  	72
			
	 1.
	  	 THE ORIGINAL PARTIES
	  	72
			
	 2.
	  	 CONDITIONS PRECEDENT
	  	75
			
	 3.
	  	 UTILISATION REQUEST
	  	77
			
	 4.
	  	 MANDATORY COST FORMULAE
	  	78
			
	 5.
	  	 FORM OF TRANSFER CERTIFICATES
	  	81
			
	 6.
	  	 FORM OF COMPLIANCE CERTIFICATE
	  	83
			
	 7.
	  	 EXISTING SECURITY
	  	85
			
	 8.
	  	 LMA FORM OF CONFIDENTIALITY UNDERTAKING
	  	89
			
	 9.
	  	 TIMETABLES
	  	93
			
	 10.
	  	 WOOL GROUP COMPANIES
	  	94
			
	 11.
	  	 EMPLOYEE BENEFIT PLANS (ERISA)
	  	95
			
	 12.
	  	 BORROWING BASE CERTIFICATE
	  	96
			
	 13.
	  	 EXCLUDED COMPANIES
	  	97

  

 - ii - 

 THIS AGREEMENT is dated 31 March 2004 and made between: 
  

	(1)	STANDARD COMMERCIAL CORPORATION (the “Principal Guarantor”); 

  

	(2)	THE SUBSIDIARIES of the Principal Guarantor listed in Part I of Schedule 1 as borrowers (the “Borrowers”); 

  

	(3)	THE SUBSIDIARIES of the Principal Guarantor listed in Part I of Schedule 1 as guarantors (together with the Principal Guarantor the “Guarantors”);

  

	(4)	DEUTSCHE BANK AG in Hamburg as Arranger and ING BANK N.V., London Branch as Co-Arranger (whether acting individually or together the “Arranger”);

  

	(5)	THE FINANCIAL INSTITUTIONS listed in Part II and Part III of Schedule 1 as lenders (the “Original Lenders”); and 

  

	(6)	ING BANK N.V., London Branch as agent of the other Finance Parties (the “Agent”). 

  
 IT IS AGREED as follows: 
  
 SECTION 1 
  
 INTERPRETATION 
  

	1.	DEFINITIONS AND INTERPRETATION 

  

	1.1	Definitions 

  
 In this Agreement: 
  
 “Additional Cost Rate” has the meaning given to it in Schedule 4 (Mandatory Cost formulae). 
  
 “Affiliate” means, in relation to any person, a Subsidiary
of that person or a Holding Company of that person or any other Subsidiary of that Holding Company. 
  
 “Agent’s Spot Rate of Exchange” means the Agent’s spot rate of exchange for the purchase of the relevant currency with the Base
Currency in the London foreign exchange market at or about 11.00am on a particular day. 
  
 “Authorisation” means an authorisation, consent, approval, resolution, licence, exemption, filing, notarisation or registration. 
  
 “Availability Period” means the period from and including the date on which the Agent gives notice to the
Obligors and the Lenders under Clause 4.1 (Initial Conditions Precedent) to and including the date falling 30 days prior to the Termination Date. 
  
 “Available Commitment” means a Lender’s Commitment minus: 
  

	 	(a)	the Base Currency Amount of its participation in any outstanding Loans; and 

  

	 	(b)	in relation to any proposed Utilisation, the Base Currency Amount of its participation in any Loans that are due to be made on or before the proposed Utilisation Date,

  
 other than that Lender’s participation in
any Loans that are due to be repaid or prepaid on or before the proposed Utilisation Date. 
  
 “Available Facility” means the aggregate for the time being of each Lender’s Available Commitment. 
  

 “Bankruptcy Code” means Title 11 of the United States Code entitled
“Bankruptcy” as now and hereafter in effect, or any successor statute. 
  
 “Base Currency” means dollars. 
  
 “Base Currency Amount” means, in relation to a Loan, the amount specified in the Utilisation Request delivered by a Borrower for that Loan (or, if the amount requested is not denominated in the Base
Currency, that amount converted into the Base Currency at the Agent’s Spot Rate of Exchange on the date which is three Business Days before the Utilisation Date or, if later, on the date the Agent receives the Utilisation Request) adjusted to
reflect any repayment or prepayment of the Loan. 
  
 “Bonds” means the $150,000,000 notes 2012 issued by the Principal Guarantor. 
  
 “Borrower” means a Subsidiary of the Principal Guarantor listed in Part 1 of Schedule 1 as a borrower. 
  
 “Borrowing Base Certificate” means a certificate delivered
under clause 20.4 (Borrowing Base Certificate). 
  
 “Break Costs” means the amount (if any) by which: 
  

	 	(a)	the interest which a Lender should have received for the period from the date of receipt of all or any part of its participation in a Loan or Unpaid Sum to the last day of the
current Interest Period in respect of that Loan or Unpaid Sum, had the principal amount or Unpaid Sum received been paid on the last day of that Interest Period; 

  
 exceeds: 
  

	 	(b)	the amount which that Lender would be able to obtain by placing an amount equal to the principal amount or Unpaid Sum received by it on deposit with a leading bank in the Relevant
Interbank Market for a period starting on the Business Day following receipt or recovery and ending on the last day of the current Interest Period. 

  
 “Business Day” means a day (other than a Saturday or Sunday) on which banks are open for general business
in London, New York and Hamburg and, in relation to any date for payment and purchase of euro, any TARGET Day. 
  
 “Code” means the Internal Revenue Code of 1986 of the United States of America, as amended and all implementing regulations. 

 
 “Commitment” means: 
  

	 	(a)	in relation to an Original Lender, the amount in the Base Currency set opposite its name under the heading “Commitment” in Part II or Part III of Schedule 1
(The Original Parties) and the amount of any other Commitment transferred to it under this Agreement; and 

  

	 	(b)	in relation to any other Lender, the amount in the Base Currency of any Commitment transferred to it under this Agreement, 

  
 to the extent not cancelled, reduced or transferred by it under this
Agreement. 
  
 “Compliance Certificate” means a
certificate substantially in the form set out in Schedule 6 (Form of Compliance Certificate). 
  

 - 2 - 

 “Confidentiality Undertaking” means a confidentiality undertaking substantially in a
recommended form of the LMA as set out in Schedule 8 (LMA Form of Confidentiality Undertaking) or in any other form agreed between the Principal Guarantor and the Agent. 
  
 “Default” means an Event of Default or any event or circumstance specified in Clause 23 (Events of
Default) which would (with the expiry of a grace period, the giving of notice, the making of any determination under the Finance Documents or any combination of any of the foregoing) be an Event of Default. 
  
 “dollars” and “$” mean the lawful currency
for the time being of the United States of America. 
  
 “Employee Benefit Plan” means any employee benefit plan within the meaning of Section 3(3) of ERISA (including, without limitation, any Plan, defined benefit plan, defined contribution plan, welfare plan, Multiemployer
Plan, plan subject to Section 4063 of ERISA, and any plan providing post-employment or post-retirement benefits), or any plan within the meaning of Section 4975(e) of the Code, or any other employee benefit plan within the meaning of any applicable
Foreign Benefits Law. 
  
 “Environmental Claim”
means any written notice of violation, claim, demand or other order (conditional or otherwise) by any governmental authority or any Person for personal injury (including sickness, disease or death), tangible or intangible property damage, damage
to the environment, nuisance, pollution, contamination or other adverse effects on the environment, or for fines or penalties resulting from or based upon (i) the existence, or the continuation of the existence, of a Release (whether sudden or
non-sudden or accidental or non-accidental), of, or exposure to, any Hazardous Material, in, into or onto the environment at, in, or from any Facility Plant (ii) the transportation, storage, treatment or disposal of Hazardous Materials in connection
with the operation of any Facility Plant, or (iii) the violation, or alleged violation, of any statute, ordinance, order, rule, regulation, permit or license of or from any governmental authority, agency or court relating to Hazardous Materials with
respect to the Facilities or any Facility Plant. 
  
 “Environmental Laws” means all laws relating to fines, orders, injunctions, penalties, damages, contribution, cost recovery, compensation, losses or injuries resulting from the Release or threatened Release of Hazardous
Materials or to the generation, storage, transportation, or disposal of Hazardous Materials, in any manner applicable to any Principal Guarantor or any of its respective Subsidiaries or any of their respective properties, including the Comprehensive
Environmental Response, Compensation, and Liability Act (42 U.S.C. § 9601 et seq.), the Hazardous Material Transportation Act (49 U.S.C. § 1801 et seq.), the Resource Conservation and Recovery Act (42 U.S.C.
§ 6901 et seq.), the Federal Water Pollution Control Act (33 U.S.C. § 1251 et seq.), the Clean Air Act (42 U.S.C. § 7401 et seq.), the Toxic Substances Control Act (15 U.S.C. § 2601
et seq.), the Occupational Safety and Health Act (29 U.S.C. § 651 et seq.) and the Emergency Planning and Community Right-to-Know Act (42 U.S.C. § 11001 et seq.), each as amended or supplemented,
and any analogous future or present local, state, Federal and foreign statutes and regulations promulgated pursuant thereto, each as in effect as of the date of determination; for the avoidance of doubt, reference to such laws shall include any
period of time provided for in such laws for Persons to come into compliance with such laws. 
  
 “ERISA” means the Employee Retirement Income Security Act of 1974, as amended from time to time, and all implementing regulations. 
  
 “ERISA Group” means the Group and all members of a controlled group of corporations and all trades and
businesses (whether or not incorporated) under common control which, together with any members of the Group, are treated as a single employer for purposes of Section 414 of the Code, Title I or IV or ERISA or any comparable provision of any
applicable Foreign Benefits Law. 
  

 - 3 - 

 “euro” and “€” mean the single currency of the Participating
Member States. 
  
 “Event of Default”
means any event or circumstance specified as such in Clause 23 (Events of Default). 
  
 “Excluded Company” means a company identified in Schedule 13 (Excluded Companies) provided that if: 
  

	 	(a)	any Excluded Company has net assets equal to or greater than 2% of the consolidated net assets of the Group as demonstrated by the most recent financial statements delivered under
clause 20.1 (Financial statements); or 

  

	 	(b)	any Excluded Company contributes more than 2% of EBITDA as demonstrated by the most recent financial statements delivered under clause 20.1 (Financial statements),

  
 then it shall no longer be an Excluded Company.

  
 “Excluded Proceedings” means: 
  

	 	(a)	legal proceedings which the Obligors establish to the satisfaction of the Agent (acting reasonably) are frivolous or vexatious and without legal foundation; or

  

	 	(b)	legal proceedings (not being proceedings relating to a petition for the administration of any member of the Group) which the Obligors establish to the satisfaction of the Agent
(acting reasonably) are being contested in good faith by the relevant member of the Group and are: 

  

	 	(i)	if the relevant proceedings relate to a petition for the winding-up of the relevant member of the Group, dismissed before they are advertised or supported or an order is made; and

  

	 	(ii)	dismissed within 30 days. 

  
 “Facility Plant” means any plant, factory, warehouse or other facility at which the Principal Guarantor or any of its Subsidiaries
conducts business, or otherwise owned, leased or operated by the Principal Guarantor or any of its Subsidiaries. 
  
 “Facility” means the revolving loan facility made available under this Agreement as described in Clause 2 (The Facility).

  
 “Facility Office” means the office or
offices notified by a Lender to the Agent in writing on or before the date it becomes a Lender (or, following that date, by not less than five Business Days’ written notice) as the office or offices through which it will perform its obligations
under this Agreement. 
  
 “Fee Letter” means any
letter or letters dated on or about the date of this Agreement between the Arranger and the Principal Guarantor (or the Agent and the Principal Guarantor) setting out any of the fees referred to in Clause 12 (Fees). 
  
 “Finance Document” means this Agreement, any Fee Letter and
any other document designated as such by the Agent and the Principal Guarantor. 
  
 “Finance Party” means the Agent, the Arranger or a Lender. 
  
 “Financial Indebtedness” means (without double counting) any indebtedness for or in respect of: 
  

	 	(a)	moneys borrowed; 

  

 - 4 - 

	 	(b)	any amount raised by acceptance under any acceptance credit facility; 

  

	 	(c)	any amount raised pursuant to any note purchase facility or the issue of bonds, notes, debentures, loan stock or any similar instrument; 

  

	 	(d)	the amount of any liability in respect of any lease or hire purchase contract which would, in accordance with GAAP, be treated as a finance or capital lease;

  

	 	(e)	receivables sold or discounted (other than any receivables to the extent they are sold on a non-recourse basis); 

  

	 	(f)	any amount raised under any other transaction (including any forward sale or purchase agreement) having the commercial effect of a borrowing; 

  

	 	(g)	any derivative transaction entered into in connection with protection against or benefit from fluctuation in any rate or price (and, when calculating the value of any derivative
transaction, only the mark to market value shall be taken into account as measured under GAAP); 

  

	 	(h)	any counter-indemnity obligation in respect of a guarantee, indemnity, bond, standby letter of credit or any other instrument issued by a bank or financial institution; and

  

	 	(i)	the amount of any liability in respect of any guarantee or indemnity for any of the items referred to in paragraphs (a) to (h) above. 

  
 “Financial Statements”: 
  

	 	(a)	each of the Original Financial Statements; and 

  

	 	(b)	any accounts or financial statements delivered to the Agent under Clause 19.11(Financial Statements). 

  
 “First Utilisation” means the first Utilisation of the
Facility which shall be in an amount which is at least the amount required to refinance all loan amounts outstanding under facilities regulated by the MFA and shall be applied, inter alia, to refinance in full all such amounts. 
  
 “Foreign Benefits Agency” means any government agency or
authority, whether or not comparable to the PBGC, the Department of Labor or the Internal Revenue Service, that supervises Employee Benefit Plans and/or tax or other matters related thereto under applicable Foreign Benefits Law. 
  
 “Foreign Benefits Law” means any law, rule, regulation or
order of any jurisdiction outside the United States of America, whether or not comparable to ERISA or the Code, governing or relating to Employee Benefit Plans and/or to taxation in respect thereof. 
  
 “GAAP” in relation to any company means generally accepted
accounting principles in the jurisdiction of incorporation of that company. 
  
 “Group” means the Principal Guarantor and its Subsidiaries for the time being. 
  
 “Guarantor” means the Principal Guarantor and each Subsidiary of the Principal Guarantor listed in Part 1 of Schedule 1 as a guarantor.

  
 “Hazardous Materials” means (i) any oil,
petroleum or petroleum derived substance, any drilling fluids, produced waters and other wastes associated with the exploration, development or production of crude oil, any flammable substances or explosives, any radioactive materials, any hazardous
wastes or substances, or any toxic wastes which (a) pose a hazard to any property of the Principal Guarantor or any of its Subsidiaries or to 

  

 - 5 - 

 
Persons on or about such property or (b) cause such property to be in violation of any Environmental Laws, (ii) asbestos in any form which is friable, urea
formaldehyde foam insulation, electrical equipment which contains any oil or dielectric fluid containing levels of polychlorinated biphenyls in excess of fifty parts per million, (iii) any chemical, material or substance defined as or included in
the definition of “hazardous substances,” “hazardous wastes,” “hazardous materials,” “extremely hazardous waste,” “restricted hazardous waste,” or “toxic substances” or words of similar
import under any applicable local, state, Federal or foreign law or under the regulations adopted or publications promulgated pursuant thereto, including Environmental Laws, and (iv) any other chemical, material or substance, exposure to which is
prohibited, limited or regulated by any governmental authority having jurisdiction over the Principal Guarantor or any of its Subsidiaries or any of their respective properties. 
  
 “Holding Company” means, in relation to a company or corporation, any other company or corporation in
respect of which it is a Subsidiary. 
  
 “Interest
Period” means, in relation to a Loan, each period determined in accordance with Clause 10 (Interest Periods) and, in relation to an Unpaid Sum, each period determined in accordance with Clause 9.3 (Default interest).

  
 “Lender” means: 
  

	 	(a)	any Original Lender; and 

  

	 	(b)	any bank, financial institution, trust, fund or other entity which has become a Party in accordance with Clause 24 (Changes to the Lenders), 

  
 which in each case has not ceased to be a Party in accordance with the terms
of this Agreement. 
  
 “LIBOR” means, in
relation to any Loan: 
  

	 	(a)	the applicable Screen Rate; or 

  

	 	(b)	(if no Screen Rate is available for the currency or Interest Period of that Loan) the arithmetic mean of the rates (rounded upwards to four decimal places) as supplied to the Agent
at its request quoted by the Reference Banks to leading banks in the London interbank market, 

  
 as of the Specified Time on the Quotation Day for the offering of deposits in the currency of that Loan and for a period comparable to the Interest Period
for that Loan. 
  
 “Loan” means a loan made or
to be made under the Facility or the principal amount outstanding for the time being of that loan. 
  
 “LMA” means the Loan Market Association. 
  
 “Majority Lenders” means: 
  

	 	(a)	until the Total Commitments have been reduced to zero, a Lender or Lenders whose Commitments aggregate more than 662/3% of the Total
Commitments (or, if the Total Commitments have been reduced to zero and there are no Loans then outstanding, aggregated more than 662/3% of the Total Commitments immediately prior to the reduction); or 

  

	 	(b)	at any other time, a Lender or Lenders whose participations in the Loans then outstanding aggregate more than 662/3% of all the Loans then
outstanding. 

  

 - 6 - 

 “Mandatory Cost” means the percentage rate per annum calculated by the Agent in
accordance with Schedule 4 (Mandatory Cost formula). 
  
 “Margin” means the applicable margin determined by reference to clause 9.5 (Margin ratio). 
  
 “Material Adverse Effect” means any effect, any event or circumstance (on its own or in combination with any other effects, events or
circumstances then in existence), which is or is reasonably likely to be materially adverse to the business or financial condition of the Tobacco Group or on the ability of any of the Obligors to perform its obligations under the Finance Documents.

  
 “MFA” means the Master Facilities Agreement
dated 5 May 1995 to which, inter alia, the Obligors are party, as amended from time to time prior to the date of this Agreement. 
  
 “Month” means a period starting on one day in a calendar month and ending on the numerically corresponding day in the next calendar
month, except that: 
  

	 	(a)	if the numerically corresponding day is not a Business Day, that period shall end on the next Business Day in that calendar month in which that period is to end if there is one, or
if there is not, on the immediately preceding Business Day; and 

  

	 	(b)	if there is no numerically corresponding day in the calendar month in which that period is to end, that period shall end on the last Business Day in that calendar month.

  
 “Multiemployer Plan” means an
employee pension benefit plan defined in Sections 3(37) or 4001(a)(3) of ERISA or as provided for in any applicable Foreign Benefits Law, to which any member of the ERISA Group is then making or accruing an obligation to make contributions or has
within the preceding six plan years made contributions, including for these purposes any Person which ceased to be a member of the ERISA Group during such six-year period. 
  
 “Obligor” means a Borrower or a Guarantor. 
  
 “OECD” means the Organisation for Economic Co-operation and Development. 
  
 “Optional Currency” means euros. 
  
 “Original Financial Statements” means: 
  

	 	(a)	in relation to the Principal Guarantor, the audited consolidated financial statements of the Group for the financial year ended 31 March 2003; and 

  

	 	(b)	in relation to each Obligor other than the Principal Guarantor, its audited financial statements for its financial year ended 31 March 2003. 

  
 “Participating Member State” means any member state of the
European Communities that adopts or has adopted the euro as its lawful currency in accordance with legislation of the European Community relating to Economic and Monetary Union. 
  
 “Party” means a party to this Agreement. 
  
 “PBGC” means the Pension Benefits Guaranty Corporation, or any other organization succeeding to it or its
functions. 
  
 “Person” means any natural or
legal person under the laws of any jurisdiction. 
  
 “Plan” means an employee pension benefit plan within the meaning of Section 3(2)(A) of ERISA (other than a Multiemployer Plan or plan subject to Section 4063 of ERISA) which 

  

 - 7 - 

 
is intended to qualify under Section 401 of the Code, or under any other comparable provision of any applicable Foreign Benefits Law, and either (a) is
maintained or contributed to by any member of the ERISA Group for employees of any member of the ERISA Group or (ii) has at any time in the preceding six years been maintained or contributed to, by any Person which was at such time a member of the
ERISA Group. 
  
 “Prohibited Transaction” means,
with respect to any Employee Benefit Plan, or with respect to the Principal Guarantor, or any member of the ERISA Group or any other Person defined as a “party in interest” under ERISA or a “disqualified person” under the Code,
any transaction in violation of Sections 406 or 407 of ERISA which is not exempt pursuant to ERISA or any “prohibited transaction” as defined in Section 4975(c)(1) of the Code which is not exempt under the Code, or any other transaction in
violation of any comparable provision under any Foreign Benefits Law. 
  
 “Qualifying Lender” has the meaning given to it in Clause 13 (Tax gross-up and indemnities). 
  
 “Quotation Day” means, in relation to any period for which an interest rate is to be determined, two Business Days before the first day
of that period unless market practice differs in the Relevant Interbank Market in which case the Quotation Day will be determined by the Agent in accordance with market practice in the Relevant Interbank Market (and if quotations would normally be
given by leading banks in the Relevant Interbank Market on more than one day, the Quotation Day will be the last of those days). 
  
 “Reference Banks” means the principal London office of ING Bank N.V. and Deutsche Bank AG in Hamburg or such other banks as may be
appointed by the Agent in consultation with the Obligors. 
  
 “Release” means any release, spill, emission, leaking, pumping, injection, deposit, disposal, discharge, dispersal, leaching or migration in, by or from any Facility into the indoor or outdoor environment, including the
movement of any Hazardous Materials through the air, soil, surface water, groundwater or property. 
  
 “Relevant Interbank Market” means the London interbank market. 
  
 “Repeating Representations” means those representations expressed in clause 19.17 (Repetition) to be
repeated on the date of each Utilisation Request and the first day of each Interest Period. 
  
 “Reservations” has the meaning set out in clause 19.2 (Binding obligations). 
  
 “Rollover Loan” means one or more Loans: 
  

	 	(a)	made or to be made on the same day that a maturing Loan is due to be repaid; 

  

	 	(b)	the aggregate amount of which is equal to or less than the maturing Loan; 

  

	 	(c)	made or to be made to the same Borrower for the purpose of refinancing a maturing Loan. 

  
 “SCTCI” means Standard Commercial Tobacco Co., Inc. 
  
 “SCTCUK” means Standard Commercial Tobacco Company (UK)
Limited. 
  
 “Screen Rate” means the British
Bankers’ Association Interest Settlement Rate for dollars for the relevant period displayed on the appropriate page of the Reuters screen. If the agreed page is replaced or service ceases to be available, the Agent may specify another page or
service displaying the appropriate rate after consultation with the Obligors and the Lenders. 
  

 - 8 - 

 “Security” means a mortgage, charge, pledge, lien or other security interest securing
any obligation of any person or any other agreement or arrangement having a similar effect. 
  
 “Specified Time” means a time determined in accordance with Schedule 9 (Timetables). 
  
 “Subsidiary” means that a company is a subsidiary of another company (its “Parent”) if its Parent: 
  

	 	(a)	holds a majority of the voting rights in it ; or 

  

	 	(b)	is a member of it and has the right to appoint or remove a majority of its board of directors; or 

  

	 	(c)	is a member of it and controls alone, pursuant to an agreement with other shareholders or members, a majority of the voting rights in it. 

  
 “TARGET” means Trans-European Automated Real-time Gross
Settlement Express Transfer payment system. 
  
 “TARGET
Day” means any day on which TARGET is open for the settlement of payments in euro. 
  
 “Tax” means any tax, levy, impost, duty or other charge or withholding of a similar nature (including any penalty or interest payable in connection with any failure to pay or any delay in paying any
of the same). 
  
 “Taxes Act” means the Income
and Corporation Taxes Act 1988. 
  
 “TCLTC”
means Trans-Continental Leaf Tobacco Corporation Limited. 
  
 “Termination Date” means: 
  

	 	(a)	in the case of each Borrower other than TCLTC, the date falling three years after the date of this Agreement; and 

  

	 	(b)	in the case of TCLTC, the date falling two years after the date of this Agreement unless the Agent (acting on the instructions of the Majority Lenders serves notice in writing to
TCLTC at least 11 Months prior to the date falling two years after the date of this Agreement stating that the Termination Date for TCLTC shall be the date falling three years after the date of this Agreement, in which case that date shall be the
Termination Date for TCLTC (and, for the avoidance of doubt, TCLTC shall have no right to refuse such extension if such notice is served). 

  
 “Tobacco Group” means all the Tobacco Group Companies. 
  
 “Tobacco Group Companies” means the members of the Group except for the Wool Group Companies and each is a
“Tobacco Group Company”. 
  
 “Total
Commitments” means the aggregate of the Commitments, being $150,000,000 at the date of this Agreement. 
  
 “Transfer Certificate” means a certificate substantially in one of the forms set out in Schedule 5 (Form of Transfer Certificates)
or any other form agreed between the Agent and the Obligors. 
  
 “Transfer Date” means, in relation to a transfer, the later of: 
  

	 	(a)	the proposed Transfer Date specified in the Transfer Certificate; and 

  

	 	(b)	the date on which the Agent executes the Transfer Certificate. 

  

 - 9 - 

 “Unpaid Sum” means any sum due and payable but unpaid by an Obligor under the Finance
Documents. 
  
 “Utilisation” means a utilisation
of the Facility. 
  
 “Utilisation Date” means
the date of a Utilisation, being the date on which a Loan is to be made. 
  
 “Utilisation Request” means a notice substantially in the form set out in Schedule 3 (Utilisation Request). 
  
 “VAT” means value added tax as provided for in the Value Added Tax Act 1994 and any other tax of a similar
nature. 
  
 “WAFS” means the worldwide available
for sale system or such successor system as the Group shall implement for the purpose of monitoring Uncommitted Inventory (as defined in clause 21 (Financial Covenants)). 
  
 “Wool Group Companies” means the companies specified in Schedule 10 (Wool Group Companies) and each
is a “Wool Group Company”. 
  

	1.2	Construction 

  

	 	(a)	Unless a contrary indication appears, any reference in this Agreement to: 

  

	 	(i)	the “Agent”, the “Arranger”, any “Finance Party”, any “Lender”, any “Obligor” or any
“Party” shall be construed so as to include its successors in title, permitted assigns and permitted transferees. 

  

	 	(ii)	“assets” includes present and future properties, revenues and rights of every description; 

  

	 	(iii)	a “Finance Document” or any other agreement or instrument is a reference to that Finance Document or other agreement or instrument as amended or novated;

  

	 	(iv)	“indebtedness” includes any obligation (whether incurred as principal or as surety) for the payment or repayment of money, whether present or future, actual or
contingent; 

  

	 	(v)	a “person” includes any person, firm, company, corporation, government, state or agency of a state or any association, trust or partnership (whether or not having
separate legal personality) or two or more of the foregoing; 

  

	 	(vi)	a “regulation” includes any regulation, rule, official directive, request or guideline (whether or not having the force of law) of any governmental,
intergovernmental or supranational body, agency, department or regulatory, self-regulatory or other authority or organisation; 

  

	 	(vii)	a provision of law is a reference to that provision as amended or re-enacted; and 

  

	 	(viii)	a time of day is a reference to London time. 

  

	 	(b)	Section, Clause and Schedule headings are for ease of reference only. 

  

	 	(c)	Unless a contrary indication appears, a term used in any other Finance Document or in any notice given under or in connection with any Finance Document has the same meaning in that
Finance Document or notice as in this Agreement. 

  

 - 10 - 

	 	(d)	Any reference in this Agreement to any person shall, when construing any provision for the purposes of VAT (where appropriate) be deemed, at any time when such person is a member of
a group for the purposes of sections 43 to 43C of the Value Added Tax Act 1994, to include a reference to the representative member of such group at such time. 

  

	 	(e)	A Default (other than an Event of Default) is “continuing” if it has not been remedied or waived and an Event of Default is “continuing” if it has
not been waived. 

  

	1.3	Third party rights 

  
 A person who is not a party to this Agreement has no right under the Contracts (Rights of Third Parties) Act 1999 to enforce or enjoy the benefit of any
term of this Agreement. 
  

 - 11 - 

 SECTION 2 
  
 THE FACILITY 
  

	2.	THE FACILITY 

  

	2.1	The Facility 

  
 Subject to the terms of this Agreement, the Lenders make available to the Borrowers a dollar revolving loan facility in an aggregate amount equal to the
Total Commitments, provided that the aggregate principal amount of the Loans borrowed by SCTCI shall not exceed $50,000,000 at any time (or the equivalent in the Optional Currency). 
  

	2.2	Finance Parties’ rights and obligations 

  

	 	(a)	The obligations of each Finance Party under the Finance Documents are several. Failure by a Finance Party to perform its obligations under the Finance Documents does not affect the
obligations of any other Party under the Finance Documents. No Finance Party is responsible for the obligations of any other Finance Party under the Finance Documents. 

  

	 	(b)	The rights of each Finance Party under or in connection with the Finance Documents are separate and independent rights and any debt arising under the Finance Documents to a Finance
Party from an Obligor shall be a separate and independent debt. 

  

	 	(c)	A Finance Party may, except as otherwise stated in the Finance Documents, separately enforce its rights under the Finance Documents. 

  

	3.	PURPOSE 

  

	3.1	Purpose 

  
 Each Borrower shall apply all amounts borrowed by it under the Facility: 
  

	 	(a)	in respect of the First Utilisation, to refinance existing borrowings under facilities which are subject to the terms of the MFA; and 

  

	 	(b)	in respect of subsequent Utilisations, to finance the purchase, processing and/or sale of tobacco by Tobacco Group Companies. 

  

	3.2	Monitoring 

  
 No Finance Party is bound under this Agreement to monitor or verify the application of any amount borrowed pursuant to this Agreement. 
  

	4.	CONDITIONS OF UTILISATION 

  

	4.1	Initial conditions precedent 

  
 No Borrower may deliver a Utilisation Request unless the Agent has received all of the documents and other evidence listed in Schedule 2 (Conditions
precedent) in form and substance satisfactory to the Agent. The Agent shall notify the Obligors and the Lenders promptly upon being so satisfied. 
  

	4.2	Further conditions precedent 

  
 The Lenders will only be obliged to comply with Clause 5.4 (Lenders’ participation) if on the date of the Utilisation Request and on the
proposed Utilisation Date: 
  

	 	(a)	in the case of a Rollover Loan, no Event of Default is continuing or would result from the proposed Loan and, in the case of any other Loan, no Default is continuing or would result
from the proposed Loan; and 

  

 - 12 - 

	 	(b)	the Repeating Representations to be made by each Obligor are true in all material respects. 

  

	4.3	Maximum number of Loans 

  
 A Borrower may not deliver a Utilisation Request if as a result of the proposed Utilisation 11 or more Loans would be outstanding under this Agreement.

  

 - 13 - 

 SECTION 3 
  
 UTILISATION 
  

	5.	UTILISATION 

  

	5.1	Delivery of a Utilisation Request 

  
 A Borrower may utilise the Facility by delivery to the Agent of a duly completed Utilisation Request not later than the Specified Time. 
  

	5.2	Completion of a Utilisation Request 

  

	 	(a)	Each Utilisation Request is irrevocable and will not be regarded as having been duly completed unless: 

  

	 	(i)	the proposed Utilisation Date is a Business Day within the Availability Period; 

  

	 	(ii)	the currency and amount of the Utilisation comply with Clause 5.3 (Currency and amount); and 

  

	 	(iii)	the proposed Interest Period complies with Clause 10 (Interest Periods). 

  

	 	(b)	Only one Loan may be requested in each Utilisation Request. 

  

	5.3	Currency and amount 

  

	 	(a)	The currency specified in a Utilisation Request must be the Base Currency or the Optional Currency. 

  

	 	(b)	The amount of the proposed Loan must be: 

  

	 	(i)	if the currency selected is the Base Currency, a minimum of $5,000,000 or, if less, the Available Facility and a multiple of $1,000,000; 

  

	 	(ii)	if the currency selected is the Optional Currency, a minimum of €5,000,000 or, if less, the Available Facility and a multiple of €1,000,000, and 

 

	 	(iii)	in any event such that its Base Currency Amount is less than or equal to the Available Facility. 

  

	5.4	Lenders’ participation 

  

	 	(a)	If the conditions set out in this Agreement have been met, each Lender shall make its participation in each Loan available by the Utilisation Date through its Facility Office.

  

	 	(b)	The amount of each Lender’s participation in each Loan will be equal to the proportion borne by its Available Commitment to the Available Facility immediately prior to making
the Loan. 

  

	 	(c)	The Agent shall notify each Lender of the amount of each Loan and the amount of its participation in that Loan by the Specified Time. 

  

	6.	OPTIONAL CURRENCIES 

  

	6.1	Selection of currency 

  
 A Borrower shall select the currency of a Loan in a Utilisation Request. 
  

 - 14 - 

	6.2	Unavailability of a currency 

  
 If before the Specified Time on any Quotation Day: 
  

	 	(a)	a Lender notifies the Agent that the Optional Currency requested is not readily available to it in the amount required; or 

  

	 	(b)	a Lender notifies the Agent that compliance with its obligation to participate in a Loan in the proposed Optional Currency would contravene a law or regulation applicable to it,

  
 the Agent will give notice to the relevant
Borrower to that effect by the Specified Time on that day. In this event, any Lender that gives notice pursuant to this Clause 6.2 will be required to participate in the Loan in the Base Currency (in an amount equal to that Lender’s proportion
of the Base Currency Amount or, in respect of a Rollover Loan, an amount equal to that Lender’s proportion of the Base Currency Amount of the maturing Loan that is due to be made) and its participation will be treated as a separate Loan
denominated in the Base Currency during that Interest Period. 
  

	6.3	Participation in a Loan 

  
 Each Lender’s participation in a Loan will be determined in accordance with paragraph (b) of Clause 5.4 (Lenders’ participation).

  

 - 15 - 

 SECTION 4 
  
 REPAYMENT, PREPAYMENT AND CANCELLATION 
  

	7.	REPAYMENT 

  

	7.1	Repayment of Loans 

  
 Each Borrower which has drawn a Loan shall repay that Loan on the last day of its Interest Period. 
  

	8.	PREPAYMENT AND CANCELLATION 

  

	8.1	Illegality 

  
 If it becomes unlawful in any applicable jurisdiction for a Lender to perform any of its obligations as contemplated by this Agreement or to fund or
maintain its participation in any Loan: 
  

	 	(a)	that Lender shall promptly notify the Agent upon becoming aware of that event; 

  

	 	(b)	upon the Agent notifying the Obligors, the Commitment of that Lender will be immediately cancelled; and 

  

	 	(c)	each Borrower shall repay that Lender’s participation in the Loans made to that Borrower on the last day of the Interest Period for each Loan occurring after the Agent has
notified the Obligors or, if earlier, the date specified by the Lender in the notice delivered to the Agent (being no earlier than the last day of any applicable grace period permitted by law). 

  

	8.2	Change of control 

  

	 	(a)	If any person or group of persons acting in concert gains control of the Principal Guarantor: 

  

	 	(i)	the Principal Guarantor shall promptly notify the Agent upon becoming aware of that event; 

  

	 	(ii)	if the Majority Lenders so require, the Agent shall, by not less than 5 days notice to the Principal Guarantor, cancel the Facility and declare all outstanding Loans, together with
accrued interest, and all other amounts accrued under the Finance Documents immediately due and payable, whereupon the Facility will be cancelled and all such outstanding amounts will become immediately due and payable. 

  

	 	(b)	For the purpose of paragraph (a) above “control” means the acquisition of more than 30 per cent of the equity share capital (as defined in section 744 of the
Companies Act 1985) of the Principal Guarantor) or the acquisition of more than 30 per cent. of the voting rights attributable to any class of share capital of the Principal Guarantor. 

  

	 	(c)	For the purpose of paragraph (a) above “acting in concert” shall have the same meaning as in the City Guide on Takeovers and Mergers. 

  

	8.3	Voluntary cancellation 

  
 The Borrowers may, if they give the Agent not less than 10 Business Days’ (or such shorter period as the Majority Lenders may agree) prior notice,
cancel the whole or any part (being a minimum amount of $10,000,000) of the Available Facility. Any cancellation under this Clause 8.3 shall reduce the Commitments of the Lenders rateably. 
  

 - 16 - 

	8.4	Right of repayment and cancellation in relation to a single Lender 

  

	 	(a)	If: 

  

	 	(i)	any sum payable to any Lender by an Obligor is required to be increased under paragraph (c) of Clause 13.2 (Tax gross-up); or 

  

	 	(ii)	any Lender claims indemnification from the Principal Guarantor under Clause 13.3 (Tax indemnity) or Clause 14.1 (Increased costs); or 

  

	 	(iii)	any Lender notifies the Agent of its Additional Cost Rate under paragraph 3 of Schedule 4 (Mandatory Cost formulae), 

  
 the Borrowers may, whilst (in the case of paragraphs (i) and (ii) above) the
circumstance giving rise to the requirement or indemnification continues or (in the case of paragraph (iii) above) that Additional Cost Rate is greater than zero, give the Agent notice of cancellation of the Commitment of that Lender and its
intention to procure the repayment of that Lender’s participation in the Loans. 
  

	 	(b)	On receipt of a notice referred to in paragraph (a) above, the Commitment of that Lender shall immediately be reduced to zero. 

  

	 	(c)	On the last day of each Interest Period which ends after the Borrowers have given notice under paragraph (a) above (or, if earlier, the date specified by the Borrowers in that
notice), each Borrower to which a Loan is outstanding shall repay that Lender’s participation in that Loan. 

  

	8.5	Voluntary Prepayment of Loans 

  
 The Borrower to which a Loan has been made may, if it gives the Agent not less than ten Business Days’ (or such shorter period as the Majority
Lenders may agree) prior notice, prepay the whole or any part of a Loan having an Interest Period in excess of one Month (but if in part, being an amount that reduces the amount of the Loan by a minimum amount of $10,000,000). 
  

	8.6	Restrictions 

  

	 	(a)	Any notice of cancellation or prepayment given by any Party under this Clause 8 shall be irrevocable and, unless a contrary indication appears in this Agreement, shall specify the
date or dates upon which the relevant cancellation or prepayment is to be made and the amount of that cancellation or prepayment. 

  

	 	(b)	Any prepayment under this Agreement shall be made together with accrued interest on the amount prepaid and, subject to any Break Costs, without premium or penalty.

  

	 	(c)	Unless a contrary indication appears in this Agreement, any part of the Facility which is prepaid may be reborrowed in accordance with the terms of this Agreement.

  

	 	(d)	The Borrowers shall not repay or prepay all or any part of the Loans or cancel all or any part of the Commitments except at the times and in the manner expressly provided for in
this Agreement. 

  

	 	(e)	No amount of the Total Commitments cancelled under this Agreement may be subsequently reinstated. 

  

 - 17 - 

	 	(f)	If the Agent receives a notice under this Clause 8 it shall promptly forward a copy of that notice to either the Principal Guarantor or the affected Lender, as appropriate.

  

 - 18 - 

 SECTION 5 
  
 COSTS OF UTILISATION 
  

	9.	INTEREST 

  

	9.1	Calculation of interest 

  
 The rate of interest on each Loan for each Interest Period is the percentage rate per annum which is the aggregate of the applicable: 
  

	 	(a)	Margin (determined in accordance with clause 9.5 (Margin ratio) below); 

  

	 	(b)	LIBOR; and 

  

	 	(c)	Mandatory Cost, if any. 

  

	9.2	Payment of interest 

  
 The Borrower to which a Loan has been made shall pay accrued interest on that Loan on the last day of each Interest Period (and, if the Interest Period is
longer than six Months, on the dates falling at six monthly intervals after the first day of the Interest Period). 
  

	9.3	Default interest 

  

	 	(a)	If an Obligor fails to pay any amount payable by it under a Finance Document on its due date, interest shall accrue on the overdue amount from the due date up to the date of actual
payment (both before and after judgment) at a rate which, subject to paragraph (b) below is 2 per cent higher than the rate which would have been payable if the overdue amount had, during the period of non-payment, constituted a Loan in the currency
of the overdue amount for successive Interest Periods, each of a duration selected by the Agent (acting reasonably). Any interest accruing under this Clause 9.3 shall be immediately payable by the Obligor on demand by the Agent.

  

	 	(b)	If any overdue amount consists of all or part of a Loan which became due on a day which was not the last day of an Interest Period relating to that Loan: 

 

	 	(i)	the first Interest Period for that overdue amount shall have a duration equal to the unexpired portion of the current Interest Period relating to that Loan; and

  

	 	(ii)	the rate of interest applying to the overdue amount during that first Interest Period shall be 2 per cent. higher than the rate which would have applied if the overdue amount had
not become due. 

  

	 	(c)	Default interest (if unpaid) arising on an overdue amount will be compounded with the overdue amount at the end of each Interest Period applicable to that overdue amount but will
remain immediately due and payable. 

  

	9.4	Notification of rates of interest 

  
 The Agent shall promptly notify the Lenders and the relevant Borrower of the determination of a rate of interest under this Agreement. 
  

	9.5	Margin Ratio 

  

	 	(a)	Subject to paragraphs (b) and (d) below, the Margin will be determined by reference to the table below and the information set out in the relevant Compliance Certificate.

  

 - 19 - 

			
	 Consolidated Interest Coverage EBITDA :
 Consolidated Interest Expense (the “Margin Ratio”)

	  	Margin (% per annum)

	 Less than 3.0:1
	  	2.125%
		
	 Equal to or greater than 3.0:1 up to and including 6.0:1
	  	2%
		
	 Greater than 6.0:1
	  	1.875%

  

	 	(b)	The Margin Ratio will be tested first on the date on which the Compliance Certificate is delivered under this Agreement in accordance with clause 20.2 (Compliance
Certificate) in respect of the audited consolidated financial statements of the Group for the 12 month period ending on 31 March 2005 and thereafter calculated semi-annually on a rolling 12 months basis by reference to the four most recent
Compliance Certificates delivered pursuant to clause 20.2 (Compliance Certificate). 

  

	 	(c)	Any change in the Margin will take effect for all purposes under this Agreement from the date falling two Business Days after the receipt by the Agent of a Compliance Certificate.

  

	 	(d)	Until the first anniversary of the date of this Agreement, the applicable Margin shall be 2 per cent. per annum. 

  

	 	(e)	If at the time a decrease in the Margin is to take effect a Default is continuing, such decrease shall not take effect at that time but such decrease shall take effect (if
applicable) from the date such Default ceases to be continuing. For the avoidance of doubt, nothing in this clause 9.5 shall affect in any way the obligation of the Obligors under clause 21.1. 

  

	10.	INTEREST PERIODS 

  

	10.1	Selection of Interest Periods 

  

	 	(a)	A Borrower may select an Interest Period for a Loan in the Utilisation Request for that Loan. 

  

	 	(b)	Subject to this Clause 10, a Borrower may select an Interest Period of one week or 1, 2, 3, or 6 Months or any other period agreed between a Borrower and the Agent (acting on the
instructions of all the Lenders). 

  

	 	(c)	An Interest Period for a Loan shall not extend beyond the Termination Date applicable to that Borrower. 

  

	 	(d)	Each Interest Period for a Loan shall start on the Utilisation Date. 

  

	 	(e)	A Loan has one Interest Period only. 

  

	10.2	Non-Business Days 

  
 If an Interest Period would otherwise end on a day which is not a Business Day, that Interest Period will instead end on the next Business Day in that
calendar month (if there is one) or the preceding Business Day (if there is not). 
  

 - 20 - 

	11.	CHANGES TO THE CALCULATION OF INTEREST 

  

	11.1	Absence of quotations 

  
 Subject to Clause 11.2 (Market disruption), if LIBOR is to be determined by reference to the Reference Banks but a Reference Bank does not supply a
quotation by the Specified Time on the Quotation Day, the applicable LIBOR shall be determined on the basis of the quotations of the remaining Reference Banks. 
  

	11.2	Market disruption 

  

	 	(a)	If a Market Disruption Event occurs in relation to a Loan for any Interest Period, then the rate of interest on each Lender’s share of that Loan for the Interest Period shall
be the rate per annum which is the sum of: 

  

	 	(i)	the Margin; 

  

	 	(ii)	the rate notified to the Agent by that Lender as soon as practicable and in any event before interest is due to be paid in respect of that Interest Period, to be that which
expresses as a percentage rate per annum the cost to that Lender of funding its participation in that Loan from whatever source it may reasonably select; and 

  

	 	(iii)	the Mandatory Cost, if any, applicable to that Lender’s participation in the Loan. 

  

	 	(b)	In this Agreement “Market Disruption Event” means: 

  

	 	(i)	at or about noon on the Quotation Day for the relevant Interest Period the Screen Rate is not available and none or only one of the Reference Banks supplies a rate to the Agent to
determine LIBOR for dollars for the relevant Interest Period; or 

  

	 	(ii)	before close of business in London on the Quotation Day for the relevant Interest Period, the Agent receives notifications from a Lender or Lenders (whose participations in a Loan
exceed 33 per cent. of that Loan) that the cost to it or them of obtaining matching deposits in the Relevant Interbank Market would be in excess of LIBOR. 

  

	11.3	Alternative basis of interest or funding 

  

	 	(a)	If a Market Disruption Event occurs and the Agent or any Borrower so requires, the Agent and the Borrowers shall enter into negotiations (for a period of not more than thirty days)
with a view to agreeing a substitute basis for determining the rate of interest. 

  

	 	(b)	Any alternative basis agreed pursuant to paragraph (a) above shall, with the prior consent of all the Lenders and the Obligors, be binding on all Parties. 

 

	11.4	Break Costs 

  

	 	(a)	Each Borrower shall, within three Business Days of demand by a Finance Party, pay to that Finance Party its Break Costs attributable to all or any part of a Loan or Unpaid Sum being
paid by that Borrower on a day other than the last day of an Interest Period for that Loan or Unpaid Sum. 

  

	 	(b)	Each Lender shall, as soon as reasonably practicable after a demand by the Agent, provide a certificate confirming the amount of its Break Costs for any Interest Period in which
they accrue. 

  

 - 21 - 

	12.	FEES 

  

	12.1	Commitment fee 

  

	 	(a)	SCTCI shall pay to the Agent (for the account of each Lender) a commitment fee in the Base Currency in respect of the unutilised and uncancelled portion of that Lender’s
Available Commitment (its “Unutilised Commitment”) for the Availability Period. 

  

	 	(b)	The commitment fee shall be payable at the rate of 0.5 per cent per annum on each Lender’s Unutilised Commitment during the first 12 months following the date of this Agreement
and thereafter at the rate of 0.75 per cent per annum on each Lender’s Unutilised Commitment. 

  

	 	(c)	The accrued commitment fee is payable on the last day of each successive period of three Months which ends during the Availability Period and on the last day of the Availability
Period and, if cancelled in full, on the cancelled amount of the relevant Lender’s Commitment at the time the cancellation is effective. 

  

	12.2	Arrangement fee 

  
 The Obligors shall pay to the Agent, for the account of the Arranger, an arrangement fee in the amount and at the times agreed in a Fee Letter.

  

	12.3	Agency fee 

  
 The Obligors shall pay to the Agent (for its own account) an agency fee in the amount and at the times agreed in a Fee Letter. 
  

 - 22 - 

 SECTION 6 
  
 ADDITIONAL PAYMENT OBLIGATIONS 
  

	13.	TAX GROSS UP AND INDEMNITIES 

  

	13.1	Definitions 

  

	 	(a)	In this Agreement: 

  
 “Protected Party” means a Finance Party which is or will be subject to any liability, or required to make any payment, for or on account
of Tax in relation to a sum received or receivable (or any sum deemed for the purposes of Tax to be received or receivable) under a Finance Document. 
  

	 	(b)	“Qualifying Lender” means a Lender which (a) is beneficially entitled to interest payable to that Lender in respect of an advance under a Finance Document, and (b)
has executed and delivered to the Principal Guarantor a form W8-BEN with respect to exemption from United States withholding tax on payments by the Borrowers pursuant to this Agreement and (c) which is: 

  

	 	(i)	a Lender: 

  

	 	(A)	which is a bank (as defined for the purpose of section 349 of the Taxes Act) making an advance under a Finance Document; or 

  

	 	(B)	in respect of an advance made under a Finance Document by a person that was a bank (as defined for the purpose of section 349 of the Taxes Act) at the time that that advance was
made, 

  
 and which is within the charge to United
Kingdom corporation tax as respects any payments of interest made in respect of that advance; or 
  

	 	(ii)	a Lender which is: 

  

	 	(A)	a company resident in the United Kingdom for United Kingdom tax purposes; or 

  

	 	(B)	a partnership each member of which is a company resident in the United Kingdom for United Kingdom tax purposes; or 

  

	 	(C)	a company not so resident in the United Kingdom which carries on a trade in the United Kingdom through a branch or agency and which brings into account interest payable in respect
of that advance in computing its chargeable profits (within the meaning given by section 11(2) of the Taxes Act); or 

  

	 	(iii)	a Treaty Lender; 

  
 “Tax Confirmation” means a confirmation by a Lender that the person beneficially entitled to interest payable to that Lender in respect
of an advance under a Finance Document is either: 
  

	 	(i)	a company resident in the United Kingdom, or a partnership each member of which is a company resident in the United Kingdom, for United Kingdom tax purposes; or

  

	 	(ii)	 a company not so resident in the United Kingdom which carries on a trade in the United Kingdom through a branch or agency and that interest payable in respect of
that advance falls to be brought into account in 

  

 - 23 - 

	 	 
computing the chargeable profits of that company for the purposes of section 11(2) of the Taxes Act. 

  
 “Tax Credit” means a credit against, relief or remission
for, or repayment of any Tax. 
  
 “Tax
Deduction” means a deduction or withholding for or on account of Tax from a payment under a Finance Document. 
  
 “Tax Payment” means either the increase in a payment made by an Obligor to a Finance Party under Clause 13.2 (Tax gross-up) or a
payment under Clause 13.3 (Tax indemnity). 
  
 “Treaty Lender” means a Lender which: 
  

	 	(i)	is treated as a resident of a Treaty State for the purposes of the Treaty; 

  

	 	(ii)	does not carry on a business in the United Kingdom through a permanent establishment with which that Lender’s participation in the Loan is effectively connected; and

  

	 	(iii)	is entitled to the benefit of the interest article in the applicable double taxation agreement. 

  
 “Treaty State” means a jurisdiction having a double taxation agreement (a “Treaty”) with
the United Kingdom which makes provision for full exemption from tax imposed by the United Kingdom on interest. 
  
 “UK Non-Bank Lender” means: 
  

	 	(i)	where a Lender becomes a Party on the day on which this Agreement is entered into, a Lender listed in Part III of Schedule 1 (The Original Parties); and

  

	 	(ii)	where a Lender becomes a Party to this Agreement after the day on which this Agreement is entered into, a Lender which gives a Tax Confirmation in the Transfer Certificate which it
executes on becoming a Party to this Agreement. 

  

	 	(c)	Unless a contrary indication appears, in this Clause 13 a reference to “determines” or “determined” means a determination made in the
absolute discretion of the person making the determination. 

  

	13.2	Tax gross-up 

  

	 	(a)	Each Obligor shall make all payments to be made by it without any Tax Deduction, unless a Tax Deduction is required by law. 

  

	 	(b)	The Obligors shall promptly upon any Obligor becoming aware that an Obligor must make a Tax Deduction (or that there is any change in the rate or the basis of a Tax Deduction)
notify the Agent accordingly. Similarly, a Lender shall notify the Agent on becoming so aware in respect of a payment payable to that Lender. If the Agent receives such notification from a Lender it shall notify the Principal Guarantor and that
Obligor. 

  

	 	(c)	If a Tax Deduction is required by law to be made by an Obligor, the amount of the payment due from that Obligor shall be increased to an amount which (after making any Tax
Deduction) leaves an amount equal to the payment which would have been due if no Tax Deduction had been required. 

  

 - 24 - 

	 	(d)	An Obligor is not required to make an increased payment to a Lender under paragraph (c) above for a Tax Deduction in respect of tax imposed by the United Kingdom from a payment of
interest on a Loan, if on the date on which the payment falls due: 

  

	 	(i)	the payment could have been made to the relevant Lender without a Tax Deduction if it was a Qualifying Lender, but on that date that Lender is not or has ceased to be a Qualifying
Lender other than as a result of any change after the date it became a Lender under this Agreement in (or in the interpretation, administration, or application of) any law or Treaty, or any published practice or concession of any relevant taxing
authority; or 

  

	 	(ii)	(A) the relevant Lender is a UK Non-Bank Lender, or would have been a UK Non-Bank Lender were it not for any change after the date it became a Lender under this Agreement in (or in
the interpretation, administration, or application of) any law or Treaty, or any published practice or concession of any relevant taxing authority; and  

  

	 	(B)	the Board of the Inland Revenue has given (and not revoked) a direction under section 349C of the Taxes Act (as that provision has effect on the date on which the relevant Lender
became a party to this Agreement) which relates to that payment and that Obligor has notified that UK Non-Bank Lender of the precise terms of that notice; 

  

	 	(iii)	the relevant Lender is a Treaty Lender and the Obligor making the payment is able to demonstrate that the payment could have been made to the Lender without the Tax Deduction had
that Lender complied with its obligations under paragraph (g) below. 

  

	 	(e)	If an Obligor is required to make a Tax Deduction, that Obligor shall make that Tax Deduction and any payment required in connection with that Tax Deduction within the time allowed
and in the minimum amount required by law. 

  

	 	(f)	Within ninety days of making either a Tax Deduction or any payment required in connection with that Tax Deduction, the Obligor making that Tax Deduction shall deliver to the Agent
for the Finance Party entitled to the payment evidence reasonably satisfactory to that Finance Party that the Tax Deduction has been made or (as applicable) any appropriate payment paid to the relevant taxing authority. 

  

	 	(g)	A Treaty Lender and each Obligor which makes a payment to which that Treaty Lender is entitled shall co-operate in completing any procedural formalities necessary for that Obligor
to obtain authorisation to make that payment without a Tax Deduction. 

  

	 	(h)	A UK Non-Bank Lender which becomes a Party on the day on which this Agreement is entered into gives a Tax Confirmation to the Principal Guarantor by entering into this Agreement.

  

	 	(i)	A UK Non-Bank Lender shall promptly notify the Principal Guarantor and the Agent if there is any change in the position from that set out in the Tax Confirmation.

  

	 	(j)	 The Original Lenders hereby confirm that they are Qualifying Lenders as at the date of this Agreement. Each of the Original Lenders which has not already executed
forms W8-BEN with respect to exemption from United States 

  

 - 25 - 

	 	 
withholding tax on payments by the Borrowers pursuant to this Agreement shall execute such a form and deliver it to the Principal Guarantor prior to the
first date on which the Facility becomes available for drawing. 

  

	13.3	Tax indemnity 

  

	 	(a)	The Obligors shall (within three Business Days of demand by the Agent) pay to a Protected Party an amount equal to the loss, liability or cost which that Protected Party determines
will be or has been (directly or indirectly) suffered for or on account of Tax by that Protected Party in respect of a Finance Document. 

  

	 	(b)	Paragraph (a) above shall not apply: 

  

	 	(i)	with respect to any Tax assessed on a Finance Party: 

  

	 	(A)	under the law of the jurisdiction in which that Finance Party is incorporated or, if different, the jurisdiction (or jurisdictions) in which that Finance Party is treated as
resident for tax purposes; or 

  

	 	(B)	under the law of the jurisdiction in which that Finance Party’s Facility Office is located in respect of amounts received or receivable in that jurisdiction,

  
 if that Tax is imposed on or calculated by
reference to the net income received or receivable (but not any sum deemed to be received or receivable) by that Finance Party; or 
  

	 	(ii)	to the extent a loss, liability or cost: 

  

	 	(A)	is compensated for by an increased payment under Clause 13.2 (Tax gross-up); or 

  

	 	(B)	would have been compensated for by an increased payment under Clause 13.2 (Tax gross-up) but was not so compensated solely because one of the exclusions in paragraph (d) of
Clause 13.2 (Tax gross-up) applied. 

  

	 	(c)	A Protected Party making, or intending to make a claim under paragraph (a) above shall promptly notify the Agent of the event which will give, or has given, rise to the claim,
following which the Agent shall notify the Obligors. 

  

	 	(d)	A Protected Party shall, on receiving a payment from an Obligor under this Clause 13.3, notify the Agent. 

  

	13.4	Tax Credit 

  
 If an Obligor makes a Tax Payment and the relevant Finance Party determines that: 
  

	 	(a)	a Tax Credit is attributable either to an increased payment of which that Tax Payment forms part, or to that Tax Payment; and 

  

	 	(b)	that Finance Party has obtained, utilised and retained that Tax Credit, 

  
 the Finance Party shall pay an amount to the Obligor which that Finance Party determines will leave it (after that payment) in the same after-Tax position
as it would have been in had the Tax Payment not been required to be made by the Obligor. 
  

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	13.5	Stamp taxes 

  
 The Borrowers shall pay and, within three Business Days of demand, indemnify each Finance Party against any cost, loss or liability that Finance Party
incurs in relation to all stamp duty, registration and other similar Taxes payable in respect of any Finance Document. 
  

	13.6	Value added tax 

  

	 	(a)	All consideration expressed to be payable under a Finance Document by any Party to a Finance Party shall be deemed to be exclusive of any VAT. If VAT is chargeable on any supply
made by any Finance Party to any Party in connection with a Finance Document, that Party shall pay to the Finance Party (in addition to and at the same time as paying the consideration) an amount equal to the amount of the VAT.

  

	 	(b)	Where a Finance Document requires any Party to reimburse a Finance Party for any costs or expenses, that Party shall also at the same time pay and indemnify the Finance Party
against all VAT incurred by the Finance Party in respect of the costs or expenses to the extent that the Finance Party reasonably determines that it is not entitled to credit or repayment of the VAT. 

  

	14.	INCREASED COSTS 

  

	14.1	Increased costs 

  

	 	(a)	Subject to Clause 14.3 (Exceptions) the Borrowers shall, within three Business Days of a demand by the Agent, pay for the account of a Finance Party the amount of any
Increased Costs incurred by that Finance Party or any of its Affiliates as a result of (i) the introduction of or any change in (or in the interpretation, administration or application of) any law or regulation or (ii) compliance with any law or
regulation made after the date of this Agreement. 

  

	 	(b)	In this Agreement “Increased Costs” means: 

  

	 	(i)	a reduction in the rate of return from the Facility or on a Finance Party’s (or its Affiliate’s) overall capital; 

  

	 	(ii)	an additional or increased cost; or 

  

	 	(iii)	a reduction of any amount due and payable under any Finance Document, 

  
 which is incurred or suffered by a Finance Party or any of its Affiliates to the extent that it is attributable to that Finance Party having entered into
its Commitment or funding or performing its obligations under any Finance Document. 
  

	14.2	Increased cost claims 

  

	 	(a)	A Finance Party intending to make a claim pursuant to Clause 14.1 (Increased costs) shall notify the Agent of the event giving rise to the claim, following which the Agent
shall promptly notify the Principal Guarantor. 

  

	 	(b)	Each Finance Party shall, as soon as practicable after a demand by the Agent, provide a certificate confirming the amount of its Increased Costs. 

  

	14.3	Exceptions 

  

	 	(a)	Clause 14.1 (Increased costs) does not apply to the extent any Increased Cost is: 

  

	 	(i)	attributable to a Tax Deduction required by law to be made by an Obligor; 

  

 - 27 - 

	 	(ii)	compensated for by Clause (Tax indemnity) (or would have been compensated for under Clause 13.3 (Tax indemnity) but was not so compensated solely because any of the
exclusions in paragraph (b) of Clause 13.3 (Tax indemnity) applied); 

  

	 	(iii)	compensated for by the payment of the Mandatory Cost; or 

  

	 	(iv)	attributable to the wilful breach by the relevant Finance Party or its Affiliates of any law or regulation. 

  

	 	(b)	In this Clause 14.3, a reference to a “Tax Deduction” has the same meaning given to the term in Clause 1.1 (Definitions). 

  

	15.	OTHER INDEMNITIES 

  

	15.1	Currency indemnity 

  

	 	(a)	If any sum due from an Obligor under the Finance Documents (a “Sum”), or any order, judgment or award given or made in relation to a Sum, has to be converted from
the currency (the “First Currency”) in which that Sum is payable into another currency (the “Second Currency”) for the purpose of: 

  

	 	(i)	making or filing a claim or proof against that Obligor; 

  

	 	(ii)	obtaining or enforcing an order, judgment or award in relation to any litigation or arbitration proceedings, 

  
 that Obligor shall as an independent obligation, within three Business Days
of demand, indemnify each Finance Party to whom that Sum is due against any cost, loss or liability arising out of or as a result of the conversion including any discrepancy between (A) the rate of exchange used to convert that Sum from the First
Currency into the Second Currency and (B) the rate or rates of exchange available to that person at the time of its receipt of that Sum. 
  

	 	(b)	Each Obligor waives any right it may have in any jurisdiction to pay any amount under the Finance Documents in a currency or currency unit other than that in which it is expressed
to be payable. 

  

	15.2	Other indemnities 

  
 Each Obligor will, within three Business Days of demand, indemnify each Finance Party against any cost, loss or liability incurred by that Finance Party
as a result of: 
  

	 	(a)	the occurrence of any Event of Default; 

  

	 	(b)	a failure by an Obligor to pay any amount due under a Finance Document on its due date, including without limitation, any cost, loss or liability arising as a result of Clause 28
(Sharing among the Finance Parties); 

  

	 	(c)	funding, or making arrangements to fund, its participation in a Loan requested by a Borrower in a Utilisation Request but not made by reason of the operation of any one or more of
the provisions of this Agreement (other than by reason of default or negligence by that Finance Party alone); or 

  

	 	(d)	a Loan (or part of a Loan) not being prepaid in accordance with a notice of prepayment given by a Borrower or the Principal Guarantor. 

  

 - 28 - 

	15.3	Indemnity to the Agent 

  
 Each Obligor shall promptly indemnify the Agent against any cost, loss or liability incurred by the Agent (acting reasonably) as a result of: 

 

	 	(a)	investigating any event which it reasonably believes is a Default; or 

  

	 	(b)	acting or relying on any notice, request or instruction which it reasonably believes to be genuine, correct and appropriately authorised. 

  

	16.	MITIGATION BY THE LENDERS 

  

	16.1	Mitigation 

  

	 	(a)	Each Finance Party shall, in consultation with the Obligors, take all reasonable steps to mitigate any circumstances which arise and which would result in any amount becoming
payable under or pursuant to, or cancelled pursuant to, any of Clause 8.1 (Illegality), Clause 13 (Tax gross-up and indemnities), Clause 14 (Increased costs) or paragraph 3 of Schedule 4 (Mandatory Cost formulae)
including (but not limited to) transferring its rights and obligations under the Finance Documents to another Affiliate or Facility Office. 

  

	 	(b)	Paragraph (a) above does not in any way limit the obligations of any Obligor under the Finance Documents. 

  

	16.2	Limitation of liability 

  

	 	(a)	Each Obligor shall indemnify each Finance Party for all costs and expenses reasonably incurred by that Finance Party as a result of steps taken by it under Clause 16.1
(Mitigation). 

  

	 	(b)	A Finance Party is not obliged to take any steps under Clause 16.1 (Mitigation) if, in the opinion of that Finance Party (acting reasonably), to do so might be prejudicial to
it. 

  

	17.	COSTS AND EXPENSES 

  

	17.1	Transaction expenses 

  
 Each of the Obligors shall promptly on demand pay the Agent and the Arranger the amount of all costs and expenses (including legal fees) reasonably
incurred by any of them in connection with the negotiation, preparation, printing, execution and syndication of: 
  

	 	(a)	this Agreement and any other documents referred to in this Agreement; and 

  

	 	(b)	any other Finance Documents executed after the date of this Agreement. 

  

	17.2	Amendment costs 

  
 If (a) an Obligor requests an amendment, waiver or consent or (b) an amendment is required pursuant to Clause 29.9 (Change of currency), the
Obligors shall, within ten Business Days of demand, reimburse the Agent for the amount of all costs and expenses (including legal fees) reasonably incurred by the Agent in responding to, evaluating, negotiating or complying with that request or
requirement. 
  

	17.3	Enforcement costs 

  
 Each of the Obligors shall, within three Business Days of demand, pay to each Finance Party the amount of all costs and expenses (including legal fees)
incurred by that Finance Party in connection with the enforcement of, or the preservation of any rights under, any Finance Document. 
  

 - 29 - 

 SECTION 7 
  
 GUARANTEE 
  

	18.	GUARANTEE AND INDEMNITY 

  

	18.1	Guarantee and indemnity of SCTCI 

  
 SCTCI irrevocably and unconditionally: 
  

	 	(a)	guarantees to each Finance Party punctual performance by each of SCTCUK and TCLTC of all their respective obligations under the Finance Documents; 

  

	 	(b)	undertakes with each Finance Party that whenever SCTCUK and/or TCLTC does not pay any amount when due under or in connection with any Finance Document, SCTCI shall immediately on
first demand pay that amount as if it was the principal obligor; and 

  

	 	(c)	indemnifies each Finance Party immediately on first demand against any cost, loss or liability suffered by that Finance Party if any obligation guaranteed by it is or becomes
unenforceable, invalid or illegal. The amount of the cost, loss or liability shall be equal to the amount which that Finance Party would otherwise have been entitled to recover. 

  

	18.2	Guarantee and indemnity of SCTCUK and TCLTC 

  
 Each of SCTCUK and TCLTC irrevocably and unconditionally: 
  

	 	(a)	guarantees to each Finance Party punctual performance by the other of them of all that other’s obligations under the Finance Documents; 

  

	 	(b)	undertakes with each Finance Party that whenever the other of them does not pay any amount when due under or in connection with any Finance Document, it shall immediately on first
demand pay that amount as if it was the principal obligor; and 

  

	 	(c)	indemnifies each Finance Party immediately on first demand against any cost, loss or liability suffered by that Finance Party if any obligation guaranteed by it is or becomes
unenforceable, invalid or illegal. The amount of the cost, loss or liability shall be equal to the amount which that Finance Party would otherwise have been entitled to recover. 

  

	18.3	Guarantee and indemnity of the Principal Guarantor 

  
 The Principal Guarantor irrevocably and unconditionally: 
  

	 	(a)	guarantees to each Finance Party punctual performance by each Borrower of all that Borrower’s obligations under the Finance Documents; 

  

	 	(b)	undertakes with each Finance Party that whenever a Borrower does not pay any amount when due under or in connection with any Finance Document, the Principal Guarantor shall
immediately on first demand pay that amount as if it was the principal obligor; and 

  

	 	(c)	indemnifies each Finance Party immediately on first demand against any cost, loss or liability suffered by that Finance Party if any obligation guaranteed by it is or becomes
unenforceable, invalid or illegal. The amount of the cost, loss or liability shall be equal to the amount which that Finance Party would otherwise have been entitled to recover. 

  

 - 30 - 

	18.4	Continuing guarantee 

  
 The guarantees set out in subclauses 18.1, 18.2 and 18.3 above are continuing guarantees and will extend to the ultimate balance of sums payable by any
Obligor under the Finance Documents, regardless of any intermediate payment or discharge in whole or in part. For the avoidance of doubt, no amount shall be due under any guarantee from an Obligor under this clause 18 (in such capacity the
“paying Obligor”) in respect of a sum due from another Obligor (in such capacity the “Principal”) which sum represents a claim under the guarantee obligations of the Principal under this Clause 18 in respect of an amount owing by
the paying Obligor under any Finance Document. 
  

	18.5	Reinstatement 

  
 If any payment by an Obligor or any discharge given by a Finance Party (whether in respect of the obligations of any Obligor or any security for those
obligations or otherwise) is avoided or reduced as a result of insolvency or any similar event: 
  

	 	(a)	the liability of each Obligor shall continue as if the payment, discharge, avoidance or reduction had not occurred; and 

  

	 	(b)	each Finance Party shall be entitled to recover the value or amount of that security or payment from each Obligor, as if the payment, discharge, avoidance or reduction had not
occurred. 

  

	18.6	Waiver of defences 

  
 The obligations of each Guarantor under this Clause 18 will not be affected by an act, omission, matter or thing which, but for this Clause, would reduce,
release or prejudice any of its obligations under this Clause 18 (without limitation and whether or not known to it or any Finance Party) including: 
  

	 	(a)	any time, waiver or consent granted to, or composition with, any Obligor or other person; 

  

	 	(b)	the release of any other Obligor or any other person under the terms of any composition or arrangement with any creditor of any member of the Group; 

  

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

  

	 	(d)	any incapacity or lack of power, authority or legal personality of or dissolution or change in the members or status of an Obligor or any other person; 

  

	 	(e)	any amendment (however fundamental) or replacement of a Finance Document or any other document or security; 

  

	 	(f)	any unenforceability, illegality or invalidity of any obligation of any person under any Finance Document or any other document or security; 

  

	 	(g)	any insolvency or similar proceedings; 

  

	 	(h)	any defect in any provision of any Finance Document; 

  

	 	(i)	any absence or insufficiency of corporate resolutions relating to any Financial Indebtedness; 

  

 - 31 - 

	 	(j)	any defence based on lack of diligence by the Lenders in seeking recovery against the Borrowers and/or in the collection, protection and/or realisation upon any collateral securing
the amounts guaranteed under this clause 18 including without limitation, any defence under Sections 26-7 through to 26-9 of the North Carolina General Statutes; 

  

	 	(k)	any absence of licences or other authorisations or any factual or legal restrictions or limitations existing or introduced at any time after this date of this Agreement in any
Obligor’s jurisdiction of incorporation; or 

  

	 	(l)	any agreement made between the Agent and/or any Lender relating to any indebtedness under any Finance Document, including any extension of its term of payment and any rescheduling
or restructuring of any such indebtedness. 

  

	18.7	Immediate recourse 

  
 Each Guarantor waives any right it may have of first requiring any Finance Party (or any trustee or agent on its behalf) to proceed against or enforce any
other rights or security or claim payment from any person before claiming from that Guarantor under this Clause 18. This waiver applies irrespective of any law or any provision of a Finance Document to the contrary. 
  

	18.8	Appropriations 

  
 Until all amounts which may be or become payable by the Obligors under or in connection with the Finance Documents have been irrevocably paid in full,
each Finance Party (or any trustee or agent on its behalf) may: 
  

	 	(a)	refrain from applying or enforcing any other moneys, security or rights held or received by that Finance Party (or any trustee or agent on its behalf) in respect of those amounts,
or apply and enforce the same in such manner and order as it sees fit (whether against those amounts or otherwise) and no Guarantor shall be entitled to the benefit of the same; and 

  

	 	(b)	hold in an interest-bearing suspense account any moneys received from any Guarantor or on account of any Guarantor’s liability under this Clause 18. 

 

	18.9	Deferral of Guarantors’ rights 

  
 Until all amounts which may be or become payable by the Obligors under or in connection with the Finance Documents have been irrevocably paid in full and
unless the Agent otherwise directs, no Guarantor will exercise any rights which it may have by reason of performance by it of its obligations under the Finance Documents: 
  

	 	(a)	to be indemnified by an Obligor; 

  

	 	(b)	to claim any contribution from any other guarantor of any Obligor’s obligations under the Finance Documents; and/or 

  

	 	(c)	to take the benefit (in whole or in part and whether by way of subrogation or otherwise) of any rights of the Finance Parties under the Finance Documents or of any other guarantee
or security taken pursuant to, or in connection with, the Finance Documents by any Finance Party. 

  

	18.10	 Additional security 

  
 The guarantees in this clause 18 are in addition to and are not in any way prejudiced by any other guarantee or security now or subsequently held by any
Finance Party. Any sum falling within the ambit of this clause 18 which may not be recoverable from a Guarantor on the basis of its guarantee for any reason whatsoever shall nonetheless be recoverable from such Guarantor on the basis of a primary
obligation to each Lender to indemnify it against any loss incurred by it as a consequence of any Borrower failing to perform any payment obligation under any Finance Document. 
  

 - 32 - 

 SECTION 8 
  
 REPRESENTATIONS, UNDERTAKINGS AND EVENTS OF
DEFAULT 
  

	19.	REPRESENTATIONS 

  
 Each Obligor makes the representations and warranties set out in this Clause 19 to each Finance Party on the date of this Agreement. 
  

	19.1	Status 

  

	 	(a)	It is a corporation, duly incorporated and validly existing (and, in the case only of the Principal Guarantor and SCTCI, is in good standing) under the law of its jurisdiction of
incorporation. 

  

	 	(b)	It and each of its Subsidiaries has the power to own its assets and carry on its business as it is being conducted. 

  

	19.2	Binding obligations 

  
 The obligations expressed to be assumed by it in each Finance Document are, subject to any general principles of law limiting its obligations which are
specifically referred to in any legal opinion delivered pursuant to Clause 4 (Conditions of Utilisation) (the “Reservations”), legal, valid, binding and enforceable obligations. 
  

	19.3	Non-conflict with other obligations 

  
 The entry into and performance by it of, and the transactions contemplated by, the Finance Documents do not and will not conflict with: 
  

	 	(a)	any law or regulation applicable to it in any respect where the consequences of such conflict may have a Material Adverse Effect; 

  

	 	(b)	its or any of its Subsidiaries’ constitutional documents; or 

  

	 	(c)	any agreement or instrument binding upon it or any of its Subsidiaries or any of its or any of its Subsidiaries’ assets in any respect where such conflict may have a Material
Adverse Effect. 

  

	19.4	Power and authority 

  
 It has the power to enter into, perform and deliver, and has taken all necessary action to authorise its entry into, performance and delivery of, the
Finance Documents to which it is a party and the transactions contemplated by those Finance Documents. 
  

	19.5	Validity and admissibility in evidence 

  
 All Authorisations required or desirable: 
  

	 	(a)	to enable it lawfully to enter into, exercise its rights and comply with its obligations in the Finance Documents to which it is a party; or 

  

	 	(b)	to make the Finance Documents to which it is a party admissible in evidence in its jurisdiction of incorporation; or 

  

	 	(c)	to make its obligations under each of the Finance Documents legal, valid, binding and enforceable (subject to the Reservations). 

  
 have been obtained or effected and are in full force and effect. 

 

 - 33 - 

	19.6	Governing law and enforcement 

  

	 	(a)	Subject to the Reservations, the choice of English law as the governing law of the Finance Documents will be recognised and enforced in its jurisdiction of incorporation.

  

	 	(b)	Subject to the Reservations, any judgment obtained in England in relation to a Finance Document will be recognised and enforced in its jurisdiction of incorporation.

  

	19.7	Deduction of Tax 

  
 Subject to the Reservations, it is not required under the law of its jurisdiction of incorporation to make any deduction for or on account of Tax from any
payment it may make under any Finance Document. 
  

	19.8	No filing or stamp taxes 

  
 Under the law of its jurisdiction of incorporation it is not necessary that the Finance Documents be filed, recorded or enrolled with any court or other
authority in that jurisdiction or that any stamp, registration or similar tax be paid on or in relation to the Finance Documents or the transactions contemplated by the Finance Documents. 
  

	19.9	No default 

  

	 	(a)	No Event of Default is continuing or might reasonably be expected to result from the making of any Utilisation. 

  

	 	(b)	No other event or circumstance is outstanding which constitutes a default under any other agreement or instrument which is binding on it or any of its Subsidiaries or to which its
(or any of its Subsidiaries’) assets are subject which might have a Material Adverse Effect. 

  

	19.10	 Information 

  

	 	(a)	All factual information provided to the Lenders and Arrangers prior to the date of this Agreement for the purpose of this Agreement or enabling the Lenders and Arrangers to make a
credit assessment of the Group in connection with the Facility (the “Credit Information”) was true and accurate in all material respects as at the date it was provided or as at the date (if any) at which it was stated.

  

	 	(b)	The financial projections forming part of the Credit Information were prepared on the basis of recent historical information and on the basis of reasonable assumptions.

  

	 	(c)	Nothing has occurred or been omitted from the Credit Information and no information has been given or withheld that results in any of the Credit Information being untrue or
misleading in any material respect. 

  

	19.11	 Financial statements 

  

	 	(a)	Its Original Financial Statements were prepared in accordance with GAAP consistently applied. 

  

	 	(b)	Its Original Financial Statements fairly represent its financial condition and operations (consolidated in the case of the Principal Guarantor) during the relevant financial year.

  

 - 34 - 

	 	(c)	There has been no material adverse change in its business or financial condition (or the business or consolidated financial condition of the Group, in the case of the Principal
Guarantor) since 31 December 2003. 

  

	 	(d)	The most recent Financial Statements (including their notes) give a true and fair view of the state of affairs (or, in the case of management accounts, present with reasonable
accuracy the financial position) of the Tobacco Group or member of the Tobacco Group (as the case may be) at the date to which they were made up and have been prepared in accordance with GAAP consistently applied. In particular, the Financial
Statements: 

  

	 	(i)	make adequate provision for or disclose all material liabilities (actual, contingent or disputed including financial lease commitments, pension and Tax liabilities) and all material
capital commitments of the Tobacco Group or member of the Tobacco Group at such date; and 

  

	 	(ii)	do not consolidate or include the results of any associated company which is not a wholly owned Subsidiary of the Principal Guarantor. 

  

	19.12	 Pari passu ranking 

  
 Its payment obligations under the Finance Documents rank at least pari passu with the claims of all its other unsecured and unsubordinated creditors,
except for obligations mandatorily preferred by law applying to companies generally. 
  

	19.13	 No proceedings pending or threatened 

  
 No litigation, arbitration or administrative proceedings of or before any court, arbitral body or agency which, if adversely determined, might reasonably
be expected to have a Material Adverse Effect, other than as disclosed in the most recent filings to the Securities and Exchange Commission, have (to the best of its knowledge and belief) been started or threatened against it or any of its
Subsidiaries. 
  

	19.14	 Environmental Law 

  

	 	(a)	The operations of each of the Obligors and each of the other members of the Group comply with all Environmental Laws except where the failure so to comply might not reasonably be
expected to have a Material Adverse Effect or result in any liability to any Finance Party. 

  

	 	(b)	Each Obligor and each of the other members of the Group with a Facility Plant or operations in the United States of America have obtained all material environmental permits,
licenses and approvals necessary for their respective Facilities and operations; all such permits, licenses and approvals are in full force and effect, and the Principal Guarantor and each of the other members of the Group with a Facility Plant or
operations in the United States of America is in compliance with all terms and conditions of such permits, licenses and approvals except where the failure so to comply might not reasonably be expected to have a Material Adverse Effect or result in
any liability to any Finance Party. 

  

	 	(c)	 No Obligor and no other member of the Group with a Facility Plant or operations in the United States of America has in the last five years received (A) any written
notice or claim which remains unresolved to the effect that it is or may be liable to any Person as a result of the Release or threatened Release of any Hazardous Materials or (B) any letter or written request for information under Section 104 of
the Comprehensive Environmental Response, Compensation, and Liability Act (42 U.S.C. § 9604) or comparable state or foreign laws which remains unresolved, and to each Obligor’s knowledge, none of the Facilities in the United States of

  

 - 35 - 

	 	 
America and none of the operations of the Obligors or any of the other members of the Group with a Facility Plant or operations in the United States of
America is the subject of any Federal or state or foreign investigation evaluating whether any remedial action is needed to respond to a Release or threatened Release of any Hazardous Material at any Facility Plant or at any other location.

  

	 	(d)	None of the operations of any of the Obligors or any of the other members of the Group with a Facility Plant or operations in the United States of America is the subject of any
pending judicial or administrative proceeding alleging the violation of or liability under any Environmental Laws. 

  

	 	(e)	None of the Obligors and none of the other members of the Group with a Facilities Plant or operations in the United States of America, and none of the present or past Facility
Plants or operations of any of them, has received any outstanding written order from any governmental authority respecting (1) any Environmental Laws or (2) any Environmental Claims. 

  

	 	(f)	None of the Obligors and none of the other members of the Group with a Facility Plant or operations in the United States of America has any current obligation under Environmental
Laws to remediate any Release of any Hazardous Materials by any Obligor or any of such members of the Group except for remediations which could not reasonably be expected to have a Material Adverse Effect or result in any liability to any Finance
Party. 

  

	 	(g)	No Security in favour of any governmental authority for (1) any liability under Environmental Laws, or (2) damages arising from or costs incurred by such governmental authority in
response to a Release has been filed or attached to any Facility Plant of any of the Obligors or any of the other members of the Group with a Facility Plant or operations in the United States of America. 

  

	19.15	 Compliance with ERISA and Foreign Benefits Laws 

  

	 	(a)	Attached to this Agreement as Schedule 11 is a description of: 

  

	 	(i)	all of the Employee Benefit Plans which are or have been maintained or contributed to by any member of the ERISA Group, or any former member of the ERISA Group, currently or within
the last six preceding years under United States law; and 

  

	 	(ii)	maintained or contributed to by any Borrower under any applicable Foreign Benefits Law. 

  
 Each Employee Benefit Plan in the United States of America intended to qualify does so qualify under Section 401 of the Code
and any comparable provision of any applicable Foreign Benefits Law. No Employee Benefit Plan has been the subject of an audit or investigation by the Internal Revenue Service, the United States Department of Labour, the Pension Benefit Guaranty
Corporation or any other federal governmental entity with responsibility for the regulation and enforcement of ERISA, the Code, or other federal or state law governing employee benefits, or any applicable Foreign Benefits Agency or other taxation
authority of any jurisdiction outside the United States of America, and no written or verbal notice of any such audit or investigation has been received by any member of the ERISA Group. 
  

	 	(b)	 There is: (i) no accumulated funding deficiency (within the meaning of ERISA and the Code) with respect to any Employee Benefit Plan; (ii) no termination of any
Employee Benefit Plan or trust which could result in any material liability to the PBGC or any Foreign Benefits Agency; (iii) no “reportable event” (as that term is 

  

 - 36 - 

	 	 
defined in Section 4043 of ERISA) which could reasonably be expected to constitute grounds for termination of any Employee Benefit Plan or trust by the PBGC,
and no comparable event under applicable Foreign Benefits Law; (iv) no Prohibited Transaction with respect to an Employee Benefit Plan which, individually or in the aggregate, could reasonably be expected to result in any liability to the Borrower
or its Subsidiaries in an aggregate amount in excess of $1,000,000, and no comparable event under applicable Foreign Benefits Law; and (v) no breach of any fiduciary duties under Section 404 or 405 of ERISA or any applicable Foreign Benefits Law
which could result in any material liability to any Tobacco Group Company. 

  

	 	(c)	The Obligors and their Subsidiaries do not have any material liabilities with respect to welfare plans of any member of the ERISA Group save as disclosed in the Original Financial
Statements. 

  

	 	(d)	The Obligors and each of their Subsidiaries have complied with any and all Foreign Benefits Laws relating to all Employee Benefit Plans and no defaults or liabilities exist under
such plans that could reasonably be expected to apply to, or result in any liability (whether direct, contingent or otherwise) of the Borrower or any of its Subsidiaries. 

  

	 	(e)	None of the Obligors, any Subsidiary of the Obligors, any member of the ERISA Group or any Employee Benefit Plan is a party to any ongoing litigation or other proceeding relating
to, or seeking benefits under, any Employee Benefit Plan, and there are no Employee Benefit Plans that provide post-employment or post-retirement health benefits except as required by Code 4980B. 

  

	19.16	 Margin Stock 

  
 No Obligor is engaged, and no Obligor will engage, principally or as one of its important activities in the business, whether direct or incidental, of
purchasing or carrying “margin stock” (within the meaning of such term in Regulations T, U or X of the Board of Governors of the Federal Reserve System of the United States of America) or of extending credit to others for purchasing or
carrying “margin stock”. None of the proceeds of the Loans will be used, whether directly or indirectly, for the purpose of purchasing or carrying “margin stock” or for any other purpose that could violate, or cause any Lender to
violate, said Regulations T, U or X. 
  

	19.17	 Repetition 

  
 The representations in clauses 19.1 to 19.9 and 19.11(c) and (d) to 19.16 inclusive are deemed to be made by each Obligor by reference to the facts and
circumstances then existing on the date of each Utilisation Request and the first day of each Interest Period. 
  

	20.	INFORMATION UNDERTAKINGS 

  
 The undertakings in this Clause 20 remain in force from the date of this Agreement for so long as any amount is outstanding under the Finance Documents or
any Commitment is in force. 
  

	20.1	Financial statements 

  
 The Principal Guarantor shall supply to the Agent in sufficient copies for all the Lenders: 
  

	 	(a)	as soon as the same become available, but in any event within the time period specified in clause 20.2(c) below after the end of each of its financial years:

  

	 	(i)	its audited consolidated financial statements for that financial year; and 

  

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	 	(ii)	the audited financial statements of each Obligor for that financial year; and 

  

	 	(b)	as soon as the same become available, but in any event within 60 days after the end of each quarter of each of its financial years: 

  

	 	(i)	its consolidated financial statements, Form 10-Q Report and other financial information required to be filed with the Securities and Exchange Commission for that quarter; and

  

	 	(ii)	the financial statements of each Obligor for that financial quarter. 

  

	20.2	Compliance Certificate 

  

	 	(a)	The Principal Guarantor shall supply to the Agent, with each set of financial statements delivered pursuant to paragraph (a)(i) or (b)(i) of Clause 20.1 (Financial
statements), a Compliance Certificate setting out (in reasonable detail) computations as to compliance with Clause 21 (Financial covenants) as at the date as at which those financial statements were drawn up. 

  

	 	(b)	Each Compliance Certificate shall be signed by one officer of the Principal Guarantor and, if required to be delivered with the financial statements delivered pursuant to paragraph
(a)(i) of Clause 20.1 (Financial statements), shall be reported on by the Principal Guarantor’s auditors in the form set out in Part 2 of Schedule 6 (Compliance Certificate). 

  

	 	(c)	The time periods referred to in clause 20.1(a) for supply of financial statements shall be: 

  

	 	(i)	90 days following the end of its financial year in the case of each of the Principal Guarantor and SCTCI; and 

  

	 	(ii)	180 days following the end of its financial year in the case of each of SCTCUK and TCLTC. 

  

	20.3	Requirements as to financial statements 

  

	 	(a)	Each set of financial statements delivered by the Principal Guarantor pursuant to Clause 20.1 (Financial statements) shall be certified by an officer of the Principal
Guarantor as fairly representing its financial condition as at the date as at which those financial statements were drawn up. 

  

	 	(b)	The Principal Guarantor shall procure that each set of financial statements delivered pursuant to Clause 20.1 (Financial statements) is prepared using GAAP.

  

	 	(c)	The Principal Guarantor shall procure that each set of financial statements of an Obligor delivered pursuant to Clause 20.1 (Financial statements) is prepared using GAAP, accounting
practices and financial reference periods consistent with those applied in the preparation of the Original Financial Statements for that Obligor unless, in relation to any set of financial statements, it notifies the Agent that there has been a
change in GAAP, the accounting practices or reference periods and its auditors (or, if appropriate, the auditors of the Obligor) deliver to the Agent: 

  

	 	(i)	a description of any change necessary for those financial statements to reflect the GAAP, accounting practices and reference periods upon which that Obligor’s Original
Financial Statements were prepared; and 

  

	 	(ii)	 sufficient information, in form and substance as may be reasonably required by the Agent, to enable the Lenders to determine whether Clause 

  

 - 38 - 

	 	 
21 (Financial covenants) has been complied with and make an accurate comparison between the financial position indicated in those financial statements and
that Obligor’s Original Financial Statements. 

  
 Any reference in this Agreement to those financial statements shall be construed as a reference to those financial statements as adjusted to reflect the basis upon which the Original Financial Statements were prepared. 
  

	20.4	Borrowing Base certificate 

  
 The Obligors shall provide to the Agent quarterly within 45 days after each quarter of its financial year (or monthly if at any time the availability
demonstrated in the most recent Borrowing Base Certificate against the heading “Availability” is $15,000,000 or less), a certificate setting out a calculation of the Borrowing Base as at the last day of such month (or week, as the case may
be) in the form or substantially the form of Schedule 12. 
  

	20.5	Uncommitted Inventory 

  
 If, and for so long as Uncommitted Inventory exceeds $80,000,000 in value on a quarterly reporting date, the Principal Guarantor shall report monthly to
the Agent in writing by no later than 15 days after the end of the relevant month stating: 
  

	 	(a)	the current level of Uncommitted Inventory; and 

  

	 	(b)	the steps being taken to reduce such level of Uncommitted Inventory. 

  

	20.6	Information: miscellaneous 

  

	 	(a)	The Principal Guarantor shall supply to the Agent (in sufficient copies for all the Lenders, if the Agent so requests): 

  

	 	(i)	all documents dispatched by the Principal Guarantor to its shareholders (or any class of them) or its creditors generally at the same time as they are dispatched; and

  

	 	(ii)	promptly, such further information regarding the financial condition, business and operations of any member of the Group as any Finance Party (through the Agent) may reasonably
request (subject to any confidentiality obligations imposed on the Principal Guarantor or any other member of the Group). 

  

	 	(b)	The Obligors shall supply to the Agent (in sufficient copies for all the Lenders if the Agent so requests) promptly upon any Obligor becoming aware of them, details of any
litigation, arbitration or administrative proceedings which are current, threatened or pending against any member of the Group and which might, if adversely determined, have a Material Adverse Effect. 

  

	20.7	Financial Indebtedness 

  
 The Obligors shall promptly notify the Agent in writing (with sufficient copies for all the Lenders) of any Financial Indebtedness incurred by any Tobacco
Group Company in excess of $10,000,000 (individually or in aggregate) which has or may have a maturity longer than 364 days, excluding any Financial Indebtedness incurred as part of the seasonal financing of tobacco. 
  

 - 39 - 

	20.8	Notification of default 

  

	 	(a)	Each Obligor shall notify the Agent of any Default (and the steps, if any, being taken to remedy it) promptly upon becoming aware of its occurrence (unless that Obligor is aware
that a notification has already been provided by another Obligor). 

  

	 	(b)	Promptly upon a request by the Agent, an Obligor shall supply to the Agent a certificate signed by two of its directors or senior officers on its behalf certifying that no Default
is continuing (or if a Default is continuing, specifying the Default and the steps, if any, being taken to remedy it). 

  

	20.9	Use of websites 

  

	 	(a)	The Obligors may satisfy their respective obligations under this Agreement to deliver any information in relation to those Lenders ( the “Website Lenders”) who accept this
method of communication by posting this information onto an electronic website designated by the Principal Guarantor and the Agent (the “Designated Website”) if: 

  

	 	(i)	the Agent expressly agrees (after consultation with each of the Lenders) that it will accept communication of the information by this method; 

  

	 	(ii)	both the Obligors and the Agent are aware of the address of and any relevant password specifications for the Designated Website; and 

  

	 	(iii)	the information is in a format previously agreed between the Principal Guarantor and the Agent. 

  
 If any Lender (a “Paper Form Lender”) does not agree to the delivery of information electronically
then the Agent shall notify the Obligors accordingly and the Obligors shall supply the information to the Agent (in sufficient copies for each Paper Form Lender) in paper form. In any event an Obligor shall supply the Agent with at least one copy in
paper form of any information required to be provided by it. 
  

	 	(b)	The Agent shall supply each Website Lender with the address of and any relevant password specifications for the Designated Website following designation of that website by the
Principal Guarantor and the Agent. 

  

	 	(c)	Each Obligor shall promptly upon becoming aware of its occurrence notify the Agent if: 

  

	 	(i)	the Designated Website cannot be accessed due to technical failure; 

  

	 	(ii)	the password specifications for the Designated Website change; 

  

	 	(iii)	any new information which is required to be provided under this Agreement is posted onto the Designated Website; 

  

	 	(iv)	any existing information which has been provided under this Agreement and posted onto the Designated Website is amended; or 

  

	 	(v)	it becomes aware that the Designated Website or any information posted onto the Designated Website is or has been infected by any electronic virus or similar software.

  
 If an Obligor notifies the Agent under
paragraph (c)(i) or paragraph (c)(v) above, all information to be provided by the Obligors under this Agreement after the date of that notice shall be supplied in paper form unless and until the Agent and each 

  

 - 40 - 

 
Website Lender is satisfied that the circumstances giving rise to the notification are no longer continuing. 
  

	 	(d)	Any Website Lender may request, through the Agent, one paper copy of any information required to be provided under this Agreement which is posted onto the Designated Website. The
Obligors shall comply with any such request within ten Business Days. 

  

	21.	FINANCIAL COVENANTS 

  

	21.1	Interest Cover Ratio 

  
 Each Obligor shall procure that the ratio of EBITDA to Consolidated Interest Expense shall not at any time fall below 2.0:1. 
  

	21.2	Borrowing Base 

  
 The Principal Guarantor shall procure that, at any time Consolidated Working Capital Debt shall not exceed the Borrowing Base at such time. 
  

	21.3	Tangible Net Worth 

  
 The Tangible Net Worth at any time during each period set out below shall not fall below the amount set out below: 
  

				
	 Period

	  	$

	 Date of this Agreement to 31 March 2004
	  	$	190,000,000
	 1 April 2004 to 31 March 2005:
	  	$	195,000,000
	 1 April 2005 to 31 March 2006:
	  	$	200,000,000
	 1 April 2006 to the date falling three years after the date of this Agreement:
	  	$	205,000,000

  

	21.4	Subsidiary Working Capital Debt 

  
 Subsidiary Working Capital Debt shall at all times be less than or equal to the sum of: 
  
 85% of Subsidiary Inventory; 
  
 85% of Subsidiary Receivables; and 
  
 85% of Subsidiary Advances to Suppliers. 
  

	21.5	Uncommitted Inventory 

  
 The aggregate Uncommitted Inventory of the Tobacco Group shall not at any time exceed $100,000,000. 
  

	21.6	Consolidated Term Debt 

  
 Long Term Consolidated Indebtedness shall not at any time exceed $370,000,000. 
  

	21.7	Current Ratio 

  
 At any time the ratio of Consolidated Current Assets to Consolidated Current Liabilities shall equal or exceed 1.25:1. 
  

 - 41 - 

	21.8	Advances to Affiliates etc 

  
 At any time the aggregate amount advanced by the Borrowers to Affiliates or third party suppliers of tobacco shall not exceed $80,000,000. 
  

	21.9	Testing of covenants: 

  

	 	(a)	The covenants in clauses 21.1 (Interest Cover Ratio), 21.3 (Tangible Net Worth), 21.6 (Consolidated Term Debt) and 21.7 (Current Ratio) shall apply on a
continuing basis and shall be tested (in the case of clause 21.1 (Interest Cover Ratio) on a rolling twelve month basis) quarterly, first by reference to the management accounts and then by reference to the relevant annual audited accounts;

  

	 	(b)	The covenants in clauses 21.2 (Borrowing Base), 21.5 (Uncommitted Inventory), 21.4 (Subsidiary Working Capital Debt) and 21.8 (Advances to Affiliates
etc) shall apply on a continuing basis and shall be tested quarterly (or monthly, as the case may be) by reference to the most recent Borrowing Base Certificate delivered under clause 20.4 (Borrowing Base Certificate).

  

	21.10	 Financial Covenant Definitions 

  
 “Advances to Suppliers” means: 
  

	 	(a)	advances made by members of the Tobacco Group to suppliers made to facilitate the purchase of tobacco to be delivered to members of the Tobacco Group in repayment of such advances;
and 

  

	 	(b)	advances repayable within 365 days made by members of the Tobacco Group to Affiliates in order to facilitate the purchase of tobacco to be delivered to members of the Tobacco Group.

  
 “Borrowing Base” at any time
means the aggregate of: 
  

	 	(a)	75% of Committed Inventory; plus 

  

	 	(b)	60% of Uncommitted Inventory; plus 

  

	 	(c)	85% of Net Trade Receivables; plus 

  

	 	(d)	65% of Advances to Suppliers, 

  
 Less 
  
 100% of Trade Payables and less 
  
 (from the date falling 18 months after the date of this Agreement) 100% of Wool Group Debt. 
  
 “Cash” means at any time, in relation to any Tobacco Group Company, the credit balances held on accounts of
such Tobacco Group Company with banks, provided that (except where the relevant bank is a Lender) the maximum aggregate credit balances to be taken into account in respect of cash which is either held with banks which are not incorporated in OECD
countries or at branches of banks which are located outside OECD countries is $20,000,000. 
  
 “Cash Equivalent Investments” means short term, highly liquid investments which are readily convertible into known amounts of cash without notice and which were within three months of maturity when
acquired. 
  

 - 42 - 

 “Committed Inventory” means, in relation to a member of the Tobacco Group at any time,
the aggregate processed and unprocessed tobacco stocks owned by such member of the Tobacco Group which are the subject of a Confirmed Order with a Person which is not a Tobacco Group Company on arms length terms and on the basis that title remains
with such member of the Tobacco Group until payment in full is received for such tobacco as shown in the most recent Borrowing Base Certificate delivered under clause 20.4 (Borrowing Base certificate). 
  
 “Confirmed Order” an order by a customer for tobacco which
has been accepted in the ordinary course of business by representatives of members of the Tobacco Group and recorded on the inventory records of the Group. 
  
 “Consolidated Current Assets” means at any time, the aggregate of: (a) trading stock, (b) trade and other debtors maturing within twelve
months from the relevant testing date, (c) Cash and (d) Cash Equivalent Investments in each case of each member of the Tobacco Group; 
  
 “Consolidated Current Liabilities” means the aggregate of all liabilities (including trade creditors, accruals, and provisions and
payments received in advance) of each member of the Tobacco Group falling due within twelve months from the relevant testing date including, without limitation, Financial Indebtedness of the Tobacco Group (and any interest on that Financial
Indebtedness) falling due within such period and amounts due in respect of dividends or taxation. 
  
 “Consolidated Income Tax Expense” shall mean, for any fiscal period of the Principal Guarantor, the aggregate liability to corporation or
other taxes on income of members of the Tobacco Group accrued with respect to that period. 
  
 “Consolidated Interest Expense” shall mean, for any fiscal period of the Principal Guarantor, the aggregate interest on Financial Indebtedness accrued for such period (including, without limitation,
the interest component of any finance leases to which any Tobacco Group Company is party) determined on a consolidated basis in accordance with GAAP. 
  
 “Consolidated Net Income” shall mean, for any fiscal period of the Principal Guarantor, the Tobacco Group’s net income (or net loss)
for such period, determined on a consolidated basis in accordance with GAAP. 
  
 “Consolidated Working Capital Debt” means, at any time, Total Consolidated Indebtedness, less (a) Long Term Consolidated Indebtedness and (b) Cash and Cash Equivalent Investments. 
  
 “Doubtful Account” means amounts due to a Tobacco Group
Company from a customer in the ordinary course of business of such Tobacco Group Company where any Tobacco Group Company has reason to suspect that such amounts will not be paid whether by reason of the insolvency of the customer or otherwise.

  
 “EBITDA” for any rolling twelve month
period, Consolidated Net Income for that period determined in accordance with GAAP: 
  

	 	(a)	adding back Consolidated Interest Expense for that period; 

  

	 	(b)	adding back Consolidated Income Tax Expense for that period; 

  

	 	(c)	adding back any amortisation of goodwill and/or know-how or other intangible assets and any depreciation of fixed assets; 

  

	 	(d)	deducting any item treated as extraordinary income in accordance with GAAP; 

  

 - 43 - 

	 	(e)	deducting any profit arising out of release of provisions for liabilities and charges, other than in the normal course of business and in accordance with GAAP consistently
applied; and 

  

	 	(f)	excluding any share of the profits of associated companies except for dividends actually received by the Principal Guarantor. 

  
 “Long Term Consolidated Indebtedness” means at any time
(the “Calculation Time”) such proportion of Total Consolidated Indebtedness as has a scheduled maturity in excess of one year from the Calculation Time but excluding indebtedness under this Agreement. 
  
 “Long Term Subsidiary Indebtedness” means at any time (the
“Test Time”), such proportion of Total Subsidiary Consolidated Indebtedness as has a scheduled maturity in excess of one year from the Test Time. 
  
 “Net Trade Receivables” means with respect to a member of the Tobacco Group at any time: the aggregate gross unsubordinated amounts due
and payable from trade customers of such member of the Tobacco Group in respect of the purchase of tobacco stocks in the ordinary course of business of such Tobacco Group Company at that time but excluding all Doubtful Accounts (as shown in the most
recent Borrowing Base Certificate delivered under clause 20.4 (Borrowing Base certificate)). 
  
 “Subsidiary Advances to Suppliers” means advances made by members of the Subsidiary Group to suppliers made to facilitate the purchase of
tobacco to be delivered to members of the Tobacco Group in repayment of such advances as shown in the most recent Borrowing Base Certificate delivered under clause 20.4 (Borrowing Base certificate). 
  
 “Subsidiary Group” means the Subsidiaries of SCC which are
members of the Tobacco Group excluding SCTCI, SCTCUK and TCLTC. 
  
 “Subsidiary Inventory” means in relation to a member of the Subsidiary Group at any time, the aggregate processed and unprocessed tobacco stocks owned by such member of the Subsidiary Group as shown in the financial records
of the relevant member of the subsidiary group in accordance with GAAP and in a manner consistent with the Principal Guarantor’s current practices. 
  
 “Subsidiary Receivables” means with respect to a member of the Subsidiary Group at any time: the aggregate gross amounts due and payable
from: 
  

	 	(a)	trade customers of such member of the Subsidiary Group in respect of the purchase of tobacco stocks in the ordinary course of business of such member of the Subsidiary Group at that
time; and 

  

	 	(b)	suppliers in respect of advances which are Subsidiary Advances to Suppliers. 

  

“Subsidiary Working Capital Debt” means, at any time Total Subsidiary Consolidated Indebtedness less Long Term Subsidiary
Indebtedness. 
  
 “Tangible Net Worth” means, at
any time, total shareholders’ equity adjusted to: 
  

	 	(a)	deduct to the extent otherwise included, any amount attributable to a revaluation of assets (including intangible assets) after 31 December 2003; 

  

	 	(b)	disregard the effect of any deferred tax or other deferred assets which have been included as part of consolidated revenue reserves; 

  

	 	(c)	deduct intangible assets including goodwill and deferred expenses; and 

  

 - 44 - 

	 	(d)	deduct (or add back if a loss) accumulated other comprehensive income (to the extent that this is attributable to cumulative translation adjustments),

  
 each as determined in accordance with GAAP.

  
 “Total Consolidated Indebtedness” means, at
any time the aggregate principal Financial Indebtedness of the Tobacco Group. 
  
 “Total Subsidiary Consolidated Indebtedness” means, at any time the aggregate principal Financial Indebtedness of the Subsidiary Group including, without limitation, advances to members of the
Subsidiary Group by any of the Borrowers (net of receivables due to members of the Subsidiary Group from any of the Borrowers) after deducting Cash and Cash Equivalent Investments of the Subsidiary Group. 
  
 “Trade Payables” means amounts (including advances) due
from a Tobacco Group Company to buyers and trade creditors in the ordinary course of business of that Tobacco Group Company. 
  
 “Uncommitted Inventory” means, in relation to a member of the Tobacco Group at any time, processed and unprocessed tobacco stocks owned
by such member of the Tobacco Group and not the subject of any Confirmed Order and/or which is available on WAFS. 
  
 “Wool Group Debt” means the aggregate Financial Indebtedness of the Wool Group Companies. 
  

	22.	GENERAL UNDERTAKINGS 

  
 The undertakings in this Clause 22 remain in force from the date of this Agreement for so long as any amount is outstanding under the Finance Documents or
any Commitment is in force. 
  

	22.1	Authorisations 

  
 Each Obligor shall promptly: 
  

	 	(a)	obtain, comply with and do all that is necessary to maintain in full force and effect; and 

  

	 	(b)	supply certified copies to the Agent of, 

  
 any Authorisation required under any law or regulation of its jurisdiction of incorporation to enable it to perform its obligations under the Finance
Documents and to ensure the legality, validity, enforceability or admissibility in evidence in its jurisdiction of incorporation of any Finance Document. 
  

	22.2	Compliance with laws 

  
 Each Obligor shall comply in all respects with all laws to which it may be subject, if failure so to comply would materially impair its ability to perform
its obligations under the Finance Documents. 
  

	22.3	Negative pledge 

  

	 	(a)	No Obligor shall create or permit to subsist any Security over any of its assets. 

  

 - 45 - 

	 	(b)	No Obligor shall (and the Principal Guarantor shall ensure that no other member of the Group will): 

  

	 	(i)	sell, transfer or otherwise dispose of any of its assets on terms whereby they are or may be leased to or re-acquired by an Obligor or any other member of the Group;

  

	 	(ii)	sell, transfer or otherwise dispose of any of its receivables on recourse terms (save to the extent that the aggregate liability under recourse arrangements in respect of sales of
tobacco to non OECD countries or Turkey does not exceed $25,000,000 at any time and where the maximum duration of such recourse in any individual case does not exceed 180 days); 

  

	 	(iii)	enter into any arrangement under which money or the benefit of a bank or other account may be applied, set-off or made subject to a combination of accounts; or

  

	 	(iv)	enter into any other preferential arrangement having a similar effect, 

  
 in circumstances where the arrangement or transaction is entered into primarily as a method of raising Financial Indebtedness or of financing the
acquisition of an asset. 
  

	 	(c)	Paragraphs (a) and (b) above do not apply to: 

  

	 	(i)	any netting or set-off arrangement entered into by any member of the Group in the ordinary course of its banking arrangements for the purpose of netting debit and credit balances;

  

	 	(ii)	any lien arising by operation of law and in the ordinary course of trading; 

  

	 	(iii)	retention of title arrangements arising in the ordinary course of business of a Tobacco Group Company and securing amounts not more than 30 days overdue; 

 

	 	(iv)	any security listed in Schedule 7 (Existing Security) provided such security is released upon the Effective Date (as defined in the document referred to in paragraph 3(d) of
Schedule 2 (Conditions precedent to Initial Utilisation)); 

  

	 	(v)	any Security over or affecting any asset acquired by a member of the Group after the date of this Agreement securing long term Financial Indebtedness incurred solely for the purpose
of financing (in whole or in part) the purchase of such asset if the principal amount secured has not been increased in contemplation of, or since the acquisition of that asset by a member of the Group; 

  

	 	(vi)	any Security over or affecting any asset of any company which becomes a member of the Group after the date of this Agreement, where the Security is created prior to the date on
which that company becomes a member of the Group, if: 

  

	 	(A)	the Security was not created in contemplation of the acquisition of that company; 

  

	 	(B)	the principal amount secured has not increased in contemplation of or since the acquisition of that company; and 

  
 the Security is removed or discharged within 6 months of
that company becoming a member of the Group; 
  

 - 46 - 

	 	(vii)	any Security entered into pursuant to any Finance Document. 

  

	 	(viii)	any other Security granted by a Tobacco Group Company which is not an Obligor which is not already contemplated in paragraphs (i) to (vii) above provided the aggregate indebtedness
of all Tobacco Group Companies secured by such Security does not exceed $10,000,000. 

  

	22.4	Guarantees 

  
 None of SCTCI, SCTCUK and TCLTC shall give any guarantee or indemnity in respect of the obligations of any other person except for: 
  

	 	(a)	the guarantee set out in Section 7 of this Agreement); and 

  

	 	(b)	guarantees and counter indemnities given to banks in connection with letters of credit, guarantees and bid and performance bonds issued pursuant to bilateral facilities made
available to any Borrower by a Lender. 

  

	22.5	Disposals 

  

	 	(a)	No Obligor shall (and the Principal Guarantor shall ensure that no other member of the Group will), enter into a single transaction or a series of transactions (whether related or
not) and whether voluntary or involuntary to sell, lease, transfer or otherwise dispose of any asset. 

  

	 	(b)	Paragraph (a) above does not apply to any sale, lease, transfer or other disposal: 

  

	 	(i)	made in the ordinary course of trading of the disposing entity; 

  

	 	(ii)	of assets in exchange for or replacement of other assets comparable or superior as to type, value and quality; 

  

	 	(iii)	between Obligors or from a member of the Tobacco Group to an Obligor on arms’ length terms; 

  

	 	(iv)	of shares, business or assets of a Wool Group Company; or 

  

	 	(v)	where the higher of the market value or consideration receivable (when aggregated with the higher of the market value or consideration receivable for any other sale, lease, transfer
or other disposal, other than any permitted under paragraphs (i) to (iii) above) does not exceed the lower of (aa) $25,000,000 (or its equivalent in another currency or currencies) in any financial year and (bb) $50,000,000 in the period from the
date of this Agreement to the date falling three years after the date of this Agreement. 

  

	22.6	Merger 

  
 No Obligor shall enter into any amalgamation, demerger, merger or corporate reconstruction. 
  

	22.7	Change of business 

  

	 	(a)	The Principal Guarantor shall procure that no substantial change is made to the general nature of the business of the Principal Guarantor or the Group from that carried on at the
date of this Agreement provided that the Principal Guarantor may dispose of the shares, business or assets of the Wool Group or any Wool Group Company. 

  

 - 47 - 

	 	(b)	The Principal Guarantor shall not carry on any business except: 

  

	 	(i)	the ownership of shares in its Subsidiaries; 

  

	 	(ii)	the issue of and performance of its obligations under the Bonds; 

  

	 	(iii)	the issue of guarantees in respect of obligations of its Subsidiaries to banks in the ordinary course of its business as carried on at the date of this Agreement; and

  

	 	(iv)	the contracting of any other liabilities as may be appropriate in the ordinary course of the Group’s business. 

  

	22.8	Environmental 

  

	 	(a)	Each Obligor will comply, and will cause each of its respective Subsidiaries to comply, and will use its best efforts to cause (a) their respective employees, agents, contractors
and subcontractors, (b) all tenants under any lease or occupancy agreement affecting any portion of any Facility Plant and (c) all other Persons on or occupying such property, to comply, with all Environmental Laws where non-compliance could,
individually or in the aggregate, reasonably be expected to result in a Material Adverse Effect or a liability to any Finance Party. 

  

	 	(b)	With respect to the Obligors and each of the members of the Group and the respective Facility Plants of each of the foregoing, each Obligor will promptly advise the Agent in writing
and in reasonable detail of (a) any Release of any Hazardous Material after the date hereof required to be reported to any Federal, state, local or foreign governmental or regulatory agency under all applicable Environmental Laws, (b) any remedial
action taken after the date hereof by such Obligor or, to the extent such Obligor or any other member of the Group has any such knowledge, any other Person in response to (1) any Hazardous Material on, under or about any Facility Plant, the
existence of which, individually or in the aggregate, could reasonably be expected to result in a Material Adverse Effect or any liability of any Finance Party or (2) any Environmental Claim asserted against any Obligor or any other member of the
Group that could, individually or in the aggregate, reasonably be expected to result in a Material Adverse Effect or any liability of any Finance Party, and (c) any request for information from any governmental agency that indicates such agency is
investigating whether any Obligor or any other member of the Group may be potentially responsible for a Release of Hazardous Materials, to the extent any such Release of any Hazardous Material, remedial action or request for information could,
individually or in the aggregate, reasonably be expected to have a Material Adverse Effect or result in any liability of a Finance Party. 

  

	 	(c)	Each Obligor will, at its own expense, provide copies to the Agent of such documents or information to which such Obligor or any other member of the Group has access as the Agent or
the Lenders may reasonably request in relation to any matters disclosed pursuant to this clause 22.8. 

  

	22.9	Hazardous Materials, remedial action 

  

	 	(a)	 Each Obligor will, and will cause each of the members of the Group to: (i) store, use, dispose of and transport any Hazardous Materials only in compliance with all
applicable Environmental Laws and (ii) promptly take any remedial action which it reasonably deems to be appropriate in response to the Release of any Hazardous Materials on, under or about any Facility Plant. In the event that any Obligor or any
other member of the Group undertakes any remedial action with respect to any Hazardous Material on, under or about any Facility Plant, such Obligor or such other member of the Group will conduct and complete such remedial action in compliance with
all applicable Environmental Laws except when such Obligor’s 

  

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or such other member of the Group’s liability for such presence, storage, use, disposal, transportation or discharge of any Hazardous Material or the
appropriateness of such remedial action is being contested in good faith by such Obligor or such other member of the Group and such reserve or other appropriate provision, if any, as shall be required in conformity with GAAP shall have been made.

  

	 	(b)	With respect to any asbestos currently present in any property owned, leased or operated by any Obligor or any other member of the Group, each Obligor will and will cause each other
member of the Group to, promptly and in accordance with all applicable Environmental Laws and prudent industry practices, either remove such asbestos or maintain such asbestos in such condition as to pose no material risk to human health or
safety. 

  

	 	(c)	The Obligors will indemnify the Agent and each of the Finance Parties for any and all claims brought by third parties against any Obligor or any member of the Group alleging
non-compliance with Environmental Laws or otherwise claiming against any Obligor or member of the Group for injuries sustained by reason of Hazardous Materials for which the complainant seeks recovery from any Finance Party (save where such claims
arise solely by reason of the gross negligence or wilful default of such Finance Party). 

  

	22.10	 Delivery of information as to compliance with ERISA 

  

	 	(a)	Upon the reasonable request of the Agent, and (x) no later than 10 days after the date of such request or (y) within 5 days after the date on which such report is filed with the
Internal Revenue Service (or any Foreign Benefits Agency) if said request is prior to said filing (but in the case of a Multiemployer Plan or a plan subject to Section 4063 of ERISA, promptly when received): 

  

	 	(i)	a copy of the annual report of each Employee Benefit Plan required to be filed with the Internal Revenue Service or any Foreign Benefits Agency, together with the applicable audited
annual report of each such Employee Benefit Plan with ERISA footnotes; and 

  

	 	(ii)	promptly upon the adoption or amendment thereof, whenever any member of the ERISA Group adopts or amends any Employee Benefit Plan, in each case that could reasonably be expected to
result in a material increase in the direct or contingent liabilities of the Obligors or a member of their ERISA Group, a description of such Plan as so adopted or amended; and 

  

	 	(iii)	promptly upon agreeing to have an obligation to contribute to a Multiemployer Plan or becoming a contributing sponsor to a plan subject to Section 4063 of ERISA,

  
 the Obligors shall provide to the Agent a
description and further reasonable information, including financial information, in the event that any member of the ERISA Group shall have an obligation to contribute to any Multiemployer Plan or any plan subject to Section 4063 of ERISA.

  

	 	(b)	 If and when any member of the ERISA Group gives or is required to give notice to the PBGC of any “reportable event” (as defined in Section 4043 of ERISA)
with respect to any Employee Benefit Plan which could reasonably be expected to constitute grounds for a termination of such plan under Title IV of ERISA, or knows that the plan administrator of any Employee Benefit Plan has given or is required to
give notice of any such reportable event, a copy of the notice of such 

  

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reportable event given or required to be given to the PBGC shall be given to the Agent by the Principal Guarantor. 

  

	 	(c)	If and when any member of the ERISA Group receives notice of complete or partial withdrawal liability under Title IV of ERISA or notice that any Multiemployer Plan is in
reorganization, is insolvent or has been terminated, the Principal Guarantor shall deliver to the Agent a copy of such notice. 

  

	 	(d)	If and when any member of the ERISA Group receives notice from the PBGC under Title IV of ERISA of an intent to terminate, impose liability (other than for premiums under Section
4007 of ERISA) in respect of, or appoint a trustee to administer any Employee Benefit Plan, the Principal Guarantor shall deliver to the Agent a copy of such notice. 

  

	 	(e)	If and when any member of the ERISA Group applies for a waiver of the minimum funding standard under Section 412 of the Code, the Principal Guarantor shall deliver to the Agent a
copy of such application. 

  

	 	(f)	If and when any member of the ERISA Group gives notice of intent to terminate any plan under Section 4041(c) of ERISA, the Principal Guarantor shall deliver to the Agent a copy of
such notice and other information filed with the PBGC. 

  

	 	(g)	If and when any member of the ERISA Group gives notice of withdrawal from any plan pursuant to Section 4063 of ERISA, the Principal Guarantor shall deliver to the Agent a copy of
such notice. 

  

	 	(h)	If and when any member of the ERISA Group makes any amendment to any Employee Benefit Plan which has resulted or could result in the imposition of a Lien or the posting of a bond or
other security pursuant to Section 412 of the Code, the Principal Guarantor shall deliver to the Agent a certificate of the chief financial officer or the chief accounting officer of the Principal Guarantor setting forth details as to such
occurrence and action, if any, which the Principal Guarantor or applicable member of the ERISA Group is required or proposes to take. 

  

	 	(i)	If and when there shall occur any event or notice comparable to any of the foregoing under any applicable Foreign Benefits Law, the Principal Guarantor shall deliver to the Agent a
certificate of a Senior Officer of the Principal Guarantor setting forth details as to such event or notice. 

  

	 	(j)	If and when any member of the ERISA Group receives verbal or written notice of the commencement of any audit, investigation or enforcement action by the Department of Labour under
ERISA or by any Foreign Benefits Agency under any Foreign Benefits Law the Principal Guarantor shall deliver to the Agent a copy (in the case of verbal notice, a summary) of such notice. 

  

	 	(k)	Upon the incurrence by the Principal Guarantor or any member of the ERISA Group of any liability with respect to the withdrawal (complete or partial) from any Multiemployer Plan or
plan subject to Section 4063 of ERISA, the Principal Guarantor shall deliver to the Agent notice of such liability. 

  

	 	(l)	Upon the receipt by the Principal Guarantor or any member of the ERISA Group of any notice, or the receipt by any Multiemployer Plan from the Principal Guarantor or any other member
of the Group, of any notice concerning the imposition of withdrawal liability or a determination that a Multiemployer Plan is, or is expected to be, insolvent or in reorganization, within the meaning of Title IV of ERISA, the Principal Guarantor
shall deliver to the Agent a copy of such notice. 

  

 - 50 - 

	 	(m)	Upon the occurrence of a Prohibited Transaction or any other violation of Title I of ERISA, the Principal Guarantor shall deliver to the Agent a notice of such Prohibited
Transaction or violation. 

  

	 	(n)	Upon the occurrence of any event substantially similar to any of the foregoing under any Foreign Benefits Law, the Principal Guarantor shall deliver to the Agent a notice of such
event. 

  

	 	(o)	The occurrence of any event substantially similar to any of the foregoing under any applicable Foreign Benefits Law. 

  

	 	(p)	Promptly after the receipt of notice of (i) the institution of any steps by any member of the ERISA Group, the PBGC or any other Person to terminate any Employee Benefit Plan; (ii)
the institution of any steps by any member of the ERISA Group to withdraw from any Multiemployer Plan or plan subject to Section 4063 of ERISA; (iii) a “Prohibited Transaction” as such term is defined in Section 4975 of the Code or in
Section 406 of ERISA in connection with any Employee Benefit Plan; (iv) any material increase in the contingent liability of any member of the ERISA Group with respect to any employment or post-retirement welfare liability; or (v) the taking of any
action by the Internal Revenue Service, the United States Department of Labour, the PBGC or other federal government agency with respect to any of the foregoing or any other violation or incidence of non-compliance with the federal laws relating to
any Employee Benefit Plan; or (vi) any event or action substantially comparable to any of the foregoing under any Foreign Benefits Law, the Borrower shall deliver to the Agent a notice of such events. 

  

	22.11	 Compliance with ERISA 

  

	 	(a)	The Obligors will not, and will not permit any of their respective Subsidiaries, Affiliates or any member of the ERISA Group to: 

  

	 	(i)	engage in any Prohibited Transaction or any violation of Title I or any other Title of ERISA or the Code where such violation is reasonably likely to have a Material Adverse
Effect.; 

  

	 	(ii)	permit to exist with respect to any Plan any unwaived accumulated funding deficiency (as defined in Section 302 of ERISA or Section 412 of the Code or any Foreign Benefits Law);

  

	 	(iii)	fail to pay to any Plan any required contributions or annual installments due with respect to any waived funding deficiency; 

  

	 	(iv)	terminate any Plan where such event would result in any material liability of the Principal Guarantor, any Subsidiary or any Affiliate or member of the ERISA Group under Title IV of
ERISA or any Foreign Benefits Law; 

  

	 	(v)	fail to make any required contribution or payment to any Multiemployer Plan; 

  

	 	(vi)	amend any Plan resulting in an increase in the current liability for the plan year such that the Principal Guarantor, any Subsidiary, or any Affiliate or any member of the ERISA
Group is required to provide security under such Plan under Section 401(a)(29) of the Code; 

  

	 	(vii)	withdraw from any Multiemployer Plan where such withdrawal could result in any liability of the Principal Guarantor, any Subsidiary, any Affiliate or any member of the ERISA Group;
or 

  

 - 51 - 

	 	(viii)	engage in any substantially similar transaction under any Foreign Benefits Law. 

  

	22.12	 Insurance 

  
 Each Obligor shall and will procure that each of its Subsidiaries shall maintain such policies of insurance in relation to its business and assets as a
reasonably prudent person carrying on a similar business to that member of the Group might be expected to maintain over such assets and/or in respect of such liabilities (including policies to cover public, product, environmental, terrorism,
business interruption and third party liability) and from time to time upon request supply the Agent with copies of all such insurance policies or certificates of insurance or such other evidence of the existence of such policies as may be
acceptable to the Agent, together with confirmation of payment of premiums. 
  

	22.13	 No double financing 

  
 No Borrower shall (and each Borrower shall ensure that none of its Subsidiaries shall) incur Financial Indebtedness from more than one financial
institution or third party provider of supplier credit in respect of the same tobacco inventory. 
  

	23.	EVENTS OF DEFAULT 

  
 Each of the events or circumstances set out in Clause 23 is an Event of Default. 
  

	23.1	Non-payment 

  
 An Obligor does not pay on the due date any amount payable pursuant to a Finance Document at the place at and in the currency in which it is expressed to
be payable unless: 
  

	 	(a)	its failure to pay is caused by administrative or technical error; and 

  

	 	(b)	payment is made within two Business Days of its due date. 

  

	23.2	Financial covenants 

  
 Any requirement of Clause 21 (Financial covenants) is not satisfied. 
  

	23.3	Other obligations 

  

	 	(a)	An Obligor does not comply with any provision of the Finance Documents (other than those referred to in Clause 23.1 (Non-payment) and Clause 23.2 (Financial
covenants)). 

  

	 	(b)	No Event of Default under paragraph (a) above will occur if the failure to comply is capable of remedy and is remedied within 14 Business Days of the Agent giving notice to the
Principal Guarantor or the Principal Guarantor becoming aware of the failure to comply. 

  

	23.4	Misrepresentation 

  
 Any representation or statement made or deemed to be made by an Obligor in the Finance Documents or any other document delivered by or on behalf of any
Obligor under or in connection with any Finance Document is or proves to have been incorrect or misleading in any material respect when made or deemed to be made. 
  

	23.5	Cross default 

  

	 	(a)	Any Financial Indebtedness of any member of the Group is not paid when due nor within any originally applicable grace period. 

  

 - 52 - 

	 	(b)	Any Financial Indebtedness of any member of the Group is declared to be or otherwise becomes due and payable prior to its specified maturity as a result of an event of default
(however described). 

  

	 	(c)	Any commitment for any Financial Indebtedness of any member of the Group is cancelled or suspended by a creditor of any member of the Group as a result of an event of default
(however described). 

  

	 	(d)	Any creditor of any member of the Group becomes entitled to declare any Financial Indebtedness of any member of the Group due and payable prior to its specified maturity as a result
of an event of default (however described). 

  

	 	(e)	No Event of Default will occur under this Clause 23.5 if the aggregate amount of Financial Indebtedness or commitment for Financial Indebtedness falling within paragraphs (a) to (d)
above is less than $10,000,000 (or its equivalent in any other currency or currencies). 

  

	23.6	Insolvency 

  

	 	(a)	A member of the Group which is not an Excluded Company is unable or admits inability to pay its debts as they fall due, suspends making payments on any of its debts or, by reason of
actual or anticipated financial difficulties, commences negotiations with one or more of its creditors with a view to rescheduling any of its indebtedness. 

  

	 	(b)	The value of the assets of any member of the Group which is not an Excluded Company is less than its liabilities (taking into account contingent and prospective liabilities).

  

	 	(c)	A moratorium is declared in respect of any indebtedness of any member of the Group which is not an Excluded Company. 

  

	23.7	Insolvency proceedings 

  
 Any corporate action, legal proceedings or other procedure or step (except for Excluded Proceedings) is taken in relation to: 
  

	 	(a)	the suspension of payments, a moratorium of any indebtedness, winding-up, dissolution, administration or reorganisation (by way of voluntary arrangement, scheme of arrangement or
otherwise) of any member of the Group (not being an Excluded Company) other than a solvent liquidation or reorganisation of any member of the Group which is not an Obligor; 

  

	 	(b)	a composition, assignment or arrangement with any creditor of any member of the Group except for an Excluded Company; 

  

	 	(c)	the appointment of a liquidator (other than in respect of a solvent liquidation of a member of the Group which is not an Obligor), receiver, administrator, administrative receiver,
compulsory manager or other similar officer in respect of any member of the Group except for an Excluded Company or any of its assets; or 

  

	 	(d)	enforcement of any Security over any assets of any member of the Group, 

  
 or any analogous procedure or step is taken in any jurisdiction. 
  

 - 53 - 

	23.8	Involuntary Bankruptcy; Appointment of Receiver, etc. 

  

	 	(a)	With respect only to the Principal Guarantor and SCTCI or another member of the Group incorporated in the United States of America, a court having jurisdiction in the premises shall
enter a decree or order for relief in respect of the Principal Guarantor or SCTCI in an involuntary case under the Bankruptcy Code or any applicable bankruptcy, insolvency, winding-up, reorganization or other similar law now or hereafter in effect
in the United States of America or elsewhere; or any other similar relief shall be granted under any applicable Federal or state law; or 

  

	 	(b)	An involuntary case is commenced against the Principal Guarantor or SCTCI or another member of the Group incorporated in any state of the United States of America under any
applicable bankruptcy, insolvency or other similar law now or hereafter in effect; or a decree or order of a court having jurisdiction in the premises for the appointment of a receiver, liquidator, sequestrator, trustee, custodian or other officer
having similar powers over the Principal Guarantor or SCTCI or such other member of the Group, or over all or a substantial part of its property, shall have been entered; or the involuntary appointment of an interim receiver, trustee or other
custodian of the Principal Guarantor or SCTCI or such other member of the Group for all or a substantial part of its property; or the issuance of a warrant of attachment, execution or similar process against any substantial part of the property of
the Principal Guarantor or SCTCI or such other member of the Group, and the continuance of any such event for 60 days unless dismissed, bonded or discharged. 

  

	23.9	Voluntary Bankruptcy; Appointment of Receiver, etc. 

  

	 	(a)	With respect only to the Principal Guarantor and SCTCI or another member of the Group incorporated in any state of the United States of America, the Principal Guarantor or SCTCI or
such member of the Group shall have an order for relief entered with respect to it or commence a voluntary case under the Bankruptcy Code of the United States of America or any applicable bankruptcy, insolvency, winding-up, reorganization or other
similar law now or hereafter in effect in the United States of America or elsewhere, or shall consent to the entry of an order for relief in an involuntary case, or to the conversion of an involuntary case to a voluntary case, under any such law, or
shall consent to the appointment of or making possession by a receiver, trustee or other custodian for all or a substantial part of its property; the making by the Principal Guarantor or SCTCI or such member of the Group of any assignment for the
benefit of creditors; or 

  

	 	(b)	The inability or failure of the Principal Guarantor or SCTCI or any other member of the Group incorporated in any state of the United States of America, or the admission by the
Principal Guarantor or SCTCI or such other member of the Group in writing of its inability to pay its debts as such debts become due; or the members of the Board of Directors of the Principal Guarantor or SCTCI or such member of the Group (or any
committee thereof) adopts any resolution or otherwise authorizes action to approve any of the actions referred to in clause 23.8 or this clause 23.9. 

  

	23.10	 Creditors’ process 

  
 Any expropriation, attachment, sequestration, distress or execution affects any asset or assets of a member of the Group having an aggregate value of
$10,000,000 or more and is not discharged within 14 days. 
  

 - 54 - 

	23.11	 Ownership of the Obligors 

  
 An Obligor (other than the Principal Guarantor) is not or ceases to be a wholly owned Subsidiary of the Principal Guarantor. 
  

	23.12	 Unlawfulness 

  
 It is or becomes unlawful for an Obligor to perform any of its obligations under the Finance Documents. 
  

	23.13	 Repudiation 

  
 An Obligor repudiates a Finance Document or evidences an intention to repudiate a Finance Document. 
  

	23.14	 Material adverse effect 

  
 Any events or circumstances arise which have a Material Adverse Effect. 
  

	23.15	 Acceleration 

  
 On and at any time after the occurrence of an Event of Default which is continuing the Agent may, and shall if so directed by the Majority Lenders, by
notice to the Principal Guarantor: 
  

	 	(a)	cancel the Total Commitments whereupon they shall immediately be cancelled; 

  

	 	(b)	declare that all or part of the Loans, together with accrued interest, and all other amounts accrued or outstanding under the Finance Documents be immediately due and payable,
whereupon they shall become immediately due and payable; and/or 

  

	 	(c)	declare that all or part of the Loans be payable on demand, whereupon they shall immediately become payable on demand by the Agent on the instructions of the Majority Lenders.

  

 - 55 - 

 SECTION 9 
  
 CHANGES TO PARTIES 
  

	24.	CHANGES TO THE LENDERS 

  

	24.1	Assignments and transfers by the Lenders 

  
 Subject to this Clause 24, a Lender (the “Existing Lender”) may: 
  

	 	(a)	assign any of its rights; or 

  

	 	(b)	transfer by novation any of its rights and obligations, 

  
 to another bank or financial institution or to a trust, fund or other entity which is regularly engaged in or established for the purpose of making,
purchasing or investing in loans, securities or other financial assets and is a Qualifying Lender (the “New Lender”). 
  

	24.2	Conditions of assignment or transfer 

  

	 	(a)	The consent of the Principal Guarantor is required for an assignment or transfer by a Lender, unless the assignment or transfer is to another Lender or an Affiliate of a Lender.

  

	 	(b)	The consent of the Principal Guarantor to an assignment or transfer if to another bank must not be unreasonably withheld or delayed. The Principal Guarantor will be deemed to have
given its consent five Business Days after the Lender has requested it unless consent is expressly refused by the Principal Guarantor within that time. 

  

	 	(c)	The consent of the Principal Guarantor to an assignment or transfer must not be withheld solely because the assignment or transfer may result in an increase to the Mandatory Cost.

  

	 	(d)	An assignment will only be effective on receipt by the Agent of written confirmation from the New Lender (in form and substance satisfactory to the Agent) that the New Lender will
assume the same obligations to the other Finance Parties as it would have been under if it was an Original Lender. 

  

	 	(e)	A transfer will only be effective if the procedure set out in Clause 24.5 (Procedure for transfer) is complied with. 

  

	 	(f)	If: 

  

	 	(i)	a Lender assigns or transfers any of its rights or obligations under the Finance Documents or changes its Facility Office; and 

  

	 	(ii)	as a result of circumstances existing at the date the assignment, transfer or change occurs, an Obligor would be obliged to make a payment to the New Lender or Lender acting through
its new Facility Office under Clause 13 (Tax gross-up and indemnities) or Clause 14 (Increased Costs), 

  
 then the New Lender or Lender acting through its new Facility Office is only entitled to receive payment under those Clauses to the same extent as the
Existing Lender or Lender acting through its previous Facility Office would have been if the assignment, transfer or change had not occurred. 
  

 - 56 - 

	24.3	Assignment or transfer fee 

  
 The New Lender shall, on the date upon which an assignment or transfer takes effect, pay to the Agent (for its own account) a fee of £1000.

  

	24.4	Limitation of responsibility of Existing Lenders 

  

	 	(a)	Unless expressly agreed to the contrary, an Existing Lender makes no representation or warranty and assumes no responsibility to a New Lender for: 

  

	 	(i)	the legality, validity, effectiveness, adequacy or enforceability of the Finance Documents or any other documents; 

  

	 	(ii)	the financial condition of any Obligor; 

  

	 	(iii)	the performance and observance by any Obligor of its obligations under the Finance Documents or any other documents; or 

  

	 	(iv)	the accuracy of any statements (whether written or oral) made in or in connection with any Finance Document or any other document, 

  
 and any representations or warranties implied by law are excluded.

  

	 	(b)	Each New Lender confirms to the Existing Lender and the other Finance Parties that it: 

  

	 	(i)	has made (and shall continue to make) its own independent investigation and assessment of the financial condition and affairs of each Obligor and its related entities in connection
with its participation in this Agreement and has not relied exclusively on any information provided to it by the Existing Lender in connection with any Finance Document; and 

  

	 	(ii)	will continue to make its own independent appraisal of the creditworthiness of each Obligor and its related entities whilst any amount is or may be outstanding under the Finance
Documents or any Commitment is in force. 

  

	 	(c)	Nothing in any Finance Document obliges an Existing Lender to: 

  

	 	(i)	accept a re-transfer from a New Lender of any of the rights and obligations assigned or transferred under this Clause 24; or 

  

	 	(ii)	support any losses directly or indirectly incurred by the New Lender by reason of the non-performance by any Obligor of its obligations under the Finance Documents or otherwise.

  

	24.5	Procedure for transfer 

  

	 	(a)	Subject to the conditions set out in Clause 24.2 (Conditions of assignment or transfer) a transfer is effected in accordance with paragraph (b) below when the Agent executes
an otherwise duly completed Transfer Certificate delivered to it by the Existing Lender and the New Lender. The Agent shall, as soon as reasonably practicable after receipt by it of a duly completed Transfer Certificate appearing on its face to
comply with the terms of this Agreement and delivered in accordance with the terms of this Agreement, execute that Transfer Certificate. 

  

	 	(b)	On the Transfer Date: 

  

	 	(i)	 to the extent that in the Transfer Certificate the Existing Lender seeks to transfer by novation its rights and obligations under the Finance 

  

 - 57 - 

	 	 
Documents each of the Obligors and the Existing Lender shall be released from further obligations towards one another under the Finance Documents and their
respective rights against one another under the Finance Documents shall be cancelled (being the “Discharged Rights and Obligations”); 

  

	 	(ii)	each of the Obligors and the New Lender shall assume obligations towards one another and/or acquire rights against one another which differ from the Discharged Rights and
Obligations only insofar as that Obligor and the New Lender have assumed and/or acquired the same in place of that Obligor and the Existing Lender; 

  

	 	(iii)	the Agent, the Arranger, the New Lender and other Lenders shall acquire the same rights and assume the same obligations between themselves as they would have acquired and assumed
had the New Lender been an Original Lender with the rights and/or obligations acquired or assumed by it as a result of the transfer and to that extent the Agent, the Arranger and the Existing Lender shall each be released from further obligations to
each other under the Finance Documents; and 

  

	 	(iv)	the New Lender shall become a Party as a “Lender”. 

  

	24.6	Disclosure of information 

  
 Any Lender may disclose to any of its Affiliates and any other person: 
  

	 	(a)	to (or through) whom that Lender assigns or transfers (or may potentially assign or transfer) all or any of its rights and obligations under this Agreement;

  

	 	(b)	with (or through) whom that Lender enters into (or may potentially enter into) any sub-participation in relation to, or any other transaction under which payments are to be made by
reference to, this Agreement or any Obligor; or 

  

	 	(c)	to whom, and to the extent that, information is required to be disclosed by any applicable law or regulation, 

  
 any information about any Obligor, the Group and the Finance Documents as
that Lender shall consider appropriate, provided that prior to any disclosure under (a) or (b) above, the recipient of such information shall have signed a confidentiality agreement in mutatis mutandis the same form as Schedule 8 (LMA Form of
Confidentiality Undertaking) . 
  

	25.	ASSIGNMENTS AND TRANSFER BY OBLIGORS 

  
 No Obligor may assign any of its rights or transfer any of its rights or
obligations under the Finance Documents. 
  

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 SECTION 10 
  
 THE FINANCE PARTIES 
  

	26.	ROLE OF THE AGENT AND THE ARRANGER

  

	26.1	Appointment of the Agent 

  

	 	(a)	Each other Finance Party appoints the Agent to act as its agent under and in connection with the Finance Documents. 

  

	 	(b)	Each other Finance Party authorises the Agent to exercise the rights, powers, authorities and discretions specifically given to the Agent under or in connection with the Finance
Documents together with any other incidental rights, powers, authorities and discretions. 

  

	26.2	Duties of the Agent 

  

	 	(a)	The Agent shall promptly forward to a Party the original or a copy of any document which is delivered to the Agent for that Party by any other Party. 

  

	 	(b)	Except where a Finance Document specifically provides otherwise, the Agent is not obliged to review or check the adequacy, accuracy or completeness of any document it forwards to
another Party. 

  

	 	(c)	If the Agent receives notice from a Party referring to this Agreement, describing a Default and stating that the circumstance described is a Default, it shall promptly notify the
Finance Parties. 

  

	 	(d)	If the Agent is aware of the non-payment of any principal, interest, commitment fee or other fee payable to a Finance Party (other than the Agent or the Arranger) under this
Agreement it shall promptly notify the other Finance Parties. 

  

	 	(e)	The Agent’s duties under the Finance Documents are solely mechanical and administrative in nature. 

  

	26.3	Role of the Arranger 

  
 Except as specifically provided in the Finance Documents, the Arranger has no obligations of any kind to any other Party under or in connection with any
Finance Document. 
  

	26.4	No fiduciary duties 

  

	 	(a)	Nothing in this Agreement constitutes the Agent or the Arranger as a trustee or fiduciary of any other person. 

  

	 	(b)	Neither the Agent nor the Arranger shall be bound to account to any Lender for any sum or the profit element of any sum received by it for its own account. 

 

	26.5	Business with the Group 

  
 The Agent and the Arranger may accept deposits from, lend money to and generally engage in any kind of banking or other business with any member of the
Group. 
  

	26.6	Rights and discretions of the Agent 

  

	 	(a)	The Agent may rely on: 

  

	 	(i)	any representation, notice or document believed by it to be genuine, correct and appropriately authorised; and 

  

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	 	(ii)	any statement made by a director, authorised signatory or employee of any person regarding any matters which may reasonably be assumed to be within his knowledge or within his power
to verify. 

  

	 	(b)	The Agent may assume (unless it has received notice to the contrary in its capacity as agent for the Lenders) that: 

  

	 	(i)	no Default has occurred (unless it has actual knowledge of a Default arising under Clause 23.1 (Non-payment)); 

  

	 	(ii)	any right, power, authority or discretion vested in any Party or the Majority Lenders has not been exercised; and 

  

	 	(iii)	any notice or request made by the Principal Guarantor (other than a Utilisation Request) is made on behalf of and with the consent and knowledge of all the Obligors.

  

	 	(c)	The Agent may engage, pay for and rely on the advice or services of any lawyers, accountants, surveyors or other experts. 

  

	 	(d)	The Agent may act in relation to the Finance Documents through its personnel and agents. 

  

	 	(e)	The Agent may disclose to any other Party any information it reasonably believes it has received as agent under this Agreement. 

  

	 	(f)	Notwithstanding any other provision of any Finance Document to the contrary, neither the Agent nor the Arranger is obliged to do or omit to do anything if it would or might in its
reasonable opinion constitute a breach of any law or regulation or a breach of a fiduciary duty or duty of confidentiality. 

  

	26.7	Majority Lenders’ instructions 

  

	 	(a)	Unless a contrary indication appears in a Finance Document, the Agent shall (i) exercise any right, power, authority or discretion vested in it as Agent in accordance with any
instructions given to it by the Majority Lenders (or, if so instructed by the Majority Lenders, refrain from exercising any right, power, authority or discretion vested in it as Agent) and (ii) not be liable for any act (or omission) if it acts (or
refrains from taking any action) in accordance with an instruction of the Majority Lenders. 

  

	 	(b)	Unless a contrary indication appears in a Finance Document, any instructions given by the Majority Lenders will be binding on all the Finance Parties. 

  

	 	(c)	The Agent may refrain from acting in accordance with the instructions of the Majority Lenders (or, if appropriate, the Lenders) until it has received such security as it may require
for any cost, loss or liability (together with any associated VAT) which it may incur in complying with the instructions. 

  

	 	(d)	In the absence of instructions from the Majority Lenders, (or, if appropriate, the Lenders) the Agent may act (or refrain from taking action) as it considers to be in the best
interest of the Lenders. 

  

	 	(e)	The Agent is not authorised to act on behalf of a Lender (without first obtaining that Lender’s consent) in any legal or arbitration proceedings relating to any Finance
Document. 

  

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	26.8	Responsibility for documentation 

  
 Neither the Agent nor the Arranger nor, in each case, its officers, employees or agents: 
  

	 	(a)	is responsible for the adequacy, accuracy and/or completeness of any information (whether oral or written) supplied by the Agent, the Arranger, an Obligor or any other person given
in or in connection with any Finance Document; or 

  

	 	(b)	is responsible for the legality, validity, effectiveness, adequacy or enforceability of any Finance Document or any other agreement, arrangement or document entered into, made or
executed in anticipation of or in connection with any Finance Document. 

  

	26.9	Exclusion of liability 

  

	 	(a)	Without limiting paragraph (b) below, the Agent will not be liable for any action taken by it under or in connection with any Finance Document, unless directly caused by its gross
negligence or wilful misconduct. 

  

	 	(b)	No Party (other than the Agent) may take any proceedings against any officer, employee or agent of the Agent in respect of any claim it might have against the Agent or in respect of
any act or omission of any kind by that officer, employee or agent in relation to any Finance Document and any officer, employee or agent of the Agent may rely on this Clause subject to Clause 1.3 (Third Party Rights) and the provision of the
Third Parties Act. 

  

	 	(c)	The Agent will not be liable for any delay (or any related consequences) in crediting an account with an amount required under the Finance Documents to be paid by the Agent if the
Agent has taken all necessary steps as soon as reasonably practicable to comply with the regulations or operating procedures of any recognised clearing or settlement system used by the Agent for that purpose. 

  

	26.10	 Lenders’ indemnity to the Agent 

  
 Each Lender shall (in proportion to its share of the Total Commitments or, if the Total Commitments are then zero, to its share of the Total Commitments
immediately prior to their reduction to zero) indemnify the Agent, within three Business Days of demand, against any cost, loss or liability incurred by the Agent (otherwise than by reason of the Agent’s gross negligence or wilful misconduct)
in acting as Agent under the Finance Documents (unless the Agent has been reimbursed by an Obligor pursuant to a Finance Document). 
  

	26.11	 Resignation of the Agent 

  

	 	(a)	The Agent may resign and appoint one of its Affiliates as successor by giving notice to the other Finance Parties and the Obligors. 

  

	 	(b)	Alternatively the Agent may resign by giving notice to the other Finance Parties and the Obligors, in which case the Majority Lenders (after consultation with the Obligors) may
appoint a successor Agent. 

  

	 	(c)	If the Majority Lenders have not appointed a successor Agent in accordance with paragraph (b) above within 30 days after notice of resignation was given, the Agent (after
consultation with the Obligors) may appoint a successor Agent. 

  

	 	(d)	The retiring Agent shall, at its own cost, make available to the successor Agent such documents and records and provide such assistance as the successor Agent may reasonably request
for the purposes of performing its functions as Agent under the Finance Documents. 

  

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	 	(e)	The Agent’s resignation notice shall only take effect upon the appointment of a successor. 

  

	 	(f)	Upon the appointment of a successor, the retiring Agent shall be discharged from any further obligation in respect of the Finance Documents but shall remain entitled to the benefit
of this Clause 26. Its successor and each of the other Parties shall have the same rights and obligations amongst themselves as they would have had if such successor had been an original Party. 

  

	 	(g)	After consultation with the Obligors, the Majority Lenders may, by notice to the Agent, require it to resign in accordance with paragraph (b) above. In this event, the Agent shall
resign in accordance with paragraph (b) above. 

  

	26.12	  Confidentiality 

  

	 	(a)	In acting as agent for the Finance Parties, the Agent shall be regarded as acting through its agency division which shall be treated as a separate entity from any other of its
divisions or departments. 

  

	 	(b)	If information is received by another division or department of the Agent, it may be treated as confidential to that division or department and the Agent shall not be deemed to have
notice of it. 

  

	26.13	  Relationship with the Lenders 

  

	 	(a)	The Agent may treat each Lender as a Lender, entitled to payments under this Agreement and acting through its Facility Office unless it has received not less than five Business Days
prior notice from that Lender to the contrary in accordance with the terms of this Agreement. 

  

	 	(b)	Each Lender shall supply the Agent with any information required by the Agent in order to calculate the Mandatory Cost in accordance with Schedule 4 (Mandatory Cost
formulae). 

  

	26.14	  Credit appraisal by the Lenders 

  
 Without affecting the responsibility of any Obligor for information supplied by it or on its behalf in connection with any Finance Document, each Lender
confirms to the Agent and the Arranger that it has been, and will continue to be, solely responsible for making its own independent appraisal and investigation of all risks arising under or in connection with any Finance Document including but not
limited to: 
  

	 	(a)	the financial condition, status and nature of each member of the Group; 

  

	 	(b)	the legality, validity, effectiveness, adequacy or enforceability of any Finance Document and any other agreement, arrangement or document entered into, made or executed in
anticipation of, under or in connection with any Finance Document; 

  

	 	(c)	whether that Lender has recourse, and the nature and extent of that recourse, against any Party or any of its respective assets under or in connection with any Finance Document, the
transactions contemplated by the Finance Documents or any other agreement, arrangement or document entered into, made or executed in anticipation of, under or in connection with any Finance Document; and 

  

	 	(d)	 the adequacy, accuracy and/or completeness of any information provided by the Agent, any Party or by any other person under or in connection with any Finance
Document, the transactions contemplated by the Finance Documents or any other 

  

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agreement, arrangement or document entered into, made or executed in anticipation of, under or in connection with any Finance Document.

  

	26.15	 Reference Banks 

  
 If a Reference Bank (or, if a Reference Bank is not a Lender, the Lender of which it is an Affiliate) ceases to be a Lender, the Agent shall (in
consultation with the Principal Guarantor) appoint another Lender or an Affiliate of a Lender to replace that Reference Bank. 
  

	26.16	 Agent’s Management Time 

  
 Any amount payable to the Agent under Clause 15.3 (Indemnity to the Agent), Clause 17 (Costs and expenses) and Clause 26.10
(Lenders’ indemnity to the Agent) shall include the cost of utilising the Agent’s management time or other resources and will be calculated on the basis of such reasonable daily or hourly rates as the Agent may notify to the
Principal Guarantor and the Lenders, and is in addition to any fee paid or payable to the Agent under Clause 12 (Fees). 
  

	26.17	 Deduction from amounts payable by the Agent 

  
 If any Party owes an amount to the Agent under the Finance Documents the Agent may, after giving notice to that Party, deduct an amount not exceeding that
amount from any payment to that Party which the Agent would otherwise be obliged to make under the Finance Documents and apply the amount deducted in or towards satisfaction of the amount owed. For the purposes of the Finance Documents that Party
shall be regarded as having received any amount so deducted. 
  

	27.	CONDUCT OF BUSINESS BY THE FINANCE PARTIES

  
 No provision of this Agreement will:

  

	 	(a)	interfere with the right of any Finance Party to arrange its affairs (tax or otherwise) in whatever manner it thinks fit; 

  

	 	(b)	oblige any Finance Party to investigate or claim any credit, relief, remission or repayment available to it or the extent, order and manner of any claim; or

  

	 	(c)	oblige any Finance Party to disclose any information relating to its affairs (tax or otherwise) or any computations in respect of Tax. 

  

	28.	SHARING AMONG THE FINANCE PARTIES 

  

	28.1	Payments to Finance Parties 

  
 If a Finance Party (a “Recovering Finance Party”) receives or recovers any amount from an Obligor other than in accordance with Clause 29
(Payment mechanics) and applies that amount to a payment due under the Finance Documents then: 
  

	 	(a)	the Recovering Finance Party shall, within three Business Days, notify details of the receipt or recovery, to the Agent; 

  

	 	(b)	the Agent shall determine whether the receipt or recovery is in excess of the amount the Recovering Finance Party would have been paid had the receipt or recovery been received or
made by the Agent and distributed in accordance with Clause 29 (Payment mechanics), without taking account of any Tax which would be imposed on the Agent in relation to the receipt, recovery or distribution; and 

  

	 	(c)	 the Recovering Finance Party shall, within three Business Days of demand by the Agent, pay to the Agent an amount (the “Sharing Payment”) equal to
such 

  

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receipt or recovery less any amount which the Agent determines may be retained by the Recovering Finance Party as its share of any payment to be made, in
accordance with Clause 29.5 (Partial payments). 

  

	28.2	Redistribution of payments 

  
 The Agent shall treat the Sharing Payment as if it had been paid by the relevant Obligor and distribute it between the Finance Parties (other than the
Recovering Finance Party) in accordance with Clause 29.5 (Partial payments). 
  

	28.3	Recovering Finance Party’s rights 

  

	 	(a)	On a distribution by the Agent under Clause 28.2 (Redistribution of payments), the Recovering Finance Party will be subrogated to the rights of the Finance Parties which have
shared in the redistribution. 

  

	 	(b)	If and to the extent that the Recovering Finance Party is not able to rely on its rights under paragraph (a) above, the relevant Obligor shall be liable to the Recovering Finance
Party for a debt equal to the Sharing Payment which is immediately due and payable. 

  

	28.4	Reversal of redistribution 

  
 If any part of the Sharing Payment received or recovered by a Recovering Finance Party becomes repayable and is repaid by that Recovering Finance Party,
then: 
  

	 	(a)	each Finance Party which has received a share of the relevant Sharing Payment pursuant to Clause 28.2 (Redistribution of payments) shall, upon request of the Agent, pay to
the Agent for account of that Recovering Finance Party an amount equal to the appropriate part of its share of the Sharing Payment (together with an amount as is necessary to reimburse that Recovering Finance Party for its proportion of any interest
on the Sharing Payment which that Recovering Finance Party is required to pay); and 

  

	 	(b)	that Recovering Finance Party’s rights of subrogation in respect of any reimbursement shall be cancelled and the relevant Obligor will be liable to the reimbursing Finance
Party for the amount so reimbursed. 

  

	28.5	Exceptions 

  

	 	(a)	This Clause 28 shall not apply to the extent that the Recovering Finance Party would not, after making any payment pursuant to this Clause, have a valid and enforceable claim
against the relevant Obligor. 

  

	 	(b)	A Recovering Finance Party is not obliged to share with any other Finance Party any amount which the Recovering Finance Party has received or recovered as a result of taking legal
or arbitration proceedings, if: 

  

	 	(i)	it notified that other Finance Party of the legal or arbitration proceedings; and 

  

	 	(ii)	that other Finance Party had an opportunity to participate in those legal or arbitration proceedings but did not do so as soon as reasonably practicable having received notice and
did not take separate legal or arbitration proceedings. 

  

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 SECTION 11 
  
 ADMINISTRATION 
  

	29.	PAYMENT MECHANICS 

  

	29.1	Payments to the Agent 

  

	 	(a)	On each date on which an Obligor or a Lender is required to make a payment under a Finance Document, that Obligor or Lender shall make the same available to the Agent (unless a
contrary indication appears in a Finance Document) for value on the due date at the time and in such funds specified by the Agent as being customary at the time for settlement of transactions in the relevant currency in the place of payment.

  

	 	(b)	Payment shall be made to such account in the principal financial centre of the country of that currency with such bank as the Agent specifies. 

  

	29.2	Distributions by the Agent 

  
 Each payment received by the Agent under the Finance Documents for another Party shall, subject to Clause 29.3 (Distributions to an Obligor) and
Clause 29.4 (Clawback) be made available by the Agent as soon as practicable after receipt to the Party entitled to receive payment in accordance with this Agreement (in the case of a Lender, for the account of its Facility Office), to such
account as that Party may notify to the Agent by not less than five Business Days’ notice with a bank in the principal financial centre of the country of that currency . 
  

	29.3	Distributions to an Obligor 

  
 The Agent may (with the consent of the Obligor or in accordance with Clause 30 (Set-off)) apply any amount received by it for that Obligor in or
towards payment (on the date and in the currency and funds of receipt) of any amount due from that Obligor under the Finance Documents or in or towards purchase of any amount of any currency to be so applied. 
  

	29.4	Clawback 

  

	 	(a)	Where a sum is to be paid to the Agent under the Finance Documents for another Party, the Agent is not obliged to pay that sum to that other Party (or to enter into or perform any
related exchange contract) until it has been able to establish to its satisfaction that it has actually received that sum. 

  

	 	(b)	If the Agent pays an amount to another Party and it proves to be the case that the Agent had not actually received that amount, then the Party to whom that amount (or the proceeds
of any related exchange contract) was paid by the Agent shall on demand refund the same to the Agent together with interest on that amount from the date of payment to the date of receipt by the Agent, calculated by the Agent to reflect its cost of
funds. 

  

	29.5	Partial payments 

  

	 	(a)	If the Agent receives a payment that is insufficient to discharge all the amounts then due and payable by an Obligor under the Finance Documents, the Agent shall apply that payment
towards the obligations of that Obligor under the Finance Documents in the following order: 

  

	 	(i)	first, in or towards payment pro rata of any unpaid fees, costs and expenses of the Agent under the Finance Documents; 

  

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	 	(ii)	secondly, in or towards payment pro rata of any accrued interest, fee or commission due but unpaid under this Agreement; 

  

	 	(iii)	thirdly, in or towards payment pro rata of any principal due but unpaid under this Agreement; and 

  

	 	(iv)	fourthly, in or towards payment pro rata of any other sum due but unpaid under the Finance Documents. 

  

	 	(b)	The Agent shall, if so directed by the Majority Lenders, vary the order set out in paragraphs (a)(ii) to (iv) above. 

  

	 	(c)	Paragraphs (a) and (b) above will override any appropriation made by an Obligor. 

  

	29.6	No set-off by Obligors 

  
 All payments to be made by an Obligor under the Finance Documents shall be calculated and be made without (and free and clear of any deduction for)
set-off or counterclaim. 
  

	29.7	Business Days 

  

	 	(a)	Any payment which is due to be made on a day that is not a Business Day shall be made on the next Business Day in the same calendar month (if there is one) or the preceding Business
Day (if there is not). 

  

	 	(b)	During any extension of the due date for payment of any principal or Unpaid Sum under this Agreement interest is payable on the principal or Unpaid Sum at the rate payable on the
original due date. 

  

	29.8	Currency of account 

  

	 	(a)	Subject to paragraphs (b) to (e) below, the Base Currency is the currency of account and payment for any sum due from an Obligor under any Finance Document.

  

	 	(b)	A repayment of a Loan or Unpaid Sum or a part of a Loan or Unpaid Sum shall be made in the currency in which that Loan or Unpaid Sum is denominated on its due date.

  

	 	(c)	Each payment of interest shall be made in the currency in which the sum in respect of which the interest is payable was denominated when that interest accrued.

  

	 	(d)	Each payment in respect of costs, expenses or Taxes shall be made in the currency in which the costs, expenses or Taxes are incurred. 

  

	 	(e)	Any amount expressed to be payable in a currency other than the Base Currency shall be paid in that other currency. 

  

	29.9	Change of currency 

  

	 	(a)	Unless otherwise prohibited by law, if more than one currency or currency unit are at the same time recognised by the central bank of any country as the lawful currency of that
country, then: 

  

	 	(i)	any reference in the Finance Documents to, and any obligations arising under the Finance Documents in, the currency of that country shall be translated into, or paid in, the
currency or currency unit of that country designated by the Agent (after consultation with the Borrowers); and 

  

 - 66 - 

	 	(ii)	any translation from one currency or currency unit to another shall be at the official rate of exchange recognised by the central bank for the conversion of that currency or
currency unit into the other, rounded up or down by the Agent (acting reasonably). 

  

	 	(b)	If a change in any currency of a country occurs, this Agreement will, to the extent the Agent (acting reasonably and after consultation with the Borrowers) specifies to be
necessary, be amended to comply with any generally accepted conventions and market practice in the Relevant Interbank Market and otherwise to reflect the change in currency. 

  

	30.	SET-OFF 

  
 After the occurrence of an Event of Default that is continuing, a Finance Party may set off any matured obligation due from an Obligor under the Finance
Documents (to the extent beneficially owned by that Finance Party) against any matured obligation owed by that Finance Party to that Obligor, regardless of the place of payment, booking branch or currency of either obligation. If the obligations are
in different currencies, the Finance Party may convert either obligation at a market rate of exchange in its usual course of business for the purpose of the set-off. 
  

	31.	NOTICES 

  

	31.1	Communications in writing 

  
 Any communication to be made under or in connection with the Finance Documents shall be made in writing and, unless otherwise stated, may be made by fax
or letter. 
  

	31.2	Addresses 

  
 The address and fax number (and the department or officer, if any, for whose attention the communication is to be made) of each Party for any
communication or document to be made or delivered under or in connection with the Finance Documents is: 
  

	 	(a)	in the case of the Principal Guarantor, that identified with its name below; 

  

	 	(b)	in the case of each Lender or any other Obligor, that notified in writing to the Agent on or prior to the date on which it becomes a Party; and 

  

	 	(c)	in the case of the Agent, that identified with its name below, 

  
 or any substitute address or fax number or department or officer as the Party may notify to the Agent (or the Agent may notify to the other Parties, if a
change is made by the Agent) by not less than five Business Days’ notice. 
  

	31.3	Delivery 

  

	 	(a)	Any communication or document made or delivered by one person to another under or in connection with the Finance Documents will only be effective: 

  

	 	(i)	if by way of fax, when received in legible form; or 

  

	 	(ii)	if by way of letter, when it has been left at the relevant address or five Business Days after being deposited in the post postage prepaid in an envelope addressed to it at that
address. 

  
 and, if a particular department or
officer is specified as part of its address details provided under Clause 31.2 (Addresses), if addressed to that department or officer. 
  

 - 67 - 

	 	(b)	Any communication or document to be made or delivered to the Agent will be effective only when actually received by the Agent and then only if it is expressly marked for the
attention of the department or officer identified with the Agent’s signature below (or any substitute department or officer as the Agent shall specify for this purpose). 

  

	 	(c)	All notices from or to an Obligor shall be sent through the Agent. 

  

	 	(d)	Any communication or document made or delivered to the Principal Guarantor in accordance with this Clause will be deemed to have been made or delivered to each of the Obligors.

  

	31.4	Notification of address and fax number 

  
 Promptly upon receipt of notification of an address or fax number or change of address or fax number pursuant to Clause 31.2 (Addresses) or
changing its own address or fax number, the Agent shall notify the other Parties. 
  

	31.5	Banking Agency 

  
 Each of the Borrowers confirms that Standard Commercial Tobacco Services (UK) Limited (“SCTSUK) is duly authorised to act as its agent in
connection with the delivery of Utilisation Requests and day to day administration of the Facility and that the Finance Parties are entitled in all respects to treat a communication from SCTSUK with respect to a Borrower as if it had been delivered
by that Borrower personally. For the avoidance of doubt, SCTSUK shall have no authority to act on behalf of SCC, nor shall it be entitled to execute or deliver any certificate required to be delivered under clauses 20.2 (Compliance
Certificate), 20.4 (Borrowing Base Certificate), 20.5 (Uncommitted Inventory), 20.7 (Financial Information) or 20.8 (Notification of Default). 
  
 The Finance Parties shall at all times be entitled to assume that the individuals most recently notified to the Agent in
writing (with a copy to all Lenders) as being the authorised signatories of SCTSUK are the individuals currently authorised to execute documentation and give instructions on behalf of SCTSUK. 
  

	31.6	Electronic Communication 

  

	 	(a)	Any communication to be made between the Agent and a Lender under or in connection with the Finance Documents may be made by electronic mail or other electronic means, if the Agent
and the relevant Lender: 

  

	 	(i)	agree that, unless and until notified to the contrary, this is to be an accepted form of communication; 

  

	 	(ii)	notify each other in writing of their electronic mail address and/or any other information required to enable the sending and receipt of information by that means; and

  

	 	(iii)	notify each other of any change to their address or any other such information supplied by them. 

  

	 	(b)	Any electronic communication made between the Agent and a Lender will be effective only when actually received in readable form and in the case of any electronic communication made
by a Lender to the Agent only if it is addressed in such a manner as the Agent shall specify for this purpose. 

  

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	31.7	English language 

  

	 	(a)	Any notice given under or in connection with any Finance Document must be in English. 

  

	 	(b)	All other documents provided under or in connection with any Finance Document must be: 

  

	 	(c)	in English; or 

  

	 	(d)	if not in English, and if so required by the Agent, accompanied by a certified English translation and, in this case, the English translation will prevail unless the document is a
constitutional, statutory or other official document. 

  

	32.	CALCULATIONS AND CERTIFICATES 

  

	32.1	Accounts 

  
 In any litigation or arbitration proceedings arising out of or in connection with a Finance Document, the entries made in the accounts maintained by a
Finance Party are prima facie evidence of the matters to which they relate. 
  

	32.2	Certificates and Determinations 

  
 Any certification or determination by a Finance Party of a rate or amount under any Finance Document is, in the absence of manifest error, conclusive
evidence of the matters to which it relates. 
  

	32.3	Day count convention 

  
 Any interest, commission or fee accruing under a Finance Document will accrue from day to day and is calculated on the basis of the actual number of days
elapsed and a year of 360 days or, in any case where the practice in the Relevant Interbank Market differs, in accordance with that market practice. 
  

	33.	PARTIAL INVALIDITY 

  
 If, at any time, any provision of the Finance Documents is or becomes illegal, invalid or unenforceable in any respect under any law of any jurisdiction,
neither the legality, validity or enforceability of the remaining provisions nor the legality, validity or enforceability of such provision under the law of any other jurisdiction will in any way be affected or impaired. 
  

	34.	REMEDIES AND WAIVERS 

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

	35.	AMENDMENTS AND WAIVERS 

  

	35.1	Required consents 

  

	 	(a)	Subject to Clause 35.2 (Exceptions) any term of the Finance Documents may be amended or waived only with the consent of the Majority Lenders and the Obligors and any such
amendment or waiver will be binding on all Parties. 

  

 - 69 - 

	 	(b)	The Agent may effect, on behalf of any Finance Party, any amendment or waiver permitted by this Clause. 

  

	35.2	Exceptions 

  

	 	(a)	An amendment or waiver that has the effect of changing or which relates to: 

  

	 	(i)	the definition of “Majority Lenders” in Clause 1.1 (Definitions); 

  

	 	(ii)	an extension to the date of payment of any amount under the Finance Documents; 

  

	 	(iii)	a reduction in the Margin or a reduction in the amount of any payment of principal, interest, fees or commission payable; 

  

	 	(iv)	an increase in or an extension of any Commitment; 

  

	 	(v)	any provision which expressly requires the consent of all the Lenders; or 

  

	 	(vi)	Clause 2.2 (Finance Parties’ rights and obligations), Clause 24 (Changes to the Lenders) or this Clause 35, shall not be made without the prior consent of all the
Lenders. 

  

	 	(b)	An amendment or waiver which relates to the rights or obligations of the Agent or the Arranger may not be effected without the consent of the Agent or the Arranger.

  

	36.	COUNTERPARTS 

  
 Each Finance Document may be executed in any number of counterparts, and this has the same effect as if the signatures on the counterparts were on a
single copy of the Finance Document. 
  

 - 70 - 

 SECTION 12 
  
 GOVERNING LAW AND ENFORCEMENT 
  

	37.	GOVERNING LAW 

  
 This Agreement is governed by English law. 
  

	38.	ENFORCEMENT 

  

	38.1	Jurisdiction 

  

	 	(a)	The courts of England have exclusive jurisdiction to settle any dispute arising out of or in connection with this Agreement (including a dispute regarding the existence, validity or
termination of this Agreement) (a “Dispute”). 

  

	 	(b)	The Parties agree that the courts of England are the most appropriate and convenient courts to settle Disputes and accordingly no Party will argue to the contrary.

  

	 	(c)	This Clause 38.1 is for the benefit of the Finance Parties only. As a result, no Finance Party shall be prevented from taking proceedings relating to a Dispute in any other courts
with jurisdiction. To the extent allowed by law, the Finance Parties may take concurrent proceedings in any number of jurisdictions. 

  

	38.2	Service of process 

  
 Without prejudice to any other mode of service allowed under any relevant law, each Obligor (other than an Obligor incorporated in England and Wales):

  

	 	(a)	irrevocably appoints SCTCUK as its agent for service of process in relation to any proceedings before the English courts in connection with any Finance Document; and

  

	 	(b)	agrees that failure by a process agent to notify the relevant Obligor of the process will not invalidate the proceedings concerned. 

  
 This Agreement has been entered into on the date stated at the beginning of this
Agreement. 
  

 - 71 - 

 SCHEDULE 1 
  
 THE ORIGINAL PARTIES 
  
 Part I 
  
 The Obligors 
  

			
	 Name of Borrower

	  	 Registration number (or equivalent, if any)

		
	 Standard Commercial Tobacco Co., Inc.
	  	56-0323420
		
	 Standard Commercial Tobacco Company (UK) Limited
	  	1411968
		
	 Trans-Continental Leaf Tobacco Corporation Limited
	  	H.54/14
		
	 Name of Guarantor

	  	 Registration number (or equivalent, if any)

		
	 Standard Commercial Tobacco Co., Inc.
	  	56-0323420
		
	 Standard Commercial Tobacco Company (UK) Limited
	  	1411968
		
	 Trans-Continental Leaf Tobacco Corporation Limited
	  	H.54/14
		
	 Standard Commercial Corporation
	  	Federal Tax Identification Number 13/1337610

  

 - 72 - 

 Part II 
  
 The Original Lenders - other than UK Non-Bank Lenders 
  

				
	 Name of Original Lender

	  	Commitment

	 Deutsche Bank AG in Hamburg
	  	$	30,000,000
	 ING BHF-Bank AG, Hamburg
	  	$	10,000,000
	 ING Bank N.V., London Branch
	  	$	20,000,000
	 Fortis Project Finance Limited
	  	$	30,000,000
	 Standard Chartered Bank
	  	$	30,000,000
	 ABN Amro Bank N.V., Amsterdam Branch
	  	$	30,000,000
	 Total
	  	$	150,000,000

  

 - 73 - 

 Part III 
  

The Original Lenders - UK Non-Bank Lenders 
  

			
	 Name of Original Lender

	 	 Commitment

  

 - 74 - 

 SCHEDULE 2 
  
 CONDITIONS PRECEDENT 
  
 Conditions Precedent to Initial Utilisation 
  

	1.	Obligors 

  

	 	(a)	A copy of the constitutional documents of each Obligor and, in the case of each of the Principal Guarantor and SCTCI, a copy of its certificate of good standing.

  

	 	(b)	A copy of a resolution of the board of directors of each Obligor: 

  

	 	(i)	approving the terms of, and the transactions contemplated by, the Finance Documents to which it is a party and resolving that it execute the Finance Documents to which it is a
party; 

  

	 	(ii)	authorising a specified person or persons to execute the Finance Documents to which it is a party on its behalf; 

  

	 	(iii)	authorising a specified person or persons, on its behalf, to sign and/or despatch all documents and notices (including, if relevant, any Utilisation Request) to be signed and/or
despatched by it under or in connection with the Finance Documents to which it is a party; and 

  

	 	(iv)	(if the Obligor is also a Borrower) approving (or ratifying if already entered into) its agency agreement referred to at paragraph (e) below. 

  

	 	(c)	A specimen of the signature of each person authorised by the resolution referred to in paragraph (b) above. 

  

	 	(d)	(i) a copy, certified by an officer of TCLTC, of the agency agreement between TCLTC and Standard Commercial Tobacco Services (UK) Limited relating to borrowings by TCLTC, together
with details and specimen signatures of the persons authorised to operate such agency agreement. 

  

	 	(ii)	a copy, certified by an officer of SCTCUK, of the agency agreement between SCTCUK and Standard Commercial Tobacco Services (UK) Limited relating to borrowings by SCTCUK, together
with details and specimen signatures of the persons authorised to operate such agency agreement. 

  

	 	(iii)	a copy, certified by an officer of SCTCI, of the agency agreement between SCTCI and Standard Commercial Tobacco Services (UK) Limited relating to borrowings by SCTCI, together with
details and specimen signatures of the persons authorised to operate such agency agreement. 

  

	 	(e)	A certificate of the Principal Guarantor (signed by an officer) dated no earlier than 7 days prior to the date of the proposed first Utilisation confirming that borrowing or
guaranteeing, as appropriate, the Total Commitments would not cause any borrowing, guaranteeing or similar limit binding on any Obligor to be exceeded. 

  

	 	(f)	A certificate of an authorised signatory of the relevant Obligor dated no earlier than 7 days prior to the date of the proposed Initial Utilisation certifying that each copy
document relating to it specified in this Schedule 2 is correct, complete and in full force and effect as at a date no earlier than the date of this Agreement. 

  

 - 75 - 

	2.	Legal opinions 

  

	 	(a)	In relation to SCTCUK, a legal opinion of Lovells, legal advisers to the Agent in England, substantially in the form distributed to the Original Lenders prior to signing this
Agreement. 

  

	 	(b)	In relation to each of the Principal Guarantor and SCTCI, a legal opinion of Narron, Holdford Babb, substantially in the form distributed to the Original Lenders prior to signing
this Agreement. 

  

	 	(c)	In relation to TCLTC, a legal opinion of Batliner & Konrad, substantially in the form distributed to the Original Lenders prior to signing this Agreement.

  

	3.	Other documents and evidence 

  

	 	(a)	A copy of any other Authorisation or other document, opinion or assurance which the Agent considers to be necessary or desirable (if it has notified the Principal Guarantor
accordingly) in connection with the entry into and performance of the transactions contemplated by any Finance Document or for the validity and enforceability of any Finance Document. 

  

	 	(b)	The Original Financial Statements of each Obligor. 

  

	 	(c)	Evidence that the fees, costs and expenses then due from the Principal Guarantor pursuant to Clause 12 (Fees) and Clause 17 (Costs and expenses) have been paid or will
be paid by the first Utilisation Date. 

  

	 	(d)	A copy of an agreement signed by each of the Obligors and each other party to the MFA cancelling each of the facilities regulated by the MFA and releasing all security granted by
any member of the Group in respect of facilities regulated by the MFA. 

  

	 	(e)	A completed signed Utilisation Request relating to the First Utilisation containing irrevocable transfer orders in order to repay all borrowings under the facilities regulated by
the MFA. 

  

	 	(f)	A Borrowing Base Certificate as at a date no earlier than 30 days before the proposed date of the First Utilisation. 

  

	 	(g)	The Principal Guarantor having issued the Bonds and confirmation by the Principal Guarantor that the existing bonds issued by the Principal Guarantor and SCTCI will be prepaid no
later than 3 May 2004. 

  

	 	(h)	Written confirmation from each of Dresdner Bank AG, Fortis Bank S.A./N.V., Standard Chartered Bank, Deutsche Bank AG in Hamburg and ING BHF-Bank AG that it has in place with the
Borrowers arrangements satisfactory to it in relation to bonds, guarantees or similar contingent obligations issued by it in its capacity as a lender under the MFA. 

  

	 	(i)	a notarised form of this Agreement or a document incorporating the jurisdiction clause from this Agreement duly executed on behalf of all parties to this Agreement such that this
Agreement constitutes a public document for the purposes of Liechtenstein law. 

  

 - 76 - 

 SCHEDULE 3 
  
 UTILISATION REQUEST 
  
 From: [Borrower] 
  
 To: [Agent] 
  
 Dated: 
  
 Dear Sirs 
  
 [Company] – [        ]
Facility Agreement 
  
 dated
[            ] (the “Agreement”) 
  

	 	1.	We refer to the Agreement. This is a Utilisation Request. Terms defined in the Agreement have the same meaning in this Utilisation Request unless given a different meaning in this
Utilisation Request. 

  

	 	2.	We wish to borrow a Loan on the following terms: 

  

			
	 Proposed Utilisation Date:
	  	[        ] (or, if that is not a Business Day, the next Business Day)
		
	 Currency of Loan:
	  	 [dollars]/[euros]

		
	 Amount:
	  	 [        ] or, if less, the Available Facility

		
	 Interest Period:
	  	 [        ]

  

	 	3.	We confirm that each condition specified in Clause 4.2 (Further conditions precedent) is satisfied on the date of this Utilisation Request. 

  

	 	4.	The proceeds of this Loan should be credited to [account]. 

  

	 	5.	This Utilisation Request is irrevocable. 

  

	
	Yours faithfully
	
	 
	

	authorised signatory for
	[name of relevant Borrower]

  

 - 77 - 

 SCHEDULE 4 
  
 MANDATORY COST FORMULAE 
  

	1.	The Mandatory Cost is an addition to the interest rate to compensate the Lenders for the cost of compliance with (a) the requirements of the Bank of England and/or the Financial
Services Authority (or, in either case, any other Governmental Authority which replaces all or any of its functions); or (b) the requirements of the European Central Bank. 

  

	2.	On the first day of each Interest Period (or as soon as possible thereafter) the Agent shall calculate, as a percentage rate, a rate (the “Additional Cost Rate”)
for each Lender in accordance with the following provisions of this Schedule. The Mandatory Cost will be the rate calculated by the Agent to be the weighted average of the Lenders’ Additional Cost Rates (weighted in proportion to the percentage
participation of each Lender in the relevant Loans) and will be expressed as a percentage rate per annum. 

  

	3.	The Additional Cost Rate for any Lender lending from a Facility Office in a Participating Member State will be the percentage notified by that Lender to the Agent. This percentage
will be certified by that Lender in its notice to the Agent to be its reasonable determination of the cost (expressed as a percentage of that Lender’s participation in all Loans made from that Facility Office) of complying with the minimum
reserve requirements of the European Central Bank in respect of loans made from that Facility Office. 

  

	4.	The Additional Cost Rate for any Lender lending from a Facility Office in the United Kingdom will be calculated by the Agent as the per cent. per annum rate resulting from the
application of the formulae: 

  

			
	 (a)    for Sterling Loans:
	  	AB + C(B - D) + E x 0.01
	 	  	 100 - (A + C)

		
	 (b)    for Loans in any other currency:
	  	 E x 0.01

	 	  	     300

  
 where: 
  

	 	A	is the percentage of Eligible Liabilities (assuming these to be in excess of any stated minimum) which that Lender is from time to time required to maintain as an interest free cash
ratio deposit with the Bank of England to comply with cash ratio requirements; 

  

	 	B	is the percentage rate of interest (excluding the Margin and the Mandatory Cost and, if the Loan is an Unpaid Sum, the additional rate of interest specified in paragraph (a) of
Clause 9.3 (Default interest)) payable for the relevant Interest Period on the Loan; 

  

	 	C	is the percentage (if any) of Eligible Liabilities which that Lender is required from time to time to maintain as interest bearing Special Deposits with the Bank of England;

  

	 	D	is the percentage rate per annum payable by the Bank of England to the Agent on interest bearing Special Deposits; and 

  

	 	E	is designed to compensate Lenders for amounts payable under the Fees Rules and is calculated by the Agent as being the average of the most recent rates of charge supplied by the
Reference Banks to the Agent pursuant to paragraph 7 below and expressed in pounds per £1,000,000. 

  

 - 78 - 

	5.	For the purposes of this Schedule: 

  

	 	(a)	“Eligible Liabilities” and “Special Deposits” have the meanings given to them from time to time under or pursuant to the Bank of England Act 1998
or (as may be appropriate) by the Bank of England. 

  

	 	(b)	“Fees Rules” means the rules on periodic fees contained in the FSA Supervision Manual or such other law or regulation as may be in force from time to time in
respect of the payment of fees for the acceptance of deposits; 

  

	 	(c)	“Fee Tariffs” means the fee tariffs specified in the Fees Rules under the activity group A.1 Deposit acceptors (ignoring any minimum fee or zero rated fee required
pursuant to the Fees Rules but taking into account any applicable discount rate); and 

  

	 	(d)	“Tariff Base” has the meaning given to it in, and will be calculated in accordance with, the Fees Rules. 

  

	6.	In application of the above formulae, A, B, C and D will be included in the formulae as percentages (i.e. 5 per cent. will be included in the formula as 5 and not as 0.05). A
negative result obtained by subtracting D from B shall be taken as zero. The resulting figures shall be rounded to four decimal places. 

  

	7.	If requested by the Agent, each Reference Bank shall, as soon as practicable after publication by the Financial Services Authority, supply to the Agent, the rate of charge payable
by that Reference Bank to the Financial Services Authority pursuant to the Fees Rules in respect of the relevant financial year of the Financial Services Authority (calculated for this purpose by that Reference Bank as being the average of the Fee
Tariffs applicable to that Reference Bank for that financial year) and expressed in pounds per £1,000,000 of the Tariff Base of that Reference Bank. 

  

	8.	Each Lender shall supply any information required by the Agent for the purpose of calculating its Additional Cost Rate. In particular, but without limitation, each Lender shall
supply, in writing on or prior to the date on which it becomes a Lender, its jurisdiction of incorporation and the jurisdiction of its Facility Office and any other information that the Agent may reasonably require for such purpose. Each Lender
shall promptly notify the Agent in writing of any change to the information provided by it pursuant to this paragraph. 

  

	9.	The percentages of each Lender for the purpose of A and C above and the rates of charge of each Reference Bank for the purpose of E above shall be determined by the Agent based upon
the information supplied to it pursuant to paragraphs 7 and 8 above and on the assumption that, unless a Lender notifies the Agent to the contrary, each Lender’s obligations in relation to cash ratio deposits and Special Deposits are the same
as those of a typical bank from its jurisdiction of incorporation with a Facility Office in the same jurisdiction as its Facility Office. 

  

	10.	The Agent shall have no liability to any person if such determination results in an Additional Cost Rate which over or under compensates any Lender and shall be entitled to assume
that the information provided by any Lender or Reference Bank pursuant to paragraphs 3, 7 and 8 above is true and correct in all respects. 

  

	11.	The Agent shall distribute the additional amounts received as a result of the Mandatory Cost to the Lenders on the basis of the Additional Cost Rate for each Lender based on the
information provided by each Lender and each Reference Bank pursuant to paragraphs 3, 7 and 8 above. 

  

 - 79 - 

	12.	Any determination by the Agent pursuant to this Schedule in relation to a formula, the Mandatory Cost, an Additional Cost Rate or any amount payable to a Lender shall, in the
absence of manifest error, be conclusive and binding on all Parties. 

  
 The Agent may from time to time, after consultation with the Principal Guarantor and the Lenders, determine and notify to all Parties any amendments which are required to be made to this Schedule in order to comply with any change in law,
regulation or any requirements from time to time imposed by the Bank of England, the Financial Services Authority or the European Central Bank (or, in any case, any other authority which replaces all or any of its functions). Any such determination
shall, in the absence of manifest error, be conclusive and binding on all Parties. 
  

 - 80 - 

 SCHEDULE 5 
  

FORM OF TRANSFER CERTIFICATES 
  
 To: [            ] as Agent

  
 From: [The Existing Lender] (the “Existing Lender”)
and [The New Lender] (the “New Lender”) 
  
 Dated:

  
 [Company] –
[        ] Facility Agreement 
  
 dated [        ] (the “ Agreement”) 
  

	1.	We refer to the Agreement. This is a Transfer Certificate. Terms defined in the Agreement have the same meaning in this Transfer Certificate unless given a different meaning in this
Transfer Certificate. 

  

	2.	We refer to Clause 24.5 (Procedure for transfer): 

  

	 	(a)	The Existing Lender and the New Lender agree to the Existing Lender transferring to the New Lender by novation all or part of the Existing Lender’s Commitment, rights and
obligations referred to in the Schedule in accordance with Clause 24.5 (Procedure for transfer). 

  

	 	(b)	The proposed Transfer Date is [            ]. 

  

	 	(c)	The Facility Office and address, fax number and attention details for notices of the New Lender for the purposes of Clause 31.2 (Addresses) are set out in the Schedule.

  

	3.	The New Lender expressly acknowledges the limitations on the Existing Lender’s obligations set out in paragraph (c) of Clause 24.4 (Limitation of responsibility of Existing
Lenders). 

  

	4.	[The New Lender confirms that the person beneficially entitled to interest payable to that Lender in respect of an advance under a Finance Document is either:

  

	 	(a)	a company resident in the United Kingdom, or a partnership each member of which is a company resident in the United Kingdom, for United Kingdom tax purposes; or

  

	 	(b)	a company not so resident in the United Kingdom which carries on a trade in the United Kingdom through a branch or agency and interest payable in respect of an advance under a
Finance Document falls to be brought into account in computing the chargeable profits of that company for the purposes of section 11(2) of the Taxes Act.]1 

  

	[4/5].	This Transfer Certificate may be executed in any number of counterparts and this has the same effect as if the signatures on the counterparts were on a single copy of this Transfer
Certificate. 

  

	[5/6]	This Transfer Certificate is governed by English law. 

  

	1	Include if New Lender comes within paragraph (ii) of the definition of Qualifying Lender in
Clause 13.1 (Definitions) 

  

 - 81 - 

 THE SCHEDULE 
  
 Commitment/rights and obligations to be transferred 
  
 [insert relevant details] 
 [Facility Office address, fax number and attention details for notices and account details for 
 payments,] 
  

			
	 [Existing Lender]
	  	[New Lender]
		
	 By:
	  	By:

  
 This
Transfer Certificate is accepted by the Agent and the Transfer Date is confirmed as [            ]. 
  

[Agent] 
  
 By: 
  

 - 82 - 

 SCHEDULE 6 
  
 PART 1 
  
 FORM OF COMPLIANCE CERTIFICATE TO BE GIVEN
BY PRINCIPAL GUARANTOR (CLAUSE 20.2(B)) 
  
 To: [            ] as Agent 
  
 From: Standard Commercial Corporation 
  
 Dated: 
  
 Dear Sirs 
  
 Facility Agreement dated
[            ] made between Standard Commercial Corporation as Principal Guarantor, Standard Commercial Tobacco Company, Inc, Standard Commercial Tobacco Company (UK) Limited and
Trans-Continental Leaf Tobacco Corporation Limited as Borrowers, Deutsche Bank AG in Hamburg as Arranger, ING Bank N.V. as Co-Arranger and Facility Agent and the Lenders named therein (the “ Agreement”) 
  

	1.	We refer to the Agreement. This is a Compliance Certificate delivered in accordance with clause 20.2(b) of the Agreement. Terms defined in the Agreement have the same meaning when
used in this Compliance Certificate unless given a different meaning in this Compliance Certificate. 

  

	2.	This Compliance Certificate is given in connection with [insert details of relevant financial statements] We confirm that as at [date of relevant financial statements] all financial
covenants contained in clause 21 are fully complied with and we set out below computations setting out in reasonable detail our compliance with those covenants as at the date as at which those financial statements were drawn up.

  
 [insert calculations] 
  

	3.	We confirm that no Default is continuing. 

  

	
	Signed:        
                                
	 Officer

	 Of

	 Standard Commercial Corporation

  

 - 83 - 

 PART 2 
  
 FORM OF COMPLIANCE CERTIFICATE TO
BE GIVEN BY AUDITORS (CLAUSE 20.2(B)) 
  
 [On letterhead of Auditors] 
  

	To:	The Board of Directors 

 Standard Commercial Corporation

 Wilson, 
 North Carolina

  
 and to: ING Bank N.V., London Branch as Agent 
  
 [Date] 
  
 Re: Auditor’s Certificate in respect of the $150 million facility agreement (the “Agreement”) dated
[            ] among Standard Commercial Tobacco Co., Inc., Standard Commercial Tobacco Company (UK) Limited and Trans-Continental Leaf Tobacco Corporation Limited (the
“Borrowers”), Standard Commercial Corporation (the “Principal Guarantor”) and the Lenders 
  
 Dear [            ] 
  

We have audited, in accordance with auditing standards generally accepted in the United States of America, the balance sheet of Standard Commercial Corporation as of
March 31, 200[  ], and the related statements of income and comprehensive income (loss), shareholders’ equity and cash flows for the year then ended, and have issued our report thereon dated May _, 200[  ]. 
  
 In connection with our audit, nothing came to our attention that caused us to believe that
the company failed to comply with the terms, covenants, provisions or conditions of Section 21.1 to 21.8 inclusive, of the Facility Agreement dated             , 200[  ],
with amongst others ING Bank N.V. London Branch as Agent for the Lenders insofar as they relate to financial and accounting matters. However, our audit was not directed primarily toward obtaining knowledge of noncompliance with such Sections.

  
 This report is intended solely for the information and use of the boards of
directors and management of Standard Commercial Corporation and ING Bank N.V. London Branch as Agent for the Lenders and is not intended to be and should not be used by anyone other than these specified parties. 
  

	
	 Yours sincerely,

	
	  
	

	 [Name: ]

	
	 For and on behalf of [Auditors]

  

 - 84 - 

 SCHEDULE 7 
  
 EXISTING SECURITY 
  

			
	 Name of Obligor

	  	 Security

	SCTCUK	  	Guarantee and Debenture dated 5 May 1995 in favour of Fortis Bank (Nederland) N.V as Security Agent
		
	SCTCUK	  	Guarantee and Debenture dated 11 May 1995 in favour of Fortis Bank (Nederland) N.V as Security Agent
		
	SCTCUK	  	Supplemental Agreement to Warehouse Locking Agreement
		
	SCTCUK	  	General Letter of Pledge dated 30 May 1995 in favour of Fortis Bank (Nederland) N.V. as Security Agent
		
	SCTCUK	  	Supplemental Deed dated 31 July 1997 in favour of Fortis Bank (Nederland) N.V. as Security Agent
		
	SCTCUK	  	Charge of Shares dated 30 May 1995 relating to shares in Stancom Tobacco Company (Malawi) Limited and Siemssen Threshie (Malawi) Limited
		
	SCTCUK	  	Warehouse Locking Agreement dated 30 May 1995 with Tabaknatie in favour of Fortis Bank (Nederland) N.V. as Security Agent
		
	SCTCUK	  	Supplemental Deed to General Pledge dated 31 July 1997 in favour of Fortis Bank (Nederland) N.V. as Security Agent
		
	SCTCUK	  	Cash Charge dated 16 July 1996 in favour of Fortis Bank (Nederland) N.V. as Security Agent
		
	SCTCUK	  	Cash Charge dated 23 August 1996 in favour of Fortis Bank (Nederland) N.V. as Security Agent
		
	SCTCUK	  	Supplemental Deed dated 31 July 1997 in favour of Fortis Bank (Nederland) N.V. as Security Agent
		
	SCTCUK/Advhus Gestion SNC	  	Share Pledge dated 5 May 1995 relating to 75% of the shares in Standard Wool France S.A. in favour of Fortis Bank (Nederland) N.V. as Security Agent
		
	SCTCUK/TCLTC/SCTCI	  	The general terms and conditions of Fortis Bank SA/NV provide for a pledge on all goods and documents of title which are in the possession of or will come into the possession of the
Banks
		
	SCTCUK/TCLTC/SCTCI	  	The general terms and conditions of Norddeutsche Landesbank Girozentrale provide for a pledge on all goods and documents of title which are in the possession of or will come into the
possession of the Banks
		
	Standard Wool, Inc	  	Share Pledge dated 5 May 1995 relating to 25% of the shares in Standard Wool France S.A. in favour of Fortis Bank (Nederland) N.V. as Security Agent

  

 - 85 - 

			
	TCLTC	  	Guarantee and Debenture dated 5 May 1995 in favour of Fortis Bank (Nederland) N.V as Security Agent
		
	TCLTC	  	Supplemental Agreement to General Letter of Pledge dated 30 May 1995 in favour of Fortis (Nederland) N.V
		
	TCLTC	  	Security Agreement relating to Receivables dated 30 May 1995 in favour of Fortis Bank (Nederland) N.V. as Security Agent
		
	TCLTC	  	Charge over Shares relating to shares in Stancom Tobacco (Private) Limited in favour of Fortis Bank (Nederland) N.V. as Security Agent
		
	TCLTC	  	General Letter of Pledge dated 30 May 1995 in favour of Fortis Bank (Nederland) N.V. as Security Agent
		
	TCLTC	  	Pledge dated 30 May 1995 relating to shares in Transhellenic Tobacco SA in favour of Fortis Bank (Nederland) N.V. as Security Agent
		
	TCLTC	  	Warehouse Locking Agreement dated 30 May 1995 with Tabaknatie in favour of Fortis Bank (Nederland) N.V. as Security Agent
		
	TCLTC	  	Supplemental Agreement to Warehouse Locking Agreement
		
	TCLTC	  	Security Agreement dated 26 February 1996 in respect of shares of TCLTC Jersey in favour of Fortis Bank (Nederland) N.V. as Security Agent
		
	TCLTC	  	Supplemental Agreement to the Security Agreement dated 26 February 1996 in respect of shares of TC Jersey in favour of Fortis (Nederland) N.V. as Security Agent
		
	TCLTC	  	Supplemental Deed dated 13 August 1997 to a security agreement dated 30 May 1995 in favour of Fortis (Nederland) N.V. as Security Agent
		
	TCLTC	  	Import Security Agreement in favour of ING BHF-Bank AG
		
	TCLTC	  	Supplemental Deed dated 13 August 1997 to a charge over shares dated 30 May 1995 in respect of shares in Stancom Tobacco (Private) Limited in favour of Fortis (Nederland) N.V. as Security
Agent
		
	TCLTC	  	Import Finanzierung (Mantelvertrag) mit sicherheitenbestellung in favour of Deutsche Bank AG
		
	TCLTC	  	Supplemental Agreement to Guarantee and Debenture dated 5 May 1996 in favour of Fortis (Nederland) N.V. as Security Agent
		
	 TCLTC Jersey,
 TCLTC, SCC
	  	Deed of Covenant dated 26 February 1996 in relation to TCLTC Jersey in favour of Fortis Bank (Nederland) N.V. as Security Agent

  

 - 86 - 

			
	TCLTC Jersey	  	Guarantee and Debenture dated 26 February 1996 in favour of Fortis Bank (Nederland) N.V. as Security Agent
		
	TC Jersey	  	Supplemental Agreement to Guarantee and debenture dated 16 February 1996 in favour of Fortis (Nederland) N.V. as Security Agent
		
	TCLTC/TCLTC Jersey	  	Receivables Sale Agreement dated 26 February 1996
		
	TCLTC, TC Jersey and SCTCI	  	Deed of Covenant in favour of Fortis (Nederland) N.V. as Security Agent
		
	SCTCI, General Processors, Inc. and W.A. Adams Company	  	Amended and restated Guaranty Agreement dated 31 July 1997 in favour of Bankers Trust Company as Security Agent
		
	SCTCI, General Processors, Inc. and W.A. Adams Company	  	Amended and Restated Security Agreement dated 31 July 1997 in favour of Bankers Trust Company as Security Agent
		
	SCTCI, General Processors, Inc. and W.A. Adams Company	  	Amended and restated Hazardous Materials Indemnity Agreement dated 12 July 1996 in favour of Bankers Trust Company as Security Agent
		
	SCTCI, General Processors, Inc. and W.A. Adams Company	  	Amended and restated Hazardous Materials Indemnity Agreement dated 31 July 1997 in favour of Bankers Trust Company as Security Agent
		
	SCTCI	  	Fourth Amended and restated Deed of Trust and Security Agreement dated October 2002 relating to property in Wilson County
		
	SCTCI	  	Fourth Amended and Restated Deed of Trust and Security Agreement dated October 2002 relating to property in Granville County
		
	SCTCI	  	Deed of Trust and Security Agreement dated 2 October 2003 relating to additional property in Wilson County
		
	SCTCI	  	Fourth Amended and Restated Mortgage and Security Agreement dated October 2002 relating to property in Washington County
		
	SCTCI	  	Loan and Security Agreement dated 2 May 1995 made between SCTCI, NationsBank and First Union Commercial Corporation
		
	SCTCI	  	Charge over Shares in SCTCUK and SCTSUK in favour of Fortis (Nederland) N.V. as Security Agent
		
	SCTCI	  	Pledge of shares in TCLTC in favour of Fortis (Nederland) N.V. as Security Agent
		
	Standard Commercial Tobacco Processors LLC, Standard Commercial Tobacco Operations LLC and Standard Commercial Tobacco Threshing LLC	  	Guaranty Agreement dated 7 June 2001 in favour of the Finance Parties and First Union Bank (now known as Wachovia Bank, National Association) as Security Agent

  

 - 87 - 

			
	Standard Commercial Tobacco Processors LLC, Standard Commercial Tobacco Operations LLC and Standard Commercial Tobacco Threshing LLC	  	Security Agreement dated 7 June 2001 in favour of the Finance Parties and First Union Bank (now known as Wachovia Bank, National Association) as Security Agent
		
	Stancom Tobacco (Malawi) Limited	  	Second Equitable Charge of Shares in Tobacco Processors (Malawi) Limited dated 30 May 1995 in favour of Fortis Bank (Nederland) N.V. as Security Agent
		
	The Obligors	  	Intercreditor and Subordination Agreement dated 15 July 1996 with NationsBank N.A. (South) as collateral and administrative agent for the Senior Lenders and Fortis Bank (Nederland) N.V. as
collateral and administrative agent for the Junior Lenders

  

 - 88 - 

 SCHEDULE 8 
  
 LMA FORM OF CONFIDENTIALITY UNDERTAKING 
  
 [Letterhead of Arranger] 
  
 To: 
  

			
	
	 	 
	 	 	[insert name of Potential Lender]
	
	 	 

  

	Re:	The Facilit[y/ies] 

  

			
	
	 	 
	 Borrower:
  
 Amount:
  
 Agent:
	 	 
	
	 	 

  
 Dear Sirs 
  
 We understand that you are considering participating in the Facilit[y/ies]. In consideration
of us agreeing to make available to you certain information, by your signature of a copy of this letter you agree as follows: 
  

	1.	CONFIDENTIALITY UNDERTAKING 

  

	1.1	You undertake: 

  

	 	(a)	to keep the Confidential Information confidential and not to disclose it to anyone except as provided for by paragraph 2 below and to ensure that the Confidential Information is
protected with security measures and a degree of care that would apply to your own confidential information; 

  

	 	(b)	to keep confidential and not disclose to anyone the fact that the Confidential Information has been made available or that discussions or negotiations are taking place or have taken
place between us in connection with the Facilit[y/ies]; 

  

	 	(c)	to use the Confidential Information only for the Permitted Purpose; 

  

	 	(d)	to use all reasonable endeavours to ensure that any person to whom you pass any Confidential Information (unless disclosed under paragraph 2(b) below) acknowledges and complies with
the provisions of this letter as if that person were also a party to it; and 

  

	 	(e)	not to make enquiries of any member of the Group or any of their officers, directors, employees or professional advisers relating directly or indirectly to the Facilit[y/ies].

  

 - 89 - 

	2.	PERMITTED DISCLOSURE 

  

	2.1	We agree that you may disclose Confidential Information: 

  

	 	(a)	to members of the Participant Group and their officers, directors, employees and professional advisers to the extent necessary for the Permitted Purpose and to any auditors of
members of the Participant Group; 

  

	 	(i)	where requested or required by any court of competent jurisdiction or any competent judicial, governmental, supervisory or regulatory body, 

  

	 	(ii)	where required by the rules of any stock exchange on which the shares or other securities of any member of the Participant Group are listed or 

  

	 	(iii)	where required by the laws or regulations of any country with jurisdiction over the affairs of any member of the Participant Group; or 

  

	 	(b)	with the prior written consent of us and the Borrower. 

  

	3.	NOTIFICATION OF REQUIRED OR UNAUTHORISED DISCLOSURE

  
 You agree (to the extent permitted by law) to
inform us of the full circumstances of any disclosure under paragraph 2(b) or upon becoming aware that Confidential Information has been disclosed in breach of this letter. 
  

	4.	RETURN OF COPIES 

  
 If we so request in writing, you shall return all Confidential Information supplied to you by us and destroy or permanently
erase all copies of Confidential Information made by you and use all reasonable endeavours to ensure that anyone to whom you have supplied any Confidential Information destroys or permanently erases such Confidential Information and any copies made
by them, in each case save to the extent that you or the recipients are required to retain any such Confidential Information by any applicable law, rule or regulation or by any competent judicial, governmental, supervisory or regulatory body or in
accordance with internal policy, or where the Confidential Information has been disclosed under paragraph 2(b) above. 
  

	5.	CONTINUING OBLIGATIONS 

  
 The obligations in this letter are continuing and, in particular, shall survive the termination of any discussions or negotiations between you and us.
Notwithstanding the previous sentence, the obligations in this letter shall cease 
  

	 	(a)	if you become a party to or otherwise acquire (by assignment or sub participation) an interest, direct or indirect in the Facilit[y/ies] or 

  

	 	(b)	twelve months after you have returned all Confidential Information supplied to you by us and destroyed or permanently erased all copies of Confidential Information made by you
(other than any such Confidential Information or copies which have been disclosed under paragraph 2 above (other than sub-paragraph 2(a)) or which, pursuant to paragraph 4 above, are not required to be returned or destroyed).

  

	6.	NO REPRESENTATION; CONSEQUENCES OF BREACH, ETC

  
 You acknowledge and agree that: 
  

	 	(a)	neither we nor any of our officers, employees or advisers (each a “Relevant Person”) 

  

	 	(i)	 make any representation or warranty, express or implied, as to, or assume any responsibility for, the accuracy, reliability or completeness of any of the 

  

 - 90 - 

	 	 
Confidential Information or any other information supplied by us or any member of the Group or the assumptions on which it is based or

  

	 	(ii)	shall be under any obligation to update or correct any inaccuracy in the Confidential Information or any other information supplied by us or any member of the Group or be otherwise
liable to you or any other person in respect to the Confidential Information or any such information; and 

  

	 	(b)	we or members of the Group may be irreparably harmed by the breach of the terms of this letter and damages may not be an adequate remedy; each Relevant Person or member of the Group
may be granted an injunction or specific performance for any threatened or actual breach of the provisions of this letter by you. 

  

	7.	NO WAIVER; AMENDMENTS, ETC 

  
 This letter sets out the full extent of your obligations of confidentiality
owed to us in relation to the information the subject of this letter. No failure or delay in exercising any right, power or privilege under this letter will operate as a waiver thereof nor will any single or partial exercise of any right, power or
privilege preclude any further exercise thereof or the exercise of any other right, power or privileges under this letter. The terms of this letter and your obligations under this letter may only be amended or modified by written agreement between
us. 
  

	8.	INSIDE INFORMATION 

  
 You acknowledge that some or all of the Confidential Information is or may be price-sensitive information and that the use of such information may be
regulated or prohibited by applicable legislation relating to insider dealing and you undertake not to use any Confidential Information for any unlawful purpose. 
  

	9.	NATURE OF UNDERTAKINGS 

  
 The undertakings given by you under this letter are given to us and (without implying any fiduciary obligations on our part)
are also given for the benefit of the Borrower and each other member of the Group. 
  

	10.	THIRD PARTY RIGHTS 

  

	 	(a)	Subject to paragraph 6 and paragraph 9 the terms of this letter may be enforced and relied upon only by you and us and the operation of the Contracts (Rights of Third Parties) Act
1999 is excluded. 

  

	 	(b)	Notwithstanding any provisions of this letter, the parties to this letter do not require the consent of any Relevant Person or any member of the Group to rescind or vary this letter
at any time. 

  

	11.	GOVERNING LAW AND JURISDICTION 

  
 This letter (including the agreement constituted by your acknowledgement of
its terms) shall be governed by and construed in accordance with the laws of England and the parties submit to the non-exclusive jurisdiction of the English courts. 
  

	12.	DEFINITIONS 

  
 In this letter (including the acknowledgement set out below): 
  
 “Confidential Information” means any information relating to the Borrower, the Group, and the Facilt[y/ies], provided to you by us or any
of our affiliates or advisers, in whatever 

  

 - 91 - 

 
form, and includes information given orally and any document, electronic file or any other way of representing or recording information which contains or is
derived or copied from such information but excludes information that 
  

	 	(a)	is or becomes public knowledge other than as a direct or indirect result of any breach of this letter or 

  

	 	(b)	is known by you before the date the information is disclosed to you by us or any of our affiliates or advisers or is lawfully obtained by you after that date, other than from a
source which is connected with the Group and which, in either case, as far as you are aware, has not been obtained in violation of, and is not otherwise subject to, any obligation of confidentiality; 

  
 “Group” means the Borrower and each of its holding
companies and subsidiaries and each subsidiary of each of its holding companies (as each such term is defined in the Companies Act 1985); 
  
 “Participant Group” means you, each of your holding companies and subsidiaries and each subsidiary of each of your holding companies (as
each such term is defined in the Companies Act 1985); and 
  
 “Permitted Purpose” means considering and evaluating whether to enter into the Facilit[y/ies]. 
  
 Please acknowledge your agreement to the above by signing and returning the enclosed copy. 
  
 Yours faithfully 
  

	
	
	  
	

	 For and on behalf of

  
 [Arranger] 
  

	To:	[Arranger] 

 The Borrower and each other member of the
Tobacco Group 
  
 We acknowledge and agree to the above: 
  

	
	
	  
	

	 For and on behalf of

  
 [Potential Lender] 
  

 - 92 - 

 SCHEDULE 9 
  
 TIMETABLES 
  

			
	 Delivery of a duly completed
 Utilisation Request (Clause
5.1
 (Delivery of a Utilisation Request)
	  	9.30am D-3
		
	 Agent notifies the Lenders of the Loan
 in accordance
with Clause 5.4
 (Lenders’ participation)
	  	11am D-3
		
	LIBOR is fixed	  	 Quotation Day
 as of 11:00
 a.m. London
 time

  
 “D” - Date of
Utilisation 
  

 - 93 - 

 SCHEDULE 10 
  
 WOOL GROUP COMPANIES 
  
 Standard Wool, Inc. 
 Advhus Gestion Société Civile 
 Standard Wool France S.A. 
 Peignage de la Tossee S.A. 
 Standard Wool Deutschland GmbH 
 Lanimex Trading GmbH 
 Prolaine Wollhandels GmbH 
 Lohmann & Company Wollhandell GmbH 
 Standard Wool Holdings S.A.

 Standard Wood Argentina 
 Pole Fueguina S.A. 
 Roca S.A. 
 Standard Wool (UK) Ltd 
 Jacomb Hoare (Bradford) Ltd 
 Thomas Chadwick & Sons Ltd 
 Standard Wool (Chile) S.A. 
 Tentler & Co. B.V. 
  

 - 94 - 

 SCHEDULE 11 
  
 EMPLOYEE BENEFIT PLANS (ERISA) 
  

			
	 Plan Number

	  	 Plan Name

	 501
	  	Standard Commercial Corporation Basic Group Life and AD&D Plan
	 502
	  	Standard Commercial Corporation Group Long-Term Disability Insurance Plan
	 505
	  	Standard Commercial Corporation Cafeteria Plan
	 506
	  	Standard Commercial Corporation Medical Reimbursement Plan
	 508
	  	Standard Commercial Corporation Comprehensive Major Medical Plan
	 509
	  	Standard Commercial Corporation Employee Benefit Trust
	 510
	  	Standard Commercial Tobacco Co., Inc. Union Medical Plan
	 001
	  	Standard Commercial Corporation Defined Benefit Pension Plan
	 002
	  	Standard Commercial Corporation Savings Incentive Plan
	 007
	  	Standard Commercial Tobacco Co., Inc. Union 401(k) Plan
	 -
	  	Standard Group UK Pension Scheme and Disability Scheme
	 -
	  	The Trans-Continental Leaf Tobacco 1995 Retirement Plan and Long Term Disability Scheme

  

 - 95 - 

 SCHEDULE 12 
  
 BORROWING BASE CERTIFICATE 
  
 Dated
[            ] 
  
 Delivered in respect of 3 Month period ending on [            ] 
  

								
	 (in millions of US $)

	  	Book
Value

	  	Advance
Rate

	 	 	Contribution
to
Borrowing
Base

	 Committed Inventory
	  	 	  	75	%	 	0.0
	 Uncommitted Inventory
	  	 	  	60	%	 	0.0
	 Net Trade Receivables
	  	 	  	85	%	 	0.0
	 Advances to Suppliers
	  	 	  	65	%	 	0.0
	 Less:
	  	 	  	 	 	 	 
	 Trade Payables (100%) add
	  	 	  	 	 	 	0.0
	 Wool Group Debt (100%) (from 18 months after date of the Agreement)
	  	 	  	 	 	 	0.0
	 Borrowing Base
	  	 	  	 	 	 	0.0
	 Consolidated Working Capital Debt
	  	 	  	 	 	 	0.0
	 Availability
	  	 	  	 	 	 	0.0
	 (Borrowing Base minus Consolidated Working Capital Debt)
	  	 	  	 	 	 	 
				
	 Financial covenant confirmations:
	  	 	  	 	 	 	 
				
	 (a)    Clause 21.4 (Subsidiary Working Capital Debt)
	  	 	  	 	 	 	0.0
	 (b)    Clause 21.5 (Uncommitted Inventory) Aggregate Uncommitted Inventory of the Tobacco
Group
	  	 	  	 	 	 	0.0
	 (c)    Clause 21.8 (Advances to Affiliates etc) Aggregate Borrowers’ advances to Affiliates or third party
suppliers of Tobacco
	  	 	  	 	 	 	0.0
	 Subsidiary Inventory add
	  	 	  	85	%	 	0.0
	 Subsidiary Receivables add
	  	 	  	85	%	 	0.0
	 Subsidiary Advances to Suppliers
	  	 	  	85	%	 	0.0
	 Total
	  	 	  	 	 	 	0.0

  

 - 96 - 

 SCHEDULE 13 
  
 EXCLUDED COMPANIES 
  
 W.A. Adams Group 
 W.A. Adams Company 
 Stancom Home Center 
 TransContinental STD Tanzania 
 N.G. Fleming Insurance Ltd 
 A. Chalmers India 
 Salomon Bros Tob. Ltd

 Leoni & Dent 
 G.S. Ladas
Cyprus 
 S Threhie, Jamaica 
 MTIL

 Esaltab, Zim 
 Stanfris, Zim

 Leaf Trading Company 
 T.C.
Fanning 
 Bela Trading, Germany 
 Trans-Continental Leaf Tobacco Corporation ZAO 
 Siam Tobacco Export Corporation Ltd 
 Tobacco Processors (Zimbabwe) Ltd 
 Adams
International Ltd 
 Trans-Continental Participacoes e Empreendimentos Ltda 
 Leaf Trading Company Ltd 
 Werkhof GmbH 
 The Wool Group Companies 
 Exportadora de Tobaco
de Honduras S.A. de C.V. 
 Carolina Trading Corporation 
 Jas. I. Miller Tobacco Co. Ltd. 
 Standard Commercial Tobacco Singapore Pte. Ltd. 
 Standard Commercial Services Inc. 
 Stancom
Tanzania (Jersey) Ltd. 
 Standard Commercial Tobacco Company of Canada Ltd. 
 N.G. Fleming Ltd. 
 Siemssen Threshie (Malawi) Ltd. 
  

 - 97 - 

 The Obligors 
  

			
		
	 Signed by:
	 	 Timothy S Price

	 	 	

	 Name:
	 	 Timothy S Price

  
 For and on behalf of 
  
 Standard Commercial Corporation 
  

			
		
	 Address:
	  	2201 Miller Road/ P.O. Box 450
		
	 	  	Wilson, North Carolina 27894
		
	 	  	USA
		
	 Tel No:
	  	+(252) 291 5507
		
	 Fax No:
	  	+(252) 237 1109
		
	 Attention:
	  	Vice President & Treasurer

  

			
		
	 Signed by:
	 	 Timothy S Price

	 	 	

	 Name:
	 	 Timothy S Price

  
 For and on behalf of 
  
 Standard Commercial Tobacco Co., Inc. 
  

			
		
	 Address:
	  	2201 Miller Road/ P.O. Box 450
		
	 	  	Wilson, North Carolina 27894
		
	 	  	USA
		
	 Tel No:
	  	+(252) 291 5507
		
	 Fax No:
	  	+(252) 237 1109
		
	 Attention:
	  	Assistant Treasurer

  

			
		
	 Signed by:
	 	 Timothy S Price

	 	 	

	 Name:
	 	 Timothy S Price

  
 For and on behalf of 
  
 Standard Commercial Tobacco Company (UK) Limited 
  

			
		
	 Address:
	  	Standard House
		
	 	  	Weyside Park
		
	 	  	Godalming GU7 1XE
		
	 	  	UK

  

 - 98 - 

			
		
	 Tel No:
	  	+44(0) 1483 257 257
		
	 Fax No:
	  	+44 (0) 1483 257 240
		
	 Attention:
	  	Assistant Treasurer

  

			
		
	 Signed by:
	 	 Timothy S Price

	 	 	

	 Name:
	 	 Timothy S Price

  
 For and on behalf of 
  
 Trans-Continental Leaf Tobacco Corporation Limited 
  

			
		
	 Address:
	  	Aeulestrasse 38
		
	 	  	FL-9490 Vaduz
		
	 	  	P.O. Box 583
		
	 	  	Liechtenstein
		
	 Tel No:
	  	236 52 11
		
	 Fax No:
	  	236 52 26
		
	 Attention:
	  	Mr Timm Schneider, Director

  
 The Arrangers 

			
		
	 Signed by:
	 	 Michael Ziesenitz Felix Ulbricht

	 	 	

	 Name:
	 	 Michael Ziesenitz Felix Ulbricht

  
 For and on behalf of 
  
 Deutsche Bank AG in Hamburg 
  

			
		
	 Address:
	  	Adolphsplatz 7
		
	 	  	20457 Hamburg
		
	 	  	Germany
		
	 Tel No:
	  	+49 (0) 40 3701 5580
		
	 Fax No:
	  	+49 (0) 40 3701 4684
		
	 Attention:
	  	Michael Ziesenitz/Felix Ulbricht

  

			
		
	 Signed by:
	 	 Alastair Houlding

	 	 	

	 Name:
	 	 Alastair Houlding

  
 For and on behalf of 
  

 - 99 - 

 ING Bank N.V., London Branch 
  

			
		
	 Address:
	  	60 London Wall
		
	 	  	London EC2M 5TP
		
	 	  	United Kingdom
		
	 Tel No:
	  	+44 (0) 20 7767 5917
		
	 Fax No:
	  	+44 (0) 20 7767 7323
		
	 Attention:
	  	Alastair Houlding

  
 The Agent 
  

			
		
	 Signed by:
	 	 Michael Clarke

	 	 	

	 Name:
	 	 Michael Clarke

  
 For and on behalf of 
  
 ING Bank N.V., London Branch 
  

			
		
	 Address:
	  	60 London Wall
		
	 	  	London EC2M 5TP
		
	 	  	United Kingdom
		
	 Tel No:
	  	+44 (0) 20 7767 5912
		
	 Fax No:
	  	+44 (0) 20 7767 7324
		
	 Attention:
	  	David Hobbs

  
 The Lenders 
  

			
		
	 Signed by:
	 	 VGA Zimmerman TD Buurma

	 	 	

	 Name:
	 	 VGA Zimmerman TD Buurma

  
 For and on behalf of 
  
 ABN Amro Bank N.V. 
  

			
		
	 Address:
	  	Gustav Mahlerlaan 10
		
	 	  	1082 PP Amsterdam
		
	 	  	The Netherlands
		
	 Tel No:
	  	+31 20 6287 130
		
	 Fax No:
	  	+31 20 6286 226

  

 - 100 - 

			
	 Attention:
	  	T.D. Buurma

  

			
		
	 Signed by:
	 	 Michael Ziesenitz Felix Ulbricht

	 	 	

	 Name:
	 	 Michael Ziesenitz Felix Ulbricht

  
 For and on behalf of 
  
 Deutsche Bank AG in Hamburg 
  

			
		
	 Address:
	  	Adolphsplatz 7
		
	 	  	20457 Hamburg
		
	 	  	Germany
		
	 Tel No:
	  	+49 (0) 40 3701 5580
		
	 Fax No:
	  	+49 (0) 40 3701 4684
		
	 Attention:
	  	Michael Ziesenitz/Felix Ulbricht

  

			
		
	 Signed by:
	 	 Louise Fein

	 	 	

	 Name:
	 	 Louise Fein

  
 For and on behalf of 
  
 Fortis Project Finance Limited 
  

			
		
	 Address:
	  	23 Camomile Street
		
	 	  	London EC3A 7PP
		
	 	  	United Kingdom
		
	 Tel No:
	  	+44 (0) 20 7444 8700
		
	 Fax No:
	  	+44 (0) 20 7444 8810
		
	 Attention:
	  	Victoria McFarlane

  

			
		
	 Signed by:
	 	 Alastair Houlding

	 	 	

	 Name:
	 	 Alastair Houlding

  
 For and on behalf of 
  
 ING Bank N.V., London Branch 
  

			
		
	 Address:
	  	60 London Wall
		
	 	  	London EC2M 5TP
		
	 	  	United Kingdom
		
	 Tel No:
	  	+44 (0) 20 7767 5917

  

 - 101 - 

			
		
	 Fax No:
	  	+44 (0) 20 7767 7323
		
	 Attention:
	  	Alastair Houlding

  

			
		
	 Signed by:
	 	 Theodore Budde Torsten Schoop

	 	 	

	 Name:
	 	 Theodore Budde Torsten Schoop

  
 For and on behalf of 
  
 ING BHF-Bank AG, Hamburg Branch 
  

			
		
	 Address:
	  	Neuer Wall 54
		
	 	  	20354 Hamburg
		
	 	  	Germany
		
	 Tel No:
	  	+49 40 320 09211
		
	 Fax No:
	  	+49 40 320 09200
		
	 Attention:
	  	Mr Theodore Budde

  

			
		
	 Signed by:
	 	 Francois Bordes John Fischer

	 	 	

	 Name:
	 	 Francois Bordes John Fischer

  
 For and on behalf of 
  
 Standard Chartered Bank 
  

			
		
	 Address:
	  	22 Billiter Street
		
	 	  	London EC3M 2RY
		
	 	  	United Kingdom
		
	 Tel No:
	  	+44 207 280 7752
		
	 Fax No:
	  	+44 207 280 7598
		
	 Attention:
	  	Lee Bellamy and Simon Williams

  

 - 102 -Exhibit 4.11

 Exhibit 4.11 
  

  
 STANDARD COMMERCIAL CORPORATION, 
 as Issuer 
  

and 
  
 STANDARD COMMERCIAL TOBACCO CO., INC., 
 as Guarantor 
  
 and 
  
 SUNTRUST BANK, 
 as Trustee 
  

  
 INDENTURE 
  
 Dated as of April 2, 2004 
  

  
 8% Senior Notes due 2012, Series A 
  
 8% Senior Notes due 2012, Series B 
  

  

 CROSS-REFERENCE TABLE 
  

			
	   TIA
 Section

	  	 Indenture
 Section

	 310 (a)(1)
	  	7.10
	        (a)(2)
	  	7.10
	        (a)(3)
	  	N.A.
	        (a)(4)
	  	N.A.
	        (a)(5)
	  	7.10
	        (b)
	  	7.08; 7.10; 10.02
	        (c)
	  	N.A.
	 311 (a)
	  	7.11
	        (b)
	  	7.11
	        (c)
	  	N.A.
	 312 (a)
	  	2.05
	        (b)
	  	10.03
	        (c)
	  	10.03
	 313 (a)
	  	7.06
	        (b)(1)
	  	N.A.
	        (b)(2)
	  	7.06
	        (c)
	  	7.06; 10.02
	        (d)
	  	7.06
	 314 (a)
	  	4.06; 4.08; 10.02
	        (b)
	  	N.A.
	        (c)(1)
	  	10.04
	        (c)(2)
	  	10.04
	        (c)(3)
	  	N.A.
	        (d)
	  	N.A.
	        (e)
	  	10.05
	        (f)
	  	N.A.
	 315 (a)
	  	7.01(b)
	        (b)
	  	7.05; 10.02
	        (c)
	  	7.01(a)
	        (d)
	  	7.01(c)
	        (e)
	  	6.11
	 316 (a)(last sentence)
	  	2.09
	        (a)(1)(A)
	  	6.05
	        (a)(1)(B)
	  	6.04
	        (a)(2)
	  	N.A.
	        (b)
	  	6.07
	        (c)
	  	9.04
	 317 (a)(1)
	  	6.08
	        (a)(2)
	  	6.09
	        (b)
	  	2.04
	 318 (a)
	  	10.01
	        (c)
	  	10.01

 N.A. means Not Applicable 
  

	Note:	This Cross-Reference Table shall not, for any purpose, be deemed to be a part of this Indenture 

  

 TABLE OF CONTENTS 
  

					
	 	  	 	  	Page

	
	 ARTICLE ONE
  
 DEFINITIONS AND INCORPORATION BY REFERENCE

			
	 SECTION 1.01.
	  	Definitions	  	1
	 SECTION 1.02.
	  	Incorporation by Reference of TIA	  	25
	 SECTION 1.03.
	  	Rules of Construction	  	25
	
	 ARTICLE TWO
  
 THE NOTES

			
	 SECTION 2.01.
	  	Form and Dating	  	26
	 SECTION 2.02.
	  	Execution and Authentication; Aggregate Principal Amount	  	27
	 SECTION 2.03.
	  	Registrar and Paying Agent	  	28
	 SECTION 2.04.
	  	Paying Agent To Hold Assets in Trust	  	29
	 SECTION 2.05.
	  	Holder Lists	  	30
	 SECTION 2.06.
	  	Transfer and Exchange	  	30
	 SECTION 2.07.
	  	Replacement Notes	  	30
	 SECTION 2.08.
	  	Outstanding Notes	  	31
	 SECTION 2.09.
	  	Treasury Notes	  	31
	 SECTION 2.10.
	  	Temporary Notes	  	31
	 SECTION 2.11.
	  	Cancellation	  	31
	 SECTION 2.12.
	  	Defaulted Interest	  	32
	 SECTION 2.13.
	  	CUSIP Numbers	  	32
	 SECTION 2.14.
	  	Deposit of Monies	  	33
	 SECTION 2.15.
	  	Restrictive Legends	  	33
	 SECTION 2.16.
	  	Book-Entry Provisions for Global Security	  	35
	 SECTION 2.17.
	  	Special Transfer Provisions	  	36
	 SECTION 2.18.
	  	Additional Interest Under Registration Rights Agreement	  	38
	
	 ARTICLE THREE
  

REDEMPTION

			
	 SECTION 3.01.
	  	Notices to Trustee	  	38
	 SECTION 3.02.
	  	Selection of Notes To Be Redeemed	  	38
	 SECTION 3.03.
	  	Optional Redemptions	  	39
	 SECTION 3.04.
	  	Notice of Redemption	  	39
	 SECTION 3.05.
	  	Effect of Notice of Redemption	  	40
	 SECTION 3.06.
	  	Deposit of Redemption Price	  	41
	 SECTION 3.07.
	  	Notes Redeemed in Part	  	41

  

 -i- 

					
	 	  	 	  	Page

	
	 ARTICLE FOUR
  
 COVENANTS

			
	 SECTION 4.01.
	  	Payment of Notes	  	41
	 SECTION 4.02.
	  	Maintenance of Office or Agency	  	42
	 SECTION 4.03.
	  	Corporate Existence	  	42
	 SECTION 4.04.
	  	Payment of Taxes and Other Claims	  	42
	 SECTION 4.05.
	  	Maintenance of Properties and Insurance	  	42
	 SECTION 4.06.
	  	Compliance Certificate; Notice of Default	  	43
	 SECTION 4.07.
	  	Compliance with Laws	  	44
	 SECTION 4.08.
	  	Reports to Holders	  	44
	 SECTION 4.09.
	  	Waiver of Stay, Extension or Usury Laws	  	44
	 SECTION 4.10.
	  	Limitation on Restricted Payments	  	44
	 SECTION 4.11.
	  	Limitations on Transactions with Affiliates	  	47
	 SECTION 4.12.
	  	Limitation on Incurrence of Additional Indebtedness	  	48
	 SECTION 4.13.
	  	Limitation on Dividend and Other Payment Restrictions Affecting Subsidiaries	  	49
	 SECTION 4.14.
	  	Change of Control	  	50
	 SECTION 4.15.
	  	Limitation on Asset Sales	  	52
	 SECTION 4.16.
	  	Limitation on Preferred Stock of Restricted Subsidiaries	  	54
	 SECTION 4.17.
	  	Limitation on Liens	  	54
	 SECTION 4.18.
	  	Additional Subsidiary Guarantees	  	54
	 SECTION 4.19.
	  	Payments for Consent	  	55
	 SECTION 4.20.
	  	Conduct of Business	  	55
	 SECTION 4.21.
	  	Covenant Suspension	  	55
	
	 ARTICLE FIVE
  
 SUCCESSOR
CORPORATION

			
	 SECTION 5.01.
	  	Merger, Consolidation and Sale of Assets	  	56
	 SECTION 5.02.
	  	Successor Corporation Substituted	  	58
	
	 ARTICLE SIX
  
 REMEDIES

			
	 SECTION 6.01.
	  	Events of Default	  	58
	 SECTION 6.02.
	  	Acceleration	  	60
	 SECTION 6.03.
	  	Other Remedies	  	61
	 SECTION 6.04.
	  	Waiver of Past Defaults	  	61
	 SECTION 6.05.
	  	Control by Majority	  	61
	 SECTION 6.06.
	  	Limitation on Suits	  	62
	 SECTION 6.07.
	  	Right of Holders To Receive Payment	  	62
	 SECTION 6.08.
	  	Collection Suit by Trustee	  	62

  

 -ii- 

					
	 	  	 	  	Page

	 SECTION 6.09.
	  	 Trustee May File Proofs of Claim
	  	62
	 SECTION 6.10.
	  	 Priorities
	  	63
	 SECTION 6.11.
	  	 Undertaking for Costs
	  	63
	 SECTION 6.12.
	  	 Restoration of Rights and Remedies
	  	63
		
	 ARTICLE SEVEN
  
 TRUSTEE
	  	 
			
	 SECTION 7.01.
	  	 Duties of Trustee
	  	64
	 SECTION 7.02.
	  	 Rights of Trustee
	  	65
	 SECTION 7.03.
	  	 Individual Rights of Trustee
	  	66
	 SECTION 7.04.
	  	 Trustee’s Disclaimer
	  	66
	 SECTION 7.05.
	  	 Notice of Default
	  	66
	 SECTION 7.06.
	  	 Reports by Trustee to Holders
	  	67
	 SECTION 7.07.
	  	 Compensation and Indemnity
	  	67
	 SECTION 7.08.
	  	 Replacement of Trustee
	  	68
	 SECTION 7.09.
	  	 Successor Trustee by Merger, Etc.
	  	69
	 SECTION 7.10.
	  	 Eligibility; Disqualification
	  	69
	 SECTION 7.11.
	  	 Preferential Collection of Claims Against the Company
	  	69
		
	 ARTICLE EIGHT
  
 DISCHARGE OF INDENTURE; DEFEASANCE
	  	 
			
	 SECTION 8.01.
	  	 Termination of the Company’s Obligations
	  	69
	 SECTION 8.02.
	  	 Application of Trust Money
	  	72
	 SECTION 8.03.
	  	 Repayment to the Company
	  	72
	 SECTION 8.04.
	  	 Reinstatement
	  	72
	 SECTION 8.05.
	  	 Acknowledgment of Discharge by Trustee
	  	73
		
	 ARTICLE NINE
  
 MODIFICATION OF THE INDENTURE
	  	 
			
	 SECTION 9.01.
	  	 Without Consent of Holders
	  	73
	 SECTION 9.02.
	  	 With Consent of Holders
	  	73
	 SECTION 9.03.
	  	 Compliance with TIA
	  	74
	 SECTION 9.04.
	  	 Revocation and Effect of Consents
	  	74
	 SECTION 9.05.
	  	 Notation on or Exchange of Notes
	  	75
	 SECTION 9.06.
	  	 Trustee To Sign Amendments, Etc.
	  	75

  

 -iii- 

					
	 	  	 	  	Page

	 ARTICLE TEN
  
 MISCELLANEOUS
	  	 
			
	 SECTION 10.01.
	  	 TIA Controls
	  	75
	 SECTION 10.02.
	  	 Notices
	  	75
	 SECTION 10.03.
	  	 Communications by Holders with Other Holders
	  	76
	 SECTION 10.04.
	  	 Certificate and Opinion as to Conditions Precedent
	  	77
	 SECTION 10.05.
	  	 Statements Required in Certificate or Opinion
	  	77
	 SECTION 10.06.
	  	 Rules by Trustee, Paying Agent, Registrar
	  	77
	 SECTION 10.07.
	  	 Legal Holidays
	  	77
	 SECTION 10.08.
	  	 Governing Law
	  	78
	 SECTION 10.09.
	  	 No Adverse Interpretation of Other Agreements
	  	78
	 SECTION 10.10.
	  	 No Personal Liability
	  	78
	 SECTION 10.11.
	  	 Successors
	  	78
	 SECTION 10.12.
	  	 Duplicate Originals
	  	78
	 SECTION 10.13.
	  	 Severability
	  	78
	 SECTION 10.14.
	  	 Independence of Covenants
	  	79
		
	 ARTICLE ELEVEN
  
 GUARANTEE OF NOTES
	  	 
			
	 SECTION 11.01.
	  	 Unconditional Guarantee
	  	79
	 SECTION 11.02.
	  	 Limitations on Guarantees
	  	80
	 SECTION 11.03.
	  	 Execution and Delivery of Guarantee
	  	80
	 SECTION 11.04.
	  	 Release of Guarantor
	  	81
	 SECTION 11.05.
	  	 Waiver of Subrogation
	  	81
	 SECTION 11.06.
	  	 Immediate Payment
	  	82
	 SECTION 11.07.
	  	 Obligations Continuing
	  	82
	 SECTION 11.08.
	  	 Obligations Reinstated
	  	82
	 SECTION 11.09.
	  	 Obligations Not Affected
	  	82
	 SECTION 11.10.
	  	 Waiver
	  	83
	 SECTION 11.11.
	  	 No Obligation To Take Action Against the Company
	  	83
	 SECTION 11.12.
	  	 Dealing with the Company and Others
	  	83
	 SECTION 11.13.
	  	 Default and Enforcement
	  	84
	 SECTION 11.14.
	  	 Amendment, Etc.
	  	84
	 SECTION 11.15.
	  	 Acknowledgment
	  	84
	 SECTION 11.16.
	  	 Costs and Expenses
	  	84
	 SECTION 11.17.
	  	 No Waiver; Cumulative Remedies
	  	84
	 SECTION 11.18.
	  	 Survival of Obligations
	  	84
	 SECTION 11.19.
	  	 Guarantee in Addition to Other Obligations
	  	84
	 SECTION 11.20.
	  	 Severability
	  	85
	 SECTION 11.21.
	  	 Successors and Assigns
	  	85

  

 -iv- 

							
	 	 	 	 	 	 	Page

	 Exhibit A
	 	 -
	 	 Form of Initial Note
	 	A-1
	 Exhibit B
	 	 -
	 	 Form of Exchange Note
	 	B-1
	 Exhibit C
	 	 -
	 	 Form of Certificate To Be Delivered in Connection with Transfers to Non-QIB Accredited Investors
	 	C-1
	 Exhibit D
	 	 -
	 	 Form of Certificate To Be Delivered in Connection with Transfers Pursuant to Regulation S
	 	D-1
	 Exhibit E
	 	 -
	 	 Form of Guarantee
	 	E-1

  

	Note:	This Table of Contents shall not, for any purpose, be deemed to be part of this Indenture 

  

 -v- 

 INDENTURE, dated as of April 2, 2004, among STANDARD COMMERCIAL CORPORATION, a North Carolina corporation
(the “Company”), STANDARD COMMERCIAL TOBACCO CO., INC., as guarantor, and SUNTRUST BANK, as Trustee (the “Trustee”). 
  
 The Company has duly authorized the creation of an issue of 8% Senior Notes due 2012, Series A and 8% Senior Notes due 2012, Series B to be issued in
exchange for the Initial Notes pursuant to the Registration Rights Agreement (as defined herein) and, to provide therefor, the Company has duly authorized the execution and delivery of this Indenture. The Notes will be guaranteed on a senior basis
by the Guarantors. All things necessary to make the Notes, when duly issued and executed by the Company, and authenticated and delivered here-under, the valid obligations of the Company, and to make this Indenture a valid and binding agreement of
the Company, have been done. 
  
 Each party hereto agrees as
follows for the benefit of the other parties and for the equal and ratable benefit of the Holders of the Notes: 
  
 ARTICLE ONE 
  
 DEFINITIONS AND INCORPORATION BY REFERENCE 
  
 SECTION
1.01. Definitions. 
  
 “Acceleration
Notice” has the meaning provided in Section 6.02. 
  
 “Acquired Indebtedness” means Indebtedness of a Person or any of its Subsidiaries existing at the time such Person becomes a Restricted Subsidiary of the Company or at the time it merges or consolidates with the Company or
any of its Subsidiaries or assumed in connection with the acquisition of 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 Restricted Subsidiary of
the Company or such acquisition, merger or consolidation. 
  
 “Additional Interest” shall have the meaning set forth in the Registration Rights Agreement. 
  
 “Additional Notes” means 8% Senior Notes due 2012 of the Company issued under the terms of this Indenture subsequent to the Issue Date,
and having substantially identical terms as the Initial Notes (or the Exchange Notes), issued pursuant to Article Two and in compliance with Section 4.12. 
  
 “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. 
  

 “Affiliate Transaction” has the meaning provided in Section 4.11.  
  
 “Agent” means any Registrar, Paying Agent or co-Registrar.
 
  
 “Agent Members” has the meaning
provided in Section 2.16. 
  
 “Asset Acquisition”
means (a) an Investment by the Company or any Restricted Subsidiary of the Company in any other Person pursuant to which such Person shall become a Restricted Subsidiary of the Company or any Restricted Subsidiary of the Company, or shall be merged
with or into the Company or any Restricted Subsidiary of the Company, or (b) the acquisition by the Company or any Restricted Subsidiary of the Company of the assets of any Person (other than a Restricted Subsidiary of the Company) which constitute
all or substantially all of the assets of such Person or comprises 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. 
  
 “Asset Sale” means any direct or indirect sale, issuance,
conveyance, transfer, lease (other than operating leases entered into in the ordinary course of business), assignment or other transfer for value by the Company or any of its Restricted Subsidiaries (including any Sale and Leaseback Transaction) to
any Person other than the Company or a Restricted Subsidiary of the Company of (a) any Capital Stock of any Restricted Subsidiary of the Company, (b) all or substantially all of the properties and assets of any division or line of business of the
Company or any Restricted Subsidiary or (c) any other property or assets of the Company or any Restricted Subsidiary of the Company, other than in the ordinary course of business; provided, however, that Asset Sales shall not include
(i) a transaction or series of related transactions for which the Company or its Restricted Subsidiaries receive aggregate consideration of less than $5.0 million, (ii) the sale, lease, conveyance, disposition or other transfer of all or
substantially all of the assets of the Company as permitted under Section 5.01, (iii) any disposition of assets or property not in the ordinary course of business to the extent such property or assets are obsolete, worn out or no longer useful in
the Company’s or any Restricted Subsidiary’s business, (iv) the surrender or waiver of contract rights or the settlement, release or surrender of contract, tort or other claims of any kind, (v) the sale or discount, in each case without
recourse, of accounts receivable arising in the ordinary course of business, but only in connection with the compromise or collection thereof, (vi) the factoring of accounts receivable arising in the ordinary course of business pursuant to
arrangements customary in the region, (vii) the grant in the ordinary course of business of any non-exclusive license of patents, trademarks, registrations therefor and other similar intellectual property and (viii) any dividend, distribution,
investment or payment made pursuant to the first or second paragraph of Section 4.10. 
  
 “Authenticating Agent” has the meaning provided in Section 2.02. 
  
 “Bankruptcy Law” means Title 11, U.S. Code or any similar Federal, state or foreign law for the relief of debtors. 
  
 “Board of Directors” means, as to any Person, the board of
directors of such Person or any duly authorized committee thereof. 
  

 -2- 

 “Board Resolution” means, with respect to any Person, a copy of a resolution certified
by the secretary, an assistant secretary or director of such Person to have been duly adopted by the Board of Directors of such Person and to be in full force and effect on the date of such certification, and delivered to the Trustee. 
  
 “Business Day” means any day other than a Saturday, Sunday
or any other day on which banking institutions in the City of New York are required or authorized by law or other governmental action to be closed. 
  
 “Capital Stock” means: 
  
 (1) 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 
  
 (2) with respect to any Person that is not a corporation, any and all partnership or other equity interests of such Person. 
  
 “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 finance 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. 
  
 “Cash Equivalents” means: 
  
 (1) marketable direct obligations issued by, or unconditionally guaranteed by, the United States Government or issued by any agency thereof and backed by the full faith and credit of the United States, in each case maturing within one year
from the date of acquisition thereof; 
  
 (2)
marketable direct obligations issued by any state of the United States of America or any political subdivision of any such state or any public instrumentality thereof maturing within one year from the date of acquisition thereof and, at the time of
acquisition, having one of the two highest ratings obtainable from either Rating Agency; 
  
 (3) commercial paper maturing no more than one year from the date of creation thereof and, at the time of acquisition, having a rating of
at least A-1 from S&P or at least P-1 from Moody’s, or, in each case, the equivalent successor rating; 
  
 (4) certificates of deposit or bankers acceptances maturing within one year from the date of acquisition thereof issued by any bank
organized under the laws of the United States of America or any state thereof or the District of Columbia or any U.S. branch of a foreign bank; 
  

 -3- 

 (5) repurchase obligations with a term of not more than seven days for underlying
securities of the types described in clause (1) above entered into with any bank meeting the qualifications specified in clause (4) above; 
  
 (6) in the case of any Foreign Restricted Subsidiary, Investments (a) in direct obligations of the sovereign nation (or any agency
thereof) in which such Foreign Restricted Subsidiary is organized or is conducting a substantial amount of business or in obligations fully and unconditionally guaranteed by such sovereign nation (or any agency thereof), (b) of the type and maturity
described in clauses (1) through (5) above of foreign obligors, which Investments or obligors (or the parents of such obligors) have ratings described in such clauses or equivalent ratings from comparable foreign rating agencies or (c) of the type
and maturity described in clauses (1) through (5) above of foreign obligors (or the parents of such obligors), which Investments or obligors (or the parents of such obligors), are not rated as provided in such clauses or in clause (6)(b) but which
are, in the reasonable judgment of the Company, comparable in investment quality to such Investments and obligors (or the parents of such obligors); and 
  
 (7) investments in money market funds which invest substantially all their assets in securities of the types described in clauses (1)
through (6) above. 
  
 “Certificated Securities”
means Notes in definitive registered form. 
  
 “Change of
Control” means the occurrence of one or more of the following events: 
  
 (1) any sale, lease, exchange or other transfer (in one transaction or a series of related transactions) of all or substantially all of
the assets of the Company to any Person or group of related Persons for purposes of Section 13(d) of the Exchange Act (a “Group”), together with any Affiliates thereof (whether or not otherwise in compliance with the provisions of
this Indenture) (other than to a Wholly Owned Restricted Subsidiary); 
  
 (2) the approval by the holders of the Capital Stock of the Company of any plan or proposal for the liquidation or dissolution of the Company (whether or not otherwise in compliance with the provisions of this
Indenture); 
  
 (3) the acquisition in one or
more transactions, of beneficial ownership (within the meaning of Rule 13d-3 under the Exchange Act) by any Person or Group (other than Permitted Holders), of any securities of the Company such that, as a result of such acquisition, such Person, or
Group either (a) beneficially owns (within the meaning of Rule 13d-3 under the Exchange Act), directly or indirectly, at least 30% of the Company’s then outstanding voting securities entitled to vote on a regular basis for the Board of
Directors of the Company, or (b) otherwise has the ability to elect, directly or indirectly, a majority of the members of the Company’s Board of Directors, including without limitation by the acquisition of proxies for the election of
directors; or 
  

 -4- 

 (4) the replacement of a majority of the Board of Directors of the Company over a
two-year period from the directors who constituted the Board of Directors of the Company at the beginning of such period, and such replacement shall not have been approved by a vote of at least a majority of the Board of Directors of the Company
then still in office who either were members of such Board of Directors at the beginning of such period or whose election as a member of such Board of Directors was previously so approved. 
  
 “Change of Control Offer” has the meaning provided in
Section 4.14.  
  
 “Change of Control
Payment” has the meaning provided in Section 4.14.  
  
 “Change of Control Payment Date” has the meaning provided in Section 4.14.  
  
 “Commission” means the U.S. Securities and Exchange Commission. 
  
 “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 stock, whether outstanding on the Issue Date or issued after the Issue Date, and includes, without limitation, all series and classes of such common
stock. 
  
 “Company” has the meaning provided in
the preamble to this Indenture and, if replaced pursuant to Article Five, its successor thereafter. 
  
 “Consolidated EBITDA” means, with respect to any Person, for any period, the sum (without duplication) of: 
  
 (1) Consolidated Net Income; and 
  
 (2) to the extent Consolidated Net Income has been reduced
thereby, (a) all income taxes of such Person and its Restricted Subsidiaries accrued in accordance with GAAP for such period (other than income taxes attributable to extraordinary, unusual or nonrecurring gains or losses or taxes attributable to
sales or dispositions outside the ordinary course of business), (b) Consolidated Interest Expense and (c) Consolidated Non-cash Charges less (x) any non-cash items increasing Consolidated Net Income, for such period and (y) all cash payments
during such period relating to non-cash charges that were added back in determining Consolidated EBITDA in any prior period, 
  
 all as determined on a consolidated basis for such Person and its Restricted Subsidiaries in accordance with GAAP. 
  
 “Consolidated Fixed Charge Coverage Ratio” means, with
respect to any Person, the ratio of Consolidated EBITDA of such Person during the four full fiscal quarters (the “Four Quarter Period”) ending on or prior to the date of the transaction giving rise to the need to calculate the
Consolidated Fixed Charge Coverage Ratio (the “Transaction Date”) to Consolidated Fixed Charges of such Person for the Four Quarter Period. In addition to and without limitation of the foregoing, for purposes of this definition,
“Consolidated EBITDA” and “Consolidated 

  

 -5- 

 
Fixed Charges” shall be calculated after giving effect on a pro forma basis for the period of such calculation to: 
  
 (1) the incurrence or repayment of any Indebtedness of such
Person or any of its Restricted Subsidiaries (and the application of the proceeds thereof) giving rise to the need to make such calculation and any incurrence or repayment of other Indebtedness (and the application of the proceeds thereof), other
than the incurrence or repayment of Indebtedness 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 
  
 (2) any asset sales or other dispositions or Asset
Acquisitions (including, without limitation, any Asset Acquisition giving rise to the need to make such calculation as a result of such Person or one of its Restricted Subsidiaries (including any Person who becomes a Restricted Subsidiary as a
result of the Asset Acquisition) incurring, assuming or otherwise being liable for Acquired Indebtedness and also including any Consolidated EBITDA (including any pro forma expense and cost reductions calculated on a basis consistent with Regulation
S-X under the Exchange Act) attributable to the assets which are the subject of the Asset Acquisition or asset sale or other disposition during the Four Quarter Period) 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 asset sale or other disposition of Asset Acquisition (including the Incurrence, assumption or liability for any such Acquired Indebtedness) occurred on the first day
of the Four Quarter Period. 
  
 If such Person or any of its
Restricted Subsidiaries directly or indirectly guarantees Indebtedness of a third Person, the preceding sentence shall give effect to the incurrence of such guaranteed Indebtedness as if such Person or any Restricted Subsidiary of such Person had
directly incurred or otherwise assumed such guaranteed Indebtedness. 
  
 Furthermore, in calculating “Consolidated Fixed Charges” for purposes of determining the denominator (but not the numerator) of this “Consolidated Fixed Charge Coverage Ratio”: 
  
 (1) interest on outstanding Indebtedness 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 rate of interest on such Indebtedness in effect on the Transaction Date;

  
 (2) if interest on any Indebtedness actually
incurred on the Transaction Date may optionally be determined at an interest rate based upon a factor of a prime or similar rate, a eurocurrency interbank offered rate, or other rates, then the interest rate in effect on the Transaction Date will be
deemed to have been in effect during the Four Quarter Period; and 
  

 -6- 

 (3) notwithstanding clause (1) above, interest on Indebtedness 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. 
  
 “Consolidated Fixed Charges” means, with respect to any
Person for any period, the sum, without duplication, of: 
  
 (1) Consolidated Interest Expense; plus 
  
 (2) the product of (x) the amount of all dividend payments on any series of Preferred Stock of such Person (other than dividends paid in
Qualified Capital Stock) paid, accrued or scheduled to be paid or accrued during such period times (y) 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 such Person, expressed as a decimal. 
  
 “Consolidated Interest Expense” means, with respect to any Person for any period, the sum of, without duplication: 
  
 (1) the aggregate of the interest expense with respect to all outstanding Indebtedness of such Person and its Restricted Subsidiaries for
such period determined on a consolidated basis in accordance with GAAP, including without limitation, (a) any amortization of debt discount and amortization or write-off of deferred financing costs, (b) the net costs under Interest Swap Obligations,
(c) all capitalized interest included in cost of goods sold (but excluding capitalized interest included in inventory held by the Person at the end of the period) and (d) the interest portion of any deferred payment obligation; plus

  
 (2) the interest component of Capitalized
Lease Obligations paid, accrued and/or scheduled to be paid or accrued by such Person and its Restricted Subsidiaries during such period as determined on a consolidated basis in accordance with GAAP. 
  
 “Consolidated Net Income” means, with respect to any Person,
for any period, the aggregate net income (or loss) of such Person and its Restricted Subsidiaries for such period on a consolidated basis, determined in accordance with GAAP; provided that there shall be excluded therefrom: 
  
 (a) after-tax gains and losses from Asset Sales or
abandonments or reserves relating thereto; 
  
 (b) after-tax items classified as extraordinary or nonrecurring gains and losses or classified as exceptional gains and losses to the extent they would be classified as extraordinary or nonrecurring under GAAP; 
  
 (c) the net income (but not loss) of any Restricted
Subsidiary of the referent Person to the extent that the declaration of dividends or similar distributions by that 

  

 -7- 

 
Restricted Subsidiary of that income is restricted by a contract, operation of law or otherwise other than to the extent that such restrictions are permitted
pursuant to Section 4.13; 
  
 (d) the net income
of any Person, other than a Restricted Subsidiary of the referent Person, except to the extent of cash dividends or distributions paid to the referent Person or to a Wholly Owned Restricted Subsidiary of the referent Person by such Person;

  
 (e) any restoration to income of any
contingency reserve, except to the extent that provision for such reserve was made out of Consolidated Net Income accrued at any time following the Issue Date; 
  

(f) income or loss attributable to discontinued operations (including, without limitation, operations disposed of during such period
whether or not such operations were classified as discontinued); 
  
 (g) in the case of a successor to the referent Person by consolidation or merger or as a transferee of the referent Person’s assets, any earnings of the successor corporation prior to such consolidation, merger
or transfer of assets; and 
  
 (h) one time
non-cash compensation charges, including any arising from existing stock options resulting from any merger or recapitalization transaction. 
  
 “Consolidated Net Worth” means, with respect to any Person as of any date, the sum of: 
  
 (1) the consolidated equity of the common stockholders of
such person and its consolidated Subsidiaries as of such date; plus 
  
 (2) the respective amounts reported on such Person’s balance sheet as of such date with respect to any series of preferred stock (other than Disqualified Capital Stock) that by its terms is not entitled to the
payment of dividends unless such dividends may be declared and paid only out of net earnings in respect of the year of such declaration and payment, but only to the extent of any cash received by such Person upon issuance of such preferred stock;

  
 less 
  
 (3) all write-ups subsequent to the date of this Indenture in the book value of any asset owned by such
Person or a consolidated Subsidiary of such Person (other than purchase accounting adjustments made, in connection with any acquisition of any entity that becomes a consolidated Subsidiary of such Person after the date of this Indenture, to the book
value of the assets of such entity); 
  
 (4) all
investments as of such date in unconsolidated Subsidiaries and in Persons that are not Subsidiaries (except, in each case, Permitted Investments); and 
  

 -8- 

 (5) all unamortized debt discount and expense and unamortized deferred charges as of such
date, all of the foregoing determined on a consolidated basis in accordance with GAAP. 
  
 “Consolidated Non-cash Charges” means, with respect to any Person, for any period, the aggregate depreciation, amortization and other non-cash expenses of such Person and its Restricted Subsidiaries
reducing Consolidated Net Income of such Person and its Restricted Subsidiaries for such period, determined on a consolidated basis in accordance with GAAP (excluding any such charges constituting an extraordinary item or loss or any such charge
which requires an accrual of or a reserve for cash charges for any future period). 
  
 “Consolidated Tangible Net Worth” means, with respect to any Person as of any date, the sum of (1) Consolidated Net Worth, minus (2) the amount of such Person’s intangible assets at such
date, including, without limitation, goodwill (whether representing the excess of cost over book value of assets acquired or otherwise), capitalized expenses, patents, trademarks, trade names, copyrights, franchises, licenses and deferred charges
(such as, without limitation, unamortized costs and costs of research and development), all determined for such Person on a consolidated basis in accordance with GAAP, plus (3) translation adjustments as determined under FASB 52. 

 
 “Corporate Trust Office” means the office of the Trustee
at which at any particular time its corporate trust business shall be principally administered, which office at the date of execution of this Indenture is located at SunTrust Bank, Corporate Trust Department; Mail Code HDQ 5310; 919 E. Main Street,
10th Floor; Richmond, VA 23219. 
  
 “Covenant
Defeasance” has the meaning set forth in Section 8.01. 
  
 “Credit Agreement” means, the Credit Agreement, dated May 5, 1995, among the Company and certain of its subsidiaries as borrowers thereunder, Deutsche Bank A.G. as lead bank and the other lenders thereunder (including any
guarantee agreements and related security documents), in each case as such agreements or documents may be amended (including any amendment, restatement or restructuring thereof), supplemented or otherwise modified or replaced from time to time,
including one or more agreements, extending the maturity of, refunding, refinancing, increasing the amount available under or replacing in whole or in part such agreement or document or any successor or replacement agreement or document and whether
by the same or any other agent, lender or group of lenders. 
  
 “Currency Agreement” means any foreign exchange contract, currency swap agreement or other similar agreement or arrangement designed to protect the Company or any Restricted Subsidiary of the Company against fluctuations in
currency values. 
  
 “Custodian” means any
receiver, trustee, assignee, liquidator, sequestrator or similar official under any Bankruptcy Law. 
  
 “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. 
  

 -9- 

 “Defaulted Interest Payment Date” has the meaning provided in Section 2.12. 

 
 “Depository” means The Depository Trust Company, its
nominees and successors. 
  
 “Disqualified Capital
Stock” means 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), or upon the happening of any event, matures or is mandatorily redeemable,
pursuant to a sinking fund obligation or otherwise, or is redeemable at the sole option of the holder thereof (except, in each case, upon the occurrence of a customarily defined change of control), in whole or in part, on or prior to the final
maturity date of the Notes. 
  
 “Domestic Restricted
Subsidiary” means a Restricted Subsidiary of the Company incorporated or otherwise organized or existing under the laws of the United States, any state thereof or any territory or possession of the United States. 
  
 “E.U. Paying Agent” has the meaning set forth in Section
2.03.  
  
 “Event of Default” has the
meaning provided in Section 6.01. 
  
 “Exchange
Act” means the United States Securities Exchange Act of 1934, as amended, or any successor statute or statutes thereto. 
  
 “Exchange Notes” means the 8% Senior Notes due 2012, Series B to be issued in change for the Initial Notes pursuant to the Registration
Rights Agreement or, with respect to Additional Notes issued pursuant to Section 2.02, a registration rights agreement substantially identical to the Registration Rights Agreement, in each case, that are not required to bear the Private Placement
Legend in the form set forth in Section 2.15. 
  
 “Fair
Market Value” means, with respect to any asset or property, the price which could be negotiated in an arm’s-length, free market transaction, for cash, between a willing seller and a willing and able buyer, neither of whom is under
undue pressure or compulsion to complete the transaction. In the absence of an established market or readily determinable price for the type of asset that is the subject of the transaction, and when the value of such asset, individually or in the
aggregate, is in excess of $10.0 million, Fair Market Value shall be determined by the Board of Directors of the Company acting reasonably and in good faith and shall be evidenced by a Board Resolution of the Board of Directors of the Company
delivered to the Trustee. 
  
 “Foreign Restricted
Subsidiary” means any Restricted Subsidiary of the Company that is not a Domestic Restricted Subsidiary. 
  
 “GAAP” means generally accepted accounting principles in the United States as in effect as of the Issue Date, including without
limitation, those 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 

  

 -10- 

 
or in such other statements by such other entity as approved by a significant segment of the accounting profession. 
  
 “Global Note” has the meaning provided in Section 2.01.

  
 “guarantee” means, as applied to any
obligation, (a) a guarantee (other than by endorsement of negotiable instruments for collection in the ordinary course of business), direct or indirect, in any manner, of any part or all of such obligation and (b) an agreement, direct or indirect,
contingent or otherwise, the practical effect of which is to assure in any way the payment or performance (or payment of damages in the event of non-performance) of all or any part of such obligation, including, without limiting the foregoing, the
payment of amounts drawn down by letters of credit. 
  
 “Guarantee” means a guarantee of the Notes by a Guarantor providing for an unconditional guarantee of the Notes in accordance with the provisions of Article 11 of this Indenture. 
  
 “Guarantors” means Standard Commercial Tobacco Co., Inc. and
any Restricted Subsidiary of the Company executing a supplemental indenture evidencing its Guarantee of the Notes subsequent to the Issue Date; provided that any Person constituting a Guarantor as described above shall cease to constitute a
Guarantor when its respective Guarantee is released in accordance with the terms of this Indenture. 
  
 “Holder” means a holder of Notes. 
  
 “incur” has the meaning set forth in Section 4.12. 
  
 “Indebtedness” means (without duplication) with respect to any Person: 
  
 (1) all Obligations of such Person for borrowed money;

  
 (2) all Obligations of such Person evidenced
by bonds, debentures, notes or other similar instruments; 
  
 (3) all Capitalized Lease Obligations of such Person; 
  
 (4) all Obligations of such Person issued or assumed as the deferred purchase price of property, all conditional sale obligations and all
Obligations under any title retention agreement (but excluding trade accounts payable and other accrued liabilities arising in the ordinary course of business); 
  
 (5) all Obligations for the reimbursement of any obligor on any letter of credit, bankers’ acceptance
or similar credit transaction; 
  
 (6) guarantees
and other contingent obligations in respect of Indebtedness of any other Person of the type referred to in clauses (1) through (5) above and clause (8) below; 
  

 -11- 

 (7) all Obligations of any other Person of the type referred to in clauses (1) through
(6) which are secured by any Lien on any property or asset of such Person, the amount of such Obligation being deemed to be the lesser of the Fair Market Value of such property or asset or the amount of the Obligation so secured; 
  
 (8) all Obligations under currency agreements and interest
swap agreements of such Person; and 
  
 (9) all
Disqualified Capital Stock issued by such Person with the amount of Indebtedness represented by such Disqualified Capital Stock being equal to the greater of its voluntary or involuntary liquidation preference and its maximum fixed redemption price
or repurchase price, but excluding accrued dividends, if any. 
  
 For purposes hereof, the “maximum fixed repurchase price” of any Disqualified Capital Stock which 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 Indebtedness 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, such Fair Market Value shall be determined reasonably and in good faith by the Board of Directors of the issuer of such Disqualified Capital Stock. 
  
 “Indenture” means this Indenture, as amended or supplemented from time to time in accordance with the terms hereof. 
  
 “Independent Financial Advisor” means a nationally
recognized firm which, in the judgment of the Board of Directors of the Company, is independent and qualified to perform the task for which it is to be engaged. 
  

“Initial Notes” means the 8% Senior Notes due 2012, Series A of the Company issued on the Issue Date for so long as such securities
constitute Restricted Securities. 
  
 “Initial
Purchasers” means, collectively, Deutsche Bank Securities Inc. and ING Bank N.V., London Branch. 
  
 “Institutional Accredited Investor” means an institution that is an “accredited investor” as that term is defined in Rule
501(a)(1), (2), (3) or (7) under the Securities Act. 
  
 “interest” when used with respect to any Note means the amount of all interest accruing on such Note, including any applicable defaulted interest pursuant to Section 2.12 and any Additional Interest pursuant to the
Registration Rights Agreement. 
  
 “Interest Payment
Date” means the stated maturity of an installment of interest on the Notes. 
  
 “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 

  

 -12- 

 
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. 
  
 “Internal Revenue Code” means the Internal Revenue Code of 1986, as amended to the date hereof and from time to time hereafter.

  
 “Inventory” means, as of any date, all
inventory of the Company and any of its Restricted Subsidiaries, wherever located, valued in accordance with GAAP and shown on the balance sheet of the Company for the quarterly period most recently ended prior to such date for which financial
statements of the Company are available. 
  
 “Investment” means, with respect to any Person, any direct or indirect loan, advance or other extension of credit (including, without limitation, a guarantee (other than any guarantee which is made in compliance with the
provisions of Section 4.12) or capital contribution (by means of any transfer of cash or other property (valued at the Fair Market Value thereof as of the date of transfer) to others or any payment for property or services for the account or use of
others), or any purchase or acquisition by such Person of any Capital Stock, bonds, notes, debentures or other securities or evidences of Indebtedness issued by, any Person, and all other items that would be classified as investments on a balance
sheet of such Person prepared in accordance with GAAP. Notwithstanding the foregoing, “Investment” shall exclude extensions of trade credit by the Company and its Restricted Subsidiaries on commercially reasonable terms in accordance with
normal trade practices of the Company or such Restricted Subsidiary, as the case may be. For the purposes of Section 4.10, (i) “Investment” shall include and be valued at the Fair Market Value of the net assets of any Restricted Subsidiary
at the time that such Restricted Subsidiary is designated an Unrestricted Subsidiary and shall exclude the Fair Market Value of the net assets of any Unrestricted Subsidiary at the time that such Unrestricted Subsidiary is designated a Restricted
Subsidiary and (ii) the amount of any Investment shall be the original cost of such Investment plus the cost of all additional Investments by the Company or any of its Restricted Subsidiaries, without any adjustments for increases or decreases in
value, or write-ups, write-downs or write-offs with respect to such Investment, but reduced by the payment of dividends or distributions in connection with such Investment or any other amounts received in respect of such Investment; provided
that no such payment of dividends or distributions or receipt of any such other amounts shall reduce the amount of any Investment if such payment of dividends or distributions or receipt of any such amounts would be included in Consolidated Net
Income. If the Company or any Restricted Subsidiary of the Company sells or otherwise disposes of any Common Stock of any direct or indirect Restricted Subsidiary of the Company such that, after giving effect to any such sale or disposition, the
Company no longer owns, directly or indirectly, at least 50% of the outstanding Common Stock of such Restricted Subsidiary, the Company shall be deemed to have made an Investment on the date of any such sale or disposition equal to the Fair Market
Value of the Common Stock of such Restricted Subsidiary not sold or disposed of. 
  
 “Investment Grade Rating” means (1) with respect to S&P, any of the rating categories from and including AAA to and including BBB- and (2) with respect to Moody’s, any of 

  

 -13- 

 
the rating categories from and including Aaa to and including Baa3 or, in each case, the equivalent successor rating. 
  
 “Issue Date” means April 2, 2004, the date of original
issuance of any Notes under this Indenture. 
  
 “Legal
Defeasance” has the meaning set forth in Section 8.01.  
  
 “Legal Holiday” has the meaning provided in Section 10.07. 
  
 “Lien” means any lien, mortgage, deed of trust, pledge, security interest, charge or encumbrance of any kind (including any conditional sale or other title retention agreement, any lease in the nature
thereof and any agreement to give any security interest). 
  
 “Luxembourg Paying Agent” has the meaning provided in Section 2.03. 
  
 “Maturity Date” means April 15, 2012. 
  
 “Moody’s” means Moody’s Investors Service, Inc. or any successor thereto. 
  
 “Net Cash Proceeds” means, with respect to any Asset Sale, the proceeds in the form of cash or Cash Equivalents including payments in
respect of deferred payment obligations when received in the form of cash or Cash Equivalents (other than the portion of any such deferred payment constituting interest) received by the Company or any of its Restricted Subsidiaries from such Asset
Sale net of: 
  
 (a) out-of-pocket expenses and
fees relating to such Asset Sale (including, without limitation, legal, accounting and investment banking fees and sales commissions and relocation expenses) and transmission costs (including foreign exchange costs) in transferring money from the
disposing entity) to an entity making a prepayment required under this Indenture; 
  
 (b) taxes paid or payable after taking into account any reduction in consolidated tax liability due to available tax credits or deductions
and any tax sharing arrangements; 
  
 (c)
repayment of Indebtedness that is required to be repaid in connection with such Asset Sale; and 
  
 (d) appropriate amounts to be provided by the Company or any Restricted Subsidiary, as the case may be, as a reserve, in accordance with
GAAP, against any liabilities associated with such Asset Sale and retained by the Company or any Restricted Subsidiary, as the case may be, after such Asset Sale, including, without limitation, pension and other post-employment benefit liabilities,
liabilities related to environmental matters and liabilities under any indemnification obligations associated with such Asset Sale. 
  
 “Net Proceeds Offer” has the meaning set forth in Section 4.15. 
  

 -14- 

 “Net Proceeds Offer Amount” has the meaning set forth in Section 4.15. 

  
 “Net Proceeds Offer Payment Date” has the
meaning set forth in Section 4.15.  
  
 “Net
Proceeds Offer Trigger Date” has the meaning set forth in Section 4.15. 
  
 “Notes” means, collectively, the Initial Notes, the Private Exchange Notes, if any, and the Exchange Notes, treated as a single class of securities, as amended or supplemented from time to time in
accordance with the terms hereof, that are issued pursuant to this Indenture. 
  
 “Obligations” means all obligations for principal, premium, interest, penalties, fees, indemnifications, reimbursements, damages and other liabilities payable under the documentation governing any
Indebtedness. 
  
 “Offering Memorandum” means the
confidential Offering Memorandum dated March 19, 2004 of the Company relating to the offering of the Notes. 
  
 “Officer” means, with respect to any Person, the Chairman of the Board of Directors, the Chief Executive Officer, the President, any Vice
President, the Chief Financial Officer, the Treasurer, the Controller, or the Secretary of such Person, or any other officer designated by the Board of Directors serving in a similar capacity. 
  
 “Officers’ Certificate” means a certificate signed by
two Officers of the Company. 
  
 “Opinion of
Counsel” means a written opinion from legal counsel who is reasonably acceptable to the Trustee complying with the requirements of Sections 10.04 and 10.05, as they relate to the giving of an Opinion of Counsel. 
  
 “Paying Agent” has the meaning provided in Section 2.03.

  
 “Permitted Advances on Purchases of Tobacco”
means loans, advances, extensions of credit and guarantees made by the Company or any or its Restricted Subsidiaries to growers and other suppliers of tobacco (including Affiliates) and tobacco growers’ cooperatives, whether short-term or
long-term, in the ordinary course of business to finance the growing or processing of tobacco only to the extent that the aggregate principal amount of such loans, advances, extensions of credit and guarantees outstanding at any time to any Person
and such Person’s Affiliates does not exceed 20% of the Consolidated Tangible Net Worth of the Company for the most recently ended fiscal quarter for which internal financial statements are available. 
  
 “Permitted Holders” means Mr. Ery W. Kehaya, his immediate
family (including grandchildren) and their spouses, as well as trusts or similar entities for the benefit of any of the foregoing. 
  
 “Permitted Indebtedness” means, without duplication, each of the following: 
  
 (1) Indebtedness under the Notes, this Indenture and any
Guarantees in an aggregate principal amount of $150.0 million; 
  

 -15- 

 (2) the incurrence by the Company or any of its Restricted Subsidiaries of Indebtedness
under the Credit Agreement (and the incurrence by Restricted Subsidiaries of the Company of guarantees thereof) in an aggregate principal amount at any time outstanding (with letters of credit being deemed to have a principal amount equal to the
maximum potential liability of the Company and its Restricted Subsidiaries thereunder) not to exceed $200.0 million, less the aggregate amount of all Net Cash Proceeds of Asset Sales applied to permanently reduce the outstanding amount of such
Indebtedness (and to correspondingly reduce the commitments, if any, with respect thereto) pursuant to Section 4.15; 
  
 (3) the incurrence by Foreign Restricted Subsidiaries of Indebtedness for working capital purposes in an aggregate principal amount at any
time outstanding not to exceed $250.0 million; 
  
 (4) other Indebtedness of the Company and its Restricted Subsidiaries out standing on the Issue Date (other than Indebtedness to the extent outstanding under clauses (2) and (3) above) reduced by the amount of any scheduled amortization
payments or mandatory prepayments when actually paid or permanent reductions thereon; 
  
 (5) the incurrence by the Company or any of its Restricted Subsidiaries of In debtedness in an aggregate principal amount at any time
outstanding not to exceed the sum of (a) 85% of Inventory, plus (b) 85% of Receivables, plus (c) 85% of outstanding Permitted Advances on Purchases of Tobacco, less the sum of any amounts then out standing under clauses (1), (2), (3) and (4) of this
definition; 
  
 (6) Interest Swap Obligations of
the Company and its Restricted Subsidiaries; provided that such Interest Swap Obligations are entered into to protect the Company and its Restricted Subsidiaries from fluctuations in interest rates on Indebtedness incurred in accordance with
this Indenture to the extent the notional principal amount of such Interest Swap Obligation does not exceed the principal amount of the Indebtedness to which such Interest Swap Obligation relates; 
  
 (7) Indebtedness under Currency Agreements; provided
that (x) in the case of Currency Agreements which relate to Indebtedness, such Currency Agreements do not increase the Indebtedness of the Company and its Restricted Subsidiaries outstanding other than as a result of fluctuations in foreign currency
exchange rates or by reason of fees, indemnities and compensation payable thereunder and (y) in the case of Currency Agreements which do not relate to Indebtedness, such Currency Agreements are entered into for the purpose of hedging currency
fluctuation risks associated with the operation of the businesses of the Company and its Restricted Subsidiaries and are not entered into for speculative purposes; 
  
 (8) Indebtedness of a Restricted Subsidiary of the Company to the Company or a Guarantor for so long as such
Indebtedness is held by the Company or a Guarantor, in each case, subject to no Lien held by a Person other than the Company, a Guarantor, the lenders under the Credit Agreement or the Holders of the Notes; provided that if as of any date any
Person other than the Company or a Guarantor owns or holds any such Indebtedness 

  

 -16- 

 
or any Person other than the Company, a Guarantor, the lenders under the Credit Agreement or the Holders of the Notes holds a Lien in respect of such
Indebtedness, such date shall be deemed the incurrence of Indebtedness not constituting Permitted Indebtedness by the issuer of such Indebtedness; 
  
 (9) Indebtedness of the Company to a Guarantor for so long as such Indebted ness is held by a Guarantor, in each case subject to no Lien;
provided that (a) any Indebtedness of the Company to a Guarantor is unsecured and subordinated, pursuant to a written agreement, to the Company’s obligations under this Indenture and (b) if as of any date any Person other than a
Guarantor owns or holds any such Indebtedness or any Person (other than the lenders under the Credit Agreement) holds a Lien in respect of such Indebtedness, such date shall be deemed the incurrence of Indebtedness not constituting Permitted
Indebtedness by the Company; 
  
 (10)
Indebtedness of the Company or any of its Restricted Subsidiaries represented by letters of credit for the account of the Company or such Restricted Subsidiary, as the case may be, in order to provide security for workers’ compensation claims,
payment obligations in connection with self-insurance or similar requirements in the ordinary course of business; 
  
 (11) Indebtedness in respect of Capitalized Lease Obligations and/or Purchase Money Indebtedness in an aggregate principal amount for all
such Indebtedness incurred pursuant to this clause (11) not to exceed $15.0 million at any one time outstanding; 
  
 (12) Indebtedness arising from agreements of the Company or a Restricted Subsidiary of the Company providing for indemnification,
adjustment of purchase price, earn out or other similar obligations, in each case incurred or assumed in connection with the disposition of any business, assets or a Restricted Subsidiary of the Company, other than guarantees of indebtedness
incurred by any Person acquiring all or any portion of such business, assets or Restricted Subsidiary for the purpose of financing such acquisition; provided that the maximum assumable liability in respect of all such indebtedness shall at no
time exceed the gross proceeds actually received by the Company and its Restricted Subsidiaries in connection with such disposition; 
  
 (13) Obligations in respect of performance and surety bonds and completion guarantees provided by the Company or any Restricted Subsidiary
of the Company in the ordinary course of business; 
  
 (14) Refinancing Indebtedness; 
  
 (15)
guarantees by the Company and its Restricted Subsidiaries of each other’s Indebtedness; provided that such Indebtedness is permitted to be incurred under this Indenture and such guarantee is permitted to be incurred under Section 4.18;
and 
  
 (16) additional Indebtedness of the
Company and its Restricted Subsidiaries in an aggregate principal amount not to exceed $20.0 million at any one time outstanding. 
  

 -17- 

 “Permitted Investments” means without duplication, each of the following: 
  
 (1) Investments existing on the Issue Date; 
  
 (2) Investments by the Company or any Restricted Subsidiary
of the Company in the Company or in any Person that is or will become (as soon as practicable) after such Investment a Wholly Owned Restricted Subsidiary of the Company or that will merge or consolidate into the Company or a Wholly Owned Restricted
Subsidiary of the Company; 
  
 (3) Investments in
the Company or any Restricted Subsidiary of the Company; provided that any Indebtedness evidencing such Investment is unsecured and subordinated, pursuant to a written agreement, to the Company’s obligations under the Notes and this
Indenture and any Guarantor’s obligations under its Guarantee; 
  
 (4) Investments in cash and Cash Equivalents; 
  
 (5) loans and advances to employees and officers of the Company and its Restricted Subsidiaries in the ordinary course of business not in excess of $2.0 million at any one time outstanding; 
  
 (6) Currency Agreements and Interest Swap Obligations
entered into in the ordinary course of the Company’s or its Restricted Subsidiaries’ businesses and otherwise in compliance with this Indenture; 
  
 (7) Investments in securities of trade creditors or customers received pursuant to any plan of reorganization or similar arrangement upon
the bankruptcy or insolvency of such trade creditors or customers; 
  
 (8) Investments made by the Company or its Restricted Subsidiaries as a result of consideration received in connection with an Asset Sale made in compliance with Section 4.15; 
  
 (9) Investments made in the ordinary course of business in
export notes, trade credit assignments, bankers’ acceptances, guarantees and instruments of a similar nature issued in connection with the financing of international trading transactions by (a) any commercial bank or trust company (or any
Affiliate thereof) organized under the laws of the United States of America, any state thereof, or the District of Columbia having capital and surplus in excess of $100,000,000 or (b) any international bank of recognized standing ranking among the
world’s 300 largest commercial banks in terms of total assets; 
  
 (10) any Permitted Advances on Purchases of Tobacco; 
  
 (11) Investments made in any Person, not to exceed 10% of Consolidated Tangible Net Worth for the most recently ended fiscal quarter for
which internal financial statements are available, engaged in the business of distributing and/or processing of leaf tobacco or a business the same, similar or reasonably related thereto in which the Company (either directly or through one or more
Restricted Subsidiaries) after such Investment 

  

 -18- 

 
owns at least 10% of the equity interests of such Person and the Company (or a Restricted Subsidiary, as applicable), and has the contractual right to
purchase or process tobacco from such Person; and 
  
 (12) additional Investments in any Person engaged in the business of distributing and/or processing of leaf tobacco or a business the same, similar or reasonably related thereto in an amount not to exceed $25.0 million in the aggregate at
any one time outstanding. 
  
 “Permitted Liens”
means the following types of Liens: 
  
 (1) Liens
for taxes, assessments or governmental charges or claims either (a) not delinquent or (b) contested in good faith by appropriate proceedings and as to which the Company or its Restricted Subsidiaries shall have set aside on its books such reserves
as may be required pursuant to GAAP; 
  
 (2)
statutory Liens of landlords and Liens of carriers, warehousemen, mechanics, suppliers, materialmen, repairmen and other Liens imposed by law incurred in the ordinary course of business; 
  
 (3) Liens incurred or deposits made in the ordinary course of business in connection with workers’
compensation, unemployment insurance, pensions and other types of social security; 
  
 (4) judgment Liens not giving rise to an Event of Default so long as such Lien is adequately bonded; 
  
 (5) easements, rights-of-way, zoning restrictions and other
similar charges or encumbrances in respect of real property not interfering in any material respect with the ordinary conduct of the business of the Company and its Restricted Subsidiaries, taken as a whole; 
  
 (6) any interest or title of a lessor under any Capitalized
Lease Obligation permitted to be incurred under this Indenture; provided that such Liens do not extend to any property or assets which is not leased property subject to such Capitalized Lease Obligation; 
  
 (7) purchase money Liens to finance property or assets of
the Company or any Restricted Subsidiary of the Company acquired in the ordinary course of business; provided, however, that (a) the related Purchase Money Indebtedness is permitted to be incurred under this Indenture and shall not
exceed the cost of such property or assets and shall not be secured by any property or assets of the Company or any Restricted Subsidiary of the Company other than the property and assets so acquired and additions and accessions thereto and proceeds
therefrom and (b) the Lien securing such Indebtedness shall be created within 90 days of such acquisition; 
  

 -19- 

 (8) Liens given to secure Indebtedness described under and permitted by clause (2), (3),
(4) or (5) of the definition of “Permitted Indebtedness” (provided that during any Suspension Period, such Liens are permissible to the extent such Indebtedness would have been permitted under such clauses if Section 4.12 were then
in effect); 
  
 (9) Liens securing reimbursement
obligations with respect to commercial letters of credit which encumber documents and other property relating to such letters of credit and products and proceeds thereof; 
  
 (10) Liens encumbering deposits, including operating lease deposits made to secure obligations arising from
statutory, regulatory, contractual, or warranty requirements of the Company or any of its Subsidiaries, including rights of offset and set-off; 
  
 (11) Liens securing Interest Swap Obligations which Interest Swap Obligations relate to Indebtedness that is otherwise permitted under
this Indenture; 
  
 (12) Liens securing
Indebtedness under Currency Agreements; 
  
 (13)
Liens securing Acquired Indebtedness incurred in accordance with Section 4.12; provided that (a) such Liens secured such Acquired Indebtedness at the time of and prior to the incurrence of such Acquired Indebtedness by the Company or a
Restricted Subsidiary of the Company and were not granted in connection with, or in anticipation of, the incurrence of such Acquired Indebtedness by the Company or a Restricted Subsidiary of the Company and (b) such Liens do not extend to or cover
any property or assets of the Company or of any of its Restricted Subsidiaries other than the property or assets that secured the Acquired Indebtedness prior to the time such Indebtedness became Acquired Indebtedness of the Company or a Restricted
Subsidiary of the Company and are no more favorable to the lienholders than those securing the Acquired Indebtedness prior to the incurrence of such Acquired Indebtedness by the Company or a Restricted Subsidiary of the Company; 
  
 (14) leases or subleases granted to others not interfering
in any material respect with the business of the Company or any Restricted Subsidiary; 
  
 (15) any interest or title of a lessor in the property subject to any lease, whether characterized as capitalized or operating, other than
any such interest or title resulting from or arising out of a default by the Company or any Restricted Subsidiary of its obligations under such lease; 
  
 (16) Liens arising from filing UCC financing statements for precautionary purposes in connection with true leases of personal property
that are otherwise permitted under this Indenture and under which the Company or any Restricted Subsidiary is lessee; and 
  
 (17) Liens in favor of the Trustee and any substantially equivalent Lien granted to any trustee or similar institution under any indenture
governing Indebtedness permitted to be Incurred or outstanding under this Indenture. 
  

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 “Person” means an individual, partnership, corporation, unincorporated organization,
trust or joint venture, or a governmental agency or political subdivision thereof. 
  
 “Physical Notes” has the meaning provided in Section 2.01. 
  
 “plan of liquidation” means, with respect to any Person, a plan (including by operation of law) that provides for, contemplates or the
effectuation of which is preceded or accompanied by (whether or not substantially contemporaneously) (a) the sale, lease, conveyance or other disposition of all or substantially all of the assets of such Person otherwise than as an entirety or
substantially as an entirety and (b) the distribution of all or substantially all of the proceeds of such sale, lease, conveyance or other disposition and all or substantially all of the remaining assets of such Person to holders of Capital Stock of
such Person. 
  
 “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. 
  
 “principal” of any Indebtedness (including the Notes) means the principal amount of such Indebtedness plus
the premium, if any, on such Indebtedness. 
  
 “Principal
Paying Agent” has the meaning provided in Section 2.03. 
  
 “Private Exchange Notes” has the meaning set forth in the Registration Rights Agreement. 
  
 “Private Placement Legend” means the legend initially set forth on the Notes in the form set forth in Section 2.15. 
  
 “pro forma” means, with respect to any calculation made or
required to be made pursuant to the terms of this Indenture, a calculation in accordance with Article 11 of Regulation S-X under the Securities Act, as determined by the Board of Directors of the Company in consultation with its independent public
accountants. 
  
 “Public Equity Offering” means
an underwritten public offering of Qualified Capital Stock of the Company pursuant to a registration statement filed with the Commission in accordance with the Securities Act. 
  
 “Purchase Money Indebtedness” means Indebtedness of the Company or its Restricted Subsidiaries incurred for
the purpose of financing all or any part of the purchase price or the cost of installation, construction or improvement of any property. 
  
 “Qualified Capital Stock” means any Capital Stock that is not Disqualified Capital Stock. 
  
 “Qualified Institutional Buyer” or “QIB”
shall have the meaning specified in Rule 144A under the Securities Act. 
  

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 “Rating Agency” means each of (a) S&P and (b) Moody’s or their respective
successors. 
  
 “Receivables” means, as of any
date, all accounts receivable of the Company and its Restricted Subsidiaries arising out of the sale of Inventory in the ordinary course of business, valued in accordance with GAAP and shown on the balance sheet of the Company for the quarterly
period most recently ended prior to such date for which financial statements of the Company are available. 
  
 “Record Date” means the Record Date specified in the Notes. 
  
 “Redemption Date,” when used with respect to any Note to be redeemed, means the date fixed for such
redemption pursuant to this Indenture and the Notes. 
  
 “redemption price,” when used with respect to any Note to be redeemed, means the price fixed for such redemption, including principal and premium, if any, pursuant to this Indenture and the Notes. 
  
 “Reference Date” has the meaning set forth in Section 4.10.

  
 “Refinance” means, in respect of any security
or Indebtedness, to refinance, extend, renew, refund, repay, prepay, redeem, defease or retire, or to issue a security or Indebtedness in exchange or replacement for, such security or Indebtedness in whole or in part. “Refinanced” and
“Refinancing” shall have correlative meanings. 
  
 “Refinancing Indebtedness” means any Refinancing by the Company or any Restricted Subsidiary of the Company of Indebtedness incurred in accordance with Section 4.12 (other than pursuant to clause (2), (3), (5), (6), (7),
(8), (9), (10), (11), (12), (13), (15) or (16) of the definition of “Permitted Indebtedness”), in each case that does not (1) result in an increase in the aggregate principal amount of Indebtedness 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 Indebtedness and plus the amount of reasonable expenses incurred by the Company in connection with such Refinancing) or (2) in
any case where Indebtedness that is being Refinanced was long-term Indebtedness, create Indebtedness with (a) a Weighted Average Life to Maturity that is less than the Weighted Average Life to Maturity of the Indebtedness being Refinanced or (b) a
final maturity earlier than the final maturity of the Indebtedness being Refinanced; provided that (x) if such Indebtedness being Refinanced is Indebtedness solely of the Company, then such Refinancing Indebtedness shall be Indebtedness
solely of the Company and (y) if such Indebtedness being Refinanced is subordinate or junior to the Notes or any Guarantee, then such Refinancing Indebtedness shall be subordinate to the Notes or such Guarantee, as the case may be, at least to the
same extent and in the same manner as the Indebtedness being financed. 
  
 “Registrar” has the meaning provided in Section 2.03. 
  
 “Registration Rights Agreement” means the registration rights agreement dated as of the Issue Date, among the Company, the Guarantor and the Initial Purchasers. 
  

 -22- 

 “Regulation S” means Regulation S under the Securities Act.  
  
 “Replacement Assets” shall have the meaning set forth in
Section 4.15.  
  
 “Restricted Payment”
shall have the meaning set forth in Section 4.10. 
  
 “Restricted Security” has the meaning assigned to such term in Rule 144(a)(3) under the Securities Act; provided, however, that the Trustee shall be entitled to request and conclusively rely on an Opinion of
Counsel with respect to whether any Note constitutes a Restricted Security. 
  
 “Restricted Subsidiary” of any Person means any Subsidiary of such Person which at the time of determination is not an Unrestricted Subsidiary and shall include, on the Issue Date, every Subsidiary of
the Company. 
  
 “Reversion Date” shall have the
meaning set forth in Section 4.21.  
  
 “Rule
144A” means Rule 144A under the Securities Act. 
  
 “S&P” means Standard & Poor’s Ratings Services, a division of The McGraw-Hill Companies, Inc., or any successor thereto. 
  

“Sale and Leaseback Transaction” means any direct or indirect arrangement with any Person or to which any such Person is a party,
providing for the leasing to the Company or a Restricted Subsidiary of any property, whether owned by the Company or any Restricted Subsidiary at the Issue Date or later acquired, which has been or is to be sold or transferred by the Company or such
Restricted Subsidiary to such Person or to any other Person from whom funds have been or are to be advanced by such Person on the security of such Property. 
  
 “Securities Act” means the United States Securities Act of 1933, as amended, or any successor statute or statutes. 
  
 “Significant Subsidiary”, with respect to any Person, means
any Restricted Subsidiary of such Person that satisfies the criteria for a “significant subsidiary” set forth in Rule 1.02(w) of Regulation S-X under the Exchange Act. 
  
 “Subordinated Indebtedness” means Indebtedness of the Company or any Guarantor that is subordinate or
junior in right of payment to the Notes or the Guarantee of such Guarantor, as the case may be. 
  
 “Subsidiary” of any Person means: 
  
 (1) 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 
  
 (2) 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. 
  

 -23- 

 “Surviving Entity” shall have the meaning set forth in Section 5.01.  

 
 “Suspension Period” shall have the meaning set forth in
Section 4.21. 
  
 “TIA” means the Trust Indenture
Act of 1939 (15 U.S.C. §§ 77aaa-77bbbb), as amended, as in effect on the date of this Indenture, except as otherwise provided in Section 9.03. 
  
 “Trust Officer” means any officer or assistant officer of the Trustee assigned by the Trustee to administer this Indenture, or in the
case of a successor trustee, an officer assigned to the department, division or group performing the corporation trust work of such successor and assigned to administer this Indenture. 
  
 “Trustee” means the party named as such in this Indenture until a successor replaces it in accordance with
the provisions of this Indenture and thereafter means such successor. 
  
 “Unrestricted Subsidiary” of any Person means: 
  
 (1) any Subsidiary of such Person that at the time of determination shall be or continue to be designated an Unrestricted Subsidiary by the Board of Directors of such Person in the manner provided below; and

  
 (2) any Subsidiary of an Unrestricted
Subsidiary. 
  
 The Board of Directors may designate any
Subsidiary (including any newly acquired or newly formed Subsidiary) to be an Unrestricted Subsidiary unless such Subsidiary owns any Capital Stock of, or owns or holds any Lien on any property of, the Company or any other Subsidiary of the Company
that is not a Subsidiary of the Subsidiary to be so designated; provided that (x) the Company certifies to the Trustee that such designation complies with Section 4.10 and (y) each Subsidiary to be so designated and each of its Subsidiaries
has not at the time of designation, and does not thereafter, create, incur, issue, assume, guarantee or otherwise become directly or indirectly liable with respect to any Indebtedness pursuant to which the lender has recourse to any of the assets of
the Company or any of its Restricted Subsidiaries. 
  
 The Board
of Directors may designate any Unrestricted Subsidiary to be a Restricted Subsidiary only if (x) immediately after giving effect to such designation, the Company is able to incur at least $1.00 of additional Indebtedness (other than Permitted
Indebtedness) in compliance with Section 4.12, (y) such designation is at that time permitted under Section 4.10 and (z) immediately before and immediately after giving effect to such designation, no Default or Event of Default shall have occurred
and be continuing. Any such designation by the Board of Directors shall be evidenced to the Trustee by promptly filing with the Trustee a copy of the Board Resolution giving effect to such designation and an Officers’ Certificate certifying
that such designation complied with the foregoing provisions. 
  
 “U.S. Government Obligations” mean direct obligations of, and obligations guaranteed by, the United States of America for the payment of which the full faith and credit of the United States of America is pledged.

  

 -24- 

 “U.S. Legal Tender” means such coin or currency of the United States of America as at
the time of payment shall be legal tender for the payment of public and private debts. 
  
 “Weighted Average Life to Maturity” means, when applied to any Indebtedness at any date, the number of years obtained by dividing (a) the then outstanding aggregate principal amount of such
Indebtedness into (b) the sum of the total 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. 
  
 “Wholly Owned Restricted Subsidiary” of any Person means any Restricted Subsidiary of such Person of which all the outstanding voting
securities (other than in the case of a Foreign Restricted Subsidiary, directors’ qualifying shares or an immaterial amount of shares required to be owned by other Persons pursuant to applicable law) are owned by such Person or any Wholly Owned
Restricted Subsidiary of such Person. 
  
 SECTION 1.02.
Incorporation by Reference of TIA. 
  
 Whenever this
Indenture refers to a provision of the TIA, such provision is incorporated by reference in, and made a part of, this Indenture. The following TIA terms used in this Indenture have the following meanings: 
  
 “indenture securities” means the Notes. 
  
 “indenture security holder” means a Holder. 
  
 “indenture to be qualified” means this Indenture. 
  
 “indenture trustee” or “institutional trustee” means the
Trustee. 
  
 “obligor” on this Indenture securities
means the Company or any other obligor on the Notes. 
  
 All other
TIA terms used in this Indenture that are defined by the TIA, defined by TIA reference to another statute or defined by Commission rule and not otherwise defined herein have the meanings assigned to them therein. 
  
 SECTION 1.03. Rules of Construction. 
  
 Unless the context otherwise requires: 
  
 (1) a term has the meaning assigned to it; 
  
 (2) an accounting term not otherwise defined has the meaning
assigned to it in accordance with GAAP as of any date of determination; 
  
 (3) “or” is not exclusive; 
  

 -25- 

 (4) words in the singular include the plural, and words in the plural include he
singular; 
  
 (5) “herein,”
“hereof” and other words of similar import refer to this Indenture as a whole and not to any particular Article, Section or other subdivision; and 
  
 (6) any reference to a statute, law or regulation means that statute, law or regulation as amended and in effect from time to time and
includes any successor statute, law or regulation; provided, however, that any reference to the Bankruptcy Law shall mean the Bankruptcy Law as applicable to the relevant case. 
  
 ARTICLE TWO 
  
 THE NOTES 
  
 SECTION 2.01. Form and Dating. 
  
 The Initial Notes and the Trustee’s certificate of authentication relating thereto shall be substantially in the form of Exhibit A hereto. The
Exchange Notes and the Trustee’s certificate of authentication relating thereto shall be substantially in the form of Exhibit B hereto. The Notes may have notations, legends or endorsements required by law, stock exchange rule or
depository rule or usage. The Company and the Trustee shall approve the form of the Notes and any notation, legend or endorsement on them. If required, the Notes may bear the appropriate legend regarding any original issue discount for federal
income tax purposes. Each Note shall be dated the date of its issuance and shall show the date of its authentication. Each Note shall have an executed Guarantee from each of the Guarantors endorsed thereon substantially in the form of Exhibit
E hereto. 
  
 The terms and provisions contained in the Notes,
annexed hereto as Exhibits A and B, shall constitute, and are hereby expressly made, a part of this Indenture and, to the extent applicable, the Company, the Guarantors and the Trustee, by their execution and delivery of this Indenture,
expressly agree to such terms and provisions and to be bound thereby. 
  
 Notes offered and sold in reliance on Rule 144A, Notes offered and sold to institutional “accredited investors” (as defined in Rule 501(a)(1), (2), (3) or (7) under the Securities Act) and Notes offered and sold in reliance on
Regulation S shall be issued initially in the form of one or more permanent global Notes in registered form, substantially in the form set forth in Exhibit A (the “Global Note”), deposited with the Trustee, as custodian for
the Depository, duly executed by the Company (and having an executed Guarantee endorsed thereon) and authenticated by the Trustee as hereinafter provided and shall bear the legend set forth in Section 2.15. The aggregate principal amount of the
Global Note may from time to time be increased or decreased by adjustments made on the records of the Trustee, as custodian for the Depository, as hereinafter provided. 
  

 -26- 

 Notes issued in exchange for interests in a Global Note pursuant to Section 2.16 may be issued in the
form of permanent certificated Notes in registered form in substantially the form set forth in Exhibit A (the “Physical Notes”). All Notes offered and sold in reliance on Regulation S shall remain in the form of a Global Note
until the consummation of the Exchange Offer pursuant to the Registration Rights Agreement; provided, however, that all of the time periods specified in the Registration Rights Agreement to be complied with by the Company have been so
complied with. 
  
 SECTION 2.02. Execution and Authentication;
Aggregate Principal Amount. 
  
 Two Officers, or an Officer
and an Assistant Secretary of the Company and each Guarantor, shall sign, or one Officer shall sign and one Officer or an Assistant Secretary (each of whom shall, in each case, have been duly authorized by all requisite corporate actions) shall
attest to, the Notes for the Company and the Guarantees for the Guarantors by manual or facsimile signature. 
  
 If an Officer or Assistant Secretary whose signature is on a Note or a Guarantee was an Officer or Assistant Secretary at the time of such execution but
no longer holds that office or position at the time the Trustee authenticates the Note, the Note shall nevertheless be valid. 
  
 A Note shall not be valid until an authorized signatory of the Trustee signs the certificate of authentication on the Note by manual or facsimile
signature. The signature shall be conclusive evidence that the Note has been authenticated under this Indenture. 
  
 The Trustee shall authenticate (i) Initial Notes for original issue in the aggregate principal amount of $150,000,000 in one or more series, and subject
to Section 4.12, Additional Notes, (ii) Private Exchange Notes from time to time only in exchange for a like principal amount of Initial Notes, and subject to Section 4.12, Additional Notes, if any, (iii) Exchange Notes from time to time only in
exchange for a like principal amount of Initial Notes, and Additional Notes, if any, and (iv) Additional Notes in accordance with this Section 2.02, in each case upon a written order of the Company in the form of an Officers’ Certificate of the
Company. Each such written order shall specify the amount of Notes to be authenticated and the date on which the Notes are to be authenticated, whether the Notes are to be Initial Notes, Private Exchange Notes or Exchange Notes and whether the Notes
are to be issued as Physical Notes or Global Notes or such other information as the Trustee may reasonably request. In addition, with respect to authentication pursuant to clauses (ii) or (iii) of the first sentence of this paragraph, the first such
written order from the Company shall be accompanied by an Opinion of Counsel of the Company in a form reasonably satisfactory to the Trustee stating that the issuance of the Private Exchange Notes or the Exchange Notes, as the case may be, does not
give rise to an Event of Default, complies with this Indenture and has been duly authorized by the Company. 
  
 (1) Any Additional Notes shall be part of the same issue as the Initial Notes, including, without limitation, waivers, amendments,
redemptions, Change of Control Offer and Net Proceeds Offers. For the purpose of this Indenture, except for Section 4.12 hereof, references to the Notes include Additional Notes, if any. 
  

 -27- 

 If any of the terms of any Additional Notes are established by action taken pursuant to a Board
Resolution, a copy of an appropriate record of such action shall be certified by the Secretary or any Assistant Secretary of the Company and delivered to the Trustee at or prior to the delivery of the Officers’ Certificate or an indenture
supplemental hereto setting forth the terms of the Additional Notes. 
  
 In the event that the Company shall issue and the Trustee shall authenticate any Notes issued under this Indenture subsequent to the Issue Date pursuant to clauses (i) and (iii) of the first sentence of the fourth paragraph of this Section
2.02, the Company shall use its best efforts to obtain the same “CUSIP” number for such Notes as is printed on the Notes outstanding at such time; provided, however, that if any series of Notes issued under this
Indenture subsequent to the Issue Date is determined, pursuant to an Opinion of Counsel of the Company in a form reasonably satisfactory to the Trustee to be a different class of security than the Notes outstanding at such time for federal income
tax purposes, the Company may obtain a “CUSIP” number for such Notes that is different than the “CUSIP” number printed on the Notes then outstanding. Notwithstanding the foregoing, all Notes issued under this
Indenture shall vote and consent together on all matters as one class and no series of Notes will have the right to vote or consent as a separate class on any matter. 
  
 The Trustee may appoint an authenticating agent (the “Authenticating Agent”) reasonably acceptable to the
Company to authenticate Notes. Unless otherwise provided in the appointment, an Authenticating Agent may authenticate Notes whenever the Trustee may do so. Each reference in this Indenture to authentication by the Trustee includes authentication by
such Authenticating Agent. An Authenticating Agent has the same rights as an Agent to deal with the Company or with any Affiliate of the Company. 
  
 The Notes shall be issuable in fully registered form only, without coupons, in denominations of $1,000 and any integral multiple thereof. 
  
 SECTION 2.03. Registrar and Paying Agent. 
  
 The Company shall maintain an office or agency where Notes may be presented
for registration of transfer or for exchange (the “Registrar”). The Company shall maintain a registrar in the Borough of Manhattan, the City of New York, the State of New York; in London, England; and, so long as the Notes are
listed on the Luxembourg Stock Exchange and the rules of such exchange so require, in Luxembourg where the Notes may be presented for registration of transfer or for exchange. The term “Registrar” includes the foregoing co-Registrars in
New York, London, and Luxembourg and any additional co-registrars. The Company shall maintain (i) an office or agency in the Borough of Manhattan, the City of New York, the State of New York where Notes may be presented for payment (the
“Principal Paying Agent”), (ii) an office or agency in London, England or any other money-center city in the European Union or Switzerland where Notes may be presented for payment (the “E.U. Paying Agent”) and (iii) so long as the Notes are listed on the Luxembourg Stock Exchange and if required by the rules of the Luxembourg
Stock Exchange, an office or agency in Luxembourg where Notes may be presented for payment (the “Luxembourg Paying Agent”). The Registrar shall keep a register of the Notes and of their transfer and exchange. The Company, upon prior
written notice to the Trustee, may have one or more co-Registrars and one or more additional paying agents reasonably 

  

 -28- 

 
acceptable to the Trustee. The term “Paying Agent” includes the Principal Paying Agent, the E.U. Paying Agent and the Luxembourg Paying Agent and
any additional paying agents. The Company may act as its own Paying Agent, except that for the purposes of payments on the Notes pursuant to Sections 4.14 and 4.15, neither the Company nor any Affiliate of the Company may act as Paying Agent. The
Company shall maintain an office or agency in the Borough of Manhattan, the City of New York, the State of New York where notices and demands to or upon the Company in respect of the Notes and this Indenture may be served. 
  
 The Company shall enter into an appropriate agency agreement with any Agent
not a party to this Indenture, which agreement shall incorporate the provisions of the TIA and implement the provisions of this Indenture that relate to such Agent; provided that any such agency agreement with the Luxembourg Paying Agent need
not incorporate provisions of the TIA. The Company shall notify the Trustee, in advance, of the name and address of any such Agent. If the Company fails to maintain a Registrar or Paying Agents, or fails to give the foregoing notice, the Trustee
shall act as such. 
  
 The Company may change Paying Agents or
Registrars without prior notice to the Holders; provided, however, that if and for so long as the Notes are listed on the Luxembourg Stock Exchange and the rules of such exchange so require, the Company will publish notice of the
change in Paying Agents or Registrars in a daily newspaper having general circulation in Luxembourg (which is expected to be the Luxembourger Wort). 
  
 The Company initially appoints the Trustee as Registrar in New York, Principal Paying Agent and agent for service of demands and notices in connection
with the Notes, until such time as the Trustee has resigned or a successor has been appointed. The Company initially appoints The Bank of New York, London Branch as Registrar and E.U. Paying Agent. The Company initially appoints The Bank of New York
(Luxembourg) S.A. as Registrar and Luxembourg Paying Agent. Any of the Registrar, the Paying Agent or any other agent may resign upon 30 days’ notice to the Company. 
  
 SECTION 2.04. Paying Agent To Hold Assets in Trust. 
  
 The Company shall require each Paying Agent other than the Trustee to agree in writing that such Paying Agent shall hold in
trust for the benefit of the Holders or the Trustee all assets held by the Paying Agent for the payment of principal of, premium, if any, or interest on, the Notes (whether such assets have been distributed to it by the Company or any other obligor
on the Notes), and the Company and the Paying Agent shall notify the Trustee of any Default by the Company (or any other obligor on the Notes) in making any such payment. The Company at any time may require a Paying Agent to distribute all assets
held by it to the Trustee and account for any assets disbursed and the Trustee may at any time during the continuance of any payment Default, upon written request to a Paying Agent, require such Paying Agent to distribute all assets held by it to
the Trustee and to account for any assets distributed. Upon distribution to the Trustee of all assets that shall have been delivered by the Company to the Paying Agent, the Paying Agent shall have no further liability for such assets. 
  

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 SECTION 2.05. Holder Lists. 
  
 The Trustee shall preserve in as current a form as is reasonably practicable the most recent list available to it of the
names and addresses of the Holders. If the Trustee is not the Registrar, the Company shall furnish or cause the Registrar to furnish to the Trustee before each Record Date and at such other times as the Trustee may request in writing a list as of
such date and in such form as the Trustee may reasonably require of the names and addresses of the Holders, which list may be conclusively relied upon by the Trustee. 
  
 SECTION 2.06. Transfer and Exchange. 
  
 When Notes are presented to the Registrar with a request to register the transfer of such Notes or to exchange such Notes
for an equal principal amount of Notes or other authorized denominations, the Registrar shall register the transfer or make the exchange as requested if its requirements for such transaction are met; provided, however, that the Notes
presented or surrendered for registration of transfer or exchange shall be duly endorsed or accompanied by a written instrument of transfer in form satisfactory to the Company, the Trustee and the Registrar, duly executed by the Holder thereof or
his attorney duly authorized in writing. To permit registration of transfers and exchanges, the Company shall execute and the Trustee shall authenticate Notes and each of the Guarantors shall execute a Guarantee thereon at the Registrar’s
request. No service charge shall be made for any registration of transfer or exchange, but the Company may require payment of a sum sufficient to cover any transfer tax, fee or similar governmental charge payable in connection therewith (other than
any such transfer taxes or similar governmental charge payable upon exchanges or transfers pursuant to Section 2.10, 3.04, 4.14, 4.15 or 9.05, in which event the Company shall be responsible for the payment of such taxes). 
  
 The Registrar shall not be required to register the transfer of or exchange
of any Note (i) during a period beginning at the opening of business 15 days before the mailing of a notice of redemption of Notes and ending at the close of business on the day of such mailing and (ii) selected for redemption in whole or in part
pursuant to Article Three, except the unredeemed portion of any Note being redeemed in part. 
  
 Any Holder of a beneficial interest in a Global Note shall, by acceptance of such Global Note, agree that transfers of beneficial interests in such Global Notes may be effected only through a book entry system
maintained by the Holder of such Global Note (or its agent), and that ownership of a beneficial interest in the Note shall be required to be reflected in a book entry system. 
  
 SECTION 2.07. Replacement Notes. 
  
 If a mutilated Note is surrendered to the Trustee or if the Holder of a Note claims that the Note has been lost, destroyed
or wrongfully taken, the Company shall issue and the Trustee shall authenticate a replacement Note and each of the Guarantors shall execute a Guarantee thereon if the Trustee’s requirements are met. If required by the Trustee or the Company,
such Holder must provide an indemnity bond or other indemnity of reasonable tenor, sufficient in the reasonable judgment of the Company, the Guarantors and the Trustee, to protect the Company, the Guarantors, the Trustee or any Agent from any loss
which any of them may suffer if a Note is 

  

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replaced. Every replacement Note shall constitute an additional obligation of the Company and the Guarantors. 
  
 SECTION 2.08. Outstanding Notes. 
  
 Notes outstanding at any time are all the Notes that have been authenticated
by the Trustee except those canceled by it, those delivered to it for cancellation and those described in this Section as not outstanding. Subject to the provisions of Section 2.09, a Note does not cease to be outstanding because the Company or any
of its Affiliates holds the Note. 
  
 If a Note is replaced
pursuant to Section 2.07 (other than a mutilated Note surrendered for replacement), it ceases to be outstanding unless the Trustee receives proof satisfactory to it that the replaced Note is held by a bona fide purchaser. A mutilated
Note ceases to be outstanding upon surrender of such Note and replacement thereof pursuant to Section 2.07. 
  
 If on a Redemption Date or the Maturity Date the Paying Agent holds U.S. Legal Tender or U.S. Government Obligations sufficient to pay all of the
principal, premium, if any, and interest due on the Notes payable on that date and is not prohibited from paying such money to the Holders thereof pursuant to the terms of this Indenture, then on and after that date such Notes shall be deemed not to
be outstanding and interest on them shall cease to accrue. 
  
 SECTION 2.09. Treasury Notes. 
  
 In determining
whether the Holders of the required principal amount of Notes have concurred in any direction, waiver, consent or notice, Notes owned by the Company or an Affiliate of the Company shall be considered as though they are not outstanding. The Company
shall notify the Trustee, in writing, when it or, to its knowledge, any of its Affiliates repurchases or otherwise acquires Notes, of the aggregate principal amount of such Notes so repurchased or otherwise acquired and such other information as the
Trustee may reasonably request and the Trustee shall be entitled to rely thereon. 
  
 SECTION 2.10. Temporary Notes. 
  
 Until definitive Notes are ready for delivery, the Company may prepare and the Trustee shall authenticate temporary Notes upon receipt of a written order of the Company in the form of an Officers’ Certificate. The Officers’
Certificate shall specify the amount of temporary Notes to be authenticated and the date on which the temporary Notes are to be authenticated. Temporary Notes shall be substantially in the form of definitive Notes but may have variations that the
Company considers appropriate for temporary Notes and so indicate in the Officers’ Certificate. Without unreasonable delay, the Company shall prepare, the Trustee shall authenticate and the Guarantors shall execute Guarantees on, upon receipt
of a written order of the Company pursuant to Section 2.02, definitive Notes in exchange for temporary Notes. 
  
 SECTION 2.11. Cancellation. 
  
 The Company at any time may deliver Notes to the Trustee for cancellation. The Registrar and the Paying Agent shall forward to the Trustee any Notes
surrendered to them for 

  

 -31- 

 
transfer, exchange or payment. The Trustee, or at the direction of the Trustee, the Registrar or the Paying Agent, and no one else, shall cancel and, at the
written direction of the Company, shall dispose, in its customary manner, of all Notes surrendered for transfer, exchange, payment or cancellation. Subject to Section 2.07, the Company may not issue new Notes to replace Notes that they have paid or
delivered to the Trustee for cancellation. If the Company shall acquire any of the Notes, such acquisition shall not operate as a redemption or satisfaction of the Indebtedness represented by such Notes unless and until the same are surrendered to
the Trustee for cancellation pursuant to this Section 2.11. 
  
 SECTION 2.12. Defaulted Interest. 
  
 The Company
will pay interest on overdue principal from time to time on demand at the rate of interest then borne by the Notes. The Company shall, to the extent lawful, pay interest on overdue installments of interest (without regard to any applicable grace
periods) from time to time on demand at the rate of interest then borne by the Notes. Interest will be computed on the basis of a 360-day year comprised of twelve 30-day months, and, in the case of a partial month, the actual number of days elapsed.

  
 If the Company defaults in a payment of interest on the Notes,
it shall pay the defaulted interest, plus (to the extent lawful) any interest payable on the defaulted interest, to the Persons who are Holders on a subsequent special record date, which special record date shall be the fifteenth day next preceding
the date fixed by the Company for the payment of defaulted interest or the next succeeding Business Day if such date is not a Business Day. The Company shall notify the Trustee in writing of the amount of defaulted interest proposed to be paid on
each Note and the date of the proposed payment (a “Default Interest Payment Date”), and at the same time the Company shall deposit with the Trustee an amount of money equal to the aggregate mount proposed to be paid in respect of
such defaulted interest or shall make arrangements satisfactory to the Trustee for such deposit on or prior to the date of the proposed payment, such money when deposited to be held in trust for the benefit of the Persons entitled to such defaulted
interest as provided in this Section; provided, however, that in no event shall the Company deposit monies proposed to be paid in respect of defaulted interest later than 11:00 a.m. New York City time of the proposed Default Interest
Payment Date. At least 15 days before the subsequent special record date, the Company shall mail (or cause to be mailed) to each Holder, as of a recent date selected by the Company, with a copy to the Trustee, a notice that states the subsequent
special record date, the payment date and the amount of defaulted interest, and interest payable on such defaulted interest, if any, to be paid. Notwithstanding the foregoing, any interest which is paid prior to the expiration of the 30-day period
set forth in Section 6.01 (a) shall be paid to Holders as of the regular record date for the Interest Payment Date for which interest has not been paid. Notwithstanding the foregoing, the Company may make payment of any defaulted interest in any
other lawful manner not inconsistent with the requirements of any securities exchange or market on which the Notes may be listed, and upon such notice as may be required by such exchange. 
  
 SECTION 2.13. CUSIP Numbers. 
  
 The Company in issuing the Notes may use a “CUSIP” number, and, if so, the Trustee shall use the CUSIP number in
notices of redemption or exchange as a convenience to 

  

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Holders; provided, however, that no representation is hereby deemed to be made by the Trustee as to the correctness or accuracy of the CUSIP
number printed in the notice or on the Notes, and that reliance may be placed only on the other identification numbers printed on the Notes. The Company shall promptly notify the Trustee of any change in the CUSIP number. 
  
 SECTION 2.14. Deposit of Monies. 
  
 Prior to 11:00 a.m. New York City time on each Interest Payment Date,
Maturity Date, Redemption Date, Change of Control Payment Date and Net Proceeds Offer Payment Date, the Company shall have deposited with the Paying Agent in immediately available funds money sufficient to make cash payments, if any, due on such
Interest Payment Date, Maturity Date, Redemption Date, Change of Control Payment Date and Net Proceeds Offer Payment Date, as the case may be, in a timely manner which permits the Paying Agent to remit payment to the Holders on such Interest Payment
Date, Maturity Date, Redemption Date, Change of Control Payment Date and Net Proceeds Offer Payment Date, as the case may be. 
  
 SECTION 2.15. Restrictive Legends. 
  
 Each Global Note and Physical Note that constitutes a Restricted Security or is sold in compliance with Regulation S shall bear the following legend (the
“Private Placement end”) on the face thereof until after the second anniversary of the later of the Issue Date and the last date on which the Company or any Affiliate of the Company was the owner of such Note (or any predecessor
security) (or such shorter period of time as permitted by Rule 144(k) under the Securities Act or any successor provision thereunder) (or such longer period of time as may be required under the Securities Act or applicable state securities laws in
the opinion of counsel for the Company, unless otherwise agreed by the Company and the Holder thereof): 
  
 THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND,
ACCORDINGLY, MAY NOT BE OFFERED OR SOLD WITHIN THE UNITED STATES OR TO, OR FOR THE ACCOUNT OR BENEFIT OF, U.S. PERSONS EXCEPT AS SET FORTH BELOW. BY ITS ACQUISITION HEREOF, THE HOLDER (1) REPRESENTS THAT (A) IT IS A “QUALIFIED INSTITUTIONAL
BUYER” (AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT), (B) IT IS NOT A U.S. PERSON AND IS ACQUIRING THIS SECURITY IN AN OFFSHORE TRANSACTION IN COMPLIANCE WITH RULE 904 OF REGULATION S UNDER THE SECURITIES ACT, OR (C) IT IS AN ACCREDITED
INVESTOR (AS DEFINED IN RULE 501(a)(1), (2), (3), OR (7) UNDER THE SECURITIES ACT) (AN “ACCREDITED INVESTOR”), (2) AGREES THAT IT WILL NOT WITHIN TWO YEARS AFTER THE ORIGINAL ISSUANCE OF THIS SECURITY RESELL OR OTHERWISE TRANSFER THIS
SECURITY EXCEPT (A) TO THE COMPANY OR ANY SUBSIDIARY THEREOF, (B) INSIDE THE UNITED STATES TO A QUALIFIED INSTITUTIONAL BUYER IN COMPLIANCE WITH RULE 144A UNDER THE SECURITIES ACT, (C) INSIDE THE UNITED STATES TO AN ACCREDITED INVESTOR THAT, PRIOR
TO SUCH TRANSFER, FURNISHES (OR HAS FURNISHED ON ITS BEHALF BY A U.S. BROKER- 

  

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DEALER) TO THE TRUSTEE A SIGNED LETTER CONTAINING CERTAIN REPRESENTATIONS AND AGREEMENTS RELATING TO THE RESTRICTIONS ON TRANSFER OF THIS SECURITY (THE FORM
OF WHICH LETTER CAN BE OBTAINED FROM THE TRUSTEE FOR THIS SECURITY), (D) OUTSIDE THE UNITED STATES IN AN OFFSHORE TRANSACTION IN COMPLIANCE WITH RULE 904 OF REGULATION S UNDER THE SECURITIES ACT (IF AVAILABLE), (E) PURSUANT TO THE EXEMPTION FROM
REGISTRATION PROVIDED BY RULE 144 UNDER THE SECURITIES ACT (IF AVAILABLE), (F) IN ACCORDANCE WITH ANOTHER EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT, (AND BASED UPON AN OPINION OF COUNSEL IF THE COMPANY SO REQUESTS), OR (G)
PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT AND (3) AGREES THAT IT WILL GIVE TO EACH PERSON TO WHOM THIS SECURITY IS TRANSFERRED A NOTICE SUBSTANTIALLY TO THE EFFECT OF THIS LEGEND. IN CONNECTION WITH ANY TRANSFER OF
THIS SECURITY WITHIN TWO YEARS AFTER THE ORIGINAL ISSUANCE OF THIS SECURITY, IF THE PROPOSED TRANSFEREE IS AN ACCREDITED INVESTOR, THE HOLDER MUST, PRIOR TO SUCH TRANSFER, FURNISH TO THE TRUSTEE AND THE COMPANY SUCH CERTIFICATIONS, LEGAL OPINIONS OR
OTHER INFORMATION AS EITHER OF THEM MAY REASONABLY REQUIRE TO CONFIRM THAT SUCH TRANSFER IS BEING MADE PURSUANT TO AN EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT. AS USED HEREIN, THE TERMS
“OFFSHORE TRANSACTION,” “UNITED STATES” AND “U.S. PERSON” HAVE THE MEANING GIVEN TO THEM BY REGULATION S UNDER THE SECURITIES ACT. 
  

Each Global Note shall also bear the following legend on the face thereof: 
  
 UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR SECURITIES IN DEFINITIVE FORM, THIS SECURITY MAY
NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITORY TO A NOMINEE OF THE DEPOSITORY, OR BY ANY SUCH NOMINEE OF THE DEPOSITORY, OR BY THE DEPOSITORY OR NOMINEE OF SUCH SUCCESSOR DEPOSITORY OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITORY OR A NOMINEE
OF SUCH SUCCESSOR DEPOSITORY. UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR
PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT HEREON IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN

  

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AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL IN AS MUCH AS THE
REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN. 
  
 TRANSFERS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS IN WHOLE, BUT NOT IN PART, TO NOMINEES OF CEDE & CO. 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 SECTION 2.17 OF THE INDENTURE. 
  
 SECTION 2.16. Book-Entry Provisions for Global Security. 
  

(a) The Global Notes initially shall (i) be registered in the name of the De pository or the nominee of such Depository, (ii) be delivered to the
Trustee as custodian for such Depository and (iii) bear legends as set forth in Section 2.15. 
  
 Members of, or participants in, the Depository (“Agent Members”) shall have no rights under this Indenture with respect to any Global Note held on their behalf by the Depository, or the Trustee as its
custodian, or under the Global Notes, and the Depository may be treated by the Company, the Trustee and any Agent of the Company or the Trustee as the absolute owner of such Global Note for all purposes whatsoever. Notwithstanding the foregoing,
nothing herein shall prevent the Company, the Trustee or any Agent of the Company or the Trustee from giving effect to any written certification, proxy or other authorization furnished by the Depository or impair, as between the Depository and its
Agent Members, the operation of customary practices governing the exercise of the rights of a Holder of any Note. 
  
 (b) Transfers of a Global Note shall be limited to transfers in whole, but not in part, to the Depository, its successors or their respective nominees.
Interests of beneficial owners in a Global Note may be transferred or exchanged for Physical Notes in accordance with the rules and procedures of the Depository and the provisions of Section 2.17. In addition, Physical Notes shall be transferred to
all beneficial owners in exchange for their beneficial interests in a Global Note if (i) the Depository notifies the Company that it is unwilling or unable to continue as Depository for the Global Notes and a successor depositary is not appointed by
the Company within 90 days of such notice or (ii) an Event of Default has occurred and is continuing and the Registrar has received a written request from the Depository to issue Physical Notes. 
  
 (c) In connection with any transfer or exchange of a portion of the
beneficial interest in a Global Note to beneficial owners pursuant to paragraph (b), the Registrar shall (if one or more Physical Notes are to be issued) reflect on its books and records the date and a decrease in the principal amount of such Global
Note in an amount equal to the principal amount of the beneficial interest in the Global Note to be transferred, and the Company shall execute, the Guarantors shall execute Guarantees on, and the Trustee shall authenticate and deliver, one or more
Physical Notes of like tenor and amount. 
  

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 (d) In connection with the transfer of an entire Global Note to beneficial owners pursuant to paragraph
(b), such Global Note shall be deemed to be surrendered to the Trustee for cancellation, and the Company shall execute, the Guarantors shall execute Guarantees on and the Trustee shall authenticate and deliver, to each beneficial owner identified by
the Depository in exchange for its beneficial interest in the Global Note, an equal aggregate principal amount of Physical Notes of authorized denominations. 
  
 (e) Any Physical Note constituting a Restricted Security delivered in exchange for an interest in a Global Note pursuant to paragraph (b) or (c) shall,
except as otherwise provided by paragraphs (a)(i)(x) and (c) of Section 2.17, bear the legend regarding transfer restrictions applicable to the Physical Notes set forth in Section 2.15. 
  
 (f) The Holder of a Global Note may grant proxies and otherwise authorize any Person, including Agent Members and Persons
that may hold interests through Agent Members, to take any action which a Holder is entitled to take under this Indenture or the Notes. 
  
 SECTION 2.17. Special Transfer Provisions. 
  
 (a) Transfers to Non-QIB Institutional Accredited Investors and Non-U.S. Persons. The following provisions shall apply with respect to the
registration of any proposed transfer of a Note constituting a Restricted Security to any Institutional Accredited Investor which is not a QIB or to any Non-U.S. Person: 
  
 (i) the Registrar shall register the transfer of any Note constituting a Restricted Security, whether or not
such Note bears the Private Placement Legend, if (x) the requested transfer is after the second anniversary of the Issue Date (provided, however, that neither the Company nor any Affiliate of the Company has held any beneficial
interest in such Note, or portion thereof, at any time on or prior to the second anniversary of the Issue Date) or (y) (1) in the case of a transfer to an Institutional Accredited Investor which is not a QIB (excluding Non-U.S. Persons), the
proposed transferee has delivered to the Registrar a certificate substantially in the form of Exhibit C hereto and any legal opinions and certifications required thereby or (2) in the case of a transfer to a Non-U.S. Person, the proposed
transferor has delivered to the Registrar a certificate substantially in the form of Exhibit D hereto; and 
  
 (ii) if the proposed transferor is an Agent Member holding a beneficial interest in the Global Note, upon receipt by the Registrar of (x)
the certificate, if any, required by paragraph (i) above and (y) written instructions given in accordance with the Depository’s and the Registrar’s procedures, 
  
 whereupon (a) the Registrar shall reflect on its books and records the date and (if the transfer does not involve a transfer of outstanding
Physical Notes) a decrease in the principal amount of such Global Note in an amount equal to the principal amount of the beneficial interest in the Global Note to be transferred, and (b) the Company shall execute, the Guarantors shall execute the
Guarantees on and the Trustee shall authenticate and deliver one or more Physical Notes of like tenor and amount. 
  

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 (b) Transfers to QIBs. The following provisions shall apply with respect to the registration of
any proposed transfer of a Note constituting a Restricted Security to a QIB (excluding transfers to Non-U.S. Persons): 
  
 (i) the Registrar shall register the transfer if such transfer is being made by a proposed transferor who has checked the box provided for
on the form of Note stating, or has otherwise advised the Company and the Registrar in writing, that the sale has been made in compliance with the provisions of Rule 144A to a transferee who has signed the certification provided for on the form of
Note stating, or has otherwise advised the Company and the Registrar in writing, that it is purchasing the Note for its own account or an account with respect to which it exercises sole investment discretion and that it and any such account is a QIB
within the meaning of Rule 144A, and is aware that the sale to it is being made in reliance on Rule 144A and acknowledges that it has received such information regarding the Company as it has requested pursuant to Rule 144A or has determined not to
request such information and that it is aware that the transferor is relying upon its foregoing representations in order to claim the exemption from registration provided by Rule 144A; and 
  
 (ii) if the proposed transferee is an Agent Member, and the
Notes to be transferred consist of Physical Notes which after transfer are to be evidenced by an interest in a Global Note, upon receipt by the Registrar of written instructions given in accordance with the Depository’s and the Registrar’s
procedures, the Registrar shall reflect on its books and records the date and an increase in the principal amount of such Global Note in an amount equal to the principal amount of the Physical Notes to be transferred, and the Trustee shall cancel
the Physical Notes so transferred. 
  
 (c) Private Placement
Legend. Upon the transfer, exchange or replacement of Notes not bearing the Private Placement Legend, the Registrar shall deliver Notes that do not bear the Private Placement Legend. Upon the transfer, exchange or replacement of Notes bearing
the Private Placement Legend, the Registrar shall deliver only Notes that bear the Private Placement Legend unless (i) the requested transfer is after the second anniversary of the Issue Date (provided, however, that neither the
Company nor any Affiliate of the Company has held any beneficial interest in such Note, or portion thereof, at any time prior to or on the second anniversary of the Issue Date), or (ii) there is delivered to the Registrar an Opinion of Counsel
reasonably satisfactory to the Company and the Trustee to the effect that neither such legend nor the related restrictions on transfer are required in order to maintain compliance with the provisions of the Securities Act. 
  
 (d) General. By its acceptance of any Note bearing the Private
Placement Legend, each Holder of such a Note acknowledges the restrictions on transfer of such Note set forth in this Indenture and in the Private Placement Legend and agrees that it will transfer such Note only as provided in this Indenture.

  
 The Registrar shall retain copies of all letters, notices and
other written communications received pursuant to Section 2.16 or this Section 2.17. The Company shall have the right to inspect and make copies of all such letters, notices or other written communications at any 

  

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reasonable time during the Registrar’s normal business hours upon the giving of reasonable written notice to the Registrar. 
  
 (e) Transfers of Notes Held by Affiliates. Any certificate (i)
evidencing a Note that has been transferred to an Affiliate of the Company within two years after the Issue Date, as evidenced by a notation on the Assignment Form for such transfer or in the representation letter delivered in respect thereof or
(ii) evidencing a Note that has been acquired from an Affiliate (other than by an Affiliate) in a transaction or a chain of transactions not involving any public offering, shall, until two years after the last date on which either the Company or any
Affiliate of the Company was an owner of such Note, in each case, bear a legend in substantially the form set forth in Section 2.15 hereof, unless otherwise agreed by the Company (with written notice thereof to the Trustee). 
  
 SECTION 2.18. Additional Interest Under Registration Rights Agreement.

  
 Under certain circumstances, the Company shall be obligated
to pay Additional Interest to the Holders, all as set forth in Section 4 of the Registration Rights Agreement. The terms thereof are hereby incorporated herein by reference. Notwithstanding such incorporation by reference, the Trustee shall have no
duties or obligations under the Registration Rights Agreement. The Company shall notify the Trustee if any Additional Interest is payable on the Notes. 
  
 ARTICLE THREE  
  
 REDEMPTION 
  
 SECTION 3.01. Notices to Trustee. 
  
 If the
Company elects to redeem Notes pursuant to Paragraph 6 of the Notes and Section 3.03, it shall notify the Trustee and the Paying Agent in writing of the Redemption Date and the principal amount of the Notes to be redeemed. 
  
 The Company shall give each notice provided for in this Section 3.01, 60 days
before the Redemption Date (unless a shorter notice period shall be satisfactory to the Trustee, as evidenced in a writing signed on behalf of the Trustee), together with an Officers’ Certificate stating that such redemption shall comply with
the conditions contained herein and in the Notes. 
  
 SECTION
3.02. Selection of Notes To Be Redeemed. 
  
 In the event
that less than all of the Notes are to be redeemed at any time, selection of such Notes for redemption will be made by the Trustee in compliance with the requirements of the principal national securities exchange, if any, on which such Notes are
listed or, if such Notes are not then listed on a national securities exchange or market, on a pro rata basis, by lot or by such method as the Trustee shall deem fair and appropriate, provided, however, that no 

  

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Notes of a principal amount of U.S. $1,000 or less shall be redeemed in part. Notice of redemption shall be mailed by first-class mail at least 30 but not
more than 60 days before the Redemption Date to each Holder of Notes to be redeemed at its registered address. If any Note is to be redeemed in part only, the notice of redemption that relates to such Note shall state the portion of the principal
amount thereof to be redeemed. A new Note in a principal amount equal to the unredeemed portion thereof will be issued and delivered to the Depositary or, in the case of Certificated Securities, issued in the name of the Holder thereof upon
cancellation of the original Note. On and after the redemption date, interest will cease to accrue on Notes or portions thereof called for redemption as long as the Company has deposited with the Paying Agent funds in satisfaction of the applicable
redemption price pursuant to this Indenture. 
  
 If less than all
of the Notes tendered are to be redeemed pursuant to the provisions of Section 3.03(b), the Trustee shall select the Notes only on a pro rata basis or on as nearly a pro rata basis as is practicable (subject to DTC
procedures), unless such method is otherwise prohibited. 
  
 SECTION 3.03. Optional Redemptions. 
  
 (a) The
Notes will be redeemable, at the Company’s option, in whole at any time or in part from time to time, on and after April 15, 2008, upon not less than 30 nor more than 60 days’ notice, at the following redemption prices (expressed as
percentages of the principal amount thereof) if redeemed during the twelve-month period commencing on April 15 of the year set forth below, plus, in each case, accrued and unpaid interest thereon, if any, to the date of redemption: 
  

				
	 Year

	  	Percentage

	 
	 2008
	  	104.000	%
	 2009
	  	102.000	%
	 2010 and thereafter
	  	100.000	%

  
 (b) At any time, or
from time to time, on or prior to April 15, 2007, the Company may, at its option, use the net cash proceeds of one or more Public Equity Offerings to redeem up to 35% of the principal amount of the Notes issued under this Indenture at a redemption
price of 108% of the principal amount thereof plus accrued and unpaid interest thereon, if any, to the Redemption Date; provided that 
  
 (1) at least 65% of the principal amount of Notes issued under this Indenture remains outstanding immediately after any such redemption;
and 
  
 (2) the Company makes such redemption not
more than 90 days after the consummation of any such Public Equity Offering. 
  
 SECTION 3.04. Notice of Redemption. 
  
 At least 30 days but not more than 60 days before the Redemption Date, the Company shall mail or cause to be mailed a notice of redemption by first class mail to each 

  

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Holder of Notes to be redeemed at its registered address, with a copy to the Trustee and any Paying Agent. If and so long as the Notes are listed on the
Luxembourg Stock Exchange, and the rules of such exchange so require, the Company shall publish such notice in a newspaper having a general circulation in Luxembourg (which is expected to be the Luxembourger Wort). At the Company’s
request, the Trustee shall give the notice of redemption in the Company’s name and at the Company’s expense. The Company shall provide such notices of redemption to the Trustee at least five days before the intended mailing date.

  
 Each notice of redemption shall identify (including the CUSIP
number) the Notes to be redeemed and shall state: 
  
 (a) the Redemption Date; 
  
 (b) the
redemption price and the amount of accrued interest, if any, to be paid; 
  
 (c) the name and address of the Paying Agent; 
  
 (d) the subparagraph of the Notes pursuant to which such redemption is being made; 
  
 (e) that Notes called for redemption must be surrendered to the Paying Agent to collect the redemption price plus accrued interest, if
any; 
  
 (f) that, unless the Company defaults in
making the redemption payment, interest on Notes or applicable portions thereof called for redemption ceases to accrue on and after the Redemption Date, and the only remaining right of the Holders of such Notes is to receive payment of the
redemption price plus accrued and unpaid interest as of the Redemption Date, if any, upon surrender to the Paying Agent of the Notes redeemed; 
  
 (g) if any Note is being redeemed in part, the portion of the principal amount of such Note to be redeemed and that, after the Redemption
Date, and upon surrender of such Note, a new Note or Notes in the aggregate principal amount equal to the unredeemed portion thereof will be issued; and 
  
 (h) if fewer than all the Notes are to be redeemed, the identification of the particular Notes (or portion thereof) to be redeemed, as
well as the aggregate principal amount of Notes to be redeemed and the aggregate principal amount of Notes to be outstanding after such partial redemption. 
  
 The Company will comply with the requirements of Rule 14e-1 under the Exchange Act and any other securities laws and regulations thereunder to the extent
such laws and regulations are applicable in connection with the purchase of Notes. 
  
 SECTION 3.05. Effect of Notice of Redemption. 
  
 Once notice of redemption is mailed in accordance with Section 3.04, such notice of redemption shall be irrevocable and Notes called for redemption become due and payable on 

  

 -40- 

 
the Redemption Date and at the redemption price plus accrued and unpaid interest as of such date, if any. Upon surrender to the Trustee or Paying Agent, such
Notes called for redemption shall be paid at the redemption price plus accrued and unpaid interest, if any, thereon to the Redemption Date, but installments of interest, the maturity of which is on or prior to the Redemption Date, shall be payable
to Holders of record at the close of business on the relevant record dates referred to in the Notes. Interest shall accrue on or after the Redemption Date and shall be payable only if the Company defaults in payment of the redemption price.

  
 SECTION 3.06. Deposit of Redemption Price. 

 
 On or before the Redemption Date and in accordance with Section 2.14, the
Company shall deposit with the Paying Agent U.S. Legal Tender sufficient to pay the redemption price plus accrued and unpaid interest, if any, of all Notes to be redeemed on that date. The Paying Agent shall promptly return to the Company any U.S.
Legal Tender so deposited which is not required for that purpose, except with respect to monies owed as obligations to the Trustee pursuant to Article Seven. 
  
 Unless the Company fails to comply with the preceding paragraph and defaults in the payment of such redemption price plus accrued and unpaid interest, if
any, interest on the Notes to be redeemed will cease to accrue on and after the applicable Redemption Date, whether or not such Notes are presented for payment. 
  

SECTION 3.07. Notes Redeemed in Part. 
  
 Upon surrender of a Note that is to be redeemed in part, the Trustee shall authenticate for the Holder a new Note or Notes equal in principal amount to
the unredeemed portion of the Note surrendered. 
  
 ARTICLE FOUR
 
  
 COVENANTS 
  
 SECTION 4.01. Payment of Notes. 
  
 (a) The Company shall pay the principal of, premium, if any,
and interest on the Notes on the dates and in the manner provided in the Notes and in this Indenture. 
  
 (b) An installment of principal of or interest on the Notes shall be considered paid on the date it is due if the Trustee or Paying Agent
(other than the Company or any of its Affiliates) holds, prior to 11:00 a.m. New York City time on that date, U.S. Legal Tender designated for and sufficient to pay the installment in full and is not prohibited from paying such money to the Holders
pursuant to the terms of this Indenture or the Notes. 
  
 (c) Notwithstanding anything to the contrary contained in this Indenture, the Company may, to the extent they are required to do so by law, deduct or withhold income or 

  

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other similar taxes imposed by the United States of America from principal or interest payments hereunder. 
  
 SECTION 4.02. Maintenance of Office or Agency. 
  
 The Company shall maintain the office or agency required under Section 2.03.
The Company shall give prior written notice to the Trustee of the location, and any change in the location, of such office or agency. If at any time the Company shall fail to maintain any such required office or agency or shall fail to furnish the
Trustee with the address thereof, such presentations, surrenders, notices and demands may be made or served at the address of the Trustee set forth in Section 10.02. 
  
 SECTION 4.03. Corporate Existence. 
  
 Except as provided in Article Five and Section 11.04, the Company shall do or shall cause to be done all things necessary to
preserve and keep in full force and effect its corporate existence and the corporate, partnership or other existence of the Guarantor in accordance with the respective organizational documents of the Company and the Guarantor and the rights (charter
and statutory) and material franchises of the Company and the Guarantor. 
  
 SECTION 4.04. Payment of Taxes and Other Claims. 
  
 The Company shall pay or discharge or cause to be paid or discharged, before the same shall become delinquent, (i) all material taxes, assessments and governmental charges (including withholding taxes and any
penalties, interest and additions to taxes) levied or imposed upon the Company or any of the Subsidiaries or properties of the Company or any of the Subsidiaries and (ii) all material lawful claims for labor, materials and supplies that, if unpaid,
might by law become a Lien upon the property of the Company or any of the Subsidiaries; provided, however, that the Company shall not be required to pay or discharge or cause to be paid or discharged any such tax, assessment, charge or
claim whose amount, applicability or validity is being contested in good faith by appropriate negotiations or proceedings properly instituted and diligently conducted for which adequate reserves, to the extent required under GAAP, have been taken.

  
 SECTION 4.05. Maintenance of Properties and Insurance.

  
 (a) The Company and each of its Restricted Subsidiaries shall
cause all material properties owned by or leased to it and used or useful in the conduct of its business to be maintained and kept in normal condition, repair and working order and supplied with all necessary equipment and shall cause to be made all
necessary repairs, renewals, replacements, betterments and improvements thereof, all as in the judgment of the Company or such Restricted Subsidiary, may be necessary so that the business carried on in connection therewith may be properly and
advantageously conducted at all times; provided, however, that nothing in this Section shall prevent the Company or any of its Restricted Subsidiaries from discontinuing the use, operation or maintenance of any of such properties, or
disposing of any of them, if such discontinuance or disposal is, in the judgment of the Board of Directors of the Company or of the Board of Directors of the Restricted Subsidiary concerned, or of an officer (or other agent employed by 

  

 -42- 

 
the Company or of any of its Restricted Subsidiaries) of the Company or such Restricted Subsidiary having managerial responsibility for any such property,
desirable in the conduct of the business of the Company or any of its Restricted Subsidiaries, and if such discontinuance or disposal is not adverse in any material respect to the Holders. 
  
 (b) The Company and the Restricted Subsidiaries shall cause to be provided
insurance (including appropriate self-insurance) against loss or damage of the kinds that, in the good faith judgment of the respective Boards of Directors or other governing body of the Company or such Restricted Subsidiaries, as the case may be,
are adequate and appropriate for the conduct of the business of the Company or such Restricted Subsidiaries, as the case may be, with reputable insurers or with the government of the United States of America or an agency or instrumentality thereof,
in such amounts, with such deductibles, and by such methods as shall be customary, in the good faith judgment of the respective Boards of Directors or other governing body of the Company or such Restricted Subsidiary, as the case may be, for
companies similarly situated in the industry. 
  
 SECTION 4.06.
Compliance Certificate; Notice of Default. 
  
 (a) The
Company shall deliver to the Trustee, within 90 days after the end of its fiscal quarter and fiscal year, an Officers’ Certificate of the Company (provided, however, that one of the signatories to each such Officers’
Certificate shall be the Company’s principal executive officer, principal financial officer or principal accounting officer), as to such Officers’ knowledge of the Company’s compliance with all conditions and covenants under this
Indenture (without regard to any period of grace or requirement of notice provided hereunder) and in the event any Default of the Company or any Guarantor exists, such Officers shall specify the nature of such Default. Each such Officers’
Certificate shall also notify the Trustee should the Company elect to change the manner in which it fixes its fiscal year end. 
  
 (b) So long as not contrary to the then generally accepted auditing and accounting standards, the annual financial statements delivered pursuant to
Section 4.08 shall be accompanied by a written report of the Company’s independent public accountants (who shall be a firm of established national reputation) stating (A) that their audit examination has included a review of the terms of this
Indenture and the form of the Notes as they relate to accounting matters, and (B) whether, in connection with their audit examination, any Default or Event of Default has come to their attention and if such a Default or Event of Default has come to
their attention, specifying the nature and period of existence thereof; provided, however, that, without any restriction as to the scope of the audit examination, such independent public accountants shall not be liable by reason of any
failure to obtain knowledge of any such Default or Event of Default that would not be disclosed in the course of an audit examination conducted in accordance with generally accepted auditing standards. 
  
 (c) (i) If any Default or Event of Default has occurred and is continuing or
(ii) if any Holder seeks to exercise any remedy hereunder with respect to a claimed Default under this Indenture or the Notes, the Company shall deliver to the Trustee, at its address set forth in Section 10.02 hereof, by registered or certified
mail or by facsimile transmission followed by hard copy by registered or certified mail an Officers’ Certificate specifying such event, notice or other action within 10 days of its becoming aware of such occurrence. 
  

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 SECTION 4.07. Compliance with Laws. 
  
 The Company shall comply, and shall cause each of its Restricted Subsidiaries to comply, with all applicable statutes,
rules, regulations, orders and restrictions of the United States of America, all states and municipalities thereof and of any governmental department, commission, board, regulatory authority, bureau, agency and instrumentality of the foregoing, in
respect of the conduct of their respective businesses and the ownership of their respective properties, except for such noncompliances as could not singly or in the aggregate reasonably be expected to have a material adverse effect on the financial
condition, business, prospects or results of operations of the Company and its Subsidiaries taken as a whole. 
  
 SECTION 4.08. Reports to Holders. 
  
 The Company shall furnish to the Trustee and Holders of the Notes all annual and quarterly financial information and all current reports that the Company
is required to file with the Commission under the Exchange Act (or similar reports in the event that the Company is not at the time required to file such reports with the Commission). In addition, even if the Company is entitled under the Exchange
Act not to furnish such information to the Commission or the Holders of the Notes, it shall nonetheless continue to furnish such information to the Commission (to the extent the Commission is accepting such reports) and Holders of the Notes. The
Company will also comply with the other provisions of TIA § 314(a). The Company will also make available to the Trustee, Holders of the Notes and any prospective purchaser of Notes designated by any Holder of Notes, the information set forth in
Rule 144A(d)(4) under the Securities Act for so long as any Notes are outstanding. 
  
 SECTION 4.09. Waiver of Stay, Extension or Usury Laws. 
  
 The Company covenants (to the extent that it may lawfully do so) that it shall not at any time insist upon, plead, or in any manner whatsoever claim or take the benefit or advantage of, any stay or extension law or
any usury law or other law that would prohibit or forgive the Company from paying all or any portion of the principal of or interest on the Notes as contemplated herein, wherever enacted, now or at any time hereafter in force, or which may affect
the covenants or the performance of this Indenture; and (to the extent that they may lawfully do so) the Company hereby expressly waives all benefit or advantage of any such law, and covenants that it shall not hinder, delay or impede the execution
of any power herein granted to the Trustee, but shall suffer and permit the execution of every such power as though no such law had been enacted. 
  
 SECTION 4.10. Limitation on Restricted Payments. 
  
 The Company will not, and will not cause or permit any of its Restricted Subsidiaries to, directly or indirectly: 
  
 (1) declare or pay any dividend or make any distribution
(other than dividends or distributions payable solely in Qualified Capital Stock of the Company) on or in respect of shares of the Capital Stock of the Company or any of its Restricted Subsidiaries; 
  

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 (2) purchase, redeem or otherwise acquire or retire for value any Capital Stock of the
Company or any of its Restricted Subsidiaries or any warrants, rights or options to purchase or acquire shares of any class of such Capital Stock, other than (i) the exchange of such Capital Stock or any warrants, rights or options to acquire
shares of any class of such Capital Stock for Qualified Capital Stock of the Company or warrants, rights or options to acquire Qualified Capital Stock of the Company or (ii) in the case of any purchase, redemption or other acquisition or retirement
for value of Disqualified Capital Stock or any warrants, rights or options to purchase or acquire shares of any class of such Disqualified Capital Stock, the exchange of such Disqualified Capital Stock or any warrants, rights or options to purchase
or acquire Disqualified Capital Stock for Capital Stock or warrants, rights or options to acquire Capital Stock of the Company; provided that if such Capital Stock is Disqualified Capital Stock, such Disqualified Capital Stock does not have a
liquidation preference greater than the liquidation preference of the Disqualified Capital Stock being purchased, redeemed or acquired or retired or contain provisions pursuant to which such Disqualified Capital Stock matures or is mandatorily
redeemable or is redeemable at the sole option of the holder thereof, in whole or in part, prior to the Disqualified Capital Stock being purchased, redeemed or acquired or re tired; 
  
 (3) make any principal payment on, purchase, decrease, redeem, prepay or otherwise acquire or retire or
decrease for value, prior to any scheduled final maturity, scheduled prepayment or scheduled sinking fund payment, any Subordinated Indebted ness; or 
  
 (4) make any Investment (other than Permitted Investments); 
  
 (each of the foregoing actions set forth in clauses (1), (2), (3) and (4) 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; or 
  
 (ii) the Company is not able to incur at least $1.00 of
additional Indebtedness (other than Permitted Indebtedness) in compliance with Section 4.12; or 
  
 (iii) the aggregate amount of Restricted Payments (including such proposed Restricted Payment) made subsequent to the Issue Date (the
amount expended for such purposes if other than in cash, being the Fair Market Value of such property) shall exceed the sum of: 
  
 (x) 50% of the cumulative Consolidated Net Income (or if cumulative Consolidated Net Income shall be a loss, minus 100% of such loss) of
the Company earned subsequent to April 1, 2004 and on or prior to the date the Restricted Payment occurs (the “Reference Date”) (treating for such purposes such period as a single accounting period); plus 
  

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 (y) 100% of the aggregate net cash proceeds received by the Company (including the Fair
Market Value of marketable securities) from any Person (other than a Restricted Subsidiary of the Company) from the issue and sale subsequent to the Issue Date and on or prior to the Reference Date of Qualified Capital Stock of the Company
(including pursuant to a capital contribution but excluding any Qualified Capital Stock issued pursuant to clause (2) of this paragraph and also excluding any net cash proceeds from a Public Equity Offering to the extent used to redeem the Notes in
compliance with the provisions set forth under Section 3.03(b)); plus 
  
 (z) without duplication of any amounts included in clause (iii)(y) above, an amount equal to the net reduction in Investments in Unrestricted Subsidiaries resulting from dividends, interest payments, repayments of
loans or advances, or other transfers of cash, in each case to the Company or to any Wholly Owned Restricted Subsidiary of the Company from Unrestricted Subsidiaries (but without duplication of any such amount included in calculating cumulative
Consolidated Net Income of the Company), or from redesignation of Unrestricted Subsidiaries as Restricted Subsidiaries (in each case valued as provided in the definition of “Investments”), not to exceed, in the case of any Unrestricted
Subsidiary, the amount of Investments previously made by the Company or any Restricted Subsidiary in such Unrestricted Subsidiary and which was treated as a Restricted Payment under this Indenture. 
  
 Notwithstanding the foregoing, the provisions set forth in the immediately
preceding paragraph 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 been permitted on the date of declaration; 
  

(2) if no Default or Event of Default shall have occurred and be continuing, the purchase, redemption or other acquisition or
retirement for value of any shares of Capital Stock of the Company through the application of net proceeds of a substantially concurrent sale for cash (other than to a Restricted Subsidiary of the Company) of shares of Qualified Capital Stock of the
Company; 
  
 (3) if no Default or Event of
Default shall have occurred and be continuing, the payment, purchase, defeasance, redemption, prepayment, acquisition or retirement or decrease of any Subordinated Indebtedness of the Company either 
  
 (i) solely in exchange for (A) shares of Qualified Capital
Stock of the Company or (B) Subordinated Indebtedness of the Company that has a Weighted Average Life to Maturity and final maturity not earlier than the Weighted Average Life to Maturity and final maturity of the Subordinated Indebtedness being
exchanged, or 
  
 (ii) through the application of
net proceeds of a substantially concurrent sale for cash (other than to a Restricted Subsidiary of the Company) of 

  

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(A) shares of Qualified Capital Stock of the Company or (B) Refinancing Indebtedness; 
  
 (4) if no Default or Event of Default shall have occurred and be continuing, repurchases by the Company of
Common Stock of the Company from employees of the Company or any of its Subsidiaries or their authorized representatives upon the death, disability or termination of employment of such employees, in an aggregate amount not to exceed the sum of (x)
$2.0 million in any calendar year and (y) proceeds received by the Company or any of its Subsidiaries in connection with any “key-man” life insurance policies which are used to make such repurchases; and provided, however,
that the cancellation of Indebtedness owing to the Company from members of management of the Company in connection with a repurchase of Common Stock of the Company pursuant to this clause (4) will not be deemed to constitute a Restricted Payment
under this Indenture; 
  
 (5) repurchases of
Capital Stock deemed to occur upon the exercise of stock options if such Capital Stock represents a portion of the exercise price thereof; 
  
 (6) if no Default or Event of Default shall have occurred and be continuing or would occur as a consequence thereof, other Restricted
Payments in an aggregate amount not to exceed $20.0 million; and 
  
 (7) any payments made in respect of Capital Stock of a Restricted Subsidiary paid to minority holders thereof in connection with pro rata distributions on such Capital Stock to the Company or a Wholly
Owned Restricted Subsidiary of the Company. 
  
 In determining the aggregate
amount of Restricted Payments made subsequent to the Issue Date in accordance with clause (iii) of the immediately preceding paragraph, amounts expended pursuant to clauses (1) (to the extent the declaration thereof has not previously been included
in such aggregate amount), (2), (3)(ii)(A) and (4) shall be included in such calculation. 
  
 Not later than the date of making any Restricted Payment, the Company shall deliver to the Trustee an Officers’ Certificate stating that such Restricted Payment complies with this Indenture and setting forth in
reasonable detail the basis upon which the required calculations were computed, which calculations may be based upon the Company’s latest available internal quarterly financial statements. 
  
 SECTION 4.11. Limitations on Transactions with Affiliates. 

 
 (a) The Company will not, and will not permit any of its Restricted
Subsidiaries to, directly or indirectly, enter into or permit to exist any transaction or series of related transactions (including, without limitation, the purchase, sale, lease or exchange of any property or the rendering of any service) with, or
for the benefit of, any of its Affiliates (each, an “Affiliate Transaction”), other than (x) Affiliate Transactions permitted under paragraph (b) below and (y) Affiliate Transactions on terms that are fair and reasonable to the
Company or such Restricted Subsidiary and are no less favorable than those that might reasonably have been obtained in a comparable transaction at such time on an arm’s-length basis from a Person that is not an Affiliate of the Company or such
Restricted Subsidiary. 
  

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 All Affiliate Transactions (and each series of related Affiliate Transactions which are similar or part
of a common plan) involving aggregate payments or other property in excess of $5.0 million shall be approved by the Board of Directors of the Company, such approval to be evidenced by a Board Resolution stating that such Board of Directors has
determined that such transaction complies with the foregoing provisions. If the Company or any Restricted Subsidiary of the Company enters into an Affiliate Transaction (or a series of related Affiliate Transactions related to a common plan) that
involves an aggregate payment or other property in excess of $10.0 million, the Company or such Restricted Subsidiary, as the case may be, shall, prior to the consummation thereof, obtain a favorable opinion as to the fairness of such transaction or
series of related transactions to the Company or the relevant Restricted Subsidiary, as the case may be, from a financial point of view, from an Independent Financial Advisor and shall provide such opinion to the Trustee together with an
Officers’ Certificate setting forth in reasonable detail the facts and circumstances of such transaction or series of related transactions. 
  
 (b) The restrictions set forth in clause (a) shall not apply to: 
  

(i) reasonable fees and compensation paid to and indemnity provided on behalf of, officers, directors, employees or consultants of the
Company or any Restricted Subsidiary of the Company as determined in good faith by the Company’s Board of Directors or senior management; 
  
 (ii) transactions exclusively between or among the Company and any of its Restricted Subsidiaries or exclusively between or among such
Restricted Subsidiaries, provided such transactions are not otherwise prohibited by this Indenture; 
  
 (iii) any agreement as in effect as of the Issue Date or any amendment thereto or any transaction contemplated thereby (including pursuant
to any amendment thereto) or any replacement agreement thereto so long as any such amendment or replacement agreement is not more disadvantageous to the Holders in any material respect than the original agreement as in effect on the Issue Date;

  
 (iv) Restricted Payments permitted by Section
4.10; and 
  
 (v) transactions permitted by, and
complying with, the provisions of Section 5.01. 
  
 SECTION 4.12.
Limitation on Incurrence of Additional Indebtedness. 
  
 The Company will not, and will not permit any of its Restricted Subsidiaries to, directly or indirectly, create, incur, assume, guarantee, acquire, become liable, contingently or otherwise, with respect to, or otherwise become responsible
for payment of (collectively, “incur”) any Indebtedness (other than Permitted Indebtedness); provided, however, that if no Default or Event of Default shall have occurred and be continuing at the time of or as a
consequence of the incurrence of any such Indebtedness, the Company or any of its Restricted Subsidiaries may incur Indebtedness (including, without limitation, Acquired Indebtedness), in each case if on the date of the incurrence of such
Indebtedness, after giving effect to the incurrence thereof, the Consolidated Fixed Charge Coverage Ratio of the Company would have been greater 

  

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than 2.25 to 1.0 if such Indebtedness is incurred on or prior to April 2, 2006 and greater than 2.50 to 1.0 if such Indebtedness is incurred thereafter.

  
 Notwithstanding the preceding paragraph, the Company will not,
and will not permit any Guarantor to, directly or indirectly, incur any Indebtedness that by its terms (or by the terms of any agreement governing such Indebtedness) is subordinated to any other Indebtedness of the Company or of such Guarantor, as
the case may be, unless such Indebtedness is also by its terms (or by the terms of any agreement governing such Indebtedness) made expressly subordinate in right of payment to the Notes or the applicable Guarantee, as the case may be, to the same
extent and in the same manner as such Indebtedness is subordinated to other Indebtedness of the Company or such Guarantor, as the case may be. For purposes of the foregoing, no Indebtedness will be deemed to be subordinated in right of payment to
any other Indebtedness of the Company or any Guarantor solely by virtue of such Indebtedness being unsecured or by virtue of the fact that the holders of such Indebtedness have entered into one or more intercreditor agreements giving one or more of
such holders priority over the other holders in the collateral held by them. 
  
 SECTION 4.13. Limitation on Dividend and Other Payment Restrictions Affecting Subsidiaries. 
  
 The Company will not, and will not cause or permit any of its Restricted Subsidiaries to, directly or indirectly, create or otherwise cause or permit to
exist or become effective any encumbrance or restriction on the ability of any Restricted Subsidiary to 
  
 (a) pay dividends or make any other distributions on or in respect of its Capital Stock; 
  
 (b) make loans or advances to or pay any Indebtedness or
other obligation owed to the Company or any Restricted Subsidiary of the Company; or 
  
 (c) transfer any of its property or assets to the Company or any Restricted Subsidiary of the Company, 
  
 except, in each case, for such encumbrances or restrictions existing under or by reason of:

  
 (1) applicable law; 
  
 (2) this Indenture, the Notes and any Guarantees;

  
 (3) customary non-assignment provisions of
any contract or any lease governing a leasehold interest of any Restricted Subsidiary of the Company; 
  
 (4) any instrument governing Acquired Indebtedness, which encumbrance or restriction is not applicable to any Person, or the properties or
assets of any Person, other than the Person or the properties or assets of the Person so acquired or any of its subsidiaries; 
  

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 (5) agreements existing on the Issue Date to the extent and in the manner such agreements
are in effect on the Issue Date; 
  
 (6) any
encumbrance or restriction with respect to a Restricted Subsidiary that is not a Restricted Subsidiary on the date of this Indenture, which encumbrance or restriction is in existence at the time such person becomes a Restricted Subsidiary or is
created on the date it becomes a Restricted Subsidiary; 
  
 (7) restrictions on the transfer of assets subject to any Lien permitted under this Indenture imposed by the holder of such Lien; 
  
 (8) any agreement or instrument governing the payment of dividends or other distributions on or in respect
of Capital Stock of any Person that is acquired; 
  
 (9) restrictions under the Credit Agreement; 
  
 (10) other Indebtedness permitted to be incurred subsequent to the Issue Date pursuant to the provisions of Section 4.12 hereof; provided that any such restrictions are ordinary and customary with respect to the type of Indebtedness
being incurred (under the relevant circumstances); 
  
 (11) restrictions on cash or other deposits or net worth imposed by the customers under contracts entered into in the ordinary course of business; or 
  

(12) an agreement governing Indebtedness incurred to Refinance the Indebtedness issued, assumed or incurred pursuant to an agreement
referred to in clause (2), (4), (5), (9) or (10) above; provided, however, that the provisions relating to such encumbrance or restriction contained in any such Indebtedness are no less favorable to the Company in any material respect
as determined by the Board of Directors of the Company in their reasonable and good faith judgment than the provisions relating to such encumbrance or restriction contained in agreements referred to in such clause (2), (4), (5), (9) or (10).

  
 SECTION 4.14. Change of Control. 
  
 (a) Upon the occurrence of a Change of Control, each Holder shall have the
right to require that the Company purchase all or a portion of such Holder’s Notes pursuant to the offer described below (the “Change of Control Offer”), at a purchase price (the “Change of Control Payment”)
equal to 101% of the principal amount thereof plus accrued interest, if any, to the date of purchase. 
  
 (b) Within 30 days following the date upon which a Change of Control occurred, the Company shall send, by first-class mail, a notice to each Holder at
such Holder’s last registered address, with a copy to the Trustee, which notice shall govern the terms of the Change of Control Offer. The notice to the Holders shall contain all instructions and materials necessary to enable such Holders to
tender Notes pursuant to the Change of Control Offer. Such notice shall state: 
  
 (i) that the Change of Control Offer is being made pursuant to this Section 4.14 and that all Notes tendered and not withdrawn shall be
accepted for payment; 
  

 -50- 

 (ii) the purchase price (including the amount of accrued and unpaid interest, if any) and
the purchase date (which shall be no earlier than 30 days nor later than 45 days from the date such notice is mailed, other than as may be required by law) (the “Change of Control Payment Date”); 
  
 (iii) that any Note not tendered shall continue to accrue
interest; 
  
 (iv) that, unless the Company
defaults in making payment therefor, any Note accepted for payment pursuant to the Change of Control Offer shall cease to accrue interest after the Change of Control Payment Date; 
  
 (v) that Holders electing to have Notes purchased pursuant to a Change of Control Offer shall be required to
surrender such Notes, with the form entitled “Option of Holder to Elect Purchase” on the reverse of the Note completed, to the Paying Agent at the address specified in the notice prior to the close of business on the third business day
prior to the Change of Control Payment Date; 
  
 (vi) that Holders shall be entitled to withdraw their election if the Paying Agent receives, not later than the second business day prior to the Change of Control Payment Date, a telegram, telex, facsimile transmission or letter setting
forth the name of the Holder, the principal amount of the Notes the Holder delivered for purchase and a statement that such Holder is withdrawing his election to have such Notes purchased; 
  
 (vii) that Holders whose Notes are purchased only in part
shall be issued new Notes in a principal amount equal to the unpurchased portion of the Notes surrendered; provided, however, that each Note purchased and each new Note issued shall be in an original principal amount of $1,000 or
integral multiples thereof; and 
  
 (viii) the
circumstances and relevant facts regarding such Change of Control. 
  
 On the Change of Control Payment Date, the Company shall, to the extent permitted by law, (i) accept for payment all Notes or portions thereof properly tendered pursuant to the Change of Control Offer, (ii) deposit with the Paying Agent an
amount equal to the aggregate Change of Control Payment in respect of all Notes or portions thereof so tendered and (iii) deliver, or cause to be delivered, to the Trustee for cancellation the Notes so accepted together with an Officers’
Certificate stating that such Notes or portions thereof have been tendered to and purchased by the Company. The Paying Agent shall promptly either (x) pay to the Holder against presentation and surrender (or, in the case of partial payment,
endorsement) of the Global Notes or (y) in the case of Certificated Securities, mail to each Holder of Notes the Change of Control Payment for such Notes, and the Trustee will promptly authenticate and deliver to the Holder of the Global Notes a new
Global Note or Notes or, in the case of definitive notes, mail to each Holder new Certificated Securities, as applicable, equal in principal amount to any unpurchased portion of the Notes surrendered, if any, provided that each new
Certificated Security will be in a principal amount of $1,000 or an integral multiple thereof. The Company 

  

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shall notify the Trustee and the Holders of the results of the Change of Control Offer on or as soon as practicable after the Change of Control Payment Date.

  
 The Company 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 at the Change of Control Purchase Price, at the same times and otherwise in compliance with the requirements applicable to a Change of Control Offer made by the
Company and purchases all Notes validly tendered and not withdrawn under such Change of Control Offer. 
  
 Neither the Board of Directors of the Company nor the Trustee may waive the provisions of this Section 4.14 relating to a Holder’s right to
redemption upon a Change of Control. 
  
 The Company shall comply
with the requirements of Rule 14e-1 under the Exchange Act and any other securities laws and regulations thereunder to the extent such laws and regulations are applicable in connection with the repurchase of Notes pursuant to a Change of Control
Offer. To the extent that the provisions of any securities laws or regulations conflict with the provisions of this Section 4.14, the Company shall comply with the applicable securities laws and regulations and shall not be deemed to have breached
its obligations under the provisions of this Section 4.14 by virtue thereof. 
  
 SECTION 4.15. Limitation on Asset Sales. 
  
 The Company will not, and will not permit any of its Restricted Subsidiaries to, summate an Asset Sale unless: 
  
 (1) the Company or the applicable Restricted Subsidiary, as the case may be, receives consideration at the time of such Asset Sale at
least equal to the Fair Market Value of the assets sold or otherwise disposed of; 
  
 (2) at least 75% of the consideration received by the Company or the Restricted Subsidiary, as the case may be, from such Asset Sale shall
be in the form of cash, Cash Equivalents and/or Replacement Assets (as defined below) and is received at the time of such disposition; provided that the amount of (a) any liabilities (as shown on the Company’s or such Restricted
Subsidiary’s most recent balance sheet) of the Company or any such Restricted Subsidiary (other than liabilities that are by their terms subordinated in right of payment to the Notes or any Guarantee of a Guarantor) that are assumed by the
transferee of any such assets, and (b) any notes or other obligations received by the Company or any such Restricted Subsidiary from such transferee that are immediately converted by the Company or such Restricted Subsidiary into cash (to the extent
of the cash received), shall be deemed to be cash for the purposes of this provision; and 
  
 (3) upon the consummation of an Asset Sale, the Company shall apply, or cause such Restricted Subsidiary to apply, the Net Cash Proceeds
relating to such Asset Sale within 270 days of receipt thereof either; 
  

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 (a) to (x) repay and permanently reduce the availability of credit under the Credit
Agreement or (y) repay and elect to reduce the amount of outstanding Indebtedness permitted to be incurred pursuant to clauses (11) and/or (16) of the definition of Permitted Indebtedness; 
  
 (b) to make an investment in properties and assets that
replace the properties and assets that were the subject of such Asset Sale or in properties and assets that will be used in the same or a similar line of business as the Company or the Restricted Subsidiary, as the case may be, as existing on the
date of this In denture or in businesses reasonably related thereto (“Replacement Assets”); provided that the Net Cash Proceeds from an Asset Sale relating to the Company’s tobacco business are used to make an
investment in Replacement Assets relating to the tobacco business; provided further that the Net Cash Proceeds of an Asset Sale relating to assets owned directly by the Company or a Guarantor are used to make an investment in
Replacement Assets owned directly by the Company or a Guarantor; 
  
 (c) to permanently reduce any outstanding Indebtedness of such Restricted Subsidiary to the extent such Restricted Subsidiary is not a Guarantor (and to correspondingly reduce the commitments, if any, with respect
thereto); or 
  
 (d) a combination of repayment
and investment permitted by the foregoing clauses (3)(a), (3)(b) and (3)(c). 
  
 On the 271st day after an Asset Sale or such earlier date, if any, as the Board of Directors of the Company or of such Restricted Subsidiary determines not to apply the Net Cash Proceeds relating to such Asset Sale as
set forth in clauses (3)(a), (3)(b), (3)(c) and (3)(d) of the preceding paragraph (each, a “Net Proceeds Offer Trigger Date”), such aggregate amount of Net Cash Proceeds which have not been applied on or before such Net Proceeds
Offer Trigger Date as permitted in clauses (3)(a), (3)(b), (3)(c) and (3)(d) of the preceding paragraph (each, a “Net Proceeds Offer Amount”) shall be applied by the Company or such Restricted Subsidiary to make an offer to purchase
(the “Net Proceeds Offer”) on a date (the “Net Proceeds Offer Payment Date”) not less than 30 nor more than 45 days following the applicable Net Proceeds Offer Trigger Date, from all Holders on a pro rata
basis, that amount of Notes equal to the Net Proceeds Offer Amount at a price equal to 100% of the principal amount of the Notes to be purchased, plus accrued and unpaid interest thereon, if any, to the date of purchase; provided,
however, that if at any time any non-cash consideration received by the Company or any Restricted Subsidiary of the Company, as the case may be, in connection with any Asset Sale is converted into or sold or otherwise disposed of for cash
(other than interest received with respect to any such non-cash consideration), then such conversion or dissolution shall be deemed to constitute an Asset Sale hereunder and the Net Cash Proceeds thereof shall be applied in accordance with this
Section 4.15. The Company or such Restricted Subsidiary, as the case may be, may defer the Net Proceeds Offer until there is an aggregate unutilized Net Proceeds Offer Amount equal to or in excess of $10.0 million resulting from one or more Asset
Sales (at which time, the entire unutilized Net Proceeds Offer Amount, and not just the amount in excess of $10.0 million shall be applied as required pursuant to this paragraph). 
  

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 Notwithstanding the foregoing, the restriction contained in clause (2) of the first paragraph of this
Section 4.15 shall not apply with respect to any sale, in whole or in part, of assets or Capital Stock of Standard Wool, Inc. 
  
 In connection with each Net Proceeds Offer, the Company shall send, by first class mail, a notice to each Holder, with a copy to the Trustee, notice of
such, within 25 days following the Net Proceeds Offer Trigger Date, and shall comply with the procedures set forth in this Indenture. Upon receiving notice of the Net Proceeds Offer, Holders may elect to tender their Notes in whole or in part in
integral multiples of $1,000 in exchange for cash. To the extent Holders properly tender Notes in an amount exceeding the Net Proceeds Offer Amount, Notes of tendering Holders shall be purchased on a pro rata basis (based on amounts
tendered). A Net Proceeds Offer shall remain open for a period of 20 business days or such longer period as may be required by law. 
  
 The Company and any such Restricted Subsidiaries will comply with the requirements of Rule 14e-1 under the Exchange Act and the regulations thereunder and
any other securities laws to the extent such laws and regulations are applicable in connection with the repurchase of Notes pursuant to a Net Proceeds Offer. 
  
 SECTION 4.16. Limitation on Preferred Stock of Restricted Subsidiaries. 
  
 The Company will not permit any of its Restricted Subsidiaries to issue any Preferred Stock (other than to the Company or to
a Wholly Owned Restricted Subsidiary of the Company) or permit any Person (other than the Company or a Wholly Owned Restricted Subsidiary of the Company) to own any Preferred Stock of any Restricted Subsidiary of the Company. 
  
 SECTION 4.17. Limitation on Liens. 
  
 The Company will not, and will not permit any of its Restricted Subsidiaries
to, directly or indirectly create, incur or assume any Lien (other than Permitted Liens) that secures obligations under any Indebtedness on any asset or property of the Company or such Restricted Subsidiary, or any income or profits therefrom, or
assign or convey any right to receive income therefrom, unless the Notes are equally and ratably secured with the obligations so secured until such time as such obligations are no longer secured by a Lien. 
  
 SECTION 4.18. Additional Subsidiary Guarantees. 
  
 The Company will not permit any of its Restricted Subsidiaries to guarantee
or secure through the granting of Liens the payment of any Indebtedness (other than Indebtedness secured by Permitted Liens) of the Company or any Guarantor, unless such Restricted Subsidiary is a Guarantor. Any Restricted Subsidiary (other than any
existing Guarantor) may execute and deliver a supplemental indenture (and shall deliver such legal opinions and other documents as are required by this Indenture) evidencing its Guarantee of the Notes in order to facilitate a transaction which would
otherwise be prohibited by the foregoing restriction. Thereafter, such Restricted Subsidiary shall be a Guarantor for all purposes of this Indenture. 
  

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 SECTION 4.19. Payments for Consent. 
  
 The Company will not, and will not permit any of its Restricted Subsidiaries to, directly or indirectly, pay or cause to be
paid any consideration to or for the benefit of any Holder of Notes for or as an inducement to any consent, waiver or amendment of any of the terms or provisions of this Indenture or the Notes unless such consideration is offered to be paid and is
paid to all Holders of the Notes that consent, waive or agree to amend in the time frame set forth in the solicitation documents relating to such consent, waiver or agreement. 
  
 SECTION 4.20. Conduct of Business. 
  
 The Company and its Restricted Subsidiaries will not engage in any businesses which are not the same, similar, ancillary,
complementary or reasonably related to the businesses in which the Company and its Restricted Subsidiaries are engaged on the Issue Date except to such extent as would not be material to the Company and its Restricted Subsidiaries taken as a whole.

  
 SECTION 4.21. Covenant Suspension. 
  
 During the Suspension Period, the provisions of this Indenture under
Sections 4.10, 4.11, 4.12, 4.13, 4.14, 4.15 and 4.16 will not apply. 
  
 “Suspension Period” means the period (a) beginning on the date that: 
  
 (1) the Notes have Investment Grade Ratings by both Rating Agencies; 
  
 (2) no Default has occurred and is continuing; and 
  
 (3) the Company has delivered an Officers’ Certificate
to the Trustee certifying that the conditions set forth in clauses (1) and (2) above are satisfied; 
  
 and (b) ending on the date (the “Reversion Date”) that either Rating Agency ceases to have Investment Grade Ratings on the Notes. 
  
 During a Suspension Period the Company’s Board of Directors may not designate any of the Company’s Subsidiaries as
Unrestricted Subsidiaries pursuant to the definition of Unrestricted Subsidiary.” 
  
 On the Reversion Date, all Indebtedness incurred during the Suspension Period will be classified to have been incurred pursuant to and permitted under the Consolidated Fixed Charge Coverage Ratio or one of the clauses
set forth in the definition of Permitted Indebtedness (to the extent such Indebtedness would be permitted to be incurred thereunder as of the Reversion Date and after giving effect to Indebtedness incurred prior to the Suspension Period and
outstanding on the Reversion Date). To the extent any Indebtedness would not be permitted to be incurred pursuant to the Consolidated Fixed Charge Coverage Ratio or any of the clauses set forth in the definition of Permitted Indebtedness, such
Indebtedness will be deemed to have been outstanding on the Issue Date, so that it is classified as Permitted Indebtedness under clause (4) 

  

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of the definition of Permitted Indebtedness and permitted to be Refinanced under clause (14) of the definition of Permitted Indebtedness. 
  
 For purposes of calculating the amount available to be made as Restricted
Payments under clause (iii) of the first paragraph of Section 4.10, calculations under that clause will be made with reference to the Issue Date as set forth in that clause. Accordingly, Restricted Payments made during the Suspension Period, to the
extent not otherwise permitted under clauses (1) through (7) of the second paragraph of Section 4.10, will reduce the amount available to be made as Restricted Payments under clause (iii) of the first paragraph of Section 4.10 and the items
specified in subclauses (x) through (z) of such clause (iii) that occur during the Suspension Period will increase the amount available to be made as Restricted Payments under such clause (iii). 
  
 For purposes of Section 4.15, on the Reversion Date, the Net Proceeds Offer
Amount will be reset to zero. 
  
 ARTICLE FIVE 
  
 SUCCESSOR CORPORATION 
  
 SECTION 5.01. Merger, Consolidation and Sale of Assets. 
  
 (a) The Company will not, in a single transaction or series of related
transactions, consolidate or merge with or into any Person, or sell, assign, transfer, lease, convey or otherwise dispose of (or cause or permit any Restricted Subsidiary of the Company to sell, assign, transfer, lease, convey or otherwise dispose
of) all or substantially all of the Company’s assets (determined on a consolidated basis for the Company and the Company’s Restricted Subsidiaries) whether as an entirety or substantially as an entirety to any Person, unless at the time of
and after giving effect thereto: 
  
 1. either:

  
 (a) the Company shall be the surviving or
continuing corporation; or 
  
 (b) the Person (if
other than the Company) formed by such consolidation or into which the Company is merged or the Person which acquires by sale, assignment, transfer, lease, conveyance or other disposition the properties and assets of the Company and of the
Company’s Restricted Subsidiaries substantially as an entirety (the “Surviving Entity”) (x) shall be a corporation organized and validly existing under the laws of the United States, any state thereof or the District of Columbia and
(y) shall expressly assume, by supplemental indenture (in form and substance satisfactory to the Trustee), executed and delivered to the Trustee, the due and punctual payment of the principal of, and premium, if any, and interest on all of the Notes
and the performance of every covenant of the 

  

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Notes, this Indenture, and the Registration Rights Agreement on the part of the Company or such Restricted Subsidiary to be performed or observed;

  
 2. immediately after giving effect to such
transaction and the assumption contemplated by clause (1)(b)(y) above (including giving effect to any Indebtedness and Acquired Indebtedness incurred or anticipated to be incurred in connection with or in respect of such transaction), the Company or
such Surviving Entity, as the case may be, (i) shall have a Consolidated Net Worth equal to or greater than the Consolidated Net Worth of the Company immediately prior to such transaction and (ii) shall be able to incur at least $1.00 of additional
Indebtedness (other than Permitted Indebtedness) pursuant to Section 4.12; provided, however, that this clause (2) shall not apply during the Suspension Period; 
  
 3. immediately before and immediately after giving effect to such transaction and the assumption
contemplated by clause (1)(b)(y) above (including, without limitation giving effect to any Indebtedness and Acquired Indebtedness incurred or anticipated to be incurred and any Lien granted in connection with or in respect of the transaction), no
Default or Event of Default shall have occurred or be continuing; and 
  
 4. the Company or the Surviving Entity shall have delivered to the Trustee an Officers’ Certificate and an Opinion of Counsel, each stating that such consolidation, merger, sale, assignment, transfer, lease,
conveyance or other disposition and, if a sup supplemental indenture is required in connection with such transaction, such supplemental indenture comply with the applicable provisions of this Indenture and that all conditions precedent in this
Indenture relating to such transaction have been satisfied; 
  
 provided,
however, that the foregoing restrictions shall not apply to (i) any consolidation or merger of a Restricted Subsidiary of the Company with or into (or sale, assignment, transfer, lease, conveyance or other disposition of all or substantially
all of the properties, assets or Capital Stock of a Restricted Subsidiary to) the Company or another Restricted Subsidiary of the Company which is a Guarantor or (ii) any consolidation or merger of the Company and an Affiliate of the Company that
has no material assets or liabilities and which was organized solely for the purpose of reorganizing the Company in another jurisdiction. 
  
 For purposes of the foregoing, the transfer (by lease, assignment, sale or otherwise, in a single transaction or series of transactions) of all or
substantially all of the properties or assets of one or more Restricted Subsidiaries of the Company, the Capital Stock of which constitutes all or substantially all of the properties and assets of the Company, shall be deemed to be the transfer of
all or substantially all of the properties and assets of the Company. 
  
 (b) Each Guarantor (other than any Guarantor whose Guarantee is to be released in accordance with the terms of the Guarantee and this Indenture in connection with any transaction complying with the provisions of Section 4.15) will not, and
the Company will not cause or permit any Guarantor (other than any Guarantor whose Guarantee is to be released in accordance with the terms of the Guarantee and this Indenture in connection with any transaction complying with the provisions of
Section 4.15) to, consolidate with or merge with or into any Person other than the Company or any other Guarantor unless: 
  
 (1) the entity formed by or surviving any such consolidation or merger (if other than the Company or the Guarantor) or to which such sale,
lease, conveyance or other disposition shall have been made is a corporation organized and existing under the laws of the United States, any state thereof or the District of Columbia; 
  

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 (2) such entity assumes by supplemental indenture all of the obligations of the Guarantor
on the Guarantee; 
  
 (3) immediately after
giving effect to such transaction, no Default or Event of Default shall have occurred and be continuing; and 
  
 (4) immediately after giving effect to such transaction and the use of any net proceeds therefrom on a pro forma basis, the
Company could satisfy the provisions of clause (2) of the first paragraph of this Section 5.01. 
  
 In the event of an occurrence of any of the events described in this Section 5.01, the Company will inform the Luxembourg Stock Exchange of the occurrence
of such event. If and for so long as the Notes are listed on the Luxembourg Stock Exchange and the rules of such exchange so require, the Company will publish notice of the occurrence of any of the events described in this Section 5.01 in Luxembourg
in a daily newspaper with general circulation in Luxembourg (which is expected to be the Luxembourger Wort). 
  
 SECTION 5.02. Successor Corporation Substituted. 
  
 Upon any consolidation, combination or merger or any transfer of all or substantially all of the assets of the Company or any Guarantor, as the case may
be, in accordance with Section 5.01, in which the Company or any Guarantor, as the case may be, is not the continuing corporation, the successor Person formed by such consolidation or into which the Company or any Guarantor, as the case may be, is
merged or to which such conveyance, lease or transfer is made shall succeed to, and be substituted for, and may exercise every right and power of the Company or any Guarantor, as the case may be, under this Indenture and either the Notes or the
Guarantee of such Guarantor, as the case may be, with the same effect as if such surviving entity had been named as such. 
  
 ARTICLE SIX  
  
 REMEDIES 
  
 SECTION 6.01. Events of Default. 
  
 An“Event of Default” means any of the following events: 
  
 (a) the failure to pay interest or Additional Interest, if any, on any Notes when the same becomes due and payable and the default continues for a period of 30 days; 
  

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 (b) the failure to pay the principal or premium on any Notes, when such principal or
premium becomes due and payable, at maturity, upon redemption or otherwise (including the failure to make a payment to purchase Notes tendered pursuant to a Change of Control Offer or a Net Proceeds Offer); 
  
 (c) a default in the observance or performance of Sections
4.16, 4.20 or 5.01 
  
 (d) a default in the
observance or performance of any other covenant or agreement contained in this Indenture which default continues for a period of 30 days after the Company receives written notice specifying the default (and demanding that such default be remedied)
from the Trustee or the Holders of at least 25% of the outstanding principal amount of the Notes; 
  
 (e) the failure to pay at final maturity (giving effect to any applicable grace periods and any extensions thereof) the principal amount
of any Indebtedness of the Company or any Restricted Subsidiary of the Company, or the acceleration of the final stated maturity of any such Indebtedness if the aggregate principal amount of such Indebtedness, together with the principal amount of
any other such Indebtedness in default for failure to pay principal at final maturity or which has been accelerated, aggregates $10.0 million or more at any time; 
  
 (f) one or more judgments in an aggregate amount in excess of $10.0 million (unless covered by insurance by
a reputable insurer as to which the insurer has acknowledged coverage or as to which the Company or such Restricted Subsidiary is fully indemnified and the indemnifying party has acknowledged its obligations in respect of such indemnity) shall have
been rendered against, the Company or any of its Restricted Subsidiaries and such judgments remain undischarged, unpaid or unstayed for a period of 60 days after such judgment or judgments become final and non-appealable; 
  
 (g) the Company or any of its Significant Subsidiaries
pursuant to or under or within the meaning of any Bankruptcy Law: 
  
 (i) commences a voluntary case or proceeding; 
  
 (ii) consents to the entry of an order for relief against it in an involuntary case or proceeding; 
  
 (iii) consents to the appointment of a Custodian of it or for all or substantially all of its property; 
  
 (iv) makes a general assignment for the benefit of its
creditors; or 
  
 (v) shall generally not pay its
debts when such debts become due or shall admit in writing its inability to pay its debts generally; 
  

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 (h) a court of competent jurisdiction enters an order or decree under any Bankruptcy Law
that: 
  
 (i) is for relief against the Company
or any of its Significant Subsidiaries in an involuntary case or proceeding, 
  
 (ii) appoints a Custodian of the Company or any of its Significant Subsidiaries for all or substantially all of its properties taken as a whole, or 
  
 (iii) orders the liquidation of the Company or any of its Significant Subsidiaries, 
  
 and in each case the order or decree remains unstayed and in effect for 60
days; or 
  
 (i) any of the Guarantees of a
Significant Subsidiary of the Company ceases to be in full force and effect or any of the Guarantees of a Significant Subsidiary of the Company is declared to be null and void and unenforceable or any of such Guarantees is found to be invalid, in
each case by a court of competent jurisdiction in a final non-appealable judgment, or any of the Guarantors that is a Significant Subsidiary of the company denies its liability under its Guarantee (other than by reason of release of a Guarantor in
accordance with the terms of this Indenture). 
  
 SECTION 6.02.
Acceleration. 
  
 If an Event of Default (other than an
Event of Default specified in Section 6.01(g) or (h) with respect to the Company) shall occur and be continuing, the Trustee or the Holders of at least 25% in principal amount of outstanding Notes may declare the principal of and accrued interest,
premium, if any, interest and any other monetary obligations on all the Notes to be due and payable by notice in writing to the Company and the Trustee specifying the respective Event of Default and that it is a “notice of acceleration”
(the “Acceleration Notice”) and the same shall become immediately due and payable; provided that if prior to the delivery of any such Acceleration Notice with respect to an Event of Default specified in Section 6.01(e), any
such payment default or acceleration relating to such other Indebtedness shall have been cured or rescinded, as the case may be, or such Indebtedness has been discharged in a manner consistent with the terms of this Indenture within 30 days of such
default or acceleration, as the case may be, then such Event of Default specified in Section 6.01(e) shall be deemed cured for all purposes of this Indenture. If an Event of Default with respect to the Company specified in Section 6.01(g) or (h)
occurs and is continuing, then all unpaid principal of, and premium, if any, and accrued and unpaid interest on all of the outstanding Notes shall ipso facto become and be immediately due and payable without any declaration or other
act on the part of the Trustee or any Holder. 
  
 At any time
after a declaration of acceleration with respect to the Notes as described in the preceding paragraph, the Holders of a majority in principal amount of the Notes may rescind and cancel such declaration and its consequences (a) if the rescission
would not conflict with any judgment or decree, (b) if all existing Events of Default have been cured or waived except nonpayment of principal or interest that has become due solely because of the acceleration, (c) to the extent the payment of such
interest is lawful, interest on overdue installments of 

  

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interest and overdue principal, which has become due otherwise than by such declaration of acceleration, has been paid, (d) if the Company has paid the
Trustee its reasonable compensation and reimbursed the Trustee for its expenses, disbursements and advances and (e) in the event of the cure or waiver of an Event of Default of the type described in Section 6.01 (g) or (h), the Trustee shall have
received an Officers’ Certificate and an Opinion of Counsel that such Event of Default has been cured or waived. No such rescission shall affect any subsequent Default or impair any right consequent thereto. 
  
 SECTION 6.03. Other Remedies. 
  
 (a) If an Event of Default occurs and is continuing, the Trustee may pursue
any available remedy by proceeding at law or in equity to collect the payment of the principal of, premium, if any, or interest on the Notes or to enforce the performance of any provision of the Notes or this Indenture. 
  
 (b) All rights of action and claims under this Indenture or the Notes may be
enforced by the Trustee even if it does not possess any of the Notes 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. No remedy is exclusive of any other remedy. All available remedies are cumulative to the extent permitted by law. 
  
 SECTION 6.04. Waiver of Past Defaults. 
  
 Prior to the acceleration of the Notes, the Holders of a majority in
aggregate principal amount of the Notes then outstanding by notice to the Trustee may, on behalf of the Holders of all the Notes, waive any existing Default or Event of Default and its consequences under this Indenture, except a Default or Event of
Default specified in Section 6.01 (a) or (b) or in respect of any provision hereof which cannot be modified or amended without the consent of the Holder so affected pursuant to Section 9.02. When a Default or Event of Default is so waived, it shall
be deemed cured and shall cease to exist. This Section 6.04 shall be in lieu of § 316(a)(1)(B) of the TIA and such § 316(a)(1)(B) of the TIA is hereby expressly excluded from this Indenture and the Notes, as permitted by the TIA.

  
 SECTION 6.05. Control by Majority. 
  
 Holders of the Notes may not enforce this Indenture or the Notes except as
provided in this Article Six and under the TIA. The Holders of a majority in aggregate principal amount of the then outstanding Notes have the right to direct the time, method and place of conducting any proceeding for any remedy available to the
Trustee or exercising any trust or power conferred on the Trustee, provided, however, that the Trustee may refuse to follow any direction (a) that conflicts with any rule of law or this Indenture, (b) that the Trustee determines may be
unduly prejudicial to the rights of another Holder, or (c) that may expose the Trustee to personal liability for which adequate indemnity provided to the Trustee against such liability is not reasonably assured to it; provided,
further, however, that the Trustee may take any other action deemed proper by the Trustee that is not inconsistent with such direction or this Indenture. This 

  

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Section 6.05 shall be in lieu of § 316(a)(1)(A) of the TIA, and such § 316(a)(1)(A) of the TIA is hereby expressly excluded from this Indenture and
the Notes, as permitted by the TIA. 
  
 SECTION 6.06.
Limitation on Suits. 
  
 No Holder of any Notes shall have
any right to institute any proceeding with respect to this Indenture or the Notes or any remedy hereunder, unless the Holders of at least 25% in aggregate principal amount of the outstanding Notes have made written request, and offered reasonable
indemnity, to the Trustee to institute such proceeding as Trustee under the Notes and this Indenture, the Trustee has failed to institute such proceeding within 30 days after receipt of such notice, request and offer of indemnity and the Trustee,
within such 30-day period, has not received directions inconsistent with such written request by Holders of a majority in aggregate principal amount of the outstanding Notes. 
  
 The foregoing limitations shall not apply to a suit instituted by a Holder of a Note for the enforcement of the payment of
the principal of, premium, if any, or interest on, such Note on or after the respective due dates expressed or provided for in such Note. 
  
 A Holder may not use this Indenture to prejudice the rights of any other Holders or to obtain priority or preference over such other Holders. 

 
 SECTION 6.07. Right of Holders To Receive Payment. 
  
 Notwithstanding any other provision in this Indenture, the right of any
Holder of a Note to receive payment of the principal of, premium, if any, and interest on such Note, on or after the respective due dates expressed or provided for in such Note, or to bring suit for the enforcement of any such payment on or after
the respective due dates, is absolute and unconditional and shall not be impaired or affected without the consent of the Holder. 
  
 SECTION 6.08. Collection Suit by Trustee. 
  
 If an Event of Default specified in clause (a) or (b) of Section 6.01 occurs and is continuing, the Trustee may recover judgement in its own name and as
trustee of an express trust against the Company, or any other obligor on the Notes for the whole amount of the principal of, premium, if any, and accrued interest remaining unpaid, together with interest on overdue principal and, to the extent that
payment of such interest is lawful, interest on overdue installments of interest, in each case at the rate per annum provided for by the Notes and such further amount as shall be sufficient to cover the costs and expenses of collection, including
the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and counsel. 
  
 SECTION 6.09. 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
(including any claim for the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents, counsel, accountants and experts) and the Holders allowed in any judicial proceedings relative to the Company or any Guarantor (or
any other obligor upon the Notes), their creditors or their property 

  

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and shall be entitled and empowered to collect and receive any monies or other property payable or deliverable on any such claims and to distribute the same,
and any Custodian in any such judicial proceedings is hereby authorized by each Holder to make such payments to the Trustee and, in the event that the Trustee shall consent to the making of such payments directly to the Holders, to pay to the
Trustee any amount due to it for the reasonable compensation, expenses, disbursements and advances of the Trustee, its agent and counsel, and any other amounts due the Trustee under Section 7.07. Nothing herein contained shall be deemed to authorize
the Trustee to authorize or consent to or accept or adopt on behalf of any Holder any plan of reorganization, arrangement, adjustment or composition affecting the Notes or the rights of any Holder thereof, or to authorize the Trustee to vote in
respect of the claim of any Holder in any such proceeding. 
  
 SECTION 6.10. Priorities. 
  
 If the Trustee
collects any money pursuant to this Article Six it shall pay out such money in the following order: 
  
 First: to the Trustee for amounts due under Section 7.07; 
  
 Second: to Holders for interest accrued on the Notes, ratably, without preference or priority of any kind,
according to the amounts due and payable on the Notes for interest; 
  
 Third: to Holders for the principal amounts (including any premium) owing under the Notes, ratably, without preference or priority of any kind, according to the amounts due and payable on the Notes for the principal
(including any premium); and 
  
 Fourth: the
balance, if any, to the Company. 
  
 The Trustee, upon prior
written notice to the Company, may fix a record date and payment date for any payment to Holders pursuant to this Section 6.10. 
  
 SECTION 6.11. 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 may in its discretion 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,
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 6.11 does not apply to any suit by the Trustee, any suit by a Holder pursuant to Section 6.07,
or a suit by a Holder or Holders of more than 10% in aggregate principal amount of the outstanding Notes. 
  
 SECTION 6.12. Restoration of Rights and Remedies. 
  
 If the Trustee or any Holder has instituted any proceeding to enforce any right or remedy under this Indenture or any Note and such proceeding has been
discontinued or abandoned 

  

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for any reason, or has been determined adversely to the Trustee or to such Holder, then and in every such case the Company, the Trustee and the Holders
shall, subject to any determination in such proceeding, be restored severally and respectively to their former positions hereunder, and thereafter all rights and remedies of the Trustee and the Holders shall continue as though no such proceeding had
been instituted. 
  
 ARTICLE SEVEN  
  
 TRUSTEE 
  
 SECTION 7.01. 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 its exercise thereof as a prudent person would exercise or use under the circumstances in the conduct of his own affairs. 
  
 (b) Except during the continuance of an Event of Default: 
  
 (1) The Trustee need perform only those duties as are
specifically set forth in this Indenture and no covenants or obligations shall be implied in this Indenture that are adverse to the Trustee. 
  
 (2) 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, in the case of any such certificates or opinions that by any provision hereof are specifically
required to be furnished to the Trustee, the Trustee shall examine the certificates and opinions to determine whether or not they conform to the requirements of this Indenture. 
  
 (c) Notwithstanding anything to the contrary herein contained, 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: 
  
 (1) This paragraph does not limit the effect of paragraph (b) of this Section 7.01. 
  
 (2) The Trustee shall not be liable for any error of
judgment made in good faith by a Trust Officer, unless it is proved that the Trustee was negligent in ascertaining the pertinent facts. 
  
 (3) 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 6.02, 6.04 or 6.05. 
  

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 (4) 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 paragraphs (a), (b), and (c) of this Section 7.01 and Section 7.02. 
  
 (e) The Trustee shall not be liable for interest on any money or assets received by it except as the Trustee may agree in
writing with the Company. Money or assets held in trust by the Trustee need not be segregated from other money or assets except to the extent required by law. 
  

SECTION 7.02. Rights of Trustee. 
  
 Subject to Section 7.01: 
  
 (a) The Trustee may rely and shall be fully protected in acting or refraining from acting upon any document believed by it to be genuine
and to have been signed or presented by the proper Person. The Trustee need not investigate any fact or matter stated in the document. 
  
 (b) Any request or direction of the Company mentioned herein shall be sufficiently evidenced by an Officers’ Certificate and a Board
Resolution. 
  
 (c) Whenever in the
administration of this Indenture the Trustee shall deem it desirable that a matter be proved or established prior to taking, suffering or omitting any action hereunder, the Trustee (unless other evidence be specifically prescribed) may, in the
absence of bad faith on its part, rely upon an Officers’ Certificate. 
  
 (d) Before the Trustee acts or refrains from acting, it may consult with counsel of its selection and may require an Officers’ Certificate or an Opinion of Counsel, which shall conform to Sections 10.04 and
10.05. The Trustee shall not be liable for any action it takes or omits to take in good faith in reliance on such Officers’ Certificate, Opinion of Counsel or written advice of such counsel. 
  
 (e) The Trustee may act through its attorneys and agents and
shall not be responsible for the misconduct or negligence of any agent appointed with due care. 
  
 (f) The Trustee shall not be bound to make any investigation into the facts or matters stated in any 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, upon reasonable notice to the Company,
to examine the books, records, and premises of the Company, personally or by agent or attorney and to consult with the officers and representatives of the Company, including the Company’s accountants and attorneys. 
  

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 (g) The Trustee shall be under no obligation to exercise any of its rights or powers
vested in it by this Indenture at the request, order or direction of any of the Holders pursuant to the provisions of this Indenture, unless such Holders have offered to the Trustee indemnity reasonably satisfactory to the Trustee against the costs,
expenses and liabilities which may be incurred by it in compliance with such request, order or direction. 
  
 (h) The Trustee shall not be required to give any bond or surety in respect of the performance of its powers and duties hereunder.

  
 (i) Delivery of reports, information and
documents to the Trustee under Section 4.08 is for informational purposes only and the Trustee’s receipt of the foregoing shall not constitute constructive notice of any information contained therein or determin-able from information contained
therein, including the Company’s compliance with any of their covenants hereunder (as to which the Trustee is entitled to rely exclusively on Officers’ Certificates). 
  
 SECTION 7.03. Individual Rights of Trustee. 
  
 The Trustee in its individual or any other capacity may become the owner or pledgee of Notes and may otherwise deal with the
Company or any of the Subsidiaries, or their respective Affiliates with the same rights it would have if it were not Trustee. Any Agent may do the same with like rights. However, the Trustee must comply with Sections 7.10 and 7.11. 
  
 SECTION 7.04. Trustee’s Disclaimer. 
  
 The Trustee makes no representation as to the validity or adequacy of this
Indenture or the Notes, and it shall not be accountable for the Company’s use of the proceeds from the Notes, and it shall not be responsible for any statement of the Company in this Indenture or the Notes other than the Trustee’s
certificate of authentication. 
  
 SECTION 7.05. Notice of
Default. 
  
 If a Default or an Event of Default occurs and
is continuing and if it is known to a Trust Officer, the Trustee shall mail to each Holder notice of the uncured Default or Event of Default within 90 days after obtaining knowledge thereof. Except in the case of a Default or an Event of Default in
payment of principal of, or interest on, any Note, including an accelerated payment, a Default in payment on the Change of Control Payment Date pursuant to a Change of Control Offer or on the Net Proceeds Offer Payment Date pursuant to a Net
Proceeds Offer and a Default in compliance with Article Five hereof, the Trustee may withhold the notice if and so long as its Board of Directors, the executive committee of its Board of Directors or a committee of its directors and/or Trust
Officers in good faith determines that withholding the notice is in the interest of the Holders. The foregoing sentence of this Section 7.05 shall be in lieu of the proviso to § 315(b) of the TIA and such proviso to § 315(b) of the TIA is
hereby expressly excluded from this Indenture and the Notes, as permitted by the TIA. 
  

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 SECTION 7.06. Reports by Trustee to Holders. 
  
 Within 60 days after November 1 of each year beginning with 2004, the
Trustee shall, to the extent that any of the events described in TIA § 313(a) occurred within the previous twelve months, but not otherwise, mail to each Holder a brief report dated as of such date that complies with TIA § 313(a). The
Trustee also shall comply with TIA §§ 313(b), (c) and (d). 
  
 A copy of each report at the time of its mailing to Holders shall be mailed to the Company and filed with the Commission and each stock exchange or market, if any, on which the Notes are listed. 
  
 The Company shall promptly notify the Trustee if the Notes become listed on
any stock exchange or market and the Trustee shall comply with TIA § 313(d). 
  
 SECTION 7.07. Compensation and Indemnity. 
  
 The Company shall pay to the Trustee from time to time such compensation for its services as has been agreed to in writing signed by the Company and the Trustee. The Trustee’s compensation shall not be limited by
any law on compensation of a trustee of an express trust. The Company shall reimburse the Trustee upon request for all reasonable out-of-pocket expenses incurred or made by it in connection with the performance of its duties under this Indenture.
Such expenses shall include the reasonable fees and expenses of the Trustee’s agents, counsel, accountants and experts. 
  
 The Company shall indemnify each of the Trustee (or any predecessor Trustee) and its agents, employees, stockholders, Affiliates and directors and
officers for, and hold them each harmless against, any and all loss, liability, damage, claim or expense (including reasonable fees and expenses of counsel), including taxes (other than taxes based on the income of the Trustee) incurred by them
except for such actions to the extent caused by any negligence, bad faith or willful misconduct on their part, arising out of or in connection with the acceptance or administration of this trust including the reasonable costs and expenses of
defending themselves against any claim or liability in connection with the exercise or performance of any of their rights, powers or duties hereunder. The Trustee shall notify the Company promptly of any claim asserted against the Trustee for which
it may seek indemnity. At the Trustee’s sole discretion, the Company shall defend the claim and the Trustee shall cooperate and may participate in the defense; provided, however, that any settlement of a claim shall be approved in
writing by the Trustee if such settlement would result in an admission of liability by the Trustee or if such settlement would not be accompanied by a full release of the Trustee for all liability arising out of the events giving rise to such claim.
Alternatively, the Trustee may at its option have separate counsel of its own choosing and the Company shall pay the reasonable fees and expenses of such counsel. 
  
 To secure the Company’s payment obligations in this Section 7.07, the Trustee shall have a lien prior to the Notes on
all assets or money held or collected by the Trustee, in its capacity as Trustee, except assets or money held in trust to pay principal of or premium, if any, or interest on particular Notes. 
  

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 When the Trustee incurs expenses or renders services after an Event of Default specified in Section 6.01
(g) or (h) occurs, such expenses and the compensation for such services are intended to constitute expenses of administration under any Bankruptcy Law. 
  
 The provisions of this Section 7.07 shall survive the termination of this Indenture. 
  
 SECTION 7.08. Replacement of Trustee. 
  
 The Trustee may resign at any time by so notifying the Company. The Holders of a majority in principal amount of the
outstanding Notes may remove the Trustee and appoint a successor Trustee with the Company’s consent, by so notifying the Company and the Trustee. The Company may remove the Trustee if: 
  
 (1) the Trustee fails to comply with Section 7.10;

  
 (2) the Trustee is adjudged bankrupt or
insolvent; 
  
 (3) a receiver or other public
officer takes charge of the Trustee or its property; or 
  
 (4) the Trustee becomes incapable of acting. 
  
 If the Trustee resigns or is removed or if a vacancy exists in the office of Trustee for any reason, the Company shall notify each Holder of such event and shall promptly appoint a successor Trustee. Within one year
after the successor Trustee takes office, the Holders of a majority in aggregate principal amount of the outstanding Notes may appoint a successor Trustee to replace the successor Trustee appointed by the Company. 
  
 A successor Trustee shall deliver a written acceptance of its appointment to
the tiring Trustee and to the Company. Immediately after that, the retiring Trustee shall transfer all property held by it as Trustee to the successor Trustee, subject to the lien provided in Section 7.07, the resignation or removal of the retiring
Trustee shall become effective, and the successor Trustee shall have all the rights, powers and duties of the Trustee under this Indenture. The Company shall mail notice of such successor Trustee’s appointment to each Holder. 
  
 If a successor Trustee does not take office within 60 days after the retiring
Trustee resigns or is removed, the retiring Trustee, the Company or the Holders of at least 10% in aggregate principal amount of the outstanding Notes may petition any court of competent jurisdiction for the appointment of a successor Trustee.

  
 If the Trustee fails to comply with Section 7.10, any Holder
may petition any court of competent jurisdiction for the removal of the Trustee and the appointment of a successor Trustee. 
  
 Notwithstanding any resignation or replacement of the Trustee pursuant to this Section 7.08, the Company’s obligations under Section 7.07 shall
continue for the benefit of the retiring Trustee. 
  

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 SECTION 7.09. Successor Trustee by Merger, Etc. 
  
 If the Trustee consolidates with, merges or converts into, or transfers all
or substantially all of its corporate trust business to, another corporation, the resulting, surviving or transferee corporation without any further act shall, if such resulting, surviving or transferee corporation is otherwise eligible hereunder,
be the successor Trustee; provided, however, that such corporation shall be otherwise qualified and eligible under this Article Seven. 
  
 SECTION 7.10. Eligibility; Disqualification. 
  
 This Indenture shall always have a Trustee who satisfies the requirement of TIA §§ 310(a)(1), (2) and (5). The Trustee (or, in the case of a
Trustee that is a subsidiary of another bank or a corporation included in a bank holding company system, the related bank or bank holding company) shall have a combined capital and surplus of at least $100,000,000 as set forth in its most recent
published annual report of condition, and have an office in the City of New York. In addition, if the Trustee is a subsidiary of another bank or a corporation included in a bank holding company system, the Trustee, independently of such bank or bank
holding company, shall meet the capital requirements of TIA § 310(a)(2). The Trustee shall comply with TIA § 310(b); provided, however, that there shall be excluded from the operation of TIA § 310(b)(1) any indenture or
indentures under which other securities, or certificates of interest or participation in other securities, of the Company or a Guarantor are outstanding, if the requirements for such exclusion set forth in TIA § 310(b)(1) are met. The
provisions of TIA § 310 shall apply to the Company and the Guarantors, as obligors of the Notes. 
  
 SECTION 7.11. Preferential Collection of Claims Against the Company. 
  
 The Trustee shall comply with TIA § 311(a), excluding any creditor relationship listed in TIA § 311(b). A Trustee
who has resigned or been removed shall be subject to TIA § 311(a) to the extent indicated therein. 
  
 ARTICLE EIGHT 
  
 DISCHARGE OF INDENTURE; DEFEASANCE 
  
 SECTION
8.01. Termination of the Company’s Obligations. 
  
 This Indenture will be discharged and will cease to be of further effect (except as to surviving rights or registration of transfer or exchange of the Notes, as expressly provided for in this Indenture) as to all outstanding Notes when (a)
either (i) all Notes theretofore authenticated and delivered (except lost, stolen or destroyed Notes which have been replaced or paid and Notes for whose payment money has theretofore been deposited in trust or segregated and held in trust by the
Company and thereafter repaid to the Company or discharged from such trust) have been delivered to the Trustee for cancellation; or (ii) all Notes not theretofore delivered to the Trustee for cancellation (x) have become due and payable or (y) will
become due and payable 

  

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within one year, or are to be called for redemption within one year, under arrangements reasonably satisfactory to the Trustee for the giving of notice of
redemption by the Trustee in the name, and at the expense, of the Company and the Company has irrevocably deposited or caused to be deposited with the Trustee funds in an amount sufficient to pay and discharge the entire Indebtedness on the Notes
not theretofore delivered to the Trustee for cancellation, for principal of, premium, if any, and interest on the Notes to the date of maturity or redemption, as the case may be, together with irrevocable instructions from the Company directing the
Trustee to apply such funds to the payment thereof at maturity or redemption, as the case may be; (b) the Company has paid all other sums payable under this Indenture by the Company; and (c) the Company has delivered to the Trustee an Officers’
Certificate and an Opinion of Counsel stating that all conditions precedent under this Indenture relating to the satisfaction and discharge of this Indenture have been complied with; provided, however, that such counsel may rely, as to
matters of fact, on one or more Officers’ Certificates of the Company. 
  
 The Company may, at its option and at any time, elect to have its obligations and the corresponding obligations of the Guarantors discharged with respect to the outstanding Notes (“Legal Defeasance”).
Such Legal Defeasance means that the Company shall be deemed to have paid and discharged the entire indebtedness represented by the outstanding Notes, and satisfied all of its obligations with respect to the Notes, except for (a) the rights of
Holders to receive payments in respect of the principal of, premium, if any, and interest on the Notes when such payments are due, (b) the Company’s obligations with respect to the Notes concerning issuing temporary Notes, registration of
Notes, mutilated, destroyed, lost or stolen Notes and the maintenance of an office or agency for payments, (c) the rights, powers, trust, duties and immunities of the Trustee and the Company’s obligations in connection therewith and (d) the
Legal Defeasance provisions of this Section 8.01. In addition, the Company may, at its option and at any time, elect to have the obligations of the Company released with respect to Sections 4.04, 4.08 and 4.10 through 4.18 and 4.21 and Article Five
(“Covenant Defeasance”) and thereafter any omission to comply with such obligations shall not constitute a Default or Event of Default with respect to the Notes. In the event of Covenant Defeasance, those events described under
Section 6.01 (except those events described in Sections 6.01 (a), (b), (f) and (g)) will no longer constitute an Event of Default with respect to the Notes. 
  
 In order to exercise either Legal Defeasance or Covenant Defeasance: 
  
 (a) the Company must irrevocably deposit with the Trustee, in trust, for the benefit of the Holders cash in
United States dollars, non-callable U.S. Government Obligations, or a combination thereof, in such amounts as will be sufficient, in the opinion of a nationally recognized firm of independent public accountants, to pay the principal of, premium, if
any, and interest on the Notes on the stated date for payment thereof or on the applicable Redemption Date, as the case may be; 
  
 (b) in the case of Legal Defeasance, the Company shall have delivered to the Trustee an Opinion of Counsel in the United States reasonably
acceptable to the Trustee confirming that (i) the Company has received from, or there has been published by, the Internal Revenue Service a ruling or (ii) since the date of this Indenture, there has been a change in the applicable federal income tax
law, in either case to the effect that, and 

  

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based thereon such Opinion of Counsel shall confirm that, the Holders will not recognize income, gain or loss for federal income tax purposes as a result of
such Legal Defeasance and the Holders will be subject to U.S. federal income tax on the same amounts, in the same manner and at the same times as would have been the case if such Legal Defeasance had not occurred; 
  
 (c) in the case of Covenant Defeasance, the Company shall
have delivered to the Trustee an Opinion of Counsel in the United States reasonably acceptable to the Trustee confirming that the Holders will not recognize income, gain or loss for federal income tax purposes as a result of such Covenant Defeasance
and will be subject to federal income tax on the same amounts, in the same manner and at the same times as would have been the case if such Covenant Defeasance had not occurred; 
  
 (d) no Default or Event of Default shall have occurred and be continuing on the date of such deposit (other
than any Default or Event of Default with respect to this Indenture resulting from the incurrence of Indebtedness, all or a portion of which will be used to defease the Notes concurrently with such incurrence) or insofar as Events of Default
specified in Sections 6.01 (g) or (h) are concerned, at any time in the period ending on the 91st day after the date of deposit; 
  
 (e) such Legal Defeasance or Covenant Defeasance shall not result in a breach or violation of, or constitute a default under this
Indenture or any other material agreement or instrument to which the Company or any of its Subsidiaries is a party or by which the Company or any of its Subsidiaries is bound; 
  
 (f) the Company shall have delivered to the Trustee an Officers’ Certificate stating that the deposit
was not made by the Company with the intent of preferring the Holders over any other creditors of the Company or any of the Guarantors or with the intent of defeating, hindering, delaying or defrauding any other creditors of the Company or any of
the Guarantors or others; 
  
 (g) the Company
shall have delivered to the Trustee an Officers’ Certificate and an Opinion of Counsel, each stating that all conditions precedent provided for or relating to the Legal Defeasance or the Covenant Defeasance, as the case may be, have been
complied with; provided, however, that such counsel may rely, as to matters of fact, on one or more Officers’ Certificates of the Company; and 
  
 (h) the Company shall have delivered to the Trustee an Opinion of Counsel in the United States (subject to
customary exceptions) to the effect that (i) the trust funds will not be subject to any rights of holders of Indebtedness, including, without limitation, those arising under this Indenture and (ii) after the 91st day following the deposit, the trust
funds will not be subject to the effect of any applicable bankruptcy, insolvency, reorganization or similar laws affecting creditors’ rights generally under any applicable U.S. federal or state law, and that the Trustee has a perfected security
interest in such trust funds for the ratable benefit of the Holders. 
  

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 Notwithstanding the foregoing, the Opinion of Counsel required by clause (b) above with respect to a
Legal Defeasance need not be delivered if all Notes not theretofore delivered to the Trustee for cancellation (1) have become due and payable or (2) will become due and payable on the maturity date within one year under arrangements reasonably
satisfactory to the Trustee for the giving of notice of redemption by the Trustee in the name, and at the expense, of the Company. 
  
 SECTION 8.02. Application of Trust Money. 
  
 The Trustee or Paying Agent shall hold in trust U.S. Legal Tender or U.S. Government Obligations deposited with it pursuant to Section 8.01, and shall
apply the deposited U.S. Legal Tender and the money from U.S. Government Obligations in accordance with this Indenture to the payment of the principal of and interest on the Notes. The Trustee shall be under no obligation to invest said U.S. Legal
Tender or U.S. Government Obligations. 
  
 The Company shall pay
and indemnify the Trustee against any tax, fee or other charge imposed on or assessed against the Legal Tender or U.S. Government Obligations deposited pursuant to Section 8.01 or the principal and interest received in respect thereof other than any
such tax, fee or other charge which by law is for the account of the Holders of outstanding Notes. 
  
 SECTION 8.03. Repayment to the Company. 
  
 Subject to Section 8.01, the Trustee and the Paying Agent shall promptly pay to the Company upon request any excess U.S. Legal Tender or U.S. Government
Obligations held by them at any time, provided, however, that the Company shall have delivered to the Trustee a written certification expressing the opinion of a nationally recognized firm of independent public accountants that such
U.S. Legal Tender or U.S. Government Obligations are in excess of the amount thereof which would be required to be deposited to effect a Legal Defeasance or Covenant Defeasance, as applicable, in accordance with this Article. The Trustee and Paying
Agent shall thereupon be relieved from all liability with respect to such money. The Trustee and the Paying Agent shall pay to the Company upon request any money held by them for the payment of principal or interest that remains unclaimed for one
year; provided, however, that the Trustee or such Paying Agent, before being required to make any payment, may at the expense of the Company cause to be published once in a newspaper of general circulation in the City of New York or
mail to each Holder entitled to such money notice that such money remains unclaimed and that after a date specified therein which shall be at least 30 days from the date of such publication or mailing any unclaimed balance of such money then
remaining will be repaid to the Company. After payment to the Company, Holders entitled to such money must look to the Company for payment as general creditors unless an applicable law designates another Person. 
  
 SECTION 8.04. Reinstatement. 
  
 If the Trustee or Paying Agent is unable to apply any U.S. Legal Tender or
U.S. Government Obligations in accordance with Section 8.01 by reason of any legal proceeding or by reason of any order or judgment of any court or governmental authority enjoining, restraining or otherwise prohibiting such application, the
Company’s obligations under this Indenture and 

  

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the Notes shall be revived and reinstated as though no deposit had occurred pursuant to Section 8.01 until such time as the Trustee or Paying Agent is
permitted to apply all such U.S. Legal Tender or U.S. Government Obligations in accordance with Section 8.01; provided, however, that if the Company has made any payment of interest on or principal of any Notes because of the
reinstatement of its obligations, the Company shall be subrogated to the rights of the Holders of such Notes to receive such payment from the U.S. Legal Tender or U.S. Government Obligations held by the Trustee or Paying Agent. 
  
 SECTION 8.05. Acknowledgment of Discharge by Trustee. 
  
 After (i) the conditions of Section 8.01 have been satisfied, (ii) the
Company has paid or caused to be paid all other sums payable hereunder by the Company and (iii) the Company has delivered to the Trustee an Officers’ Certificate and an Opinion of Counsel, each stating that all conditions precedent referred to
in clause (i) above relating to the satisfaction and discharge of this Indenture have been complied with, the Trustee upon request shall acknowledge in writing the discharge of the Company’s obligations under this Indenture except for those
surviving obligations specified in Section 8.01, provided the legal counsel delivering such Opinion of Counsel may rely as to matters of fact on one or more Officers’ Certificates of the Company. 
  
 ARTICLE NINE 
  
 MODIFICATION OF THE INDENTURE 
  

SECTION 9.01. Without Consent of Holders. 
  
 Subject to the provisions of Section 9.02, the Company, the Guarantors and the Trustee may amend, waive or supplement this Indenture without notice to or
consent of any Holder: (a) to cure any ambiguity, defect or inconsistency; (b) to comply with Section 5.01 of this Indenture; (c) to provide for uncertificated Notes in addition to certificated Notes; (d) to comply with any requirements of the
Commission in order to effect or maintain the qualification of this Indenture under the TIA; or (e) to make any change that would provide any additional benefit or rights to the Holders or that does not adversely affect the rights of any Holder in
any material respect. Notwithstanding the foregoing, the Trustee and the Company may not make any change pursuant to this Section 9.01 that adversely affects the rights of any Holder under this Indenture without the consent of such Holder. In
formulating its opinion on such matters, the Trustee will be entitled to rely on such evidence as it deems appropriate, including, without limitation, solely on an Opinion of Counsel; provided, however, that in delivering such Opinion
of Counsel, such counsel may rely as to matters of fact, on one or more Officers’ Certificates of the Company. 
  
 SECTION 9.02. With Consent of Holders. 
  
 All other modifications and amendments of this Indenture may be made with the consent of the Holders of a majority in principal amount of the then
outstanding Notes, except that, without the consent of each Holder of the Notes affected thereby, no amendment may, directly 

  

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or indirectly: (i) reduce the amount of Notes whose Holders must consent to an amendment; (ii) reduce the rate of or change or have the effect of changing
the time for payment of premium, if any, and interest, including defaulted interest, on any Notes; (iii) reduce the principal of or change or have the effect of changing the fixed maturity of any Notes, or change the date on which any Notes may be
subject to redemption or reduce the redemption price therefor; (iv) make any Notes payable in money other than that stated in the Notes; (v) make any change in provisions of this Indenture protecting the right of each Holder to receive payment of
premium, if any, principal of and interest on such Note on or after the due date thereof or to bring suit to enforce such payment, or permitting Holders of a majority in principal amount of Notes to waive Defaults or Events of Default; (vi) after
the Company’s obligation to purchase Notes arises thereunder, amend, change or modify in any material respect the obligation of the Company to make and consummate a Change of Control Offer in the event of a Change of Control or make and
consummate a Net Proceeds Offer with respect to any Asset Sale that has been consummated or modify any of the provisions or definitions with respect thereto after a Change of Control has occurred or the subject Asset Sale has been consummated; (vii)
modify or change any provision of this Indenture or the related definitions affecting the ranking of the Notes or any Guarantee in a manner which adversely affects the Holders; or (viii) release any Guarantor that is a Significant Subsidiary of the
Company from any of its obligations under its Guarantee or this Indenture otherwise than in accordance with the terms of this Indenture. 
  
 SECTION 9.03. Compliance with TIA. 
  
 Every amendment, waiver or supplement of this Indenture or the Notes shall comply with the TIA as then in effect; provided, however, that
this Section 9.03 shall not of itself require that this Indenture or the Trustee be qualified under the TIA or constitute any admission or acknowledgment by any party hereto that any such qualification is required prior to the time this Indenture
and the Trustee are required by the TIA to be so qualified. 
  
 SECTION 9.04. Revocation and Effect of Consents. 
  
 Until an amendment, waiver or supplement becomes effective, a consent to it by a Holder is a continuing consent by the Holder and every subsequent Holder of a Note or portion of a Note that evidences the same debt as the consenting
Holder’s Note, even if notation of the consent is not made on any Note. Subject to the following paragraph, any such Holder or subsequent Holder may revoke the consent as to such Holder’s Note or portion of such Note by notice to the
Trustee or the Company received before the date on which the Trustee receives an Officers’ Certificate certifying that the Holders of the requisite principal amount of Notes have consented (and not theretofore revoked such consent) to the
amendment, supplement or waiver. An amendment, supplement or waiver becomes effective upon receipt by the Trustee of such Officers’ Certificate. 
  
 The Company may, but shall not be obligated to, fix a Record Date for the purpose of determining the Holders entitled to consent to any amendment,
supplement or waiver, which Record Date shall be at least 30 days prior to the first solicitation of such consent. If a Record Date is fixed, then notwithstanding the second sentence of the immediately preceding paragraph, those Persons who were
Holders at such Record Date (or their duly designated proxies), and only those Persons, shall be entitled to revoke any consent previously given, whether or 

  

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not such Persons continue to be Holders after such Record Date. No such consent shall be valid or effective for more than 90 days after such Record Date
unless consents from Holders of the requisite percentage in principal amount of outstanding Notes required hereunder for the effectiveness of such consents shall have also been given and not revoked within such 90 day period. 
  
 SECTION 9.05. Notation on or Exchange of Notes. 
  
 If an amendment, supplement or waiver changes the terms of a Note, the
Trustee may require the Holder of such Note to deliver it to the Trustee. The Trustee may place an appropriate notation on the Note about the changed terms and return it to the Holder. Alternatively, if the Company or the Trustee so determine, the
Company in exchange for the Note shall issue and the Trustee shall authenticate a new Note that reflects the changed terms. 
  
 SECTION 9.06. Trustee To Sign Amendments, Etc. 
  
 The Trustee shall execute any amendment, supplement or waiver authorized pursuant to this Article Nine; provided, however, that the Trustee
may, but shall not be obligated to, execute any such amendment, supplement or waiver which affects the Trustee’s own rights, duties or immunities under this Indenture or otherwise. In executing such amendment, supplement or waiver the Trustee
shall be entitled to receive indemnity reasonably satisfactory to it, and shall be fully protected in relying upon an Opinion of Counsel and an Officers’ Certificate of the Company, stating that no Event of Default shall occur as a result of
such amendment, supplement or waiver and that the execution of such amendment, supplement or waiver is authorized or permitted by this Indenture, provided, however, that the legal counsel delivering such Opinion of Counsel may rely as
to matters of fact on one or more Officers’ Certificates of the Company. Such Opinion of Counsel shall not be an expense of the Trustee. 
  
 ARTICLE TEN  
  
 MISCELLANEOUS 
  
 SECTION 10.01. TIA Controls. 
  
 If any provision of this Indenture limits, qualifies, or conflicts with another provision which is required to be included in this Indenture by the TIA, the required provision shall control; provided, however, that this
Section 10.01 shall not of itself require that this Indenture or the Trustee be qualified under the TIA or constitute any admission or acknowledgment by any party hereto that any such qualification is required prior to the time this Indenture and
the Trustee are required by the TIA to be so qualified. 
  

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 SECTION 10.02. Notices. 
  
 Any notices or other communications required or permitted hereunder shall be in writing, and shall be sufficiently given if
made by hand delivery, by telex, by telecopier or registered or certified mail, postage prepaid, return receipt requested, addressed as follows: 
  
 if to the Company or any Guarantor: 
  
 Standard Commercial Corporation 
 2201 Miller
Road 
 Wilson, North Carolina 27894-0450 
 Facsimile No. (919) 237-1109 
  

			
	 Attention:
	 	 Chief Financial Officer;
 Controller; and Henry C.
Babb,
 General Counsel

  
 if to the Trustee:

  
 SunTrust Bank, Corporate Trust Department 
 Mail Code HDQ 5310 
 919 E. Main Street, 10th
Floor 
 Richmond, Virginia 23219 
  

			
	 Attention:
	 	Nancy C.Harrison

  
 The Company, the
Guarantors and the Trustee by written notice to the other may designate additional or different addresses for notices to such Person. Any notice or communication to the Company or the Trustee shall be deemed to have been given or made as of the date
so delivered if hand delivered; when answered back, if telexed; when confirmation of transmission is received, if faxed; and five (5) calendar days after mailing if sent by registered or certified mail, postage prepaid (except that a notice of
change of address shall not be deemed to have been given until actually received by the addressee). 
  
 Any notice or communication mailed to a Holder shall be mailed to him by first class mail or other equivalent means at his address as it appears on the
registration books of the Registrar ten (10) days prior to such mailing and shall be sufficiently given to him if so mailed within the time prescribed. 
  
 So long as any of the Notes are listed on the Luxembourg Stock Exchange and the rules of that exchange so require, notices will be published in a
newspaper having general circulation in Luxembourg (which is expected to be the Luxembourger Wort). 
  
 Failure to mail a notice or communication to a Holder or any defect in it shall not affect its sufficiency with respect to other Holders. If a notice or
communication is mailed in the manner provided above, it is duly given, whether or not the addressee receives it. 
  
 SECTION 10.03. Communications by Holders with Other Holders. 
  
 Holders may communicate pursuant to TIA § 312(b) with other Holders with respect to their rights under this Indenture
or the Notes. The Company, the Trustee, the Registrar and any other Person shall have the protection of TIA § 312(c). 
  

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 SECTION 10.04. Certificate and Opinion as to Conditions Precedent. 
  
 Upon any request or application by the Company or the Guarantors to the
Trustee to take any action under this Indenture, the Company shall furnish to the Trustee: 
  
 (1) an Officers’ Certificate, in form and substance satisfactory to the Trustee, stating that, in the opinion of the signers, all
conditions precedent to be performed by the Company, if any, provided for in this Indenture relating to the proposed action have been complied with; and 
  
 (2) an Opinion of Counsel stating that, in the opinion of such counsel, all such conditions precedent to be performed by the Company, if
any, provided for in this Indenture relating to the proposed action have been complied with (which counsel, as to factual matters, may rely on an Officers’ Certificate). 
  
 SECTION 10.05. Statements Required in Certificate or Opinion. 
  
 Each certificate or opinion with respect to compliance with a condition or
covenant provided for in this Indenture, other than the Officers’ Certificate required by Section 4.06, shall include: 
  
 (1) a statement that the Person making such certificate or opinion has read such covenant or condition; 
  
 (2) a brief statement as to the nature and scope of the
examination or investigation upon which the statements or opinions contained in such certificate or opinion are based; 
  
 (3) a statement that, in the opinion of such Person, he has made such examination or investigation as is reasonably necessary to enable
him to express an informed opinion as to whether or not such covenant or condition has been complied with; and 
  
 (4) a statement as to whether or not, in the opinion of each such Person, such condition or covenant has been complied with. 

 
 SECTION 10.06. Rules by Trustee, Paying Agent, Registrar.

  
 The Trustee may make reasonable rules in accordance with the
Trustee’s customary practices for action by or at a meeting of Holders. The Paying Agent or Registrar may make reasonable rules for its functions. 
  
 SECTION 10.07. Legal Holidays. 
  
 A “Legal Holiday” used with respect to a particular place of payment is a Saturday, a Sunday or a day on which banking institutions in
New York, New York or at such place of payment are not required to be open. If a payment date is a Legal Holiday at such place, payment may be made at such place on the next succeeding day that is not a Legal Holiday, and no interest shall accrue
for the intervening period. 
  

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 SECTION 10.08. Governing Law. 
  
 THIS INDENTURE, THE NOTES AND ANY GUARANTEES SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF
NEW YORK, AS APPLIED TO CONTRACTS MADE AND PERFORMED WITHIN 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; PROVIDED THAT MATTERS RELATING TO THE DUE AUTHORIZATION OF THE NOTES BY THE ISSUER AND THE DUE AUTHORIZATION OF EACH GUARANTEE BY EACH GUARANTOR WILL BE GOVERNED BY THE LAWS OF THE STATE OF NORTH CAROLINA. Each of the parties hereto
agrees to submit to the jurisdiction of the courts of the State of New York in any action or proceeding arising out of or relating to this Indenture, the Notes or the Guarantees. 
  
 SECTION 10.09. No Adverse Interpretation of Other Agreements. 
  
 This Indenture may not be used to interpret another indenture, loan or debt
agreement of the Company or any of its Subsidiaries. Any such indenture, loan or debt agreement may not be used to interpret this Indenture. 
  
 SECTION 10.10. No Personal Liability. 
  
 No past, present or future director, officer, employee, stockholder or incorporator, as such, of the Company or any Guarantor, as such, shall have any
liability for any obligations of the Company or any Guarantor under the Notes, this Indenture, the Guarantees or the Registration Rights Agreement or for any claim based on, in respect of, or by reason of, such obligations or their creation. Each
Holder of Notes by accepting a Note waives and releases all such liability. The waiver and release are part of the consideration for the issuance of the Notes. 
  

SECTION 10.11. Successors. 
  
 All agreements of the Company in this Indenture and the Notes shall bind its successors. All agreements of the Trustee in this Indenture shall bind its
successors. 
  
 SECTION 10.12. Duplicate Originals.

  
 All parties may sign any number of copies of this Indenture.
Each signed copy shall be an original, but all of them together shall represent the same agreement. 
  
 SECTION 10.13. Severability. 
  
 In case any one or more of the provisions in this Indenture or in the Notes shall be held invalid, illegal or unenforceable, in any respect for any
reason, the validity, legality and enforceability of any such provision in every other respect and of the remaining provisions shall not in any way be affected or impaired thereby, it being intended that all of the provisions hereof shall be
enforceable to the full extent permitted by law. 
  

 -78- 

 SECTION 10.14. Independence of Covenants. 
  
 All covenants and agreements in this Indenture and the Notes shall be given
independent effect so that if any particular action or condition is not permitted by any of such covenants, the fact that it would be permitted by an exception to, or otherwise be within the limitations of, another covenant shall not avoid the
occurrence of a Default or an Event of Default if such action is taken or condition exists. 
  
 ARTICLE ELEVEN 
  
 GUARANTEE OF
NOTES 
  
 SECTION 11.01. Unconditional Guarantee.

  
 Subject to the provisions of this Article Eleven, each
Guarantor hereby, jointly and severally, unconditionally and irrevocably guarantees, on a senior basis (such guarantee to be referred to herein as a “Guarantee”) to each Holder of a Note authenticated and delivered by the Trustee
and to the Trustee and its successors and assigns, irrespective of the validity and enforceability of this Indenture, the Notes or the obligations of the Company or any other Guarantor to the Holders or the Trustee hereunder or thereunder, that: (a)
the principal of, premium, if any, and interest on the Notes (and any Additional Interest payable thereon) shall be duly and punctually paid in full when due, whether at maturity, upon redemption at the option of Holders pursuant to the provisions
of the Notes relating thereto, by acceleration or otherwise, and interest on the overdue principal and (to the extent permitted by law) interest, if any, on the Notes and all other obligations of the Company or the Guarantors to the Holders or the
Trustee hereunder or thereunder (including amounts due the Trustee under Section 7.07 hereof) and all other obligations shall be promptly paid in full or performed, all in accordance with the terms hereof and thereof; and (b) in case of any
extension of time of payment or renewal of any Notes or any of such other obligations, the same shall be promptly paid in full when due or performed in accordance with the terms of the extension or renewal, whether at maturity, by acceleration or
otherwise. Failing payment when due of any amount so guaranteed, or failing performance of any other obligation of the Company to the Holders under this Indenture or under the Notes, for whatever reason, each Guarantor shall be obligated to pay, or
to perform or cause the performance of, the same immediately. An Event of Default under this Indenture or the Notes shall constitute an event of default under this Guarantee, and shall entitle the Holders of Notes to accelerate the obligations of
the Guarantors hereunder in the same manner and to the same extent as the obligations of the Company. 
  
 Each of the Guarantors hereby agrees that its obligations hereunder shall be unconditional, irrespective of the validity, regularity or enforceability of
the Notes or this Indenture, the absence of any action to enforce the same, any waiver or consent by any Holder of the Notes with respect to any provisions hereof or thereof, any release of any other Guarantor, the recovery of any judgment against
the Company, any action to enforce the same, whether or not a Guarantee is affixed to any particular Note, or any other circumstance which might otherwise constitute a legal or equitable discharge or defense of a Guarantor. Each of the Guarantors
hereby waives the benefit of diligence, presentment, demand of payment, filing of claims with a 

  

 - 79 - 

 
court in the event of insolvency or bankruptcy of the Company, any right to require a proceeding first against the Company, protest, notice and all demands
whatsoever and covenants that its Guarantee shall not be discharged except by complete performance of the obligations contained in the Notes, this Indenture and this Guarantee. This Guarantee is a guarantee of payment and not of collection. If any
Holder or the Trustee is required by any court or otherwise to return to the Company or to any Guarantor, or any custodian, trustee, liquidator or other similar official acting in relation to the Company or such Guarantor, any amount paid by the
Company or such Guarantor to the Trustee or such Holder, this Guarantee, to the extent theretofore discharged, shall be reinstated in full force and effect. Each Guarantor further agrees that, as between it, on the one hand, and the Holders of Notes
and the Trustee, on the other hand, (a) subject to this Article Eleven, the maturity of the obligations guaranteed hereby may be accelerated as provided in Article Six hereof for the purposes of this Guarantee, notwithstanding any stay, injunction
or other prohibition preventing such acceleration in respect of the obligations guaranteed hereby, and (b) in the event of any acceleration of such obligations as provided in Article Six hereof, such obligations (whether or not due and payable)
shall forthwith become due and payable by the Guarantors for the purpose of this Guarantee. 
  
 No stockholder, officer, director, employee or incorporator, past, present or future, or any Guarantor, as such, shall have any liability under this Guarantee by reason of his, her or its status as such stockholder,
officer, director, employee or incorporator. 
  
 Each Guarantor
that makes a payment or distribution under its Guarantee shall be entitled to a contribution from each other Guarantor, determined in accordance with GAAP. 
  
 SECTION 11.02. Limitations on Guarantees. 
  
 The obligations of each Guarantor under its Guarantee are limited to the maximum amount which, after giving effect to all other contingent and fixed
liabilities of such Guarantor will result in the obligations of such Guarantor under the Guarantee not constituting a fraudulent conveyance or fraudulent transfer under any laws of the United States, any state of the United States or the District of
Columbia. 
  
 SECTION 11.03. Execution and Delivery of
Guarantee. 
  
 To further evidence the Guarantee set forth in
Section 11.01, each Guarantor hereby agrees that a notation of such Guarantee, substantially in the form of Exhibit E herein, shall be endorsed on each Note authenticated and delivered by the Trustee. Such Guarantee shall be executed on
behalf of each Guarantor by either manual or facsimile signature of two Officers of the Guarantor, each of whom, in each case, shall have been duly authorized to so execute by all requisite corporate action. The validity and enforceability of any
Guarantee shall not be affected by the fact that it is not affixed to any particular Note. 
  
 Each of the Guarantors hereby agrees that its Guarantee set forth in Section 11.01 shall remain in full force and effect notwithstanding any failure to endorse on each Note a notation of such Guarantee. 
  

 -80- 

 If an Officer of a Guarantor whose signature is on this Indenture or a Guarantee no longer holds that
office at the time the Trustee authenticates the Note on which such Guarantee is endorsed or at any time thereafter, such Guarantor’s Guarantee of such Note shall be valid nevertheless. 
  
 The delivery of any Note by the Trustee, after the authentication thereof
hereunder, shall constitute due delivery of any Guarantee set forth in this Indenture on behalf of each Guarantor. 
  
 SECTION 11.04. Release of Guarantor. 
  
 (a) If no Default exists or would exist under this Indenture, upon (i) the sale or disposition of all of the Capital Stock of such Guarantor by the
Company in compliance with all of the terms of this Indenture if the Company applies the Net Cash Proceeds of that sale or other disposition in accordance with the applicable provisions of this Indenture, (ii) in connection with any sale or other
disposition of all or substantially all of the assets of that Guarantor (including, without limitation, by way of the merger or consolidation) if the Company applies the Net Cash Proceeds of that sale or other disposition in accordance with the
applicable provisions of this Indenture or (iii) the designation of such Guarantor as an Unrestricted Subsidiary in accordance with all the terms of this Indenture, such Guarantor’s Guarantee shall be released, and such Guarantor shall be
deemed released from all obligations under this Article Eleven without any further action required on the part of the Trustee or any Holder. If such Guarantor is not so released such Guarantor or the entity surviving such Guarantor, as applicable,
shall remain or be liable under its Guarantee as provided in this Article Eleven. 
  
 (b) The Trustee shall deliver an appropriate instrument evidencing the release of such Guarantor upon receipt of a request by the Company or Subsidiary Guarantor accompanied by an Officers’ Certificate and an
Opinion of Counsel certifying as to the compliance with this Section 11.04, provided the legal counsel delivering such Opinion of Counsel may rely as to matters of fact on one or more Officers Certificates of the Company. 
  
 The Trustee shall execute any documents reasonably requested by the Company
or such Guarantor in order to evidence the release of such Guarantor from its obligations under its Guarantee endorsed on the Notes and under this Article Eleven. 
  
 Except as set forth in Articles Four and Five and this Section 11.04, nothing contained in this Indenture or in any of the
Notes shall prevent any consolidation or merger of such Guarantor with or into the Company or shall prevent any sale or conveyance of the property of such Guarantor as an entirety or substantially as an entirety to the Company. 
  
 SECTION 11.05. Waiver of Subrogation. 
  
 Until this Indenture is discharged and all of the Notes are discharged and
paid in full, each Guarantor hereby irrevocably waives and agrees not to exercise any claim or other rights which it may now or hereafter acquire against the Company that arise from the existence, payment, performance or enforcement of the
Company’s obligations under the Notes or this Indenture and such Guarantor’s obligations under this Guarantee and this Indenture, in any such 

  

 -81- 

 
instance including, without limitation, any right of subrogation, reimbursement, exoneration, contribution, indemnification, and any right to participate in
any claim or remedy of the Holders against the Company, whether or not such claim, remedy or right arises in equity, or under contract, statute or common law, including, without limitation, the right to take or receive from the Company, directly or
indirectly, in cash or other property or by set-off or in any other manner, payment or security on account of such claim or other rights. If any amount shall be paid to any Guarantor in violation of the preceding sentence and any amounts owing to
the Trustee or the Holders of Notes under the Notes, this Indenture, or any other document or instrument delivered under or in connection with such agreements or instruments, shall not have been paid in full, such amount shall have been deemed to
have been paid to such Guarantor for the benefit of, and held in trust for the benefit of, the Trustee or the Holders and shall forthwith be paid to the Trustee for the benefit of itself or such Holders to be credited and applied to the obligations
in favor of the Trustee or the Holders, as the case may be, whether matured or unmatured, in accordance with the terms of this Indenture. Each Guarantor acknowledges that it will receive direct and indirect benefits from the financing arrangements
contemplated by this Indenture and that the waiver set forth in this Section 11.05 is knowingly made in contemplation of such benefits. 
  
 SECTION 11.06. Immediate Payment. 
  
 Each Guarantor agrees to make immediate payment to the Trustee on behalf of the Holders of all Obligations owing or payable to the respective Holders upon
receipt of a demand for payment therefor by the Trustee to such Guarantor in writing. 
  
 SECTION 11.07. Obligations Continuing. 
  
 The obligations of each Guarantor hereunder shall be continuing and shall remain in full force and effect until all the obligations have been paid and satisfied in full. Each Guarantor agrees with the Trustee that it
will from time to time deliver to the Trustee suitable acknowledgments of this continued liability hereunder. 
  
 SECTION 11.08. Obligations Reinstated. 
  
 The obligations of each Guarantor hereunder shall continue to be effective or shall be reinstated, as the case may be, if at any time any payment which
would otherwise have reduced the obligations of any Guarantor hereunder (whether such payment shall have been made by or on behalf of the Company or by or on behalf of a Guarantor) is rescinded or reclaimed from any of the Holders upon the
insolvency, bankruptcy, liquidation or reorganization of the Company or any Guarantor or otherwise, all as though such payment had not been made. If demand for, or acceleration of the time for, payment by the Company is stayed upon the insolvency,
bankruptcy, liquidation or reorganization of the Company, all such Indebtedness otherwise subject to demand for payment or acceleration shall nonetheless be payable by each Guarantor as provided herein. 
  
 SECTION 11.09. Obligations Not Affected. 
  
 The obligations of each Guarantor hereunder shall not be affected, impaired
or diminished in any way by any act, omission, matter or thing whatsoever, occurring before, upon 

  

 -82- 

 
or after any demand for payment hereunder (and whether or not known or consented to by any Guarantor or any of the Holders) which, but for this provision,
might constitute a whole or partial defense to a claim against any Guarantor hereunder or might operate to release or otherwise exonerate any Guarantor from any of its obligations hereunder or otherwise affect such obligations, whether occasioned by
default of any of the Holders or otherwise. 
  
 SECTION 11.10.
Waiver. 
  
 Without in any way limiting the provisions of
Section 11.01 hereof, each Guarantor hereby waives notice or proof of reliance by the Holders upon the obligations of any Guarantor hereunder, and diligence, presentment, demand for payment on the Company, protest or notice of dishonor of any of the
Obligations, or other notice or formalities to the Company of any kind whatsoever. 
  
 SECTION 11.11. No Obligation To Take Action Against the Company. 
  
 Neither the Trustee nor any other Person shall have any obligation to enforce or exhaust any rights or remedies or to take any other steps under any
security for the Obligations or against the Company or any other Person or any property of the Company or any other Person before the Trustee is entitled to demand payment and performance by any or all Guarantors of their liabilities and obligations
under their Guarantees or under this Indenture. 
  
 SECTION 11.12.
Dealing with the Company and Others. 
  
 The Holders,
without releasing, discharging, limiting or otherwise affecting in whole or in part the obligations and liabilities of any Guarantor hereunder and without the consent of or notice to any Guarantor, may 
  
 (a) grant time, renewals, extensions, compromises,
concessions, waivers, releases, discharges and other indulgences to the Company or any other Person; 
  
 (b) take or abstain from taking security or collateral from the Company or from perfecting security or collateral of the Company;

  
 (c) release, discharge, compromise, realize,
enforce or otherwise deal with or do any act or thing in respect of (with or without consideration) any and all collateral, mortgages or other security given by the Company or any third party with respect to the obligations or matters contemplated
by this Indenture or the Notes; 
  
 (d) accept
compromises or arrangements from the Company; 
  
 (e) apply all monies at any time received from the Company or from any security upon such part of the Obligations as the Holders may see fit or change any such application in whole or in part from time to time as the Holders may see fit;
and 
  
 (f) otherwise deal with, or waive or
modify their right to deal with, the Company and all other Persons and any security as the Holders or the Trustee may see fit. 
  

 -83- 

 SECTION 11.13. Default and Enforcement. 
  
 If any Guarantor fails to pay in accordance with Section 11.06 hereof, the
Trustee may proceed in its name as trustee hereunder in the enforcement of the Guarantee of any such Guarantor and such Guarantor’s obligations thereunder and hereunder by any remedy provided by law, whether by legal proceedings or otherwise,
and to recover from such Guarantor the obligations. 
  
 SECTION
11.14. Amendment, Etc. 
  
 No amendment, modification or
waiver of any provision of this Indenture relating to any Guarantor or consent to any departure by any Guarantor or any other Person from any such provision will in any event be effective unless it is signed by such Guarantor and the Trustee.

  
 SECTION 11.15. Acknowledgment. 
  
 Each Guarantor hereby acknowledges communication of the terms of this
Indenture and the Notes and consents to and approves of the same. 
  
 SECTION 11.16. Costs and Expenses. 
  
 Each
Guarantor shall pay on demand by the Trustee any and all costs, fees and expenses (including, without limitation, legal fees) incurred by the Trustee, its agents, advisors and counsel or any of the Holders in enforcing any of their rights under any
Guarantee. 
  
 SECTION 11.17. No Waiver; Cumulative
Remedies. 
  
 No failure to exercise and no delay in
exercising, on the part of the Trustee or the Holders, any right, remedy, power or privilege hereunder or under this Indenture or the Notes, shall operate as a waiver thereof; nor shall any single or partial exercise of any right, remedy, power or
privilege hereunder or under this Indenture or the Notes preclude any other or further exercise thereof or the exercise of any other right, remedy, power or privilege. The rights, remedies, powers and privileges in the Guarantee and under this
Indenture, the Notes and any other document or instrument between a Guarantor and/or the Company and the Trustee are cumulative and not exclusive of any rights, remedies, powers and privilege provided by law. 
  
 SECTION 11.18. Survival of Obligations. 
  
 Without prejudice to the survival of any of the other obligations of each
Guarantor hereunder, the obligations of each Guarantor under Section 11.01 shall survive and shall be enforceable against such Guarantor without regard to and without giving effect to any right of offset or counterclaim available to or which may be
asserted by the Company or any Guarantor. 
  
 SECTION 11.19.
Guarantee in Addition to Other Obligations. 
  
 The
obligations of each Guarantor under its Guarantee and this Indenture are in addition to and not in substitution for any other obligations to the Trustee or to any of the Holders 

  

 -84- 

 
in relation to this Indenture or the Notes (including the Purchase Agreement and the Registration Rights Agreement). 
  
 SECTION 11.20. Severability. 
  
 Any provision of this Article Eleven which is prohibited or unenforceable in
any jurisdiction shall not invalidate the remaining provisions and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction unless its removal would
substantially defeat the basic intent, spirit and purpose of this Indenture and this Article Eleven. 
  
 SECTION 11.21. Successors and Assigns. 
  
 Each Guarantee shall be binding upon and inure to the benefit of each Guarantor and the Trustee and the other Holders and their respective successors and
permitted assigns, except that no Guarantor may assign any of its obligations hereunder or thereunder. 
  
 [Remainder of Page Intentionally Left Blank] 
  

 -85- 

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

			
	 STANDARD COMMERCIAL CORPORATION

		
	 By:
	 	 
	 	 	

	 	 	 Name:

	 	 	 Title:

  

			
	 STANDARD COMMERCIAL TOBACCO CO.,
INC., as Guarantor

		
	 By:
	 	 
	 	 	

	 	 	 Name:

	 	 	 Title:

  

			
	 SUNTRUST BANK, as Trustee

		
	 By:
	 	 
	 	 	

	 	 	 Name:

	 	 	 Title:

  

 S-l 

 EXHIBIT A 
  

CUSIP No.: [        ] 
  
 STANDARD COMMERCIAL CORPORATION 
 8% SENIOR NOTE
DUE 2012, SERIES A 
  

			
	No.[            ]	  	$[            ]

  
 STANDARD COMMERCIAL
CORPORATION, a North Carolina corporation (the “Company”, which term includes any successor entities), for value received promises to pay to Cede & Co. or registered assigns the principal sum of
[            ] ($[            ]) Dollars on April 15, 2012. 
  
 Interest Payment Dates: April 15 and October 15, commencing October 15, 2004 
  
 Record Dates: April 1 and October 1 
  
 Reference is made to the further provisions of this Note contained herein,
which will for all purposes have the same effect as if set forth at this place. 
  
 IN WITNESS WHEREOF, the Company has caused this Note to be signed manually or by facsimile by its duly authorized officers and a facsimile of its corporate seal to be affixed hereto or imprinted hereon. 
  

			
	 STANDARD COMMERCIAL CORPORATION

		
	 By:
	 	 
	 	 	

	 	 	 Name:

	 	 	 Title:

		
	 By:
	 	 
	 	 	

	 	 	 Name:

	 	 	 Title:

  
 Dated: 
  

 A-1 

 Certificate of Authentication 
  
 This is one of the 8% Senior Notes due 2012, Series A referred to in the
within-mentioned Indenture. 
  

			
	 SUNTRUST BANK, as Trustee

		
	 By:
	 	 
	 	 	

	 	 	Authorized Signatory

  
 Date of Authentication:

  

 A-2 

 (REVERSE OF SECURITY) 
 8% Senior Note due 2012, Series A 
  
 1. Interest. STANDARD COMMERCIAL CORPORATION, a North Carolina corporation (the “Company”), promises to pay interest on the principal amount of this Note at the rate per annum shown above. Interest on the Notes will accrue
from the most recent date on which interest has been paid or, if no interest has been paid, from April 2, 2004 with respect to Notes issued on the Issue Date. The Company will pay interest semi-annually in arrears on each Interest Payment Date,
commencing October 15, 2004 with respect to Notes issued on the Issue Date. Interest will be computed on the basis of a 360-day year of twelve 30-day months and, in the case of a partial month, the actual number of days elapsed. 
  
 The Company shall pay interest on overdue principal and on overdue
installments of interest from time to time on demand at the rate borne by the Notes and on overdue installments of interest (without regard to any applicable grace periods) to the extent lawful. 
  
 2. Method of Payment. The Company shall pay interest on the Notes
(except defaulted interest) to the Persons who are the registered Holders at the close of business on the Record Date immediately preceding the Interest Payment Date even if the Notes are cancelled on registration of transfer or registration of
exchange (including pursuant to an Exchange Offer (as defined in the Registration Rights Agreement)) after such Record Date. Holders must surrender Notes to a Paying Agent to collect principal payments. The Company shall pay principal and interest
in money of the United States that at the time of payment is legal tender for payment of public and private debts (“U.S. Legal Tender”). However, the Company may pay principal and interest by its check payable in such U.S. Legal Tender.
The Company may deliver any such interest payment to the Paying Agent or to a Holder at the Holder’s registered address. 
  
 3. Paying Agent and Registrar. Initially, SunTrust Bank (the “Trustee”) will act as Paying Agent and Registrar. The Company may change
any Paying Agent or Registrar without notice to the Holders. 
  
 4. Indenture. The Company issued the Notes under an Indenture, dated as of April 2, 2004 (the “Indenture”), among the Company, the Guarantor and the Trustee. This Note is one of a duly authorized issue of Initial Notes of
the Company designated as its 8% Senior Notes due 2012, Series A (the “Initial Notes”). The Notes include the Initial Notes, the Private change Notes (as defined in the Indenture) and the Exchange Notes, as defined below, issued in
exchange for the Initial Notes pursuant to the Registration Rights Agreement or, with respect to Initial Notes issued under the Indenture subsequent to the Issue Date, a registration rights agreement substantially identical to the Registration
Rights Agreement. The Initial Notes and the Exchange Notes are treated as a single class of securities under the Indenture. Capitalized terms herein are used as defined in the Indenture unless otherwise defined herein. The terms of the Notes include
those stated in the Indenture and those made part of the Indenture by reference to the Trust Indenture Act of 1939 (15 U.S. Code §§ 77aaa-77bbbb) (the “TIA”), as in effect on the date of the Indenture. Notwithstanding anything to
the contrary herein, the Notes are subject to all such terms, and Holders of Notes are referred to the Indenture and the TIA for a statement 

  

 A-3 

 
of them. The Notes are general unsecured obligations of the Company and unlimited in aggregate principal amount. 
  
 5. Indenture. Each Holder, by accepting a Note, agrees to be bound by
all of the terms and provisions of the Indenture, as the same may be amended from time to time in accordance with its terms. 
  
 6. Optional Redemption. (a) Except as described below, the Notes are not redeemable before April 15, 2008. Thereafter, the Company may redeem the
Notes at its option, in whole or in part, upon not less than 30 nor more than 60 days’ notice, at the following redemption prices (expressed as percentages of the principal amount thereof) if redeemed during the twelve-month period commencing
on April 15 of the year set forth below, plus, in each case, accrued and unpaid interest thereon, if any, to the date of redemption: 
  

				
	 Year

	  	Percentage

	 
	 2008
	  	104.000	%
	 2009
	  	102.000	%
	 2010 and thereafter
	  	100.000	%

  
 (b) Optional
Redemption upon Public Equity Offerings. At any time, or from time to time, on or prior to April 15, 2007, the Company may, at its option, use the net cash proceeds of one or more Public Equity Offerings to redeem up to 35% of the principal
amount of the Notes issued under the Indenture at a redemption price of 108% of the principal amount thereof plus accrued and unpaid interest thereon, if any, to the date of redemption; provided that 
  
 (i) at least 65% of the principal amount of Notes issued
under the Indenture remains outstanding immediately after any such redemption; and 
  
 (ii) the Company makes such redemption not more than 90 days after the consummation of any such Public Equity Offering. 
  
 7. Notice of Redemption. Notice of redemption will be mailed by first
class mail at least 30 days but not more than 60 days before the Redemption Date to each Holder of Notes to be redeemed at such Holder’s registered address. If and so long as any of the Notes are listed on the Luxembourg Stock Exchange and the
rules of such exchange so require, notices will also be published in a leading newspaper having general circulation in Luxembourg (which is expected to be the Luxembourger Wort). Notes in denominations larger than $1,000 may be redeemed in
part. 
  
 Except as set forth in the Indenture, if monies for the
redemption of the Notes called for redemption shall have been deposited with the Paying Agent for redemption on such Redemption Date, then, unless the Company defaults in the payment of such redemption price plus accrued interest, if any, the Notes
called for redemption will cease to bear interest from and after such Redemption Date and the only right of the Holders of such Notes will be to receive payment of the redemption price plus accrued and unpaid interest, if any. 
  

 A-4 

 8. Offers to Purchase. Sections 4.14 and 4.15 of the Indenture provide that, after certain Asset
Sales (as defined in the Indenture) and upon the occurrence of a Change of Control (as defined in the Indenture), and subject to further limitations contained therein, the Company will make an offer to purchase certain amounts of the Notes in
accordance with the procedures set forth in the Indenture. 
  
 9.
Registration Rights. Pursuant to the Registration Rights Agreement among the Company, the Guarantor and the Initial Purchasers, the Company and the Guarantor will be obligated to consummate an exchange offer pursuant to which the Holder of
this Note shall have the right to exchange this Note for the Company’s 8% Senior Notes due 2012, Series B (the “Exchange Notes”), which have been registered under the Securities Act, in like principal amount and having terms identical
in all material respects as the Initial Notes. The Holders of the Initial Notes shall be entitled to receive certain additional interest payments in the event such exchange offer is not consummated and upon certain other conditions, all pursuant to
and in accordance with the terms of the Registration Rights Agreement. 
  
 10. Denominations; Transfer; Exchange. The Notes are in registered form, without coupons, and in denominations of $1,000 and integral multiples of $1,000. A Holder shall register the transfer of or exchange Notes in accordance with
the Indenture. The Registrar may require a Holder, among other things, to furnish appropriate endorsements and transfer documents and to pay certain transfer taxes or similar governmental charges payable in connection therewith as permitted by the
Indenture. The Registrar need not register the transfer of or exchange of any Notes or portions thereof selected for redemption. 
  
 11. Persons Deemed Owners. The registered Holder of a Note shall be treated as the owner of it for all purposes. 
  
 12. Unclaimed Money. If money for the payment of principal or interest
remains unclaimed for one year, the Trustee and the Paying Agent will pay the money back to the Company. After that, all liability of the Trustee and such Paying Agent with respect to such money shall cease. 
  
 13. Discharge Prior to Redemption or Maturity. If the Company at any
time deposits with the Trustee U.S. Legal Tender or U.S. Government Obligations sufficient to pay the principal of and interest on the Notes to redemption or maturity and complies with the other provisions of the Indenture relating thereto, the
Company will be discharged from certain provisions of the Indenture and the Notes (including certain covenants, including, under certain circumstances, its obligation to pay the principal of and interest on the Notes but without affecting the rights
of the Holders to receive such amounts from such deposits). 
  
 14. Amendment; Supplement; Waiver. Subject to certain exceptions set forth in the Indenture, the Indenture or the Notes may be amended or supplemented with the written consent of the Holders of a majority in aggregate principal
amount of the Notes then outstanding, and any past Default or Event of Default or noncompliance with any provision may be waived with the written consent of the Holders of a majority in aggregate principal amount of the Notes then outstanding.
Without notice to or consent of any Holder, the parties thereto may amend or supplement the Indenture or the Notes to, among other things, cure any ambiguity, defect or inconsistency, 

  

 A-5 

 
provide for uncertificated Notes in addition to or in place of certificated Notes, comply with any requirements of the Commission in order to effect or
maintain the qualification of the Indenture under the TIA or comply with Article Five of the Indenture or make any other change that does not adversely affect the rights of any Holder of a Note. 
  
 15. Restrictive Covenants. The Indenture imposes certain limitations
on the ability of the Company and its Restricted Subsidiaries to, among other things, incur additional Indebtedness, make payments in respect of their Capital Stock or certain Indebtedness, make certain Investments, create or incur liens, enter into
transactions with Affiliates, create dividend or other payment restrictions affecting any Restricted Subsidiaries of the Company, issue Preferred Stock of any Subsidiaries of the Company, and on the ability of the Company to merge or consolidate
with any other Person or sell, assign, transfer, lease, convey or otherwise dispose of all or substantially all of the Company’s or its Restricted Subsidiaries’ assets or adopt a plan of liquidation. Such limitations are subject to a
number of important qualifications and exceptions. Pursuant to Section 4.06 of the Indenture, the Company must annually report to the Trustee on compliance with such limitations. 
  
 16. Successors. When a successor assumes, in accordance with the Indenture, all the obligations of its predecessor
under the Notes and the Indenture, the predecessor will be released from those obligations. 
  
 17. Defaults and Remedies. If an Event of Default occurs and is continuing, the Trustee or the Holders of not less than 25% in aggregate principal amount of Notes then outstanding may declare all the Notes to
be due and payable in the manner, at the time and with the effect provided in the Indenture. Holders of Notes may not enforce the Indenture or the Notes except as provided in the Indenture. The Trustee is not obligated to enforce the Indenture or
the Notes unless it has received indemnity reasonably satisfactory to it. The Indenture permits, subject to certain limitations therein provided, Holders of a majority in aggregate principal amount of the Notes then outstanding to direct the Trustee
in its exercise of any trust or power. The Trustee may withhold from Holders of Notes notice of any continuing Default or Event of Default (except a Default in payment of principal or interest when due, for any reason or a Default in compliance with
Article Five of the Indenture) if it determines that withholding notice is in their interest. 
  
 18. Trustee Dealings with the Company and Its Subsidiaries. The Trustee under the Indenture, in its individual or any other capacity, may become the owner or pledgee of Notes and may otherwise deal with the
Company, its Subsidiaries or their respective Affiliates as if it were not the Trustee. 
  
 19. No Recourse Against Others. No past, present or future, director, officer, employee, stockholder or incorporator, as such, of the Company or any Guarantor, as such, shall have any liability for any
obligations of the Company or any Guarantor under the Notes, the In denture, the Guarantees or the Registration Rights Agreement or for any claim based on, in respect of, or by reason of, such obligations or their creation. Each Holder of Notes by
accepting a Note waives and releases all such liability. The waiver and release are part of the consideration for the issuance of the Notes. 
  

 A-6 

 20. Guarantees. This Note will be entitled to the benefits of certain Guarantees, if any, made for
the benefit of the Holders. Reference is hereby made to the Indenture for a statement of the respective rights, limitations of rights, duties and obligations thereunder of the Guarantors, the Trustee and the Holders. 
  
 21. Authentication. This Note shall not be valid until the Trustee or
Authenticating Agent manually or by facsimile signs the certificate of authentication on this Note. 
  
 22. Governing Law. This Note and the Indenture shall be governed by and construed in accordance with the laws of the State of New York, as applied
to contracts made and performed within the State of New York, without regard to principles of conflict of laws to the extent that the application of the law of another jurisdiction would be required thereby; provided that matters relating to
the due authorization hereof by the Company shall be governed by the laws of the State of North Carolina. Each of the parties hereto agrees to submit to the jurisdiction of the courts of the State of New York in any action or proceeding arising out
of or relating to this Note. 
  
 23. Abbreviations and Defined
Terms. Customary abbreviations may be used in the name of a Holder of a Note or an assignee, such as: TEN COM (= tenants in common), TEN ENT (= tenants by the entireties), JT TEN (= joint tenants with right of survivorship and not as tenants in
common), CUST (= Custodian), and U/G/M/A (= Uniform Gifts to Minors Act). 
  
 24. CUSIP Numbers. Pursuant to a recommendation promulgated by the Committee on Uniform Security Identification Procedures, the Company has caused CUSIP numbers to be printed on the Notes as a convenience to
the Holders of the Notes. No representation is made as to the accuracy of such numbers as printed on the Notes and reliance may be placed only on the other identification numbers printed hereon. 
  
 The Company will furnish to any Holder of a Note upon written request and
without charge a copy of the Indenture, which has the text of this Note. Requests may be made to: Standard Commercial Corporation, 2201 Miller Road, P.O. Box 450, Wilson, North Carolina 27894-0450. 
  

 A-7 

 ASSIGNMENT FORM 
  

If you the Holder want to assign this Note, fill in the form below and have your signature guaranteed: 
  
 I or we assign and transfer this Note to: 
  

  

  

 (Print or
type name, address and zip code and social security or tax ID number of assignee) 
  
 and irrevocably appoint                     , agent to transfer this Note on the books of the Company. The agent may substitute
another to act for him. 
  

									
	Dated:	 	 	 	 	 	 Signed:
	 	 
	 	 	
	 	 	 	 	 	

	 	 	 	 	 	 	 	 	(Sign exactly as your name appears on the other side of this Note)

									
					
	 Signature Guarantee:
	 	 	 	 	 	 	 	 
	 	 	

  
 In connection with any
transfer of this Note occurring prior to the date which is the earlier of (i) the date of the declaration by the Commission of the effectiveness of a registration statement under the Securities Act of 1933, as amended (the “Securities
Act”), covering resales of this Note (which effectiveness shall not have been suspended or terminated at the date of the transfer) or (ii) April 2, 2006, the undersigned confirms that it has not utilized any general solicitation or general
advertising in connection with the transfer: 
  
 [Check One]

  

				
	(1	)  ̈	 	to the Company or a subsidiary thereof; or
		
	(2	)  ̈	 	pursuant to and in compliance with Rule 144A under the Securities Act; or
		
	(3	)  ̈	 	to an institutional “accredited investor” (as defined in Rule 501(a)(1), (2), (3) or (7) under the Securities Act) that has furnished to the Trustee a signed letter containing
certain representations and agreements (the form of which letter can be obtained from the Trustee); or
		
	(4	)  ̈	 	outside the United states to a “foreign person” in compliance with Rule 904 of Regulation S under the Securities Act; or
		
	(5	)  ̈	 	pursuant to the exemption from registration provided by Rule 144 under the Securities Act; or

  

 A-8 

				
	(6	)  ̈	 	pursuant to an effective registration statement under the Securities Act; or
		
	(7	)  ̈	 	pursuant to another available exemption from the registration requirements of the Securities Act;

  
 and unless the box below is checked,
the undersigned confirms that such Note is not being transferred to an “affiliate” of the Company as defined in Rule 144 under the Securities Act (an “Affiliate”): 
  

	 	 ̈	The transferee is an Affiliate of the Company. 

  
 Unless one of the items is checked, the Trustee will refuse to register any of the Notes evidenced by this certificate in the name of any person other
than the registered Holder thereof; provided, however, that if item (3), (4), (5) or (7) is checked, the Company or the Trustee may require, prior to registering any such transfer of the Notes, in their sole discretion, such written
legal opinions, certifications (including an investment letter in the case of box (3) or (4)) and other information as the Trustee or the Company has reasonably requested to confirm that such transfer is being made pursuant to an exemption from, or
in a transaction not subject to, the registration requirements of the Securities Act. 
  
 If none of the foregoing items are checked, the Trustee or Registrar shall not be obligated to register this Note in the name of any person other than the Holder hereof unless and until the conditions to any such
transfer of registration set forth herein and in Section 2.17 of the Indenture shall have been satisfied. 
  

									
	Dated:	 	 	 	 	 	 Signed:
	 	 
	 	 	
	 	 	 	 	 	

	 	 	 	 	 	 	 	 	(Sign exactly as your name appears on the other side of this Note)

									
					
	 Signature Guarantee:
	 	 	 	 	 	 	 	 
	 	 	
	 	 	 	 	 	 

  

 A-9 

 TO BE COMPLETED BY PURCHASER IF (2) ABOVE IS CHECKED 
  
 The undersigned represents and warrants that it is purchasing this Note for
its own account or an account with respect to which it exercises sole investment discretion and that it and any such account is a “qualified institutional buyer” within the meaning of Rule 144A under the Securities Act and is aware that
the sale to it is being made in reliance on Rule 144A and acknowledges that it has received such information regarding the Company as the undersigned has requested pursuant to Rule 144A or has determined not to request such information and that it
is aware that the transferor is relying upon the undersigned’s foregoing representations in order to claim the exemption from registration provided by Rule 144A. 
  

							
	Dated:	 	 	 	 	 	 
	 	 	
	 	 	 	

	 	 	 	 	 	 	 NOTICE: To be executed by an executive officer

  

 A-10 

 [OPTION OF HOLDER TO ELECT PURCHASE] 
  
 If you want to elect to have this Note purchased by the Company pursuant to Section 4.14 or Section 4.15 of the Indenture,
check the appropriate box: 
  
 Section 4.14  ̈ 
  
 Section 4.15  ̈ 
  
 If you want to elect to have only part of this Note purchased by the Company pursuant to Section 4.14 or Section 4.15 of the Indenture, state the amount
you elect to have purchased: 
  
 $                         
  

							
	Dated:	 	 	 	 	 	 
	 	 	
	 	 	 	

	 	 	 	 	 	 	NOTICE: The signature on this assignment must correspond with the name as it appears upon the face of the within Note in every particular without alteration or enlargement or any change
whatsoever and be guaranteed.

  
 Signature Guarantee:
                                        
                                        

  

 A-11 

 EXHIBIT B 
  

CUSIP No.: [        ] 
  
 STANDARD COMMERCIAL CORPORATION 
 8% SENIOR NOTE
DUE 2012, SERIES B 
  

			
	 No.[            ]
	 	$[            ]

  
 STANDARD COMMERCIAL
CORPORATION, a North Carolina corporation (the “Company”, which term includes any successor entities), for value received promises to pay to Cede & Co. or registered assigns the principal sum of
[            ] ($[            ]) Dollars on April 15, 2012. 
  
 Interest Payment Dates: April 15 and October 15, commencing October 15, 2004 
  
 Record Dates: April 1 and October 1 
  
 Reference is made to the further provisions of this Note contained herein,
which will for all purposes have the same effect as if set forth at this place. 
  
 IN WITNESS WHEREOF, the Company has caused this Note to be signed manually or by facsimile by its duly authorized officers and a facsimile of its corporate seal to be affixed hereto or imprinted hereon. 
  

			
	 STANDARD COMMERCIAL CORPORATION

		
	 By:
	 	 
	 	 	

	 	 	 Name:
 Title:

  

			
		
	 By:
	 	 
	 	 	

	 	 	 Name:
 Title:

  
 Dated: 
  

 B-1 

 Certificate of Authentication 
  
 This is one of the 8% Senior Notes due 2012, Series B referred to in the
within-mentioned Indenture. 
  

			
	SUNTRUST BANK, as Trustee
		
	By:	 	 
	 	 	

	 	 	Authorized Signatory

  
 Date of Authentication:

  

 B-2 

 (REVERSE OF SECURITY) 
  
 8% Senior Note due 2012, Series B 
  
 1. Interest. STANDARD COMMERCIAL CORPORATION, a North Carolina corporation (the “Company”), promises to pay interest on the principal
amount of this Note at the rate per annum shown above. Interest on the Notes will accrue from the most recent date on which interest has been paid or, if no interest has been paid, from April 2, 2004 with respect to Notes issued on the Issue Date.
The Company will pay interest semi-annually in arrears on each Interest Payment Date, commencing October 15, 2004 with respect to Notes issued on the Issue Date. Interest will be computed on the basis of a 360-day year of twelve 30-day months and,
in the case of a partial month, the actual number of days elapsed. 
  
 The Company shall pay interest on overdue principal and on overdue installments of interest from time to time on demand at the rate borne by the Notes and on overdue installments of interest (without regard to any applicable grace periods)
to the extent lawful. 
  
 2. Method of Payment. The Company
shall pay interest on the Notes (except defaulted interest) to the Persons who are the registered Holders at the close of business on the Record Date immediately preceding the Interest Payment Date even if the Notes are cancelled on registration of
transfer or registration of exchange after such Record Date. Holders must surrender Notes to a Paying Agent to collect principal payments. The Company shall pay principal and interest in money of the United States that at the time of payment is
legal tender for payment of public and private debts (“U.S. Legal Tender”). However, the Company may pay principal and interest by its check payable in such U.S. Legal Tender. The Company may deliver any such interest payment to the Paying
Agent or to a Holder at the Holder’s registered address. 
  
 3. Paying Agent and Registrar. Initially, SunTrust Bank (the “Trustee”) will act as Paying Agent and Registrar. The Company may change any Paying Agent or Registrar without notice to the Holders. 
  
 4. Indenture. The Company issued the Notes under an Indenture, dated
as of April 2, 2004 (the “Indenture”), among the Company, the Guarantor and the Trustee. This Note is one of a duly authorized issue of Exchange Notes of the Company designated as its 8% Senior Notes due 2012, Series B (the “Exchange
Notes”). The Notes include the 8% Notes due 2012, Series A (the “Initial Notes”) and the Exchange Notes, issued in exchange for the Initial Notes pursuant to a registration rights agreement. The Initial Notes, the Private Exchange
Notes (as defined in the Indenture) and the Exchange Notes are treated as a single class of securities under the Indenture. Capitalized terms herein are used as defined in the Indenture unless otherwise defined herein. The terms of the Notes include
those stated in the Indenture and those made part of the Indenture by reference to the Trust Indenture Act of 1939 (15 U.S. Code §§ 77aaa-77bbbb) (the “TIA”), as in effect on the date of the Indenture. Notwithstanding anything to
the contrary herein, the Notes are subject to all such terms, and Holders of Notes are referred to the Indenture and the TIA for a statement of them. The Notes are general unsecured obligations of the Company and unlimited in aggregate principal
amount. 
  

 B-3 

 5. Indenture. Each Holder, by accepting a Note, agrees to be bound by all of the terms and
provisions of the Indenture, as the same may be amended from time to time in accordance with its terms. 
  
 6. Optional Redemption. (a) Except as described below, the Notes are not redeemable before April 15, 2008. Thereafter, the Company may redeem the
Notes at its option, in whole or in part, upon not less than 30 nor more than 60 days’ notice, at the following redemption prices (expressed as percentages of the principal amount thereof) if redeemed during the twelve-month period commencing
on April 15 of the year set forth below, plus, in each case, accrued and unpaid interest thereon, if any, to the date of redemption: 
  

				
	 Year

	  	Percentage

	 
	 2008
	  	104.000	%
	 2009
	  	102.000	%
	 2010 and thereafter
	  	100.000	%

  
 (b) Optional
Redemption upon Public Equity Offerings. At any time, or from time to time, on or prior to April 15, 2007, the Company may, at its option, use the net cash proceeds of one or more Public Equity Offerings to redeem up to 35% of the principal
amount of the Notes issued under the Indenture at a redemption price of 108% of the principal amount thereof plus accrued and unpaid interest thereon, if any, to the date of redemption; provided that 
  
 (i) at least 65% of the principal amount of Notes issued
under the Indenture remains outstanding immediately after any such redemption; and 
  
 (ii) the Company makes such redemption not more than 90 days after the consummation of any such Public Equity Offering. 
  
 7. Notice of Redemption. Notice of redemption will be mailed by first
class mail at least 30 days but not more than 60 days before the Redemption Date to each Holder of Notes to be redeemed at such Holder’s registered address. If and so long as any of the Notes are listed on the Luxembourg Stock Exchange and the
rules of such exchange so require, notices will also be published in a leading newspaper having general circulation in Luxembourg (which is expected to be the Luxembourger Wort. Notes in denominations larger than $1,000 may be redeemed in
part. 
  
 Except as set forth in the Indenture, if monies for the
redemption of the Notes called for redemption shall have been deposited with the Paying Agent for redemption on such Redemption Date, then, unless the Company defaults in the payment of such redemption price plus accrued interest, if any, the Notes
called for redemption will cease to bear interest from and after such Redemption Date and the only right of the Holders of such Notes will be to receive payment of the redemption price plus accrued and unpaid interest, if any. 
  
 8. Offers to Purchase. Sections 4.14 and 4.15 of the Indenture provide
that, after certain Asset Sales (as defined in the Indenture) and upon the occurrence of a Change of Control (as defined in the Indenture), and subject to further limitations contained therein, the 

  

 B-4 

 
Company will make an offer to purchase certain amounts of the Notes in accordance with the procedures set forth in the Indenture. 
  
 9. Denominations; Transfer; Exchange. The Notes are in registered
form, without coupons, and in denominations of $1,000 and integral multiples of $1,000. A Holder shall register the transfer of or exchange Notes in accordance with the Indenture. The Registrar may require a Holder, among other things, to furnish
appropriate endorsements and transfer documents and to pay certain transfer taxes or similar governmental charges payable in connection therewith as permitted by the Indenture. The Registrar need not register the transfer of or exchange of any Notes
or portions thereof selected for redemption. 
  
 10. Persons
Deemed Owners. The registered Holder of a Note shall be treated as the owner of it for all purposes. 
  
 11. Unclaimed Money. If money for the payment of principal or interest remains unclaimed for one year, the Trustee and the Paying Agent will pay
the money back to the Company. After that, all liability of the Trustee and such Paying Agent with respect to such money shall cease. 
  
 12. Discharge Prior to Redemption or Maturity. If the Company at any time deposits with the Trustee U.S. Legal Tender or U.S. Government
Obligations sufficient to pay the principal of and interest on the Notes to redemption or maturity and complies with the other provisions of the Indenture relating thereto, the Company will be discharged from certain provisions of the Indenture and
the Notes (including certain covenants, including, under certain circumstances, its obligation to pay the principal of and interest on the Notes but without affecting the rights of the Holders to receive such amounts from such deposits). 

 
 13. Amendment; Supplement; Waiver. Subject to certain exceptions
set forth in the Indenture, the Indenture or the Notes may be amended or supplemented with the written consent of the Holders of a majority in aggregate principal amount of the Notes then outstanding, and any past Default or Event of Default or
noncompliance with any provision may be waived with the written consent of the Holders of a majority in aggregate principal amount of the Notes then outstanding. Without notice to or consent of any Holder, the parties thereto may amend or supplement
the Indenture or the Notes to, among other things, cure any ambiguity, defect or inconsistency, provide for uncertificated Notes in addition to or in place of certificated Notes, comply with any requirements of the Commission in order to effect or
maintain the qualification of the Indenture under the TIA or comply with Article Five of the Indenture or make any other change that does not adversely affect the rights of any Holder of a Note. 
  
 14. Restrictive Covenants. The Indenture imposes certain limitations
on the ability of the Company and its Restricted Subsidiaries to, among other things, incur additional Indebtedness, make payments in respect of their Capital Stock or certain Indebtedness, make certain Investments, create or incur liens, enter into
transactions with Affiliates, create dividend or other payment restrictions affecting any Restricted Subsidiaries of the Company, issue Preferred Stock of any Subsidiaries of the Company, and on the ability of the Company to merge or consolidate
with any other Person or sell, assign, transfer, lease, convey or otherwise dispose of all or substantially all of the Company’s or its Restricted Subsidiaries’ assets or adopt a plan of liquidation. 

  

 B-5 

 
Such limitations are subject to a number of important qualifications and exceptions. Pursuant to Section 4.06 of the Indenture, the Company must annually
report to the Trustee on compliance with such limitations. 
  
 15.
Successors. When a successor assumes, in accordance with the Indenture, all the obligations of its predecessor under the Notes and the Indenture, the predecessor will be released from those obligations. 
  
 16. Defaults and Remedies. If an Event of Default occurs and is
continuing, the Trustee or the Holders of not less than 25% in aggregate principal amount of Notes then out standing may declare all the Notes to be due and payable in the manner, at the time and with the effect provided in the Indenture. Holders of
Notes may not enforce the Indenture or the Notes except as provided in the Indenture. The Trustee is not obligated to enforce the Indenture or the Notes unless it has received indemnity reasonably satisfactory to it. The Indenture permits, subject
to certain limitations therein provided, Holders of a majority in aggregate principal amount of the Notes then outstanding to direct the Trustee in its exercise of any trust or power. The Trustee may withhold from Holders of Notes notice of any
continuing Default or Event of Default (except a Default in payment of principal or interest when due, for any reason or a Default in compliance with Article Five of the Indenture) if it determines that withholding notice is in their interest.

  
 17. Trustee Dealings with the Company and Its
Subsidiaries. The Trustee under the Indenture, in its individual or any other capacity, may become the owner or pledgee of Notes and may otherwise deal with the Company, its Subsidiaries or their respective Affiliates as if it were not the
Trustee. 
  
 18. No Recourse Against Others. No past,
present or future director, officer, employee, stockholder or incorporator, as such, of the Company or any Guarantor, as such, shall have any liability for any obligations of the Company or any Guarantor under the Notes, the Indenture, the
Guarantees or the Registration Rights Agreement or for any claim based on, in respect of, or by reason of, such obligations or their creation. Each Holder of Notes by accepting a Note waives and releases all such liability. The waiver and release
are part of the consideration for the issuance of the Notes. 
  
 19. Guarantees. This Note will be entitled to the benefits of certain Guarantees, if any, made for the benefit of the Holders. Reference is hereby made to the Indenture for a statement of the respective rights, limitations of rights,
duties and obligations thereunder of the Guarantors, the Trustee and the Holders. 
  
 20. Authentication. This Note shall not be valid until the Trustee or Authenticating Agent manually or by facsimile signs the certificate of authentication on this Note. 
  
 21. Governing Law. This Note and the Indenture shall be governed by
and construed in accordance with the laws of the State of New York, as applied to contracts made and performed within the State of New York, without regard to principles of conflict of laws to the extent that the application of the law of another
jurisdiction would be required thereby; provided that matters relating to the due authorization hereof by the Company shall be governed by 

  

 B-6 

 
the laws of the state of North Carolina. Each of the parties hereto agrees to submit to the jurisdiction of the courts of the State of New York in any action
or proceeding arising out of or relating to this Note. 
  
 22.
Abbreviations and Defined Terms. Customary abbreviations may be used in the name of a Holder of a Note or an assignee, such as: TEN COM (= tenants in common), TEN ENT (= tenants by the entireties), JT TEN (= joint tenants with right of
survivorship and not as tenants in common), CUST (= Custodian), and U/G/M/A (= Uniform Gifts to Minors Act). 
  
 23. CUSIP Numbers. Pursuant to a recommendation promulgated by the Committee on Uniform Security Identification Procedures, the Company has caused
CUSIP numbers to be printed on the Notes as a convenience to the Holders of the Notes. No representation is made as to the accuracy of such numbers as printed on the Notes and reliance may be placed only on the other identification numbers printed
hereon. 
  
 The Company will furnish to any Holder of a Note upon
written request and without charge a copy of the Indenture, which has the text of this Note. Requests may be made to: Standard Commercial Corporation, 2201 Miller Road, P.O. Box 450, Wilson, North Carolina 27894-0450. 
  

 B-7 

 ASSIGNMENT FORM 
  

If you the Holder want to assign this Note, fill in the form below and have your signature guaranteed: 
  
 I or we assign and transfer this Note to: 
  

  

  

 (Print or
type name, address and zip code and social security or tax ID number of assignee) 
  
 and irrevocably appoint ______________________________________________________________________________, agent to transfer this Note on the books of the Company. The agent may substitute another to act for him. 
  

									
					
	Dated:	 	 	 	 	 	Signed:	 	 
	 	 	
	 	 	 	 	 	

	 	 	 	 	 	 	 	 	(Sign exactly as name appears on the other side of this Note)

  
 Signature Guarantee:
                                        
                             
  

 B-8 

 [OPTION OF HOLDER TO ELECT PURCHASE] 
  
 If you want to elect to have this Note purchased by the Company pursuant to Section 4.14 or Section 4.15 of the Indenture,
check the appropriate box: 
  
 Section 4.14
 ̈ 
  
 Section 4.15  ̈ 
  
 If you want to elect to have only part of this Note purchased by the Company
pursuant to Section 4.14 or Section 4.15 of the Indenture, state the amount you elect to have purchased: 
  
 $                                     
  

									
					
	Dated:	 	_________________	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 	 	NOTICE: The signature on this assignment must correspond with the name as it appears upon the face of the within Note in every particular without alteration or enlargement or any change
whatsoever and be guaranteed.

  
 Signature Guarantee:
                                        
                             
  

 B-9 

 EXHIBIT C 
  

Form of Certificate To Be 
 Delivered in
Connection with 
 Transfers to Non-QIB Accredited Investors 
  
 Standard Commercial Corporation 
 2201 Miller
Road 
 P.O. Box 450 
 Wilson, North Carolina 27894-0450

  
 Ladies and Gentlemen: 
  
 In connection with our proposed purchase of 8% Senior Notes due 2012 (the
Notes”) of Standard Commercial Corporation, a North Carolina corporation (the “Company”), we confirm that: 
  
 1. We have received a copy of the Offering Memorandum (the “Offering Memorandum”), dated March 19, 2004, relating to the Notes
and such other information as we deem necessary in order to make our investment decision. We acknowledge that we have read and agreed to the matters stated in the section entitled “Transfer Restrictions” of such Offering Memorandum.

  
 2. We understand that any subsequent transfer
of the Notes is subject to certain restrictions and conditions set forth in the Indenture relating to the Notes (the “Indenture “) as described in the Offering Memorandum and the undersigned agrees to be bound by, and not to resell, pledge
or otherwise transfer the Notes except in compliance with, such restrictions and conditions and the Securities Act of 1933, as amended (the “Securities Act”), and all applicable State securities laws. 
  
 3. We understand that the offer and sale of the Notes have
not been registered under the Securities Act, and that the Notes may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons except as permitted in the following sentence. We agree, on our own behalf and
on behalf of any accounts for which we are acting as hereinafter stated, that if we should sell any Notes, we will do so only (i) to the Company or any subsidiary thereof, (ii) inside the United States in accordance with Rule 144A under the
Securities Act to a “qualified institutional buyer” (as de fined in Rule 144A promulgated under the Securities Act), (iii) inside the United States to an institutional “accredited investor” (as defined below) that, prior to such
transfer, furnishes (or has furnished on its behalf by a U.S. broker-dealer) to the Trustee (as defined in the Indenture) a signed letter containing certain representations and agreements relating to the restrictions on transfer of the Notes (the
form of which letter can be obtained from the Trustee), (iv) outside the United States in accordance with Rule 904 of Regulation S promulgated under the Securities Act to non-U.S. persons, (v) pursuant to the exemption from registration provided by
Rule 144 under the Securities Act (if available), or 

  

 C-1 

 
(vi) pursuant to an effective registration statement under the Securities Act, and we further agree to provide to any person purchasing any of the Notes from
us a notice advising such purchaser that resales of the Notes are restricted as stated herein. 
  
 4. We understand that, on any proposed resale of any Notes, we will be required to furnish to the Trustee and the Company such
certification, legal opinions and other information as the Trustee and the Company may reasonably require to confirm that the proposed sale complies with the foregoing restrictions. We further understand that the Notes purchased by us will bear a
legend to the foregoing effect. 
  
 5. We are an
institutional “accredited investor” (as defined in Rule 501(a)(1), (2), (3) or (7) of Regulation D under the Securities Act) and have such knowledge and experience in financial and business matters as to be capable of evaluating the merits
and risks of our investment in the Notes, and we and any accounts for which we are acting are each able to bear the economic risk of our or their investment, as the case may be. 
  
 6. We are acquiring the Notes purchased by us for our account or for one or more accounts (each of which is
an institutional “accredited investor”) as to each of which we exercise sole investment discretion. 
  

 C-2 

 You, the Company, the Trustee and others are entitled to rely upon this letter and are irrevocably
authorized to produce this letter or a copy hereof to any interested party in any administrative or legal proceeding or official inquiry with respect to the matters covered hereby. 
  

			
	 Very truly yours,

		
	By:	 	 
	 	 	

	 	 	 Name:

	 	 	 Title:

  

 C-3 

 EXHIBIT D 
  

Form of Certificate To Be Delivered 
 in
Connection with Transfers 
 Pursuant to Regulation S 
  
 Standard Commercial Corporation 
 2201 Miller
Road 
 P.O. Box 450 
 Wilson, North Carolina 27894-0450

  

	 	Re:	Standard Commercial Corporation (the “Company”) 8% Senior Notes due 2012 (the “Notes”) 

  
 Ladies and Gentlemen: 
  
 In connection with our proposed sale of
$                     aggregate principal amount of the Notes, we confirm that such sale has been effected pursuant to and in accordance with
Regulation S under the U.S. Securities Act of 1933, as amended (the “Securities Act”), and, accordingly, we represent that: 
  
 (1) the offer of the Notes was not made to a person in the United States; 
  
 (2) either (a) at the time the buy offer was originated, the transferee was outside the United States or we
and any person acting on our behalf reasonably believed that the transferee was outside the United States, or (b) the transaction was executed in, on or through the facilities of a designated off-shore securities market and neither we nor any person
acting on our behalf knows that the transaction has been pre-arranged with a buyer in the United States; 
  
 (3) no directed selling efforts have been made in the United States in contravention of the requirements of Rule 903(b) or Rule 904(b) of
Regulation S, as applicable; 
  
 (4) the
transaction is not part of a plan or scheme to evade the registration requirements of the Securities Act; and 
  
 (5) we have advised the transferee of the transfer restrictions applicable to the Notes. 
  

 D-1 

 You, the Company and counsel for the Company are entitled to rely upon this letter and are irrevocably
authorized to produce this letter or a copy hereof to any interested party in any administrative or legal proceedings or official inquiry with respect to the matters covered hereby. Terms used in this certificate have the meanings set forth in
Regulation S. 
  

			
	 Very truly yours,

		
	 By:
	 	 
	 	 	

	 	 	Authorized Signature

  

 D-2 

 EXHIBIT E 
  

GUARANTEE 
  
 For value received, the undersigned hereby unconditionally guarantees, as principal obligor and not only as a surety, to the Holder of this Note the cash
payments in United States dollars of principal of, premium, if any, and interest on this Note (and including Additional Interest payable thereon) in the amounts and at the times when due and interest on the overdue principal, premium, if any, and
interest, if any, of this Note, if lawful, and the payment or performance of all other obligations of the Company under the Indenture (as defined below) or the Notes, to the Holder of this Note and the Trustee, all in accordance with and subject to
the terms and limitations of this Note, Article Eleven of the Indenture and this Guarantee. This Guarantee will become effective in accordance with Article Eleven of the Indenture and its terms shall be evidenced therein. The validity and
enforceability of any Guarantee shall not be affected by the fact that it is not affixed to any particular Note. Capitalized terms used but not defined herein shall have the meanings ascribed to them in the Indenture dated as of April 2, 2004, among
Standard Commercial Corporation, a North Carolina corporation (the “Company”), Standard Commercial Tobacco Co., Inc., a North Carolina corporation, as guarantors (the “Guarantor”), and SunTrust Bank, as trustee (the
“Trustee”), as amended or supplemented (the “Indenture”). 
  
 The obligations of the undersigned to the Holders of Notes and to the Trustee pursuant to this Guarantee and the Indenture are expressly set forth in Article Eleven of the Indenture and reference is hereby made to the
Indenture for the precise terms of the Guarantee and all of the other provisions of the Indenture to which this Guarantee relates. 
  
 THIS GUARANTEE SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK WITHOUT GIVING EFFECT TO PRINCIPLES OF
CONFLICTS OF LAW TO THE EXTENT THAT THE APPLICATION OF THE LAW OF ANOTHER JURISDICTION WOULD BE REQUIRED THEREBY; PROVIDED THAT MATTERS RELATING TO THE DUE AUTHORIZATION OF THE NOTES BY THE ISSUER AND THE DUE AUTHORIZATION OF EACH GUARANTEE
BY EACH GUARANTOR WILL BE GOVERNED BY THE LAWS OF THE STATE OF NORTH CAROLINA. Each Guarantor hereby agrees to submit to the jurisdiction of the courts of the State of New York in any action or proceeding arising out of or relating to this
Guarantee. 
  
 This Guarantee is subject to release upon the terms
set forth in the Indenture. 
  

 E-1 

 IN WITNESS WHEREOF, the Guarantor has caused its Guarantee to be duly executed. 
  
 Date:
                             
  

			
	 [NAME OF GUARANTOR], as Guarantor

		
	 By:
	 	 
	 	 	

	 	 	 Name:
 Title:

		
	 By:
	 	 
	 	 	

	 	 	 Name:
 Title:

  

 E-2

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