Document:

Indenture, dated as of July 31, 1996

 Exhibit 4.4 
 EXECUTION COPY 
  

 INDENTURE 
 between 
 DOMTAR INC. 
 as Issuer 
 and 
 THE BANK OF NEW YORK 
 as Trustee 
 $125,000,000 9-1/2% Debentures Due 2016 
 Dated as of July 31, 1996 
  

 TABLE OF CONTENTS 
  

					
	 	  	 	  	Page
	ARTICLE I
	
	Definitions and Incorporation by Reference
			
	 SECTION 1.01.
	  	 Definitions
	  	1
	 SECTION 1.02.
	  	 Other Definitions
	  	29
	 SECTION 1.03.
	  	 Incorporation by Reference of Trust Indenture Act
	  	29
	 SECTION 1.04.
	  	 Rules of Construction
	  	30
	
	ARTICLE II
	
	The Securities
			
	 SECTION 2.01.
	  	 Form and Dating
	  	30
	 SECTION 2.02.
	  	 Execution and Authentication
	  	30
	 SECTION 2.03.
	  	 Registrar and Paying Agent
	  	31
	 SECTION 2.04.
	  	 Paying Agent To Hold Money in Trust
	  	32
	 SECTION 2.05.
	  	 Holder Lists
	  	33
	 SECTION 2.06.
	  	 Registration of Transfer and Exchange
	  	33
	 SECTION 2.07.
	  	 Replacement Securities
	  	35
	 SECTION 2.08.
	  	 Outstanding Securities
	  	36
	 SECTION 2.09.
	  	 Treasury Securities
	  	37
	 SECTION 2.10.
	  	 Temporary Securities
	  	37
	 SECTION 2.11.
	  	 Cancellation
	  	38
	 SECTION 2.12.
	  	 Defaulted Interest
	  	38
	 SECTION 2.13.
	  	 Record Date
	  	38
	 SECTION 2.14.
	  	 Computation of Interest
	  	39
	 SECTION 2.15.
	  	 Predecessor Securities
	  	40
	 SECTION 2.16.
	  	 CUSIP Numbers
	  	40
	
	ARTICLE III
	
	Covenants
			
	 SECTION 3.01.
	  	 Certain Covenants Suspended
	  	40
	 SECTION 3.02.
	  	 Payment of Securities
	  	41
	 SECTION 3.03.
	  	 Limitation on Indebtedness
	  	41

					
	 SECTION 3.04
	  	 Limitation on Restrictions on Distributions from Restricted Subsidiaries
	  	44
	 SECTION 3.05
	  	 Limitation on Liens
	  	46
	 SECTION 3.06.
	  	 Limitation on Restricted Payments
	  	46
	 SECTION 3.07.
	  	 Limitation on Asset Sales
	  	48
	 SECTION 3.08
	  	 Limitation on Transactions with Affiliates
	  	51
	 SECTION 3.09
	  	 Limitation on Sale and Leaseback Transactions
	  	52
	 SECTION 3.10
	  	 Designation of Restricted and Unrestricted Subsidiaries
	  	53
	 SECTION 3.11
	  	 Canadian Withholding Taxes
	  	54
	 SECTION 3.12
	  	 SEC Reports; Reports to Holders
	  	55
	 SECTION 3.13
	  	 Compliance Certificates
	  	56
	 SECTION 3.14
	  	 Notice of Defaults
	  	56
		
	ARTICLE IV	  	
		
	Redemption of the Securities	  	
			
	 SECTION 4.01
	  	 Notice of Trustee
	  	57
	 SECTION 4.02
	  	 Selection of Securities To Be Redeemed
	  	57
	 SECTION 4.03
	  	 Notice of Redemption
	  	58
	 SECTION 4.04
	  	 Effect of Notice of Redemption
	  	59
	 SECTION 4.05
	  	 Deposit of Redemption Price
	  	59
	 SECTION 4.06
	  	 Redemption for Changes in Canadian Withholding Taxes
	  	60
	
	ARTICLE V
	
	Right To Require Repurchase
			
	 SECTION 5.01
	  	 Purchase of Securities at the Option of Holders upon a Change of Control
	  	60
	 SECTION 5.02
	  	 Covenant To Comply with Securities Laws upon Purchase of Securities
	  	62

					
	
	ARTICLE VI
	
	Merger, Amalgamation, Consolidation and Sale of Assets
			
	 SECTION 6.01.
	  	 When Corporation May Merge, Amalgamate, Consolidate or Sell Assets
	  	63
	
	ARTICLE VII
	
	Defaults and Remedies
			
	 SECTION 7.01.
	  	 Events of Default
	  	65
	 SECTION 7.02.
	  	 Acceleration
	  	67
	 SECTION 7.03.
	  	 Other Remedies
	  	68
	 SECTION 7.04.
	  	 Waiver of Past Defaults
	  	69
	 SECTION 7.05.
	  	 Control by Majority
	  	69
	 SECTION 7.06.
	  	 Limitation on Suits
	  	69
	 SECTION 7.07.
	  	 Rights of Holders To Receive Payment
	  	70
	 SECTION 7.08.
	  	 Collection Suit by Trustee
	  	70
	 SECTION 7.09.
	  	 Trustee May File Proofs of Claim
	  	71
	 SECTION 7.10.
	  	 Application of Moneys Collected by Trustee
	  	71
	 SECTION 7.11.
	  	 Undertaking for Costs
	  	72
	 SECTION 7.12.
	  	 Parties May Be Restored to Former Position and Rights in Certain Circumstances
	  	73
	
	ARTICLE VIII
	
	Trustee
			
	 SECTION 8.01.
	  	 Duties of Trustee
	  	73
	 SECTION 8.02.
	  	 Rights of Trustee
	  	74
	 SECTION 8.03.
	  	 Individual Rights of Trustee
	  	75
	 SECTION 8.04.
	  	 Trustee’s Disclaimer
	  	75
	 SECTION 8.05.
	  	 Notice of Defaults
	  	76
	 SECTION 8.06.
	  	 Reports by Trustee to Holders
	  	76
	 SECTION 8.07.
	  	 Compensation and Indemnity
	  	76
	 SECTION 8.08.
	  	 Replacement of Trustee
	  	77
	 SECTION 8.09.
	  	 Successor Trustee by Merger, Etc
	  	79

					
	 SECTION 8.10.
	  	 Eligibility; Disqualification
	  	79
	 SECTION 8.11.
	  	 Preferential Collection of Claims Against the Corporation
	  	79
	
	ARTICLE IX
	
	Discharge of Indenture; Defeasance
			
	 SECTION 9.01.
	  	 Discharge of Liability on Securities; Defeasance
	  	80
	 SECTION 9.02.
	  	 Conditions to Defeasance
	  	81
	 SECTION 9.03.
	  	 Application of Trust Money
	  	82
	 SECTION 9.04.
	  	 Repayment to Corporation
	  	82
	 SECTION 9.05.
	  	 Indemnity for Government Obligations
	  	83
	 SECTION 9.06.
	  	 Reinstatement
	  	83
	
	ARTICLE X
	
	Amendments
			
	 SECTION 10.01.
	  	 Without Consent of Holders
	  	83
	 SECTION 10.02.
	  	 With Consent of Holders
	  	84
	 SECTION 10.03.
	  	 Compliance with Trust Indenture Act
	  	85
	 SECTION 10.04.
	  	 Revocation and Effect of Consents and Waivers
	  	85
	 SECTION 10.05.
	  	 Notation on or Exchange of Securities
	  	86
	 SECTION 10.06.
	  	 Trustee To Sign Amendments
	  	86
	 SECTION 10.07.
	  	 Payment for Consent
	  	87
	
	ARTICLE XI
	
	Miscellaneous
			
	 SECTION 11.01
	  	 Trust Indenture Act Controls
	  	87
	 SECTION 11.02
	  	 Notices
	  	87
	 SECTION 11.03
	  	 Communication by Holders with Other Holders
	  	89
	 SECTION 11.04
	  	 Certificate and Opinion as to Conditions Precedent
	  	89

					
	 SECTION 11.05.
	  	 Statements Required in Certificate or Opinion
	  	89
	 SECTION 11.06.
	  	 Rules by Trustee and Agents
	  	89
	 SECTION 11.07.
	  	 No Recourse Against Others
	  	89
	 SECTION 11.08.
	  	 Duplicate Originals
	  	90
	 SECTION 11.09.
	  	 Governing Law
	  	90
	 SECTION 11.10.
	  	 Successors
	  	90
	 SECTION 11.11.
	  	 Severability
	  	90
	 SECTION 11.12.
	  	 Consent to Jurisdiction and Service
	  	90
	 SECTION 11.13.
	  	 Counterpart Originals
	  	92
	 SECTION 11.14.
	  	 Benefits of Indenture
	  	92
	 EXHIBIT A
	  	 Form of 2016 Debenture
	  	A-l

 EXECUTION COPY 
 INDENTURE dated as of July 31, 1996, between DOMTAR INC., a corporation incorporated under the Canada Business Corporations Act
(the “Corporation”), as issuer (the “Issuer”) and THE BANK OF NEW YORK, as trustee (the “Trustee”). 
 Each Party hereto agrees, for the equal and ratable benefit (except as otherwise provided in this
Indenture) of the Holders of the Corporation’s 9- 1/2% Debentures Due 2016 (the “Securities”), as
follows: 
 ARTICLE I 
 Definitions and Incorporation by Reference 
 SECTION 1.01. Definitions. The terms defined in this Section (except as
herein otherwise expressly provided or unless the context otherwise requires) for all purposes of this Indenture shall have the respective meanings specified in this Section. All other terms used in this Indenture which are defined in the TIA or
which are by reference therein defined in the Securities Act shall have the meanings (except as herein otherwise expressly provided or unless the context otherwise requires) assigned to such terms in the TIA and in the Securities Act as in force at
the date of this Indenture as originally executed. 
 “Additional Assets” means (i) any Property (other than cash, cash
equivalents or securities) to be owned by the Corporation or a Restricted Subsidiary and used in a Related Business, (ii) the costs of improving or developing any Property owned by the Corporation or a Restricted Subsidiary which is used in a
Related Business and (iii) Investments in any other Person engaged primarily in a Related Business (including the acquisition from third parties of Capital Stock of such Person) as a result of which such other Person becomes a Restricted
Subsidiary or is merged or consolidated with or into the Corporation or any Restricted Subsidiary. 
 “Affiliate” means,
with respect to any specified Person, any other Person directly or indirectly controlling or controlled by or under direct or indirect common control with such specified Person. For the purposes of this definition, “control” when used with
respect to any 

 
specified Person means the power to direct the management and policies of such Person, directly or indirectly, whether through the ownership of voting
securities, by contract or otherwise; and the terms “controlling” and “controlled” have meanings correlative to the foregoing. 
 “Agent” means any Registrar, Paying Agent or agent for service of notices and demands. 
 “Asset
Sale” means, with respect to any Person, any transfer, conveyance, assignment, sale, lease or other disposition (including dispositions pursuant to any amalgamation, consolidation or merger) by such Person or any of its Restricted
Subsidiaries in any single transaction or series of transactions of (a) shares of Capital Stock or other ownership interests in another Person (including, with respect to the Corporation and its Restricted Subsidiaries, Capital Stock of
Unrestricted Subsidiaries) or (b) any other Property of such Person or any of its Restricted Subsidiaries; provided, however, that the term “Asset Sale” shall not include: (i) the sale or transfer of Property in the
ordinary course of business consistent with past practice; (ii) the liquidation of Property received in settlement of debts owing to such Person or any of its Subsidiaries as a result of foreclosure, perfection or enforcement of any Lien or
debt, which debts were owing to such Person or any of its Subsidiaries in the ordinary course of business; (iii) when used with respect to the Corporation, any asset disposition permitted pursuant to Section 6.01 which constitutes a
disposition of all or substantially all of the Corporation’s Property; (iv) the sale or transfer of any Property by such Person or any of its Restricted Subsidiaries to such Person or any of its Restricted Subsidiaries; (v) sales of
accounts receivable and related assets of the type specified in the definition of “Qualified Receivables Transaction” to a Receivables Subsidiary; (vi) transfers of accounts receivable and related assets of the type specified in the
definition of “Qualified Receivables Transaction” (or a fractional undivided interest therein) by a Receivables Subsidiary in a Qualified Receivables Transaction; (vii) a disposition in the form of a Restricted Payment permitted to be
made pursuant to Section 3.06; (viii) the sale of Temporary Cash Investments owned by such Person in the ordinary course of business; (ix) a Sale and Leaseback Transaction subject to the terms of Section 3.09; (x) the sale
by the Corporation of its St. Catharines, Ontario mill and/or its Beauharnois, Québec mill; (xi) operating leases with a term of two years 

  

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or less; (xii) the sale or transfer of Property in which the aggregate gross proceeds (including the fair market value of any Property or other assets
received and any Indebtedness assumed in connection with such sale or transfer) do not exceed $1 million for any such transaction or series of related transactions; and (xiii) any Investments by such Person. 
 “Attributable Indebtedness” means Indebtedness deemed to be Incurred in respect of a Sale and Leaseback Transaction and shall be, at the
date of determination, the present value (discounted at the actual rate of interest implicit in such transaction, compounded annually) of the total obligations of the lessee for rental payments during the remaining term of the lease included in such
Sale and Leaseback Transaction (including any period for which such lease has been extended), excluding payments for insurance, taxes, assessments, utilities, operating and labor costs and similar charges. 
 “Average Life” means, as of the date of determination, with respect to any Indebtedness or Preferred Stock, the quotient obtained by
dividing (i) the sum of the products of the numbers of years (rounded to the nearest one-twelfth of one year) from the date of determination to the dates of each successive scheduled principal payment of such Indebtedness or redemption or
similar payment with respect to such Preferred Stock multiplied by the amount of such payment by (ii) the sum of all such payments. 
 “Bankruptcy Law” means the Bankruptcy and Insolvency Act (Canada), the Companies Creditors Arrangement Act (Canada) , the Winding-up Act (Canada) or any other Canadian federal or provincial law
or the law of any other jurisdiction relating to bankruptcy, insolvency, winding-up, liquidation, reorganization or relief of debtors. 
 “Board of Directors” means the board of directors or any authorized committee thereof responsible for the management of the business and affairs of the Corporation. 
 “Board Resolution” means a copy of a resolution certified by the Secretary or an Assistant Secretary of the Corporation to have been
duly adopted by the Board of Directors, to be in full force and effect on the date of such certification and delivered to the Trustee. 
  

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 “Business Day” means each Monday, Tuesday, Wednesday, Thursday and Friday that is not a
day on which banking institutions in the City of New York or the City of Montreal are authorized or obligated by law, regulation or executive order to close. 
 “Capital Stock” means, with respect to any Person, any and all shares or other equivalents (however designated) of corporate stock, partnership interests or any other participation, right, warrants,
options or other interest in the nature of an equity interest in such Person, but excluding any debt security convertible or exchangeable into such equity interest. 
 “Capital Stock Sale Proceeds” means the aggregate Net Cash Proceeds received by the Corporation from the issue or sale (other than to a Subsidiary of the Corporation or an employee stock ownership
plan or trust established by the Corporation or any Subsidiary of the Corporation, unless and only to the extent that, after taking into account any related Incurrence of Indebtedness by the Corporation or any Subsidiary of the Corporation, the
issue or sale to an employee stock ownership plan or trust results in and has the same financial impact to the Corporation as if made to an independent third party) by the Corporation of any class of its Capital Stock (other than Disqualified Stock)
after the Issue Date. 
 “Capitalized Lease Obligations” means Indebtedness represented by obligations under a lease that is
required to be capitalized for financial reporting purposes in accordance with GAAP and the amount of such Indebtedness shall be the capitalized amount of such obligations determined in accordance with GAAP. 
 “Change of Control” means such time as (i) (A) a “person” or “group” (within the meaning of Sections 13(d) and 14(d)
of the Exchange Act), other than the Current Equity Holders and their respective Affiliates that are other agencies of the Crown in right of Québec or corporations directly or indirectly wholly owned by the Government of Québec,
becomes the “beneficial owner” (as defined in Rule 13d-3 and 13d-5 under the Exchange Act) of more than (x) 35% of the total voting rights attaching to the then outstanding Voting Capital Stock of the Corporation and (y) the
total voting rights attached to the then outstanding Voting Capital Stock of the Corporation beneficially owned by the Current Equity Holders and their 

  

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respective Affiliates that are other agencies of the Crown in right of Québec or corporations directly or indirectly wholly owned by the Government of
Québec, and (B) the Current Equity Holders and their respective Affiliates that are other agencies of the Crown in right of Québec or corporations directly or indirectly wholly owned by the Government of Québec do not have
the right or the ability by voting right, contract or otherwise to elect or designate for election a majority of the Board of Directors; (ii) during any period of two consecutive calendar years, individuals who at the beginning of such period
constituted the Board of Directors (together with any new directors whose election by the Board of Directors or whose nomination for election by the Corporation’s shareholders was approved by a vote of at least two-thirds of the directors then
still in office who either were directors at the beginning of such period or whose election or nomination for election was previously so approved or approved by the Current Equity Holders and their respective Affiliates that are other agencies of
the Crown in right of Québec or corporations directly or indirectly wholly owned by the Government of Québec at a time when they have the right or ability referred to in clause (i)(B) of this definition) cease for any reason to
constitute a majority of the directors then in office; or (iii)(A) the Corporation amalgamates or consolidates with or merges into any other Person or sells, conveys, transfers or leases all or substantially all of its assets to any Person or
(B) any Person amalgamates or consolidates with or merges into the Corporation, in either event pursuant to a transaction in which any Voting Capital Stock of the Corporation outstanding immediately prior to the effectiveness thereof is
reclassified or changed into or exchanged for cash, securities or other property, unless, in the case of (A) or (B), as applicable, pursuant to such transaction such securities are changed into or exchanged for, in addition to any other
consideration, securities of the surviving corporation that represent immediately after such transaction, at least a majority of the aggregate voting power of the Voting Capital Stock of the surviving corporation. 
 “Change of Control Triggering Event” means the occurrence of both a Change of Control and a Rating Decline. 
 “Comparable Treasury Issue” means the United States Treasury security selected by an Independent Investment Banker as having a maturity
comparable to the remaining term of the Securities that would be utilized, at 

  

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the time of selection and in accordance with customary financial practice, in pricing new issues of corporate debt securities of comparable maturity to the
remaining term of such Securities. 
 “Comparable Treasury Price” means, with respect to any redemption date, (i) the
average of the bid and asked prices for the Comparable Treasury Issue (expressed in each case as a percentage of its principal amount) on the third business day preceding such redemption date, as set forth in the daily statistical release (or any
successor release) published by the Federal Reserve Bank of New York and designated “Composite 3:30 p.m. Quotations for U.S. Government Securities” or (ii) if such release (or any successor release) is not published or does not
contain such prices on such business day, (A) the average of the Reference Treasury Dealer Quotations for such redemption date, after excluding the highest and lowest of such Reference Treasury Dealer Quotations, or (B) if the Trustee
obtains fewer than three such Reference Treasury Dealer Quotations, the average of all such Quotations. 
 “Consolidated Current
Liabilities” as of the date of determination means the aggregate amount of liabilities of the Corporation and its consolidated Restricted Subsidiaries which may properly be classified as current liabilities, on a consolidated basis, after
eliminating (i) all intercompany items between the Corporation and any Restricted Subsidiary and (ii) all current maturities of long-term Indebtedness, all as determined in accordance with GAAP consistently applied. 
 “Consolidated Fixed Charge Coverage Ratio” means, as of the date of the transaction giving rise to the need to calculate the
Consolidated Fixed Charge Coverage Ratio (the “Transaction Date”), the ratio of (i) the aggregate amount of EBITDA of the Corporation and its consolidated Restricted Subsidiaries for the four full fiscal quarters immediately prior to
the Transaction Date to (ii) the aggregate Consolidated Interest Expense of the Corporation and its Restricted Subsidiaries that is anticipated to accrue during a period consisting of the fiscal quarter in which the Transaction Date occurs and
the three fiscal quarters immediately subsequent thereto (based upon the pro forma amount and maturity of, and interest payments in respect of, Indebtedness of the Corporation and its Restricted Subsidiaries expected by the Corporation to be
outstanding on the Transaction Date, taking into account in such pro 

  

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forma calculation the receipt and application of the proceeds of any Indebtedness Incurred on such date), assuming for the purposes of this measurement the
continuation of market interest rates prevailing on the Transaction Date and base interest rates in respect of floating interest rate obligations equal to the base interest rates on such obligations in effect as of the Transaction Date;
provided that if the Corporation or any of its Restricted Subsidiaries is party to any Interest Rate Agreement which would have the effect of changing the interest rate on any Indebtedness of the Corporation or any of its Restricted
Subsidiaries for such four-quarter period (or a portion thereof), the resulting rate shall be used for such four quarter period or portion thereof; provided further that any Consolidated Interest Expense with respect to Indebtedness
Incurred or retired by the Corporation or any of its Restricted Subsidiaries during the fiscal quarter in which the Transaction Date occurs shall be calculated as if such Indebtedness was so Incurred or retired on the first day of the fiscal quarter
in which the Transaction Date occurs. In addition, (x) if since the beginning of the four full fiscal quarter period preceding the Transaction Date, the Corporation or any of its Restricted Subsidiaries shall have engaged in any Asset Sale,
EBITDA for such period shall be reduced by an amount equal to the EBITDA (if positive), or increased by an amount equal to the EBITDA (if negative), directly attributable to the assets which are the subject of such Asset Sale for such period
calculated on a pro forma basis as if such Asset Sale and any related retirement of Indebtedness had occurred on the first day of such period or (y) if since the beginning of the four fiscal quarter period preceding the Transaction Date, the
Corporation or any of its Restricted Subsidiaries shall have acquired any material assets (including a Restricted Subsidiary), or if the transaction giving rise to the need to calculate the Consolidated Fixed Charge Coverage Ratio involves the
acquisition of any material assets or a Restricted Subsidiary, EBITDA shall be calculated on a pro forma basis as if the acquisition of such assets (or such Restricted Subsidiary), had occurred on the first day of such four fiscal quarter period.

 “Consolidated Interest Expense” means, for any Person (or in the case of the Corporation, the Corporation and its
Restricted Subsidiaries), for any period, the amount of interest in respect of Indebtedness (including amortization of original issue discount, fees payable in connection with financings, including commitment, 

  

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availability and similar fees, and amortization of debt issuance costs, non-cash interest payments on any Indebtedness and the interest portion of any
deferred payment obligation and after taking into account the effect of elections made under, and the net costs (excluding realized gains or losses in connection with Exchange Rate Agreements) associated with, any Hedging Obligation, however
denominated, with respect to such Indebtedness), the amount of dividends in respect of Disqualified Stock of such Person, the amount of Preferred Stock dividends in respect of all Preferred Stock of Subsidiaries of such Person held by Persons other
than such Person or a Subsidiary of such Person, commissions, discounts and other fees and charges owed with respect to letters of credit and bankers’ acceptance financing, the amount of interest on Indebtedness Incurred pursuant to clause
(iii) of the definition of Indebtedness, the interest component of rentals in respect of any Capitalized Lease Obligation or Sale and Leaseback Transaction paid, accrued or scheduled to be paid or accrued by such Person during such period, but
excluding any gains or losses in respect of Indebtedness denominated in foreign currency as a result of fluctuations in exchange rates and any losses on repayment of any Indebtedness, determined on a consolidated basis in accordance with GAAP and
the cash contributions to any employee stock ownership plan or similar trust to the extent such contributions are used by such plan or trust to pay interest or fees to any Person (other than the Corporation) in connection with Indebtedness Incurred
by such plan or trust. For purposes of this definition, interest on a Capitalized Lease Obligation or a Sale and Leaseback Transaction shall be deemed to accrue at an interest rate reasonably determined by such Person to be the rate of interest
implicit in such Capitalized Lease Obligation or Sale and Leaseback Transaction in accordance with GAAP consistently applied. 
 “Consolidated Net Assets” as of any date of determination, means the total amount of assets (less accumulated depreciation and amortization, allowances for doubtful receivables, other applicable reserves and other properly
deductible items) which would appear on a consolidated balance sheet of the Corporation and its consolidated Restricted Subsidiaries, determined on a Consolidated basis in accordance with GAAP, and after giving effect to purchase accounting and
after deducting therefrom Consolidated Current Liabilities and, to the extent otherwise included, the amounts of: (i) minority interests in consolidated Subsidiaries held by Persons other than the 

  

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Corporation or a Restricted Subsidiary; (ii) any revaluation or other write-up in book value of assets subsequent to the Issue Date as a result of a
change in the method of valuation in accordance with GAAP consistently applied; (iii) treasury stock; (iv) cash set apart and held in a sinking or other analogous fund established for the purpose of redemption or other retirement of
Capital Stock to the extent such obligation is not reflected in Consolidated Current Liabilities; and (v) Investments in and assets of Unrestricted Subsidiaries. 
 “Consolidated Net Income” of a Person means for any period, the net income (loss) of such Person and its Subsidiaries; provided, however, that there shall not be included in such
Consolidated Net Income (i) with respect to the Corporation, any net income (loss) of any Person if such Person is not a Restricted Subsidiary, except that (a) subject to the limitations contained in clause (iv) below, the
Corporation’s equity in the net income of any such Person for such period shall be included in such Consolidated Net Income up to the aggregate amount of cash actually distributed by such Person during such period to the Corporation or a
Restricted Subsidiary as a dividend or other distribution (subject, in the case of a dividend or other distribution to a Restricted Subsidiary, to the limitations contained in clause (iii) below) and (b) the Corporation’s equity in a
net loss of any such Person (other than an Unrestricted Subsidiary) for such period shall be included in determining such Consolidated Net Income, (ii) any net income (loss) of any Person acquired by such Person or a Subsidiary of such Person
in a pooling of interests transaction for any period prior to the date of such acquisition (although such net income (loss) shall be taken into account for purposes of the definition of “Consolidated Fixed Charge Coverage Ratio” and the
pro forma calculations provided for therein), (iii) with respect to the Corporation, any net income (loss) of any Restricted Subsidiary if such Subsidiary is subject to restrictions, directly or indirectly, on the payment of dividends or the
making of distributions by such Restricted Subsidiary, directly or indirectly, to the Corporation, except that (A) subject to the limitations contained in (iv) below, the Corporation’s equity in the net income of any such Restricted
Subsidiary for such period shall be included in such Consolidated Net Income up to the aggregate amount of cash that could have been distributed by such Restricted Subsidiary during such period to the Corporation or another Restricted Subsidiary as
a dividend (subject, in the case of 

  

 9 

 
a dividend to another Restricted Subsidiary, to the limitation contained in this clause) and (B) the Corporation’s equity in a net loss of any such
Restricted Subsidiary for such period shall be included in determining such Consolidated Net Income, (iv) any gain (or loss) realized upon the sale or other disposition of any Property of such Person or its consolidated Subsidiaries (including
pursuant to any Sale and Leaseback Transaction) which is not sold or otherwise disposed of in the ordinary course of business and any gain (or loss) realized upon the sale or other disposition of any Capital Stock of any Person, (v) any
extraordinary gain or loss (or any unusual or nonrecurring items or any losses incurred, in each case in respect of the purchase by the Corporation of any of its Indebtedness) and (vi) the cumulative effect of a change in accounting principles.

 “Consolidated Net Tangible Assets” as of any date of determination, means the total amount of assets (less accumulated
depreciation and amortization, allowances for doubtful receivables, other applicable reserves and other properly deductible items) which would appear on a consolidated balance sheet of the Corporation and its consolidated Restricted Subsidiaries,
determined on a consolidated basis in accordance with GAAP, and after giving effect to purchase accounting and after deducting therefrom Consolidated Current Liabilities and, to the extent otherwise included, the amounts of: (i) minority
interests in consolidated Subsidiaries held by Persons other than the Corporation or a Restricted Subsidiary; (ii) excess of cost over fair value of assets of businesses acquired, as determined in good faith by the Board of Directors;
(iii) any revaluation or other write-up in book value of assets subsequent to the Issue Date as a result of a change in the method of valuation in accordance with GAAP consistently applied; (iv) unamortized debt discount and expenses and
other unamortized deferred charges, goodwill, patents, trademarks, service marks, trade names, copyrights, licenses, organization or developmental expenses and other intangible items; (v) treasury stock; (vi) cash set apart and held in a
sinking or other analogous fund established for the purpose of redemption or other retirement of Capital Stock to the extent such obligation is not reflected in Consolidated Current Liabilities; and (vii) Investments in and assets of
Unrestricted Subsidiaries. 
 “Consolidated Net Worth” means the total of the amounts shown on the balance sheet of the
Corporation and 

  

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the Restricted Subsidiaries, determined on a consolidated basis, as of the end of the most recent fiscal quarter of the Corporation ended at least 45 days
prior to the taking of any action for the purpose of which the determination is being made, as (i) the stated capital with respect to the Capital Stock of the Corporation plus (ii) contributed capital and surplus relating to such Capital
Stock plus (iii) any retained earnings or earned surplus less (A) any accumulated deficit and (B) any amounts attributable to Disqualified Stock. 
 “Consolidation” means the consolidation of the accounts of each of the Restricted Subsidiaries with those of the Corporation in accordance with GAAP consistently applied; provided,
however, that “Consolidation” will not include consolidation of the accounts of any Unrestricted Subsidiary, but the interest of the Corporation or any Restricted Subsidiary in an Unrestricted Subsidiary will be accounted for as an
investment. The term “Consolidated” has a correlative meaning. 
 “Corporate Trust Office” means the office of the
Trustee located in New York, New York, at which at any particular time its corporate services business shall be principally administered, which office at the date of execution of this Indenture is located at 101 Barclay Street, New York, New York
10286, except that for purposes of the presentation of Securities for payment or registration of transfer or exchange, such term means the office or agency of the Trustee at which at any particular time the corporate agency business of the Trustee
shall be conducted, which office at the date of execution of this Indenture is located at 101 Barclay Street, New York, New York 10286. 
 “Credit Agreement” means the $450,000,000 Credit Agreement among the Corporation, as borrower, and Domtar Industries Inc., Domtar Gypsum Inc., Norkraft Quévillon Inc., La Compagnie J.B. Rolland & Fils, as
Material Subsidiaries, and two Canadian banks, as Administrative Agents, and certain Canadian banks, as Lenders, as in effect on the date of the Indenture. 
 “Current Equity Holders” means Société générale de financement du Québec (“SGF”), Caisse de dépot et placement du Québec (“Caisse”)
or any other agency of the Crown in right of Québec. 
  

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 “Default” means any event which is, or after notice or passage of time or both would be,
an Event of Default. 
 “Depositary” means The Depository Trust Company, its nominees, and their respective successors.

 “Disqualified Stock” of a Person means Redeemable Stock of such Person as to which the maturity, mandatory redemption,
conversion or exchange or redemption at the option of the holder thereof occurs, or may occur, on or prior to the first anniversary of the Stated Maturity of the Securities. 
 “EBITDA” means, for any Person, for any period, an amount equal to (A) the sum of (i) Consolidated Net Income for such period,
plus (ii) the provision for taxes for such period based on income or profits to the extent such income or profits were included in computing Consolidated Net Income and any provision for taxes utilized in computing net loss under clause
(i) hereof, plus (iii) Consolidated Interest Expense for such period, plus (iv) depreciation for such period on a consolidated basis, plus (v) amortization of intangibles for such period on a consolidated basis, plus
(vi) any other non-cash items reducing Consolidated Net Income for such period, minus (B) all non-cash items increasing Consolidated Net Income for such period, all for such Person and its Subsidiaries determined in accordance with GAAP
consistently applied, except that with respect to the Corporation each of the foregoing items shall be determined on a consolidated basis with respect to the Corporation and its Restricted Subsidiaries only. 
 “Event of Default” has the meaning set forth under Section 7.01. 
 “Exchange Act” means the Securities Exchange Act of 1934, as amended. 
 “Exchange Rate Agreement” means, for any Person, any foreign exchange contract, currency swap agreement or other similar agreement as to
which such Person is a party or a beneficiary, designed to provide protection against fluctuations in currency exchange rates, incurred in the ordinary course of business. 
 “Existing Lines of Business” means the lines of business of the Corporation and its Subsidiaries described 

  

 12 

 
in the 1995 Annual Information Form under “Item 3—Narrative Description of the Business” and any businesses directly related or ancillary
thereto. 
 “GAAP” means accounting principles generally accepted in Canada as in effect on the Issue Date, unless stated
otherwise. 
 “Guarantee” means with respect to any Person, without duplication, any obligation, contingent or otherwise
(other than an endorsement for collection or deposit in the ordinary course of business), directly or indirectly guaranteeing any Indebtedness of any Person and any obligation, direct or indirect, contingent or otherwise, (i) to purchase or pay
(or advance or supply funds for the purchase or payment of) such Indebtedness or (ii) entered into for the purpose of assuring in any other manner the obligee of such indebtedness of the payment thereof or to protect such obligee against loss
in respect to such Indebtedness (in whole or in part). The term “Guarantee” used as a verb has a corresponding meaning. 
 “Hedging Obligation” means, for any Person, any obligation of such Person pursuant to any Interest Rate Agreement, Exchange Rate Agreement, commodity swap agreement, commodity option, forward agreement or any other similar
agreement or arrangement. 
 “Holder” means the person in whose name a Security is registered on the register maintained by
the Registrar as provided in Section 2.03. 
 “Incur” means, with respect to any Indebtedness or other obligation of
any Person, to create, issue, incur (by merger, conversion, exchange or otherwise), extend, assume, Guarantee or become liable in respect of such indebtedness or other obligation or the recording, as required pursuant to GAAP or otherwise, of any
such Indebtedness or obligation on the balance sheet of such Person (and “ Incurrence”, “Incurred”, “Incurrable” and “Incurring” shall have meanings correlative to the foregoing); provided,
however. that a change in GAAP that results in an obligation of such Person that exists at such time, and is not theretofore classified as Indebtedness, becoming Indebtedness shall not be deemed an Incurrence of such Indebtedness;
provided further that, solely for purposes of determining compliance with Section 3.03, amortization of debt discount shall not be deemed to be the Incurrence of Indebtedness; provided that 

  

 13 

 
in the case of Indebtedness sold at a discount, the amount of such Indebtedness Incurred shall at all times be the aggregate principal amount at Stated
Maturity. 
 “Indebtedness” means (without duplication), with respect to any Person, any indebtedness, secured or unsecured,
contingent or otherwise, which is for borrowed money (whether or not the recourse of the lender is to the whole of the assets of such Person or only to a portion thereof), or evidenced by bonds, notes, debentures or similar instruments or
representing the balance deferred and unpaid of the purchase price of any Property (excluding any balances that constitute subscriber advance payments and deposits, accounts payable or trade payables, and other accrued liabilities arising in the
ordinary course of business) if and to the extent any of the foregoing indebtedness would appear as a liability upon a balance sheet of such Person prepared in accordance with GAAP (and, in the case of indebtedness any portion of which is required
to be presented as an equity element upon a balance sheet of such Person prepared in accordance with GAAP, the amount of such equity element; provided that the amount of Indebtedness in respect of any such indebtedness shall not exceed the aggregate
principal amount then outstanding of such indebtedness), and shall also include, to the extent not otherwise included (i) any Capitalized Lease Obligations, (ii) Indebtedness of other Persons secured by a Lien to which the Property owned
or held by such Person is subject, whether or not the obligation or obligations secured thereby shall have been assumed (the amount of such Indebtedness being deemed to be the lesser of the value of such Property or the amount of the Indebtedness so
secured), (iii) Guarantees of Indebtedness of other Persons, (iv) any Disqualified Stock (for purposes of this definition, the amount of Indebtedness in respect of Disqualified Stock shall be the amount of all obligations with respect to
the redemption, repayment or other repurchase of such Disqualified Stock), (v) any Attributable Indebtedness, (vi) all obligations of such Person in respect of letters of credit, banker’s acceptances or other similar instruments or
credit transactions (including reimbursement obligations with respect thereto), other than obligations with respect to letters of credit or similar instruments securing obligations (other than obligations described in this definition) entered into
in the ordinary course of business of such Person to the extent such letters of credit are not drawn upon or, if and to the extent drawn upon, such drawing is reimbursed no later than the third Business Day following 

  

 14 

 
receipt by such Person of a demand for reimbursement following payment on the letter of credit, (vii) in the case of the Corporation, Preferred Stock of
its Restricted Subsidiaries and (viii) to the extent not otherwise included in clauses (i) through (vii) of this paragraph, any payment obligations of any such Person at the time of determination under any Hedging Obligation. For
purposes of this definition, the maximum fixed repurchase price of any Disqualified Stock that does not have a fixed repurchase price shall be calculated in accordance with the terms of such Disqualified Stock as if such Disqualified Stock were
repurchased on any date on which Indebtedness shall be required to be determined pursuant to the Indenture; provided, however, that if such Disqualified Stock is not then permitted to be repurchased, the repurchase price shall be the
book value of such Disqualified Stock. The amount of Indebtedness of any Person at any date shall be the outstanding balance at such date of all unconditional obligations as described above and the maximum liability of any contingent obligations in
respect thereof at such date. For purposes of determining compliance with Section 3.03, in the event that an item of Indebtedness meets the criteria of more than one of the types of Indebtedness described in the above clauses or more than one
of the clauses of the definition of “Permitted Indebtedness”, the Corporation, in its sole discretion, shall not be required to include the amount and type of such Indebtedness in more than one of such clauses and the amount of
Indebtedness, other than Disqualified Stock, issued at a price that is less than the principal amount thereof shall be equal at the relevant time to the amount of the liability in respect thereof determined in accordance with GAAP. 
 “Indenture” means this Indenture, as amended, supplemented or modified from time to time. 
 “Independent Appraiser” means an investment banking firm of national standing with experience in underwriting debt and/or equity
securities for operators of Related Businesses or any third party appraiser of national standing; provided, however, that such firm or appraiser is not an Affiliate of the Corporation. 
 “Independent Investment Banker” means one of the Reference Treasury Dealers appointed by the Trustee at the direction of the
Corporation. 
  

 15 

 “Interest Rate Agreement” means, for any Person, any interest rate swap agreement,
interest rate cap agreement, interest rate collar agreement or other similar agreement designed to provide protection against fluctuations in interest rates. 
 “Internal Revenue Code” means the United States Internal Revenue Code of 1986, as amended. 
 “Investment” by any Person means any direct or indirect loan, advance or other extension of credit or capital contribution (by means of transfers of cash or other Property to others or payments for Property or services for
the account or use of others, or otherwise) to, or Incurrence of a Guarantee of any obligation of, or purchase or acquisition of Capital Stock, bonds, notes, debentures or other securities or evidence of Indebtedness issued by, any other Person.

 “Investment Grade Rating” means a rating equal to or higher than Baa3 (or the equivalent) and BBB- (or the equivalent) by
Moody’s Investors Service, Inc. (or any successor to the rating agency business thereof) and Standard & Poor’s Rating Group (or any successor to the rating agency business thereof), respectively, or the equivalent thereof by any
other Rating Agencies contemplated by the definition thereof. 
 “Investment Grade Status” shall be deemed to have been
reached on the date that the rating assigned to the Securities by all Rating Agencies is an Investment Grade Rating. 
 “Issue
Date” means the date on which the Securities are initially issued. 
 “Lien” means with respect to any Property of
any Person, any mortgage or deed of trust, pledge, hypothecation, assignment, deposit arrangement, security interest, lien, charge, encumbrance, preference, priority, or other security agreement or preferential arrangement of any kind or nature
whatsoever on or with respect to such Property (including any capitalized Lease Obligation, conditional sale or other title retention agreement having substantially the same economic effect as any of the foregoing or any Sale and Leaseback
Transaction). 
  

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 “Net Available Cash” from an Asset Sale means cash payments received therefrom
(including any cash payments received by way of deferred payment of principal pursuant to a note or installment receivable or otherwise, but only as and when received, but excluding any other consideration received in the form of assumption by the
acquiring Person of Indebtedness or other obligations relating to such Properties or assets or received in any other non-cash form) in each case net of, without duplication, (i) all legal, title and recording tax expenses, commissions and other
fees and expenses incurred, and all Federal, state, provincial, foreign and local taxes required to be accrued as a liability under GAAP, as a consequence of such Asset Sale, (ii) all payments made on any Indebtedness which is secured by any
assets subject to such Asset Sale, in accordance with the terms of any agreement relating to such Indebtedness or of any Lien upon or other security agreement of any kind with respect to such assets, or which must by its terms, or in order to obtain
a necessary consent to such Asset Sale, or by applicable law be repaid out of the proceeds from such Asset Sale, (iii) all distributions and other payments required to be made to minority interest holders in Subsidiaries or joint ventures as a
result of such Asset Sale and all amounts segregated from the general funds of the Corporation for payment to such minority interest holders, and (iv) all amounts provided by the Corporation or its Subsidiaries as a reserve, in accordance with
GAAP, against any liabilities associated with such Asset Sale and retained by the Corporation or a Subsidiary thereof, after such Asset Sale (including in respect of environmental, pension, other post-employment liabilities and liabilities in
respect of indemnification claims associated with such Asset Sale). 
 “Net Cash Proceeds” with respect to any issuance or
sale of Capital Stock, means the cash proceeds of such issuance or sale, net of attorneys’ fees, accountants’ fees, underwriters’ or placement agents’ fees, discounts or commissions and brokerage, consultant and other fees
actually incurred in connection with such issuance or sale and net of taxes paid or payable as a result thereof. 
 “Norkraft” means Norkraft Quévillon Inc., a corporation organized under the laws of Canada. 
 “Notes” means the Corporation’s 8-3/4% Notes due 2006. 
  

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 “Officer” means any of the Treasurer, Assistant Treasurer, any Senior Vice President or
Vice President, the Chief Financial Officer or the Chief Executive Officer. 
 “Officers’ Certificate” means a
certificate signed by two Officers at least one of whom shall be the principal executive officer or principal financial officer of the Corporation. 
 “Opinion of Counsel” means a written opinion from legal counsel who is acceptable to the Trustee. The counsel may be counsel to the Corporation or the Trustee. 
 “Permitted Liens” means (i) Liens on the Property of the Corporation or any Restricted Subsidiary existing on the Issue Date;
(ii) Liens on the Property of the Corporation or any Restricted Subsidiary to secure any extension, renewal, refinancing, replacement or refunding (or successive extensions, renewals, refinancings, replacements or refundings), in whole or in
part, of any Indebtedness secured by Liens referred to in any of clauses (i), (vi), (ix) or (xii) of this definition; provided, however, that any such Lien will be limited to all or part of the same Property subject to the
original Lien (plus improvements on or additions to such Property) or substitute Property of the Corporation or the Restricted Subsidiary, as applicable, the fair market value of which is determined in good faith by the Board of Directors (as
evidenced by a Board Resolution) and, in the case of Property with a fair market value of US $10 million or more, an Independent Appraiser to be substantially the same as, or less than, the fair market value of the Property substituted and the
aggregate principal amount of Indebtedness that is secured by such Lien will not be increased to an amount greater than the sum of (A) the outstanding principal amount, or, if greater, the committed amount, of the Indebtedness described under
clauses (i), (vi), (ix) or (xii) at the time the original Lien became a Permitted Lien under this Indenture and (B) an amount necessary to pay any premiums, fees and other expenses Incurred by the Corporation in connection with such
refinancing, refunding, extension, renewal or replacement; (iii) Liens for taxes, assessments or governmental charges or levies on the Property of the Corporation or any Restricted Subsidiary if the same shall not at the time be delinquent or
thereafter can be paid without penalty, or are being contested in good faith and by appropriate proceedings or Liens for the excess of the amount of any past due taxes for which a final 

  

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assessment has not been received over the amount of such taxes as estimated and paid; (iv) Liens imposed by law, such as carriers’,
warehousemen’s and mechanics’ Liens and other similar Liens on the Property of the Corporation or any Restricted Subsidiary arising in the ordinary course of business which secure payment of obligations not more than 60 days past due or
are being contested in good faith and by appropriate proceedings; (v) Liens on the Property of the Corporation or any Restricted Subsidiary Incurred in the ordinary course of business to secure performance of obligations with respect to
statutory or regulatory requirements, performance or return-of-money bonds, surety bonds or other obligations of a like nature and Incurred in a manner consistent with industry practice; (vi) Liens on Property at the time the Corporation or any
Restricted Subsidiary acquired such Property, including any acquisition by means of a merger or consolidation with or into the Corporation or such Restricted Subsidiary; provided, however, that such Lien shall not have been Incurred in
anticipation of such transaction or series of related transactions pursuant to which such Property was acquired by the Corporation or any Restricted Subsidiary; provided further, however, that such Lien may not extend to any
other Property (other than improvements on or additions to such Property) owned by the Corporation or any other Restricted Subsidiary; (vii) other Liens on the Property of the Corporation or any Restricted Subsidiary incidental to the conduct
of their respective businesses or the ownership of their respective Properties which were not created in connection with the Incurrence of Indebtedness or the obtaining of advances or credit and which do not in the aggregate materially detract from
the value of their respective Properties or materially impair the use thereof in the operation of their respective businesses; (viii) pledges or deposits by the Corporation or any Restricted Subsidiary under workmen’s compensation laws,
unemployment insurance laws or similar legislation, or good faith deposits in connection with bids, tenders, contracts (other than for the payment of Indebtedness) or leases to which the Corporation or any Restricted Subsidiary is a party, or
deposits to secure public or statutory obligations of the Corporation or any Restricted Subsidiary, or deposits for the payment of rent, in each case incurred in the ordinary course of business; (ix) Liens on the Property of a Person at the
time such Person becomes a Restricted Subsidiary; provided, however, that any such Lien may not extend to any other Property (other than improvements on or additions to such Property) of the Corporation or any other 
  

 19 

 
Restricted Subsidiary which is not a direct Subsidiary of such Person; provided further, however, that any such Lien shall not have been
incurred in anticipation of or in connection with the transaction or series of related transactions pursuant to which such Person became a Restricted Subsidiary; (x) reservations, limitations, provisos and conditions expressed in any original
grants from the Crown which do not materially adversely impair the use of the subject property by the Corporation or a Subsidiary as such property is used as of the Issue Date; (xi) Liens securing Purchase Money Obligations incurred in
compliance with the provisions of this Indenture, limited to the property acquired in the transaction in which the Purchase Money Obligation was incurred; (xii) Liens securing Indebtedness (and other related obligations) under the Credit
Agreement; (xiii) Liens on the assets of a Receivables Subsidiary in a Qualified Receivables Transaction; (xiv) servitudes, licenses, easements, rights-of-way and rights in the nature of easements (including servitudes, licenses,
easements, rights-of-way and rights in the nature of easements for sidewalks, public ways, sewers, drains, gas, steam and water mains or electric light and power, or telephone and telegraph conduits, poles, wires and cable) which, in each case, do
not in the aggregate materially adversely impair or interfere with the use of the subject Property by the Corporation or any of its Subsidiaries or in respect to which the Corporation or any of its Subsidiaries has made satisfactory arrangements for
relocation so that such use will not in the aggregate be materially and adversely impaired; (xv) zoning and building by-laws and ordinances and municipal by-laws and regulations, which, in each case, do not materially adversely impair or
interfere with the use of the subject Property by the Corporation or any of its Subsidiaries; or (xvi) the Lien in respect of any judgment rendered which is being contested diligently and in good faith by appropriate proceedings by the
Corporation or any of its Subsidiaries and which does not have a material adverse effect on the ability of the Corporation and its Subsidiaries to operate the business or operations of the Corporation or its Subsidiaries. 
 “Permitted Refinancing Indebtedness” means any renewals, extensions, substitutions, refinancings or replacements of any Indebtedness
including any successive extensions, renewals, substitutions, refinancings or replacements, so long as (i) the aggregate amount of Indebtedness represented thereby is not increased by such 

  

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renewal, extension, substitution, refinancing or replacement (other than to finance fees and expenses, including any premium and defeasance costs),
(ii) the Average Life of such Indebtedness is equal to or greater than the Average Life of the Indebtedness being refinanced, (iii) the Stated Maturity of such Indebtedness is no earlier than the Stated Maturity of the Indebtedness being
refinanced and (iv) the new Indebtedness shall not be senior in right of payment to the Indebtedness that is being extended, renewed, substituted, refinanced or replaced; provided that Permitted Refinancing Indebtedness shall not include
(a) Indebtedness of a Restricted Subsidiary that refinances Indebtedness of the Corporation or (b) Indebtedness of the Corporation or a Restricted Subsidiary that refinances Indebtedness of an Unrestricted Subsidiary. 
 “Person” means any individual, corporation, company (including any limited liability company), partnership, joint venture, trust,
unincorporated organization or government or any agency or political subdivision thereof. 
 “Preferred Stock” means any
Capital Stock of a Person, however designated, which entitles the holder thereof to a preference with respect to dividends, distributions or liquidation proceeds of such Person over the holders of other Capital Stock issued by such Person.

 “principal” of a Security means the principal of such Security plus the premium, if any, payable on such Security which
is due or overdue or is to become due at the relevant time. 
 “Property” means, with respect to any Person, any interest of
such Person in any kind of property or asset, whether real, personal or mixed, or tangible or intangible, including, without limitation, Capital Stock in any other Person (but excluding Capital Stock or other securities issued by such Person).

 “Purchase Money Obligations” of any Person means any obligations of such Person or any of its subsidiaries to any seller
or any other Person incurred or assumed in connection with the purchase of real or personal property to be used or related to the business of such Person or any of its subsidiaries. 
  

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 “Qualified Letter of Credit” means an irrevocable letter of credit or similar assurance
of payment issued by a bank or trust company which has capital, surplus and undivided profits aggregating in excess of $50,000,000 (or the foreign currency equivalent thereof) and has outstanding debt which is rated “A” (or such similar
equivalent rating) or higher by at least one “nationally recognized statistical rating organization” (as defined in Rule 436 under the Securities Act). 
 “Qualified Receivables Transaction” means any transaction or series of transactions that may be entered into by the Corporation or any of its Subsidiaries pursuant to which the Corporation or any of
its Subsidiaries may sell, convey or otherwise transfer to (i) a Receivables Subsidiary (in the case of a transfer by the Corporation or any of its Subsidiaries) and (ii) any other Person (in the case of a transfer by a Receivables
Subsidiary), or may grant a security interest in, any accounts receivable (whether now existing or arising in the future) of the Corporation or any of its Subsidiaries, and any assets related thereto including all collateral securing such accounts
receivable, all contracts and all guarantees or other obligations in respect of such accounts receivable, proceeds of such accounts receivable and other assets which, in each case, are customarily and regularly transferred, or in respect of which
security interests are customarily granted, in connection with asset securitization transactions involving accounts receivable. 
 “Rating Agencies” mean Standard & Poor’s Rating Group, a division of McGraw Hill, Inc. (“S&P’s”), and Moody’s Investor Services, Inc. (“Moody’s”) or any successor to the
respective rating agency businesses thereof; provided, that in the event that either but not both of S&P’s or Moody’s or any successor to the respective rating agency businesses thereof shall cease to exist as a rating agency
business, then the other shall be the sole Rating Agency for purposes of this definition; provided, further, that in the event that both S&P’s or any successor to the rating agency business thereof and Moody’s or any
successor to the rating agency business thereof shall cease to exist as rating agency businesses, then “Rating Agencies” shall mean two “nationally recognized statistical rating organizations” (as defined in Rule 436 under the
Securities Act). 
  

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 “Rating Date” means the date which is 90 days prior to the earlier of (i) a Change
of Control and (ii) public notice of the occurrence of a Change of Control or of the intention of the Corporation to effect a Change of Control. 
 “Rating Decline” means the occurrence of the following on, or within 90 days after, the date of public notice of the occurrence of a Change of Control or of the intention by the Corporation to effect
a Change of Control (which period shall be extended so long as the rating of the Securities is under publicly announced consideration for possible downgrade by any of the Rating Agencies): (a) in the event the Securities are rated by any Rating
Agency on the Rating Date as an Investment Grade Rating, the rating of the Securities by the Rating Agencies shall be below an Investment Grade Rating, or (b) in the event the Securities are rated below an Investment Grade Rating by the Rating
Agencies on the Rating Date, the rating of the Securities by any Rating Agency shall be decreased by one or more gradations (including gradations within rating categories as well as between rating categories). 
 “Receivables Subsidiary” means a Wholly Owned Subsidiary of the Corporation which engages in no activities other than in connection with
the financing of accounts receivable and which is designated by or pursuant to the authority of the Board of Directors (as provided below) as a Receivables Subsidiary (a) no portion of the Indebtedness or any other obligations (contingent or
otherwise) of which (i) is guaranteed by the Corporation or any Subsidiary of the Corporation (excluding guarantees of obligations (other than the principal of, and interest on, Indebtedness) pursuant to representations, warranties, covenants
and indemnities entered into in the ordinary course of business in connection with a Qualified Receivables Transaction), (ii) is recourse to or obligates the Corporation or any Subsidiary of the Corporation in any manner other than pursuant to
representations, warranties, covenants and indemnities entered into in connection with a Qualified Receivables Transaction or (iii) subjects any Property of the Corporation or any Subsidiary of the Corporation, directly or indirectly,
contingently or otherwise, to the satisfaction thereof, other than pursuant to the representations, warranties, covenants and indemnities entered into in the ordinary course of business in connection with a Qualified Receivables Transaction and
other than in respect of the related pledge of the financed 

  

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accounts receivable and (b) with which neither the Corporation nor any Subsidiary of the Corporation has any obligation to maintain or preserve such
Subsidiary’s financial condition (other than restrictions on dividends and distributions by such Subsidiary) or cause such Subsidiary to achieve certain levels of operating results. Any such designation shall be evidenced to the Trustee by
filing with the Trustee a certified copy of the Board Resolution giving effect to or authorizing such designation and an Officers’ Certificate certifying that such designation complied with the foregoing conditions. 
 “Redeemable Stock” means, with respect to any Person, any Capital Stock that by its terms (or by the terms of any security into which it
is convertible or for which it is exchangeable) or otherwise (i) matures or is mandatorily redeemable pursuant to a sinking fund obligation or otherwise, (ii) is redeemable at the option of the holder thereof, in whole or in part, or
(iii) is convertible or exchangeable for Indebtedness. 
 “Redemption Date” means, when used with respect to any
Security or part thereof to be redeemed hereunder, the date fixed for redemption of such Security pursuant to the terms of the Security and this Indenture. 
 “Redemption Price” means, when used with respect to any Security or part thereof to be redeemed hereunder, the price fixed for redemption of such Security pursuant to the terms of the Security and
this Indenture, plus accrued and unpaid interest thereon, if any, to the Redemption Date (subject to the right of Holders of record on the relevant Record Date to receive interest due on the relevant Interest Payment Date). 
 “Reference Treasury Dealer” means Salomon Brothers Inc and Goldman, Sachs & Co., and their respective successors;
provided, however, that if any of the foregoing shall cease to be a primary U.S. Government securities dealer in New York City (a “Primary Treasury Dealer”) the Corporation shall substitute therefor another Primary Treasury
Dealer. 
 “Reference Treasury Dealer Quotations” means, with respect to each Reference Treasury Dealer and any redemption
date, the average, as provided to the Trustee by the Corporation, of the bid and asked prices for the Comparable Treasury Issue (expressed in each case as a percentage of 

  

 24 

 
its principal amount) quoted in writing to the Trustee by such Reference Treasury Dealer at 5:00 p.m. on the third business day preceding such redemption
date. 
 “Related Business” means any business, ancillary or complementary to the businesses of the Corporation and the
Restricted Subsidiaries on the Issue Date. 
 “Restricted Payment” means (i) any dividend or distribution (whether made
in cash, Property or securities) declared or paid on or with respect to any shares of Capital Stock of the Corporation or Capital Stock of any Restricted Subsidiary except for any dividend or distribution which is made solely to the Corporation or a
Restricted Subsidiary (and, if such Restricted Subsidiary is not a Wholly Owned Subsidiary, to the other shareholders of such Restricted Subsidiary on a pro rata basis) or dividends or distributions payable solely in shares of Capital Stock (other
than Disqualified Stock) of the Corporation; (ii) a payment made by the Corporation or any Restricted Subsidiary to purchase, redeem, acquire or retire any Capital Stock of the Corporation or Capital Stock of any Affiliate of the Corporation
(other than a Restricted Subsidiary) or any warrants, rights or options to directly or indirectly purchase or acquire any such Capital Stock or any securities exchangeable for or convertible into any such Capital Stock; or (iii) a payment made
by the Corporation or any Restricted Subsidiary to redeem, repurchase, defease or otherwise acquire or retire for value, prior to any scheduled maturity, scheduled sinking fund or mandatory redemption payment (other than the purchase, repurchase, or
other acquisition of any Indebtedness subordinate in right of payment to the Securities purchased in anticipation of satisfying a sinking fund obligation, principal installment or final maturity, in each case due within one year of the date of
acquisition), Indebtedness of the Corporation which is subordinate (whether pursuant to its terms or by operation of law) in right of payment to the Securities and was scheduled to mature after the maturity of the Securities. 
 “Restricted Subsidiary” means (i) any Subsidiary of the Corporation, unless such Subsidiary is an Unrestricted Subsidiary or shall
have been designated as an Unrestricted Subsidiary as permitted pursuant to Section 3.10 and (ii) an Unrestricted Subsidiary which is redesignated as a Restricted Subsidiary as permitted pursuant to Section 3.10. 
  

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 “Sale and Leaseback Transaction” means, with respect to any Person, any direct or
indirect arrangement pursuant to which Property is sold or transferred by such Person or a Subsidiary of such Person and is thereafter leased back from the purchaser or transferee thereof by such Person or one of its Subsidiaries, 
 “SEC” means the Securities and Exchange Commission and any government agency succeeding to its functions. 
 “Secured Indebtedness” means any Indebtedness of the Corporation secured by a Lien. 
 “Securities Act” means the Securities Act of 1933, as amended. 
 “Special Record Date” for the payment of any defaulted interest means a date fixed by the Trustee pursuant to Section 2.12. 

“Stated Maturity” means, with respect to any Indebtedness or security, the date specified in the agreement pursuant to which such
Indebtedness was created or in such security as the fixed date on which the payment of principal of such security is due and payable, including pursuant to any mandatory redemption provision providing for partial or full mandatory redemption or any
sinking fund (but excluding, in each case, any provision providing for the repurchase of such security at the option of the holder thereof upon the happening of any contingency beyond the control of the issuer unless such contingency has occurred).

 “Subordinated Obligation” means any Indebtedness of the Corporation (whether outstanding on the Issue Date or thereafter
Incurred) which is subordinate or junior in right of payment to the Securities pursuant to an agreement to that effect or by operation of law. 
 “Subsidiary” of any specified Person means any corporation, partnership, joint venture, association or other business entity, whether now existing or hereafter organized or acquired, (i) in the case of a corporation,
of which more than 50% of the total voting power of the Capital Stock entitled (without regard to the occurrence of any contingency) to vote in the election of directors, officers or trustees thereof is held by such first-named Person or any of its
Subsidiaries; or (ii) in the case of a partnership, joint venture, association or other business entity 

  

 26 

 
(other than a corporation) with respect to which such first-named Person or any of its Subsidiaries has the power to direct or cause the direction of the
management and policies of such entity by contract or otherwise if in accordance with GAAP such entity is consolidated with the first-named Person for financial statement purposes. 
 “Temporary Cash Investments” means any of the following: (i) any investment in direct obligations of the United States of America
or any agency thereof or Canada or any agency thereof or obligations guaranteed by the United States of America or any agency thereof or Canada or any agency thereof, (ii) investments in time deposit accounts, certificates of deposit,
money-market deposits, bankers acceptances and obligations maturing within 180 days of the date of acquisition thereof issued by a bank or trust company which is organized under the laws of the United States of America, any state thereof, Canada or
any country recognized by the United States and Canada, and which bank or trust company has, or the obligation of which bank or trust company is guaranteed by a bank or trust company which has, capital, surplus and undivided profits aggregating in
excess of $50,000,000 (or the foreign currency equivalent thereof) and has outstanding debt which is rated “A” (or such similar equivalent rating) or higher by at least one “nationally recognized statistical rating organization”
(as defined in Rule 436 under the Securities Act) or by Dominion Bond Rating Service or Canadian Bond Rating Service or any money-market fund sponsored by a registered broker dealer or mutual fund distributor, (iii) repurchase obligations with
a term of not more than 30 days for underlying securities of the types described in clause (i) above entered into with a bank meeting the qualifications described in clause (ii) above, (iv) investments in commercial paper, maturing
not more than 90 days after the date of acquisition, issued by a corporation (other than an Affiliate of the Corporation) organized and in existence under the laws of the United States of America, Canada or any foreign country recognized by the
United States of America and Canada with a rating at the time as of which any investment therein is made of “P-1” (or higher) according to Moody’s or “A-1” (or higher) according to S&P’s or an equivalent rating by
Dominion Bond Rating Service or Canadian Bond Rating Service, and (v) investments in securities with maturities of six months or less from the date of acquisition issued or fully guaranteed by any state, commonwealth or territory of the United
States of America, or by any political subdivision or taxing authority thereof, and rated at least “A” by S&P’s or “A” by Moody’s. 
  

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 “TIA” means the Trust Indenture Act of 1939 (15 U.S. Code § 77aaa-77bbbb), as in
effect on the date of this Indenture (except as otherwise provided in Section 10.03) and, to the extent required by law, as amended. 
 “Treasury Rate” means, with respect to any redemption date and with respect to the Securities, the rate per annum equal to the semiannual equivalent yield to maturity of the Comparable Treasury Issue, assuming a price for
such Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to the Comparable Treasury Price for such redemption date. 
 “Trustee” means the party named as such above until a successor replaces it pursuant to this Indenture and thereafter means the successor or such successor’s successor. 
 “Trust Officer” means any officer in the Corporate Trust Department of the Trustee or any other officer of the Trustee assigned by the
Trustee to administer this Indenture. 
 “Unrestricted Subsidiary” means (a) any Subsidiary of the Corporation in
existence on the Issue Date that is not a Restricted Subsidiary; (b) any Subsidiary of an Unrestricted Subsidiary; and (c) any Subsidiary of the Corporation which is designated after the Issue Date as an Unrestricted Subsidiary as permitted
pursuant to Section 3.10 and not thereafter redesignated as a Restricted Subsidiary as permitted pursuant thereto. 
 “U.S.
Government Obligations” means direct obligations (or certificates representing an ownership interest in such obligations) of the United States of America (including any agency or instrumentality thereof) for the payment of which the full
faith and credit of the United States of America is pledged and which are not callable or redeemable at the issuer’s option. 
 “Voting Capital Stock” means Capital Stock in a corporation or other Person with voting power under ordinary circumstances entitling the holders thereof to elect the board of directors or other governing body of such
corporation or Person. 
  

 28 

 “Wholly Owned Subsidiary” means a Restricted Subsidiary of the Corporation all the
Capital Stock of which (other than directors’ qualifying shares) is owned by the Corporation and/or one or more other Wholly Owned Subsidiaries. 
 SECTION 1.02. Other Definitions. 
  

			
	 Term
	  	Defined in
Section
	 “Additional Amounts”
	  	3.11
	 “Affiliate Transaction”
	  	3.08
	 “Allocable Excess Proceeds”
	  	3.07
	 “Change of Control Offer”
	  	5.01(a)
	 “Change of Control Payment”
	  	5.01(a)
	 “Change of Control Payment Date”
	  	5.01(b)(2)
	 “Custodian”
	  	7.01
	 “Deficiency”
	  	3.07
	 “Event of Default”
	  	7.01
	 “Excess Proceeds”
	  	3.07
	 “Excluded Holder”
	  	3.11
	 “Fifth Anniversary”
	  	3.07
	 “Global Security”
	  	2.02
	 “Paying Agent”
	  	2.03
	 “Permitted Indebtedness”
	  	3.03(b)
	 “Prepayment Offer”
	  	3.07
	 “Prepayment Offer Notice”
	  	3.07
	 “Purchase Date”
	  	3.07
	 “Purchase Price”
	  	3.07
	 “Registrar”
	  	2.03
	 “Security Register”
	  	2.03
	 “Taxes”
	  	3.11
	 “Transaction Date”
	  	1.01
	 “Unoffered Excess Proceeds”
	  	3.07

 SECTION 1.03. Incorporation by Reference of Trust Indenture Act. Whenever this Indenture
refers to a provision of the TIA, the provision is incorporated by reference in and made a part of this Indenture. 
  

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 The following TIA terms used in this Indenture have the following meanings: 
 “indenture securities” means the Securities;  
 “indenture security holder” means a Holder;  
 “indenture to be qualified” means this indenture; 
 “indenture trustee” or “institutional trustee” means the Trustee; and 
 “obligor” on the Securities means the Corporation and any other obligor on the indenture securities. 
 SECTION 1.04. Rules of Construction. Unless the context otherwise requires: (i) an accounting term not otherwise defined has the meaning
assigned to it in accordance with GAAP as in effect on the date of this Indenture; and (ii) words in the singular include the plural, and in the plural include the singular. 
 ARTICLE II 
 The Securities 
 SECTION 2.01. Form and Dating. The Securities and the Trustee’s certificate of authentication thereof shall be substantially in the form of
Exhibit A hereto. The Securities may have notations, legends or endorsements approved as to form by the Corporation and required by law, stock exchange rule, agreements to which the Corporation is subject or usage. Each Security shall be dated the
date of its authentication. The Securities shall be issuable only in registered form and only in denominations of $1,000 and integral multiples thereof. 
 The terms and provisions contained in the Securities shall constitute, and are hereby expressly made, a part of this Indenture and the Corporation and the Trustee, by their execution and delivery of this Indenture,
expressly agree to such terms and provisions and to be bound thereby. 
 SECTION 2.02. Execution and Authentication. Two Officers of
the Corporation shall sign the Securities for the Corporation by manual or facsimile signature. The Corporation’s seal shall be reproduced on the Securities and may be in facsimile form. 
  

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 If an Officer whose signature is on a Security no longer holds that office at the time a Security is
authenticated, the Security shall nevertheless be valid. 
 A Security shall not be valid until authenticated by the manual signature of an
authorized signatory of the Trustee. The signature shall be conclusive evidence that the Security has been authenticated under this Indenture. The form of Trustee’s certificate of authentication to be borne by the Securities shall be
substantially as set forth in Exhibit A hereto. 
 The Trustee shall, upon a written order of the Corporation signed by two Officers of the
Corporation, authenticate Securities for original issue up to the aggregate principal amount stated in the Securities in the form of one or more Global Securities (herein defined as the “Global Security” or “Global Securities”),
which (i) shall represent, and shall be denominated in an amount equal to the aggregate principal amount of, the outstanding Securities, (ii) shall be registered in the name of the Depositary or its nominee, (iii) shall be delivered
by the Trustee to the Depositary or pursuant to the Depositary’s instruction and (iv) shall bear a legend substantially to the following effect: “Unless and until it is exchanged in whole or in part for the individual Securities
represented hereby, this Global Security may not be transferred except as a whole by the Depositary to a nominee of the Depositary or by a nominee of the Depositary to the Depositary or by a Depositary or any such nominee to a successor Depositary
or a nominee of successor Depositary.” The aggregate principal amount of Securities outstanding at any time may not exceed such amount except as provided in section 2.07. 
 The Trustee may appoint an authenticating agent acceptable to the Corporation to authenticate Securities. An authenticating agent may authenticate
Securities whenever the Trustee may do so. Each reference in this Indenture to authentication by the Trustee includes authentication by such agent. An authenticating agent has the same rights as an Agent to deal with the Corporation or an Affiliate
of the Corporation. 
 SECTION 2.03. Registrar and Paying Agent. The Corporation shall maintain in the Borough of Manhattan, the

  

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City of New York, an office or agency where Securities may be presented for registration of transfer or for exchange (“Registrar”), an office or
agency where Securities may be presented for payment (“Paying Agent”) and an office or agency where notices and demands to or upon the Corporation in respect of the Securities and this Indenture may be served. The Registrar shall keep a
register of the Securities and of their transfer and exchange (the register kept being herein sometimes referred to as the “Security Register”). The Corporation may appoint one or more co-registrars and one or more additional paying
agents. The term “Registrar” includes any co-registrar and the term “Paying Agent” includes any additional paying agent. The Corporation may change any Paying Agent or Registrar without prior notice to any Holder. No such
appointment or change will relieve the Corporation of its obligation to maintain an office or agency in the Borough of Manhattan, the City of New York for such purposes. The Corporation shall notify the Trustee in writing of the name and address of
any Agent not a party to this Indenture. If the Corporation fails to appoint or maintain another entity as Registrar or Paying Agent, the Trustee shall act as such. The Corporation may act as Paying Agent or Registrar. 
 The Corporation initially appoints the Trustee to act as the Registrar and Paying Agent and agent for service of notices and demands in connection with
the Securities and this Indenture. The initial co-registrar shall be Montréal Trust Company with its principal office in the City of Montréal, Québec, Canada. 
 SECTION 2.04. Paying Agent To Hold Money in Trust. The Corporation shall require each Paying Agent other than the Trustee to agree in writing that
the Paying Agent will hold in trust for the benefit of Holders or the Trustee all money held by the Paying Agent for the payment of principal of, or premium, if any, on the Securities, and will notify the Trustee of any default by the Corporation in
making any such payment. While any such default continues, the Trustee may require a Paying Agent to pay all money held by it to the Trustee. The Corporation at any time may require a Paying Agent to pay all money held by it to the Trustee. Upon
payment over to the Trustee, the Paying Agent (if other than the Corporation) shall have no further liability for the money delivered to the Trustee. If the Corporation acts as Paying Agent, it shall segregate and hold in a separate trust fund for
the benefit of the Holders all money held by it as Paying Agent. Upon any bankruptcy or reorganization proceedings relating to the Corporation, the Trustee shall serve as Paying Agent for the Securities. 
  

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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 Holders. If the Trustee is not the Registrar, the Corporation shall furnish to the Trustee on or before each interest payment date for the Securities and at such other
times as the Trustee may request in writing a list in such form and as of such date as the Trustee may reasonably require of the names and addresses of Holders. 
 SECTION 2.06. Registration of Transfer and Exchange. When Securities are presented to the Registrar with a request to register their transfer or to exchange them for an equal principal amount of securities of
other authorized denominations, the Registrar shall register the transfer or make the exchange if its requirements for such transaction are met; provided that a Security surrendered for registration of transfer or exchange shall be duly endorsed by,
or accompanied by a written instrument of transfer in form satisfactory to the Registrar duly executed by, the Holder thereof or his attorney duly authorized in writing. To permit registrations of transfers and exchanges, the Corporation shall issue
Securities as Securities are presented for transfer or exchange and the Trustee shall authenticate such Securities at the Registrar’s request. No service charge shall be made for any registration of transfer or exchange, but the Corporation may
require payment of a sum sufficient to cover any tax or other governmental charge that may be imposed in connection with registration of transfer or exchange of Securities other than exchanges not involving any transfer pursuant to section 2.10,
5.01(c) or 10.05. 
 Prior to due presentment to the Trustee for registration of the transfer of any Security, the Trustee, any Agent and the
Corporation may deem and treat the Person in whose name any Security is registered in the Securities Register as the absolute owner of such Security for the purpose of receiving payment of principal of, or premium, if any, and, subject to
Section 2.12, interest on such Security and for all other purposes whatsoever, whether or not such Security is overdue, and neither the Trustee, any Agent nor the Corporation shall be affected by notice to the contrary. 
  

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 A Global Security may be transferred, in whole but not in part and in the manner provided in this
Section, only to a nominee of the Depositary for such Global Security, or by a nominee of the Depositary to the Depositary, or by a Depositary or any such nominee to a successor Depositary for such Global Security selected or approved by the
Corporation, or to a nominee of such successor Depositary. 
 If at any time the Depositary for the Global Security or Global Securities
notifies the Corporation that it is unwilling or unable to continue as depositary for such Global Security or Global Securities or if at any time the Depositary for the Global Security or Global Securities shall no longer be eligible or in good
standing under the Exchange Act, or other applicable statute or regulation, to continue as depositary for such Global Security or Global Securities the Corporation shall appoint a successor Depositary with respect to such Global Security or Global
Securities. If a successor Depositary for such Global Security or Global Securities is not appointed by the Corporation within 90 days after the Corporation receives such notice or becomes aware of such ineligibility, the Corporation will execute,
and the Trustee, upon receipt of a written order for the authentication and delivery of individual Securities in exchange for such Global Security or Global Securities, will authenticate and make available for delivery individual Securities in
definitive form in an aggregate principal amount equal to the outstanding principal amount of the Global Security or Global Securities in exchange for such Global Security or Global Securities. 
 The Corporation may at any time and in its sole discretion determine that the Securities shall no longer be represented by such Global Security or Global
Securities. Also, if an Event of Default has occurred and is continuing, the Securities shall no longer be represented by such Global Security or Global Securities. In any such event the Corporation will execute, and the Trustee, upon receipt of a
written order for the authentication and delivery of individual Securities in exchange in whole or in part for such Global Security or Global Securities, will authenticate and make available for delivery individual Securities in definitive form in
an aggregate principal amount equal to the outstanding principal amount of such Global Security or Global Securities in exchange for such Global Security or Global Securities. 
  

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 In any exchange provided for in any of the preceding two paragraphs, the Corporation will execute and the
Trustee will authenticate and make available for delivery individual Securities in definitive registered form in authorized denominations. Upon the exchange of a Global Security for individual Securities, such Global Security shall be cancelled by
the Trustee. Securities issued in exchange for a Global Security pursuant to this Section shall be registered in such names and in such authorized denominations as the Depositary for such Global Security shall instruct the Trustee. The Trustee shall
make available for delivery such Securities to the persons in whose names such Securities are so registered. 
 None of the Corporation, the
Trustee, any Paying Agent or the Registrar will have any responsibility or liability for any aspect of the records relating to or payments made on account of beneficial ownership interests of a Global Security or for maintaining, supervising or
reviewing any records relating to such beneficial ownership interests. 
 The Depositary has advised the Corporation that, subject to the
above, it will take any action permitted to be taken by a Holder (including the presentation of Securities for exchange as described above) only at the direction of one or more participants to whose account interests in the Global Security or Global
Securities are credited and only in respect of such portion of the aggregate principal amount of Securities as to which such participant or participants has or have given such direction. 
 SECTION 2.07. Replacement Securities. If (a) any mutilated Security is surrendered to the Trustee or (b) the Corporation and the Trustee
receive evidence to their satisfaction of the destruction, loss or theft of any Security, and, in each case, there is delivered to the Corporation and the Trustee such security or indemnity, as required, referred to in the next succeeding sentence,
then, in the absence of notice to the Corporation or the Trustee that such Security has been acquired by a bona fide purchaser, the Corporation shall issue and the Trustee, upon the written order of the Corporation signed by two Officers of the
Corporation, shall authenticate and deliver a replacement Security of like tenor and principal amount if the Trustee’s requirements for replacement of Securities are met. If required by the Trustee or the Corporation, an 

  

 35 

 
indemnity bond or other security must be supplied by the Holder that is sufficient in the judgment of the Trustee and the Corporation to protect the
Corporation, the Trustee, any Agent and authenticating agent from any loss that any of them may suffer if a Security is replaced. Upon the issuance of any replacement Securities under this Section, the Corporation may require the payment of a sum
sufficient to pay all documentary, stamp or similar issue or transfer taxes or other governmental charges that may be imposed in relation thereto and any other expenses (including the fees and expenses of the Trustee) incurred in replacing a
Security. 
 In case any such mutilated, destroyed, lost or stolen Security has become or is to become due and payable, or is about to be
repurchased or redeemed by the Corporation pursuant to Section 3.07, Article V or Article IV hereof, the Corporation in its discretion may, instead of issuing a new Security, pay or repurchase or redeem such Security, as the case may be.

 Every replacement Security is an additional obligation of the Corporation and shall be entitled to all of the benefits of this Indenture
equally and proportionately with all other Securities duly issued hereunder. 
 The provisions of this Section are exclusive and shall
preclude (to the extent lawful) all other rights and remedies with respect to the replacement or payment of mutilated, destroyed, lost or stolen Securities. 
 SECTION 2.08. Outstanding Securities. The Securities outstanding at any time are all the Securities theretofore authenticated and delivered under this Indenture except: 
 (i) Securities theretofore cancelled by the Trustee or delivered to the Trustee for cancellation; 
 (ii) Securities, or portions thereof, for whose payment or redemption money in the necessary amount has been theretofore deposited with
the Trustee or any Paying Agent (other than the Corporation) in trust or set aside and segregated in trust by the Corporation (if the Corporation shall act as its own Paying Agent) for the Holders of such Securities, provided that, if such
Securities are to be redeemed, notice of such 

  

 36 

 
redemption has been duly given pursuant to this Indenture or provisions therefor satisfactory to the Trustee have been made; 
 (iii) Securities, except to the extent provided in Article IX, with respect to which the Company has effected defeasance and/or covenant
defeasance as provided in Article IX; and 
 (iv) Securities which have been paid pursuant to Section 2.07 or in exchange
for or in lieu of which other Securities have been authenticated and delivered pursuant to this Indenture, other than any such Securities in respect of which there shall have been presented to the Trustee proof satisfactory to it that such
Securities are held by a bona fide purchaser in whose hands such Securities are valid obligations of the Corporation. 
 SECTION 2.09.
Treasury Securities. In determining whether the Holders of the required principal amount of Securities have concurred in any direction, waiver or consent, Securities owned by the Issuer or any other obligor, or by an Affiliate of the Issuer
or such other obligor, shall be considered as though they are not outstanding, except that for the purposes of determining whether the Trustee shall be protected in relying on any such direction, waiver or consent, only Securities which the Trustee
knows are so owned shall be so disregarded. Securities so owned which have been pledged in good faith may be regarded as outstanding if the pledgee establishes to the satisfaction of the Trustee the pledgee’s right so to act with respect to
such Securities and that the pledgee is not the Issuer or any other obligor, or any Affiliate of the Issuer or such other obligor. 
 SECTION
2.10. Temporary Securities. Until definitive Securities are ready for delivery, the Corporation may prepare and execute and the Trustee shall authenticate temporary Securities upon a written order of the Corporation signed by two Officers of
the Corporation. Temporary Securities shall be substantially in the form of definitive Securities but may have variations that the Issuer considers appropriate for temporary Securities. 
 If temporary Securities are issued, the Corporation will cause definitive Securities to be prepared without unreasonable delay. After the preparation of

  

 37 

 
definitive Securities, the temporary securities shall be exchangeable for such definitive Securities upon surrender of such temporary Securities at the
Corporate Trust Office, without charge to the Holder. Upon surrender for exchange of any one or more temporary Securities, the Corporation shall execute and the Trustee shall authenticate and make available for delivery in exchange therefor a like
aggregate principal amount of definitive Securities having the same date as such temporary Securities. Until so exchanged, temporary Securities shall in all respects be entitled to the same benefits under this Indenture as definitive Securities.

 SECTION 2.11. Cancellation. The Corporation at any time may deliver Securities to the Trustee for cancellation. The Registrar and
Paying Agent shall forward to the Trustee any Securities surrendered to them for registration of transfer, exchange, payment or repurchase. The Trustee shall cancel all Securities surrendered for registration of transfer, exchange, payment,
repurchase, replacement or cancellation. The Corporation may not issue new Securities to replace Securities that it has paid or that have been delivered to the Trustee for cancellation, except that a new Security in principal amount equal to the
unredeemed portion of a Security redeemed in part pursuant to Article IV hereof will be issued in the name of the Holder thereof upon cancellation of the Security redeemed in part and otherwise as provided herein. 
 SECTION 2.12. Defaulted Interest. If and to the extent the Corporation fails to make or duly provide for a payment of interest on the Securities,
it shall pay such interest, plus interest payable on the defaulted interest pursuant to Section 3.02 to the persons who are Holders at the close of business on a special record date (the “Special Record Date”), which the Trustee shall
establish for such payment, notice of which shall be delivered by the Trustee to each Holder, not less than 10 days prior to the Special Record Date. 
 SECTION 2.13. Record Date. If the Corporation shall solicit from the Holders any request, demand, authorization, direction, notice, vote, consent, waiver or other act, the Corporation may, at its option, by or
pursuant to a Board Resolution, fix in advance a record date for the determination of such Holders entitled to give such request, demand, authorization, direction, notice, vote, consent, waiver or other act, but the Corporation shall have 

  

 38 

 
no obligation to do so. Notwithstanding Trust Indenture Act Section 316(c), any such record date shall be the record date specified in or pursuant to
such Board Resolution, which shall be a date not more than 30 days prior to the first solicitation of Holders generally in connection therewith and no later than the date such solicitation is completed. 
 If such a record date is fixed, such request, demand, authorization, direction, notice, vote, consent, waiver or other act may be given before or after
such record date, but only the Holders of record at the close of business on such record date shall be deemed to be Holders for the purposes of determining whether Holders of the requisite proportion of Securities then outstanding have authorized or
agreed or consented to such request, demand, authorization, direction, notice, vote, consent, waiver or other act, and for this purpose the Securities then outstanding shall be computed as of such record date; provided that no such request,
demand, authorization, direction, notice, vote, consent, waiver or other act by the Holders on such record date shall be deemed effective unless it shall become effective pursuant to the provisions of this Indenture not later than eleven months
after the record date. 
 Any request, demand, authorization, direction, notice, vote, consent, waiver or other act by the Holder of any
Security shall bind every future Holder of the same Security or the Holder of every Security issued upon the registration of transfer thereof or in exchange therefor or in lieu thereof, in respect of anything done, suffered or omitted to be done by
the Trustee, any Paying Agent or the Corporation in reliance thereon, whether or not notation of such action is made upon such Security. 
 SECTION 2.14. Computation of Interest. Interest on the Securities shall be computed on the basis of a 360-day year of twelve 30-day months. For disclosure purposes under the Interest Act (Canada), whenever in the Indenture or
the Securities interest at a specified rate is to be calculated on the basis of a period less than a calendar year, the yearly rate of interest to which such rate is equivalent is such rate multiplied by the actual number of days in the relevant
calendar year and divided by the number of days in such period. 
  

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 SECTION 2.15. Predecessor Securities. All Securities issued upon any registration of transfer or
exchange of Securities or in replacement of a lost, destroyed or stolen Security pursuant to Section 2.07 shall evidence the same debt, and be entitled to the same benefits under this Indenture, as the predecessor Security or Securities
surrendered upon such registration of transfer or exchange or lost, destroyed or stolen, as the case may be. 
 SECTION 2.16. CUSIP
Numbers. The Corporation in issuing the Securities may use “CUSIP” numbers and, if it does so, the Trustee shall use the CUSIP numbers in notices of redemption or exchange as a convenience to Holders; provided that any such
notice may state that no representation is made as to the correctness or accuracy of the CUSIP numbers printed in the notice or on the Securities and that reliance may be placed only on the other identification numbers printed on the Securities. The
Corporation will promptly notify the Trustee of any change in the CUSIP numbers. 
 ARTICLE III  
 Covenants 
 SECTION 3.01. Certain
Covenants Suspended. The covenants set forth in this Article III and in clause (vi) of Section 6.01(a) will be applicable to the Corporation and its Restricted Subsidiaries unless and until the Corporation reaches Investment Grade
Status, except that upon reaching Investment Grade Status the Corporation and its Restricted Subsidiaries will remain subject to the provisions of this Indenture described in Section 3.02, Section 3.05, Section 3.09, Section 3.10
(except for clause (i) of Section 3.l0(b)), Section 3.11, Section 3.12, Section 3.13 and Section 3.14 (collectively, the “Non-Suspended Covenants”). 
 After the Corporation reaches Investment Grade Status, and notwithstanding that the rating assigned to the Corporation may later cease to be an
Investment Grade Rating by either of the Rating Agencies or both, the Corporation and its Restricted Subsidiaries will be released from their obligations to comply with the covenants set forth in this Article III and in clause (vi) of
Section 6.01(a) other than the Non-Suspended Covenants. 
  

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 SECTION 3.02. Payment of Securities. The Corporation shall pay the principal of, premium (if any)
and interest on the Securities in immediately available funds on the dates and in the manner provided in the Securities and in this Indenture. Principal, premium (if any) and interest shall be considered paid on the date due if the Trustee or Paying
Agent (other than the Corporation or an Affiliate of the Corporation) holds on that date money designated for and sufficient to pay all principal, premium (if any) and interest then due. 
 The Corporation shall pay interest on overdue principal and premium (if any) on the Securities at the rate then borne by the Securities; it shall pay
interest on overdue installments of interest at the same rate to the extent legally permitted. 
 SECTION 3.03. Limitation on
Indebtedness. (a) The Corporation shall not, and shall not permit any Restricted Subsidiary to, directly or indirectly, Incur any Indebtedness unless, after giving effect to the Incurrence on a pro forma basis no Default or Event of Default
would occur as a consequence of such Incurrence or be continuing following such Incurrence and either (i) after giving effect to the Incurrence of such Indebtedness and the receipt and application of the proceeds thereof, the Corporation’s
Consolidated Fixed Charge Coverage Ratio would have been greater than 2.0 or (ii) such Indebtedness is Permitted Indebtedness. 
 (b)
“Permitted Indebtedness” is defined to include any and all of the following: 
 (i) Indebtedness in an aggregate principal amount on
the date of Incurrence which, when added to all other Indebtedness Incurred pursuant to this clause (i) and then outstanding, will not exceed the greater of (x) the maximum aggregate principal amount of Indebtedness that could be Incurred
pursuant to the Credit Agreement by the Corporation on the Issue Date assuming all conditions were satisfied and (y) the sum of (A) 60% of the book value of the inventory of the Corporation and its Restricted Subsidiaries and (B) 80% of
the book value of the accounts receivables of the Corporation and its Restricted Subsidiaries; 
  

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 (ii) Indebtedness of the Corporation owing to and held by a Restricted Subsidiary and Indebtedness of a
Restricted Subsidiary owing to and held by the Corporation or any other Restricted Subsidiary; provided, however, that any subsequent issuance or transfer of any Capital Stock or any other event which results in any such Restricted
Subsidiary ceasing to be a Restricted Subsidiary or any subsequent transfer of any such Indebtedness (except to the Corporation or a Restricted Subsidiary) will be deemed, in each case, to constitute the Incurrence of such Indebtedness by the issuer
thereof on the date of such issuance, transfer or event; 
 (iii) Indebtedness represented by the securities and the Notes, any Indebtedness
(other than the Indebtedness described or referenced in clauses (i) or (ii) above (including in respect of the Credit Agreement)) outstanding on the Issue Date and any Permitted Refinancing Indebtedness Incurred in respect of any
Indebtedness described in this clause (iii), clause (i) of paragraph (a) above or clause (v) of this paragraph (b); 
 (iv) (A)
Indebtedness of a Restricted Subsidiary Incurred and outstanding on or prior to the date on which such Restricted Subsidiary was acquired by the Corporation (other than Indebtedness Incurred as consideration in, in contemplation of, or to provide
all or any portion of the funds or credit support utilized to consummate, the transaction or series of related transactions pursuant to which such Restricted Subsidiary became a Subsidiary or was otherwise acquired by the Corporation);
provided, however, that the Corporation, after acquiring such Restricted Subsidiary and after giving effect to the Incurrence of such Indebtedness pursuant to this clause (iv), would have been able to Incur US $1.00 of additional
Indebtedness pursuant to clause (i) of paragraph (a) above and (B) Permitted Refinancing Indebtedness Incurred by such Restricted Subsidiary in respect of Indebtedness Incurred by such Restricted Subsidiary pursuant to this clause
(iv); 
  

 42 

 (v) Indebtedness Incurred by the Corporation or any of its Restricted Subsidiaries and used to fund
capital expenditures in an aggregate principal amount on the date of Incurrence which, when added to all other Indebtedness Incurred pursuant to this clause (v) and then outstanding (including any Permitted Refinancing Indebtedness Incurred in
respect of this clause (v) contemplated by clause (iii) of this paragraph (b)), will not exceed US $150 million (including any such Indebtedness incurred within 90 days of a capital expenditure to fund such capital expenditure);

 (vi) Indebtedness (A) in respect of performance bonds, banker’s acceptances, trade letters of credit and surety or appeal bonds
provided by the Corporation and its Restricted Subsidiaries in the ordinary course of their business and which do not secure other Indebtedness, and (B) under Exchange Rate Agreements and Interest Rate Agreements; provided,
however, that, in the case of Exchange Rate Agreements and Interest Rate Agreements, such Exchange Rate Agreements and Interest Rate Agreements do not increase the Indebtedness of the Corporation outstanding any time other than as a result of
fluctuations in foreign currency exchange rates or interest rates or by reason of fees, indemnities and compensation payable thereunder; 
 (vii) Purchase Money Obligations directly incurred by the Corporation or any of its Restricted Subsidiaries and used to fund the acquisition of capital assets in the ordinary course of business (including any such obligations incurred
within 90 days after such acquisition); provided that (A) each such obligation shall be paid in full not later than 360 days after the subject asset is delivered to the purchaser thereof and (B) the aggregate amount of Purchase
Money Obligations outstanding at any time for purposes of this clause (vii) shall not exceed US $50 million; 
 (viii) Indebtedness of
the Corporation or any of its Restricted Subsidiaries arising from agreements providing for indemnification, adjustment of purchase price or similar 

  

 43 

 
obligations, or from guarantees, letters of credit, surety bonds or performance bonds securing any obligations of the Corporation or any of its Restricted
Subsidiaries, incurred or assumed in connection with the disposition of any business, assets or Restricted Subsidiary of the Corporation other than guarantees or similar credit support by the Corporation or any of its Restricted Subsidiaries 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 aggregate liability in respect of all such
Indebtedness in the nature of such guarantees shall at no time exceed the gross proceeds actually received from the sale of such business, assets or Restricted Subsidiary; or 
 (ix) Indebtedness (other than Indebtedness permitted to be Incurred pursuant to clause (i) of paragraph (a) above or any other clause of this
paragraph (b)) in an aggregate principal amount on the date of Incurrence which, when added to all other Indebtedness Incurred pursuant to this clause (ix) and then outstanding, will not exceed US $150 million. 
 (c) Notwithstanding the foregoing, the Corporation may not Incur any Indebtedness pursuant to paragraph (b) above if the proceeds thereof are used,
directly or indirectly, to repay, prepay, redeem, defease, retire, refund or refinance any Subordinated Obligations unless such Indebtedness will be subordinated to the Securities to at least the same extent as such Subordinated Obligations.

 SECTION 3.04. Limitation on Restrictions on Distributions from Restricted Subsidiaries. The Corporation shall not, and shall not
permit any of its Restricted Subsidiaries to, directly or indirectly, create or otherwise cause or suffer to exist or become effective, or enter into any agreement with any Person that would cause to become effective, any consensual encumbrance or
restriction on the ability of any Restricted Subsidiary to (a) pay dividends, in cash or otherwise, or make any other distributions on or in respect of its Capital Stock, or pay any Indebtedness or other obligation owed, to the Corporation or
any other Restricted Subsidiary, (b) make any loans or advances to the 

  

 44 

 
Corporation or any other Restricted Subsidiary or (c) transfer any of its Property to the Corporation or any other Restricted Subsidiary. Such
limitation will not apply (1) with respect to clauses (a), (b) and (c), to encumbrances and restrictions (i) in existence under or by reason of any agreements in effect on the Issue Date, (ii) relating to Indebtedness of a
Restricted Subsidiary and existing at such Restricted Subsidiary at the time it became a Restricted Subsidiary if either (A) such encumbrance or restriction was not created in connection with or in anticipation of the transaction or series of
related transactions pursuant to which such Restricted Subsidiary became a Restricted Subsidiary or was acquired by the Corporation or (B) such encumbrance or restriction was created in connection with the refinancing of pre-existing
Indebtedness in connection with or in anticipation of the transaction or series of related transactions pursuant to which such Restricted Subsidiary became a Restricted Subsidiary or was acquired by the Corporation, the new Indebtedness is Permitted
Refinancing Indebtedness and such encumbrance or restriction relates only to the Property previously subject to an encumbrance or restriction under the pre-existing Indebtedness (and any improvements or additions to such Property) and is no more
restrictive in the aggregate than was its predecessor or (iii) which result from the renewal, refinancing, extension or amendment of an agreement referred to in clauses (1)(i) and (ii) above and in clauses (2)(i) and
(ii) below, provided, such encumbrance or restriction is no more restrictive in the aggregate to such Restricted Subsidiary and is not less favorable in the aggregate to the Holders of Securities than those under or pursuant to the
agreement evidencing the Indebtedness so extended, renewed, refinanced or replaced, and (2) with respect to clause (c) only, to (i) any encumbrance or restriction relating to Indebtedness that is permitted to be Incurred and secured
pursuant to the provisions under Section 3.03 and Section 3.05 that limits the right of the debtor to dispose of the Property securing such Indebtedness, (ii) any encumbrance or restriction in connection with an acquisition of
Property, so long as such encumbrance or restriction relates solely to the Property so acquired (and any improvements or additions to such Property) and was not created in connection with or in anticipation of such acquisition, (iii) customary
provisions restricting subletting or assignment of leases and customary provisions in other agreements that restrict assignment of such agreements or rights thereunder or (iv) customary restrictions contained in asset sale agreements limiting
the transfer of such assets pending the closing of such sale. 
  

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 SECTION 3.05. Limitation on Liens. The Corporation shall not, and shall not permit any Restricted
Subsidiary to, directly or indirectly, Incur or permit to exist any Lien of any nature whatsoever on any of its Properties (including Capital Stock of a Restricted Subsidiary), whether owned at the Issue Date or thereafter acquired, other than
Permitted Liens, without effectively providing that the Securities shall be secured equally and ratably with (or prior to) the obligations so secured for so long as such obligations are so secured; provided, however, that the
Corporation may Incur Liens to secure Indebtedness as long as, after giving pro forma effect to the Incurrence of such Lien and the receipt and application of proceeds from the Indebtedness secured thereby, the amount of outstanding Indebtedness
secured by Liens Incurred pursuant to this proviso does not exceed 10% of Consolidated Net Assets, as determined based on the consolidated balance sheet of the Corporation as of the end of the most recent fiscal quarter ending at least 45 days prior
thereto. 
 SECTION 3.06. Limitation on Restricted Payments. The Corporation shall not make, and shall not permit any Restricted
Subsidiary to make, any Restricted Payment if at the time of, and after giving effect to, such proposed Restricted Payment, (a) a Default or Event of Default shall have occurred and be continuing, (b) the Corporation could not Incur at
least US $1.00 of additional Indebtedness pursuant to clause (i) of paragraph (a) of Section 3.03 or (c) the aggregate amount of such Restricted Payment and all other Restricted Payments since the Issue Date (the amount of any
Restricted Payment, if made other than in cash, shall be determined based upon fair market value) would exceed an amount equal to the sum of (i) 50% of the aggregate Consolidated Net Income of the Corporation accrued during the period (treated
as one accounting period) from the beginning of the fiscal quarter in which the Issue Date occurs to the end of the most recent fiscal quarter ending at least 30 days prior to the date of such Restricted Payment (or, if Consolidated Net Income
during such period shall be a deficit, less 100% of such deficit), (ii) Capital Stock Sale Proceeds and (iii) the amount by which Indebtedness of the corporation or any Restricted Subsidiary is reduced upon the conversion or exchange
(other than by a Subsidiary of the Corporation) subsequent to the Issue Date of any Indebtedness of the Corporation or any Restricted 

  

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Subsidiary convertible or exchangeable for Capital Stock (other than Disqualified Stock) of the Corporation (less the amount of any cash or other Property
distributed by the Corporation or any Restricted Subsidiary upon conversion or exchange). 
 Notwithstanding the foregoing limitation, the
Corporation may (a) pay dividends on or make distributions in respect of its Capital Stock within 60 days of the declaration thereof if, on the declaration date, such dividends or distributions could have been paid in compliance with the
foregoing limitation, (b) redeem, repurchase, defease, acquire or retire for value, any Subordinated Obligation (whether pursuant to its terms or by operation of law) with the proceeds of any Permitted Refinancing Indebtedness,
(c) acquire, redeem or retire Capital Stock of the Corporation or any Subordinated Obligation in exchange for, or in connection with a substantially concurrent issuance of, Capital Stock of the Corporation (other than Disqualified Stock),
(d) pay dividends on, or make any mandatory market repurchases in respect of, its Preferred Stock outstanding on the Issue Date, in accordance with the terms of such Preferred Stock as in effect on the Issue Date, (e) make Restricted
Payments (the amount of any Restricted Payment, if made other than in cash, shall be determined based on fair market value) otherwise not permitted as a result of the terms of clause (b) or (c) of the preceding paragraph, the aggregate
amount of such Restricted Payments made since the Issue Date not to exceed US $50 million, and (f) repurchase those shares of Capital Stock of Norkraft issued and outstanding on the Issue Date and not owned on the Issue Date by the Corporation.

 Any payments made pursuant to clauses (b), (c) or (f) of the immediately preceding paragraph shall be excluded from the
calculation of the aggregate amount of Restricted Payments made after the Issue Date; provided, however, that the proceeds from the issuance of Capital Stock pursuant to clause (c) of the immediately preceding paragraph
shall not constitute Capital Stock Sale Proceeds for purposes of clause (c)(ii) of the first paragraph of this covenant if and to the extent such proceeds are utilized to make Restricted Payments. Any payments made pursuant to clauses (a),
(d) and (e) of the immediately preceding paragraph shall be included in the calculation of the aggregate amount of Restricted Payments made after the Issue Date. 
  

 47 

 SECTION 3.07. Limitation on Asset Sales. The Corporation shall not, and shall not permit any
Restricted Subsidiary to, directly or indirectly, consummate any Asset Sale after the Issue Date unless (i) the Corporation or such Restricted Subsidiary, as the case may be, receives consideration at the time of such Asset Sale at least equal
to the fair market value (as determined in good faith by a majority of the Board of Directors, including a majority of the independent directors, as evidenced by a Board Resolution, or as determined based upon an opinion letter from an Independent
Appraiser (which opinion letter shall identify such Independent Appraiser as such and be dated within 30 days of such Asset Sale)) of the Property subject to such Asset Sale and (ii) at least 75% of the consideration paid to the Corporation or
such Restricted Subsidiary in connection with such Asset Sale is in the form of (w) cash or cash equivalents or notes secured as to payment of principal and interest by a Qualified Letter of Credit, (x) the assumption or repayment of
Indebtedness of the Corporation or a Restricted Subsidiary (together, in each case, with a complete and unconditional release of all obligations of the Corporation and its Restricted Subsidiaries in respect of such Indebtedness) or (y) Property
(including Capital Stock constituting a majority of the total voting power attached to the then outstanding Voting Capital Stock of any Person the primary business of which is a Related Business or, in connection with an Investment by the
Corporation or a Restricted Subsidiary in a joint venture in a Related Business, Capital Stock of the Person formed in connection with such joint venture) to be used by the Corporation and its Restricted Subsidiaries in a Related Business (the
amount of consideration in respect of Property to be equal to its fair market value, determined as aforesaid), or (z) any combination of (w), (x) or (y). 
 The Net Available Cash (or any portion thereof) from Asset Sales may be applied by the Corporation or a Restricted Subsidiary, to the extent the Corporation or such Restricted Subsidiary elects, (A) to prepay,
repay or purchase (1) Indebtedness of a Restricted Subsidiary, (2) Indebtedness under the Credit Agreement (without requiring a reduction in the committed amount of the Credit Agreement) or (3) other Indebtedness of the Corporation
(other than any Subordinated Obligation), provided that, in the case of clause (A)(3), such Indebtedness has (i) a Stated Maturity no later than the Stated Maturity of the Securities or the Notes, as applicable, and (ii) an Average

  

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Life equal to or shorter than the Average Life of the Securities or the Notes, as applicable; or (B) to reinvest in Additional Assets (including by
means of an Investment in Additional Assets by a Restricted Subsidiary with Net Available Cash received by the Corporation or another Restricted Subsidiary). 
 Any Net Available Cash from an Asset Sale that is not applied in accordance with the preceding paragraph within twelve months from the date of the receipt of such Net Available Cash or that is not segregated from the
general funds of the Corporation for investment in identified Additional Assets in respect of a project that shall have been commenced prior to the end of such twelve-month period and shall not have been completed or abandoned shall constitute
“Excess Proceeds”; provided, however, that the amount of any Net Available Cash that ceases to be so segregated as contemplated above and any Net Available Cash that is segregated in respect of a project that is
abandoned or completed shall also constitute “Excess Proceeds” at the time any such Net Available Cash ceases to be so segregated or at the time the relevant project is so abandoned or completed, as applicable; provided further,
however, that the amount of any Net Available Cash that continues to be segregated for investment and that is not actually reinvested within twenty-four months from the date of the receipt of such Net Available Cash shall also constitute
“Excess Proceeds”. When the aggregate amount of Excess Proceeds exceeds US $20 million, the Corporation will be required to make an offer to purchase (the “Prepayment Offer”) the Securities, in an amount equal to the Allocable
Excess Proceeds (as defined below) at a purchase price (the “Purchase Price”) equal to an amount not less than 100% of the principal amount of each such Security, plus accrued and unpaid interest thereon (if any) to the date of purchase in
accordance with the procedures (including prorating in the event of oversubscription) set forth in this Indenture. If the aggregate principal amount of all Securities surrendered for purchase by Holders thereof exceeds the applicable amount of
Allocable Excess Proceeds, then the Trustee shall select the Securities to be purchased pro rata according to principal amount with such adjustments as may be deemed appropriate by the Corporation so that only Securities in denominations of US
$1,000, or integral multiples thereof, shall be purchased. To the extent that any portion of the amount of Net Available Cash remains after compliance with the preceding sentence and provided that all Holders of Securities have been given the
opportunity to tender their 

  

 49 

 
Securities for purchase as described in the following paragraph in accordance with this Indenture, the Corporation or such Restricted Subsidiary may use such
remaining amount for general corporate purposes and the amount of Excess Proceeds will be reset to zero; provided that the amount of the Unoffered Excess Proceeds (as defined below) shall constitute Excess Proceeds in respect of the
Securities for purposes of the first Prepayment Offer that is made after the fifth anniversary of the Issue Date (the “Fifth Anniversary”), “Allocable Excess Proceeds” means the product of (x) the Excess Proceeds and
(y) a fraction, the numerator of which is the aggregate principal amount of the Securities outstanding on the date of the Prepayment Offer and the denominator of which is the sum of the aggregate principal amount of the Securities outstanding
on the date of the Prepayment Offer and the aggregate principal amount of other Indebtedness of the Corporation outstanding on the date of the Prepayment Offer that is pari passu in right of payment with the Securities and subject to
terms and conditions in respect of Asset Sales similar in all material respects to this Section 3.07 and requiring the Corporation to make an offer to purchase such Indebtedness substantially at the same time of the Prepayment Offer.

 Notwithstanding the foregoing, in no event shall the Corporation be required to repurchase or make a Prepayment Offer or Prepayment Offers
to purchase more than 25% of the original aggregate principal amount of the Securities on or prior to the Fifth Anniversary. If (x) the aggregate Allocable Excess Proceeds (disregarding any resetting to zero pursuant to the preceding paragraph)
resulting from Asset Sales occurring on or prior to the Fifth Anniversary that, but for the first sentence of this paragraph, the Corporation would be required to apply to repurchase or make an offer or offers to purchase Securities, less
(y) any Deficiencies resulting from any Prepayment Offer made on or prior to the Fifth Anniversary, exceed the sum of (a) 25% of the original aggregate principal amount of the Securities, plus (b) without duplication of amounts
specified in clause (y) of this sentence, any portion of such Allocable Excess Proceeds in excess of 25% of the original aggregate principal amount of the Securities applied at the election of the Corporation to repurchase or make an offer or
offers to purchase Securities prior to the Fifth Anniversary (such excess being the “Unoffered Excess Proceeds”), then, subject to and in accordance with the procedures set forth in this covenant, within five Business Days after the Fifth
Anniversary the 

  

 50 

 
Corporation shall make a Prepayment Offer for the Securities in an amount equal to the Unoffered Excess Proceeds applicable to the Securities.
“Deficiency” shall mean an amount equal to the excess, if any, of the aggregate principal amount of Securities offered to be purchased pursuant to a Prepayment Offer over the aggregate principal amount of Securities tendered in respect of
such Prepayment Offer. 
 Within five Business Days after the date Net Available Cash from an Asset Sale is treated as “Excess
Proceeds” under this covenant, the Corporation shall, if it is obligated to make a Prepayment Offer, send a written notice, by first-class mail, to the Holders of Securities (the “Prepayment Offer Notice”), accompanied by such
information regarding the Corporation and its Subsidiaries as the Corporation in good faith believes will enable such Holders to make an informed decision with respect to the Prepayment Offer. The Prepayment Offer Notice will state, among other
things, (a) that the Corporation is offering to purchase Securities pursuant to the provisions of this Section, (b) that any Security (or any portion thereof) accepted for payment (and duly paid on the Purchase Date) pursuant to the
Prepayment Offer shall cease to accrue interest after the Purchase Date, (c) the purchase price and purchase date, which shall be, subject to any contrary requirements of applicable law, no less than 30 days nor more than 60 days from the date
the Prepayment Offer Notice is mailed (the “Purchase Date”), (d) the aggregate principal amount of Securities to be purchased and (e) a description of the procedures which Holders of Securities must follow in order to tender
their Securities (or portions thereof) and the procedures that Holders of Securities must follow in order to withdraw an election to tender their Securities (or portions thereof) for payment. 
 SECTION 3.08. Limitation on Transactions with Affiliates. The Corporation shall not, and shall not permit any Restricted Subsidiary to, enter into
or permit to exist any transaction (including the purchase, sale, lease or exchange of any property, employee compensation arrangements or the rendering of any service) with any Affiliate of the Corporation (an “Affiliate Transaction”)
unless the terms thereof (1) are no less favorable to the Corporation or such Restricted Subsidiary than those that could be obtained at the time of such transaction in arm’s-length dealings with a Person who is not such an Affiliate,
(2) if such Affiliate Transaction involves aggregate consideration in excess of 

  

 51 

 
US $10 million but less than or equal to US $25 million, (i) are set forth in writing, (ii) have been approved by a majority of the members of the
Board of Directors having no personal stake in such Affiliate Transaction and (iii) satisfy the terms of clause (1) of this covenant and (3) if such Affiliate Transaction involves aggregate consideration in excess of US $25 million,
(i) (x) have been determined by an Independent Appraiser to be fair to the Corporation and its Restricted Subsidiaries, from a financial standpoint, or (y) satisfy the terms of clause (2) (ii) of this Section and
(ii) satisfy the terms of clauses (1) and (2) (i) of this Section. 
 Notwithstanding the foregoing limitation, the
Corporation may enter into or suffer to exist the following: (i) any Restricted Payment made in accordance with Section 3.06; (ii) any transaction or series of transactions between the Corporation and one or more of its Restricted
Subsidiaries or between two or more of its Restricted Subsidiaries (provided that no more than 5% of the Capital Stock in any of such Restricted Subsidiaries is beneficially owned by an Affiliate of the Corporation (other than another
Restricted Subsidiary)); (iii) the payment of compensation (including, amounts paid pursuant to employee benefit plans) for the personal services of officers, directors and employees of the Corporation or any of its Restricted Subsidiaries, so
long as the Board of Directors of the Corporation in good faith shall have approved the terms thereof and deemed the services theretofore or thereafter to be performed for such compensation or fees to be fair consideration therefor; (iv) any
transaction pursuant to any contract in existence on the Issue Date between the Corporation and a Wholly Owned Subsidiary or between Wholly Owned Subsidiaries; (v) loans and advances to employees made in the ordinary course of business and
consistent with past practice of the Corporation or such Restricted Subsidiary, as the case may be; and (vi) any transaction or series of transactions between the Corporation and Norkraft, so long as Norkraft remains a Restricted Subsidiary
owned solely by the Corporation and an entity owned solely by Norkraft employees. 
 SECTION 3.09. Limitation on Sale and Leaseback
Transactions. The Corporation will not, and will not permit any Restricted Subsidiary to, enter into any Sale and Leaseback Transaction with respect to any Property unless (i) the Corporation or such Subsidiary would be entitled to
(A) Incur Indebtedness in an amount equal to the 

  

 52 

 
Attributable Indebtedness with respect to such Sale and Leaseback Transaction pursuant to Section 3.03 and (B) create a Lien on such property
securing such Attributable Indebtedness without equally and ratably securing the Securities pursuant to Section 3.05 and (ii) the net cash proceeds received by the Corporation or any Restricted Subsidiary in connection with such Sale and
Leaseback Transaction are at least equal to the fair market value (determined as specified in the first paragraph under Section 3.07) of such Property. 
 SECTION 3.10. Designation of Restricted and Unrestricted Subsidiaries. (a) Unless defined or designated as an Unrestricted Subsidiary, any Person that becomes a Subsidiary of the Corporation or any of its
Restricted Subsidiaries shall be classified as a Restricted Subsidiary subject to the provisions of the next paragraph. The Corporation may designate a Subsidiary (including a newly formed or newly acquired Subsidiary) of the Corporation or any of
its Restricted Subsidiaries as an Unrestricted Subsidiary unless such Subsidiary or any of its Subsidiaries owns or holds any Capital Stock or Indebtedness of, or holds any Lien on any Property of, the Corporation, or any Restricted Subsidiary of
the Corporation; provided, however, (i) such designation is effective on the Issue Date or within 30 days after the first meeting of the Board of Directors to occur following the date on which such Subsidiary became a Subsidiary
of the Corporation or of a Restricted Subsidiary or (ii) the Subsidiary to be so designated has total assets of US $1,000 or less. An Unrestricted Subsidiary may be redesignated as a Restricted Subsidiary upon compliance with the provisions of
the next paragraph. The designation of an Unrestricted Subsidiary or removal of such designation shall be made by the Board of Directors pursuant to a Board Resolution delivered to the Trustee and shall be effective as of the date specified in such
Board Resolution, which shall not be prior to the date such Board Resolution is delivered to the Trustee. 
 (b) The Corporation will not,
and will not permit any of its Restricted Subsidiaries to, take any action or enter into any transaction or series of transactions that would result in a Person becoming a Restricted Subsidiary (whether through an acquisition or otherwise) unless,
after giving effect to such action, transaction or series of transactions, on a pro forma basis, (i) the Corporation could Incur at least US $1.00 of additional Indebtedness pursuant to clause (i) of paragraph (a) of Section 3.03
and (ii) no Default or Event of Default would occur or be continuing. 
  

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 SECTION 3.11. Canadian Withholding Taxes. All payments made on behalf of the Corporation under or
with respect to the Securities will be made free and clear of and without withholding or deduction for or on account of any present or future tax, duty, levy, impost, assessment or other governmental charge (including penalties, interest and other
liabilities related thereto) imposed or levied by or on behalf of the Government of Canada or of any province or territory thereof or by any authority or agency therein or thereof having power to tax (“Taxes”), unless the Corporation is
required to withhold or deduct Taxes by law or by the interpretation or administration thereof by the relevant government authority or agency. If the Corporation is so required to withhold or deduct any amount for or on account of Taxes from any
payment made under or with respect to the Securities, the Corporation will be required to pay such additional amounts (“Additional Amounts”) as may be necessary so that the net amount received by each Holder (including Additional Amounts)
after such withholding or deduction will not be less than the amount the Holder would have received if such Taxes had not been withheld or deducted; provided, however, that no Additional Amounts will be payable with respect to payments
made to a Holder (an “Excluded Holder”) in respect of a beneficial owner (i) with which the Corporation does not deal at arm’s length (for the purposes of the Income Tax Act (Canada)) at the time of making of such payment
or (ii) which is subject to such Taxes by reason of its being connected with Canada or any province or territory thereof otherwise than by the mere holding of Securities or the receipt of payments thereunder. The Corporation will also make such
withholding or deduction and remit the full amount deducted or withheld to the relevant authority as and when required in accordance with applicable law. 
 The Corporation will furnish to the Holder of the Securities, within 30 days after the date the payment of any Taxes is due pursuant to applicable law, certified copies of tax receipts evidencing such payment by the
Corporation. The Corporation will upon written request of each Holder (other than an Excluded Holder), reimburse each such Holder for the amount of (i) any Taxes so levied or imposed and paid by such Holder as a result of payments made under or
with respect to the Securities and (ii) any Taxes imposed 

  

 54 

 
with respect to any reimbursement under the immediately preceding clause (i), but excluding any such Taxes on such Holder’s net income, such that the
net amount received by such Holder after such reimbursement will not be less than the net amount the Holder would have received if Taxes (other than such Taxes on such Holder’s net income) on such reimbursement had not been imposed. 

At least 30 days prior to each date on which any payment under or with respect to the Securities is due and payable, if the Corporation becomes
obligated to pay Additional Amounts with respect to such payment, the Corporation will deliver to the Trustee an Officers’ Certificate stating the fact that such Additional Amounts will be payable, and the amounts so payable and will set forth
such other information as is necessary to enable the Trustee to pay such Additional Amounts to the Holders on the payment date. Whenever in this Indenture there is mentioned, in any context, (a) the payment of principal (and premium, if any),
(b) purchase prices in connection with a purchase of Securities by the Corporation, (c) interest or (d) any other amount payable on or with respect to any of the Securities, such mention shall be deemed to include mention of the
payment of Additional Amounts provided for in this section to the extent that, in such context, Additional Amounts are, were or would be payable in respect thereof. 
 SECTION 3.12. SEC Reports; Reports to Holders. The Corporation shall transmit to the Commission and file with the Trustee and cause to be mailed directly to each of the Holders of the Securities at such
Holder’s last address appearing in the Security Register, without cost to such Holders, within 15 days after the Corporation is required to file the same with the Commission, copies of the annual reports and of the information, documents and
other reports (or copies of such portions of any of the foregoing as the Commission may from time to time by rule and regulation prescribe) which the Corporation is required to file with the Commission pursuant to Section 13 or
Section 15(d) of the Exchange Act; or, if the Corporation is not required to file information, documents or reports pursuant to either of such Sections, then the Corporation will file with the Commission and provide to the Holders of the
Securities and the Trustee annual reports and other information, documents and reports which are required to be filed by a Person similarly situated to the Corporation subject to the reporting requirements of Section 13 or 15(d) of the Exchange
Act, which reports, information and documents, 

  

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regardless of applicable requirements, shall, at a minimum, contain such information required to be provided or set forth in, as applicable, annual and
quarterly reports under the laws of Canada or any province thereof provided to securityholders of a company with securities listed on The Toronto Stock Exchange (whether or not the Corporation has any of its securities so listed); provided,
however, that the Corporation shall not be so obligated to file such reports with the Commission if the Commission does not permit such filings. Any financial statement contained in each of such reports will be prepared in accordance with
GAAP, and in the case of the annual financial statements will contain a reconciliation to accounting principles generally accepted in the United States prepared in accordance with the applicable rules and regulations of the Commission in respect of
such reconciliation. The Corporation also shall comply with the other provisions of TIA § 314(a). 
 SECTION 3.13. Compliance
Certificates. The Corporation shall deliver to the Trustee, within 120 days after the end of each fiscal year of the Corporation, an Officers’ Certificate (one signatory to which shall be its principal executive officer, principal financial
officer or principal accounting officer) stating that a review of the activities of the Corporation and its subsidiaries during the preceding fiscal year has been made under the supervision of the signing Officers with a view to determining whether
the Corporation has kept, observed, performed, fulfilled and complied with their obligations, covenants and conditions under this Indenture, and further stating, as to each such Officer signing such certificate, that to the best of such
Officer’s knowledge the Corporation has kept, observed, performed, fulfilled and complied with each and every applicable covenant and condition contained in this Indenture and is not in default in performance or observance of any of the terms,
provisions and conditions hereof (or, if a Default or Event of Default shall have occurred, describing all such Defaults or Events of Default of which he may have knowledge and the nature and status thereof). For purposes of this paragraph,
compliance shall be determined without regard to any period of grace or requirement of notice under this Indenture. 
 SECTION 3.14.
Notice of Defaults. Subject to the last paragraph of Section 7.01, upon the occurrence of any Default or Event of Default under this Indenture, the Corporation within 10 days after it becomes aware thereof, 

  

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shall deliver to the Trustee an Officers’ Certificate specifying such Default or Event of Default and what action the Corporation is taking or proposes
to take with respect thereto. 
 ARTICLE IV 
 Redemption of the Securities 
 SECTION 4.01. Notice of Trustee. If the Corporation elects to
redeem the Securities pursuant to paragraph 5 of the Securities, it shall notify the Trustee in writing of the Redemption Date and the principal amount of Securities to be redeemed. The Corporation shall give each such notice to the Trustee at least
60 calendar days prior to the Redemption Date unless the Trustee consents to a shorter period. Such notice shall be accompanied by an Officers’ Certificate and an Opinion of Counsel from the Corporation to the effect that such redemption will
comply with any conditions to such redemption set forth herein and in the Securities. 
 SECTION 4.02. Selection of Securities To Be
Redeemed. If less than all of the Securities are to be redeemed at any time, the Trustee shall select the Securities to be redeemed on a pro rata basis, by lot or by such other method as the Trustee in its sole discretion shall deem to be fair
and appropriate, provided that the Trustee may not select for redemption in part Securities of US $1,000 in original principal amount or less. In selecting Securities to be redeemed pursuant to this Section 4.02, the Trustee shall make
such adjustments, reallocations and eliminations as it shall deem proper so that the principal amount of each Security to be redeemed shall be $1,000 or an integral multiple thereof, by increasing, decreasing or eliminating any amount less than
$1,000 which would be allocable to any Holder. The Trustee in its discretion may determine the particular Securities (if there are more than one) registered in the name of any Holder which are to be redeemed, in whole or in part. Provisions of this
Indenture that apply to Securities called for redemption also apply to portions of Securities called for redemption. The Trustee shall notify the Corporation promptly of the Securities or portions of Securities to be redeemed. 
  

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 SECTION 4.03. Notice of Redemption. At least 30 calendar days but not more than 60 calendar days
before a Redemption Date, the Corporation shall send a notice of redemption, first class mail, postage prepaid, to Holders of Securities to be redeemed at the addresses of such Holders as they appear in the Security Register. 
 The notice shall identify the Securities to be redeemed and shall state: 
 (a) the Redemption Date; 
 (b) the Redemption Price (and shall specify the portion of such Redemption Price that constitutes the amount of accrued and unpaid interest to be paid, if any); 
 (c) the name and address of the Paying Agent; 
 (d) that the Securities called for redemption must be surrendered to the Paying Agent to collect the Redemption price; 
 (e) if any Global Security is being redeemed in part, the portion of the principal amount of such Global Security to be redeemed and that,
after the Redemption Date, the Global Security, with a notation adjusting the principal amount thereof to be equal to the unredeemed portion, will be returned to the Holder thereof; 
 (f) if fewer than all the outstanding Securities are to be redeemed, the identification and principal amounts of the particular Securities
to be redeemed; 
 (g) that, unless the Corporation defaults in making the redemption payment, interest on the Securities (or
portions thereof) called for redemption shall cease and such Securities (or portions thereof) shall cease to accrue interest on and after the Redemption Date; 
 (h) the paragraph of the Securities pursuant to which the Securities are being called for redemption; 
 (i) if any Security is to be redeemed in part only, the portion of the principal amount thereof to be redeemed; 
  

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 (j) that Holders whose Securities are being purchased only in part will be issued new
Securities equal in principal amount to the unpurchased portion of the Securities surrendered, provided that each such new Security issued shall be in a principal amount in denominations of $1,000 and integral multiples thereof; and

 (k) the CUSIP if applicable; 
 (l) any other information necessary to enable Holders to comply with the notice of redemption. 
 At the
Corporation’s request, the Trustee shall give the notice of redemption in the Corporation’s name and at the Corporation’s expense. In such event, the Corporation shall provide the Trustee with the information required by this
Section 4.03 in a timely manner. 
 SECTION 4.04. Effect of Notice of Redemption. Once notice of redemption is mailed, Securities
called for redemption shall become due and payable on the Redemption Date and at the Redemption Price stated in such notice. Upon surrender to the Paying Agent, such Securities shall be paid at the Redemption Price stated in such notice. Failure to
give notice or any defect in the notice to any Holder shall not affect the validity of the notice to any other Holder. 
 SECTION 4.05.
Deposit of Redemption Price. On or prior to 10:00 a.m., New York City time, on each Redemption Date, the Corporation shall deposit with the Paying Agent (or, if the Corporation, one of its Subsidiaries or any of their Affiliates is the Paying
Agent, the Paying Agent shall segregate and hold in trust for the benefit of the Holders) money, in United States Federal or other immediately available funds, sufficient to pay the Redemption Price on all Securities to be redeemed on that date
other than Securities or portions of Securities called for redemption on such date which have been delivered by the Corporation to the Trustee for cancellation. 
 So long as the Corporation complies with the preceding paragraph and the other provisions of this Article IV, interest on the Securities to be redeemed on the applicable Redemption Date shall cease to accrue from and
after such date and such Securities or portions thereof shall be deemed not to be entitled to any benefit under this 

  

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Indenture except to receive payment of the Redemption Price on the Redemption Date. If any Security called for redemption shall not be so paid upon surrender
for redemption, then, from the Redemption Date until such principal, premium (if any) and accrued but unpaid interest is paid, interest shall be paid on the unpaid principal and premium (if any) at the rate then borne by the Securities, and, to the
extent permitted by law, on any accrued but unpaid interest thereon, at the same rate. 
 SECTION 4.06. Redemption for Changes in Canadian
Withholding Taxes. The Securities may be redeemed, at the option of the Corporation, at any time as a whole but not in part, on not less than 30 nor more than 60 days’ notice, at 100% of the principal amount thereof, plus accrued and unpaid
interest (if any) to the date of redemption (subject to the right of Holders of record on the relevant record date to receive interest due on the relevant interest payment date), in the event the Corporation has become or would become obligated to
pay, on the next date on which any amount would be payable with respect to the Securities, any Additional Amounts with respect to the Securities as a result of a change in or an amendment to the laws (including any regulations promulgated
thereunder) of Canada (or any political subdivision or taxing authority thereof or therein), or any change in or amendment to any official position regarding the application or interpretation of such laws or regulations, which change or amendment is
announced or becomes effective on or after July 26, 1996. 
 ARTICLE V 
 Right To Require Repurchase 
 SECTION 5.01. Purchase of Securities at the
Option of Holders upon a Change of Control. (a) Upon the occurrence of a Change of Control Triggering Event, the Corporation shall notify the Trustee in writing of such occurrence within 30 days thereafter and shall make an offer to
purchase (the “Change of Control Offer”), and each Holder of Securities shall have the right to require the Corporation to purchase, all or any part (equal to US $1,000 or an integral multiple thereof) of each Holder’s Securities at a
purchase price equal to 101% of the principal amount thereof, plus accrued and unpaid interest thereon, if any, to the Change of Control Payment Date (as hereinafter defined) (subject to the right of Holders of record on the 

  

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relevant Record Date to receive interest due on the relevant Interest Payment Date) (the “Change of Control Payment”) in accordance with the
procedures set forth in this Section 5.01. 
 (b) Within 30 days following any Change of Control Triggering Event with respect to the
Securities, the Corporation shall (i) cause a notice of the Change of Control Offer to be sent at least once to the Dow Jones News Service or similar business news service in the United States and (ii) mail a notice to each Holder of
Securities stating: 
  

	 	(1)	that a Change of Control Triggering Event has occurred and a Change of Control Offer is being made pursuant to this Section 5.01 and that all Securities timely tendered will be
accepted for payment, subject to the terms and conditions set forth herein; 

  

	 	(2)	the Change of Control Payment and the purchase date, which shall be, subject to any contrary requirements of applicable law, no earlier than 30 days nor later than 60 days from the
date such notice is mailed (the “Change of Control Payment Date”); 

  

	 	(3)	that any Security (or portion thereof) accepted for payment (and duly paid on the Change of Control Payment Date) pursuant to the Change of Control Offer shall cease to accrue
interest after the Change of Control Payment Date; 

  

	 	(4)	that any Securities (or portions thereof) not tendered will continue to accrue interest; 

  

	 	(5)	a description of the transaction or transactions constituting the Change of Control Triggering Event; 

  

	 	(6)	that Holders accepting the offer to have their Securities purchased pursuant to a Change of Control Offer will be required to surrender such Securities to the Paying Agent at the
address specified in the notice prior to the close of business on the Business Day preceding the Change of Control Payment Date; 

  

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	 	(7)	that Holders will be entitled to withdraw their acceptance if the Paying Agent receives, not later than the close of business on the third Business Day preceding the Change of
Control Payment Date, a facsimile transmission or letter setting forth the name of the Holder, the principal amount of such Securities delivered for purchase, and a statement that such Holder is withdrawing his election to have such Securities
purchased; 

  

	 	(8)	that Holders whose Securities are being purchased only in part will be issued new Securities equal in principal amount to the unpurchased portion of the Securities surrendered,
provided that each Security purchased and each such new Security issued shall be in a principal amount in denominations of $1,000 and integral multiples thereof; and 

  

	 	(9)	any other procedures that a Holder must follow to accept a Change of Control Offer or effect withdrawal of such acceptance. 

 (c) On the Change of Control Payment Date, the Corporation shall (a) accept for payment the Securities or portions thereof duly tendered pursuant to
the Change of Control Offer and not withdrawn, (b) deposit with the Paying Agent money sufficient to pay the Change of Control Payment with respect to all Securities accepted for payment, and (c) deliver or cause to be delivered to the
Trustee the Securities so accepted together with an Officers’ Certificate indicating the Securities or portions thereof tendered to the Corporation. The Paying Agent shall promptly mail to each Holder of Securities so accepted payment in an
amount equal to the Change of Control Payment for such Securities, and the Trustee shall promptly authenticate and mail to such Holder a new Security equal in principal amount to any unpurchased portion of the Securities surrendered; provided that
each such new Security shall be issued in an original principal amount in denominations of $1,000 and integral multiples thereof. 
 SECTION
5.02. Covenant To Comply with Securities Laws upon Purchase of Securities. In connection with any purchase of Securities under Section 3.07 or Section 5.01 by 

  

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the Corporation, the Corporation shall, to the extent then applicable and required by law, (i) comply with Rule 14e-l (which term, as used herein,
includes any successor provisions thereto) under the Exchange Act and any other securities laws and regulations thereunder and (ii) otherwise comply with all United States Federal and state securities laws so as to permit the rights and
obligations under Section 3.07 or Section 5.01 to be exercised in the time and in the manner specified in such Sections. To the extent that the provisions of any such securities laws or regulations conflict with the provisions of
Section 3.07 or Section 5.01, the Corporation shall comply with the applicable securities laws and regulations and shall not be deemed to have breached its obligations described in such Section 3.07 or Section 5.01 by virtue
thereof. 
 ARTICLE VI  
 Merger, Amalgamation, Consolidation and Sale of Assets 
 SECTION 6.01. When Corporation May Merge, Amalgamate,
Consolidate or Sell Assets. (a) The Corporation may not amalgamate with, consolidate with or merge with or into any Person (other than a merger of a Wholly Owned Subsidiary into the Corporation), or convey, sell, transfer, assign, lease or
otherwise dispose of all or substantially all of its assets (in one transaction or a series of related transactions) to any Person, unless: (i) the Corporation shall be the surviving Person (the “Surviving Person”), or the Surviving
Person (if other than the Corporation) formed by such amalgamation, consolidation or into which the Corporation is merged or to which the assets of the Corporation are transferred, conveyed, sold, assigned or leased shall be a corporation organized
and existing under the Federal laws of Canada or the laws of any province thereof or the laws of the United States or any State thereof or the District of Columbia; (ii) the Surviving Person (if other than the Corporation) shall expressly
assume, by supplemental indenture, executed and delivered to the Trustee, in form satisfactory to the Trustee, all of the obligations of the Corporation under the Securities and this Indenture, and the obligations under this Indenture shall remain
in full force and effect; (iii) in the case of a sale, transfer, assignment, lease, conveyance or other disposition of all or substantially all of the Corporation’s Property, such Property shall have been 

  

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so transferred as an entirety or virtually as an entirety to one Person; (iv) immediately after giving effect to such transaction, the Surviving Person
will have a Consolidated Net Worth in an amount which is not less than the Consolidated Net Worth of the Corporation immediately prior to such transaction; (v) immediately after giving effect to such transaction, no Default or Event of Default
shall have occurred and be continuing; (vi) immediately after giving effect to such transaction on a pro forma basis (including any Indebtedness Incurred or anticipated to be Incurred in connection with such transaction or series of
transactions), (A) the Surviving Person would be able to Incur at least US $1.00 of additional Indebtedness pursuant to clause (i) of paragraph (a) under Section 3.03 or (B) the Surviving Person would have a Consolidated
Fixed Charge Coverage Ratio which is not lower than the Consolidated Fixed Charge Coverage Ratio of the Corporation immediately prior to such transaction; and (vii) the Corporation shall have received an opinion of outside counsel in Canada to
the effect that (A) any payment of interest or principal on the Securities by the Corporation to a Holder will, after the amalgamation, consolidation, merger, sale, conveyance, transfer, assignment, lease or other disposition of assets be
exempt from Canadian withholding tax if the Holder is or is deemed to be a non-resident of Canada, deals at arm’s length with the Surviving Person for purposes of the Income Tax Act (Canada) at the time of making the payment and
(B) no other taxes on income (including taxable capital gains) will be payable under the Income Tax Act (Canada) by a Holder of the Securities who is or who is deemed to be a non-resident of Canada in respect of the acquisition,
ownership or disposition of the Securities, including the receipt of interest, principal or premium thereon, provided that such Holder does not use or hold, and is not deemed to use or hold the Securities in carrying on a business in Canada for
purposes of the Income Tax Act (Canada) and, in the case of a Holder of the Securities who carries on an insurance business in Canada and elsewhere, the Securities are not effectively connected with its Canadian insurance business.

 (b) In connection with any amalgamation, consolidation, merger or transfer (or like transaction) contemplated by this provision, the
Corporation shall deliver, or cause to be delivered, to the Trustee, in form and substance reasonably satisfactory to the Trustee, an Officers’ Certificate and an Opinion of Counsel, each stating that such amalgamation, consolidation, merger or
transfer (or like transaction) and the supplemental 

  

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indenture in respect thereto comply with this provision and that all conditions precedent herein provided for relating to such transaction or transactions
have been complied with. 
 (c) The Surviving Person will succeed to, and be substituted for, and may exercise every right and power of, the
Corporation under this Indenture, but the predecessor Corporation in the case of a sale, conveyance, transfer, assignment, lease or other disposition of all or substantially all its assets will not be released from the obligation to pay the
principal of and interest on the Securities. 
 ARTICLE VII  
 Defaults and Remedies 
 SECTION 7.01. Events of Default. An “Event
of Default” occurs with respect to the Securities if: 
  

	 	(1)	the Corporation fails to make the payment of any principal of the Securities when the same becomes due and payable at maturity, upon acceleration, redemption or declaration, or
otherwise; 

  

	 	(2)	the Corporation fails to make the payment of any interest or Additional Amounts on any of the Securities, when the same becomes due and payable, and such failure continues for a
period of 30 days; 

  

	 	(3)	the Corporation fails to comply with any other covenant in the Securities or this Indenture and such failure continues for 45 days after the notice specified below;

  

	 	(4)	 a default or defaults resulting in acceleration of any Indebtedness of the Corporation or any Restricted Subsidiary that is outstanding in a principal amount of $25
million or more, or any failure of the Corporation or any Restricted Subsidiary to pay any such Indebtedness at final maturity beyond any applicable grace period or any failure of the Corporation or any Restricted Subsidiary to pay any such
Indebtedness in 

  

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the event such Indebtedness shall be declared to be due and payable or required to be prepaid prior to the Stated Maturity thereof;

  

	 	(5)	any judgment or judgments for the payment of money in excess of US $25 million shall be rendered against the Corporation or any Restricted Subsidiary and shall not be waived,
satisfied or discharged for any period of 60 consecutive days during which a stay of enforcement shall not be in effect; 

  

	 	(6)	the Corporation or any Restricted Subsidiary pursuant to or within the meaning of any Bankruptcy Law: 

 (A) commences a voluntary case; 
 (B)
consents to the entry of an order for relief against it in an involuntary case; 
 (C) consents to the appointment of a Custodian of it or
for any substantial part of its property; or 
 (D) makes a general assignment for the benefit of its creditors; 
 or takes any comparable action under any foreign laws relating to insolvency, unless, in the case
of a Restricted Subsidiary, the Consolidated Net Tangible Assets attributable to such Restricted Subsidiary is less than 2  1/2% of the Consolidated Net Tangible Assets of the Corporation as of the end of the fiscal quarter immediately preceding the date of the occurrence of any such event; and 
  

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

 (A) is for relief against the Corporation or any Restricted Subsidiary in an involuntary case; 
 (B) appoints a Custodian of the Corporation or any Restricted Subsidiary or for any substantial part of its property; or 
  

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 (C) orders the winding up or liquidation of the Corporation or any Restricted Subsidiary; 
 or any similar relief is granted under any foreign laws and the order or decree remains unstayed and in effect for 60 days, unless, in the case of a
Restricted Subsidiary, the Consolidated Net Tangible Assets attributable to such Restricted Subsidiary is less than 2 1/2% of the Consolidated Net Tangible Assets of the Corporation as of the end of the quarter immediately preceding the date of the
occurrence of any such event. 
 The foregoing will constitute Events of Default whatever the reason for any such Event of Default and
whether it is voluntary or involuntary or is effected by operation of law or pursuant to any judgment, decree or order of any court or any order, rule or regulation of any administrative or governmental body. 
 The term “Custodian” means any receiver, trustee, assignee, liquidator, custodian or similar official under any Bankruptcy Law. 
 A Default under clause (3) to this Section 7.01 is not an Event of Default until the Trustee or the Holders of at least 25% in aggregate
principal amount of the Securities then outstanding notify the Corporation of the Default (with a copy of the notification to the Trustee in the case of notice from the Holders) and the Corporation does not cure such Default within 45 days after
receipt of such notice. Such notice must specify the Default, demand that it be remedied and state that such notice is a “Notice of Default”. 
 The Corporation shall deliver to the Trustee, within 10 days after the occurrence thereof, written notice in the form of an Officers’ certificate of any Default that has occurred and is continuing or in the event
that the Trustee, any Holder or the trustee for or the holder of any other evidence of Indebtedness of the Corporation gives any notice or takes any other action with respect to a claimed default (other than with respect to Indebtedness in the
principal amount of less than US $25 million). The Officers’ Certificate shall specify such Default, notice or other action. 
 SECTION
7.02. Acceleration. If an Event of Default (other than an Event of Default specified in 

  

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Section 7.01(6) or (7) with respect to the Corporation) occurs and is continuing, the Trustee by notice to the Corporation, or the Holders of at
least 25% in aggregate principal amount of the Securities then outstanding by notice to the Corporation and the Trustee, may declare the principal of all the Securities then outstanding, plus accrued but unpaid interest to the date of acceleration,
to be due and payable. Upon such a declaration, such principal and interest shall be due and payable immediately. If an Event of Default specified in Section 7.01(6) or (7) with respect to the Corporation occurs, the principal of and
accrued but unpaid interest on all the Securities shall ipso facto become and be immediately due and payable without any declaration or other act on the part of the Trustee or any Holders. The Holders of a majority in aggregate principal
amount of the Securities then outstanding by notice to the Trustee may rescind and annul any acceleration and its consequences if the rescission would not conflict with any judgment or decree and if all existing Events of Default have been cured or
waived except nonpayment of principal, premium (if any) or accrued but unpaid interest that has become due solely because of acceleration. No such rescission shall affect any subsequent Default or impair any right consequent thereto. 
 Notwithstanding the foregoing, in the event of a declaration of acceleration in respect of the Securities because of an Event of Default specified in
clause (4) of Section 7.01 above, such declaration of acceleration shall be automatically annulled if (a) the Indebtedness that is the subject of such Event of Default has been discharged or the holders thereof have rescinded their
declaration of acceleration, notification or action, as applicable, in respect of such Indebtedness, (b) written notice of such discharge or rescission, as the case may be, shall have been given to the Trustee by the Corporation and
countersigned by the holders of such Indebtedness or a trustee, fiduciary or agent for such holders or Person or Persons entitled to take the action described in clause (4) within 30 days after such declaration of acceleration in respect of the
Securities, and (c) no other Event of Default has occurred during such 30-day period which has not been cured or waived in accordance with the terms of this Indenture. 
 SECTION 7.03. Other Remedies. If an Event of Default with respect to the Securities occurs and is continuing, the Trustee may pursue any available
remedy by proceeding at law or in equity to collect the payment of 

  

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principal of, premium (if any) or interest on, the Securities or to enforce the performance of any provision of such Securities or this Indenture.

 The Trustee may maintain a proceeding even if it does not possess any of the Securities or does not produce any of them in the proceeding.
A delay or omission by the Trustee or any Holder in exercising any right or remedy accruing upon an Event of Default shall not impair the right or remedy or constitute a waiver of or acquiescence in the Event of Default. No remedy is exclusive of
any other remedy. All remedies are cumulative to the extent permitted by law. 
 SECTION 7.04. Waiver of Past Defaults. Subject to
Sections 7.02, 7.07 and 10.02, the Holders of at least a majority in principal amount of the Securities then outstanding by notice to the Trustee may waive any existing Default or Event of Default with respect to such Securities and its consequences
or compliance with any provision of this Indenture or the Securities. When a Default or Event of Default with respect to the Securities is waived, it is cured and ceases with respect to the Securities. 
 SECTION 7.05. Control by Majority. Subject to Sections 7.02, 7.07 and 10.02, the Holders of at least a majority in principal amount of the
Securities then outstanding may direct the time, method and place of conducting any proceeding for any remedy available to the Trustee or exercising any trust or power conferred on it with respect to the Securities. However, the Trustee may refuse
to follow any direction that conflicts with law or this Indenture, that the Trustee determines may be unduly prejudicial to the rights of other Holders or that may involve the Trustee in personal liability. 
 SECTION 7.06. Limitation on Suits. A Holder of a Security may not pursue a remedy or institute a proceeding with respect to this Indenture or the
Securities unless: (i) the Holder gives to the Trustee written notice of a continuing Event of Default with respect to the Securities; (ii) the Holders of at least 25% in aggregate principal amount of the Securities then outstanding make a
written request to the Trustee to pursue the remedy or institute the proceeding in its own name as Trustee hereunder; (iii) such Holder or Holders offer to the Trustee indemnity satisfactory to the Trustee against any loss, liability, cost or
expense to be incurred in compliance with such 

  

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request; (iv) the Trustee does not comply with the request within 60 days after receipt of the request and the offer of indemnity; and (v) during
such 60-day period the Holders of at least a majority in aggregate principal amount of the Securities then outstanding do not give the Trustee a direction inconsistent with the request. 
 A Holder may not use this Indenture to prejudice the rights of another Holder or to obtain a preference or priority over another Holder. 
 SECTION 7.07. Rights of Holders To Receive Payment. Notwithstanding any other provision of this Indenture, the right of any Holder of a Security
to receive payment of principal of, premium (if any) or interest on the Security on or after the respective due dates expressed or provided for in such Security, or to bring suit for the enforcement of any such payment on or after such respective
dates, shall not be impaired or affected without the consent of such Holder. 
 SECTION 7.08. Collection Suit by Trustee. If an Event
of Default specified in Section 7.01(1) or (2) occurs and is continuing with respect to the Securities, the Trustee may recover judgment in its own name and as trustee of an express trust against the Corporation or any other obligor on the
Securities for the whole amount of principal, premium (if any) and accrued interest remaining unpaid on the Securities. The Corporation or any other obligor on the Securities shall pay interest on overdue principal and premium, if any (including
interest accruing on or after filing of any petition in bankruptcy or reorganization relating to the Issuer or any other obligor on the Securities, whether or not a claim for post-filing interest is allowed in such proceeding), and the Corporation
or any other obligor on the Securities shall pay interest on overdue installments of interest, to the extent permitted by law (including interest accruing on or after the filing of any petition in bankruptcy or reorganization relating to the Issuer
or any other obligor on the Securities, whether or not a claim for post-filing interest is allowed in such proceeding), in each case at the rate then borne by the Securities, and such further amount as shall be sufficient to cover, the costs and
expense of collection, including the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and counsel. 
  

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 SECTION 7.09. 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 and the Holders allowed in any judicial proceeding relative to the Corporation or any other obligor upon the Securities, its creditors or its
property under any Bankruptcy Law, and shall be entitled and empowered to collect and receive any moneys 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 under Section 8.07.
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 Securities or the rights of any
Holder thereof, or to authorize the Trustee to vote in respect of the claim of any Holder in any such proceeding. 
 SECTION 7.10.
Application of Moneys Collected by Trustee. Any moneys collected by the Trustee with respect to the Securities pursuant to this Article VII shall be applied in the order following, at the date or dates fixed by the Trustee and, in case of the
distribution of such moneys on account of principal, premium (if any) or interest, upon presentation of the Securities, and the notation thereon of the payment, if only partially paid, and upon surrender thereof, if fully paid: 
 FIRST: To the payment of all amounts due to the Trustee pursuant to Section 8.07 (which, in the event that moneys have been collected
in respect of the Securities and other securities of the Corporation, shall be allocated among such series of securities pro rata based on the aggregate principal amount of each series then outstanding); 
 SECOND: In case the principal or premium (if any) of the outstanding Securities shall not have become due at maturity, by required
repurchase, by declaration or otherwise, to the payment of interest on the outstanding Securities, in the order of the maturity of the installments of such interest, with interest (to the extent that such interest has been collected by the Trustee)
upon the overdue installments 

  

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of interest at the same rate as the rate of interest specified in the Securities, such payments to be made ratably to the persons entitled thereto, without
discrimination or preference; 
 THIRD: In case the principal or premium (if any) of the outstanding Securities shall have
become due, at maturity, by required repurchase, by declaration or otherwise, to the payment of the whole amount then owing and unpaid upon the Securities for principal and premium, if any, and interest, with interest upon the overdue principal and
premium, if any, and (to the extent that such interest has been collected by the Trustee) upon overdue installments of interest at the same rate as the rate of interest specified in the Securities; and in case such moneys shall be insufficient to
pay in full the whole amount so due and unpaid upon the Securities, then to the payment of such principal, premium, if any, and interest, without preference or priority of principal and premium, if any, over interest, or of interest over principal
and premium, if any, or of any installment of interest over any other installment of interest, or of any Securities over any other Securities, ratably in proportion to the aggregate of such principal and premium, if any, and accrued and unpaid
interest; and 
 FOURTH: The remainder, if any, to the Corporation, its successors or assigns, or to whosoever may be lawfully
entitled to receive the same, or as a court of competent jurisdiction may direct. 
 Any moneys collected by the Trustee with respect to the
Securities and other securities of the Corporation pursuant to this Article VII shall be applied as set forth above in this Section 7.10 upon all such securities pro rata based on the aggregate principal amount of each such series of securities
then outstanding, without discrimination or preference. 
 The Trustee may fix a record date and payment date for any payment to Holders
pursuant to this Section 7.10. At least 15 days before such record date, the Trustee shall mail to each Holder and the Corporation a notice that states the record date, the payment date and the amount to be paid. 
 SECTION 7.11. Undertaking for Costs. In any suit for the enforcement of any right or remedy under this 

  

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Indenture or in any suit against the Trustee for any action taken or omitted by it as a Trustee, a court in its discretion may require the filing by any
party litigant in the suit of an undertaking to pay the costs of the suit, and the court in its discretion may assess reasonable costs, including reasonable attorneys’ fees, 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 7.11 does not apply to a suit by the Trustee, a suit by a Holder pursuant to Section 7.07 or a suit by Holders of more than 10% in aggregate principal
amount of the Securities then outstanding. 
 SECTION 7.12. Parties May Be Restored to Former Position and Rights in Certain
Circumstances. In the event the Trustee or any Holder shall have proceeded to enforce any right under this Indenture by suit, foreclosure or otherwise and such proceedings shall have been discontinued or abandoned for any reason, or shall have
been determined adversely to the Trustee or any Holder, then in every such case, the Corporation and the Trustee or any Holder shall be restored without further act to their respective former positions and rights hereunder, and all rights, remedies
and powers of the Trustee or any Holder shall continue as though no such proceedings had been taken, except to the extent determined in litigation adversely to the Trustee or any Holder, as the case may be. 
 ARTICLE VIII  
 Trustee

 SECTION 8.01. 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 their exercise, as a prudent person would exercise or use under the circumstances in the conduct of such person’s own affairs. 
 (b) Except during the continuance of an Event of Default: (1) the Trustee need perform only those duties that are specifically set forth in this
Indenture and no implied covenants or obligations shall be read into this Indenture against the Trustee and (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 

  

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opinions expressed therein, upon certificates or opinions furnished to the Trustee and conforming to the requirements of this Indenture. However, the Trustee
shall examine the certificates and opinions to determine whether or not, on their face, they conform to the requirements of this Indenture. 
 (c) The Trustee may not be relieved from liability for its own negligent action, its own negligent failure to act or its own wilful misconduct except that: (1) this paragraph does not limit the effect of paragraph (b) of this
Section 8.01, (2) the Trustee shall not be liable for any error of judgment made in good faith by a Trust Officer or other officer, unless it is proved that the Trustee was negligent in ascertaining the pertinent facts and (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 7.05. 
 (d) Whether or not therein expressly so provided, every provision of this Indenture that in any way relates to the Trustee is subject to paragraphs (a),
(b) and (c) of this Section 8.01. 
 (e) No provision of this Indenture shall require the Trustee to expend or risk its own
funds or incur any liability. The Trustee may refuse to perform any duty or exercise any right or power unless it receives indemnity satisfactory to it against any loss, liability, cost or expense (including, without limitation, reasonable fees and
disbursements of counsel). 
 (f) The Trustee shall not be obligated to pay interest on any money received by it unless otherwise agreed in
writing with the Corporation. Money held in trust by the Trustee need not be segregated from other funds except to the extent required by law. 
 SECTION 8.02. Rights of Trustee. Except as provided in Section 8.01: 
 (a) The Trustee may rely on 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) Before the Trustee acts or refrains from acting, it may require an Officers’ Certificate or an 

  

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Opinion of Counsel or both. The Trustee shall not be liable for any action it takes or omits to take in good faith in reliance on an Officers’
Certificate or Opinion of Counsel. 
 (c) The Trustee may act through attorneys and agents and shall not be responsible for the misconduct or
negligence of any attorney or agent appointed with due care. 
 (d) The Trustee shall not be liable for any action it takes or omits to take
in good faith which it believes to be authorized or within the rights or powers conferred upon it by this Indenture. 
 (e) Unless otherwise
specifically provided in this Indenture, any demand, request, direction or notice from the Corporation shall be sufficient if signed by an Officer of the Corporation. 
 (f) The Trustee may consult with counsel of its choice and the advice of such counsel or any Opinion of Counsel shall be full and complete authorization and protection in respect of any action taken, suffered or
omitted by it hereunder in good faith and in reliance thereon. 
 (g) The Trustee shall be under no obligation to exercise any of the rights
or powers vested in it by this Indenture at the request or direction of any of the Holders of the Securities pursuant to this Indenture, unless such Holders shall have offered to the Trustee reasonable security or indemnity against the costs,
expenses and liabilities that might be incurred by it in compliance with such request or direction. 
 SECTION 8.03. Individual Rights of
Trustee. The Trustee in its individual or any other capacity may become the owner or pledgee of Securities and may otherwise deal with the Corporation or an Affiliate of the Corporation with the same rights it would have if it were not Trustee.
Any Agent may do the same with like rights. However, the Trustee is subject to Sections 8.10 and 8.11. 
 SECTION 8.04. Trustee’s
Disclaimer. The Trustee makes no representation as to the validity or adequacy of this Indenture or the Securities; it shall not be accountable for the Corporation’s use of the proceeds from the Securities or any money paid to the
Corporation upon the Corporation’s direction under any provision hereof; and it shall not be responsible for any statement in the Securities other than its authentication. 
  

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 SECTION 8.05. Notice of Defaults. If a Default or Event of Default with respect to the Securities
occurs and is continuing and if a Trust Officer has received written notice thereof, the Trustee shall mail to Holders a notice of the Default or Event of Default within 90 days after the occurrence thereof unless such Default or Event of Default
shall have been cured or waived. Except in the case of a Default or Event of Default in payment of principal or premium (if any) or interest on any Security (including any failure to make any mandatory repurchase required hereunder), the Trustee may
withhold the notice if and so long as it in good faith determines that withholding the notice is in the best interest of the Holders. 
 SECTION 8.06. Reports by Trustee to Holders. Within 60 days after each January 1 beginning with January 1, 1997, the Trustee shall mail to Holders a brief report dated as of such reporting date that complies with TIA §
313(a) (but if no event described in TIA § 313(a) has occurred within the twelve months preceding the reporting date, no report need be transmitted). Commencing at such time, the Trustee also shall comply with TIA § 313(b)(2). The Trustee
shall also transmit reports required by TIA § 313 by mail as required by TIA § 313(c). 
 A copy of each report at the time of its
mailing to Holders shall be filed with the SEC, if required, and each stock exchange, if any, on which the Securities are listed. The Corporation shall notify the Trustee when the Securities are listed on any stock exchange. 
 SECTION 8.07. Compensation and Indemnity. The Corporation shall pay to the Trustee from time to time such compensation as agreed to by the Trustee
for its services hereunder. The Trustee’s compensation shall not be limited by any law on compensation of a trustee of an express trust. Except as otherwise expressly provided herein, the Corporation shall reimburse the Trustee upon request for
all reasonable disbursements, advances (if any) and expenses incurred by it, including in particular, but without limitation, those incurred in connection with the enforcement of any remedies hereunder. Such expenses may include the reasonable
compensation, disbursements and expenses of the Trustee’s agents and counsel. 
  

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 Except as set forth in the next paragraph, the Corporation shall indemnify and hold harmless the Trustee,
its directors, officers, employees and agents against any damage, claim, loss, liability, cost or expense (including, without limitation, fees and expenses of counsel) other than taxes based upon, measured by or determined by the income of the
Trustee incurred by it arising out of or in connection with the acceptance or administration of its duties under this Indenture, including without limitation the costs and expenses of defending itself against any claim or liability in connection
with the exercise or performance of, or failure to exercise or perform, any of its powers or duties hereunder. The Trustee shall notify the Corporation promptly of any claim for which it may seek indemnity. The Corporation may defend such claim and
the Trustee shall cooperate in such defense. In the event of a conflict between the Corporation and the Trustee, the Trustee may have separate counsel and the Corporation shall pay the reasonable fees and expenses of such counsel. 
 The Corporation need not reimburse any expense or indemnify against any loss, liability, cost or expense incurred by the Trustee through the
Trustee’s negligence, wilful misconduct or bad faith. 
 To secure the Corporation’s payment obligations in this Section, the
Trustee shall have a lien prior to the Securities on all money or property held or collected by the Trustee, except that held in trust to pay the principal of, premium (if any) and interest on particular Securities. Such obligations shall survive
the satisfaction and discharge of this Indenture, and the resignation or removal of the Trustee. 
 When the Trustee incurs expenses or
renders services after an Event of Default specified in clause (6) or (7) of Section 7.01 occurs, the expenses and the compensation for the services are intended to constitute expenses of administration under any Bankruptcy Law.

 SECTION 8.08. Replacement of Trustee. A resignation or removal of the Trustee and appointment of a successor Trustee shall become
effective only upon the successor Trustee’s acceptance of appointment as provided in this Section. 
 The Trustee may resign and be
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notifying the Corporation. The Holders of a majority in principal amount of the then outstanding Securities may remove the Trustee with respect to such
Securities by so notifying the Trustee and the Corporation. The Corporation may remove the Trustee with respect to the Securities if: (i) the Trustee fails to comply with Section 8.10 or TIA § 310; (ii) the Trustee is adjudged a
bankrupt or an insolvent or an order for relief is entered with respect to the Trustee under any Bankruptcy Law; (iii) a Custodian or public officer or receiver takes charge of the Trustee or its property; or (iv) the Trustee becomes
incapable of acting. 
 If the Trustee resigns or is removed or if a vacancy exists in the office of the Trustee for any reason, the
Corporation shall promptly appoint a successor Trustee. The Trustee shall be entitled to payment of its fees and reimbursement of its expenses while acting as Trustee. Within one year after the successor Trustee takes office, the Holders of at least
a majority in principal amount of then outstanding Securities may appoint a successor Trustee with respect to such Securities to replace the successor Trustee appointed by the Corporation. 
 If a successor Trustee does not take office within 30 days after the retiring Trustee resigns or is removed, the retiring Trustee, the Corporation or the
Holders of at least 10% in principal amount of the then outstanding Securities may petition any court of competent jurisdiction for the appointment of a successor Trustee. 
 If the Trustee fails to comply with clauses (i) through (iv) of the second paragraph of this Section with respect to the Securities, any Holder
of such Securities may petition any court of competent jurisdiction for the removal of the Trustee and the appointment of a successor Trustee with respect to such Securities. 
 A successor Trustee shall deliver a written acceptance of its appointment to the retiring Trustee and to the Corporation. Thereupon 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 Corporation shall mail a notice of the successor Trustee’s succession to
Holders. The retiring Trustee shall promptly transfer all property held by it as Trustee for the Securities to the successor Trustee for the Securities, subject to the lien 

  

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provided for in Section 8.07. Notwithstanding replacement of the Trustee pursuant to this Section 8.08, the Corporation’s obligations under
Section 8.07 hereof shall continue for the benefit of the retiring Trustee with respect to expenses, losses and liabilities incurred by it prior to such replacement. 
 SECTION 8.09. Successor Trustee by Merger. Etc. Subject to Section 8.10, if the Trustee consolidates with, merges or converts into, or transfers all or substantially all of its corporate trust business to,
another corporation or national banking association, the successor entity without any further act shall be the successor Trustee. In case any Securities have been authenticated, but not delivered, by the Trustee then in office, any successor by
merger, conversion or consolidation of such authenticating trustee may adopt such authentication and deliver the Securities so authenticated with the same effect as if such successor Trustee had itself authenticated such Securities. 
 SECTION 8.10. Eligibility; Disqualification. There shall at all times be a Trustee hereunder which shall be a corporation organized and doing
business under the laws of the United States of America or of any state thereof or the District of Columbia authorized under such laws to exercise corporate trust powers, shall be subject to supervision or examination by Federal or state authority
or a District of Columbia authority and shall have combined capital and surplus of at least $50,000,000 as set forth in its most recent published annual report of condition. 
 Subject to the preceding paragraph, this Indenture shall always have a Trustee who satisfies the requirements of TIA § 310(a)(l) and (5). The
Trustee is subject to TIA § 310(b). 
 SECTION 8.11. Preferential Collection of Claims Against the Corporation. The Trustee is
subject to TIA § 311(a), excluding any creditor relationship listed in TIA § 311(b). A trustee who has resigned or been removed shall be subject to TIA § 311(a) to the extent indicated therein. 
  

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 ARTICLE IX 
 Discharge of Indenture; Defeasance 
 SECTION 9.01. Discharge of Liability on Securities;
Defeasance. (a) When (i) the Corporation delivers to the Trustee all outstanding Securities for cancellation or (ii) all outstanding Securities have become due and payable or will become due and payable at their Stated Maturity
within one year and the Corporation irrevocably deposits with the Trustee funds sufficient to pay at maturity or upon redemption all outstanding Securities, including interest thereon, and if in either case the Corporation pays all other sums
payable hereunder by the Corporation, then this Indenture shall, subject to Sections 9.0l(c), 9.02 and 9.06, cease to be of further effect. The Trustee shall acknowledge satisfaction and discharge of this Indenture on demand of the Corporation
accompanied by an Officers’ Certificate and an Opinion of Counsel and at the cost and expense of the Corporation. 
 (b) Subject to
sections 9.01(c), 9.02 and 9.06, the Corporation at any time may terminate (i) all its obligations under the Securities and this Indenture (“legal defeasance option”) or (ii) its obligations under Sections 3.03, 3.04, 3.05, 3.06,
3.07, 3.08, 3.09, 3.10, 5.01, 7.01(4), 7.01(5), 7.01(6) and 7.01(7) (with respect to Restricted Subsidiaries), and 6.01(a)(iv) and 6.01(a)(vi) (“covenant defeasance option”). The Corporation may exercise its legal defeasance option
notwithstanding its prior exercise of its covenant defeasance option. 
 If the Corporation exercises its legal defeasance option, payment of
the Securities may not be accelerated because of an Event of Default. If the Corporation exercises its covenant defeasance option, payment of the Securities may not be accelerated because of an Event of Default specified in Sections 7.01(3) (other
than with respect to Section 6.01), 7.01(4), 7.01(5), 7.01(6) or 7.01(7) (only with respect to Restricted Subsidiaries) or because of the failure of the Corporation to comply with Sections 6.01(a)(iv) or 6.01(a)(vi). 
 Upon satisfaction of the conditions set forth herein and upon request of the Corporation, the Trustee shall acknowledge in writing the discharge of those
obligations that the Corporation terminates. 
  

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 (c) Notwithstanding clauses (a) and (b) above, the Corporation’s obligations in Sections
2.03, 2.04, 2.05, 2.06, 2.07, 8.07, 8.08, 9.04, 9.05 and 9.06 shall survive until the Securities have been paid in full. Thereafter, the Corporation’s obligations in Sections 8.07, 9.04 and 9.05 shall survive. 
 SECTION 9.02. Conditions to Defeasance. The Corporation may exercise its legal defeasance option or its covenant defeasance option only if:

 (1) the Corporation irrevocably deposits in trust with the Trustee money or U.S. Government Obligations for the payment of
principal and interest on the Securities to maturity or an earlier redemption in accordance with the terms of this Indenture; 
 (2) the Corporation delivers to the Trustee a certificate from a nationally recognized firm of independent accountants expressing their opinion that the payments of principal and interest when due and without reinvestment on the deposited
U.S. Government Obligations plus any deposited money without investment will provide cash at such times and in such amounts as will be sufficient to pay principal and interest when due on all the Securities to maturity; 
 (3) 90 days pass after the deposit is made and during the 90-day period no Default specified in Section 7.01(6) or (7) with
respect to the Corporation occurs which is continuing at the end of the period; 
 (4) the deposit does not constitute a
default under any other material agreement to which the Corporation is a party; 
 (5) the Corporation delivers to the Trustee
an Opinion of Counsel to the effect that the trust resulting from the deposit does not constitute, or is qualified as, a regulated investment company under the Investment Corporation Act of 1940; 
 (6) in the case of the legal defeasance option, the Corporation shall have delivered to the Trustee an Opinion of Counsel stating that
(i) the Corporation has received from the Internal Revenue Service or Revenue Canada a ruling, or (ii) since the date of this Indenture there has been a change in the applicable 

  

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U.S. Federal income tax law, in either case to the effect that, and based thereon such Opinion of Counsel shall confirm that, the Holders will not recognize
income, gain or loss for U.S. Federal income tax, Canadian Federal or provincial income tax, or certain other tax purposes as a result of such deposit and defeasance and will be subject to U.S. Federal income tax, Canadian Federal or provincial
income tax and other taxes on the same amount, in the same manner and at the same times as would have been the case if such deposit and defeasance had not occurred; 
 (7) in the case of the covenant defeasance option, the Corporation shall have delivered to the Trustee an Opinion of Counsel to the effect
that the Holders will not recognize income, gain or loss for U.S. Federal income tax, Canadian Federal or provincial income tax or certain other tax purposes as a result of such deposit and covenant defeasance and will be subject to U.S. Federal
income tax, Canadian Federal or provincial income tax and other taxes on the same amount, in the same manner and at the same times as would have been the case if such deposit and covenant defeasance had not occurred; and 
 (8) the Corporation delivers to the Trustee an Officers’ Certificate and an Opinion of Counsel, each stating that all conditions
precedent to the defeasance and discharge of the Securities as contemplated by this Article IX have been complied with. 
 SECTION 9.03.
Application of Trust Money. The Trustee shall hold in trust money or U.S. Government Obligations deposited with it pursuant to this Article IX. It shall apply the deposited money and the money from U.S. Government Obligations through the
Paying Agent and in accordance with this Indenture to the payment of principal of and interest on the Securities. 
 SECTION 9.04.
Repayment to Corporation. The Trustee and the Paying Agent shall promptly turn over to the Corporation upon request any excess money or securities held by them at any time. 
 Subject to any applicable abandoned property law, the Trustee and the Paying Agent shall pay to the Corporation upon written request any money held by
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remains unclaimed for two years, and, thereafter, Holders entitled to the money must look to the Corporation for payment as general creditors. 
 SECTION 9.05. Indemnity for Government Obligations. The Corporation shall pay and shall indemnify the Trustee against any tax, fee or other charge
imposed on or assessed against deposited U.S. Government Obligations or the principal and interest received on such U.S. Government Obligations. 
 SECTION 9.06. Reinstatement. If the Trustee or Paying Agent is unable to apply any money or U.S. Government Obligations in accordance with this Article IX 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 Corporation’s obligations under this Indenture and the Securities shall be revived and reinstated as though no deposit had occurred pursuant
to this Article IX until such time as the Trustee or Paying Agent is permitted to apply all such money or U.S. Government Obligations in accordance with this Article IX. 
 ARTICLE X  
 Amendments 
 SECTION 10.01. Without Consent of Holders. The Corporation and the Trustee may amend this Indenture or the Securities without prior notice to or
consent of any Holder: 
 (1) to cure any ambiguity, omission, defect or inconsistency; 
 (2) to provide for the assumption by a successor of the obligations of the Corporation under this Indenture; 
 (3) to provide for uncertificated Securities in addition to or in place of certificated Securities; provided, however, that
the uncertificated Securities are issued in registered form for purposes of Section 163(f) of the Code or in a manner such that the uncertificated Securities are described in Section 163(f)(2)(B) of the Code; 
  

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 (4) to add Guarantees with respect to the Securities or to secure the Securities;

 (5) to add to the covenants of the Corporation for the benefit of the Holders or to surrender any right or power herein
conferred upon the Corporation; 
 (6) to comply with any requirement of the SEC in connection with qualifying this Indenture
under the TIA; or 
 (7) to make any change that does not adversely affect the rights of any Holder in any material respect.

 After an amendment under this Section becomes effective, the Corporation shall mail to Holders a notice briefly describing such amendment.
The failure to give such notice to all Holders, or any defect therein, shall not impair or affect the validity of an amendment under this Section. 
 SECTION 10.02. With Consent of Holders. The Corporation and the Trustee may amend this Indenture or the Securities without prior notice to any Holder but with the written consent of the Holders of at least a majority in principal
amount of the Securities then outstanding (including consents obtained in connection with a tender offer or exchange for the Securities). However, without the consent of each Holder affected, an amendment may not: 
 (1) reduce the amount of Securities whose Holders must consent to an amendment; 
 (2) reduce the rate of or extend the time for payment of interest on any Security; 
 (3) reduce the principal of or extend the Stated Maturity of any Security; 
 (4) make any Security payable in money other than that stated in the Security; 
 (5) impair the right of any Holder to receive payment of principal of and interest on such Holder’s Securities on or after the due
dates therefor or to institute suit for the enforcement of any payment on or with respect to such Holder’s Securities; 
  

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 (6) subordinate in right of payment, or otherwise subordinate, the Securities to any
other obligations of the Corporation; 
 (7) make any change in the second sentence of this Section; 
 (8) reduce the premium payable upon the redemption of any Security or change the time of which any Security may or shall be redeemed under
Article IV; or 
 (9) make any change in Section 3.11 that adversely affects the rights of any Holder or amend the terms
of the Securities or this Indenture in a way that would result in the loss of an exemption from any of the Taxes described thereunder. 
 It
shall not be necessary for the consent of the Holders under this Section to approve the particular form of any proposed amendment, but it shall be sufficient if such consent approves the substance thereof. 
 After an amendment under this Section becomes effective, the Corporation shall mail to Holders a notice briefly describing such amendment. The failure to
give such notice to all Holders, or any defect therein, shall not impair or affect the validity of an amendment under this Section. 
 SECTION 10.03. Compliance with Trust Indenture Act. Every amendment to this Indenture or the Securities shall comply with the TIA as then in effect. 
 SECTION 10.04. Revocation and Effect of Consents and Waivers. A consent to an amendment or a waiver by a Holder of a Security shall bind the Holder and every subsequent Holder of that Security or portion of the
Security that evidences the same debt as the consenting Holder’s Security, even if notation of the consent or waiver is not made on the Security. However, any such Holder or subsequent Holder may revoke the consent or waiver as to such
Holder’s Security or portion of the Security if the Trustee receives the notice of revocation before the date the amendment or waiver becomes effective. After an amendment or waiver becomes effective, it shall bind every Holder. 
  

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 The Corporation may, but shall not be obligated to, fix a record date for the purpose of determining the
Holders entitled to give their consent or take any other action described above or required or permitted to be taken pursuant to this Indenture. If a record date is fixed, then notwithstanding the immediately preceding paragraph, those Persons who
were Holders at such record date (or their duly designated proxies), and only those Persons, shall be entitled to give such consent or to revoke any consent previously given or to take any such action, whether or not such Persons continue to be
Holders after such record date. No such consent shall be valid or effective for more than 120 days after such record date. 
 SECTION 10.05.
Notation on or Exchange of Securities. If an amendment changes the terms of a Security, the Trustee may require the Holder of the Security to deliver it to the Trustee. The Trustee may place an appropriate notation on the Security regarding
the changed terms and return it to the Holder. Alternatively, if the Corporation or the Trustee so determines, the Corporation in exchange for the Security shall issue and the Trustee shall authenticate a new Security that reflects the changed
terms. Failure to make the appropriate notation or to issue a new Security shall not affect the validity of such amendment. The term “Security” as used in this Section 10.05 shall be deemed to include the Global Security or Global
Securities. 
 SECTION 10.06. Trustee To Sign Amendments. The Trustee shall sign any amendment authorized pursuant to this Article X
if the amendment does not adversely affect the rights, duties, liabilities or immunities of the Trustee. If it does, the Trustee may but need not sign it. In signing such amendment the Trustee shall be entitled to receive indemnity reasonably
satisfactory to it and to receive, and (subject to Section 8.01) shall be fully protected in relying upon, an Officers’ Certificate and an Opinion of Counsel stating that (i) such amendment is authorized or permitted by this Indenture
and that all conditions precedent to the execution, delivery and performance of such amendment have been satisfied; (ii) the Corporation has all necessary corporate power and authority to execute and deliver the amendment and that the
execution, delivery and performance of such amendment has been duly authorized by all necessary corporate action; (iii) the execution, delivery and performance of the amendment do not conflict with, or result in the breach of or constitute a
default under any of the terms, conditions or provisions of (a) the 

  

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Indenture, (b) the Certificate of Incorporation or By-Laws of the Corporation, (c) any law or regulation applicable to the Corporation,
(d) any material order, writ, injunction or decree of any court or governmental instrumentality having jurisdiction over the Corporation or (e) any material agreement or instrument to which the Corporation is subject; (iv) such
amendment has been duly and validly executed and delivered by the Corporation, and the Indenture together with such amendment constitutes a legal, valid and binding obligation of the Corporation enforceable against the Corporation in accordance with
its terms, except as such enforceability may be limited by applicable bankruptcy, insolvency or similar laws affecting the enforcement of creditors’ rights generally and general equitable principles; and (v) the Indenture together with
such amendment complies with the TIA. 
 SECTION 10.07. Payment for Consent. Neither the Corporation nor any Affiliate of the
Corporation shall, directly or indirectly, pay or cause to be paid any consideration, whether by way of interest, fee or otherwise, to any Holder for or as an inducement to any consent, waiver or amendment of any of the terms or provisions of this
Indenture or the Securities unless such consideration is offered to be paid to all Holders that so consent, waive or agree to amend in the time frame set forth in solicitation documents relating to such consent, waiver or agreement. 
 ARTICLE XI  
 Miscellaneous

 SECTION 11.01. Trust Indenture Act Controls. If and to the extent that any provision of this Indenture limits, qualifies or
conflicts with the duties imposed by, or with a provision (an “incorporated provision”) included in this Indenture by operation of Sections 310 to 318, inclusive, of the TIA, such imposed duties or incorporated provision shall control.

 SECTION 11.02. Notices. Any notice or communication to the Corporation or the Trustee is duly given if in writing and delivered in
person or mailed by first-class mail, or sent by facsimile transmission confirmed in writing, in each case to the address set forth below: 
 If to the Corporation: 
 Domtar Inc. 
 395 de Maisonneuve Blvd. West 
 Montreal, Québec H3A 1L6 
 Tel. No. 514-848-5400 
 Fax
No. 514-848-6850 
 Attention of General Counsel 
  

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 If to the Trustee: 
 The Bank of New York 
 101 Barclay Street 
 New York, NY 10286 
 Tel.
No. 212-815-5359 
 Fax No. 212-815-5915 
 Attention of Corporate Trust Department 
 The Corporation or the Trustee by notice to the other may designate additional or
different addresses for subsequent notices or communications. 
 Any notice or communication to a Holder shall be mailed by first-class mail
to his address shown on the register kept by the Registrar. Failure to mail a notice or communication to a Holder or any defect in such notice or communication shall not affect its sufficiency with respect to other Holders. 
 If a notice or communication is mailed or sent in the manner provided above within the time prescribed, it is duly given, whether or not the addressee
receives it, except that notice to the Trustee shall only be effective upon receipt thereof by the Trustee. 
 If the Corporation mails a
notice or communication to Holders, it shall mail a copy to the Trustee and each Agent at the same time. 
  

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 SECTION 11.03. Communication 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 Securities. The Corporation, the Trustee, the Registrar and anyone else shall have the protection of TIA § 312(c). 
 SECTION 11.04. Certificate and Opinion as to Conditions Precedent. Upon any request or application by the Corporation to the Trustee to take any
action under this Indenture, the Corporation shall furnish to the Trustee: (i) an Officers’ Certificate (which shall include the statements set forth in Section 11.05) stating that, in the opinion of the signers, all conditions
precedent and covenants, if any, provided for in this Indenture relating to the proposed action have been complied with; and (ii) an Opinion of Counsel reasonably satisfactory to the Trustee (which shall include the statements set forth in
Section 11.05) stating that, in the opinion of such counsel, all such conditions precedent and covenants have been complied with. 
 SECTION 11.05. Statements Required in Certificate or Opinion. Each certificate or opinion with respect to compliance with a condition or covenant provided for in this Indenture shall include: (i) a statement that the person
making such certificate or opinion has read and understands such covenant or condition; (ii) 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; (iii) a statement that, in the opinion of such person, he has made such examination or investigation as is necessary to enable him to express an informed opinion as to whether or not such covenant or condition has been
complied with; and (iv) a statement as to whether or not, in the opinion of such person, such condition or covenant has been complied with. 
 SECTION 11.06. Rules by Trustee and Agents. The Trustee may make reasonable rules for action by or for a meeting of Holders. The Registrar or Paying Agent may make reasonable rules and set reasonable requirements for its functions.

 SECTION 11.07. No Recourse Against Others. All liability described in Section 17 of the Securities or the Indenture of any
incorporator, director, officer, employee or stockholder, as such, of the Corporation is waived and released. 
  

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 SECTION 11.08. Duplicate Originals. The parties may sign any number of copies of this Indenture.
One signed copy is enough to prove this Indenture. 
 SECTION 11.09. Governing Law. This Indenture and the Securities shall be
governed by and construed in accordance with the internal laws of the State of New York applicable to contracts made and to be performed entirely within such State without reference to principles of conflicts of laws. 
 SECTION 11.10. Successors. All agreements of the Corporation in this Indenture and the Securities shall bind its successors. All agreements of the
Trustee in this Indenture shall bind its successors. 
 SECTION 11.11. Severability. In case any provision in this Indenture or in the
Securities shall be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby. 
 SECTION 11.12. Consent to Jurisdiction and Service. The Corporation irrevocably submits to the jurisdiction of any Federal court (or, if such
court refuses to take jurisdiction, any New York State Court) located in the Borough of Manhattan in The City of New York over any suit, action or proceeding arising out of or relating to this Indenture or any Security. The Corporation irrevocably
waives, to the fullest extent permitted by law, any objection which it may have to the laying of the venue of any such suit, action or proceeding brought in such a court and any claim that any suit, action or proceeding brought in such a court has
been brought in any inconvenient forum. The Corporation agrees that final judgment in any such suit, action or proceeding brought in such a court shall be conclusive and binding upon the Corporation and may be enforced in the courts of Canada (or
any other courts to the jurisdiction of which the Corporation is subject) by a suit upon such judgment, provided that service of process is effected upon the Corporation in the manner specified in the following paragraph or as otherwise
permitted by law; provided, however, that the Corporation does not waive, and the foregoing provisions of this sentence shall not constitute or be deemed to constitute a waiver of, (i) any 

  

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right to appeal any such judgment, to seek any stay or otherwise to seek reconsideration or review of any such judgment in each case before the trial court
of a U.S. Federal or State court having appellate jurisdiction over such trial court or (ii) any stay of execution or levy pending an appeal from, or a suit, action or proceeding for reconsideration or review of, any such judgment. 

As long as any of the Securities remain outstanding, the Corporation will at all times have an authorized agent in the Borough of Manhattan, The City
of New York upon whom process may be served in any legal action or proceeding arising out of or relating to the Indenture or any Security. Service of process upon such agent and written notice of such service mailed or delivered to the Corporation
shall to the extent permitted by law be deemed in every respect effective service of process upon the Corporation in any such legal action or proceeding. The Corporation hereby irrevocably appoints CT Corporation System, whose address is, as of the
date hereof, 1633 Broadway, New York, New York 10019, as its agent for such purpose until August 1, 2018, and covenants and agrees that service of process in any such legal action or proceeding may be made upon it at the office of such agent at
said address (or at such other address in the Borough of Manhattan, The City of New York, as the Corporation may designate by written notice to the Trustee). 
 The Corporation hereby consents to process being served in any suit, action or proceeding of the nature referred to in the preceding paragraphs by service upon such agent together with the mailing of a copy thereof by
registered or certified mail, postage prepaid, return receipt requested, to the address of the Corporation set forth in the first paragraph of this instrument or to any other address of which the Corporation shall have given written notice to the
Trustee. The Corporation irrevocably waives, to the fullest extent permitted by law, all claim of error by reason of any such service (but does not waive any right to assert lack of subject matter jurisdiction) and agrees that such service and
mailing (i) shall be deemed in every respect effective service of process upon the Corporation in any such suit, action or proceeding and (ii) shall, to the fullest extent permitted by law, be taken and held to be valid personal service.

 Nothing in this Section shall affect the right of the Trustee or any Holder to serve process in any manner 

  

 91 

 
permitted by law or limit the right of the Trustee to bring proceedings against the Corporation in the courts of any jurisdiction or jurisdictions.

 SECTION 11.13. Counterpart Originals. This Indenture may be signed in one or more counterparts. Each signed copy shall be an
original, but all of them together represent the same agreement. 
 SECTION 11.14. Benefits of Indenture. Nothing in this Indenture or
in the Securities, express or implied, shall give to any Person (other than the parties hereto and their successors hereunder, any Paying Agent, any Registrar or co-registrar and the Holders) any benefit or any legal or equitable right, remedy or
claim under this Indenture. 
  

 92 

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

			
	DOMTAR INC., as issuer,
		
	by	 	 /s/ Pierre Fitzgibbon

	Name:	 	Pierre Fitzgibbon
	Title:	 	Senior Vice-President and Chief Financial Officer
		
	by	 	 /s/ Christian Dubé

	Name:	 	Christian Dubé
	Title:	 	Vice-President and Treasurer

 [Seal] 
  

			
	Attest:
	
	 /s/ Nathalie Roussin

	Name:	 	Nathalie Roussin
	Title:	 	Legal Assistant

  

			
	 THE BANK OF NEW YORK, Trustee,

		
	 by
	 	  

	 Name:
	 	
	 Title:
	 	

 [Seal] 
  

			
	 Attest:
	 	
	
	  

	 Name:
	 	
	 Title:
	 	

  

 93 

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

			
	DOMTAR INC., as issuer,
		
	by	 	  

	Name:	 	
	Title:	 	

  

			
	 [Seal]

		
	 Attest:
	 	
	
	  

	 Name:
	 	
	 Title:
	 	

  

			
	THE BANK OF NEW YORK, Trustee,
		
	by	 	 /s/ MARY JANE MORRISSEY

	Name:	 	MARY JANE MORRISSEY
	Title:	 	VICE PRESIDENT

  

			
	[Seal]
	
	Attest:
	
	 /s/ PAUL J. SCHMALZEL

	Name:	 	PAUL J. SCHMALZEL
	Title:	 	Assistant Treasurer

 EXHIBIT A 
 FORM OF FACE OF 2016 DEBENTURE 
 DOMTAR INC. 
  

			
	 R – 1
	 	CUSIP No. 257561AT7

 THIS SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO. 
 UNLESS THIS SECURITY IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY TO DOMTAR INC. OR THE REGISTRAR FOR REGISTRATION OF TRANSFER OR
EXCHANGE AND ANY SECURITY ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER ENTITY AS HAS BEEN REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY (AND ANY PAYMENT HEREON IS MADE TO CEDE & CO. OR TO
SUCH OTHER ENTITY AS HAS BEEN REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL SINCE THE REGISTERED OWNER HEREOF,
CEDE & CO., HAS AN INTEREST HEREIN. 
 UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR THE INDIVIDUAL SECURITIES REPRESENTED HEREBY, THIS
GLOBAL SECURITY MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITARY TO A NOMINEE OF THE DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR BY A DEPOSITARY OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCCESSOR
DEPOSITARY AND TRANSFERS OF INTERESTS IN THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH THE RESTRICTIONS SET FORTH IN SECTION 2.06 OF THE INDENTURE, DATED AS OF JULY 31, 1996, BETWEEN DOMTAR INC. AND THE TRUSTEE NAMED
THEREIN, PURSUANT TO WHICH THIS SECURITY WAS ISSUED. 

 GLOBAL SECURITY 
 REPRESENTING 9-1/2% DEBENTURES DUE 2016 
 Domtar Inc., a corporation incorporated under the Canada
Business Corporations Act (such corporation, and its successors and assigns under the Indenture hereinafter referred to, being herein called the “Corporation”), for value received, hereby promises to pay to CEDE & CO., or its
registered assigns, the principal sum indicated on Schedule A hereof, on August 1, 2016. 
 Reference is hereby made to the further
provisions of this Security set forth on the reverse hereof, which further provisions shall for all purposes have the same effect as if set forth at this place. 
 Unless the certificate of authentication hereon has been duly executed by the Trustee referred to on the reverse hereof by manual signature, this Security shall not be entitled to any benefit under the Indenture or be
valid or obligatory for any purposes. 
  

 A-2 

 IN WITNESS WHEREOF, the Corporation has caused this Security to be duly executed under its corporate
seal. 
  

			
	DOMTAR INC.
		
	By:	 	  

	Name:	 	
	Title:	 	
		
	By:	 	  

	Name:	 	
	Title:	 	

  

	
	[Corporate Seal]
	
	Attest:
	
	  

	
	Dated:

  

			
	TRUSTEE’S CERTIFICATE OF AUTHENTICATION
		
		 	 THE BANK OF NEW YORK,
 as Trustee, certifies that this
is one of the Securities referred to in the Indenture.

		
	By:	 	  

	Name:	 	
	Title:	 	

  

 A-3 

 FORM OF REVERSE SIDE OF 2016 DEBENTURE 
 DOMTAR INC. 
 GLOBAL SECURITY 
 REPRESENTING 9-1/2% DEBENTURES DUE 2016 
 1. Indenture. 
 This Security is one of a duly authorized issue of debt securities of the Corporation designated as its “9-1/2% Debentures due 2016” (herein
called the “Securities”) limited in aggregate principal amount at Stated Maturity to $125,000,000 issued under an indenture dated as of July 31, 1996 (as amended from time to time, the “Indenture”) between the Corporation
and The Bank of New York, as trustee (the “Trustee,” which term includes any successor Trustee under the Indenture), to which Indenture reference is hereby made for a statement of the respective rights, limitations of rights, duties and
immunities thereunder of the Corporation, the Trustee and each Holder of Securities and of the terms upon which the Securities are, and are to be, authenticated and delivered. The summary of the terms of this Security contained herein does not
purport to be complete and is qualified by reference to the Indenture. All terms used in this Security which are not defined herein shall have the meanings assigned to them in the Indenture. 
 The Indenture imposes certain limitations on the ability of the Corporation and its Restricted Subsidiaries to, among other things, make certain
Restricted Payments, incur Indebtedness, enter into consensual restrictions upon the payment of certain dividends and distributions by such Restricted Subsidiaries, enter into or permit certain transactions with Affiliates, enter into certain Sale
and Leaseback Transactions, create or incur Liens and make Asset Sales. The Indenture also imposes limitations on the ability of the Corporation to amalgamate, consolidate or merge with or into any other Person, or sell, convey, assign, transfer,
lease or otherwise dispose of all or substantially all of the Property of the Corporation to any other Person. 
 After the Corporation has
reached Investment Grade Status, and notwithstanding that the rating assigned to the Corporation may later cease to be an Investment Grade Rating by either of the Rating Agencies or both, the Corporation and its Restricted Subsidiaries will be
released from their 

  

 A-4 

 
obligations to comply with certain of the limitations referred to above. However, the Corporation and its Restricted Subsidiaries will remain obligated to
comply with certain other of such limitations upon reaching Investment Grade Status. 
 2. Principal and Interest. 
 The Corporation promises to pay the principal amount set forth on Schedule A of this Security to the Holder hereof on August 1, 2016.

 The Corporation shall pay interest at a rate of 9-1/2% per annum, semiannually on February 1 and August 1 of each
year (each, an “Interest Payment Date”), commencing on February 1, 1997, in cash to the Holder hereof until the principal amount hereof is paid or made available for payment. The interest so payable, and punctually paid or duly
provided for, on any Interest Payment Date will, subject to certain exceptions provided in the Indenture, be paid to the Person in whose name this Security (or the Security in exchange or substitution for which this Security was issued) is
registered at the close of business on the record date for interest payable on such Interest Payment Date (the “Record Date”). The Record Date for any interest payment is the close of business on the preceding January 15 or
July 15, as the case may be, whether or not a Business Day, immediately preceding the Interest Payment Date on which such interest is payable. Any such interest not so punctually paid or duly provided for (“Defaulted Interest”) shall
forthwith cease to be payable to the Holder on such Record Date and shall be paid as provided in Section 2.12 of the Indenture. Interest will be computed on the basis of a 360-day year of twelve 30-day months. For disclosure purposes under the
Interest Act (Canada), whenever in the Indenture or the Securities interest at a specified rate is to be calculated on the basis of a period less than a calendar year, the yearly rate of interest to which such rate is equivalent is such rate
multiplied by the actual number of days in the relevant calendar year and divided by the number of days in such period. 
 Each payment of
interest in respect of an Interest Payment Date will include interest accrued through the day before such Interest Payment Date. If an Interest Payment Date falls on a day that is not a Business Day, the interest payment to be made on such Interest
Payment Date will be made on the next succeeding Business Day with the same force 

  

 A-5 

 
and effect as if made on such Interest Payment Date, and no additional interest will accrue as a result of such delayed payment. 
 To the extent lawful, the Corporation shall pay interest on (i) any overdue principal of (and premium, if any, on) this Security, at the interest
rate borne on this Security, and (ii) Defaulted Interest (without regard to any applicable grace period), at the same rate. The Corporation’s obligation pursuant to the previous sentence shall apply whether such overdue amount is due at
its Stated Maturity, as a result of the Corporation’s obligations pursuant to Section 3.07 or Section 5.01 of the Indenture, or otherwise. 
 3. Method of Payment. 
 The Corporation, through the Paying Agent, shall pay interest on this Security
to the registered Holder of this Security, as provided above. The Holder must surrender this Security to a Paying Agent to collect principal payments. The Corporation will pay principal and interest in money of the United States of America that at
the time of payment is legal tender for payment of all debts public and private. Principal and interest will be payable in immediately available funds at the office of the Paying Agent but, at the option of the Corporation, interest may be paid by
check mailed to the registered Holders at their registered addresses. 
 4. Payment Agent and Registrar. 
 Initially, the Trustee will act as Paying Agent and Registrar under the Indenture and Montréal Trust Company will act as co-registrar. The
Corporation may, upon written notice to the Trustee, appoint and change any Paying Agent or Registrar. The Corporation or any of its subsidiaries may act as Paying Agent or Registrar. 
 5. Optional Redemption. 
 The
Securities will be subject to redemption, in whole or in part, at any time or from time to time, at the option of the Corporation on at least 30 days’ prior notice by mail at a redemption price equal to the greater of (i) 100% of the
principal amount of the Securities to be redeemed or (ii) the sum of the present values of the remaining scheduled payments of principal and interest 

  

 A-6 

 
thereon discounted to the date of redemption on a semiannual basis (assuming a 360-day year consisting of twelve 30-day months) at the Treasury Rate plus
62.5 basis points of the Securities, plus in each case accrued and unpaid interest to the date of redemption. On and after the date of redemption, interest will cease to accrue on the Securities or portions of Securities called for redemption on
such date. The Securities may be redeemed in part but only in integral multiples of US$1,000. 
 The Securities may be redeemed, at the
option of the Corporation, at any time as a whole but not in part, on not less than 30 nor more than 60 days’ notice, at 100% of the principal amount thereof, plus accrued and unpaid interest (if any) to the date of redemption (subject to the
right of Holders of record on the relevant record date to receive interest due on the relevant interest payment date), in the event the Corporation has become or would become obligated to pay, on the next date on which any amount would be payable
with respect to the Securities, any Additional Amounts with respect to the Securities as a result of a change in or an amendment to the laws (including any regulations promulgated thereunder) of Canada (or any political subdivision or taxing
authority thereof or therein), or any change in or amendment to any official position regarding the application or interpretation of such laws or regulations, which change or amendment is announced or becomes effective on or after July 26,
1996. 
 Any notice to the Holders of the Securities of such a redemption need not set forth the redemption price of such Securities but need
only set forth the calculation thereof as described in the first paragraph of this section entitled “Optional Redemption”. The redemption price, calculated as aforesaid, shall be set forth in an Officers’ Certificate delivered to the
Trustee no later than two business days prior to the redemption date. 
 6. No Sinking Fund. 
 The Securities are not subject to any mandatory sinking fund. 
 7. Purchase of Securities at the Option of Holders upon a Change of Control. 
 Upon the occurrence of
a Change of Control Triggering Event with respect to the Securities, each Holder 

  

 A-7 

 
of Securities shall have the right to require the Corporation to purchase such Holder’s Securities, in whole, or in part in a principal amount that is
an integral multiple of $1,000, pursuant to a Change of Control Offer, at a purchase price in cash equal to 101% of the principal amount thereof on any Change of Control Payment Date plus accrued and unpaid interest, if any, to the Change of Control
Payment Date (subject to the right of Holders of record on the relevant Record Date to receive interest due on the relevant Interest Payment Date). 
 Within 30 calendar days following any Change of Control Triggering Event, the Corporation shall send, or cause to be sent, by mail, a notice regarding the Change of Control Offer to each Holder of Securities. The Holder of this Security may
elect to have this Security or a portion hereof in an authorized denomination purchased by completing the form entitled “Option of Holder to Elect Purchase” appearing below and tendering this Security pursuant to the Change of Control
Offer. Unless the Corporation defaults in the payment of the Change of Control Payment with respect thereto, all Securities or portions thereof accepted for payment pursuant to the Change of Control Offer will cease to accrue interest from and after
the Change of Control Payment Date. 
 8. Purchase of Securities at the Option of Holders upon an Asset Sale. 
 If at any time the Corporation or any Restricted Subsidiary engages in any Asset Sale, as a result of which the aggregate amount of Excess Proceeds
exceeds US $20 million, the Corporation shall, within five Business Days of the date the amount of Excess Proceeds exceeds US $20 million, make an offer to purchase from all Holders, on a pro rata basis, Securities in an amount equal to the
Allocable Excess Proceeds at a purchase price in cash equal to an amount not less than 100% of the principal amount thereof on any date of purchase plus accrued and unpaid interest thereon, if any, to the date of purchase. If the aggregate principal
amount of all Securities surrendered for purchase by Holders thereof exceeds the amount of Allocable Excess Proceeds, then the Trustee shall select the Securities to be purchased pro rata according to principal amount or by lot with such adjustments
as may be deemed appropriate by the Corporation so that only Securities in denominations of US $1,000, or integral multiples thereof, shall be purchased. Upon completion of a Prepayment Offer 

  

 A-8 

 
(including payment for accepted Securities), the Corporation may use any surplus Allocable Excess Proceeds for general corporate purposes, with any Unoffered
Excess Proceeds constituting Excess Proceeds in respect of the Securities for purposes of the first Prepayment Offer that is made after the Fifth Anniversary. 
 Notwithstanding the preceding paragraph, in no event shall the Corporation be required to repurchase or make a Prepayment Offer or Prepayment Offers to purchase more than 25% of the original aggregate principal amount
of the Securities on or prior to the Fifth Anniversary. If the aggregate Allocable Excess Proceeds (disregarding any resetting to zero pursuant to the preceding paragraph) resulting from Asset Sales occurring on or prior to the Fifth Anniversary
that, but for the first sentence of this paragraph, the Corporation would be required to apply to repurchase or make an offer or offers to purchase Securities, less any Deficiencies resulting from any Prepayment Offer made on or prior to the Fifth
Anniversary, constitute Unoffered Excess Proceeds, then, subject to and in accordance with the procedures set forth in the Indenture, within five Business Days after the Fifth Anniversary the Corporation shall make a Prepayment Offer for the
Securities in an amount equal to the Unoffered Excess Proceeds applicable to the Securities. 
 Within five Business Days of the date the
amount of Excess Proceeds exceeds US $20 million, the Corporation shall, if it is obligated to make a Prepayment Offer, send a written notice, by first-class mail, to each Holder of Securities. The Holder of this Security may elect to have this
Security or a portion hereof in an authorized denomination purchased by completing the form entitled “Option of Holder to Elect Purchase” appearing below and tendering this Security pursuant to the Prepayment Offer. Unless the Corporation
defaults in the payment of the purchase price with respect thereto, all Securities or portions thereof selected for payment pursuant to the Prepayment Offer will cease to accrue interest from and after the date of purchase. 
 9. The Global Security. 
 So long as
this Global Security is registered in the name of the Depositary or its nominee, members of, or participants in, the Depositary (“Agent Members”) shall have no rights under the Indenture with respect to this Global 

  

 A-9 

 
Security held on their behalf by the Depositary or the Trustee as its custodian, and the Depositary may be treated by the Corporation, the Trustee and any
agent of the Corporation or the Trustee as the absolute owner of this Global Security for all purposes. Notwithstanding the foregoing, nothing herein shall (i) prevent the Corporation, the Trustee or any agent of the Corporation or the Trustee,
from giving effect to any written certification, proxy or other authorization furnished by the Depositary or (ii) impair, as between the Depositary and its Agent Members, the operation of customary practices governing the exercise of the rights
of a Holder of Securities. 
 The Holders of this Global Security may grant proxies and otherwise authorize any Person, including Agent
Members and Persons that may hold interests in this Global Security through Agent Members, to take any action which a Holder of Securities is entitled to take under the Indenture or the Securities. 
 Whenever, as a result of optional redemption by the Corporation, a Change of Control Offer, a Prepayment Offer or an exchange for certificated
Securities, this Global Security is redeemed, repurchased or exchanged in part, this Global Security shall be surrendered by the Holder thereof to the Trustee who shall cause an adjustment to be made to Schedule A hereof so that the principal amount
of this Global Security will be equal to the portion not redeemed, repurchased or exchanged and shall thereafter return this Global Security to such Holder; provided that this Global Security shall be in a principal amount of $1,000 or an
integral multiple of $1,000. 
 10. Transfer and Exchange. 
 The Holder of this Global Security shall, by acceptance of this Global Security, agree that transfers of beneficial interests in this Global Security may
be effected only through a book entry system maintained by such Holder (or its agent), and that ownership of a beneficial interest in the Securities represented thereby shall be required to be reflected in book entry form. 
 Transfers of this Global Security shall be limited to transfers in whole, and not in part, to the Depositary, its successors and their respective
nominees. Interests of beneficial owners in this Global Security may be transferred in accordance with the rules and procedures of the Depositary (or its successors). 
  

 A-10 

 11. Denominations. 
 The Securities are issuable only in registered form without coupons in denominations of $1,000 and integral multiples thereof of principal amount. 
 12. Unclaimed Money. 
 If money for
the payment of principal or interest remains unclaimed for two years, the Trustee or Paying Agent shall pay the money back to the Corporation at its written request unless the applicable abandoned property law designates another Person. After any
such payment, Holders entitled to the money must look only to the Corporation and not to the Trustee for payment unless such abandoned property law designates another Person. 
 13. Discharge and Defeasance. 
 Subject to certain conditions, the Corporation at any time may terminate some or all of its obligations under the Securities and the Indenture if the Corporation irrevocably deposits with the Trustee money or U.S. Government Obligations for
the payment of principal and interest on the Securities to maturity. 
 14. Amendment, Waiver. 
 Subject to certain exceptions set forth in the Indenture, (i) the Indenture or the Securities may be amended without prior notice to any Holder but
with the written consent of the Holders of at least a majority in principal amount of the outstanding Securities and (ii) any past Default and its consequences may be waived with the written consent of the Holders of at least a majority in
principal amount of the outstanding Securities. Subject to certain exceptions set forth in the Indenture, without the consent of any Holder of Securities, the Corporation and the Trustee may amend the Indenture or the Securities (i) to add
additional covenants or to surrender rights and powers conferred on the Corporation; (ii) to provide for uncertificated Securities in addition to or in place of certificated Securities; (iii) to add Guarantees with respect to the
Securities or to secure the Securities; (iv) to cure any ambiguity, omission, defect or inconsistency; (v) to make any change that does not adversely affect the rights of any Holder in any material respect; (vi) to comply with the
requirements of the SEC in 
  

 A-11 

 
order to effect or maintain the qualification of the Indenture under the TIA; or (vii) to provide for the assumption by a successor of the obligations
of the Corporation under the Indenture. 
 15. Defaults and Remedies. 
 If an Event of Default occurs and is continuing, the Trustee or the Holders of at least 25% in principal amount of the Securities, subject to certain
limitations, may declare the principal amount of all the Securities then outstanding, plus accrued but unpaid interest to the date of acceleration, to be immediately due and payable. Certain events of bankruptcy or insolvency are Events of Default
and shall result in the principal amount of all the Securities then outstanding, plus accrued but unpaid interest to the date of acceleration, being immediately due and payable upon the occurrence of such Events of Default without any further act of
the Trustee or any Holder. 
 Holders of Securities may not enforce the Indenture or the Securities except as provided in the Indenture. The
Trustee may refuse to enforce the Indenture or the Securities unless it receives reasonable indemnity or security. Subject to certain limitations, Holders of a majority in principal amount of the Securities may direct the Trustee in its exercise of
any trust or power under the Indenture. The Holders of a majority in principal amount of the outstanding Securities, by written notice to the Corporation and the Trustee, may rescind any declaration of acceleration and its consequences if the
rescission would not conflict with any judgment or decree, and if all Events of Default have been cured or waived except nonpayment of principal or accrued but unpaid interest that has become due solely because of the acceleration. 
 16. Individual Rights of Trustee. 
 Subject to certain limitations imposed by the TIA, the Trustee or any Paying Agent or Registrar, in its individual or any other capacity, may become the owner or pledgee of Securities and may otherwise deal with the Corporation or its
Affiliates with the same rights it would have if it were not Trustee, Paying Agent or Registrar, as the case may be, under the Indenture. 
  

 A-12 

 17. No Recourse Against Certain Others. 
 No director, officer, employee, incorporator or stockholder of the Corporation, as such, shall have any liability for any obligations of the Corporation
under the Securities or the Indenture or for any claim based on, in respect of, or by reason of, such obligations or their creation, solely by reason of its status as a director, officer, employee, incorporator or stockholder of the Corporation. By
accepting a Security, each Holder waives and releases all such liability (but only such liability) as part of the consideration for issuance of such Security to such Holder. 
 18. Governing Law. 
 THE INDENTURE AND
THIS SECURITY SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE INTERNAL LAWS OF THE STATE OF NEW YORK APPLICABLE TO CONTRACTS MADE AND TO BE PERFORMED ENTIRELY WITHIN SUCH STATE WITHOUT REFERENCE TO PRINCIPLES OF CONFLICTS OF LAWS.

 The Corporation will furnish to any Holder of Securities upon written request and without charge to the Holder a copy of the Indenture
which has in it the text of this Security. Requests may be made to: 
 Domtar Inc. 
 395 de Maisonneuve Blvd. West 
 Montreal, Quebec H3A 1L6 
 Attention: General Counsel 
 19. Ranking. 
 The Securities will be
senior unsecured obligations of the Corporation, will rank pari passu in right of payment with all existing and future senior indebtedness of the Corporation, including indebtedness pursuant to the Credit Agreement, and principal, premium (if
any) and interest with respect to the Securities will be senior in right of payment to all future subordinated indebtedness of the Corporation. Holders of secured indebtedness or other obligations of the Corporation, including indebtedness pursuant
to the Credit Agreement, will have a prior claim on the assets of the Corporation securing such indebtedness or obligation to the extent of such indebtedness or obligation. 
  

 A-13 

 SCHEDULE A 
 SCHEDULE OF PRINCIPAL AMOUNT 
 The initial principal amount of this Security shall be $125,000,000. The following
decreases in the principal amount of this Security have been made: 
  

							
	 Date of Decrease
	 	 Decrease in Principal
 Amount at Maturity
	 	 Total Principal
 Amount at Maturity
 Following such
Decrease
	 	 Notation Made
 by or on Behalf
 of Trustee

		 		 		 	
		 		 		 	
		 		 		 	
		 		 		 	
		 		 		 	
		 		 		 	
		 		 		 	
		 		 		 	
		 		 		 	
		 		 		 	
		 		 		 	
		 		 		 	
		 		 		 	
		 		 		 	
		 		 		 	
		 		 		 	

  

 A-14 

 ASSIGNMENT 
 (To be executed by the registered Holder 
 if such Holder desires to transfer this Security) 
 FOR VALUE RECEIVED
                                        
hereby sells, assigns and transfers unto 
 PLEASE INSERT SOCIAL SECURITY OR OTHER TAX IDENTIFYING NUMBER OF TRANSFEREE 
  
  

 (Please print name and address of transferee) 
  

 this Security, together with all right, title and interest herein, and does hereby irrevocably constitute and appoint
                                 Attorney to transfer this Security on the
Security Register, with full power of substitution. 
 Dated:
                     
  

					
	  
	 		  	  

	 Signature of Holder
	 		  	Signature Guaranteed:
		 		  	Member of Securities Transfer Agent
		 		  	Medallion Program

 NOTICE: The signature to the foregoing Assignment must correspond to the name as written upon the face of this
Security in every particular, without alteration or any change whatsoever. 
  

 A-15 

 OPTION OF HOLDER TO ELECT PURCHASE 
 (check as appropriate) 
  

	 ̈	In connection with the Change of Control Offer made pursuant to Section 5.01 of the Indenture, the undersigned hereby elects to have 

  

	 	 ̈	the entire principal amount 

  

	 	 ̈	$             ($1,000 in principal amount or an integral multiple thereof) of this Security

 purchased by the Corporation. The undersigned hereby directs the Trustee or Paying Agent to pay it or
                                 an amount in cash equal to 101% of the principal
amount indicated in the preceding sentences plus accrued and unpaid interest thereon, if any, to the Change of Control Payment Date. 
  

	 ̈	In connection with the Prepayment Offer made pursuant to Section 3.07 of the Indenture, the undersigned hereby elects to have 

  

	 	 ̈	the entire principal amount 

  

	 	 ̈	$             ($1,000 in principal amount or an integral multiple thereof) of this Security

 purchased by the Corporation. The undersigned hereby directs the Trustee or Paying Agent to pay it or
                                 an amount in cash equal to 100% of the principal
amount indicated in the preceding sentence plus accrued and unpaid interest thereon, if any, to the date of purchase. 
 Dated:
                             
  

					
	  
	  		  	  

	Signature of Holder	  		  	Signature Guaranteed:
		  		  	Member of Securities Transfer Agent
		  		  	Medallion Program

 NOTICE: The signature to the foregoing must correspond to the name as written upon the face of this Security in
every particular, without alteration or any change whatsoever. 
  

 A-16Indenture, dated as of August 5, 1987

 Exhibit 4.5 
 TRUST INDENTURE 
 between 
 DOMTAR INC. 
 and 
 COMPAGNIE MONTREAL TRUST – 
 MONTREAL TRUST COMPANY 
 In respect of 
 10.85% Debentures due
2017 

 TRUST INDENTURE 
 between 
 DOMTAR INC. 
 and 
 COMPAGNIE MONTREAL TRUST – 
 MONTREAL TRUST COMPANY 
 In respect
of 
 10.85% Debentures due 2017 
 Bearing formal date of August 5, 1987 

 THIS INDENTURE dated as of August 5, 1987 between DOMTAR INC., a corporation continued under the
Canada Business Corporations Act (herein called the “Company”) having its principal office at 395 de Maisonneuve Blvd. West, Montreal, Quebec, H3A 1L6 and MONTREAL TRUST COMPANY – COMPAGNIE MONTREAL TRUST, a Quebec corporation duly
authorized to carry on the business of a trust company (herein called the “Trustee”). 
 Recitals of the Company 
 The Company has duly authorized the creation of an issue of its 10.85% Debentures due 2017 (herein called the “Securities”) of substantially
the tenor and amount herein set forth, and to provide therefor the Company has duly authorized the execution and delivery of this Indenture. 
 All things necessary to make the Securities, when executed by the Company and authenticated and delivered by the Trustee hereunder and duly issued by the Company, the valid obligations of the Company, and to make this Indenture a valid
agreement of the Company, in accordance with their and its terms, have been done. 
 NOW, THEREFORE, THIS INDENTURE WITNESSETH: 

For and in consideration of the premises and the acquisition of the Securities by the Holders thereof, it is mutually covenanted and agreed, for the
benefit of all Holders of the Securities and the coupons thereto appertaining, as follows: 

 ARTICLE ONE 
 Definitions and Other Provisions of General 
 Application 
 Section 101. Definitions. 
 (a) For all
purposes of this Indenture, except as otherwise expressly provided or unless the context otherwise requires: 
 “This
Indenture” means this instrument as originally executed or as it may from time to time be supplemented or amended by one or more indentures supplemental hereto entered into pursuant to the applicable provisions hereof. 
 All references in this instrument to designated “Articles”, “Sections” and other subdivisions are to the designated
Articles, Sections and other subdivisions are to the designated Articles, Sections and other subdivisions of this instrument as originally executed. The words “herein”, “hereof”, “hereunder” and “herewith” and
other words of similar import refer to this Indenture as a whole and not to any particular Article, Section or other subdivision. 
 (b) All
accounting terms not otherwise defined herein have the meanings assigned to them in accordance with generally accepted accounting principles in Canada and, except as otherwise herein expressly provided, the term “generally accepted accounting
principles” with respect to any computation required or permitted hereunder shall mean such accounting principles as are generally accepted in Canada at the date or time of such computation; 
  

 - 2 - 

 (c) The terms defined in this Article have the meanings assigned to them in this Article, and include the
plural as well as the singular. 
 “Act” when used with respect to any Securityholder has the meaning specified in
Section 103. 
 “Affiliate” of any specified Person means any other Person directly or indirectly controlling or controlled by
or under direct or indirect common control with such specified Person. For the purposes of this definition, “control” when used with respect to any specified Person means the ownership, directly or indirectly, of more than 50% of the
Voting Stock of such Person; and the terms “controlling” and “controlled” have meanings correlative to the foregoing. 
 “Attributable Obligation” means, in respect of a Sale and Leaseback Transaction, the present value (discounted at the rate of interest implicit in such transaction, if known, or at the rate of 10.85% if such implicit rate is not
known) of the obligation of the lessee for the net rental payments (as described below) during the remaining term of the lease (including any period for which such lease has been extended or may, at the option of the lessor, be extended) entered
into in connection therewith, such present value to be established as at the date as at which the ratio between Exempted Debt and Consolidated Net Tangible Assets is determined and in accordance with generally accepted accounting principles. The
term “net rental payments” under any lease for any period shall mean the sum of the rental and other payments required to be paid in such period by the lessee thereunder, not including, however, any amounts required to be paid by such
lessee (whether or not designated as rental or additional rental) on account of indemnities (other than any 

  

 - 3 - 

 
constituting basic rent) or maintenance and repairs, insurance, taxes, assessments, water rates, utilities or similar charges required to be paid by such
lessee thereunder or any amounts required to be paid by such lessee thereunder contingent upon the amount of sales, production or other measures of economic performance, maintenance and repairs, insurance, taxes, assessments, water rates, utilities
or similar charges. 
 “Authorized Newspaper” means a newspaper of general circulation in the relevant area, printed in the English
language and, if the relevant area is in the Province of Quebec, also in the French language, and customarily published on each business day, whether or not published on Saturdays, Sundays or holidays. Whenever successive weekly publications in an
Authorized Newspaper are required hereunder they may be made (unless otherwise expressly provided herein) on the same or different days of the week and in the same or in different Authorized Newspapers. 
 “Board of Directors” means either the board of directors of the Company or any duly authorized committee or member of the board. 
 “Board Resolution” means a copy of a resolution certified by the Secretary or an Assistant Secretary of the Company or by another officer of
the Company acceptable to the Trustee as having been duly adopted by the Board of Directors and to be in full force and effect on the date of such certification, and delivered to the Trustee. 
 “Branch Security Register” and “Branch Security Registrar” have the respective meanings specified in Section 305. 
 “Business Day”, when used with respect to any Place of Payment, means each Monday, Tuesday, 

  

 - 4 - 

 
Wednesday, Thursday and Friday which is not a day on which banking institutions in that Place of Payment are authorized or obligated by law to close for the
entire day. 
 “Capitalized Lease Obligation” means, with respect to any Person, any obligation of such Person as lessee with
respect to any lease that is required to be capitalized on its balance sheet in accordance with generally accepted accounting principles. The amount of any Capitalized Lease Obligation at any time shall be the amount at which it is carried on the
balance sheet of the lessee at such time in accordance with such principles. 
 “Central Security Register” has the meaning
specified in Section 305. 
 “Company” means the Person named as the “Company” in the first paragraph of this
instrument until a successor corporation shall have become such pursuant to the applicable provisions of this Indenture, and thereafter “Company” shall mean such successor corporation. 
 “Company Request”, “Company Order” and “Company Consent” mean, respectively, a written request, order or consent delivered
to the Trustee after having been signed in the name of the Company by its Chairman of the Board, President or a Vice-President, and by its Secretary, an Assistant Secretary, its Treasurer, an Assistant Treasurer, its Controller or an Assistant
Controller or by any two officers of the Company duly authorized for the purpose by a Board Resolution and acceptable to the Trustee. 
 “Consolidated Funded Debt” of the Company and its Restricted Subsidiaries means all Funded Debt of the Company and its Restricted Subsidiaries on a consolidated basis, determined in accordance with generally accepted accounting
principles. 
  

 - 5 - 

 “Consolidated Net Income”, with reference to any period, of the Company and its Subsidiaries
means the aggregate of the net income of the Company and its Subsidiaries, excluding all extraordinary items, after eliminating all intercompany items and portions of earnings properly attributable to minority interest in shares of such
Subsidiaries, all computed in accordance with generally accepted accounting principles. 
 “Consolidated Net Tangible Assets”, with
respect to the Company and its Restricted Subsidiaries, means the total of all assets appearing on a consolidated balance sheet of the Company and its Restricted Subsidiaries, less the sum of the following amounts appearing on such consolidated
balance sheet: 
  

	 	(i)	amounts, if any, at which goodwill, trademarks, tradenames, copyrights, patents and other similar intangible assets (other than timber licenses) and unamortized stock or debt
commission, discount, expense and premium shall appear as assets, 

  

	 	(ii)	in the case of any asset of the Company, the amount of any write-up of the value of such asset if made on the books of the Company subsequent to December 31, 1985, and in the
case of any asset of a Restricted Subsidiary, the amount of any write-up of the value of such asset if made on the books of such Restricted Subsidiary after the later of December 31, 1985, or a date six months prior to the date on which such
Restricted Subsidiary became a Subsidiary, 

  

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	 	(iii)	all amounts at which investments in Subsidiaries which are not being consolidated shall appear on such consolidated balance sheet as assets, 

  

	 	(iv)	the amount of all liabilities appearing on such consolidated balance sheet as current liabilities, and 

  

	 	(v)	any minority interest appearing on such consolidated balance sheet; 

 all
as determined on a consolidated basis in accordance with generally accepted accounting principles. 
 “Coupon Security” means any
Security of the form set forth in Section 203. 
 “Debenture Trust Deed” means the Trust Deed of Hypothec, Mortgage and Pledge
and Deed of Trust and Mortgage bearing formal date of June 1, 1958 between the Company and National Trust Company, as trustee, as heretofore and hereafter amended and supplemented, providing for the issue and securing of debentures of the
Company. 
 “Debt” means all Capitalized Lease Obligations and any undischarged indebtedness for money borrowed, whether or not
evidenced by any note, bond, debenture or other instrument; provided, however, that Debt shall not include any Debt for the payment or redemption of which money in the necessary amount shall have been deposited in trust either at or before the
maturity or redemption date thereof. 
  

 - 7 - 

 “Defaulted Interest” means any interest on any Fully Registered Security which is payable, but
which has not been punctually paid or duly provided for, on any Interest Payment Date. 
 “Event of Default” has the meaning
specified in Section 501. 
 “Exempted Debt” means without duplication (a) all Debt of the Company and its Restricted
Subsidiaries which is secured by a Mortgage described in clause (vii) of Section 1008, (b) all Funded Debt of Restricted Subsidiaries described in paragraph (e) of Section 1012, and (c) all Attributable Obligations in
respect of Sale and Leaseback Transactions described in paragraph (b) of Section 1009. 
 “Fully Registered Security”
means any Security of the form set forth in Section 202. 
 “Funded Debt” of any Person means any Debt, whether issued,
assumed or guaranteed by such Person, maturing by its terms more than one year from the date of issuance, assumption or guarantee thereof or which is extendible or renewable at the sole option of the obligor in such manner that it may become payable
more than one year from the date of issuance, assumption or guarantee thereof by such Person; provided, however, that when determining the principal amount of Funded Debt outstanding at any date, there shall be excluded therefrom any amount thereof
due within one year of such date. 
 “Holder” when used with respect to any Security means a Securityholder, and when used with
respect to any coupon means the bearer thereof. 
 “Independent” when used with respect to any specified Person means such a Person
who (1) is 

  

 - 8 - 

 
in fact independent, (2) does not have any material direct or indirect financial interest in the Company or in any other obligor upon the Securities or
in any Affiliate of the Company or of such other obligor, and (3) is not connected with the Company or such other obligor or any Affiliate of the Company or of such other obligor, as an officer, employee, promoter, underwriter, trustee,
partner, director or person performing similar functions. Whenever it is herein provided that any Independent Person’s opinion or certificate shall be furnished to the Trustee, such Person shall be appointed by a Company Order and approved by
the Trustee in the exercise of reasonable care, and such opinion or certificate shall state that the signer has read this definition and the signer is Independent within the meaning hereof. 
 “Interest Payment Date” means the Stated Maturity of an instalment of interest on the Securities. 
 “Majority Securityholders’ Act” means any Act by the Holders of Securities which has been (a) signed by or for the Holders of not
less than two-thirds in principal amount of the Outstanding Securities; or (b) adopted by the Holders of two-thirds in principal amount of the Outstanding Securities voting thereon at a meeting of the Holders of Securities duly held pursuant to
the provisions of Article Nine, provided that, where the action provided for in any such Act adopted at a meeting as aforesaid is inconsistent with the action provided for in a prior Act of the Securityholders first delivered to the Trustee within
the preceding 60 days, such subsequent Act shall not be a Majority Securityholders’ Act, unless it shall have been adopted at said meeting by the votes of the Holders of two-thirds in principal amount of all the Outstanding Securities.

  

 - 9 - 

 “Maturity” when used in respect to any Security means the date on which the principal of such
Security becomes due and payable as therein or herein provided, whether at the Stated Maturity or by declaration of acceleration, call for redemption or otherwise. 
 “Mining Property” means any (a) mine, (b) facility for processing material from a mine or (c) property containing reserves of minerals (other than (i) any such mine or facility
principally used in connection with the production of oil or gas and (ii) any such property whose reserves consist principally of oil or gas), in each case owned or leased by the Company or any Subsidiary and located within Canada or the United
States of America, other than (x) any such mine, facility or property which, in the opinion of the Board of Directors, is not of material importance to the total business conducted by the Company and its Subsidiaries as an entirety or
(y) any portion of any such mine, facility or property which is similarly found not to be of material importance to the use or operation thereof. 
 “Mortgage” means any mortgage, hypothec, privilege, pledge, security interest, floating charge or other similar lien or encumbrance. 
 “Officers’ Certificate” means a certificate signed by the Chairman of the Board, the President or a Vice-President, and by the Secretary,
an Assistant Secretary, the Treasurer, an Assistant Treasurer, the Controller or an Assistant Controller of the Company (or by any two officers of the Company duly authorized for the purpose by a Board Resolution and acceptable to the Trustee), and
delivered to the Trustee. Wherever this Indenture requires that an Officers’ Certificate be signed also by an engineer or an accountant or other expert, such engineer, 

  

 - 10 - 

 
accountant or other expert (except as otherwise expressly provided in this Indenture) may be in the employ of the Company, and shall be appointed by Company
Order and be acceptable to the Trustee. 
 “Opinion of Counsel” means a written opinion of counsel, who may (except as otherwise
expressly provided in this Indenture) be counsel for the Company (whether or not in the employ of the Company), and shall be appointed by Company Order and acceptable to the Trustee. 
 “Outstanding”, when used with respect to Securities, means, as of the date of determination, all Securities theretofore authenticated and
delivered under this Indenture, except: 
  

	 	(i)	Securities theretofore cancelled by the Trustee or delivered to the Trustee for cancellation; 

  

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

  

	 	(iii)	 Securities which have been paid pursuant to Section 306 or in 

  

 - 11 - 

	 	 
exchange for or in lieu of which other Securities have been authenticated and delivered pursuant to this Indenture, other than any such Securities in respect
of which there shall have been presented to the Trustee proof satisfactory to it that such Securities are held by a bona fide purchaser in whose hands such Securities are valid obligations of the Company; 

 provided, however, that in determining which Persons are entitled to vote at a meeting of Holders of Securities or whether the Holders of the requisite principal amount
of Outstanding Securities are present at a meeting of Holders of Securities for quorum purposes or have given any request, demand, authorization, direction, notice, consent or waiver hereunder, Securities owned by the Company, or any other obligor
upon the Securities or any Affiliate of the Company, or such other obligor shall be disregarded and deemed not to be Outstanding, except that, in determining whether the Trustee shall be protected in relying upon any such determination as to the
entitlement to vote, the presence of a quorum or upon any such request, demand, authorization, direction, notice, consent or waiver, only Securities which the Trustee knows to be so owned shall be so disregarded. Securities so owned which have been
pledged in good faith may be regarded as Outstanding if the pledgee establishes to the satisfaction of the Trustee the pledgee’s right so to act with respect to such Securities and that the pledgee is not the Company or any other obligor upon
the Securities or any Affiliate of the Company or such other obligor. 
 “Paying Agent” means any Person, which may be the Company,
authorized by the Company to pay the principal of and premium, if any, or interest on any Securities on behalf of the Company. 
  

 - 12 - 

 “Person” means any individual, corporation, partnership, joint venture, association,
joint-stock company, trust, unincorporated organization or government or any agency or political subdivision thereof. 
 “Place of
Payment” means any municipality referred to in Section 301. 
 “Place of Registration” means and includes the principal
office of the Trustee in each of the Cities of Halifax, Saint John, Montreal, Toronto, Winnipeg, Regina, Calgary or Vancouver or any other office or agency appointed by the Company pursuant to Section 1002. 
 “Predecessor Securities” of any particular Security means every previous Security evidencing all or a portion of the same debt as that
evidenced by such particular Security; and, for the purposes of this definition, any Security authenticated and delivered under Section 306 in lieu of a lost, destroyed or stolen Security shall be deemed to evidence the same debt as the lost,
destroyed or stolen Security. 
 “Principal Facility” means any mill, converting plant or manufacturing plant owned or leased at
the date of this Trust Indenture or hereafter acquired or leased by the Company or any Subsidiary and which is located within Canada or the United States of America, other than (a) any such mill or plant which in the opinion of the Board of
Directors is not of material importance to the total business conducted by the Company and its Subsidiaries as an entirety or (b) any portion of any such mill or plant which is similarly found not to be of material importance to the use or
operation of such mill or plant. 
  

 - 13 - 

 “Principal Property” means, as the context may require, any real or immoveable property forming
part of or constituting any or all of the following: any Principal Facility, Mining Property or Timberlands. 
 “Purchase Money
Obligation” means any indebtedness, whether or not secured, incurred in respect of the cost of acquisition of any property (including shares of capital stock or Debt) or of the cost of construction or improvement of any property acquired,
constructed or improved after the date of this Indenture, which indebtedness existed at the time of acquisition or was created, issued, incurred, assumed or guaranteed contemporaneously with the acquisition, construction or improvement or within 120
days after the completion thereof and includes any extension, renewal or refunding of any such indebtedness if the principal amount thereof outstanding on the date of such extension, renewal or refunding is not increased. 
 “Redemption Date” when used with respect to any Security to be redeemed means the date fixed for such redemption by or pursuant to this
Indenture. 
 “Redemption Price” when used with respect to any Security to be redeemed means the price at which it is to be
redeemed pursuant to this Indenture. 
 “Registered Coupon Security” means any Coupon Security registered as to principal.

 “Registered Holder” when used with respect to any Registered Security means the Person in whose name such Security is registered
in the Central Security Register. 
  

 - 14 - 

 “Registered Security” means any Security registered in the Central Security Register and
includes any Registered Coupon Security. 
 “Regular Record Date” for the interest payable on any Interest Payment Date means the
date specified in Section 301. 
 “Responsible Officer” when used with respect to the Trustee means the chairman or
vice-chairman of the board of directors, the chairman or vice-chairman of the executive committee of the board of directors, the president, any vice-president, the secretary, any assistant secretary, the treasurer, any assistant treasurer, the
cashier, any assistant cashier, any trust officer or assistant trust officer, the controller and any assistant controller or any other officer of the Trustee customarily performing functions similar to those performed by any of the above designated
officers and also means, with respect to a particular corporate trust matter, any other officer to whom such matter is referred because of his knowledge of and familiarity with the particular subject. 
 “Restricted Subsidiary” means (a) a Subsidiary which owns or leases any interest in a Principal Property and (b) a Subsidiary which
the Board of Directors shall have determined to be a Restricted Subsidiary. Any determination mentioned in (b) shall be irrevocable provided, however, that the Board of Directors may determine that a Restricted Subsidiary (as defined in
(a) or (b)) shall cease to be a Restricted Subsidiary and shall become an Unrestricted Subsidiary if (i) a Person other than the Company or a Restricted Subsidiary shall hold a minority interest in such Restricted 

  

 - 15 - 

 
Subsidiary of at least 15% of the common shareholders’ equity of such Restricted Subsidiary; (ii) after giving effect to such determination, the
Company is entitled to issue Funded Debt in the principal amount of at least one dollar; and (iii) immediately after such Restricted Subsidiary becomes an Unrestricted Subsidiary, no Event of Default or event which, with the giving of notice or
the passage of time, would constitute an Event of Default, shall exist. 
 “Sale and Leaseback Transaction” has the meaning
ascribed to it in Section 1009. 
 “Security” or “Securities” means any Security or Securities, as the case may be,
authenticated and delivered pursuant to this Indenture. 
 “Securityholder” means a bearer of an Unregistered Security or a
Registered Holder of a Registered Security. 
 “Security Registers” has the meaning specified in Section 305. 
 “Senior Funded Debt” means Funded Debt which in right of payment is senior to the Securities and includes the debentures issued and outstanding
under the Debenture Trust Deed. 
 “Special Record Date” for the payment of any Defaulted Interest (as defined in Section 307)
means a date fixed by the Trustee pursuant to Section 307. 
 “Stated Maturity” when used with respect to any Security or any
instalment of interest thereon means the date specified in such Security or in the coupon representing such instalment of interest as the fixed date on which the principal of such Security or such instalment of interest is due and payable.

  

 - 16 - 

 “Subsidiary” means any corporation of which more than 50% of the Voting Stock is owned,
directly or indirectly, by or for the Company or by or for any corporation in like relation to the Company and includes any corporation in like relation to a Subsidiary. 
 “Timberlands” means any real or immovable property located within Canada or the United States of America and (a) which is owned by the Company or any Subsidiary and contains, or (b) with respect to
which the Company or any Subsidiary is entitled under any lease, license or similar agreement to cut and remove, standing timber which is (or upon completion of a growth cycle then in process is expected to become) of a commercial quantity and of
merchantable quality, other than (i) any such property which at the time of determination is not held primarily for the production of any lumber or other wood products, (ii) any such property which in the opinion of the Board of Directors
is not of material importance to the total business conducted by the Company and its Subsidiaries as an entirety, (iii) any portion of a particular property which is similarly found not to be of material importance to the use or operation of
such property or (iv) any reserves of oil or gas located under any such property. 
 “Trustee” means the Person named as the
“Trustee” in the first paragraph of this instrument until a successor Trustee shall have become such pursuant to the applicable provisions of this Indenture, and thereafter “Trustee” shall mean such successor Trustee. 

 

 - 17 - 

 “Unregistered Security” means any Coupon Security or temporary bearer Security not registered
as to principal. 
 “Unrestricted Subsidiary” means a Subsidiary which is not or which has ceased to be a Restricted Subsidiary.

 “Voting Stock” means shares of capital stock of any class of a corporation having under all circumstances the right to elect at
least a majority of the board of directors of such corporation, provided that, for the purposes hereof, shares which only carry the right to vote conditionally on the happening of an event shall not be considered Voting Stock nor shall any shares be
deemed to cease to be Voting Stock solely by reason of a right to vote accruing to shares of another class or classes by reason of the happening of such event. 
 “Wholly-Owned Restricted Subsidiary” means a Restricted Subsidiary all of whose Voting Stock (other than shares required to be owned by directors under any applicable law) are owned by the Company and/or one
or more of its Wholly-Owned Restricted Subsidiaries. 
 Section 102. Form of Documents Delivered to Trustee. 
 In any case where several matters are required to be certified by, or covered by an opinion of, any specified Person, it is not necessary that all such
matters be certified by, or covered by the opinion of, only one such Person, or that they be so certified or covered by only one document, but one such Person may certify or give an opinion with respect to some matters and one or more other such
Persons as to other matters, and any such Person may certify or give an opinion as to such matters in one or several documents. 
  

 - 18 - 

 Any certificate or opinion of an officer of the Company may be based, insofar as it relates to legal
matters, upon a certificate or opinion of, or representations by, counsel, unless such officer knows, or in the exercise of reasonable care should know, that the certificate or opinion or representations with respect to the matters upon which his
certificate or opinion is based are erroneous. Any such certificate or opinion of counsel may be based, insofar as it relates to factual matters, upon a certificate or opinion of, or representations by, an officer or officers of the Company stating
that the information with respect to such factual matters is in the possession of the Company, unless such counsel knows, or in the exercise of reasonable care should know, that the certificate or opinion or representations with respect to such
matters are erroneous. 
 Where any Person is required to make, give or execute two or more applications, requests, consents, certificates,
statements, opinions or other instruments under this Indenture, they may, but need not, be consolidated and form one instrument. 
 Section 103. Acts of Holders of Securities. 
 (a) Any request, demand, authorization, direction, notice, consent, waiver or
other action provided by this Indenture to be given or taken by Holders of Securities may be embodied in and evidenced by (1) one or more instruments of substantially similar tenor signed by such Holders in person or by agent or proxy duly
appointed in writing, (2) the record of Holders of Securities voting in favor thereof, either in person or by proxies duly appointed in writing, at any meeting 

  

 - 19 - 

 
of Holders of Securities duly called and held in accordance with the provisions of Article Nine, or (3) a combination of such instruments and any such
record. Except as herein otherwise expressly provided, such action shall become effective when such instrument or instruments or record or both are delivered to the Trustee and, where it is hereby expressly required, to the Company. Such instrument
or instruments and record (and the action embodied therein and evidenced thereby) are herein sometimes referred to as the “Act” of the Holders of Securities signing such instrument or instruments or so voting at such meeting. Proof of
execution of any such instrument or of a writing appointing any such agent or proxy, or of the holding by any Person of a Security, shall be sufficient for any purpose of this Indenture and (subject to Section 601) conclusive in favor of the
Trustee and the Company if made in the manner provided in this Section. The record of any meeting of Holders of Securities shall be proved in the manner provided in Section 906. 
 (b) The fact and date of the execution by any Person of any such instrument or writing may be proved by the affidavit of a witness of such execution or
by the certificate of any notary or other officer authorized by law to take acknowledgments of deeds, certifying that the individual signing such instrument or writing acknowledged to him the execution thereof. Where such execution is by an officer
of a corporation or a member of a partnership, on behalf of such corporation or partnership, such certificate or affidavit shall also constitute sufficient proof of his authority. 
 (c) The principal amount of Unregistered Securities held by any Person executing any such instrument or writing as a Securityholder, and the numbers of
such Unregistered Securities, and the date of his holding the same, may be proved by the 

  

 - 20 - 

 
production of such Securities or by a certificate executed by any trust company, bank, banker or other Person, wherever situated, acceptable to the Trustee,
if such certificate is in form satisfactory to the Trustee, showing that at the date therein mentioned such Person had on deposit with such depositary, or exhibited to it, the Unregistered Securities therein described; or such facts may be proved by
the certificate or affidavit of the Person executing such instrument or writing as a Securityholder, if such certificate or affidavit is in form satisfactory to the Trustee. The Trustee and the Company may assume that such holding of any
Unregistered Security continues until (1) another certificate bearing a later date issued in respect of the same Unregistered Security is produced, or (2) such Unregistered Security is produced by some other Person, or (3) such
Unregistered Security is registered as to principal or is surrendered in exchange for a Fully Registered Security, or (4) such Unregistered Security is no longer Outstanding. 
 (d) The fact and date of execution of any such instrument or writing and the amount and numbers of Unregistered Securities held by the Person so
executing such instrument or writing may also be proved in any other manner which the Trustee deems sufficient; and the Trustee may in any instance require further proof with respect to any of the matters referred to in this Section. 
 (e) The holding of Registered Securities shall be proved by the Central Security Register. 
 (f) Any request, demand, authorization, direction, notice, consent, waiver or other action by the Holder of any Security shall bind every future Holder
of the same Security and the Holder of every Security issued upon the transfer thereof or in exchange therefor or in lieu thereof , in 

  

 - 21 - 

 
respect of anything done or suffered to be done by the Trustee or the Company in reliance thereon, whether or not notation of such action is made upon such
Security. 
 Section 104. Notices, etc., to Trustee and Company. 
 Any request, demand, authorization, direction, notice, consent, waiver or Act of Securityholders or other document provided or permitted by this Indenture
to be made upon, given or furnished to, or filed with, 
 (1) the Trustee by any Securityholder or by the Company shall be
sufficient for every purpose hereunder if made, given, furnished or filed in writing to or with the Trustee at its principal office in the City of Montreal or at any other address previously furnished by notice in writing to the Company by the
Trustee and notified to the Securityholders in accordance with Section 105, or 
 (2) the Company by the Trustee or by
any Securityholder shall be sufficient for every purpose hereunder if in writing and either mailed, first-class postage prepaid, or telexed or telecopied and confirmed by first-class mail postage prepaid, to the Company addressed to it at the
address of its principal office specified in the first paragraph of this instrument, to the attention of its Secretary, or at any other address or to the attention of any other Person previously furnished in writing to the Trustee by the Company and
notified to the Securityholders in accordance with Section 105. 
  

 - 22 - 

 Section 105. Notices to Securityholders; Waiver. 
 Except as otherwise expressly provided herein, where this Indenture provides for notice to Securityholders of any event, 
 i) such notice shall be sufficiently given to Holders of Unregistered Securities if advertised once in an Authorized Newspaper in the City of Montreal and the City of
Toronto on a business day which is not earlier than the earliest date nor later than the latest date prescribed for the giving of such notice; and 
 ii)
such notice shall be sufficiently given to any Holder of Registered Securities if in writing and mailed, first-class postage prepaid, to such Registered Holder of such Central Security, at his address as it appears on the Central Security Register,
not later than the latest date, and not earlier than the earliest date, prescribed for the giving of such notice. 
 In any case where notice
to Holders of Registered Securities is given by mail, neither the failure to mail such notice, nor any defect in any notice so mailed, to any particular Holder of a Registered Security shall affect the sufficiency of such notice with respect to
other Holders of Registered Securities or the sufficiency of any notice by publication to Holders of Unregistered Securities given as provided above. 
 In case by reason of the suspension of regular mail service or by reason of any other cause it shall be impracticable to give such notice by first-class postage prepaid mail, then such notification to Holders of
Registered Securities as shall be made with the approval of the Trustee shall constitute sufficient notice to such Holders for every purpose hereunder. 
  

 - 23 - 

 In case, by reason of the suspension of publication of any Authorized Newspaper, or by reason of any
other cause, it shall be impracticable to make publication of any notice in an Authorized Newspaper or Authorized Newspapers as required by this Indenture, then such method of publication or notification as shall be made with the approval of the
Trustee shall constitute a sufficient publication of such notice for every purpose hereunder. 
 Where this Indenture provides for notice to
any Person in any manner, such notice may be waived in writing by the person entitled to receive such notice, either before or after the event, and such waiver shall be the equivalent of such notice. Waivers of notice by Securityholders shall be
filed with the Trustee, but such filing shall not be a condition precedent to the validity of any action taken in reliance upon such waiver. 
 Section 106. Effect of Headings and Table of Contents. 
 The Article and Section headings herein and the Table of Contents are
for convenience only and shall not affect the construction hereof. 
 Section 107. Successors and Assigns. 
 All covenants and agreements in this Indenture by the Company shall bind its successors and assigns, whether so expressed or not. 
  

 - 24 - 

 Section 108. Separability Clause. 
 In case any provision in this Indenture or in the Securities shall be invalid, illegal or unenforceable, the validity, legality and enforceability of the
remaining provisions shall not in any way be affected or impaired thereby. 
 Section 109. Benefits of Indenture. 
 Nothing in this Indenture or in the Securities or in the coupons, express or implied, shall, except as may be required by any applicable law, give to any
Person, other than the parties hereto and their successors hereunder and the Holders of Securities and coupons, any benefit or any legal or equitable right, remedy or claim under this Indenture. 
 Section 110. Governing Law. 
 This
Indenture and each of the Securities and coupons shall be construed in accordance with and governed by the laws of the Province of Quebec and the laws of Canada applicable therein. 
 Section 111. Legal Holidays. 
 In any
case where any Interest Payment Date or date of Maturity of any Security shall not be a Business Day at any Place of Payment, then (notwithstanding any other provision of this Indenture or of the Securities or the coupons) payment of interest or
principal or premium, if any, need not be made at such Place of Payment on such day, but may be made on the next succeeding Business Day at such Place of Payment with the same force and effect as if made on such Interest 

  

 - 25 - 

 
Payment Date or such date of Maturity, provided that if such payment is duly made on such next succeeding Business Day, no interest shall accrue on the
amount so payable for the period from and after such Interest Payment Date or such date of Maturity, as the case may be, to and including such next succeeding Business Day. 
 Section 112. Language of Notices, Etc. 
 Any request, demand, authorization, direction, notice, consent, election or waiver required or permitted under this Indenture shall be in the English or French language. 
 ARTICLE TWO 
 Security Forms 
 Section 201. Forms Generally. 
 The
Securities, the appurtenant coupons and the Trustee’s certificate of authentication shall be in substantially the forms set forth in this Article, with such appropriate insertions, omissions, substitutions and other variations as are required
or permitted by this Indenture and may have such letters, numbers or other marks of identification and such legends or endorsements placed thereon as may, consistently herewith, be determined by the officers executing such Securities, as evidenced
by their signing of the Securities. Any portion of the text of any Security may be set forth on the reverse thereof. 
  

 - 26 - 

 Section 202. Form of Fully Registered Security. 
 DOMTAR INC. 
 10.85% Debenture Due 2017

  

					
	 $
                    
	 		  	No.                     

 DOMTAR INC., a corporation incorporated or continued under the Canada Business Corporations Act
(hereinafter called the “Company”, which term includes any successor corporation under the Indenture hereinafter referred to), for value received, hereby promises to pay to
                                        ,
or registered assigns, on August 5, 2017 the principal sum of                      DOLLARS and to pay interest thereon from the later of
August 5, 1987 and the most recent Interest Payment Date to which interest has been paid or duly provided for, semi-annually in arrears on February 5 and August 5 in each year commencing on February 5, 1988 (each such date being
an “Interest Payment Date”), at the rate of 10.85% per annum. The interest so payable, and punctually paid or duly provided for, on any Interest Payment Date will, as provided in the Indenture, be paid to the Person in whose name this
Security (or one or more Predecessor Securities, as defined in said Indenture) is registered at the close of business on the Regular Record Date for such interest, which shall be the 1st day (whether or not a business day) of the calendar month next
preceding such Interest Payment Date. Except as otherwise provided in the Indenture, any such interest not so punctually paid or duly provided for will forthwith cease to be payable to the registered Holder on such Regular Record Date and may either
be paid to the Person in whose name this Security (or one or more Predecessor Securities) is registered at the 

  

 - 27 - 

 
close of business on a Special Record Date for the payment of such defaulted interest to be fixed by the Trustee, notice whereof shall be given to Holders of
Securities not less than 10 days prior to such Special Record Date, or may be paid at any time in any other lawful manner deemed practicable by the Trustee, all as more fully provided in the Indenture. Payment of the principal of and interest on
this Security will be made in lawful money of Canada at any branch in Canada of The Royal Bank of Canada, or at such other place as may be designated by the Company for such purpose and approved by the Trustee. Payment of interest on this Security
may be made at the option of the Company by warrant or cheque mailed to the address of the Person or Persons entitled thereto as such address shall appear on the Central Security Register. 
 This Security is one of a duly authorized issue of Securities of the Company designated as its 10.85% Debentures Due 2017 (herein called the
“Securities”), limited in aggregate principal amount to $100,000,000, issued and to be issued under an indenture bearing formal date of August 5, 1987 (herein called the “Indenture”), between the Company and Compagnie
Montréal Trust – Montreal Trust Company, Trustee (herein called the “Trustee”, which term includes any successor trustee under the Indenture), to which Indenture and all indentures supplemental thereto reference is hereby made
for a statement of the respective rights thereunder of the Company, the Trustee and the Holders of the Securities, and the terms upon which the Securities are, and are to be, authenticated and delivered. The Securities will be direct unsecured
obligations of the Company and will rank pari passu with all other unsecured indebtedness of the Company. 
  

 - 28 - 

 All terms used in this Security which are defined in the Indenture shall have the respective meanings
assigned to them in the Indenture except as otherwise expressly provided or unless the context otherwise requires. 
 The Securities will be
redeemable, at the Company’s option, in whole at any time or in part from time to time, on not more than 60 and not less than 30 days’ prior notice, at the higher of the Canada Yield Price (as defined in the Indenture) and the principal
amount thereof plus accrued and unpaid interest to the date fixed for redemption. 
 Where less than all of the outstanding Securities are to
be redeemed, the Securities so to be redeemed will be selected by the Trustee in such a manner as it shall deem equitable. 
 The Company
shall also have the right to purchase for cancellation the Securities in the market, by tender or private contract, at prices not exceeding the price at which such Securities are redeemable, at the date of purchase, plus in each case accrued and
unpaid interest to the date of purchase and costs of purchase. The Securities purchased or redeemed by the Company shall be cancelled and shall not be reissued. 
 The Company, commencing October 1, 1987 will make all reasonable efforts to purchase for cancellation in the open market during each three-month period, $800,000 principal amount of the Securities at prices below
100% of the principal amount thereof plus accrued and unpaid interest and costs of purchase. If in any three-month period, the Company is unable to purchase such principal amount of Securities for any reason, including the fact that the Securities
did not trade below par, such purchase fund obligation for such period, to the extent unfulfilled, will be carried forward for 

  

 - 29 - 

 
the succeeding seven three-month periods and will thereafter be extinguished. The Securities which the Company is obligated to purchase during any
three-month period pursuant to this provision will be reduced by the aggregate principal amount of the Securities redeemed or purchased by the Company in the same three-month period otherwise than pursuant to this provision. 
 If an Event of Default, as defined in the Indenture, shall occur, the principal of all the Securities may be declared due and payable in the manner and
with the effect provided in the Indenture. 
 The Indenture permits, with certain exceptions as therein provided, the amendment thereof and
the modification of the rights and obligations of the Company and the rights of the Holders of the Securities and coupons under the Indenture at any time by the Company with the consent of the Holders of two-thirds in aggregate principal amount of
the Securities at the time Outstanding, as defined in the Indenture, or of such lesser amount thereof as shall have acted at a meeting of the Holders of the Securities duly held pursuant to the provisions of the Indenture. The Indenture also
contains provisions permitting the Holders of specified percentages in aggregate principal amount of the Securities at the time Outstanding, on behalf of the Holders of all the Securities, to waive compliance by the Company with certain provisions
of the Indenture and of this Security and certain past defaults under the Indenture and under this Security and their consequences. Any such consent or waiver by the Holder of this Security shall be conclusive and binding upon such Holder and upon
all future Holders of this Security and of any Security issued upon the transfer hereof or in exchange herefor or in lieu hereof whether or not notation of such consent or waiver is made upon this Security. 
  

 
- 30 - 

 As provided in the Indenture and subject to certain limitations therein set forth, this Registered
Security is transferable by the registered Holder hereof on the Security Registers of the Company, upon surrender of this Security for transfer at the principal office of the Trustee in the Cities of Halifax, Saint John, Montreal, Toronto, Winnipeg,
Regina, Calgary and Vancouver, duly endorsed by, or accompanied by a written instrument of transfer in form satisfactory to the Company and the Trustee or other Branch Security Registrar, if any, duly executed by, the Registered Holder hereof or his
attorney duly authorized in writing, and thereupon one or more new Fully Registered Securities without coupons, of authorized denominations and for the same aggregate principal amount, will be issued to the designated transferee or transferees. The
Company may require payment of a sum sufficient to cover any tax or governmental charge or other reasonable charge payable in connection with any such transfer. 
 The Company, the Trustee and any agent of the Company or of the Trustee may treat the Person in whose name this Security is registered as the owner hereof for all purposes whether or not this Security be overdue.

 The Securities are issuable as Coupon Securities, as defined in the Indenture, registrable as to principal, in the denominations of
$1,000, $5,000, $25,000 and $100,000 and as Fully Registered Securities without coupons in denominations of $1,000 and any integral multiple thereof. Title to Coupon Securities not registered as to principal, and to coupons appertaining to any
Security shall pass by delivery. As provided in the Indenture and subject to certain limitations 

  

 - 31 - 

 
therein set forth, Securities are exchangeable at the principal office of the Trustee in the cities above mentioned for a like aggregate principal amount of
Securities of a different authorized kind or denomination, as requested by the Holder surrendering the same with, in the case of any Coupon Security, all unmatured coupons and all matured coupons in default thereto appertaining, upon payment of
taxes and governmental charges and other reasonable charges. 
 Unless the certificate of authentication hereon has been executed by the
Trustee by the manual signature of one of its authorized officers, this Security shall not be entitled to any benefit under the Indenture, or be valid or obligatory for any purpose. 
 IN WITNESS WHEREOF, the Company has caused this Security to be executed by its duly authorized officers. 
  

							
	Dated                         	 		 	DOMTAR INC.
				
	By	 	  
	 		 	Attest:
		 	President and Chief Executive Officer	 		 	
		 		 		 	  

		 		 		 	Secretary

  

 - 32 - 

 Trustee’s Certificate of Authentication 
 This is one of the Securities referred to in the within-mentioned Indenture. 
  

			
	 MONTREAL TRUST COMPANY
 Trustee

		
	 By
	 	  

		 	Authorized Officer

 Paragraphe 202. Formule des Titres entièrement nominatifs 
 DOMTAR INC. 
 Débenture 10,85%
échéant en 2017 
  

					
	 No
                    
	 		 	$                     

 DOMTAR INC., société constituée ou prorogée en vertu de la Loi sur les
sociétés commerciales canadiennes (appelée dans les présentes “Société”, lequel terme comprend toute société remplaçante aux termes du contrat de fiducie mentionné
ci-après), contre valeur reçue, promet par les présentes de payer à
                                        ,
ou à ses ayants droit inscrits, le 5 août 2017 le montant en capital de                      DOLLARS et de payer les
intérêts s’y rapportant à compter du 5 août 1987 ou à compter de la dernière date de paiement des intérêts à l’égard de laquelle des intérêts ont
été versés ou dûment mis de côté, selon celle de ces dates qui tombera la dernière, et ce, semestriellement terme échu le 5 février et le 5 août de chaque année à
compter du 5 février 1988 (chacune de ces dates étant une “date de paiement des intérêts”), au taux annuel de 10,85%. Les 

  

 - 33 - 

 
intérêts ainsi payables, qui sont payés ponctuellement ou dûment mis de côté, à toute date de paiement des
intérêts seront, tel qu’il est prévu dans le contrat de fiducie, versés à la personne au nom de laquelle le présent Titre (ou un ou plusieurs Titres remplacés, selon la définition de
“Predecessor Securities” qui est donnée dans la version anglaise dudit contrat de fiducie) est immatriculé à la fermeture des bureaux à la date ordinaire de clôture des registres se rapportant à ces
intérêts, laquelle est le ler jour (qu’il s’agisse ou non d’un jour ouvrable) du mois civil précédant cette date de paiement des intérêts. Sauf dans la mesure où il est prévu
autrement dans le contrat de fiducie, les intérêts qui ne sont pas ainsi payés ponctuellement ou dûment mis de côté cesseront aussitôt d’être payables au détenteur inscrit à cette
date ordinaire de clôture des registres et ils peuvent soit être payés à la personne au nom de laquelle le présent Titre (ou un ou plusieurs Titres remplacés) est immatriculé à la fermeture des
bureaux à une date spéciale de clôture des registres à l’égard du paiement de ces intérêts en souffrance qui doit être fixée par le fiduciaire, un avis à cet égard devant
être donné aux détenteurs de Titres au moins dix jours avant cette date spéciale de clôture des registres, soit être payés en tout temps de toute autre manière licite que le fiduciaire juge
possible, le tout tel qu’il est prévu plus en détail dans le contrat de fiducie. Le paiement du capital et des intérêts sur le présent Titre sera effectué en monnaie légale du Canada à
toute succursale au Canada de La Banque Royale du Canada ou à tout autre endroit que la Société peut désigner à cette fin et qui est approuvé par le fiduciaire. Le paiement des intérêts sur le
présent Titre peut être effectué, au gré de la Société, par mandat ou par chèque posté à l’adresse de la personne ou des personnes y ayant droit, telle que cette adresse
apparaît dans le registre central des détenteurs de Titres. 
  

 - 34 - 

 Le présent Titre est l’un des Titres d’une émission dûment
authorisée de Titres de la Société désignés comme étant ses Débentures 10,85% échéant en 2017 (appelées dans les présentes “Titres”), dont le montant en capital
global est limité à 
$100 000 000, et qui sont émis ou qui doivent être émis en vertu d’un contrat de fiducie portant la date officielle du 5 août 1987 (appelé dans les présentes
“contrat de fiducie”) et passé entre la Société et Compagnie Montréal Trust – Montreal Trust Company, à titre de fiduciaire (appelée dans les présentes “fiduciaire”, lequel
terme comprend tout fiduciaire remplaçant aux termes du contrat de fiducie); il y a lieu de se reporter à ce contrat de fiducie et à tout contrat de fiducie supplémentaire pour obtenir l’énoncé des
droits respectifs que possèdent en vertu de ceux-ci la Société, le fiduciaire et les détenteurs de Titres, de même que l’énoncé des conditions selon lesquelles les Titres sont et doivent
être authentifiés et livrés. Les Titres constitueront des obligations non garanties directes de la Société et seront d’un rang égal à celui de toutes les dettes non garanties de la
Société. 
 Tous les termes utilisés dans le présent Titre qui sont la version française de termes anglais
définis dans la version anglaise du contrat de fiducie ont le sens qui est attribué à ces termes anglais dans ladite version anglaise du contrat de fiducie, sauf si une disposition dans les présentes prévoit
expressément le contraire ou si le contexte l’exige autrement. 
 Les Titres seront remboursables par anticipation, au gré
de la Société, en totalité en tout temps ou en partie de temps à autre, sur préavis d’au plus 60 jours et d’au moins 30 jours, au plus élevé du Prix de rendement Canada (selon la
définition de “Canada Yield Price” donnée dans la version anglaise du contrat de fiducie) et du 

  

 - 35 - 

 
montant en capital de ceux-ci plus les intérêts courus et impayés jusqu’à la date fixée pour le remboursement par
anticipation. 
 Si moins de la totalité des Titres en circulation doivent être remboursés par anticipation, les Titres
devant être ainsi remboursés seront choisis par le fiduciaire d’une manière qu’il jugera équitable. 
 La Société a également le droit d’acheter à des fins d’annulation les Titres sur le marché, par voie de soumission ou de gré à gré, à un prix n’excédant
pas le prix auquel ces Titres sont, à la date d’achat, remboursables par anticipation plus dans chaque cas les intérêts courus et impayés à la date d’achat plus les frais d’achat. Les Titres
achetés ou remboursés par anticipation par la Société sont annulés sans possibilité de réémission. 
 La Société, à compter du ler octobre 1987, fera tous les efforts raisonnables pour acheter à des fins d’annulation sur le marché libre, au cours de chaque période de
trois mois, des Titres d’un montant en capital de 800 000 $, et ce, à des prix inférieurs à 100 % de leur valeur nominale plus les intérêts courus et impayés et les frais d’achat. Si, au cours
d’une période de trois mois quelconque, la Société est dans l’impossibilité d’acheter des Titres représentant ce montant en capital pour quelque raison que ce soit, notamment le fait que les Titres
ne se sont pas négociés au-dessous du pair, cette obligation à l’égard du fonds d’achat quant à cette période, dans la mesure où elle n’aura pas été
exécutée, sera reportée sur les sept périodes de trois mois subséquentes et s’éteindra par la suite. Le montant en capital global des Titres que la Société remboursera par anticipation ou
achètera autrement que conformément à cet engagement pendant une période de trois mois quelconque 

  

 - 36 - 

 
réduira d’autant l’obligation d’achat de la Société conformément à cet engagement à
l’égard de la période en question. 
 S’il survient un cas de défaut, selon la définition de
“Event of Default” qui est donnée dans la version anglaise du contrat de fiducie, le capital de tous les Titres peut être déclaré dû et payable de la manière et avec l’effet prévus dans
le contrat de fiducie. 
 Le contrat de fiducie permet, à quelques exceptions près qui y sont prévues, la modification
en tout temps par la Société dudit contrat de fiducie, de même que des droits et des obligations de la Société et des droits des détenteurs des Titres et des coupons, en vertu du contrat de fiducie, avec le
consentement des détenteurs des deux tiers du montant en capital global des Titres alors en circulation, selon la définition de “Outstanding” qui est donnée dans la version anglaise du contrat de fiducie, ou des
détenteurs d’un pourcentage inférieur de ce montant en capital global ayant agi à une réunion des détenteurs de Titres dûment tenue conformément aux dispositions du contrat de fiducie. Le contrat
de fiducie comporte également des dispositions permettant aux détenteurs de pourcentages spécifiés du montant en capital global des Titres alors en circulation, au nom des détenteurs de tous les Titres, de renoncer
à exiger que la Société se conforme à certaines dispositions du contrat de fiducie et du présent Titre, de renoncer à leurs recours à l’égard de certains cas de défaut
antérieurs en vertu du contrat de fiducie et du présent Titre. Un tel consentement ou une telle renonciation de la part du détenteur du présent Titre sera concluant et liera ce détenteur et tous les
détenteurs futurs du présent Titre et de tout Titre émis au moment du transfert du présent Titre ou en échange ou en remplacement de celui-ci, qu’un tel consentement ou qu’une telle renonciation soit ou
non indiqué sur le présent Titre. 
  

 - 37 - 

 Comme il est prévu dans le contrat de fiducie et sous réserve de certaines restrictions qui
y sont énoncées, le présent Titre nominatif est transférable par le détenteur inscrit dudit Titre; l’inscription du transfert se fait dans les registres des détenteurs de Titres de la
Société, sur remise du présent Titre à des fins de transfert à 1’un des principaux bureaux du fiduciaire dans les vi1les de Halifax, Saint-Jean (N.-B.), Montréal, Toronto, Winnipeg, Regina, Calgary et
Vancouver; à cette fin, ledit Titre doit être dûment endossé par le détenteur inscrit dudit Titre ou par son fondé de pouvoir dûment autorisé par écrit, ou il doit être
accompagné d’un instrument de transfert écrit dont le libellé est acceptable par la Société et par le fiduciaire ou tout agent chargé de la tenue d’un registre local des détenteurs de
Titres, dûment signé par le détenteur du Titre ou par son fondé de pouvoir dûment autorisé par écrit. Sur ce, un ou plusieurs nouveaux Titres entièrement nominatifs sans coupons, en coupures
autorisées et d’un montant en capital global équivalent, seront émis au ou aux cessionnaires désignés. La Société peut exiger le paiement d’une somme suffisante pour couvrir toute taxe ou
imposition gouvernementale ou tous autres frais raisonnables payables à l’égard d’un tel transfert. 
 La
Société, le fiduciaire et tout autre mandataire de la Société ou du fiduciaire peuvent traiter la personne au nom de laquelle le présent Titre est immatriculé comme le propriétaire dudit Titre, et ce,
à toutes fins, que le présent Titre soit ou non échu. 
 Les Titres sont émissibles sous forme de Titres à
coupons, selon la définition de “Coupon Securities” qui est donnée dans la version anglaise 

  

 - 38 - 

 
du contrat de fiducie, immatriculables quant au capital, en coupures de $ 1 000, $ 5 000, $ 25 000 et $ 100 000, et sous forme de Titres entièrement
nominatifs, sans coupons, en coupures de $ 1 000 et de multiples complets de $ 1 000. Le titre de propriété des Titres à coupons non immatriculés quant au capital et des coupons se rapportant à tout Titre est
transmis sur livraison. Comme il est prévu dans le contrat de fiducie et sous réserve de certaines restrictions qui y sont énoncées, les Titres sont échangeables aux principaux bureaux du fiduciaire dans les villes
mentionnées ci-dessus contre des Titres de nature ou de coupures différentes autorisées d’un montant en capital global équivalent, selon les instructions du détenteur remettant un tel Titre et, dans le cas de
tout Titre à coupons, tous les coupons non échus et tous les coupons échus en souffrance s’y rapportant, sur paiement des taxes et des impositions gouvernementales et des autres frais raisonnables. 
 A moins que l’attestation d’authenticité apparaissant sur les présentes n’ait été signée par le
fiduciaire par le biais de la signature manuscrite de l’un de ses dirigeants autorisés, le présent Titre ne donne droit à aucun avantage en vertu du contrat de fiducie et il n’est ni valide ni obligatoire à
quelque fin que ce soit. 
 EN FOI DE QUOI, la Société a fait signer le présent Titre par ses dirigeants dûment
autorises. 
  

							
	Daté du                     	 	 	 	DOMTAR INC.
				
	Par	 	  
	 		 	Attestation:
	Président et Chef de la direction	 		 	
		 		 		 	  

		 		 		 	Le Secrétaire

  

 - 39 - 

 Attestation d’authenticité par le fiduciaire 
 Le présent Titre est l’un des Titres visés par le contrat de fiducie mentionné dans les présentes. 
  

			
	 COMPAGNIE MONTREAL TRUST
 fiduciaire

		
	Par	 	  

		 	dirigeant autorisé

 Section 203. Form of Coupon Security. 
 DOMTAR INC. 
 10.85% Debenture Due 2017

  

			
	 $                    
	  	No.                     

 DOMTAR INC., a corporation incorporated or continued under the Canada Business Corporations Act
(hereinafter called the “Company”, which term includes any successor corporation under the Indenture hereinafter referred to), for value received, hereby promises to pay to the bearer, or, if this Security be registered as to principal, to
the Registered Holder hereof, on August 5, 2017 the principal sum of                      Thousand Dollars and to pay interest thereon,
semi-annually in arrears from the later of August 5, 1987 and the most recent interest payment date to which interest has been paid or duly provided for, on February 5 and August 5 in each year commencing on February 5, 1988, at

  

 - 40 - 

 
the rate of 10.85% per annum upon surrender of the coupons attached hereto as they severally mature. Payment of the principal of and interest on this
Security will be made in lawful money of Canada at any branch in Canada of The Royal Bank of Canada, or at such other place as may be designated by the Company for such purpose and approved by the Trustee. 
 This Security is one of a duly authorized issue of Securities of the Company designated as its 10.85% Debentures Due 2017, (herein called the
“Securities”), limited in aggregate principal amount to $100,000,000, issued and to be issued under an indenture bearing formal date of August 5, 1987 (herein called the “Indenture”), between the Company and Compagnie
Montréal Trust – Montreal Trust Company Trustee, Trustee (herein called the “Trustee”, which term includes any successor trustee under the Indenture), to which Indenture and all indentures supplemental thereto reference is
hereby made for a statement of the respective rights thereunder of the Company, the Trustee and Holders of the Securities and coupons, and the terms upon which the Securities are, and are to be, authenticated and delivered. The Securities will be
direct unsecured obligations of the Company and will rank pari passu with all other unsecured indebtedness of the Company. 
 All terms used
in this Security which are defined in the Indenture shall have the respective meanings assigned to them in the Indenture except as otherwise expressly provided or unless the context otherwise requires. 
 The Securities will be redeemable, at the Company’s option, in whole at any time or in part from time to time, on not more than 60 and not less than
30 days’ prior notice, at the higher of the Canada Yield Price (as defined in the Indenture) and the principal amount thereof plus accrued and unpaid interest to the date fixed for redemption. 
  

 - 41 - 

 Where less than all of the outstanding Securities are to be redeemed, the Securities so to be redeemed
will be selected by the Trustee in such a manner at it shall deem equitable. 
 The Company shall also have the right to purchase for
cancellation the Securities in the market, by tender or private contract, at prices not exceeding the price at which such Securities are redeemable, at the date of purchase, plus in each case accrued and unpaid interest to the date of purchase plus
costs of purchase. The Securities purchased or redeemed by the Company shall be cancelled and shall not be reissued. 
 The Company,
commencing October 1, 1987, will make all reasonable efforts to purchase for cancellation in the open market during each three-month period, $800,000 principal amount of the Securities at prices below 100% of the principal amount thereof plus
accrued and unpaid interest and costs of purchase. If in any three-month period, the Company is unable to purchase such principal amount of Securities for any reason, including the fact that the Securities did not trade below par, such purchase fund
obligation for such period, to the extent unfulfilled, will be carried forward for the succeeding seven three-month periods and will thereafter be extinguished. The Securities which the Company is obligated to purchase during any three-month period
pursuant to this provision will be reduced by the aggregate principal amount of the Securities redeemed or purchased by the Company in the same three-month period otherwise than pursuant to this provision. 
 If an Event of Default, as defined in the Indenture, shall occur, the principal of all the 

  

 - 42 - 

 
Securities may be declared due and payable in the manner and with the effect provided in the Indenture. 
 The Indenture permits, with certain exceptions as therein provided, the amendment thereof and the modification of the rights and obligations of the
Company and the rights of the Holders of the Securities and the coupons under the Indenture at any time by the Company with the consent of the Holders of two-thirds in aggregate principal amount of the Securities at the time Outstanding, as defined
in the Indenture, or of such lesser amount thereof as shall have acted at a meeting of the Holders of the Securities duly held pursuant to the provisions of the Indenture. The Indenture also contains provisions permitting the Holders of specified
percentages in aggregate principal amount of the Securities at the time Outstanding, on behalf of the Holders of all the Securities, to waive compliance by the Company with certain provisions of the Indenture and of this Security and certain past
defaults under the Indenture and under this Security and their consequences. Any such consent or waiver by the Holder of this Security shall be conclusive and binding upon such Holder and upon all future Holders of this Security and of any Security
issued in exchange herefor or in lieu hereof whether or not notation of such consent or waiver is made upon this Security. 
 This Security
is transferable by delivery, unless registered as to principal in the name of the Holder in the Central Security Register of the Company. This Security may be so registered upon presentation hereof at the principal office of the Trustee in the
cities of Halifax, Saint John, Montreal, Toronto, Winnipeg, Regina, Calgary and Vancouver, such registration being noted hereon. While registered as aforesaid, this Security shall be transferable on the Security Registers of the 

  

 - 43 - 

 
Company by the Registered Holder hereof, upon like presentation of this Security for notation of such transfer hereon, accompanied by a written instrument of
transfer in form satisfactory to the Company and the Trustee or other Branch Security Registrar, if any, duly executed by the Registered Holder hereof or his attorney duly authorized in writing, all as provided in the Indenture and subject to
certain limitations therein set forth; but this Security may be discharged from registration by being in like manner transferred to bearer, and thereupon transferability by delivery shall be restored. This Security shall continue to be subject to
successive registrations and transfers to bearer at the option of the bearer or Registered Holder, as the case may be. Such registration, however, shall not affect the transferability by delivery of the coupons appertaining hereto, which shall
continue to be payable to bearer and transferable by delivery. The Company may require payment of a sum sufficient to cover any tax or governmental charge or other reasonable charge payable in connection with any such registration, transfer or
discharge from registration. 
 The Company, the Trustee and any agent of the Company or of the Trustee may treat the bearer of this
Security, or, if this Security is registered as herein authorized, the person in whose name the same is registered, and the bearer of any coupon appertaining hereto, as the owner hereof and thereof for all purposes, whether or not this Security or
such coupon be overdue. 
 The Securities are issuable as Coupon Securities, as defined in the Indenture, registrable as to principal, in the
denominations of $1,000, $5,000, $25,000 and $100,000 and as Fully Registered Securities without coupons in denominations of $1,000 and any integral multiple thereof. As provided in the Indenture and subject to certain 

  

 - 44 - 

 
limitations therein set forth, Securities are exchangeable at the principal office of the Trustee in the cities above mentioned for a like aggregate
principal amount of Securities of a different authorized kind or denomination, as requested by the Holder surrendering the same with, in the case of any Coupon Security, all unmatured coupons and all matured coupons in default thereto appertaining,
upon payment of taxes and governmental charges and other reasonable charges. 
 Unless the certificate of authentication hereon has been
executed by the Trustee by the manual signature of one of its authorized officers, neither this Security, nor any coupon appertaining hereto, shall be entitled to any benefit under the Indenture, or be valid or obligatory for any purpose.

 In WITNESS WHEREOF, the Company has caused this Security to be executed by its duly authorized officers and coupons bearing the facsimile
signature of its Treasurer to be hereto annexed. 
  

							
	Dated                         	 		 	DOMTAR INC.
				
	By	 	  
	 		 	Attest:
		 	President and Chief Executive Officer	 		 	
				
		 		 		 	  

		 		 		 	Secretary

 Interest Coupon 
 $                      
 DOMTAR INC. will pay to the bearer on the 5th day of February, 1988 upon surrender of this 

  

 - 45 - 

 
coupon, at any branch in Canada of The Royal Bank of Canada, the amount shown hereon in lawful money of Canada, being six months’ interest then due on
its 10.85% Debenture Due 2017, unless the said Debenture is called for previous redemption and payment thereof duly provided for. 
 No
                     
 
                                        

 Treasurer 
 Trustee’s
Certificate of Authentication 
 This is one of the Securities referred to in the within-mentioned Indenture. 
  

			
	MONTREAL TRUST COMPANY
	Trustee
		
	By	 	  

		 	Authorized Officer

 Paragraphe 203. Formule des Titres à coupons. 
 DOMTAR INC. 
 Débenture 10,85 %
échéant en 2017 
  

			
	 No
                    
	  	$                     

 DOMTAR INC., société constituée ou prorogée en vertu de la Loi sur les
sociétés commerciales canadiennes (appelée dans les présentes “Société”, lequel terme comprend toute société remplaçante aux termes du contrat de fiducie mentionné
ci-après), contre valeur reçue, promet par les présentes de 

  

 - 46 - 

 
payer au porteur ou, si le présent Titre est immatriculé quant au capital, au détenteur inscrit dudit Titre, le 5 août 2017 le
montant en capital de
                                        
mille dollars et de payer les intérêts s’y rapportant semestriellement terme échu à compter du 5 août 1987 ou à compter de la dernière date de paiement des intérêts à laquelle
des intérêts ont été versés ou mis de côté, selon celle de ces dates qui tombera la dernière, le 5 février et le 5 août, de chaque année, à compter du 5 février
1988, au taux annuel de 10,85% sur remise des coupons attachés aux présentes au fur et à mesure qu’ils viendront à échéance. Le paiement du capital et des intérêts sur le présent
Titre sera effectué en monnaie légale du Canada à toute succursale au Canada de La Banque Royale du Canada, ou à tout autre endroit que la Société peut désigner à cette fin et qui est
approuvé par le fiduciaire. 
 Le présent Titre est l’un des Titres d’une émission dûment
autorisée de Titres de la Société désignés comme étant ses Débentures 10,85% échéant en 2017 (appelées dans les présentes “Titres”), dont le montant en capital
global est limité à 
$100 000 000, et qui sont émis ou qui doivent être émis en vertu d’un contrat de fiducie portant la date officielle du 5 août 1987 (appelé dans les présentes
“contrat de fiducie”) et passé entre la Société et Compagnie Montréal Trust – Montreal Trust Company, à titre de fiduciaire (appelée dans les présentes “fiduciaire”, lequel
terme comprend tout fiduciaire remplaçant aux termes du contrat de fiducie); il y a lieu de se reporter à ce contrat de fiducie et à tout contrat de fiducie supplémentaire pour obtenir l’énoncé des
droits respectifs que possèdent en vertu de ceux-ci la Société, le fiduciaire et les détenteurs de Titres et de coupons, de même que l’énoncé des conditions selon lesquelles les Titres sont et
doivent être authentifiés et livrés. Les Titres constitueront des 

  

 - 47 - 

 
obligations non garanties directes de la Société et seront d’un rang égal à celui de toutes les dettes non garanties de la
Société. 
 Tous les termes utilisés dans le présent Titre qui sont la version française de termes anglais
définis dans la version anglaise du contrat de fiducie ont le sens qui est attribué à ces termes anglais dans ladite version anglaise du contrat de fiducie, sauf si une disposition dans les présentes prévoit
expressément le contraire ou si le contexte l’exige autrement. 
 Les Titres seront remboursables par anticipation, au gré
de la Société, en totalité en tout temps ou en partie de temps à autre, sur préavis d’au plus 60 jours et d’au moins 30 jours, au plus élevé du Prix de rendement Canada (selon la
définition de “Canada Yield Price” donnée dans la version anglaise du contrat de fiducie) et du montant en capital de ceux-ci plus les intérêts courus et impayés jusqu’à la date fixée
pour le remboursement par anticipation. 
 Si moins de la totalité des Titres en circulation doivent être remboursés par
anticipation, les Titres devant être ainsi remboursés seront choisis par le fiduciaire d’une manière qu’il jugera équitable. 
 La Société a également le droit d’acheter à des fins d’annulation les Titres sur le marché, par voie de soumission ou de gré à gré, à un prix
n’excédant pas le prix auquel ces Titres sont, à la date d’achat, remboursables par anticipation plus dans chaque cas les intérêts courus et impayés à la date d’achat plus les frais
d’achat. Les Titres achetés ou remboursés par anticipation par la Société sont annulés sans possibilité de réémission. 
  

 - 48 - 

 La Société, à compter du ler octobre 1987, fera tous les efforts raisonnables pour
acheter à des fins d’annulation sur le marché libre, au cours de chaque période de trois mois, des Titres d’un montant en capital de 800 000 $, et ce, à des prix inférieurs à 100 % de leur
valeur nominale plus les intérêts courus et impayés et les frais d’achat. Si, au cours d’une période de trois mois quelconque, la Société est dans l’impossibilité d’acheter des
Titres représentant ce montant en capital pour quelque raison que ce soit, notamment le fait que les Titres ne se sont pas négociés au-dessous du pair, cette obligation à l’égard du fonds d’achat quant
à cette période, dans la mesure où elle n’aura pas été exécutée, sera reportée sur les sept périodes de trois mois subséquentes et s’éteindra par la suite. Le
montant en capital global des Titres que la Société remboursera par anticipation ou achétera autrement que conformément à cet engagement pendant une période de trois mois quelconque réduira
d’autant l’obligation d’achat de la Société conformément à cet engagement à l’égard de la période en question. 
 S’il survient un cas de défaut, selon la définition de “Event of Default” qui est donnée dans la version anglaise du
contrat de fiducie, le capital de tous les Titres peut être déclaré dû et payable de la manière et avec l’effet prévus dans le contrat de fiducie. 
 Le contrat de fiducie permet, à quelques exceptions près qui y sont prévues, la modification en tout temps par la
Société dudit contrat de fiducie, de même que des droits et des obligations de la Société et des droits des détenteurs des Titres et des coupons, en vertu du contrat de fiducie, avec le consentement des
détenteurs des deux tiers du montant en capital global des Titres alors en circulation, selon la définition de “Outstanding” qui est donnée dans la version 

  

 - 49 - 

 
anglaise du contrat de fiducie, ou des détenteurs d’un pourcentage inférieur de ce montant en capital global ayant agi à une
réunion des détenteurs de Titres dûment tenue conformément aux dispositions du contrat de fiducie. Le contrat de fiducie comporte également des dispositions permettant aux détenteurs de pourcentages
spécifiés du montant en capital global des Titres alors en circulation, au nom des détenteurs de tous les Titres, de renoncer à exiger que la Société se conforme à certaines dispositions du contrat de
fiducie et du présent Titre et de renoncer à leurs recours à l’égard de certains cas de défaut antérieurs en vertu du contrat de fiducie et du présent Titre. Un tel consentement ou une telle
renonciation de la part du détenteur du présent Titre sera concluant et liera ce détenteur et tous les détenteurs futurs du présent Titre et de tout Titre émis en échange ou en remplacement de
celui-ci, qu’un tel consentement ou qu’une telle renonciation soit ou non indiqué sur le présent Titre. 
 Le
présent Titre est transférable sur livraison, à moins qu’il ne soit immatriculé quant au capital au nom du détenteur dans le registre central des détenteurs de Titres de la Société. Le
présent Titre peut être ainsi immatriculé sur présentation des présentes à l’un des principaux bureaux du fiduciaire dans les villes de Halifax, Saint-Jean (N.-B.), Montréal, Toronto, Winnipeg,
Regina, Calgary et Vancouver, cette immatriculation étant notée sur les présentes. Tant que le présent Titre est immatriculé de la façon susmentionnée, il est transférable par le
détenteur inscrit des présentes et l’inscription d’un tel transfert se fait dans les registres des détenteurs de Titres de la Société sur présentation, comme il est indiqué ci-dessus, du
présent Titre aux fins d’y noter un tel transfert, accompagné d’un instrument de transfert écrit dont le libellé est acceptable par la Société et par le fiduciaire ou tout agent 

  

 - 50 - 

 
chargé de la tenue d’un registre local des détenteurs de Titres, dûment signé par le détenteur inscrit des
présentes ou par son fondé de pouvoir dûment autorisé par écrit, le tout tel qu’il est prévu dans le contrat de fiducie et sous réserve de certaines restrictions qui y sont énoncées;
cependant, le présent Titre peut être dispensé d’immatriculation s’il est transféré au porteur de la manière indiquée ci-dessus, et, sur ce, la transférabilité sur livraison est
rétablie. Le présent Titre continue d’être soumis aux immatriculations et aux transferts successifs au porteur au gré du porteur ou du détenteur inscrit, selon le cas. Cette immatriculation, cependant, ne porte
aucunement atteinte à la transférabilité sur livraison des coupons s’attachant au présent Titre, lesquels continueront d’être payables au porteur et transférables sur livraison. La
Société peut exiger le paiement d’une somme suffisante pour couvrir toute taxe ou imposition gouvernementale ou tous autres frais raisonnables payables à l’égard d’une telle immatriculation, d’un tel
transfert ou d’une telle dispense d’immatriculation. 
 La Société, le fiduciaire et tout autre mandataire de la
Société ou du fiduciaire peuvent traiter le porteur du présent Titre ou, si le présent Titre est immatriculé comme il est autorisé dans les présentes, la personne au nom de laquelle le présent
Titre est immatriculé et le porteur de tout coupon s’y rattachant comme le propriétaire dudit Titre et dudit coupon, et ce, à toutes fins, que le présent Titre soit ou non échu. 
 Les Titres sont émissibles sous forme de Titres à coupons, selon la définition de “Coupon Securities” qui est
donnée dans la version anglaise du contrat de fiducie, immatriculables quant au capital, en coupures de $ 1 000, $ 5 000, $ 25 000 et $ 100 000 et sous forme de Titres entièrement nominatifs, sans coupons, en coupures de $ 1 000 et

  

 - 51 - 

 
de multiples complets de $ 1 000. Comme il est prévu dans le contrat de fiducie et sous réserve de certaines restrictions qui y sont
énoncées, les Titres sont échangeables aux principaux bureaux du fiduciaire dans les villes mentionnées ci-dessus contre des Titres de nature ou de coupures différentes autorisées d’un montant en
capital global équivalent, selon les instructions du détenteur remettant un tel Titre et, dans le cas de tout Titre à coupons, tous les coupons non échus et tous les coupons échus en souffrance s’y rapportant,
sur paiement des taxes et des impositions gouvernementales et des autres frais raisonnables. 
 A moins que l’attestation
d’authenticité apparaissant sur les présentes n’ait été signée par le fiduciaire par le biais de la signature manuscrite de l’un de ses dirigeants autorisés, ni le présent Titre ni
aucun coupon s’y rattachant donnent droit à aucun avantage en vertu du contrat de fiducie et ils ne sont ni valides ni obligatoires à quelque fin que ce soit. 
 EN FOI DE QUOI, la Société a fait signer le présent Titre par ses dirigeants dûment autorisés et a fait joindre aux
présentes des coupons portant la signature en fac-similé de son trésorier. 
  

									
	 Daté du
                    
	 		 	DOMTAR INC.	 	
					
	 Par
	 	  
	 		 	Attestation:	 	
		 	 Président et Chef de la direction
	 		 		 	
			
		 		 	  

		 		 		 	Le Secrétaire	 	

  

 - 52 - 

 Coupon d’intérêt 
 $                     
 DOMTAR INC. versera au porteur, le 5e jour de février 1988 sur remise du présent coupon, à toute succursale au Canada de La Banque
Royale du Canada, la somme indiquée sur le présent coupon 
 en monnaie légale du Canada, soit les intérêts semestriels
alors dus sur sa Débenture 10,85% échéant en 2017, à moins que cette Débenture ne soit auparavant rappelée à des fins de remboursement par anticipation et que les sommes nécessaires à un
tel remboursement ne soient dûment mises de côté. 
 No                     
  

									
		 		 	  
	 		 	
		 		 	Trésorier	 		 	

 Attestation d’authenticité par le fiduciaire. 
 Le présent Titre est l’un des Titres visés par le contrat de fiducie mentionné dans les présentes. 
  

			
	 COMPAGNIE MONTREAL TRUST

	fiduciaire
		
	Par	 	  

		 	dirigeant autorisé

  

 - 53 - 

 ARTICLE THREE 
 The Securities 
 Section 301. Title and Terms. 
 The aggregate principal amount of Securities which may be authenticated and delivered under this Indenture is limited to $100,000,000, except for
Securities authenticated and delivered upon transfer of, or in exchange for, or in lieu of other Securities pursuant to Sections 304, 305, 306, 805 or 1108. 
 The Securities shall be known and designated as the “10.85% DEBENTURES DUE 2017” of the Company. Their Stated Maturity shall be August 5, 2017 and they shall bear interest from the later of
August 5, 1987 and the most recent Interest Payment Date to which interest has been paid or duly provided for, payable semi-annually in arrears on February 5 and August 5 in each year commencing on February 5, 1988, at the rate
of 10.85% per annum until the principal thereof is paid or made available for payment, as more fully described in the forms of Securities set forth in Sections 202 and 203 of this Indenture. 
 The principal of and interest on the Securities shall be payable at any branch in Canada of The Royal Bank of Canada, or at such other place as may be
designated by the Company for such purpose and approved by the Trustee (any municipality in which any such branch or place is located being herein called a “Place of Payment”). 
 The Regular Record Date referred to in Section 307 for the payment of the interest payable and punctually paid or duly provided for on any Interest
Payment Date in respect of Fully 

  

 - 54 - 

 
Registered Securities shall be the 1st day (whether or not a business day) of the calendar month next preceding said Interest Payment Date. 
 The Securities shall be redeemable as provided in Article Eleven. 
 Section 302. Denominations. 
 The Securities may be issued as Coupon Securities in the denominations of
$1,000, $5,000, $25,000 and $100,000 and as Fully Registered Securities in denominations of $1,000 and integral multiples thereof. 
 Section 303. Execution, Authentication Delivery and Dating. 
 The Securities shall be executed on behalf of the Company by its
Chairman of the Board, its President or one of its Vice-Presidents and by its Secretary or one of its Assistant Secretaries. Any such signature may be manual or printed or otherwise mechanically reproduced and may, but need not be, under or
accompanied by the corporate seal of the Company or a reproduction thereof. The coupons shall bear the printed or otherwise mechanically reproduced signature of the Treasurer or an Assistant Treasurer of the Company. 
 Securities and coupons appertaining thereto bearing the printed or otherwise mechanically reproduced signatures of any Person who was at any time the
proper officer of the Company shall bind the Company, notwithstanding that such Person has ceased to hold such office prior to the authentication and delivery of such Securities. 
  

 - 55 - 

 At any time and from time to time after the execution and delivery of this Indenture, the Company may
deliver Securities executed by the Company to the Trustee, together with a Company Order for the authentication and delivery of such Securities; and the Trustee in accordance with such Company Order shall authenticate and deliver such Securities as
in this Indenture provided and not otherwise. 
 Each Security shall be dated the date of its authentication. 
 No Security or coupon appertaining thereto shall be entitled to any benefit under this Indenture or be valid or obligatory for any purpose, unless there
appears on such Security a certificate of authentication substantially in the form provided for herein executed by the Trustee by the manual signature of one of its authorized officers, and such certificate upon any Security shall be conclusive
evidence, and the only evidence, that such Security has been duly authenticated and delivered hereunder. Subject to the provisions of Section 305 and except as permitted by Section 306, the Trustee shall not authenticate and deliver any
Coupon Security unless all appurtenant coupons for interest then matured have been detached and cancelled. 
 The definitive Securities and
coupons shall be typewritten, printed, lithographed or engraved or produced by any combination of these methods or may be produced in any other manner not contrary to the rules of any securities exchange on which the Securities may at the time be
listed, all as determined by the officers executing such Securities, as evidenced by their signing of such Securities. 
  

 - 56 - 

 Section 304. Temporary Securities. 
 Pending the preparation of definitive Securities, the Company may execute, and upon Company Order the Trustee shall authenticate and deliver, temporary
Securities which are printed, lithographed, typewritten, mimeographed or otherwise produced, in any denomination, substantially of the tenor of the definitive Securities in lieu of which they are issued, in bearer or registered form, with one or
more coupons or without coupons, with or without provision for registration as to principal and with such appropriate insertions, omissions, substitutions and other variations as the officers executing such Securities may determine, as evidenced by
their signing of such Securities. 
 If temporary Securities are issued, the Company will cause definitive Securities to be prepared without
unreasonable delay. After the preparation of definitive Securities, the temporary Securities shall be exchangeable for definitive Securities upon surrender of the temporary Securities at any Place of Registration, without charge to the Holder. Upon
surrender for cancellation of any one or more temporary Securities (accompanied by any unmatured coupons appertaining thereto) the Company shall execute and the Trustee shall authenticate and deliver in exchange therefor a like principal amount of
definitive Securities of authorized form and denominations. Until so exchanged the temporary Securities shall in all respects be entitled to the same benefits under this Indenture as definitive Securities, and interest thereon, when and as payable,
shall be paid to the bearers of temporary Securities upon presentation thereof for notation of such payment thereon, unless such temporary Securities shall be Fully Registered Securities or shall bear coupons for such interest. 
  

 - 57 - 

 Section 305. Registration, Registration of Transfer and Exchange. 
 The Company shall cause to be kept by the Trustee at its principal office in the City of Montreal (or at such other Place of Registration in Canada
maintained by the Trustee as may be requested by the Company with the approval of the Trustee) a central Security register (herein referred to as the “Central Security Register”) and at each other Place of Registration, a branch Security
register (herein collectively referred to as the “Branch Security Registers” and the Branch Security Registers together with the Central Security Register are herein sometimes collectively referred to as the “Security Registers”)
in which, subject to such reasonable regulations as it may prescribe, the Company shall provide for the registration of Securities and the registration of transfers of Registered Securities entitled to be registered or transferred as herein
provided. A Branch Security Register shall at least contain particulars of the registration of Securities and the registration of transfers of Registered Securities made at the Place of Registration where such Branch Security Register is being
maintained and the Central Security Register shall contain particulars of registrations of Securities and registrations of transfers of Registered Securities made at all Places of Registration. The Trustee is hereby appointed registrar for the
purpose of registering Securities and transfers of Registered Securities as herein provided on the Central Security Register and a “Branch Security Registrar” for the purpose of registring Securities and transfers of Registered Securities
as herein provided on the Branch Security Registers expressly provided for on the date hereof. Each Branch Security Registrar (if other than the Trustee) shall provide the Trustee with the particulars of each registration of Securities and of
transfers of 

  

 - 58 - 

 
Registered Securities made on the Branch Security Register for which it has been appointed Branch Security Registrar immediately following any such
registration. 
 Any office or agency appointed pursuant to Section 1002 after the date hereof shall, by its appointment as such, also
be deemed to have been appointed a “Branch Security Registrar” for the purpose of registering Securities and transfers of Registered Securities as herein provided on the Branch Security Register for which it has been appointed Branch
Security Registrar. 
 Upon surrender for transfer of any Fully Registered Security at any Place of Registration, the Company shall execute,
and the Trustee shall authenticate and deliver, in the name of the designated transferee or transferees, one or more new Fully Registered Securities of a like aggregate principal amount, all as requested by the transferor. 
 Upon presentation for registration of any Coupon Security at any Place of Registration, the Security shall be registered as to principal in the name of
the Holder thereof and such registration shall be noted on the Security. Any Coupon Security so registered shall be transferable on the Security Registers, upon presentation of such Security at any Place of Registration for similar notation thereon,
but such Security may be discharged from registration by being in like manner transferred to bearer, whereupon transferability by delivery shall be restored. Coupon Securities shall continue to be subject to successive registrations and discharges
from registration at the option of the Holders thereof. Each such registration or discharge shall be subject to payment, if the Company shall so require, of the charges hereinafter provided. 
  

 - 59 - 

 The Coupon Securities shall be transferable by delivery except while registered as to principal.
Registration of any Coupon Security shall not affect the transferability by delivery of the coupons appertaining thereto, which shall continue to be payable to bearer and transferable by delivery. 
 At the option of the Holder, Coupon Securities may be exchanged for Coupon Securities in any other authorized denominations or for Fully Registered
Securities of any authorized denominations, of a like aggregate principal amount, upon surrender of the Securities to be exchanged at any Place of Registration with all unmatured coupons and all matured coupons in default thereto appertaining, and
upon payment, if the Company shall so require, of the charges hereinafter provided. If the Holder of a Coupon Security is unable to produce any such unmatured coupon or coupons or matured coupon or coupons in default, such exchange may be effected
if the Coupon Securities are accompanied by payment in funds acceptable to the Company in an amount equal to the face amount of such missing coupon or coupons or the surrender of such missing coupon or coupons may be waived by the Company, and the
Trustee, if there be furnished to them such security or indemnity as they may require to save each of them and any Paying Agent harmless. If thereafter the Holder of such Security shall surrender to any Paying Agent any such missing coupon in
respect of which such a payment shall have been made, such Holder shall be entitled to receive the amount of such payment. Notwithstanding the foregoing, in case a Coupon Security is surrendered in exchange for a Fully Registered Security at any
Place of Registration after the close of business at such Place of Registration on (i) any Regular Record Date and before the opening of business at such Place of Registration on the next succeeding Interest Payment Date, or (ii) any
Special Record Date and before the opening of 
  

 - 60 - 

 
business at such Place of Registration on the related proposed date for payment of Defaulted Interest, such Coupon Security shall be surrendered without the
coupon relating to such Interest Payment Date or proposed date of payment, as the case may be. 
 At the option of the Holder, Fully
Registered Securities may be exchanged for Coupon Securities or Fully Registered Securities of any authorized denominations, of a like aggregate principal amount, upon surrender of the Securities to be exchanged at any Place of Registration and upon
payment, if the Company shall so require, of the charges hereinafter provided. In case a Fully Registered Security is surrendered in exchange for a Coupon Security at any Place of Registration after the close of business at such Place of
Registration on (i) any Regular Record Date and before the opening of business at such Place of Registration on the next succeeding Interest Payment Date or (ii) any Special Record Date and before the opening of business at such Place of
Registration on the related proposed date for payment of Defaulted Interest, there shall be detached from the Coupon Security issued on such exchange the coupon relating to such Interest Payment Date or proposed date of payment of Defaulted Interest
and interest will not be paid on such Interest Payment Date or proposed date for payment of Defaulted Interest in respect of the Coupon Security issued in exchange for such Fully Registered Security but will be payable only to the Person in whose
name that Fully Registered Security (or one or more Predecessor Securities) is registered at the close of business on such regular or special Record Date. 
 Whenever any Securities are so surrendered for exchange, the Company shall execute, and the Trustee shall authenticate and deliver, the Securities which the Securityholder making the exchange is entitled to receive.

  

 - 61 - 

 Every Registered Security presented or surrendered for registration of transfer, shall (if so required by
the Company or the Trustee) be duly endorsed, or be accompanied by a written instrument of transfer in form satisfactory to the Company and the Trustee or other Branch Security Registrar, if any, duly executed, by the Holder thereof or his attorney
duly authorized in writing. 
 All Securities issued upon any registration of transfer or exchange of Securities shall be the valid
obligations of the Company, evidencing the same debt, and entitled to the same benefits under this Indenture, as the Securities surrendered upon such registration of transfer or exchange. 
 The Company may require payment of a sum sufficient to cover any tax or other governmental charge that may be imposed in connection with
any transfer or exchange of Securities and in addition a reasonable service charge for the services rendered and expenses incurred on any such exchange or transfer, except in the case of any transfer or exchange, expressly provided in this Indenture
to be made at the Company’s own expense or without expense or without charge to Securityholders. 
 All Securities and coupons
surrendered upon any exchange or transfer provided for in this Indenture shall be promptly cancelled by the Trustee and thereafter disposed of as directed by a Company Order. 
 The Company shall not be required (i) to issue, register the transfer of or exchange any Security during a period beginning at the opening of
business 15 days before the date of any selection of Securities to be redeemed and ending at the 

  

 - 62 - 

 
close of business on the day of the first publication or the mailing (if there is no publication) of the relevant notice of redemption, or (ii) to
register the transfer of or exchange any Security so selected for redemption in whole or in part. 
 Section 306. Mutilated, Destroyed,
Lost and Stolen Securities. 
 If any mutilated Security or any Security with a mutilated coupon appertaining to it is
surrendered to the Trustee, the Company shall execute and the Trustee shall thereupon authenticate and deliver in exchange therefor a new Security of like tenor and principal amount, bearing a number not contemporaneously outstanding, with coupons
corresponding to the coupons, if any, appertaining to the surrendered Security. 
 If there be delivered to the Company and to the Trustee

 (i) evidence to their satisfaction of the destruction, loss or theft of any Security or coupon, and 
 (ii) such security or indemnity as may be required by them to save each of them and any agent of each of them harmless, 
 then, in the absence of notice to the Company or the Trustee that such Security or coupon has been acquired by a bona fide purchaser, the Company shall execute and upon
its request (in the form of a Company Request) the Trustee shall authenticate and deliver in lieu of any such destroyed, lost or stolen Security, or in exchange for the Security to which such coupon appertains (upon surrender of such Security with
all appurtenant coupons not destroyed, lost or stolen), a new Security of like 

  

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tenor and principal amount, bearing a number not contemporaneously outstanding, with coupons corresponding to the coupons, if any, appertaining to such
destroyed, lost or stolen Security or to the Security to which such destroyed, lost or stolen coupon appertains. 
 In case any such
mutilated, destroyed, lost or stolen Security or coupon has become or is about to become due and payable, the Company in its discretion may, instead of issuing a new Security, pay such Security or coupon. 
 Upon the issuance of any new Security under this Section, the Company may require the payment of a sum sufficient to cover any tax or other governmental
charge that may be imposed in relation thereto and any other expenses (including the fees and expenses of the Trustee) connected therewith. 
 Every new Security with its coupons, if any, issued pursuant to this Section in lieu of any destroyed, lost or stolen Security and every new coupon issued pursuant to this Section in lieu of any destroyed, lost or stolen coupon, shall
constitute an original additional contractual obligation of the Company, whether or not the destroyed, lost or stolen Security and its coupons, if any, or the destroyed, lost or stolen coupon, shall be at any time enforceable by anyone, and shall be
entitled to all the benefits of this Indenture equally and proportionately with any and all other Securities and coupons duly issued hereunder. 
 The provisions of this Section are exclusive and shall preclude (to the extent lawful) all other rights and remedies with respect to the replacement or payment of mutilated, destroyed, lost or stolen Securities or coupons. 
  

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 Section 307. Payment of Interest; Interest Rights Preserved. 
 Interest on any Fully Registered Security which is payable, and is punctually paid or duly provided for, on any Interest Payment Date shall be paid to the
Person in whose name that Security (or one or more Predecessor Securities) is registered at the close of business on the Regular Record Date for such interest. In case a Coupon Security is surrendered in exchange for a Fully Registered
Security at any Place of Registration after the close of business at such Place of Registration on (i) any Regular Record Date and before the opening of business at such Place of Registration on the next succeeding Interest Payment Date, or
(ii) any Special Record Date and before the opening of business at such Place of Registration on the related proposed date for payment of Defaulted Interest, such Coupon Security shall be surrendered without the coupon relating to such Interest
Payment Date or proposed date of payment and interest will not be payable on such Interest Payment Date or proposed date of payment in respect of the Fully Registered Security issued in exchange for such Coupon Security, but will be payable only to
the Holder of such coupon. 
 Any Defaulted Interest on any Fully Registered Security shall forthwith cease to be payable to the Holder on
the relevant Regular Record Date by virtue of having been such Holder, and such Defaulted Interest may be paid by the Company, at its election in each case, either as provided in Clause (1) or in Clause (2) below: 
 (1) The Company may elect to make payment of any Defaulted Interest to the Persons in whose names the Fully Registered Securities (or
their respective Predecessor Securities) are registered at the close of business on a 

  

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Special Record Date for the payment of such Defaulted Interest, which shall be fixed in the following manner: the Company shall notify the Trustee in writing
of the amount of Defaulted Interest proposed to be paid on each Fully Registered Security and the date of the proposed payment, and at the same time the Company shall deposit with the Trustee an amount of money equal to the aggregate amount proposed
to be paid in respect of such Defaulted Interest or shall make arrangements satisfactory to the Trustee for such deposit prior to the date of the proposed payment, such money when deposited to be held in trust for the benefit of the Persons entitled
to such Defaulted Interest as in this Clause (1) provided. Thereupon the Trustee shall fix a Special Record Date for the payment of such Defaulted Interest which shall be not more than 15 days and not less than 10 days prior to the date of the
proposed payment and not less than 10 days after the receipt by the Trustee of the notice of the proposed payment. The Trustee shall promptly notify the Company of such Special Record Date and, in the name and at the expense of the Company, shall
cause notice of the proposed payment of such Defaulted Interest and the Special Record Date therefor to be given, to each Holder of Fully Registered Securities not less than 10 days nor more than 15 days prior to such Special Record Date. Notice of
the proposed payment of such Defaulted Interest and the Special Record Date therefor having been so given, such Defaulted Interest shall be paid to the Persons in whose names the Fully Registered Securities (or their respective Predecessor
Securities) are registered at the close of business on such Special Record Date and shall no longer be payable pursuant to the following Clause (2). 
  

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 (2) The Company may make payment of any Defaulted Interest in any other lawful manner and
upon such notice to the Securityholders if, after notice given by the Company to the Trustee of the proposed payment and the manner and notice thereof, such manner of payment and such notice shall be deemed appropriate by the Trustee. 
 Subject to the foregoing provisions of this Section, each Security delivered under this Indenture upon registration of transfer of or in exchange for or
in lieu of any other Security shall carry the rights to interest accrued and unpaid, and to accrue, which were carried by such other Security. 
 Section 308. Persons Deemed Owners. 
 The Company, the Trustee and any agent of the Company or the Trustee may treat the bearer
of any Unregistered Security and the bearer of any coupon, whether or not the Security to which it appertains be registered, as the owner of such Security or coupon for the purpose of receiving payment thereof or on account thereof and for all other
purposes, whether or not such Security or coupon be overdue. Prior to due presentment of a Registered Security for registration of transfer, the Company, the Trustee and any agent of the Company or the Trustee may treat the Person in whose name such
Registered Security is registered as the owner of such Registered Security for the purpose of receiving payment of principal of, and (subject to Section 307) if such Security be a Fully Registered Security, interest on, such Security and for
all other purposes whatsoever (except the payment of coupons appertaining to any Registered Coupon Security and the payment of interest payable on presentation of any temporary Security) whether or not such Security be overdue. 
  

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 Section 309. Cancellation and Disposal of Securities 
 All Securities and coupons surrendered for payment, exchange or redemption shall, if surrendered to the Company or any agent of the Company, be delivered
to the Trustee and, if not already cancelled, shall be promptly cancelled by it. The Company may at any time deliver to the Trustee for cancellation any Securities previously authenticated and delivered hereunder, together with all unpaid coupons
appertaining thereto, which the Company may have acquired in any manner whatsoever, and all Securities so delivered shall be promptly cancelled by the Trustee. No Securities shall be authenticated in lieu of or in exchange for any Securities
cancelled as provided in this Section, except as expressly permitted by this Indenture. All cancelled Securities and coupons held by the Trustee shall be disposed of as directed by a Company Order. 
 Section 310. Authentication and Delivery of Original Issue. 
 Forthwith upon the execution and delivery of this Indenture, or from time to time thereafter, Securities up to the aggregate principal amount provided for in Section 301 may be executed by the Company and
delivered to the Trustee for authentication, and shall thereupon be authenticated and delivered by the Trustee upon Company Order, without any further action by the Company. 
  

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 ARTICLE FOUR 
 Satisfaction and Discharge 
 Section 401. Satisfaction and Discharge of Indenture. 
 This Indenture shall cease to be of further effect (except as to any rights of registration of transfer or exchange of Securities herein expressly
provided for which shall survive and except as to the provisions of Section 1016 which shall remain in effect if the Company has not then fulfilled all of its obligations under such Section), and the Trustee, on demand of and at the expense of
the Company, shall execute proper instruments acknowledging satisfaction and discharge of this Indenture, when 
 (1) either

 (A) all Securities theretofore authenticated and delivered and all coupons appertaining thereto (other than
(i) Securities and coupons which have been destroyed, lost or stolen and which have been replaced or paid as provided in Section 306, (ii) coupons appertaining to Securities called for redemption and maturing after the relevant
Redemption Date, whose surrender has been waived as provided in Section 1107, (iii) Securities and coupons money for whose payment has theretofore been deposited in trust or segregated and held in trust by the Company and thereafter repaid
to the Company or discharged from such trust, as provided in Section 1003, and (iv) coupons appertaining to Coupon Securities surrendered for exchange for Fully Registered Securities and maturing after such exchange, whose surrender is not
required 

  

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or has been waived as provided in Section 305) have been delivered to the Trustee cancelled or for cancellation; or 
 (B) the Company has deposited, or caused to be deposited, or made due provision, as hereinafter provided, for the payment of, an amount
sufficient to pay and discharge the entire indebtedness on the Securities and coupons (other than those referred to in (i) and (iii) of Clause (A) above) not theretofore delivered to the Trustee cancelled or for cancellation, for
principal and interest to the date of such deposit (in the case of Securities which have become due and payable), or to the Stated Maturity or Redemption Date, as the case may be, any sums of money or securities (as hereinafter provided) to be
deposited with the Trustee as trust funds in trust for the purpose of such payment and discharge; 
 (2) the Company has paid or caused to be
paid, or made due provision as hereinafter provided for the payment of, all other sums payable hereunder by the Company; and 
 (3) the
Company has delivered to the Trustee an Officers’ Certificate and an Opinion of Counsel each stating that all conditions precedent herein provided for relating to the satisfaction and discharge of this Indenture have been complied with.

 Notwithstanding the satisfaction and discharge of this Indenture, the obligations of the Company to the Trustee under Section 606 shall survive.

 For the purposes of this Section 401, the Company shall be deemed to have made such due provision for payment if it shall have
deposited or 

  

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caused to be deposited with the Trustee securities issued or guaranteed by the Government of Canada or by any province of Canada or other securities or
instruments acceptable to the Trustee the principal of and interest on which, when due, without any reinvestment thereof, will provide moneys which will be sufficient to pay to the holders of the Securities, when due, all amounts owing in respect of
the principal of and interest on the Securities, and also for the payment of all other moneys payable hereunder by the Company. 
 Section 402. Application of Trust Funds. 
 All securities or money deposited with the Trustee pursuant to Section 401
shall, subject to the provisions of the last paragraph of Section 1003, be held in trust and applied by it, in accordance with the provisions of the Securities and the coupons, to the payment, either directly or through any Paying Agent
(including the Company acting as its own Paying Agent), as the Trustee may determine, to the Holders of the Securities and coupons for whose payment or redemption such securities or money have been deposited with the Trustee, of all sums due and to
become due thereon for principal and interest; but such securities or money need not be segregated from other funds except to the extent required by law. 
 ARTICLE FIVE 
 [*] 
 Section 501. Events of Default. 
 “Event of Default”, wherever used herein means any one of
the following events (whatever the reason 

  

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for such Event of Default and whether it shall be voluntary or involuntary or be effected by operation of law or pursuant to any judgment, decree or order of
any court or any order, rule or regulation of any administrative or governmental body): 
 (1) default in the payment of any
instalment of interest upon any Security when it becomes due and payable, and continuance of such default for a period of 30 days; or 
 (2) default in the payment of the principal of any Security at its Maturity; 
 (3) default in
the performance, or breach, of any covenant or warranty of the Company in this Indenture (other than a covenant or warranty a default in whose performance or whose breach is elsewhere in this Section specifically dealt with), and continuance of such
default or breach for a period of 60 days after there has been given to the Company by the Trustee or to the Company and the Trustee by the Holders of at least 25% in principal amount of the Outstanding Securities, a written notice specifying such
default or breach and requiring it to be remedied and stating that such notice is a “Notice of Default” hereunder; or 
 (4) a default under any one or more indentures or instruments evidencing or under which the Company has at the time outstanding indebtedness for borrowed money in an aggregate principal amount of at least $10,000,000 shall happen and be
continuing and (i) shall consist of a failure to make any payment of principal at maturity or (ii) shall have resulted in the acceleration of such indebtedness so that the same shall be or 
  

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become due and payable prior to the date on which the same would otherwise have become due and payable or shall have resulted in the enforcement of any
security for such indebtedness; provided, however, that if such default under such indentures or instruments shall be remedied or cured by the Company or waived by the holders of such indebtedness, then the Event of Default hereunder by reason
thereof shall be deemed likewise to have been thereupon remedied, cured or waived without further action upon the part of either the Trustee or any of the Securityholders; and provided, further, that, subject to the provisions of Section 601,
the Trustee shall not be charged with knowledge of any default unless written notice thereof shall have been given to the Trustee by the Company, by the holder or an agent of the holder of any such indebtedness, by the trustee then acting under any
indenture or other instrument under which such default shall have occurred, or by the Holders of not less than 5% of the principal amount of the Outstanding Securities; 
 (5) the making by the Company of an assignment for the benefit of its creditors, the filing by it of a petition for the declaration of its
own bankruptcy, the consenting by it to the institution of, or the granting by a court of, bankruptcy or other insolvency proceedings against it, the admission by the Company to some or all of its creditors at a meeting or by other means of
communication that it is insolvent or the commencement by the Company of any proceeding relative to the indebtedness of the Company under any reorganization, arrangement, compromise, adjustment or postponement of debt, dissolution, winding up,
composition or liquidation law or statute of any jurisdiction, whether now or hereafter in effect; or 
  

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 (6) the making of an order or judgment by a court having jurisdiction adjudging the
Company bankrupt or insolvent or ordering the winding up or liquidation or rearrangement of its affairs, or the seizure or attachment of all or a substantial part of the Company’s property at the instance of a creditor, or the appointment of a
Person to take possession or control under an agreement subjecting property of the Company to a security interest or pursuant to an order of any court having jurisdiction of all or a substantial part of the property or all or a substantial part of
the inventory of the Company, such Person to include a receiver, a receiver-manager, an agent, a sequestrator, a trustee under a trust indenture, a creditor in possession or any person or corporation authorized to act on their behalf; provided that
such order, judgment, seizure or attachment remains in force or such taking of possession or control continues in effect for a period of 60 days. 
 Section 502. Acceleration of Maturity; Rescission and Annulment. 
 If an Event of Default occurs and is continuing, then and in
every such case the Trustee may, in its discretion and shall, if so requested by the Holders of not less than 25% in principal amount of the Securities Outstanding declare the principal of all the Securities to be due and payable immediately, by a
notice in writing to the Company, and upon any such declaration such principal shall become immediately due and payable. 
  

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 At any time after such a declaration of acceleration has been made and before a judgment or decree for
payment of the money due has been obtained by the Trustee as hereinafter in this Article provided, the Securityholders may by a Majority Securityholders’ Act delivered to the Company and the Trustee rescind and annul such declaration and its
consequences if 
 (1) the Company has paid or deposited with the Trustee a sum sufficient to pay 
 (A) all overdue instalments of interest on all Securities, 
 (B) the principal of any Securities which have become due otherwise than by such declaration of acceleration and interest thereon at the
rate borne by the Securities, 
 (C) to the extent that payment of such interest is lawful, interest upon overdue instalments
of interest at the rate borne by the Securities, and 
 (D) all sums paid or advanced by the Trustee hereunder and the
reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and counsel; 
 and 
 (2) all Events of Default, other than the non-payment of the principal of Securities which has become due solely by such acceleration,
have been cured or waived as provided in Section 512. 
  

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 No such rescission shall affect any subsequent default or impair any right consequent thereon. 
 Section 503. Collection of Indebtedness and Suits for Enforcement by Trustee. 
 The Company covenants that if 
 (1) default is made in the payment of any instalment of interest on any Security when such interest becomes due and payable and such default continues for a period of 30 days, or 
 (2) default is made in the payment of the principal of any Security at the Maturity thereof, 
 the Company will, upon demand of the Trustee, pay to it, for the benefit of the Holders of such Securities and coupons, the whole amount then due and payable on such
Securities and coupons for principal and interest, with interest upon the overdue principal and, to the extent that payment of such interest shall be legally enforceable, upon overdue instalments of interest, at the rate borne by the Securities; and
in addition thereto, such further amount as shall be sufficient to cover the costs and expenses of collection, including the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and counsel. 
 If the Company fails to pay such amounts forthwith upon such demand, the Trustee, in its own name on behalf of all the Holders of Securities and the
coupons and as trustee of an express trust, may institute a judicial proceeding for the collection of the sums so due and unpaid, and may prosecute 

  

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such proceeding to judgment or final decree, and may enforce the same against the Company or any other obligor upon the Securities and collect the moneys
adjudged or decreed to be payable in the manner provided by law out of the property of the Company or of any other obligor upon the Securities, wherever situated. 
 If an Event of Default occurs and is continuing, the Trustee may in its discretion proceed to protect and enforce its rights and the rights of the Holders of the Securities and the coupons by such appropriate judicial
proceedings as the Trustee shall deem most effectual to protect and enforce any such rights, whether for the specific enforcement of any covenant or agreement in this Indenture or in aid of the exercise of any power granted herein, or to enforce any
other proper remedy. 
 Section 504. Trustee May File Proofs of Claim. 
 In case of the pendency of any receivership, insolvency, liquidation, bankruptcy, reorganization, arrangement, adjustment, composition or other judicial
proceeding relative to the Company or any other obligor upon the Securities or the property of the Company or of such other obligor or their creditors, the Trustee (irrespective of whether the principal of the Securities shall then be due and
payable as therein expressed or by declaration or otherwise and irrespective of whether the Trustee shall have made any demand on the Company for the payment of overdue principal or interest) shall be entitled and empowered, by intervention in such
proceeding or otherwise, 
 (i) to file and prove a claim for the whole amount of principal and interest owing 

  

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and unpaid in respect of the Securities and the coupons and to file such other papers or documents as may be necessary or advisable in order to have the
claims of the Trustee (including any claim for the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and counsel) and of the Holders of the Securities and coupons allowed in such judicial proceeding, and

 (ii) to collect and receive any moneys or other property payable or deliverable on any such claims and to distribute the
same; 
 and any receiver, assignee, trustee, liquidator, sequestrator (or other similar official) in any such judicial proceeding is hereby authorized by
each Securityholder to make such payments to the Trustee, and if the Trustee shall so consent, to the making of such payments directly to the Holders of the Securities and coupons, to pay to the Trustee any amount due to it for the reasonable
compensation, expenses, disbursements and advances of the Trustee, its agents and counsel, and any other amounts due the Trustee under Section 606. 
 Subject to Article Seven and Section 802, nothing herein contained shall be deemed to authorize the Trustee to authorize or consent to or accept or adopt on behalf of any Holder of a Security or a coupon any plan
or reorganization, arrangement, adjustment or composition affecting the Securities or the coupons or the rights of any Holder thereof, or to authorize the Trustee to vote in respect of the claim of any such Holder in any such proceeding. 

 

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 Section 505. Trustee May Enforce Claims Without Possession of Securities or Coupons. 
 All rights of action and claims under this Indenture or the Securities or coupons may be prosecuted and enforced by the Trustee without the possession of
any of the Securities or coupons or the production thereof in any proceeding relating thereto, and any such proceeding instituted by the Trustee shall be brought in its own name on behalf of the Securityholders and as trustee of an express trust,
and any recovery of judgment shall, after provision for the payment of the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and counsel, be for the ratable benefit of the Holders of the Securities and coupons
in respect of which such judgment has been recovered. 
 Section 506. Application of Money Collected. 
 Any money collected by the Trustee pursuant to this Article shall be applied in the following order, at the date or dates fixed by the Trustee and, in
case of the distribution of such money on account of principal or interest, upon presentation of the Securities or coupons, or both, as the case may be, and the notation thereon of the payment if only partially paid and upon surrender thereof if
fully paid: 
 FIRST: To the payment of all amounts due the Trustee under Section 606; and 
 SECOND: To the payment of the amount then due and unpaid upon the Securities and coupons for principal and interest, in respect of which or for the
benefit of which such money has been collected, ratably, without preference or priority of any 

  

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kind, according to the amounts due and payable on such Securities and coupons, for principal and interest, respectively. 
 Section 507. Limitation on Suits. 
 No
Holder of any Security or coupon shall have any right to institute against the Company or any other obligor upon the Securities any proceeding, judicial or otherwise, with respect to this Indenture, or for the appointment of a receiver or trustee,
or for any other remedy hereunder, unless 
 (1) an Event of Default shall have occurred and be continuing and such Holder
shall have previously given written notice to the Trustee of such continuing Event of Default; 
 (2) the Holders of not less
than 25% in principal amount of the Outstanding Securities shall have made written request to the Trustee to institute proceedings in respect of such Event of Default in its own name as Trustee hereunder; 
 (3) such Holder or Holders have offered to the Trustee reasonable indemnity against the costs, expenses and liabilities to be incurred in
compliance with such request; 
 (4) the Trustee for 60 days after its receipt of such notice, request and offer of indemnity
has failed to institute any such proceeding; and 
 (5) no direction inconsistent with such written request has been given to
the Trustee during such 60 day period by a Majority Securityholders’ Act; 

  

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it being understood and intended that no one or more Holders of Securities or coupons shall have any right in any manner whatever by virtue of, or by
availing of, any provision of this Indenture to affect, disturb or prejudice the rights of any other Holder of Securities or coupons, or to obtain or to seek to obtain priority or preference over any other such Holder or to enforce any right under
this Indenture, except in the manner herein provided and for the equal and ratable benefit of all the Holders of the Securities and coupons. 
 Section 508. Restoration of Rights and Remedies. 
 If the Trustee or any Holder of a Security or a coupon has instituted any
proceeding to enforce any right or remedy under this Indenture and such proceeding has been discontinued or abandoned for any reason, or has been determined adversely to the Trustee or to such Holder then and in every such case the Company, the
Trustee and the Holders of such Securities and coupons 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 such
Holders shall continue as though no such proceeding had been instituted. 
 Section 509. Rights and Remedies Cumulative. 
 Except as provided in the last paragraph of Section 306, no right or remedy herein conferred upon or reserved to the Trustee or to the Holders of
Securities or coupons is intended to be exclusive of any other right or remedy, and every right and remedy shall, to the extent permitted by law, be cumulative and in addition to every other right 

  

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and remedy given hereunder or now or hereafter existing at law or in equity or otherwise. The assertion or employment of any right or remedy hereunder, or
otherwise, shall not prevent the concurrent assertion or employment of any other appropriate right or remedy. 
 Section 510. Delay or
Omission Not Waiver. 
 No delay or omission of the Trustee or of any Holder of any Security or coupon to exercise any right or remedy
accruing upon any Event of Default shall impair any such right or remedy or constitute a waiver of any such Event of Default or an acquiescence therein. Every right and remedy given by this Article or by law to the Trustee or to the Securityholders
may be exercised from time to time, and as often as may be deemed expedient, by the Trustee or by the Securityholders, as the case may be. 
 Section 511. Control by Securityholders. 
 The Securityholders, by way of a Majority Securityholders’ Act, shall have the
right to direct the time, method and place of conducting any proceeding for any remedy available to the Trustee or exercising any trust or power conferred on the Trustee, provided that 
 (1) such direction shall not be in conflict with any rule of law or this Indenture, 
 (2) the Trustee shall not determine that the action so directed would be unjustly prejudicial to the Holders not taking part in such
direction, and, 
  

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 (3) the Trustee may take any other action deemed proper by the Trustee which is not
inconsistent with such direction. 
 Section 512. Waiver of Past Defaults. 
 The Securityholders, by way of a Majority Securityholders’ Act, may on behalf of the Holders of all the Securities waive any past default hereunder
and its consequences, except a default in respect of a covenant or provision hereof which under Article Eight cannot be modified or amended without the consent of the Holder of each Outstanding Security affected. 
 Upon any such waiver, such default shall cease to exist, and any Event of Default arising from such default shall be deemed to have been cured, for every
purpose of this Indenture; but no such waiver shall extend to any subsequent or other default or impair any right consequent thereon. 
 Section 513. Undertaking for Costs. 
 All parties to this Indenture agree, and each Holder of any Security or coupon by his
acceptance thereof shall be deemed to have agreed, that any court may in its discretion require, in any suit for the enforcement of any right or remedy under this Indenture, or in any suit against the Trustee for any action taken or omitted by it as
Trustee, the filing by any party litigant in such suit of an undertaking to pay the costs of such suit, and that such court may in its discretion assess reasonable costs, including reasonable attorneys’ fees, against any party litigant in such
suit, having due regard to the merits and good faith of the claims or defenses made by such party litigant; but the provisions of this Section shall not apply to any 

  

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suit instituted by the Trustee or to any suit instituted by any Securityholder, or group of Securityholders, holding more than 10% in principal amount of the
Outstanding Securities. 
 ARTICLE SIX 
 The Trustee 
 Section 601. Certain Duties and Responsibilities. 
 (a) The Trustee shall in the exercise of such of the rights and powers vested in it by, and in the performance of its duties under, this Indenture, act
honestly and in good faith with a view to the best interests of the Holders of the Securities and the coupons and shall exercise the care, diligence and skill of a reasonably prudent trustee. 
 (b) The Trustee shall not be liable for any act, or omission or failure in the exercise of such rights or powers or in the performance of such duties if
in doing so it has relied in good faith upon statements contained in any Board Resolution, Company Request, Company Order, Company Consent, Officers’ Certificate, Opinion of Counsel or in any other statutory declaration, certificate, opinion or
report that complies with this Indenture or with applicable law. 
 (c) No provision of this Indenture shall be construed to relieve the
Trustee from liability for its own negligent action, its own negligent failure to act, or its own wilful misconduct, except that, subject to any applicable provision of law, 
  

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 (1) this Subsection shall not be construed to limit the effect of Subsections
(a) and (b) of this Section; 
 (2) the Trustee shall not be liable for any error of judgment made in good faith by
a Responsible Officer, unless it shall be proved that the Trustee was negligent in ascertaining the pertinent facts; 
 (3)
the Trustee shall not be liable with respect to any action taken or omitted to be taken by it in good faith in accordance with the directions set forth in a Majority Securityholders’ Act relating to the time, method and place of conducting any
proceeding for any remedy available to the Trustee, or exercising or refraining from the exercise of any trust or power conferred upon the Trustee, under this Indenture; and 
 (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) Whether or not therein expressly so provided, every provision of this Indenture relating to the conduct or affecting
the liability of or affording protection to the Trustee shall be subject to the provisions of this Section. 
  

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 Section 602. Certain Rights of Trustee. 
 Except as otherwise provided in Section 601 or as may be required by applicable law: 
 (a) the Trustee may rely and shall be protected in acting or refraining from acting upon any resolution, certificate, statement, instrument, opinion,
report, notice, request, direction, consent, order, bond, debenture, coupon or other paper or document believed by it to be genuine and to have been signed or presented by the proper party or parties; 
 (b) any request or direction of the Company mentioned herein shall be sufficiently evidenced by a Company Request or Company Order or Company Consent and
any resolution of the Board of Directors may be sufficiently evidenced by a Board Resolution; 
 (c) whenever in the administration of this
Indenture the Trustee shall deem it desirable that a matter be proved or established prior to taking, suffering or omitting any action hereunder, the Trustee (unless other evidence be herein specifically prescribed) may, in the absence of bad faith
on its part, rely upon an Officers’ Certificate; 
 (d) the Trustee may consult with counsel and the written advice of such counsel or
any Opinion of Counsel shall be full and complete authorization and protection in respect of any action taken, suffered or omitted by it hereunder in good faith and in reliance thereon; 
 (e) the Trustee shall be under no obligation to exercise any of the rights or powers vested in it by this Indenture at the request or direction of any of
the Securityholders pursuant to this Indenture, unless such Securityholders shall have 
  

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offered to the Trustee reasonable security and indemnity against the costs, charges, expenses and liabilities which might be incurred by it in compliance
with such request or direction; 
 (f) the Trustee shall not be bound to make any investigation into the facts or matters stated in any
resolution, certificate, statement, instrument, opinion, report, notice, request, direction, consent, order, bond, debenture, coupon or other paper or document but the Trustee, in its discretion, may make such further inquiry or investigation into
such facts or matters as it may see fit, and, if the Trustee shall determine to make such further inquiry or investigation, it shall be entitled to examine the books, records and premises of the Company, personally or by agent or attorney; and

 (g) the Trustee may execute any of the trusts or powers hereunder or perform any duties hereunder either directly or by or through agents
or attorneys and the Trustee shall not be responsible for any misconduct or negligence on the part of any agent or attorney appointed with due care by it hereunder. 
 Section 603. Not Responsible for Recitals or Issuance of Securities. 
 The recitals contained herein
(other than the description of the Trustee) and in the Securities (except the Trustee’s certificate of authentication) and in the coupons shall be taken as the statements of the Company, and the Trustee assumes no responsibility for their
correctness. The Trustee makes no representations as to the validity or sufficiency of this Indenture or of the Securities or coupons. The Trustee shall not be accountable for the use or application by the Company of Securities or the proceeds
thereof. 
  

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 Section 604. May Hold Securities. 
 The Trustee, any Paying Agent, any Branch Security Registrar or any other agent of the Company may, in its own right or in any other capacity, become the
owner or pledgee of Securities and coupons and may, subject to the provision of any law which may at the time be applicable, otherwise deal with the Company with the same rights it would have if it were not Trustee, Paying Agent, Branch Security
Registrar or such other agent. 
 Subject to the provisions of any law which may at the time be applicable, the Trustee may act as trustee
under or as any other party to any indenture or agreement to which the Company may be a party or in which the Company may have an interest in the same manner as if it were not Trustee hereunder. 
 Section 605. Money Held in Trust. 
 Money held by the Trustee in trust hereunder need not be segregated from other funds except to the extent required by law. The Trustee shall be under no liability for interest on any money received by it hereunder except as otherwise agreed
with the Company. 
  

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 Section 606. Compensation and Reimbursement. 
 The Company agrees 
 (1) to
pay to the Trustee from time to time reasonable compensation for all services rendered by it hereunder (which compensation shall not be limited by any provision of law in regard to the compensation of a trustee of an express trust); 
 (2) except as otherwise expressly provided herein, to reimburse the Trustee upon its request for all reasonable expenses, disbursements
and advances incurred or made by the Trustee in accordance with any provision of this Indenture (including the reasonable compensation and the expenses and disbursements of its agents, consultants and counsel), except any such expense, disbursement
or advance as may be attributable to its negligence or bad faith; and 
 (3) to indemnify the Trustee for, and to hold it
harmless against, any loss, liability or expense incurred without negligence or bad faith on its part, arising out of or in connection with the acceptance or administration of this trust, including the costs and expenses of defending itself against
any claim or liability in connection with the exercise or performance of any of its powers or duties hereunder. 
 All such payments and reimbursements shall
be made with interest at the rate herein provided to be paid on the Securities at the relevant time or times. 
  

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 Section 607. Disqualification; Conflicting Interests. 
 (a) The Trustee represents and warrants that it is not aware of any material conflict of interest between its role as Trustee hereunder and its role in
any other capacity. 
 (b) The Trustee shall, within 90 days after it becomes aware that any material conflict exists between its role as
Trustee hereunder and its role in any other capacity, either eliminate such conflict of interest or resign in the manner and with the effect specified in this Article. 
 Section 608. Corporate Trustee Required; Eligibility. 
 There shall at all times be a Trustee hereunder
which shall be a corporation incorporated under the laws of Canada or a province thereof and authorized to carry on the business of a trust company and having a combined capital and surplus of at least $5,000,000, and having a principal office in
the City of Montreal or the City of Toronto. If such corporation publishes financial statements at least annually, for the purposes of this section, the combined capital and surplus of such corporation shall be deemed to be its combined capital and
surplus as set forth in its most recent financial statements so published. If at any time the Trustee shall cease to be eligible in accordance with the provisions of this Section, it shall resign immediately in the manner and with the effect
specified in this Article. 
  

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 Section 609. Resignation and Removal; Appointment of Successor. 
 (a) No resignation or removal of the Trustee and no appointment of a successor Trustee pursuant to this Article shall become effective until the
acceptance of appointment by the successor Trustee under Section 610. 
 (b) The Trustee may resign at any time by giving written notice
thereof to the Company. If an instrument of acceptance by a successor Trustee shall not have been delivered to the Trustee within 30 days after the giving of such notice of resignation, the resigning Trustee may petition any court of competent
jurisdiction for the appointment of a successor Trustee. 
 (c) The Trustee may be removed at any time by a Majority Securityholders’
Act delivered to the Trustee and to the Company. 
 (d) If at any time: 
 (1) the Trustee shall fail to comply with Section 607(b) after written request therefor by the Company (in the form of a Company
Request) or by any Securityholder who has been a bona fide Holder of a Security for at least 6 months, or 
 (2) the Trustee
shall cease to be eligible under Section 608 and shall fail to resign after written request therefor by the Company (in the form of a Company Request) or by any such Securityholder, or 
  

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 (3) the Trustee shall become incapable of acting or shall be adjudged a bankrupt or
insolvent or a receiver of the Trustee or of its property shall be appointed or any public officer shall take charge or control of the Trustee or of its property or affairs for the purpose of rehabilitation, conservation or liquidation, 

then, in any such case, (i) the Company by a Board Resolution may remove the Trustee, or (ii) subject to Section 513, any Securityholder who has been a
bona fide Holder of a Security for at least 6 months may, on behalf of himself and all others similarly situated, petition any court of competent jurisdiction for the removal of the Trustee and the appointment of a successor Trustee. 
 (e) If the Trustee shall resign, be removed or become incapable of acting, or if a vacancy shall occur in the office of Trustee for any cause, the
Company, by a Board Resolution, shall promptly appoint a successor Trustee who shall comply with the applicable provisions of Section 610. If, within twelve months after such resignation, removal or incapability, or the occurrence of such
vacancy, a successor Trustee shall be appointed by a Majority Securityholders’ Act delivered to the Company and the retiring Trustee, the successor Trustee so appointed shall, forthwith upon its acceptance of such appointment in accordance with
the applicable provisions of Section 610, become the successor Trustee and supersede any successor Trustee appointed by the Company. If no successor Trustee shall have been appointed by the Company or the Securityholders and accepted
appointment in the manner required by Section 610, any Securityholder who has been a bona fide Holder of a Security for at least 6 months may, on behalf of himself and all others similarly situated, petition any court of competent jurisdiction
for the appointment of the successor Trustee. 
  

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 (f) The Company shall give notice of each resignation and each removal of the Trustee and each
appointment of a successor Trustee to the Securityholders in accordance with Section 105 and each such notice shall include the name and address of the principal corporate trust office of the successor Trustee. 
 Section 610. Acceptance of Appointment by Successor. 
 Every successor Trustee appointed hereunder shall execute, acknowledge and deliver to the Company and to the retiring Trustee an instrument accepting such appointment, and thereupon the resignation or removal of the
retiring Trustee shall become effective and such successor Trustee, without any further act, deed or conveyance, shall become vested with all the rights, powers, trusts and duties of the retiring Trustee; but, on request of the Company (in the form
of a Company Request) or the successor Trustee, such retiring Trustee shall, upon payment of its charges, execute and deliver an instrument transferring to such successor Trustee all the rights, powers and trusts of the retiring Trustee, and shall
duly assign, transfer and deliver to such successor Trustee all property and money held by such retiring Trustee hereunder. Upon request of any such successor Trustee, the Company shall execute any and all instruments for more fully and certainly
vesting in and confirming to such successor Trustee all such rights, powers and trusts. 
 No successor Trustee shall accept its appointment
unless at the time of such acceptance such successor Trustee shall be qualified and eligible under this Article. 
  

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 Section 611. Merger or Consolidation. 
 Any corporation into which the Trustee may be merged, amalgamated or converted or with which it may be consolidated, or any corporation resulting from any
amalgamation, merger or consolidation to which the Trustee shall be a party, or any corporation succeeding to all or substantially all of the corporate trust business of the Trustee, shall be the successor of the Trustee hereunder, provided such
corporation shall be otherwise qualified and eligible under this Article, without the execution or filing of any paper or any further act on the part of any of the parties hereto. In case any Securities shall have been authenticated, but not
delivered, by the Trustee then in office, any successor by amalgamation, merger or consolidation to such authenticating Trustee may adopt such authentication and deliver the Securities so authenticated with the same effect as if such successor
Trustee had itself authenticated such Securities. 
 ARTICLE SEVEN 
 Consolidation, Merger, Conveyance or Transfer 
 Section 701. Company May
Consolidate, etc. only on Certain Terms. 
 The Company shall not consolidate with, amalgamate with or merge into any other corporation or
convey or transfer its properties and assets substantially as an entirety to any Person, unless: 
  

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 (1) the corporation formed by such consolidation or amalgamation or into which the
Company is merged or the Person which acquires by operation of law or by conveyance or transfer the properties and assets of the Company substantially as an entirety shall be a corporation organized and existing under the laws of Canada or any
Province or Territory thereof, and shall (except in any case where such assumption is deemed to have occurred by the sole operation of law), expressly assume, by an indenture supplemental hereto, executed and delivered to the Trustee, in form
satisfactory to the Trustee, the due and punctual payment of the principal of and interest on all the Securities and the performance of every covenant of this Indenture on the part of the Company to be performed or observed; 
 (2) immediately after giving effect to such transaction, no Event of Default, and no event which, after notice or lapse of time, or both,
would become an Event of Default, shall have happened and be continuing; and 
 (3) the Company shall have delivered to the
Trustee an Officers’ Certificate and an Opinion of Counsel each stating that such consolidation, merger, amalgamation, conveyance or transfer and such supplemental indenture, if any, comply with this Article and that all conditions precedent
herein provided for relating to such transaction have been complied with. 
 Section 702. Successor Corporation Substituted. 

Upon any consolidation, or merger, or amalgamation, or any conveyance or transfer of the properties 

  

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and assets of the Company substantially as an entirety in accordance with Section 701, the successor corporation formed by such consolidation or
amalgamation or into which the Company is merged or to which such conveyance or transfer is made shall succeed to, and be substituted for, and may exercise every right and power of, the Company under this Indenture with the same effect as if such
successor corporation had been named as the Company herein; provided, however, that no such conveyance or transfer shall have the effect of releasing the Person named as the “Company” in the first paragraph of this instrument or any
successor corporation which shall theretofore have become such in the manner prescribed in this Article from its liability as obligor and maker on any of the Securities or coupons unless such conveyance or transfer is followed by the complete
liquidation of the Company and substantially all the assets of the Company. 
 ARTICLE EIGHT 
 Supplemental Indentures 
 Section 801.
Supplemental Indentures Without Consent of Securityholders. 
 Without the consent of the Holders of any Securities, the Company, when
authorized by a Board Resolution, and the Trustee, at any time and from time to time, may enter into one or more indentures supplemental hereto, in form satisfactory to the Trustee, for any of the following purposes: 
 (1) for the benefit of the Holders of the Securities to provide for any additional covenant or covenants of the Company or any 

  

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security for or guarantee of the Securities or to surrender any right or power herein conferred upon the Company; or 
 (2) to cure any ambiguity, to correct or supplement any provision herein which may be inconsistent with any other provision herein, or to
make any other provisions with respect to matters or questions arising under this Indenture which shall not be inconsistent with the provisions Of this Indenture, provided such action pursuant to this Clause shall not, in the judgment of the
Trustee, adversely affect the interests of the Holders of the Securities or coupons in any material respect; or 
 (3) to
modify, eliminate or add to the provisions of this indenture to such extent as shall be necessary to effect the qualifications of this Indenture under any applicable law of Canada or of any Province or Territory thereof heretofore or hereafter
enacted; or 
 (4) as required by the provisions of Section 701 (1). 
 Section 802. Supplemental Indentures With Consent of Securityholders. 
 When authorized or permitted by a Majority Securityholders’ Act delivered to the Company and the Trustee, the Company, when authorized by a Board Resolution, and the Trustee may enter into an indenture or
indentures supplemental hereto for the purpose of adding any provisions to or changing in any manner or eliminating any of the provisions of this Indenture or of modifying in any manner the rights of the Holders of the Securities and coupons under
this Indenture; provided, however, that no 

  

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such supplemental indenture shall, without the consent of the Holder of each Outstanding Security affected thereby, 
 (1) reduce the requirements of Section 904 for quorum or voting or reduce the percentage in principal amount of the Outstanding
Securities, the consent of whose Holders is required for any such supplemental indenture, or the consent of whose Holders is required for any Majority Securityholders’ Act or for any waiver of compliance with provisions of this Indenture or of
defaults hereunder and their consequences provided for in this Indenture, or 
 (2) modify any of the provisions of this
Section or Section 512, or Section 1017, except to increase any such percentage or to provide that certain other provisions of this Indenture cannot be modified or waived without the consent of the Holder of each Security affected thereby.

 It shall not be necessary for any Act of Securityholders under this Section to approve the particular form of any proposed supplemental
indenture, but it shall be sufficient if such Act shall approve the substance thereof. 
 Section 803. Execution of Supplemental
Indentures. 
 In executing, or accepting the additional trusts created by, any supplemental indenture permitted by this Article or the
modifications thereby of the trusts created by this Indenture the Trustee shall be entitled to receive, and (subject to Section 601) shall be fully protected in relying upon, an Opinion of Counsel stating that the execu- 

  

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tion of such supplemental indenture is authorized or permitted by this Indenture. The Trustee may, but shall not be obligated to, enter into any such
supplemental indenture which affects the Trustee’s own rights, duties or immunities under this Indenture or otherwise. 
 Section 804. Effect of Supplemental Indentures. 
 Upon the execution of any supplemental indenture under this Article, this
Indenture shall be modified in accordance therewith, and such supplemental indenture shall form a part of this Indenture for all purposes; and every Holder of Securities theretofore or thereafter authenticated and delivered hereunder and of any
coupons appertaining thereto shall be bound thereby. 
 Section 805. Reference in Securities to Supplemental Indentures. 
 Securities authenticated and delivered after the execution of any supplemental indenture pursuant to this Article may, and shall if required by the
Trustee, bear a notation in form approved by the Trustee as to any matter provided for in such supplemental indenture. If the Company shall so determine by Board Resolution, new Securities so modified as to conform, in the opinion of the Trustee, to
any such supplemental indenture may be prepared and executed by the Company and authenticated and delivered by the Trustee in exchange for Outstanding Securities. 
  

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 ARTICLE NINE 
 Meetings of Holders of Securities 
 Section 901. Purposes for Which Meetings May Be Called. 

A meeting of Holders of Securities may be called at any time and from time to time pursuant to this Article to make, give or take any request, demand,
authorization, direction, notice, consent, waiver or other action authorized by this Indenture to be made, given or taken by Holders of Securities. 
 Section 902. Call, Notice and Place of Meetings. 
 (a) The Trustee may at any time call a meeting of Holders of
Securities for any purpose specified in Section 901, to be held at such time and at such place in the City of Montreal or the City of Toronto as the Trustee or, in case of its failure to act, the Company or the Securityholders calling the
meeting, shall determine. Notice of every meeting of Holders of Securities, setting forth the time and the place of such meeting and in general terms the action proposed to be taken at such meeting, shall be given to each Holder of Outstanding
Securities in the manner provided in this Indenture not less than 21 nor more than 50 days prior to the date fixed for the meeting. 
 (b) In case at any time the Company, pursuant to a Board Resolution, or the Holders of at least 10% in principal amount of the Outstanding Securities shall have requested 

  

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the Trustee to call a meeting of the Holders of Securities for any purpose specified in Section 901, by written request setting forth in reasonable
detail the action proposed to be taken at the meeting, and the Trustee shall not have either given the notice of such meeting or made the publication of the notice of such meeting within 21 days after receipt of such request or shall not thereafter
proceed to cause the meeting to be held as provided herein, then the Company, or the Holders of Outstanding Securities in the amount above specified, as the case may be, may determine the time and the place in the City of Montreal or the City of
Toronto for such meeting and may call such meeting for such purposes by giving notice thereof as provided in subsection (a) of this Section. 
 Section 903. Persons Entitled to Vote at Meetings. 
 To be entitled to vote at any meeting of Holders of Securities, a Person
shall be (1) a Holder of one or more Outstanding Securities, or (2) a Person appointed by an instrument in writing as proxy for a Holder or Holders of one or more Outstanding Securities by such Holder or Holders. The only Persons who shall
be entitled to be present or to speak at any meeting of Holders shall be the Persons entitled to vote at such meeting and their counsel, any representatives of the Trustee and its counsel and any representatives of the Company and its counsel.

 Section 904. Quorum; Action. 
 The Persons entitled to vote a majority in principal amount of the Outstanding Securities 

  

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shall constitute a quorum. In the absence of a quorum within 30 minutes of the time appointed for any such meeting, the meeting shall, if convened at the
request of Holders of Securities, be dissolved. In any other case the meeting may be adjourned for a period of not less than 10 days as determined by the chairman of the meeting prior to the adjournment of such meeting. Notice of the reconvening of
such adjourned meeting shall be given as provided in Section 902(a), except that such notice may be given not less than five days prior to the date on which the meeting is scheduled to be reconvened. Notice of the reconvening of such adjourned
meeting shall state expressly the principal amount of the Outstanding Securities which shall constitute a quorum. 
 At the reconvening of
any meeting adjourned for a lack of a quorum, the Persons then present and entitled to vote shall constitute a quorum for the taking of any action set forth in the notice of the original meeting. 
 At a meeting or an adjourned meeting duly reconvened and at which a quorum is present as aforesaid, any resolution and all matters (except as limited by
the proviso to Section 802 and except where, pursuant to this Indenture, a Majority Securityholders’ Act is required) shall be effectively passed and decided if passed or decided by the Persons entitled to vote a majority in principal
amount of Outstanding Securities represented and voting at such meeting. 
 Any resolution passed or decision taken at any meeting of Holders
of Securities duly held in accordance with this Section shall (except as limited by the proviso to Section 802) be binding on all the Holders of Securities and coupons, whether or not present or represented at the meeting. 
  

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 Section 905. Determination of Voting Rights; Conduct and Adjournment of Meetings. 
 (a) Notwithstanding any other provisions of this Indenture, the Trustee and the Person nominated by the Trustee to act as chairman of the
meeting, or either of them, may make such reasonable regulations as it or he may deem advisable for any meeting or adjourned meeting of Holders of Securities in regard to proof of the holding of Securities and of the appointment of proxies and in
regard to the appointment and duties of scrutineers, the submission and examination of proxies, certificates and other evidence of the right to vote, and such other matters concerning the conduct of the meeting as it or he shall deem appropriate.
Except as otherwise permitted or required by any such regulations, the holding of any Securities shall be proved in the manner specified in Section 103 and the appointment of any proxy shall be proved in the manner specified in said
Section 103 or by having the signature of the Person executing the proxy witnessed or guaranteed by any trust company, bank, banker or other Person, acceptable to the Trustee, authorized by Section 103 to certify to the holding of
Unregistered Securities. Such regulations may provide that written instruments appointing proxies, regular on their face, may be presumed valid and genuine without the proof specified in said Section 103 or other proof. 
 (b) The Trustee shall, by an instrument in writing, nominate a chairman of the meeting, unless the meeting shall have been called by the
Company or by Holders of Securities as provided in Section 902(b), in which case the Company, or the Holders of Securities calling the meeting, as the case may be, shall in like manner nominate a chairman. 
  

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 (c) At any meeting each Holder of a Security, whether present in person or represented by
proxy, shall be entitled to one vote for each $1,000 principal amount of Securities held by him; provided, however, that no vote shall be cast or counted at any meeting in respect of any Security challenged as not Outstanding and ruled by the
chairman of the meeting to be not Outstanding. The chairman of the meeting shall have no right to vote, except as a Holder of a Security or as the proxy of a Holder of a Security. 
 (d) Any meeting of Holders of Securities duly called pursuant to Section 902 at which a quorum is present may be adjourned from time
to time by a resolution passed at such meeting and the meeting may be held as so adjourned without further notice. 
 Section 906.
Counting Votes and Recording Action of Meetings. 
 The vote upon any resolution submitted to any meeting of Holders of Securities shall be by
written ballots on which shall be subscribed the signatures of the Holders of Securities or of their representatives by proxy and such other information as may be required by the regulations made for the meeting. The chairman of the meeting shall
appoint a secretary and may appoint a scrutineer or scrutineers to act at the meeting. A record, at least in triplicate, of the proceedings of each meeting of Holders of Securities shall be prepared by the secretary of the meeting and there shall be
attached to said record the original reports of the scrutineers and affidavits by one or more persons 

  

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having knowledge of the facts setting forth a copy of the notice of the meeting and showing that said notice was given as provided in Section 902 and,
if applicable, Section 904. Each copy shall be signed and verified by the affidavits of the chairman and secretary of the meeting and one such copy shall be delivered to the Company and another to the Trustee to be preserved by the Trustee, the
latter to have attached thereto the ballots voted at the meeting. Any record so signed and verified shall be conclusive evidence of the matters therein stated. 
 ARTICLE TEN 
 Covenants 
 Section 1001. Payment of Principal and Interest. 
 The Company will duly and punctually pay the
principal of and interest on the Securities in accordance with the terms of the Securities, the coupons appertaining thereto and this Indenture. 
 Section 1002. Maintenance of Places of Registration. 
 The Company will cause the Central Security Register to be maintained by
the Trustee at its principal office in the City of Montreal (or at such other Place of Registration in Canada maintained by the Trustee as may be requested by the Company with the approval of the Trustee) and, subject as hereinafter in this Section
provided, will cause Branch Security Registers to be maintained by the Trustee at each of the other Places of Registration. 
  

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 The Company hereby appoints each Place of Registration where notices and demands to or upon the Company
in respect of the Securities and coupons and this Identure may be served. 
 The Company may at any time and from time to time, with the
approval of the Trustee, vary or terminate the appointment of any Branch Security Registrar or appoint other offices or agencies as Branch Security Registrars where Securities may be presented or surrendered for registration, registration of
transfer or exchange or where notices or demands to or upon the Company in respect of the Securities and coupons and this Indenture may be served or for any one or more of such purposes; provided however that the Company will maintain an office or
agency for all such purposes in each of the Cities of Halifax, Saint John, Montreal, Toronto, Winnipeg, Regina, Calgary and Vancouver. The Company will give prompt written notice to the Trustee of the location of, or of any change in the location
of, any Branch Security Registrar. 
 Section 1003. Money for Security Payments to be Held in Trust. 
 If the Company shall at any time act as its own Paying Agent, it will, on or before each due date of the principal of or interest on, any of the
Securities, segregate and hold in trust for the benefit of the Holders of such Securities and of the coupons for such interest a sum sufficient to pay the principal or interest so becoming due until such sums shall be paid to such Holders or
otherwise disposed of as herein provided, and will promptly notify the Trustee of its action or failure so to act. 
  

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 Whenever the Company shall have one or more Paying Agents, it will, prior to each due date of the
principal of or interest on, any Securities, deposit with a Paying Agent a sum sufficient to pay the principal or interest, so becoming due, such sum to be held in trust for the benefit of the Holders of such Securities and of the coupons for such
interest, and (unless such Paying Agent is the Trustee) the Company will promptly notify the Trustee of its action or failure so to act. 
 The Company will cause each Paying Agent other than the Trustee to execute and deliver to the Trustee an instrument in which such Paying Agent shall agree with the Trustee, subject to the provisions of this Section, that such Paying Agent
will 
 (1) hold all sums held by it for the payment of the principal of or interest on Securities in trust for the benefit of
the Holders of such Securities and of the coupons for such interest until such sums shall be paid to such Holders or otherwise disposed of as herein provided; 
 (2) give the Trustee notice of any default by the Company (or any other obligor upon the Securities) in the making of any payment of
principal or interest; and 
 (3) at any time during the continuance of any such default, upon the written request of the
Trustee, forthwith pay to the Trustee all sums so held in trust by such Paying Agent. 
 The Company may at any time, for the purpose of
obtaining the satisfaction and discharge of this Indenture or for any other purpose, pay, or by Company Order direct any Paying Agent to pay, to the Trustee all sums held in trust by the Company 

  

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or such Paying Agent, such sums to be held by the Trustee upon the same trusts as those upon which such sums were held by the Company or such Paying Agent;
and, upon such payment by any Paying Agent to the Trustee, such Paying Agent shall be released from all further liability with respect to such money. 
 Any money deposited with the Trustee or any Paying Agent or then held by the Company, in trust for the payment of the principal of or interest on any Security and remaining unclaimed for 6 years after the later of the
date of the original deposit or holding in trust of such money by the Company and the date when such principal or interest has become due and payable shall be paid to the Company on Company Request, or (if then held by the Company) shall be
discharged from such trust; and the Holder of such Security or the relevant coupon shall thereafter, as an unsecured general creditor, look only to the Company for payment thereof, and all liability of the Trustee or such Paying Agent with respect
to such trust money, and all liability of the Company as trustee thereof, shall thereupon cease; provided, however, that the Trustee or such Paying Agent, before being required to make any such repayment, may at the expense of the Company cause to
be published once, in an Authorized Newspaper in each of the City of Montreal and the City of Toronto, notice that such money remains unclaimed and that, after a date specified therein, which shall not be less than 30 days from the date of such
publication, any unclaimed balance of such money then remaining will be repaid to the Company. 
  

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 Section 1004. Payment of Taxes and Other Claims. 
 The Company will pay or discharge or cause to be paid or discharged, before the same become delinquent, (1) all taxes, assessments and governmental
charges levied or imposed upon it or upon its income, profits or property, and (2) all lawful claims for labor, materials and supplies which, if unpaid, might by law become a lien upon its property; 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 proceedings. 
 Section 1005. Maintenance of Properties. 
 The Company will cause all its properties used or useful in the conduct of its business to be maintained and kept in good condition, repair and working order and supplied with all necessary equipment and will cause to be made all necessary
repairs, renewals, replacements, betterments and improvements thereof, all as in the judgment of the Company 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 from discontinuing the operation and maintenance of any of its properties if such discontinuance is, in the judgment of the Company, desirable in the conduct of its business
and not disadvantageous in any material respect to the Securityholders. 
  

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 Section 1006. Statement as to Compliance. 
 The Company will deliver to the Trustee, within 120 days after the end of each fiscal year, a written statement signed by the President or a
Vice-President and by the Treasurer, an Assistant-Treasurer, the Controller or an Assistant Controller of the Company, stating, as to each signer thereof, that 
 (1) a review of the activities of the Company during such fiscal year and of its performance under this Indenture has been made under his
supervision and 
 (2) to the best of his knowledge, based on such review, the Company has fulfilled all its obligations under
this Indenture throughout such fiscal year, or, if there has been a default in the fulfillment of any such obligation, specifying each such default known to him and the nature and status thereof. 
 Section 1007. Corporate Existence. 
 Subject to Article Seven, the Company will do or cause to be done all things necessary to preserve and keep in full force and effect its corporate existence, rights (charter and statutory) and franchises; provided, however, that the Company
shall not be required to preserve any right or franchise if the Board of Directors shall determine that the preservation thereof is no longer desirable in the conduct of the business of the Company and that the loss thereof is not disadvantageous in
any material respect to the Securityholders. 
  

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 Section 1008—Negative Pledge. 
 The Company will not, and will not permit any Restricted Subsidiary to, create after the date of this Indenture any Mortgage upon any Principal Property
of the Company or of any Restricted Subsidiary or upon any shares of capital stock or Debt of any Restricted Subsidiary, whether owned at the date of this Indenture or hereafter acquired by the Company or by any Restricted Subsidiary, to secure any
Debt, without making effective provision concurrently with the creation of any such Mortgage whereby the Securities (together with, if the Company shall so determine, any other Debt of the Company ranking equally with or in priority to the
Securities and then existing or thereafter created) shall be secured by a Mortgage equally and ratably with such Debt, so long as such Debt shall be so secured; provided, however, that the foregoing restrictions shall not be applicable to

  

	 	(i)	Mortgages in favor of the Company or any Wholly-Owned Restricted Subsidiary; 

  

	 	(ii)	 any Mortgage to secure a Purchase Money Obligation provided that (A) in the case of any construction or improvement of property, the Mortgage shall not apply
to any property owned by the Company or any Restricted Subsidiary at the time of the commencement of such construction or improvement, other than any real or immoveable property which is substantially unimproved for the purposes of the Company or
any Restricted Subsidiary and on which the property so constructed or the improvement is located, and other than any machinery or equipment installed at any time so as to constitute immoveable property or a fixture on the real property on which the
property so 

  

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constructed, or the improvement, is located and (B) in the case of any acquisition of property, the Mortgage shall not apply to any property owned by
the Company or any Restricted Subsidiary immediately prior to the consummation of the acquisition; 

  

	 	(iii)	Mortgages securing obligations issued by Canada or any province or territory thereof, a State or the District of Columbia or any territory or possession of the United States of
America, or any political subdivision, agency or authority of any of the foregoing, to finance the acquisition, construction or improvement of property subject to such Mortgages, including without limitation Mortgages incurred in connection with
pollution control, industrial revenue or similar financings; 

  

	 	(iv)	any Mortgage required to be given or granted by any Restricted Subsidiary pursuant to the terms of any trust deed or similar document entered into by such Restricted Subsidiary
prior to the date it became a Restricted Subsidiary; 

  

	 	(v)	Mortgages under the Debenture Trust Deed; 

  

	 	(vi)	any extension, renewal or replacement (or successive extensions, renewals or replacements) of any Mortgage referred to in clauses (i) to (v) inclusive above provided,
however, that the principal amount of Debt secured thereby shall not exceed the principal amount of Debt so secured at the time of such extension, renewal or replacement; and 

  

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	 	(vii)	a Mortgage not excepted by clauses (i) through (vi) above, provided that after giving effect thereto Exempted Debt does not exceed 10% of the Consolidated Net Tangible
Assets of the Company and its Restricted Subsidiaries. 

 Section 1009—Sale and Leaseback Transactions. 

(a) The Company will not, and will not permit any Restricted Subsidiary to, enter into any arrangement with any Person (other than the Company or a
Restricted Subsidiary) providing for the leasing by the Company or any Restricted Subsidiary of any Principal Property, whether owned at the date of this Indenture or hereafter acquired (except for leases for a term of not more than three years),
which property has been or is to be sold or transferred by the Company or such Restricted Subsidiary to such Person (other than the Company or a Restricted Subsidiary) with the intention of taking back a lease of such property (herein referred to as
a “Sale and Leaseback Transaction”) unless the net proceeds of the sale or transfer of the property to be leased are at least equal to the fair value (as determined by the Board of Directors) of such property and unless: 
  

	 	(i)	the Company or such Restricted Subsidiary would, at the time of entering into such arrangement, be entitled, without equally and ratably securing the Securities, to create a
Mortgage on such property to secure a Debt in an amount at least equal to the Attributable Obligation in respect of such Sale and Leaseback Transaction pursuant to the provisions of Section 1008, or 

  

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	 	(ii)	the Company or such Restricted Subsidiary shall apply an amount equal to the net proceeds of such sale or transfer within 100 days after receipt thereof to (x) the retirement
(other than any mandatory retirement or by way of payment at maturity) of Senior Funded Debt of the Company or any Funded Debt of any Restricted Subsidiary or (y) the purchase of property, facilities or equipment (other than the property,
facilities or equipment involved in such sale) forming part of or constituting Principal Property having a value at least equal to the net proceeds of such sale. 

 (b) Notwithstanding the provisions of paragraph (a) of this Section 1009, the Company or any Restricted Subsidiary may enter into Sale and
Leaseback Transactions in addition to those permitted by paragraph (a) of this Section 1009, and without any obligation to retire any Securities or other Funded Debt or to acquire property, facilities or equipment, provided that at the
time of entering into such Sale and Leaseback Transactions and after giving effect thereto Exempted Debt does not exceed 10% of the Consolidated Net Tangible Assets of the Company and its Restricted Subsidiaries. 
 Section 1010—Limitation on Additional Debentures. 
 (a) The Company will not after the date hereof issue any debentures under the Debenture Trust Deed except debentures which may be issued, as provided in the Debenture Trust Deed, in respect of debentures which have
been surrendered for transfer, exchange or substitution or which may be issued in replacement of debentures mutilated, destroyed, lost or stolen. 
  

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 (b) Nothing in this Indenture shall in any way affect or be deemed to affect the liens created or to be
created by or pursuant to the Debenture Trust Deed on any property, rights or assets heretofore or hereafter acquired by the Company, nor prevent the Company from taking any action reasonably deemed necessary by it in order to comply with the
requirements of the Debenture Trust Deed. 
 (c) The Company will not amend the Debenture Trust Deed or any of the debentures issued
thereunder to increase the types of property subject to the Mortgage created pursuant thereto (without equally and ratably securing the Securities) or otherwise amend the Debenture Trust Deed in a manner materially adverse to the interests of the
Securityholders. 
 Section 1011—Limitation on Funded Debt. 
 The Company will not and will not permit any Restricted Subsidiary to incur or otherwise become liable for any Funded Debt unless, after giving effect
thereto, the Consolidated Net Tangible Assets of the Company and its Restricted Subsidiaries shall be at least equal to 200% of the principal amount of the Consolidated Funded Debt of the Company and its Restricted Subsidiaries. 
 The above provisions of this Section 1011 shall not prevent 
 (a) the Company or any Restricted Subsidiary from becoming liable for any Funded Debt for the purpose of extending, renewing or refunding, in whole or in part, any Funded Debt of the Company or 

  

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any Restricted Subsidiary then outstanding, so long as the aggregate principal amount of the outstanding Consolidated Funded Debt of the Company and its
Restricted Subsidiaries is not thereby increased; 
 (b) the Company from becoming liable for any Funded Debt to a Wholly-Owned Restricted
Subsidiary; 
 (c) any Restricted Subsidiary from becoming liable for any Funded Debt to the Company or to a Wholly-Owned Restricted
Subsidiary; 
 (d) the assumption by the Company or any Restricted Subsidiary of any Funded Debt of a corporation at the time such
corporation becomes a Restricted Subsidiary or at the time such corporation is merged into (by transfer of assets or otherwise), or amalgamated with, the Company or such Restricted Subsidiary; and 
 (e) the issue or assumption by the Company or any Restricted Subsidiary of Purchase Money Obligations. 
 Section 1012—Limitation on Funded Debt of Restricted Subsidiaries. 
 The Company will not permit any Restricted Subsidiary to incur or otherwise become liable for any Funded Debt, provided that this provision shall not
prevent 
 (a) a Restricted Subsidiary from becoming liable for any Funded Debt referred to in paragraphs (c), (d) or (e) of
Section 1011; 
 (b) a Restricted Subsidiary from becoming liable for any Funded Debt for the purpose of 

  

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extending, renewing or refunding, in whole or in part, any Funded Debt of such Restricted Subsidiary then outstanding, so long as the aggregate principal
amount of the outstanding Consolidated Funded Debt of the Company and its Restricted Subsidiaries is not thereby increased; 
 (c) any
Restricted Subsidiary from becoming liable for any Funded Debt in respect of or in connection with obligations issued by Canada or any province or territory thereof, a State or the District of Columbia or any territory or possession of the United
States, or any political subdivision, agency or authority of any of the foregoing, to finance the acquisition, construction or improvement of property (including without limitation Funded Debt in respect of or in connection with pollution control,
industrial revenue or similar financings), provided that, after giving effect to such Funded Debt, the provisions of the first paragraph of Section 1011 are met; 
 (d) any Restricted Subsidiary from becoming liable for any Funded Debt if, after giving effect thereto, (i) the aggregate principal amount of all outstanding Funded Debt as described in this paragraph
(d) does not exceed 10% of the Consolidated Net Tangible Assets of the Company and its Restricted Subsidiaries and (ii) the provisions of the first paragraph of Section 1011 are met. 
 (e) any Restricted Subsidiary from becoming liable for any Funded Debt elected to be incurred as Exempted Debt if, after giving effect thereto,
(i) Exempted Debt does not exceed 10% of the Consolidated Net Tangible Assets of the Company and its Restricted Subsidiaries and (ii) the provisions of the first paragraph of Section 1011 are met. 
  

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 Section 1013—Restrictions on Dividends and Acquisition of Shares. 
 The Company will not declare or pay any dividends (other than stock dividends) on any shares of its capital stock or purchase, redeem, reduce or otherwise
pay off any shares of its capital stock, unless, after giving effect to such action, the sum of (a) the aggregate amounts declared and/or paid as dividends (other than stock dividends) on any shares of its capital stock subsequent to
December 31, 1985 and (b) the aggregate amounts distributed and/or paid on the purchase, redemption, reduction or other payment off of any shares of its capital stock subsequent to December 31, 1985 will not be in excess of an amount
equal to the sum of the Consolidated Net Income (whether positive or negative) of the Company and its Subsidiaries earned subsequent to December 31, 1985, plus the aggregate amounts received by the Company subsequent to December 31, 1985
as the net proceeds of sales of shares of its capital stock plus $100,000,000; provided, however, that this covenant shall not prevent the Company from paying dividends on or satisfying mandatory retirement provisions in respect of any of the
preferred shares of its capital stock heretofore or hereafter issued. 
 Section 1014—Limitation on Sale of Funded Debt of
Restricted Subsidiaries. 
 The Company will not, nor will it permit any Restricted Subsidiary to, sell or otherwise dispose of (other than to
the Company or a Restricted Subsidiary) any Funded Debt of a Restricted Subsidiary which is owned by the Company or by such Restricted Subsidiary until such time as the Restricted Subsidiary whose Funded Debt is so owned has ceased to be a
Subsidiary. 
  

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 Section 1015—Calculations. 
 For the purposes of the calculations required to be made under Sections 1008, 1009, 1011 and 1012: 
  

	 	(1)	 When determining any ratio between Consolidated Net Tangible Assets and the principal amount of Consolidated Funded Debt, such determination shall be made by the
Board of Directors (who may determine such Consolidated Net Tangible Assets to be not less than a stated amount without determining the exact amount thereof), on the basis of the most recent financial statements or financial data made available to
the Board of Directors, as at a date not more than 120 days prior to the date of the adoption of the resolution of the Board of Directors authorizing the issue of the Funded Debt in respect of which such ratio is being determined, and there shall be
taken into calculation all issues and retirements of Funded Debt (without duplication) and of shares of capital stock and the proceeds of such issues and the expenditures on such retirements made and received and to be made and received, as the case
may be, and such change in the value of Consolidated Net Tangible Assets as the Board of Directors shall deem material, subsequent to the date as of which such determination is being made up to and including the date of the first delivery of any of
the Funded Debt authorized by such resolution and including all the 

  

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other Funded Debt which have been authorized for issue by said resolution and the estimated net proceeds to be received on the issue of such other Funded
Debt; 

  

	 	(2)	when determining any ratio between Exempted Debt and Consolidated Net Tangible Assets, such determination (which may stipulate such Consolidated Net Tangible Assets to be not less
than a stated amount without stipulating the exact amount thereof) shall be made by a financial officer of the Company, on the basis of the most recent available financial statements or financial data, as at a date not more than one hundred and
twenty (120) days prior to the date on which the Exempted Debt in respect of which such ratio is being determined is to be incurred or, in the case of an Attributable Obligation, the date on which the Sale and Leaseback Transaction is to be
entered into, and there shall be taken into calculation all issues and retirements of Funded Debt and Exempted Debt (without duplication) and of shares of capital stock and the proceeds of such issues and the expenditures on such retirements made
and received, as the case may be, and such change in the value of Consolidated Net Tangible Assets as shall be deemed material, subsequent to the date as of which such determination is being made up to and including the first date on which any of
the Exempted Debt in respect of which such determination is being made is to be incurred or entered into and including all the other Exempted Debt which have been concurrently authorized for issue and the estimated net proceeds to be received on the
issue of such other Exempted Debt; 

  

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	 	(3)	there shall be excluded from such calculations all Exempted Debt and Funded Debt of the Company payable to a Restricted Subsidiary or of any Restricted Subsidiary payable to the
Company or to any other Restricted Subsidiary; and 

  

	 	(4)	all such calculations and determinations shall be made in accordance with generally accepted accounting principles. 

 Section 1016. Purchase Fund. 
 In each
calendar quarter commencing with the quarter beginning on October 1, 1987, [*] to purchase in the open market in Canada, at such time or times as the Company in its discretion shall determine, [*] thereof plus accrued and unpaid interest costs
of purchase, [*] principal amount of the Securities which Securities (together with all unmatured coupons, if any, appertaining thereto) so purchased shall be promptly surrendered by the Company to the Trustee for cancellation. 
 If in any such calendar quarter [*] be unable, [*], to purchase as aforesaid, the maximum principal amount of Securities which it is obliged by
this Section 1016 to endeavour to purchase during such quarter, then the Company shall not be in default hereunder, but in each such 

  

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case the maximum principal amount of the Securities which it shall be obliged to make all reasonable efforts to purchase as aforesaid during the next
succeeding calendar quarters shall be increased by that amount which is equal to the difference between the maximum principal amount of Securities which the Company was obliged to endeavour to purchase during such first mentioned quarter and the
principal amount of Securities actually purchased during such first mentioned quarter in discharge of that obligation. 
 Provided that:

 (a) If during any calendar quarter the obligation of the Company to endeavour to purchase Securities under this Section 1016 is in
excess of $800,000 as aforesaid, then the principal amount of Securities purchased hereunder during such calendar quarter shall be deemed to be applied first in reduction of such excess, and if the principal amount so purchased is insufficient to
discharge fully the obligation with respect to the entire such excess, it shall be deemed to be applied to the discharge of the respective amounts thereof arising in respect of each of the preceding calendar quarters in the order of their respective
dates, beginning with the earliest such quarter; 
 (b) Where an obligation to endeavour to purchase Securities has been initially incurred
in respect of any calendar quarter and during the next seven succeeding calendar quarters has not been deemed to have been fully discharged by virtue of subsequent purchases of Securities determined as aforesaid, then the amount of the aggregate
obligation of the Company in respect of the eighth succeeding calendar quarter shall be deemed to have been reduced by an amount equal to the remaining undischarged amount of such first mentioned obligation; and 
  

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 (c) The company may, in the discharge of its obligation under this Section 1016 in respect of any
calendar quarter, surrender to the Trustee in respect of that quarter, Securities (together with all unmatured coupons, if any, appertaining thereto) which may have been redeemed or purchased by it during such quarter otherwise than pursuant to such
obligation, and upon any such surrender, the principal amount of the Securities which the Company is by this Section obliged to endeavour to purchase during such calendar quarter shall be deemed to have been reduced by an amount equal to the
aggregate principal amount of the Securities so surrendered. 
 Section 1017. Waiver of Certain Covenants. 
 The Company may omit in any particular instance to comply with any covenant or condition set forth in this Article Ten, if before or after the time for
such compliance the Securityholders shall, by a Majority Securityholders’ Act, either waive such compliance in such instance or generally waive compliance with such covenant or condition, but no such waiver shall extend to or affect such
covenant or condition except to the extent so expressly waived, and, until such waiver shall become effective, the obligations of the Company and the duties of the Trustee in respect of any such covenant or condition shall remain in full force and
effect. 
 ARTICLE ELEVEN 
 Redemption and Purchase of Securities 
  

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 Section 1101. Right of Redemption. 
 The Securities will be redeemable, at the Company’s option, in whole at any time or in part from time to time, on not more than 60 and not less than
30 days prior notice at the higher of the Canada Yield Price (as defined below) and 100% of the principal amount thereof, together in each case with accrued and unpaid interest to the date fixed for redemption. 
 “Canada Yield Price” shall mean, in effect, a price equal to the price of the Securities calculated to provide a yield to maturity equal to the
Government of Canada Yield plus 0.50% on the business day preceding the date of the resolution authorizing the redemption or if such price is being calculated for the purpose of Section 1109, on the business day preceding the date of purchase.
“Government of Canada Yield” on any date shall mean, in effect, the yield to maturity on such date compounded semi-annually which a non-callable Government of Canada Bond would carry if issued, in Canadian dollars in Canada, at 100% of its
principal amount on such date with a term to maturity equal to the remaining term to maturity of the Securities. The Government of Canada Yield will be provided by two Canadian investment dealers, Wood Gundy Inc. and Lévesque, Beaubien Inc.,
or such other Canadian investment dealer or dealers as the Company may determine from time to time and as may be acceptable to the Trustee. 
 Section 1102. Applicability of Article. 
 Redemption of Securities by the Company shall be made in accordance with this
Article. 
  

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 Section 1103. Election to Redeem; Notice to Trustee. 
 The election of the Company to redeem any Securities shall be evidenced by a Board Resolution. In case of any redemption at the election of the Company of
less than all of the Securities, the Company shall, at least 45 days prior to the Redemption Date fixed by the Company (unless a shorter notice shall be satisfactory to the Trustee) notify the Trustee of such Redemption Date and of the principal
amount of Securities to be redeemed. 
 Section 1104. Selection by Trustee of Securities to be Redeemed. 
 If less than all the Securities are to be redeemed, the particular Securities to be redeemed shall be selected not more than 60 days prior to the
Redemption Date by the Trustee from the Outstanding Securities not previously called for redemption by such method as it shall deem equitable and which may provide for the selection for redemption of portions (equal to $1,000 or a multiple thereof)
of the principal of Securities of a denomination larger than $1,000. 
 The Trustee shall promptly notify the Company in writing of the
Securities selected for redemption and, in the case of any Security selected for partial redemption, the principal amount thereof to be redeemed. 
 For all purposes of this Indenture, unless the context otherwise requires, all provisions relating to the redemption of Securities shall relate, in the case of any Security which has been or is to be redeemed only in part, to the portion of
the principal of such Security which has been or is to be redeemed. 
  

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 Section 1105. Notice of Redemption. 
 Notice of the proposed redemption shall be given in the manner provided in this Indenture to each Holder of Securities to be redeemed not less than 30 nor
more than 60 days prior to the Redemption Date; provided that where any such notice is being given to the Holders of Unregistered Securities, the same shall be published in an Authorized Newspaper in each of the Cities of Montreal and Toronto once
in each of 4 successive calendar weeks, the first publication to be not less than 30 nor more than 60 days prior to the Redemption Date. 
 If notice is published as aforesaid, neither failure to give notice by mail, nor defect in any notice so mailed, shall affect the validity of the proceedings for such redemption. 
 All notices of redemption shall state: 
 (1) the Redemption Date, 
 (2) the Redemption Price, 
 (3) if less than all Outstanding Securities are to be redeemed, the identification (and, in the case of partial redemption, the respective
principal amounts) of the Securities to be redeemed, 
 (4) that on the Redemption Date the Redemption Price will become due
and payable upon each such Security, and that interest thereon shall cease to accrue on and after said date, and 
  

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 (5) the place where such Securities are to be surrendered for payment of the Redemption
Price. 
 Notice of redemption of Securities to be redeemed at the election of the Company shall be given by the Company or, at the
Company’s request, by the Trustee in the name of and at the expense of the Company. 
 Section 1106. Deposit of Redemption Price.

 At least one business day prior to any Redemption Date, the Company shall deposit with the Trustee or with a Paying Agent (or, if the
Company is acting as its own Paying Agent, segregate and hold in trust as provided in Section 1003) an amount of money sufficient to pay the Redemption Price of all the Securities which are to be redeemed on such Redemption Date. 
 Section 1107. Securities Payable on Redemption Date. 
 Notice of redemption having been given as aforesaid, the Securities so to be redeemed shall, on the Redemption Date, become due and payable at the Redemption Price therein specified and on and after such date (unless
the Company shall default in the payment of the Redemption Price) such Securities shall cease to bear interest and all coupons appertaining to such Securities which represent instalments of interest to become due after the Redemption Date shall be
void. Upon surrender of any such Security for redemption in accordance with said notice, together with all coupons, if any, appertaining thereto maturing after the Redemption Date, such Security shall be paid by the Company at the Redemption Price
together 

  

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with accrued interest to the Redemption Date, provided, however, that instalments of interest on Coupon Securities whose Stated Maturity is on or prior to
the Redemption Date shall be payable only upon presentation and surrender of coupons for such interest and provided, further, that instalments of interest on Registered Securities whose Stated Maturity is on or prior to the Redemption Date shall be
payable to the Holders of such Securities, or one or more Predecessor Securities, registered as such on the relevant Record Date according to their terms and the provisions of Section 307. Interest maturing on or prior to the Redemption Date
shall continue to be payable (but without interest thereon, unless the Company shall default in the due payment or provision for payment thereof) in the case of Coupon Securities to the bearers of the coupons for such interest upon surrender
thereof, and in the case of Fully Registered Securities to the Registered Holders thereof according to their terms in the customary manner. 
 If any Security called for redemption shall not be so paid upon surrender thereof for redemption, the principal shall, until paid, bear interest from the Redemption Date at the rate borne by such Security. 
 If any Coupon Security surrendered for redemption shall not be accompanied by. all appurtenant coupons maturing after the Redemption Date, such Security
may be paid after deducting from the Redemption Price an amount equal to the face amount of all such missing coupons or the surrender of such missing coupon or coupons may be waived by the Company and the Trustee, if there be furnished to them such
security or indemnity as they may require to save each of them and any Paying Agent harmless. If thereafter the Holder of such Security shall surrender to any Paying Agent any such missing coupon in respect of which a deduction shall have 

  

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been made from the Redemption Price, such Holder shall be entitled to receive the amount so deducted. 
 Section 1108. Securities Redeemed in Part. 
 Any Security which is to be redeemed only in part may, at the option of the Holder, 
 (1) be presented to the
Trustee or Paying Agent for notation thereon of the payment as of the Redemption Date of the redeemed portion of the principal thereof, or 
 (2) be surrendered (with, if the Company or the Trustee so requires, due endorsement by, or a written instrument of transfer in form satisfactory to the Company and the Trustee duly executed by, the Holder thereof or
his attorney duly authorized in writing) and the Company shall execute and the Trustee shall authenticate and deliver to the Holder of such Security without service charge, a new Security or Securities, of any authorized denomination or
denominations as requested by such Holder in aggregate principal amount equal to the unredeemed portion of the principal of the Security so surrendered. 
 Section 1109. Purchase of Securities 
 At any time when the Company is not in default hereunder it may
purchase for cancellation all or any Securities in the market or by tender or by private contract, provided that the prices at which such Securities may be purchased shall not exceed the Redemption Price (including accrued interest) at which such
Securities could, at the time of purchase, be redeemed by the Company at its option, plus costs of purchase. All Securities so 

  

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purchased shall be delivered to the Trustee and shall be cancelled by it and no Securities shall be issued in substitution therefor. 
 ARTICLE TWELVE 
 Counterparts and Language

 Section 1201. Counterparts 
 This instrument may be executed in any number of counterparts, each of which so executed shall be deemed to be an original, but all such counterparts shall together constitute but one and the same instrument. 
 Section 1202. Language 
 The parties
hereto have expressly requested and agreed that this Trust Indenture be in the English language. Les parties aux présentes ont 

  

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expressément requis et convenu que la présente convention de fiducie soit rédigée en anglais. 
 IN WITNESS WHEREOF, the parties hereto have caused this Indenture to be duly executed, and their respective corporate seals to be hereunto affixed, all
as of the day and year first above written. 
  

			
		 	DOMTAR INC.
		
	(signed)	 	Derek J. Speirs
		
	(signed)	 	A. Gascon

  

			
		 	COMPAGNIE MONTREAL TRUST -
		 	MONTREAL TRUST COMPANY
		
	(signed)	 	Dominique Carriére
		
	(signed)	 	J.-Claude Lebel

  

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