Document:

exv4w2

 

Exhibit 4.2

OFFICER’S CERTIFICATE

     The undersigned, McKesson Corporation, a Delaware corporation (the “Company”), hereby
certifies through Nicholas A. Loiacono, its Vice President and Treasurer, pursuant to Sections 2.1,
2.3 and 11.5 of the Indenture, dated as of March 5, 2007 (the “Indenture”), by and between the
Company, as Issuer, and The Bank of New York Trust Company, N.A., a national banking association,
as Trustee, as follows:

     1. The form and terms of the 5.25% Notes due 2013 (the “2013 Notes”), as set forth on
Annex A attached hereto, and the form and terms of the 5.70% Notes due 2017 (the “2017
Notes”), as set forth on Annex B attached hereto, have been established pursuant to
Sections 2.1 and 2.3 of the Indenture and comply with the Indenture.

     2. The undersigned has read the Indenture.

     3. The statements made in this certificate are based upon an examination of the 2013 Notes and
the 2017 Notes under the Indenture, upon an examination of and familiarity with the Indenture, upon
my general knowledge of and familiarity with the operations of the Company and upon the performance
of my duties as an officer of the Company.

     4. In the opinion of the undersigned, he has made such examination or investigation as is
necessary to enable him to express an informed opinion as to whether or not the covenants and
conditions provided for in the Indenture have been complied with.

     5. In the opinion of the undersigned, with respect to the foregoing, the covenants and
conditions provided for in the Indenture have been complied with.

     Capitalized terms used herein without definition have the meanings assigned to them in the
Indenture.

 

 

     IN WITNESS WHEREOF, the undersigned has caused this certificate to be executed by its duly
authorized officer as of this 5th day of March, 2007.

	 	 	 	 	 
	 	McKESSON CORPORATION

 	 
	 	By:  	/s/ Nicholas A. Loiacono
 	 
	 	 	Nicholas A. Loiacono 	 
	 	 	Vice President and Treasurer 	 

 

 

	 	 	 	 	 

ANNEX A

     Pursuant to Section 2.3 of the Indenture, dated as of March 5, 2007 (the “Indenture”), between
McKesson Corporation (the “Issuer”) and The Bank of New York Trust Company, N.A., a national
banking association, as trustee (the “Trustee”), the terms of a series of securities to be issued
pursuant to the Indenture are as follows:

	 	1.	 	Designation. The designation of the securities is
“5.25% Notes due March 1, 2013” (the “2013 Notes”).
	 
	 	2.	 	Initial Aggregate Principal Amount. The 2013 Notes
shall be limited in initial aggregate principal amount to $500,000,000 (except
for 2013 Notes authenticated and delivered upon registration of transfer of, or
in exchange for, or in lieu of, other 2013 Notes pursuant to Section 2.8, 2.9,
2.11, 8.5 or 12.3 of the Indenture).
	 
	 	3.	 	Currency Denomination. The 2013 Notes shall be
denominated in Dollars.
	 
	 	4.	 	Maturity. The date on which the principal of the 2013
Notes is payable is March 1, 2013.
	 
	 	5.	 	Rate of Interest; Interest Payment Date; Regular Record
Dates. Each 2013 Note shall bear interest from March 5, 2007 at 5.25% per
annum until the principal thereof is paid. Such interest shall be payable
semi-annually in arrears on March 1 and September 1 of each year, commencing on
September 1, 2007, to the persons in whose names the 2013 Notes are registered
at the close of business on the immediately preceding February 15 and August
15, respectively. Interest on the 2013 Notes shall accrue from the most recent
date to which interest has been paid or, if no interest has been paid, from
March 5, 2007. Interest on the 2013 Notes shall be computed on the basis of a
360-day year comprised of twelve 30-day months. In the event that any date on
which principal, premium, if any, or interest is payable on the 2013 Notes is
not a Business Day, then payment of the principal, premium, if any, or interest
payable on such date will be made on the next succeeding day that is a Business
Day (and without any interest or other payment in respect of any such delay).
	 
	 	6.	 	Place of Payment. Principal of, premium, if any, and
interest on the 2013 Notes shall be payable, and the transfer of the 2013 Notes
shall be registrable, at the office or agency of the Issuer to be maintained
for such purpose in the Borough of Manhattan, The City of New York, except
that, at the option of the Issuer, interest may be paid by mailing a check to
the address of the person entitled thereto as it appears on the 2013 Notes
register; provided, however, that while any 2013 Notes are represented by a
Registered Global Security, payment of principal of, premium, if any, or

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	 	 	 	interest on the 2013 Notes may be made by wire transfer to the account of
the Depositary or its nominee.
	 
	 	7.	 	Optional Redemption. The 2013 Notes may be redeemed,
in whole at any time or in part from time to time, at the option of the Issuer
at a redemption price equal to the greater of (i) 100% of their principal
amount and (ii) an amount, as determined by the Quotation Agent, equal to the
sum of the present values of the remaining scheduled payments of principal and
interest thereon (not including any portion of such payments of interest
accrued as of the date of redemption), discounted to the date of redemption on
a semi-annual basis (assuming a 360-day year consisting of twelve 30-day
months) at the Treasury Rate plus 15 basis points, plus, in each case, accrued
interest thereon to the date of redemption. Notwithstanding the foregoing,
installments of interest on 2013 Notes that are due and payable on interest
payment dates falling on or prior to a redemption date will be payable on the
interest payment date to the registered holders as of the close of business on
the relevant record date. Holders of the 2013 Notes to be redeemed will
receive notice thereof at least 30 and not more than 60 days prior to the date
fixed for redemption. Unless the Issuer defaults in payment of the redemption
price, on and after the redemption date, interest will cease to accrue on the
2013 Notes or portions thereof called for redemption. If less than all of the
2013 Notes are to be redeemed, the 2013 Notes to be redeemed will be selected
by the Trustee by a method the Trustee deems to be fair and appropriate.
	 
	 	 	 	“Comparable Treasury Issue” means the United States Treasury security
selected by the Quotation Agent as having a maturity comparable to the
remaining term of the 2013 Notes that would be utilized, at 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 the 2013 Notes.
	 
	 	 	 	“Comparable Treasury Price” means, with respect to any redemption date, (i)
the average of four Reference Treasury Dealer Quotations for such redemption
date, after excluding the highest and lowest such Reference Treasury Dealer
Quotations, or (ii) if the Trustee obtains fewer than four such Reference
Treasury Dealer Quotations, the average of all such quotations.
	 
	 	 	 	“Quotation Agent” means the Reference Treasury Dealer appointed by the
Issuer.
	 
	 	 	 	“Reference Treasury Dealer” means (i) Banc of America Securities LLC (or its
affiliates that are Primary Treasury Dealers) and its 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

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	 	 	 	Dealer”), the Issuer shall substitute therefor another Primary Treasury
Dealer; and (ii) any other Primary Treasury Dealer selected by the Issuer.
	 
	 	 	 	“Reference Treasury Dealer Quotations” means, with respect to each Reference
Treasury Dealer and any redemption date, the average, as determined by the
Trustee, of the bid and asked prices for the Comparable Treasury Issue
(expressed in each case as a percentage of its principal amount) quoted in
writing to the Trustee by that Reference Treasury Dealer at 5:00 p.m., New
York City time, on the third business day preceding that redemption date.
	 
	 	 	 	“Treasury Rate” means, with respect to any redemption date, the rate per
annum equal to the semi-annual equivalent yield to maturity of the
Comparable Treasury Issue, assuming a price for the Comparable Treasury
Issue (expressed as a percentage of its principal amount) equal to the
Comparable Treasury Price for such redemption date.
	 
	 	8.	 	Change of Control. If a Change of Control Triggering
Event occurs, unless the Issuer has exercised its right to redeem the 2013
Notes as described above, holders of the 2013 Notes will have the right to
require the Issuer to repurchase all or any part (equal to $1,000 or an
integral multiple of $1,000 in excess thereof) of their 2013 Notes pursuant to
the offer described below (the “Change of Control Offer”). In the Change of
Control Offer, the Issuer will be required to offer payment in cash equal to
101% of the aggregate principal amount of 2013 Notes repurchased plus accrued
and unpaid interest, if any, on the 2013 Notes repurchased, to the date of
purchase (the “Change of Control Payment”). Within 30 days following any
Change of Control Triggering Event, the Issuer will be required to mail a
notice to holders of the 2013 Notes describing the transaction or transactions
that constitute the Change of Control Triggering Event and offering to
repurchase the 2013 Notes on the date specified in the notice, which date will
be no earlier than 30 days and no later than 60 days from the date such notice
is mailed (the “Change of Control Payment Date”), pursuant to the procedures
described herein and in such notice. The Issuer must comply with the
requirements of Rule 14e-1 under the Exchange Act and any other securities laws
and regulations thereunder to the extent those laws and regulations are
applicable in connection with the repurchase of the 2013 Notes as a result of a
Change of Control Triggering Event. To the extent that the provisions of any
securities laws or regulations conflict with the Change of Control provisions
herein, the Issuer will be required to comply with the applicable securities
laws and regulations and will not be deemed to have breached its obligations
under the Change of Control provisions herein by virtue of such conflicts.

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	 	 	 	On the Change of Control Payment Date, the Issuer will be required, to the
extent lawful, to (i) accept for payment all 2013 Notes or portions of 2013
Notes properly tendered pursuant to the Change of Control Offer; (ii)
deposit with the paying agent an amount equal to the Change of Control
Payment in respect of all 2013 Notes or portions of 2013 Notes properly
tendered; and (iii) deliver or cause to be delivered to the Trustee the 2013
Notes properly accepted together with an Officer’s Certificate stating the
aggregate principal amount of 2013 Notes or portions of 2013 Notes being
purchased.
	 
	 	 	 	“Below Investment Grade Rating Event” means the 2013 Notes are rated below
an Investment Grade Rating by each of the Rating Agencies (as defined below)
on any date from the date of the public notice of an arrangement that could
result in a Change of Control until the end of the 60-day period following
public notice of the occurrence of the Change of Control (which 60-day
period shall be extended so long as the rating of the 2013 Notes is under
publicly announced consideration for possible downgrade by any of the Rating
Agencies).
	 
	 	 	 	“Change of Control” means the occurrence of any of the following: (1) the
direct or indirect sale, transfer, conveyance or other disposition (other
than by way of merger or consolidation), in one or a series of related
transactions, of all or substantially all of the properties or assets of the
Issuer and its Subsidiaries taken as a whole to any Person other than the
Issuer or one of its Subsidiaries; (2) the consummation of any transaction
(including, without limitation, any merger or consolidation) the result of
which is that any Person becomes the beneficial owner, directly or
indirectly, of more than 50% of the then outstanding number of shares of the
Issuer’s voting stock; or (3) the first day on which a majority of the
members of the Issuer’s Board of Directors are not Continuing Directors.
Notwithstanding the foregoing, a transaction will not be deemed to be
involve a Change of Control if (i) the Issuer becomes a wholly owned
subsidiary of a holding company and (ii) the holders of the voting stock of
such holding company immediately following that transaction are
substantially the same as the holders of our voting stock immediately prior
to that transaction.
	 
	 	 	 	“Change of Control Triggering Event” means the occurrence of both a Change
of Control and a Below Investment Grade Rating Event.
	 
	 	 	 	“Continuing Directors” means, as of any date of determination, any member of
the Board of Directors of the Issuer who (1) was a member of such Board of
Directors on the date of original issue of this Security; or (2) was
nominated for election or elected to such Board of Directors with the
approval of a majority of the Continuing Directors who were members of such
Board of Directors at the time of such nomination or election (either

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	 	 	 	by a specific vote or by approval of the Issuer’s proxy statement in which
such member was named as a nominee for election as a director, without
objection to such nomination).
	 
	 	 	 	“Fitch” means Fitch Ratings.
	 
	 	 	 	“Investment Grade Rating” means a rating equal to or higher than BBB- (or
the equivalent) by Fitch, Baa3 (or the equivalent) by Moody’s and BBB- (or
the equivalent) by S&P.
	 
	 	 	 	“Moody’s” means Moody’s Investors Service, Inc.
	 
	 	 	 	“Person” has the meaning set forth in the Indenture and includes a “person”
as used in Section 13(d)(3) of the Exchange Act.
	 
	 	 	 	“Rating Agencies” means (1) each of Fitch, Moody’s and S&P; and (2) if any
of Fitch, Moody’s or S&P ceases to rate the notes or fails to make a rating
of the notes publicly available for reasons outside of our control, a
“nationally recognized statistical rating organization” within the meaning
of Rule 15c3-1(c)(2)(vi)(F) under the Exchange Act, selected by the Issuer
(as certified by a Board Resolution) as a replacement agency for Fitch,
Moody’s or S&P, or all of them, as the case may be.
	 
	 	 	 	“S&P” means Standard & Poor’s Ratings Services, a division of The
McGraw-Hill Companies, Inc.
	 
	 	9.	 	Mandatory Redemption. The 2013 Notes are not
mandatorily redeemable and are not entitled to the benefit of a sinking fund or
any analogous provisions.
	 
	 	10.	 	Denominations. The 2013 Notes shall be issued
initially in minimum denominations of $1,000 and shall be issued in integral
multiples of $1,000 in excess thereof.
	 
	 	11.	 	Amount Payable Upon Acceleration. The principal of the
2013 Notes shall be payable upon declaration of acceleration pursuant to
Section 5.1 of the Indenture.
	 
	 	12.	 	Payment Currency. Principal and interest on the 2013
Notes shall be payable in Dollars.
	 
	 	13.	 	Payment Currency — Election. The principal of and
interest on the 2013 Notes shall not be payable in a currency other than
Dollars.

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	 	14.	 	Payment Currency — Index. The principal of and
interest on the 2013 Notes shall not be determined with reference to an index
based on a coin or currency.
	 
	 	15.	 	Registered Securities. The 2013 Notes shall be issued
only as Registered Securities. The 2013 Notes shall be issuable as Registered
Global Securities.
	 
	 	16.	 	Additional Amounts. The Issuer shall not pay
additional amounts on the 2013 Notes held by a Person that is not a U.S. Person
in respect of taxes or similar charges withheld or deducted.
	 
	 	17.	 	Definitive Certificates. Section 2.8 of the Indenture
will govern the transferability of the 2013 Notes in definitive form.
	 
	 	18.	 	Registrar; Paying Agent; Depositary. The Trustee shall
initially serve as the registrar and the paying agent for the 2013 Notes. The
Depository Trust Company shall initially serve as the Depositary for the
Registered Global Security representing the 2013 Notes.
	 
	 	19.	 	Events of Default; Covenants. There shall be no
deletions from or modifications or additions to the Events of Default set forth
in Section 5.1 of the Indenture with respect to the 2013 Notes. There shall be
the following additions to the covenants of the Issuer set forth in Article III
of the Indenture with respect to the 2013 Notes:
	 
	 	 	 	Limitation on Liens. The Issuer covenants that, so long as any of the 2013
Notes remain outstanding, it shall not, nor shall it permit any Consolidated
Subsidiary to, create or assume any Indebtedness for money borrowed which is
secured by a mortgage, pledge, security interest or lien (“liens”) of or
upon any assets, whether now owned or hereafter acquired, of the Issuer or
any such Consolidated Subsidiary without equally and ratably securing the
2013 Notes by a lien ranking ratably with and equal to (or at the option of
the Issuer, senior to) such secured Indebtedness, except that the foregoing
restriction shall not apply to (a) liens on any assets of any corporation
existing at the time such corporation becomes a Consolidated Subsidiary; (b)
liens on any assets existing at the time of acquisition of such assets by
the Issuer or a Consolidated Subsidiary, or liens to secure the payment of
all or any part of the purchase price of such assets upon the acquisition of
such assets by the Issuer or a Consolidated Subsidiary or to secure any
indebtedness incurred or guaranteed by the Issuer or a Consolidated
Subsidiary prior to, at the time of, or within 360 days after such
acquisition (or in the case of real property, the completion of construction
(including any improvements on an existing asset) or commencement of full
operation of such asset, whichever is later), which indebtedness is incurred
or guaranteed for the purpose of financing all or

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	 	 	 	any part of the purchase price thereof or, in the case of real property,
construction or improvements thereon; provided, however, that in the case of
any such acquisition, construction or improvement, the lien shall not apply
to any assets theretofore owned by the Issuer or a Consolidated Subsidiary,
other than, in the case of any such construction or improvement, any real
property on which the property so constructed, or the improvement, is
located, or to secure the payment of the purchase price of such assets, or
to secure indebtedness incurred or guaranteed by the Issuer or a
Consolidated Subsidiary for the purpose of financing the purchase price of
such assets or improvements or construction thereon, which indebtedness is
incurred or guaranteed prior to, at the time of or within 360 days after
such acquisition (or in the case of real property, completion of such
improvement or construction or commencement of full operation of such
property, whichever is later); (c) liens on any assets securing indebtedness
owed by any Consolidated Subsidiary to the Issuer or another wholly owned
Subsidiary; (d) liens on any assets of a corporation existing at the time
such corporation is merged into or consolidated with the Issuer or a
Subsidiary or at the time of a purchase, lease or other acquisition of the
assets of a corporation or firm as an entirety or substantially as an
entirety by the Issuer or a Subsidiary; (e) liens on any assets of the
Issuer or a Consolidated Subsidiary in favor of the United States of America
or any state thereof, or any department, agency or instrumentality or
political subdivision of the United States of America or any State thereof,
or in favor of any other country, or any political subdivision thereof, to
secure partial, progress, advance or other payments pursuant to any contract
or statute or to secure any indebtedness incurred or guaranteed for the
purpose of financing all or any part of the purchase price (or, in the case
of real property, the cost of construction) of the assets subject to such
liens (including, but not limited to, liens incurred in connection with
pollution control, industrial revenue or similar financing); (f) any
extension, renewal or replacement (or successive extensions, renewals or
replacements), in whole or in part, of any lien referred to in the foregoing
clauses (a) to (e), inclusive; provided, however, that the principal amount
of indebtedness secured thereby shall not exceed the principal amount of
indebtedness so secured at the time of such extension, renewal or
replacement, and that such extension, renewal or replacement shall be
limited to all or a part of the assets which secured the lien so extended,
renewed or replaced (plus improvements and construction on such real
property); (g) liens imposed by law, such as mechanics’, workmen’s,
repairmen’s, materialmen’s, carriers’, warehousemen’s, vendors’ or other
similar liens arising in the ordinary course of business, or governmental
(federal, state or municipal) liens arising out of contracts for the sale of
products or services by the Issuer or any Consolidated Subsidiary, or
deposits or pledges to obtain the release of any of the foregoing liens; (h)
pledges, liens or deposits under worker’s compensation laws or similar
legislation and liens or judgments

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	 	 	 	thereunder which are not currently dischargeable, or in connection with
bids, tenders, contracts (other than for the payment of money) or leases to
which the Issuer or any Consolidated Subsidiary is a party, or to secure
public or statutory obligations of the Issuer or any Consolidated
Subsidiary, or in connection with obtaining or maintaining self-insurance or
to obtain the benefits of any law, regulation or arrangement pertaining to
unemployment insurance, old age pensions, social security or similar
matters, or to secure surety, appeal or customs bonds to which the Issuer or
any Consolidated Subsidiary is a party, or in litigation or other
proceedings such as, but not limited to, interpleader proceedings, and other
similar pledges, liens or deposits made or incurred in the ordinary course
of business; (i) liens created by or resulting from any litigation or other
proceeding which is being contested in good faith by appropriate
proceedings, including liens arising out of judgements or awards against the
Issuer or any Consolidated Subsidiary with respect to which the Issuer or
such Consolidated Subsidiary is in good faith prosecuting an appeal or
proceedings for review or for which the time to make an appeal has not yet
expired; or final unappealable judgment liens which are satisfied within 15
days of the date of judgment; or liens incurred by the Issuer or any
Consolidated Subsidiary for the purpose of obtaining a stay or discharge in
the course of any litigation or other proceeding to which the Issuer or such
Consolidated Subsidiary is a party; (j) liens for taxes or assessments or
governmental charges or levies not yet due or delinquent, or which can
thereafter be paid without penalty, or which are being contested in good
faith by appropriate proceedings; landlord’s liens on property held under
lease; and any other liens or charges incidental to the conduct of the
business of the Issuer or any Consolidated Subsidiary or the ownership of
the assets of any of them which were not incurred in connection with the
borrowing of money or the obtaining of advances or credit and which do not,
in the opinion of the Issuer, materially impair the use of such assets in
the operation of the business of the Issuer or such Consolidated Subsidiary
or the value of such assets for the purposes thereof; or (k) liens relating
to accounts receivable of the Issuer or any of its Subsidiaries which have
been sold, assigned or otherwise transferred to another Person in a
transaction classified as a sale of accounts receivable in accordance with
generally accepted accounting principles (to the extent the sale by the
Issuer or the applicable Subsidiary is deemed to give rise to a lien in
favor of the purchaser thereof in such accounts receivable or the proceeds
thereof). Notwithstanding the above, the Issuer or any Consolidated
Subsidiary may, without securing the 2013 Notes, create or assume any
Indebtedness which is secured by a lien which would otherwise be subject to
the foregoing restrictions, provided that at the time of such creation or
assumption, after giving effect thereto, Exempted Debt does not exceed 10%
of the total assets of the Issuer and its Subsidiaries on a consolidated
basis, determined in accordance with generally accepted accounting
principles.

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	 	 	 	Limitation on Sale and Lease-Back Transactions. The Issuer covenants that,
so long as any of the 2013 Notes remain outstanding, the Issuer will not,
nor shall the Issuer permit any Consolidated Subsidiary to, enter into any
sale and lease-back transaction with respect to any assets, other than any
sale lease-back transaction (involving a lease for a term of not more than
three years), unless either (a) the Issuer or such Consolidated Subsidiary
would be entitled to incur Indebtedness secured by a lien on the assets to
be leased in an amount at least equal to the Attributable Debt in respect of
such transaction without equally and ratably securing the 2013 Notes
pursuant to clauses (a) through (j) inclusive of the covenant with respect
to “Limitation on Liens” above, or (b) the proceeds of the sale of the
assets to be leased are at least equal to their fair market value (as
determined by the Board of Directors of the Issuer) and the proceeds are
applied to the purchase or acquisition (or, in the case of real property,
the construction) of assets or to the retirement (other than at maturity or
pursuant to a mandatory sinking fund or mandatory redemption provision) of
indebtedness. The foregoing limitation shall not apply, if at the time the
Issuer or any Consolidated Subsidiary enters into such sale and lease-back
transaction, and after giving effect thereto, Exempted Debt does not exceed
10% of the total assets of the Issuer and its Subsidiaries on a consolidated
basis, determined in accordance with generally accepted accounting
principles.
	 
	 	 	 	The term “Attributable Debt” in connection with a sale and lease-back
transaction shall mean, as of the date of determination, the lesser of (a)
the fair value of the assets subject to such transaction, as determined by
McKesson’s Board of Directors, or (b) the present value (discounted at the
rate of interest set forth in or implicit in the terms of such lease or, if
it is not practicable to determine such rate, the weighted average interest
rate per annum borne by all series of Securities then Outstanding and
subject to the “Limitation on Sale and Lease-back Transactions” covenant
above compounded semi-annually, in either case as determined by the
principal accounting or financial officer of the Issuer) of the obligations
of the Issuer or any Consolidated Subsidiary for net rental payments during
the remaining term of all leases (including any period for which such lease
has been extended or may, at the option of the lessor, be extended).
	 
	 	 	 	The term “Consolidated Subsidiary” shall mean any Subsidiary substantially
all the property of which is located, and substantially all the operations
of which are conducted, in the United States of America whose financial
statements are consolidated with those of the Issuer in accordance with
generally accepted accounting principles.
	 
	 	 	 	The term “Exempted Debt” shall mean the sum of the following as of the date
of determination: (i) Indebtedness of the Issuer and its Consolidated

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	 	 	 	Subsidiaries incurred after the date of issuance of the Notes and secured by
liens not permitted to be created or assumed pursuant to the covenant with
respect to “Limitation on Liens” above, and (ii) Attributable Debt of the
Issuer and its Consolidated Subsidiaries in respect of every sale and
lease-back transaction entered into after the date of issuance of the Notes,
other than leases expressly permitted by the covenant with respect to
“Limitation on Sale and Lease-Back Transactions” above.
	 
	 	 	 	The term “Indebtedness” shall mean all items classified as indebtedness on
the most recently available consolidated balance sheet of the Issuer and its
Consolidated Subsidiaries, in accordance with generally accepted accounting
principles.
	 
	 	 	 	The term “net rental payments” under any lease of 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 maintenance and repairs, reconstruction, insurance,
taxes, assessments, water rates 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, maintenance and repairs,
reconstruction, insurance, taxes, assessments, water rates or similar
charges.
	 
	 	 	 	The term “Subsidiary” shall mean any corporation of which at least a
majority of the outstanding stock having voting power under ordinary
circumstances for the election of the board of directors of such corporation
shall at the time be owned by the Issuer or by the Issuer and one or more
Subsidiaries or by one or more Subsidiaries.
	 
	 	20.	 	Conversion and Exchange. The 2013 Notes shall not be
convertible into or exchangeable into any other security.
	 
	 	21.	 	Further Issues. The Issuer may, without notice to or
the consent of the holders of the 2013 Notes, create and issue further notes
ranking equally and ratably with the 2013 Notes in all respects, or in all
respects except for the payment of interest accruing prior to the issue date of
such further notes. Such further notes shall be consolidated and form a single
series with the 2013 Notes and shall have the same terms as to status,
redemption or otherwise as the 2013 Notes.
	 
	 	23.	 	Other Terms. The 2013 Notes shall have the other terms
and shall be substantially in the form set forth in the form of the 2013 Notes
attached hereto as Annex A-1. In case of any conflict between this Annex A and
the 2013 Notes, the form of the 2013 Notes shall control.

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     Capitalized terms used but not otherwise defined in this Annex A shall have the respective
meanings ascribed to such terms in the Indenture.

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ANNEX A-1

[FORM OF 2013 NOTE]

 

 

			
	REGISTERED
	 	REGISTERED

THIS NOTE IS A REGISTERED GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED
TO AND IS REGISTERED IN THE NAME OF A DEPOSITARY OR A NOMINEE OF A DEPOSITARY. UNLESS THIS NOTE IS
PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY (55 WATER STREET, NEW
YORK, NEW YORK) TO THE ISSUER OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND
ANY NOTE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER NAME AS REQUESTED BY AN
AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY AND ANY PAYMENT HEREON IS MADE TO CEDE &
CO., ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY A PERSON IS WRONGFUL SINCE
THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN. TRANSFERS OF THIS REGISTERED
GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS IN WHOLE, BUT NOT IN PART, TO NOMINEES OF THE
DEPOSITORY TRUST COMPANY OR TO A SUCCESSOR THEREOF OR SUCH SUCCESSOR’S NOMINEE.

			
	No. 1
	 	CUSIP NO. 581557 AU9          

McKESSON CORPORATION

5.25% NOTES DUE MARCH 1, 2013

     McKesson Corporation, a Delaware corporation (the “Issuer,” which term includes any successor
corporation under the Indenture hereinafter referred to), for value received, hereby promises to
pay to, Cede & Co., or registered assigns, the principal sum of Five Hundred Million Dollars
($500,000,000) on March 1, 2013 and to pay interest on said principal sum from March 5, 2007, or
from the most recent interest payment date to which interest has been paid or duly provided for,
semi-annually in arrears on March 1 and September 1 (each such date, an “Interest Payment Date”) of
each year commencing on September 1, 2007, at the rate of 5.25% per annum until the principal
hereof shall have become due and payable.

     The amount of interest payable on any Interest Payment Date shall be computed on the basis of
a 360-day year comprised of twelve 30-day months. In the event that any date on which the
principal or interest payable on this Note is not a Business Day, then payment of principal or
interest payable on such date will be made on the next succeeding day that is a Business Day (and
without any interest or other payment in respect of such delay). The interest installment so
payable, and punctually paid or duly provided for, on any Interest Payment Date will, as provided
in the Indenture (referred to on the reverse hereof) be paid to the person in whose name this Note
is registered at the close of business on the record date for such interest installment, which
shall be the close of business on the immediately preceding February 15 and August 15 prior to such
Interest Payment Date, as applicable. Any such interest installment not punctually paid or duly
provided for shall forthwith cease to be payable to the registered holders on such record date and
may be paid to the person in whose name this Note is registered at the close of business on a
subsequent record date (which shall be not less than five Business Days prior to the date of
payment of such defaulted interest), notice whereof shall be given by mail by or on behalf of the
Issuer to the registered holders of Notes not less than 15 days preceding such subsequent record
date, all as more fully provided in the Indenture. The principal of and the interest on this Note
shall be payable at the office or agency of the Issuer maintained for that purpose in any coin or
currency of the United States of America that at the time of payment is legal tender for payment of
public and private debts; provided, however, that payment of interest may be made at the option of
the Issuer by check mailed to the person entitled thereto at such address as shall appear in the
registry books of the

 

 

Issuer; provided, further that for so long as this Note is represented by a Registered Global
Security, payment of principal, premium, if any, or interest on this Note may be made by wire
transfer to the account of the Depositary or its nominee.

     Unless the certificate of authentication hereon has been executed by or on behalf of the
Trustee (as defined below) under the Indenture (as defined below), by the manual signature of one
of its authorized officers, this Note shall not be entitled to any benefit under the Indenture or
be valid or obligatory for any purpose.

     Capitalized terms used in this Note which are defined in the Indenture shall have the
respective meanings assigned to them in the Indenture.

     The provisions of this Note are continued on the reverse side hereof and such continued
provisions shall for all purposes have the same effect as though fully set forth at this place.

 

 

     IN WITNESS WHEREOF, the Issuer has caused this instrument to be duly executed, manually or in
facsimile, and an imprint or facsimile of its corporate seal to be imprinted hereon.

	 	 	 	 	 	 	 
	 	 	McKESSON CORPORATION	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

Nicholas A. Loiacono
	 	 
	 

	 	Title:
	 	Vice President and Treasurer	 	 

Attest:

	 	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

Name:
	 	 
	 

	 	Title:	 	 

CERTIFICATE OF AUTHENTICATION

This is one of the Securities

referred to in the within-mentioned

Indenture.

THE BANK OF NEW YORK TRUST COMPANY, N.A.

          as Trustee

	 	 	 	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

Authorized Signatory
	 	 
	 
	 	 	 	 
	Dated:
	 	 	 	 
	 

	 	 

	 	 

 

 

[REVERSE SIDE OF NOTE]

     This Note is one of a duly authorized series of securities (the “Securities”) of the Issuer
designated as its 5.25% Notes due March 1, 2013 (the “Notes”). The Securities are all issued or
to be issued under and pursuant to an Indenture, dated as of March 5, 2007 (the “Indenture”), duly
executed and delivered between the Issuer and The Bank of New York Trust Company, N.A., a national
banking association (the “Trustee,” which term includes any successor Trustee with respect to the
Securities under the Indenture), to which the Indenture and all indentures supplemental thereto
reference is hereby made for a statement of the respective rights thereunder of the Issuer, the
Trustee and the holders of the Securities and the terms upon which the Notes are to be
authenticated and delivered. The terms of individual series of Securities may vary with respect to
interest rate or interest rate formulas, issue dates, maturity, redemption, repayment, currency of
payment and otherwise.

     The Notes are issuable only as Registered Securities in minimum denominations of $1,000 and
integral multiples of $1,000 in excess thereof. As provided in the Indenture and subject to
certain limitations therein set forth, the Notes are exchangeable for a like aggregate principal
amount of Notes as requested by the holder surrendering the same.

     Except as set forth below, this Note is not redeemable and is not entitled to the benefit of a
sinking fund or any analogous provision.

     The Notes may be redeemed, in whole at any time or in part from time to time, at the option of
the Issuer at a redemption price equal to the greater of (i) 100% of their principal amount and
(ii) an amount, as determined by the Quotation Agent, equal to the sum of the present values of the
remaining scheduled payments of principal and interest thereon (not including any portion of such
payments of interest accrued as of the date of redemption), discounted to the date of redemption on
a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at the Treasury
Rate plus 15 basis points, plus, in each case, accrued interest thereon to the date of redemption.
Notwithstanding the foregoing, installments of interest on the Notes that are due and payable on
interest payment dates falling on or prior to a redemption date will be payable on the interest
payment date to the registered holders as of the close of business on the relevant record date.
Holders of the Notes will receive notice thereof at least 30 and not more than 60 days prior to the
date fixed for redemption. Unless the Issuer defaults in payment of the redemption price, on and
after the redemption date, interest will cease to accrue on the Notes or portions thereof called
for redemption. If less than all of the Notes are to be redeemed, the Notes to be redeemed will be
selected by the Trustee by a method the Trustee deems to be fair and appropriate.

     “Comparable Treasury Issue” means the United States Treasury security selected by the
Quotation Agent as having a maturity comparable to the remaining term of the Notes that would be
utilized, at 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 the Notes.

     “Comparable Treasury Price” means, with respect to any redemption date, (i) the average of
four Reference Treasury Dealer Quotations for such redemption date, after excluding the highest and
lowest such Reference Treasury Dealer Quotations, or (ii) if the Trustee obtains fewer than four
such Reference Treasury Dealer Quotations, the average of all such quotations.

     “Quotation Agent” means the Reference Treasury Dealer appointed by the Issuer.

     “Reference Treasury Dealer” means (i) Banc of America Securities LLC (or its affiliates that
are Primary Treasury Dealers) and its successors; provided, however, that if any of the

1

 

foregoing shall cease to be a primary U.S. Government securities dealer in New York City (a
“Primary Treasury Dealer”), the Issuer shall substitute therefor another Primary Treasury Dealer;
and (ii) any other Primary Treasury Dealer selected by the Issuer.

     “Reference Treasury Dealer Quotations” means, with respect to each Reference Treasury Dealer
and any redemption date, the average, as determined by the Trustee, of the bid and asked prices for
the Comparable Treasury Issue (expressed in each case as a percentage of its principal amount)
quoted in writing to the Trustee by that Reference Treasury Dealer at 5:00 p.m., New York City
time, on the third business day preceding that redemption date.

     “Treasury Rate” means, with respect to any redemption date, the rate per annum equal to the
semi-annual equivalent yield to maturity of the Comparable Treasury Issue, assuming a price for the
Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to the
Comparable Treasury Price for such redemption date.

     If a Change of Control Triggering Event occurs, unless the Issuer has exercised its right to
redeem the Notes as described above, holders of the Notes will have the right to require the Issuer
to repurchase all or any part (equal to $1,000 or an integral multiple of $1,000 in excess thereof)
of their Notes pursuant to the offer described below (the “Change of Control Offer”). In the
Change of Control Offer, the Issuer will be required to offer payment in cash equal to 101% of the
aggregate principal amount of Notes repurchased plus accrued and unpaid interest, if any, on the
Notes repurchased, to the date of purchase (the “Change of Control Payment”). Within 30 days
following any Change of Control Triggering Event, the Issuer will be required to mail a notice to
holders of the Notes describing the transaction or transactions that constitute the Change of
Control Triggering Event and offering to repurchase the Notes on the date specified in the notice,
which date will be no earlier than 30 days and no later than 60 days from the date such notice is
mailed (the “Change of Control Payment Date”), pursuant to the procedures described herein and in
such notice. The Issuer must comply with the requirements of Rule 14e-1 under the Exchange Act and
any other Notes laws and regulations thereunder to the extent those laws and regulations are
applicable in connection with the repurchase of the Notes as a result of a Change of Control
Triggering Event. To the extent that the provisions of any securities laws or regulations conflict
with the Change of Control provisions herein, the Issuer will be required to comply with the
applicable securities laws and regulations and will not be deemed to have breached its obligations
under the Change of Control provisions herein by virtue of such conflicts.

     On the Change of Control Payment Date, the Issuer will be required, to the extent lawful, to
(i) accept for payment all Notes or portions of Notes properly tendered pursuant to the Change of
Control Offer; (ii) deposit with the paying agent an amount equal to the Change of Control Payment
in respect of all Notes or portions of Notes properly tendered; and (iii) deliver or cause to be
delivered to the Trustee the Notes properly accepted together with an Officer’s Certificate stating
the aggregate principal amount of Notes or portions of Notes being purchased.

     “Below Investment Grade Rating Event” means the Notes are rated below an Investment Grade
Rating by each of the Rating Agencies (as defined below) on any date from the date of the public
notice of an arrangement that could result in a Change of Control until the end of the 60-day
period following public notice of the occurrence of the Change of Control (which 60-day period
shall be extended so long as the rating of the Notes is under publicly announced consideration for
possible downgrade by any of the Rating Agencies).

     “Change of Control” means the occurrence of any of the following: (1) the direct or indirect
sale, transfer, conveyance or other disposition (other than by way of merger or consolidation), in
one or a series of related transactions, of all or substantially all of the properties or assets of
the Issuer

2

 

and its Subsidiaries taken as a whole to any Person other than the Issuer or one of its
Subsidiaries; (2) the consummation of any transaction (including, without limitation, any merger or
consolidation) the result of which is that any Person becomes the beneficial owner, directly or
indirectly, of more than 50% of the then outstanding number of shares of the Issuer’s voting stock;
or (3) the first day on which a majority of the members of the Issuer’s Board of Directors are not
Continuing Directors. Notwithstanding the foregoing, a transaction will not be deemed to be
involve a Change of Control if (i) the Issuer becomes a wholly owned subsidiary of a holding
company and (ii) the holders of the voting stock of such holding company immediately following that
transaction are substantially the same as the holders of our voting stock immediately prior to that
transaction.

     “Change of Control Triggering Event” means the occurrence of both a Change of Control and a
Below Investment Grade Rating Event.

     “Continuing Directors” means, as of any date of determination, any member of the Board of
Directors of the Issuer who (1) was a member of such Board of Directors on the date of original
issue of this Security; or (2) was nominated for election or elected to such Board of Directors
with the approval of a majority of the Continuing Directors who were members of such Board of
Directors at the time of such nomination or election (either by a specific vote or by approval of
the Issuer’s proxy statement in which such member was named as a nominee for election as a
director, without objection to such nomination).

     “Fitch” means Fitch Ratings.

     “Investment Grade Rating” means a rating equal to or higher than BBB- (or the equivalent) by
Fitch, Baa3 (or the equivalent) by Moody’s and BBB- (or the equivalent) by S&P.

     “Moody’s” means Moody’s Investors Service, Inc.

     “Person” has the meaning set forth in the Indenture and includes a “person” as used in Section
13(d)(3) of the Exchange Act.

     “Rating Agencies” means (1) each of Fitch, Moody’s and S&P; and (2) if any of Fitch, Moody’s
or S&P ceases to rate the notes or fails to make a rating of the notes publicly available for
reasons outside of our control, a “nationally recognized statistical rating organization” within
the meaning of Rule 15c3-1(c)(2)(vi)(F) under the Exchange Act, selected by the Issuer (as
certified by a Board Resolution) as a replacement agency for Fitch, Moody’s or S&P, or all of them,
as the case may be.

     “S&P” means Standard & Poor’s Ratings Services, a division of The McGraw-Hill Companies, Inc.

     If an Event of Default with respect to the Notes shall occur and be continuing, the principal
of all the Notes may be declared due and payable in the manner and with the effect provided in the
Indenture.

     The Indenture contains provisions permitting the Issuer and the Trustee, with the consent of
the holders of not less than a majority in aggregate principal amount of the Senior Securities or
Subordinated Securities, as the case may be, of all series issued under such Indenture then
outstanding and affected (each voting as one class), to add any provisions to, or change in any
manner, eliminate or waive any of the provisions of, such Indenture or modify in any manner the
rights of the holders of the Securities of each series or Coupons so affected; provided that the
Issuer and the Trustee may not,

3

 

without the consent of the holder of each Outstanding Security affected thereby, (i) extend
the final maturity of the principal of any Security or reduce the principal amount thereof or
premium thereon, if any, or reduce the rate or extend the time of payment of interest thereon, or
reduce any amount payable on redemption thereof or change the currency in which the principal
thereof (other than as otherwise may be provided with respect to such series), premium, if any, or
interest thereon is payable or reduce the amount of the principal of any Original Issue Discount
Security that is payable upon acceleration or provable in bankruptcy, or in the case of
Subordinated Securities of any series, modify any of the subordination provisions or the definition
of “Senior Indebtedness” relating to such series in a manner adverse to the holders of such
Subordinated Securities, or alter certain provisions of the Indenture relating to Securities not
denominated in Dollars or the Judgment Currency of such Securities or impair or affect the right of
any Securityholder to institute suit for the enforcement of any payment thereof when due or, if the
Securities provide therefor, any right of repayment at the option of the Securityholder or (ii)
reduce the aforesaid percentage in principal amount of Securities of any series issued under the
Indenture, the consent of the holders of which is required for any such modification. It is also
provided in the Indenture that, with respect to certain defaults or Events of Default regarding the
Securities of any series, the holders of a majority in aggregate principal amount Outstanding of
the Securities of each such series, each such series voting as a separate class (or, of all
Securities, as the case may be voting as a single class) may under certain circumstances waive all
defaults with respect to each such series (or with respect to all the Securities, as the case may
be) and rescind and annul a declaration of default and its consequences, but no such waiver or
rescission and annulment shall extend to or affect any subsequent default or shall impair any right
consequent thereto. The preceding sentence shall not, however, apply to a default in the payment
of the principal of or interest on any of the Securities.

     No reference herein to the Indenture and no provision of this Note or of the Indenture shall
alter or impair the obligation of the Issuer, which is absolute and unconditional, to pay the
principal of and interest on this Note at the time, place and rate, and in the coin or currency,
herein prescribed.

     As provided in the Indenture and subject to certain limitations therein set forth, the
transfer of this Note may be registered on the registry books of the Issuer, upon surrender of this
Note for registration of transfer at the office or agency of the Issuer maintained by the Issuer
for such purpose in the Borough of Manhattan, The City of New York, duly endorsed by, or
accompanied by a written instrument of transfer in form satisfactory to the Issuer and the Trustee
duly executed by, the holder hereof or by its attorney duly authorized in writing, and thereupon
one or more new Notes of authorized denominations and for the same aggregate principal amount, will
be issued to the designated transferee or transferees.

     No service charge shall be made for any such registration of transfer or exchange, but the
Issuer may require payment of a sum sufficient to cover any tax or other governmental charge that
may be imposed in connection therewith.

     Prior to due presentment of this Note for registration of transfer, the Issuer, the Trustee
and any agent of the Issuer or the Trustee may treat the person in whose name this Note is
registered as the owner hereof for all purposes, whether or not this Note be overdue, and neither
the Issuer, the Trustee nor any such agent shall be affected by notice to the contrary.

     THIS NOTE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW
YORK, INCLUDING, WITHOUT LIMITATION, SECTION 5-1401 OF THE NEW YORK GENERAL OBLIGATIONS LAW.

4

 

[FORM OF SCHEDULE FOR ENDORSEMENTS ON REGISTERED

GLOBAL SECURITIES TO REFLECT CHANGES IN PRINCIPAL AMOUNT]

Schedule A

Changes to Principal Amount of Registered Global Securities

	 	 	 	 	 	 	 
	 	 	Principal Amount	 	 	 	 
	 	 	of Notes	 	 	 	 
	 	 	by which this	 	 	 	 
	 	 	Registered Global	 	 	 	 
	 	 	Security is to be	 	Remaining Principal	 	 
	 	 	Reduced or Increased,	 	Amount of this	 	 
	 	 	and Reason for	 	Registered	 	 
	Date	 	Reduction or Increase	 	Global Security	 	Notation Made By
	 
	 	 
	 	 
	 	 

5

 

ANNEX B

     Pursuant to Section 2.3 of the Indenture, dated as of March 5, 2007 (the “Indenture”), between
McKesson Corporation (the “Issuer”) and The Bank of New York Trust Company, N.A., a national
banking association, as trustee (the “Trustee”), the terms of a series of securities to be issued
pursuant to the Indenture are as follows:

	 	1.	 	Designation. The designation of the securities is
“5.70% Notes due March 1, 2017” (the “2017 Notes”).
	 
	 	2.	 	Initial Aggregate Principal Amount. The 2017 Notes
shall be limited in initial aggregate principal amount to $500,000,000 (except
for 2017 Notes authenticated and delivered upon registration of transfer of, or
in exchange for, or in lieu of, other 2017 Notes pursuant to Section 2.8, 2.9,
2.11, 8.5 or 12.3 of the Indenture).
	 
	 	3.	 	Currency Denomination. The 2017 Notes shall be
denominated in Dollars.
	 
	 	4.	 	Maturity. The date on which the principal of the 2017
Notes is payable is March 1, 2017.
	 
	 	5.	 	Rate of Interest; Interest Payment Date; Regular Record
Dates. Each 2017 Note shall bear interest from March 5, 2007 at 5.70% per
annum until the principal thereof is paid. Such interest shall be payable
semi-annually in arrears on March 1 and September 1 of each year, commencing on
September 1, 2007, to the persons in whose names the 2017 Notes are registered
at the close of business on the immediately preceding February 15 and August
15, respectively. Interest on the 2017 Notes shall accrue from the most recent
date to which interest has been paid or, if no interest has been paid, from
March 5, 2007. Interest on the 2017 Notes shall be computed on the basis of a
360-day year comprised of twelve 30-day months. In the event that any date on
which principal, premium, if any, or interest is payable on the 2017 Notes is
not a Business Day, then payment of the principal, premium, if any, or interest
payable on such date will be made on the next succeeding day that is a Business
Day (and without any interest or other payment in respect of any such delay).
	 
	 	6.	 	Place of Payment. Principal of, premium, if any, and
interest on the 2017 Notes shall be payable, and the transfer of the 2017 Notes
shall be registrable, at the office or agency of the Issuer to be maintained
for such purpose in the Borough of Manhattan, The City of New York, except
that, at the option of the Issuer, interest may be paid by mailing a check to
the address of the person entitled thereto as it appears on the 2017 Notes
register; provided, however, that while any 2017 Notes are represented by a
Registered Global Security, payment of principal of, premium, if any, or

B-1

 

	 	 	 	interest on the 2017 Notes may be made by wire transfer to the account of
the Depositary or its nominee.
	 
	 	7.	 	Optional Redemption. The 2017 Notes may be redeemed,
in whole at any time or in part from time to time, at the option of the Issuer
at a redemption price equal to the greater of (i) 100% of their principal
amount and (ii) an amount, as determined by the Quotation Agent, equal to the
sum of the present values of the remaining scheduled payments of principal and
interest thereon (not including any portion of such payments of interest
accrued as of the date of redemption), discounted to the date of redemption on
a semi-annual basis (assuming a 360-day year consisting of twelve 30-day
months) at the Treasury Rate plus 20 basis points, plus, in each case, accrued
interest thereon to the date of redemption. Notwithstanding the foregoing,
installments of interest on 2017 Notes that are due and payable on interest
payment dates falling on or prior to a redemption date will be payable on the
interest payment date to the registered holders as of the close of business on
the relevant record date according to the 2017 Notes and the Indenture.
Holders of the 2017 Notes to be redeemed will receive notice thereof at least
30 and not more than 60 days prior to the date fixed for redemption. Unless
the Issuer defaults in payment of the redemption price, on and after the
redemption date, interest will cease to accrue on the 2017 Notes or portions
thereof called for redemption. If less than all of the 2017 Notes are to be
redeemed, the 2017 Notes to be redeemed will be selected by the Trustee by a
method the Trustee deems to be fair and appropriate.
	 
	 	 	 	“Comparable Treasury Issue” means the United States Treasury security
selected by the Quotation Agent as having a maturity comparable to the
remaining term of the 2017 Notes that would be utilized, at 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 the 2017 Notes.
	 
	 	 	 	“Comparable Treasury Price” means, with respect to any redemption date, (i)
the average of four Reference Treasury Dealer Quotations for such redemption
date, after excluding the highest and lowest such Reference Treasury Dealer
Quotations, or (ii) if the Trustee obtains fewer than four such Reference
Treasury Dealer Quotations, the average of all such quotations.
	 
	 	 	 	“Quotation Agent” means the Reference Treasury Dealer appointed by the
Issuer.
	 
	 	 	 	“Reference Treasury Dealer” means (i) Banc of America Securities LLC (or its
respective affiliates that are Primary Treasury Dealers) and its successors;
provided, however, that if any of the foregoing shall cease to

B-2

 

	 	 	 	be a primary U.S. Government securities dealer in New York City (a “Primary
Treasury Dealer”), the Issuer shall substitute therefor another Primary
Treasury Dealer; and (ii) any other Primary Treasury Dealer selected by the
Issuer.
	 
	 	 	 	“Reference Treasury Dealer Quotations” means, with respect to each Reference
Treasury Dealer and any redemption date, the average, as determined by the
Trustee, of the bid and asked prices for the Comparable Treasury Issue
(expressed in each case as a percentage of its principal amount) quoted in
writing to the Trustee by that Reference Treasury Dealer at 5:00 p.m., New
York City time, on the third business day preceding that redemption date.
	 
	 	 	 	“Treasury Rate” means, with respect to any redemption date, the rate per
annum equal to the semi-annual equivalent yield to maturity of the
Comparable Treasury Issue, assuming a price for the Comparable Treasury
Issue (expressed as a percentage of its principal amount) equal to the
Comparable Treasury Price for such redemption date.
	 
	 	8.	 	Change of Control. If a Change of Control Triggering
Event occurs, unless the Issuer has exercised its right to redeem the 2017
Notes as described above, holders of the 2017 Notes will have the right to
require the Issuer to repurchase all or any part (equal to $1,000 or an
integral multiple of $1,000 in excess thereof) of their 2017 Notes pursuant to
the offer described below (the “Change of Control Offer”). In the Change of
Control Offer, the Issuer will be required to offer payment in cash equal to
101% of the aggregate principal amount of 2017 Notes repurchased plus accrued
and unpaid interest, if any, on the 2017 Notes repurchased, to the date of
purchase (the “Change of Control Payment”). Within 30 days following any Change
of Control Triggering Event, the Issuer will be required to mail a notice to
holders of the 2017 Notes describing the transaction or transactions that
constitute the Change of Control Triggering Event and offering to repurchase
the 2017 Notes on the date specified in the notice, which date will be no
earlier than 30 days and no later than 60 days from the date such notice is
mailed (the “Change of Control Payment Date”), pursuant to the procedures
described herein and in such notice. The Issuer must comply with the
requirements of Rule 14e-1 under the Exchange Act and any other securities laws
and regulations thereunder to the extent those laws and regulations are
applicable in connection with the repurchase of the 2017 Notes as a result of a
Change of Control Triggering Event. To the extent that the provisions of any
securities laws or regulations conflict with the Change of Control provisions
herein, the Issuer will be required to comply with the applicable securities
laws and regulations and will not be deemed to have breached its obligations
under the Change of Control provisions herein by virtue of such conflicts.

B-3

 

	 	 	 	On the Change of Control Payment Date, the Issuer will be required, to the
extent lawful, to (i) accept for payment all 2017 Notes or portions of 2017
Notes properly tendered pursuant to the Change of Control Offer; (ii)
deposit with the paying agent an amount equal to the Change of Control
Payment in respect of all 2017 Notes or portions of 2017 Notes properly
tendered; and (iii) deliver or cause to be delivered to the Trustee the 2017
Notes properly accepted together with an Officer’s Certificate stating the
aggregate principal amount of 2017 Notes or portions of 2017 Notes being
purchased.
	 
	 	 	 	“Below Investment Grade Rating Event” means the 2017 Notes are rated below
an Investment Grade Rating by each of the Rating Agencies (as defined below)
on any date from the date of the public notice of an arrangement that could
result in a Change of Control until the end of the 60-day period following
public notice of the occurrence of the Change of Control (which 60-day
period shall be extended so long as the rating of the 2017 Notes is under
publicly announced consideration for possible downgrade by any of the Rating
Agencies).
	 
	 	 	 	“Change of Control” means the occurrence of any of the following: (1) the
direct or indirect sale, transfer, conveyance or other disposition (other
than by way of merger or consolidation), in one or a series of related
transactions, of all or substantially all of the properties or assets of the
Issuer and its Subsidiaries taken as a whole to any Person other than the
Issuer or one of its Subsidiaries; (2) the consummation of any transaction
(including, without limitation, any merger or consolidation) the result of
which is that any Person becomes the beneficial owner, directly or
indirectly, of more than 50% of the then outstanding number of shares of the
Issuer’s voting stock; or (3) the first day on which a majority of the
members of the Issuer’s Board of Directors are not Continuing Directors.
Notwithstanding the foregoing, a transaction will not be deemed to be
involve a Change of Control if (i) the Issuer becomes a wholly owned
subsidiary of a holding company and (ii) the holders of the voting stock of
such holding company immediately following that transaction are
substantially the same as the holders of our voting stock immediately prior
to that transaction.
	 
	 	 	 	“Change of Control Triggering Event” means the occurrence of both a Change
of Control and a Below Investment Grade Rating Event.
	 
	 	 	 	“Continuing Directors” means, as of any date of determination, any member of
the Board of Directors of the Issuer who (1) was a member of such Board of
Directors on the date of original issue of this Security; or (2) was
nominated for election or elected to such Board of Directors with the
approval of a majority of the Continuing Directors who were members of

B-4

 

	 	 	 	such Board of Directors at the time of such nomination or election (either
by a specific vote or by approval of the Issuer’s proxy statement in which
such member was named as a nominee for election as a director, without
objection to such nomination).
	 
	 	 	 	“Fitch” means Fitch Ratings.
	 
	 	 	 	“Investment Grade Rating” means a rating equal to or higher than BBB- (or
the equivalent) by Fitch, Baa3 (or the equivalent) by Moody’s and BBB- (or
the equivalent) by S&P.
	 
	 	 	 	“Moody’s” means Moody’s Investors Service, Inc.
	 
	 	 	 	“Person” has the meaning set forth in the Indenture and includes a “person”
as used in Section 13(d)(3) of the Exchange Act.
	 
	 	 	 	“Rating Agencies” means (1) each of Fitch, Moody’s and S&P; and (2) if any
of Fitch, Moody’s or S&P ceases to rate the notes or fails to make a rating
of the notes publicly available for reasons outside of our control, a
“nationally recognized statistical rating organization” within the meaning
of Rule 15c3-1(c)(2)(vi)(F) under the Exchange Act, selected by the Issuer
(as certified by a Board Resolution) as a replacement agency for Fitch,
Moody’s or S&P, or all of them, as the case may be.
	 
	 	 	 	“S&P” means Standard & Poor’s Ratings Services, a division of The
McGraw-Hill Companies, Inc.
	 
	 	9.	 	Mandatory Redemption. The 2017 Notes are not
mandatorily redeemable and are not entitled to the benefit of a sinking fund or
any analogous provisions.
	 
	 	10.	 	Denominations. The 2017 Notes shall be issued
initially in minimum denominations of $1,000 and shall be issued in integral
multiples of $1,000 in excess thereof.
	 
	 	11.	 	Amount Payable Upon Acceleration. The principal of the
2017 Notes shall be payable upon declaration of acceleration pursuant to
Section 5.1 of the Indenture.
	 
	 	12.	 	Payment Currency. Principal and interest on the 2017
Notes shall be payable in Dollars.
	 
	 	13.	 	Payment Currency — Election. The principal of and
interest on the 2017 Notes shall not be payable in a currency other than
Dollars.

B-5

 

	 	14.	 	Payment Currency — Index. The principal of and
interest on the 2017 Notes shall not be determined with reference to an index
based on a coin or currency.
	 
	 	15.	 	Registered Securities. The 2017 Notes shall be issued
only as Registered Securities. The 2017 Notes shall be issuable as Registered
Global Securities.
	 
	 	16.	 	Additional Amounts. The Issuer shall not pay
additional amounts on the 2017 Notes held by a Person that is not a U.S. Person
in respect of taxes or similar charges withheld or deducted.
	 
	 	17.	 	Definitive Certificates. Section 2.8 of the Indenture
will govern the transferability of the 2017 Notes in definitive form.
	 
	 	18.	 	Registrar; Paying Agent; Depositary. The Trustee shall
initially serve as the registrar and the paying agent for the 2017 Notes. The
Depository Trust Company shall initially serve as the Depositary for the
Registered Global Security representing the 2017 Notes.
	 
	 	19.	 	Events of Default; Covenants. There shall be no
deletions from or modifications or additions to the Events of Default set forth
in Section 5.1 of the Indenture with respect to the 2017 Notes. There shall be
the following additions to the covenants of the Issuer set forth in Article III
of the Indenture with respect to the 2017 Notes:
	 
	 	 	 	Limitation on Liens. The Issuer covenants that, so long as any of the 2017
Notes remain outstanding, it shall not, nor shall it permit any Consolidated
Subsidiary to, create or assume any Indebtedness for money borrowed which is
secured by a mortgage, pledge, security interest or lien (“liens”) of or
upon any assets, whether now owned or hereafter acquired, of the Issuer or
any such Consolidated Subsidiary without equally and ratably securing the
2017 Notes by a lien ranking ratably with and equal to (or at the option of
the Issuer, senior to) such secured Indebtedness, except that the foregoing
restriction shall not apply to (a) liens on any assets of any corporation
existing at the time such corporation becomes a Consolidated Subsidiary; (b)
liens on any assets existing at the time of acquisition of such assets by
the Issuer or a Consolidated Subsidiary, or liens to secure the payment of
all or any part of the purchase price of such assets upon the acquisition of
such assets by the Issuer or a Consolidated Subsidiary or to secure any
indebtedness incurred or guaranteed by the Issuer or a Consolidated
Subsidiary prior to, at the time of, or within 360 days after such
acquisition (or in the case of real property, the completion of construction
(including any improvements on an existing asset) or commencement of full
operation of such asset, whichever is later), which indebtedness is incurred
or guaranteed for the purpose of financing all or

B-6

 

	 	 	 	any part of the purchase price thereof or, in the case of real property,
construction or improvements thereon; provided, however, that in the case of
any such acquisition, construction or improvement, the lien shall not apply
to any assets theretofore owned by the Issuer or a Consolidated Subsidiary,
other than, in the case of any such construction or improvement, any real
property on which the property so constructed, or the improvement, is
located, or to secure the payment of the purchase price of such assets, or
to secure indebtedness incurred or guaranteed by the Issuer or a
Consolidated Subsidiary for the purpose of financing the purchase price of
such assets or improvements or construction thereon, which indebtedness is
incurred or guaranteed prior to, at the time of or within 360 days after
such acquisition (or in the case of real property, completion of such
improvement or construction or commencement of full operation of such
property, whichever is later); (c) liens on any assets securing indebtedness
owed by any Consolidated Subsidiary to the Issuer or another wholly owned
Subsidiary; (d) liens on any assets of a corporation existing at the time
such corporation is merged into or consolidated with the Issuer or a
Subsidiary or at the time of a purchase, lease or other acquisition of the
assets of a corporation or firm as an entirety or substantially as an
entirety by the Issuer or a Subsidiary; (e) liens on any assets of the
Issuer or a Consolidated Subsidiary in favor of the United States of America
or any state thereof, or any department, agency or instrumentality or
political subdivision of the United States of America or any State thereof,
or in favor of any other country, or any political subdivision thereof, to
secure partial, progress, advance or other payments pursuant to any contract
or statute or to secure any indebtedness incurred or guaranteed for the
purpose of financing all or any part of the purchase price (or, in the case
of real property, the cost of construction) of the assets subject to such
liens (including, but not limited to, liens incurred in connection with
pollution control, industrial revenue or similar financing); (f) any
extension, renewal or replacement (or successive extensions, renewals or
replacements), in whole or in part, of any lien referred to in the foregoing
clauses (a) to (e), inclusive; provided, however, that the principal amount
of indebtedness secured thereby shall not exceed the principal amount of
indebtedness so secured at the time of such extension, renewal or
replacement, and that such extension, renewal or replacement shall be
limited to all or a part of the assets which secured the lien so extended,
renewed or replaced (plus improvements and construction on such real
property); (g) liens imposed by law, such as mechanics’, workmen’s,
repairmen’s, materialmen’s, carriers’, warehousemen’s, vendors’ or other
similar liens arising in the ordinary course of business, or governmental
(federal, state or municipal) liens arising out of contracts for the sale of
products or services by the Issuer or any Consolidated Subsidiary, or
deposits or pledges to obtain the release of any of the foregoing liens; (h)
pledges, liens or deposits under worker’s compensation laws or similar
legislation and liens or judgments

B-7

 

	 	 	 	thereunder which are not currently dischargeable, or in connection with
bids, tenders, contracts (other than for the payment of money) or leases to
which the Issuer or any Consolidated Subsidiary is a party, or to secure
public or statutory obligations of the Issuer or any Consolidated
Subsidiary, or in connection with obtaining or maintaining self-insurance or
to obtain the benefits of any law, regulation or arrangement pertaining to
unemployment insurance, old age pensions, social security or similar
matters, or to secure surety, appeal or customs bonds to which the Issuer or
any Consolidated Subsidiary is a party, or in litigation or other
proceedings such as, but not limited to, interpleader proceedings, and other
similar pledges, liens or deposits made or incurred in the ordinary course
of business; (i) liens created by or resulting from any litigation or other
proceeding which is being contested in good faith by appropriate
proceedings, including liens arising out of judgements or awards against the
Issuer or any Consolidated Subsidiary with respect to which the Issuer or
such Consolidated Subsidiary is in good faith prosecuting an appeal or
proceedings for review or for which the time to make an appeal has not yet
expired; or final unappealable judgment liens which are satisfied within 15
days of the date of judgment; or liens incurred by the Issuer or any
Consolidated Subsidiary for the purpose of obtaining a stay or discharge in
the course of any litigation or other proceeding to which the Issuer or such
Consolidated Subsidiary is a party; (j) liens for taxes or assessments or
governmental charges or levies not yet due or delinquent, or which can
thereafter be paid without penalty, or which are being contested in good
faith by appropriate proceedings; landlord’s liens on property held under
lease; and any other liens or charges incidental to the conduct of the
business of the Issuer or any Consolidated Subsidiary or the ownership of
the assets of any of them which were not incurred in connection with the
borrowing of money or the obtaining of advances or credit and which do not,
in the opinion of the Issuer, materially impair the use of such assets in
the operation of the business of the Issuer or such Consolidated Subsidiary
or the value of such assets for the purposes thereof; or (k) liens relating
to accounts receivable of the Issuer or any of its Subsidiaries which have
been sold, assigned or otherwise transferred to another Person in a
transaction classified as a sale of accounts receivable in accordance with
generally accepted accounting principles (to the extent the sale by the
Issuer or the applicable Subsidiary is deemed to give rise to a lien in
favor of the purchaser thereof in such accounts receivable or the proceeds
thereof). Notwithstanding the above, the Issuer or any Consolidated
Subsidiary may, without securing the 2017 Notes, create or assume any
Indebtedness which is secured by a lien which would otherwise be subject to
the foregoing restrictions, provided that at the time of such creation or
assumption, after giving effect thereto, Exempted Debt does not exceed 10%
of the total assets of the Issuer and its Subsidiaries on a consolidated
basis, determined in accordance with generally accepted accounting
principles.

B-8

 

	 	 	 	Limitation on Sale and Lease-Back Transactions. The Issuer covenants that,
so long as any of the 2017 Notes remain outstanding, the Issuer will not,
nor shall the Issuer permit any Consolidated Subsidiary to, enter into any
sale and lease-back transaction with respect to any assets, other than any
sale lease-back transaction (involving a lease for a term of not more than
three years), unless either (a) the Issuer or such Consolidated Subsidiary
would be entitled to incur Indebtedness secured by a lien on the assets to
be leased in an amount at least equal to the Attributable Debt in respect of
such transaction without equally and ratably securing the 2017 Notes
pursuant to clauses (a) through (j) inclusive of the covenant with respect
to “Limitation on Liens” above, or (b) the proceeds of the sale of the
assets to be leased are at least equal to their fair market value (as
determined by the Board of Directors of the Issuer) and the proceeds are
applied to the purchase or acquisition (or, in the case of real property,
the construction) of assets or to the retirement (other than at maturity or
pursuant to a mandatory sinking fund or mandatory redemption provision) of
indebtedness. The foregoing limitation shall not apply, if at the time the
Issuer or any Consolidated Subsidiary enters into such sale and lease-back
transaction, and after giving effect thereto, Exempted Debt does not exceed
10% of the total assets of the Issuer and its Subsidiaries on a consolidated
basis, determined in accordance with generally accepted accounting
principles.
	 
	 	 	 	The term “Attributable Debt” in connection with a sale and lease-back
transaction shall mean, as of the date of determination, the lesser of (a)
the fair value of the assets subject to such transaction, as determined by
McKesson’s Board of Directors, or (b) the present value (discounted at the
rate of interest set forth in or implicit in the terms of such lease or, if
it is not practicable to determine such rate, the weighted average interest
rate per annum borne by all series of Securities then Outstanding and
subject to the “Limitation on Sale and Lease-back Transactions” covenant
above compounded semi-annually, in either case as determined by the
principal accounting or financial officer of the Issuer) of the obligations
of the Issuer or any Consolidated Subsidiary for net rental payments during
the remaining term of all leases (including any period for which such lease
has been extended or may, at the option of the lessor, be extended).
	 
	 	 	 	The term “Consolidated Subsidiary” shall mean any Subsidiary substantially
all the property of which is located, and substantially all the operations
of which are conducted, in the United States of America whose financial
statements are consolidated with those of the Issuer in accordance with
generally accepted accounting principles.
	 
	 	 	 	The term “Exempted Debt” shall mean the sum of the following as of the date
of determination: (i) Indebtedness of the Issuer and its Consolidated

B-9

 

	 	 	 	Subsidiaries incurred after the date of issuance of the Notes and secured by
liens not permitted to be created or assumed pursuant to the covenant with
respect to “Limitation on Liens” above, and (ii) Attributable Debt of the
Issuer and its Consolidated Subsidiaries in respect of every sale and
lease-back transaction entered into after the date of issuance of the Notes,
other than leases expressly permitted by the covenant with respect to
“Limitation on Sale and Lease-Back Transactions” above.
	 
	 	 	 	The term “Indebtedness” shall mean all items classified as indebtedness on
the most recently available consolidated balance sheet of the Issuer and its
Consolidated Subsidiaries, in accordance with generally accepted accounting
principles.
	 
	 	 	 	The term “net rental payments” under any lease of 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 maintenance and repairs, reconstruction, insurance,
taxes, assessments, water rates 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, maintenance and repairs,
reconstruction, insurance, taxes, assessments, water rates or similar
charges.
	 
	 	 	 	The term “Subsidiary” shall mean any corporation of which at least a
majority of the outstanding stock having voting power under ordinary
circumstances for the election of the board of directors of such corporation
shall at the time be owned by the Issuer or by the Issuer and one or more
Subsidiaries or by one or more Subsidiaries.
	 
	 	20.	 	Conversion and Exchange. The 2017 Notes shall not be
convertible into or exchangeable into any other security.
	 
	 	21.	 	Further Issues. The Issuer may, without notice to or
the consent of the holders of the 2017 Notes, create and issue further notes
ranking equally and ratably with the 2017 Notes in all respects, or in all
respects except for the payment of interest accruing prior to the issue date of
such further notes. Such further notes shall be consolidated and form a single
series with the 2017 Notes and shall have the same terms as to status,
redemption or otherwise as the 2017 Notes.
	 
	 	22.	 	Other Terms. The 2017 Notes shall have the other terms
and shall be substantially in the form set forth in the form of the 2017 Notes
attached hereto as Annex B-1. In case of any conflict between this Annex B and
the 2017 Notes, the form of the 2017 Notes shall control.

B-10

 

     Capitalized terms used but not otherwise defined in this Annex B shall have the respective
meanings ascribed to such terms in the Indenture.

B-11

 

ANNEX B-1

[FORM OF 2017 NOTE]

 

 

			
	REGISTERED
	 	REGISTERED

THIS NOTE IS A REGISTERED GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED
TO AND IS REGISTERED IN THE NAME OF A DEPOSITARY OR A NOMINEE OF A DEPOSITARY. UNLESS THIS NOTE IS
PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY (55 WATER STREET, NEW
YORK, NEW YORK) TO THE ISSUER OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND
ANY NOTE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER NAME AS REQUESTED BY AN
AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY AND ANY PAYMENT HEREON IS MADE TO CEDE &
CO., ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY A PERSON IS WRONGFUL SINCE
THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN. TRANSFERS OF THIS REGISTERED
GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS IN WHOLE, BUT NOT IN PART, TO NOMINEES OF THE
DEPOSITORY TRUST COMPANY OR TO A SUCCESSOR THEREOF OR SUCH SUCCESSOR’S NOMINEE.

			
	No. 1
	 	CUSIP NO. 581557 AV7

McKESSON CORPORATION

5.70% NOTES DUE MARCH 1, 2017

     McKesson Corporation, a Delaware corporation (the “Issuer,” which term includes any successor
corporation under the Indenture hereinafter referred to), for value received, hereby promises to
pay to, Cede & Co., or registered assigns, the principal sum of Five Hundred Million Dollars
($500,000,000) on March 1, 2017 and to pay interest on said principal sum from March 5, 2007, or
from the most recent interest payment date to which interest has been paid or duly provided for,
semi-annually in arrears on March 1 and September 1 (each such date, an “Interest Payment Date”) of
each year commencing on September 1, 2007, at the rate of 5.70% per annum until the principal
hereof shall have become due and payable.

     The amount of interest payable on any Interest Payment Date shall be computed on the basis of
a 360-day year comprised of twelve 30-day months. In the event that any date on which the
principal or interest payable on this Note is not a Business Day, then payment of principal or
interest payable on such date will be made on the next succeeding day that is a Business Day (and
without any interest or other payment in respect of such delay). The interest installment so
payable, and punctually paid or duly provided for, on any Interest Payment Date will, as provided
in the Indenture (referred to on the reverse hereof) be paid to the person in whose name this Note
is registered at the close of business on the record date for such interest installment, which
shall be the close of business on the immediately preceding February 15 and August 15 prior to such
Interest Payment Date, as applicable. Any such interest installment not punctually paid or duly
provided for shall forthwith cease to be payable to the registered holders on such record date and
may be paid to the person in whose name this Note is registered at the close of business on a
subsequent record date (which shall be not less than five Business Days prior to the date of
payment of such defaulted interest), notice whereof shall be given by mail by or on behalf of the
Issuer to the registered holders of Notes not less than 15 days preceding such subsequent record
date, all as more fully provided in the Indenture. The principal of and the interest on this Note
shall be payable at the office or agency of the Issuer maintained for that purpose in any coin or
currency of the United States of America that at the time of payment is legal tender for payment of
public and private debts; provided, however, that payment of interest may be made at the option of
the Issuer by check mailed to the person entitled thereto at such address as shall appear in the
registry books of the

 

 

Issuer; provided, further that for so long as this Note is represented by a Registered Global
Security, payment of principal, premium, if any, or interest on this Note may be made by wire
transfer to the account of the Depositary or its nominee.

     Unless the certificate of authentication hereon has been executed by or on behalf of the
Trustee (as defined below) under the Indenture (as defined below), by the manual signature of one
of its authorized officers, this Note shall not be entitled to any benefit under the Indenture or
be valid or obligatory for any purpose.

     Capitalized terms used in this Note which are defined in the Indenture shall have the
respective meanings assigned to them in the Indenture.

     The provisions of this Note are continued on the reverse side hereof and such continued
provisions shall for all purposes have the same effect as though fully set forth at this place.

 

 

     IN WITNESS WHEREOF, the Issuer has caused this instrument to be duly executed, manually or in
facsimile, and an imprint or facsimile of its corporate seal to be imprinted hereon.

	 	 	 	 	 	 	 
	 	 	McKESSON CORPORATION	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Nicholas A. Loiacono	 	 
	 

	 	Title:
	 	Vice President and Treasurer	 	 

Attest:

	 	 	 	 	 
	By:

	 	 	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	Title:	 	 

CERTIFICATE OF AUTHENTICATION

This is one of the Securities

referred to in the within-mentioned

Indenture.

	 	 	 	 	 
	THE BANK OF NEW YORK TRUST COMPANY, N.A.	 	 
	 

	 	as Trustee	 	 
	 
	 	 	 	 
	By:

	 	 	 	 
	 

	 	 	 	 
	 

	 	Authorized Signatory	 	 
	 
	 	 	 	 
	Dated:

	 	 	 	 
	 

	 	 	 	 

 

 

[REVERSE SIDE OF NOTE]

     This Note is one of a duly authorized series of securities (the “Securities”) of the Issuer
designated as its 5.70% Notes due March 1, 2017 (the “Notes”). The Securities are all issued or
to be issued under and pursuant to an Indenture, dated as of March 5, 2007 (the “Indenture”), duly
executed and delivered between the Issuer and The Bank of New York Trust Company, N.A., a national
banking association (the “Trustee,” which term includes any successor Trustee with respect to the
Securities under the Indenture), to which the Indenture and all indentures supplemental thereto
reference is hereby made for a statement of the respective rights thereunder of the Issuer, the
Trustee and the holders of the Securities and the terms upon which the Notes are to be
authenticated and delivered. The terms of individual series of Securities may vary with respect to
interest rate or interest rate formulas, issue dates, maturity, redemption, repayment, currency of
payment and otherwise.

     The Notes are issuable only as Registered Securities in minimum denominations of $1,000 and
integral multiples of $1,000 in excess thereof. As provided in the Indenture and subject to
certain limitations therein set forth, the Notes are exchangeable for a like aggregate principal
amount of Notes as requested by the holder surrendering the same.

     Except as set forth below, this Note is not redeemable and is not entitled to the benefit of a
sinking fund or any analogous provision.

     The Notes may be redeemed, in whole at any time or in part from time to time, at the option of
the Issuer at a redemption price equal to the greater of (i) 100% of their principal amount and
(ii) an amount, as determined by the Quotation Agent, equal to the sum of the present values of the
remaining scheduled payments of principal and interest thereon (not including any portion of such
payments of interest accrued as of the date of redemption), discounted to the date of redemption on
a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at the Treasury
Rate plus 20 basis points, plus, in each case, accrued interest thereon to the date of redemption.
Notwithstanding the foregoing, installments of interest on the Notes that are due and payable on
interest payment dates falling on or prior to a redemption date will be payable on the interest
payment date to the registered holders as of the close of business on the relevant record date.
Holders of the Notes will receive notice thereof at least 30 and not more than 60 days prior to the
date fixed for redemption. Unless the Issuer defaults in payment of the redemption price, on and
after the redemption date, interest will cease to accrue on the Notes or portions thereof called
for redemption. If less than all of the Notes are to be redeemed, the Notes to be redeemed will be
selected by the Trustee by a method the Trustee deems to be fair and appropriate.

     “Comparable Treasury Issue” means the United States Treasury security selected by the
Quotation Agent as having a maturity comparable to the remaining term of the Notes that would be
utilized, at 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 the Notes.

     “Comparable Treasury Price” means, with respect to any redemption date, (i) the average of
four Reference Treasury Dealer Quotations for such redemption date, after excluding the highest and
lowest such Reference Treasury Dealer Quotations, or (ii) if the Trustee obtains fewer than four
such Reference Treasury Dealer Quotations, the average of all such quotations.

     “Quotation Agent” means the Reference Treasury Dealer appointed by the Issuer.

     “Reference Treasury Dealer” means (i) Banc of America Securities LLC (or its affiliates that
are Primary Treasury Dealers) and its successors; provided, however, that if any of the

1

 

foregoing shall cease to be a primary U.S. Government securities dealer in New York City (a
“Primary Treasury Dealer”), the Issuer shall substitute therefor another Primary Treasury Dealer;
and (ii) any other Primary Treasury Dealer selected by the Issuer.

     “Reference Treasury Dealer Quotations” means, with respect to each Reference Treasury Dealer
and any redemption date, the average, as determined by the Trustee, of the bid and asked prices for
the Comparable Treasury Issue (expressed in each case as a percentage of its principal amount)
quoted in writing to the Trustee by that Reference Treasury Dealer at 5:00 p.m., New York City
time, on the third business day preceding that redemption date.

     “Treasury Rate” means, with respect to any redemption date, the rate per annum equal to the
semi-annual equivalent yield to maturity of the Comparable Treasury Issue, assuming a price for the
Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to the
Comparable Treasury Price for such redemption date.

     If a Change of Control Triggering Event occurs, unless the Issuer has exercised its right to
redeem the Notes as described above, holders of the Notes will have the right to require the Issuer
to repurchase all or any part (equal to $1,000 or an integral multiple of $1,000 in excess thereof)
of their Notes pursuant to the offer described below (the “Change of Control Offer”). In the
Change of Control Offer, the Issuer will be required to offer payment in cash equal to 101% of the
aggregate principal amount of Notes repurchased plus accrued and unpaid interest, if any, on the
Notes repurchased, to the date of purchase (the “Change of Control Payment”). Within 30 days
following any Change of Control Triggering Event, the Issuer will be required to mail a notice to
holders of the Notes describing the transaction or transactions that constitute the Change of
Control Triggering Event and offering to repurchase the Notes on the date specified in the notice,
which date will be no earlier than 30 days and no later than 60 days from the date such notice is
mailed (the “Change of Control Payment Date”), pursuant to the procedures described herein and in
such notice. The Issuer must comply with the requirements of Rule 14e-1 under the Exchange Act and
any other Notes laws and regulations thereunder to the extent those laws and regulations are
applicable in connection with the repurchase of the Notes as a result of a Change of Control
Triggering Event. To the extent that the provisions of any securities laws or regulations conflict
with the Change of Control provisions herein, the Issuer will be required to comply with the
applicable securities laws and regulations and will not be deemed to have breached its obligations
under the Change of Control provisions herein by virtue of such conflicts.

     On the Change of Control Payment Date, the Issuer will be required, to the extent lawful, to
(i) accept for payment all Notes or portions of Notes properly tendered pursuant to the Change of
Control Offer; (ii) deposit with the paying agent an amount equal to the Change of Control Payment
in respect of all Notes or portions of Notes properly tendered; and (iii) deliver or cause to be
delivered to the Trustee the Notes properly accepted together with an Officer’s Certificate stating
the aggregate principal amount of Notes or portions of Notes being purchased.

     “Below Investment Grade Rating Event” means the Notes are rated below an Investment Grade
Rating by each of the Rating Agencies (as defined below) on any date from the date of the public
notice of an arrangement that could result in a Change of Control until the end of the 60-day
period following public notice of the occurrence of the Change of Control (which 60-day period
shall be extended so long as the rating of the Notes is under publicly announced consideration for
possible downgrade by any of the Rating Agencies).

     “Change of Control” means the occurrence of any of the following: (1) the direct or indirect
sale, transfer, conveyance or other disposition (other than by way of merger or consolidation), in
one or a series of related transactions, of all or substantially all of the properties or assets of
the Issuer

2

 

and its Subsidiaries taken as a whole to any Person other than the Issuer or one of its
Subsidiaries; (2) the consummation of any transaction (including, without limitation, any merger or
consolidation) the result of which is that any Person becomes the beneficial owner, directly or
indirectly, of more than 50% of the then outstanding number of shares of the Issuer’s voting stock;
or (3) the first day on which a majority of the members of the Issuer’s Board of Directors are not
Continuing Directors. Notwithstanding the foregoing, a transaction will not be deemed to be
involve a Change of Control if (i) the Issuer becomes a wholly owned subsidiary of a holding
company and (ii) the holders of the voting stock of such holding company immediately following that
transaction are substantially the same as the holders of our voting stock immediately prior to that
transaction.

     “Change of Control Triggering Event” means the occurrence of both a Change of Control and a
Below Investment Grade Rating Event.

     “Continuing Directors” means, as of any date of determination, any member of the Board of
Directors of the Issuer who (1) was a member of such Board of Directors on the date of original
issue of this Security; or (2) was nominated for election or elected to such Board of Directors
with the approval of a majority of the Continuing Directors who were members of such Board of
Directors at the time of such nomination or election (either by a specific vote or by approval of
the Issuer’s proxy statement in which such member was named as a nominee for election as a
director, without objection to such nomination).

     “Fitch” means Fitch Ratings.

     “Investment Grade Rating” means a rating equal to or higher than BBB- (or the equivalent) by
Fitch, Baa3 (or the equivalent) by Moody’s and BBB- (or the equivalent) by S&P.

     “Moody’s” means Moody’s Investors Service, Inc.

     “Person” has the meaning set forth in the Indenture and includes a “person” as used in Section
13(d)(3) of the Exchange Act.

     “Rating Agencies” means (1) each of Fitch, Moody’s and S&P; and (2) if any of Fitch, Moody’s
or S&P ceases to rate the notes or fails to make a rating of the notes publicly available for
reasons outside of our control, a “nationally recognized statistical rating organization” within
the meaning of Rule 15c3-1(c)(2)(vi)(F) under the Exchange Act, selected by the Issuer (as
certified by a Board Resolution) as a replacement agency for Fitch, Moody’s or S&P, or all of them,
as the case may be.

     “S&P” means Standard & Poor’s Ratings Services, a division of The McGraw-Hill Companies, Inc.

     If an Event of Default with respect to the Notes shall occur and be continuing, the principal
of all the Notes may be declared due and payable in the manner and with the effect provided in the
Indenture.

     The Indenture contains provisions permitting the Issuer and the Trustee, with the consent of
the holders of not less than a majority in aggregate principal amount of the Senior Securities or
Subordinated Securities, as the case may be, of all series issued under such Indenture then
outstanding and affected (each voting as one class), to add any provisions to, or change in any
manner, eliminate or waive any of the provisions of, such Indenture or modify in any manner the
rights of the holders of the Securities of each series or Coupons so affected; provided that the
Issuer and the Trustee may not,

3

 

without the consent of the holder of each Outstanding Security affected thereby, (i) extend
the final maturity of the principal of any Security or reduce the principal amount thereof or
premium thereon, if any, or reduce the rate or extend the time of payment of interest thereon, or
reduce any amount payable on redemption thereof or change the currency in which the principal
thereof (other than as otherwise may be provided with respect to such series), premium, if any, or
interest thereon is payable or reduce the amount of the principal of any Original Issue Discount
Security that is payable upon acceleration or provable in bankruptcy, or in the case of
Subordinated Securities of any series, modify any of the subordination provisions or the definition
of “Senior Indebtedness” relating to such series in a manner adverse to the holders of such
Subordinated Securities, or alter certain provisions of the Indenture relating to Securities not
denominated in Dollars or the Judgment Currency of such Securities or impair or affect the right of
any Securityholder to institute suit for the enforcement of any payment thereof when due or, if the
Securities provide therefor, any right of repayment at the option of the Securityholder or (ii)
reduce the aforesaid percentage in principal amount of Securities of any series issued under the
Indenture, the consent of the holders of which is required for any such modification. It is also
provided in the Indenture that, with respect to certain defaults or Events of Default regarding the
Securities of any series, the holders of a majority in aggregate principal amount Outstanding of
the Securities of each such series, each such series voting as a separate class (or, of all
Securities, as the case may be voting as a single class) may under certain circumstances waive all
defaults with respect to each such series (or with respect to all the Securities, as the case may
be) and rescind and annul a declaration of default and its consequences, but no such waiver or
rescission and annulment shall extend to or affect any subsequent default or shall impair any right
consequent thereto. The preceding sentence shall not, however, apply to a default in the payment
of the principal of or interest on any of the Securities.

     No reference herein to the Indenture and no provision of this Note or of the Indenture shall
alter or impair the obligation of the Issuer, which is absolute and unconditional, to pay the
principal of and interest on this Note at the time, place and rate, and in the coin or currency,
herein prescribed.

     As provided in the Indenture and subject to certain limitations therein set forth, the
transfer of this Note may be registered on the registry books of the Issuer, upon surrender of this
Note for registration of transfer at the office or agency of the Issuer maintained by the Issuer
for such purpose in the Borough of Manhattan, The City of New York, duly endorsed by, or
accompanied by a written instrument of transfer in form satisfactory to the Issuer and the Trustee
duly executed by, the holder hereof or by its attorney duly authorized in writing, and thereupon
one or more new Notes of authorized denominations and for the same aggregate principal amount, will
be issued to the designated transferee or transferees.

     No service charge shall be made for any such registration of transfer or exchange, but the
Issuer may require payment of a sum sufficient to cover any tax or other governmental charge that
may be imposed in connection therewith.

     Prior to due presentment of this Note for registration of transfer, the Issuer, the Trustee
and any agent of the Issuer or the Trustee may treat the person in whose name this Note is
registered as the owner hereof for all purposes, whether or not this Note be overdue, and neither
the Issuer, the Trustee nor any such agent shall be affected by notice to the contrary.

     THIS NOTE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW
YORK, INCLUDING, WITHOUT LIMITATION, SECTION 5-1401 OF THE NEW YORK GENERAL OBLIGATIONS LAW.

4

 

[FORM OF SCHEDULE FOR ENDORSEMENTS ON REGISTERED

GLOBAL SECURITIES TO REFLECT CHANGES IN PRINCIPAL AMOUNT]

Schedule A

Changes to Principal Amount of Registered Global Securities

	 	 	 	 	 	 	 
	 	 	Principal Amount	 	 	 	 
	 	 	of Notes	 	 	 	 
	 	 	by which this Registered	 	 	 	 
	 	 	Global Security is to be	 	Remaining Principal	 	 
	 	 	Reduced or Increased,	 	Amount of this	 	 
	 	 	and Reason for	 	Registered	 	 
	Date	 	Reduction or Increase	 	Global Security	 	Notation Made By
	 

	 	 	 	 	 	 

5exv10w1

 

EXHIBIT 10.1

Dated

STONEPATH HOLDINGS (HONG KONG) LIMITED

and

THE PERSONS NAMED IN SCHEDULE 1

 

DEBT RESTRUCTURING AGREEMENT

 

41st Floor

Edinburgh Tower

The Landmark

15 Queen’s Road Central

Hong Kong

Tel: (852) 2585 0888

Fax: (852) 2585 0800

 

 

Contents

	 	 	 	 	 	 	 
	CLAUSE	 	 	 	PAGE	 
	1.
	 	INTERPRETATION	 	 	1	 
	2.
	 	ISSUE OF THE NOTES	 	 	3	 
	3.
	 	WARRANTIES	 	 	4	 
	4.
	 	COVENANTS UP TO COMPLETION	 	 	5	 
	5.
	 	COMPLETION	 	 	5	 
	6.
	 	POST-COMPLETION UNDERTAKING	 	 	6	 
	7.
	 	ANNOUNCEMENTS	 	 	6	 
	8.
	 	GENERAL PROVISIONS	 	 	6	 
	9.
	 	NOTICES	 	 	7	 
	10.
	 	COSTS AND EXPENSES	 	 	8	 
	11.
	 	GOVERNING LAW AND JURISDICTION	 	 	8	 
	12.
	 	PROCESS AGENT	 	 	8	 

	 	 	 	 	 
	Schedule 1 The Subscribers

	 	 	10	 
	Schedule 2 Part A Information about the Company

	 	 	11	 
	Schedule 2 Part B Information about the Subsidiaries

	 	 	12	 
	Schedule 3 Group Structure

	 	 	26	 
	Schedule 4 The Warranties

	 	 	27	 
	Schedule 5 Instrument

	 	 	31	 
	Schedule 6 Form of Deed of Release

	 	 	32	 
	Schedule 7 List of Deliverables

	 	 	33	 
	Schedule 8 Schedule of Disclosures

	 	 	37	 

 

 

THIS AGREEMENT is made on            2006

BETWEEN:-

	(1)	 	STONEPATH HOLDINGS (HONG KONG) LIMITED, a company incorporated in Hong Kong and having its
registered office at Unit 2602, 26/F, Miramar Tower, 132 Nathan Road, Tsimshatsui, Kowloon,
Hong Kong (the “Company”); and
	 
	(2)	 	THE PERSONS named in Schedule 1 (together the “Subscribers”).

WHEREAS:-

	(A)	 	As at the date of this Agreement, the Company is indebted to the Subscribers for the
outstanding amounts in column (IV) of Schedule 1 set opposite their respective names
in column (I) of Schedule 1 (the “Relevant Indebtedness”) in the aggregate amount of
US$7,030,000.
	 
	(B)	 	The Subscribers wish to convert the Relevant Indebtedness into Notes subject to the terms and
conditions of this Agreement.

NOW IT IS HEREBY AGREED AS FOLLOWS:-

	1.	 	INTERPRETATION
	 
	1.1	 	In this Agreement, unless the context otherwise requires, the following expressions shall
have the following meanings:-

	 	 	 
	Expression	 	Meaning
	“Affiliates”

	 	in relation to a person (or group of persons), any
other person which directly or indirectly
controls, is controlled by, or is under common
control with such person (or group of persons);
	 
	 	 
	“Agreed Form”

	 	in relation to any document, the form of that
document which has been initialled for the purpose
of identification by the Company and the Security
Agent (on behalf of the Subscribers);
	 
	 	 
	“Business”

	 	logistics services and related businesses;
	 
	 	 
	“Business Day”

	 	any day (other than a Saturday or Sunday or a day
on which a tropical cyclone warning signal no.8 or
above or a black rainstorm warning signal is
hoisted in Hong Kong at any time between 9:00 a.m.
and 5:00 p.m.) on which banks in Hong Kong are
generally open for business;
	 
	 	 
	“Certificates”

	 	the certificates to be issued in respect of the
Notes substantially in the form set out in
Schedule A to the Instrument;

1

 

	 	 	 
	Expression	 	Meaning
	“Completion”

	 	completion of the transactions contemplated herein
pursuant to Clause 5;
	 
	 	 
	“Conditions”

	 	the terms and conditions as set out in the
Instrument to be attached to the Certificate; and
“Condition” refers to the relative numbered
paragraph of the Conditions;
	 
	 	 
	“Financial Year”

	 	a financial year for the purposes of the Companies
Ordinance (Cap. 32 of the Laws of Hong Kong);
	 
	 	 
	“Group”

	 	the Company and the Subsidiaries for the time
being and “Group Company” means any of them;
	 
	 	 
	“HKLCCU”

	 	has the meaning set out in
Schedule 1;
	 
	 	 
	“Hong Kong”

	 	the Hong Kong Special Administrative Region of the
People’s Republic of China;
	 
	 	 
	“Instrument”

	 	the instrument to be executed by the Company
constituting the Notes in the form set out in
Schedule 5;
	 
	 	 
	“Listing Rules”

	 	the Rules Governing the Listing of Securities on
The Stock Exchange of Hong Kong Limited;
	 
	 	 
	“Noteholder(s)”

	 	holder(s) of the Note(s) for the time being;
	 
	 	 
	“Notes”

	 	the series of secured notes due on 30 June 2008 to
be issued in denomination of US$10,000 each by the
Company as evidenced by the Certificates pursuant
to the terms of the Instrument;
	 
	 	 
	“Release”

	 	in relation to each Relevant Indebtedness, the
deed of release with respect to such Relevant
Indebtedness, in the form set out in Schedule 6,
to be executed by the relevant Subscriber in
favour of the Company and delivered by such
Subscriber to the Company at Completion;
	 
	 	 
	“SBI”

	 	has the meaning set out in
Schedule 1;
	 
	 	 
	“Security Agent”

	 	SBI Brightline LLC, in its capacity as security
agent on behalf of the Noteholders in respect of
the Security Documents;
	 
	 	 
	“Security Documents”

	 	has the meaning set out in the Instrument;
	 
	 	 
	“Subsidiaries”

	 	in relation to the Company, its subsidiaries (as
the term is defined in the Companies Ordinance
(Cap. 32 of the Laws of Hong Kong)) including

2

 

	 	 	 
	Expression	 	Meaning
	 

	 	the
entities whose basic details are set out in Part B
of Schedule 2;
	 
	 	 
	“Tax”

	 	includes all forms of tax, levy, duty, charge,
impost, fee, deduction or withholding of any
nature now or hereafter imposed, levied,
collected, withheld or assessed by any taxing or
other authority and includes any interest,
additional tax, penalty or other charge payable or
claimed in respect thereof;
	 
	 	 
	“Transaction Documents”

	 	has the meaning ascribed thereto in Clause 10;
	 
	 	 
	“US$”

	 	United States dollars, the lawful currency of the
United States of America; and
	 
	 	 
	“Warranties”

	 	the representations and warranties set out in
Schedule 4 given pursuant to Clause 3 and
“Warranty” shall be construed accordingly.

	1.2	 	Except as otherwise expressly provided, expressions defined in the Companies Ordinance (Cap.
32 of the Laws of Hong Kong) as at the date hereof have the same meanings when used in this
Agreement.
	 
	1.3	 	A reference to a statute or statutory provision includes a reference:-

	 	(a)	 	to that statute or provision as from time to time modified or re-enacted;
	 
	 	(b)	 	to any repealed statute or statutory provision which it re-enacts (with or
without modification); and
	 
	 	(c)	 	to any orders, regulations, instruments or other subordinate legislation made
under the relevant statute or statutory provision.

	1.4	 	Unless the context otherwise requires:-

	 	(a)	 	words in the singular include the plural, and vice versa;
	 
	 	(b)	 	words importing any gender include all genders; and
	 
	 	(c)	 	a reference to a person includes a reference to a body corporate and to an
unincorporated body of persons, and vice versa.

	1.5	 	A reference to a Recital, Clause, Sub-clause or Schedule is to a recital, clause and
sub-clause of, or schedule to, this Agreement respectively.
	 
	1.6	 	The headings are for convenience only and do not affect interpretation of this Agreement.
	 
	1.7	 	The obligations of the Subscribers shall be several and not joint.
	 
	2.	 	ISSUE OF THE NOTES
	 
	2.1	 	It is acknowledged and agreed that as at the date hereof, the Company is indebted to

3

 

	 	 	the
Subscribers in respect of the Relevant Indebtedness as set out in Schedule 1.
	 
	2.2	 	Subject to the terms of this Agreement, the Company shall at Completion issue to each of the
Subscribers the number of Notes for the aggregate amount in column (III) of Schedule 1
set opposite its name in column (I) of Schedule 1 and in consideration of such issue,
each of the Subscribers hereby irrevocably releases, forever discharges and agrees not to make
any past, present or future claims, demands, alleged obligations or liabilities or causes of
action of whatsoever nature absolutely arising out of, resulting from or in connection with
the Relevant Indebtedness and shall cancel the amount of the Relevant Indebtedness or any
documents or agreements relating thereto (save for the charge created by the Company pursuant
to an amended and restated security deed dated 10 August 2006) absolutely owing from the
Company to the Subscribers as at the date of this Agreement referred to in column (IV) of
Schedule 1 set opposite their respective names in column (I) of Schedule 1.
	 
	2.3	 	The Company shall, within seven (7) Business Days following the written demand by the
Subscribers specifying the amount of the costs and expenses to be reimbursed by the Company
pursuant to Clause 10, issue additional Notes in an amount equivalent to such costs and
expenses to the Subscribers.
	 
	2.4	 	Each of the Notes shall be issued at its full face value and on the terms and subject to the
Conditions.
	 
	3.	 	WARRANTIES
	 
	3.1	 	The Company represents and warrants to the Subscribers that each of the Warranties is true
and accurate in all material respects and not misleading in any material respect except as
specifically and fairly disclosed in Schedule 8. The Warranties are given on and as
at the date hereof with respect to the facts and circumstances subsisting at the date hereof.
In addition, the Warranties shall be deemed to be repeated on and as at the date of Completion
by reference to the facts and circumstances subsisting as at that date and on the basis that
any reference in the Warranties to the date hereof is substituted by a reference to that date.
	 
	3.2	 	The Company undertakes that it shall procure that no act shall be performed or omission
allowed by any Group Company at any time up to and including the time of Completion which
would result in any of the Warranties being untrue or breached or misleading in any material
respect during such interval.
	 
	3.3	 	The Company agrees and acknowledges that the Subscribers are entering into this Agreement in
reliance upon representations in the terms of the Warranties which represent an inducement to
the Subscribers to enter into this Agreement.
	 
	3.4	 	The Company undertakes to disclose in writing to the Subscribers anything which is or may
constitute a material breach of or be inconsistent with any of the Warranties in any material
respect immediately when it comes to its notice before Completion.
	 
	3.5	 	Each of the Warranties shall be construed as a separate and independent warranty and (except
where expressly provided to the contrary) shall not be limited or restricted by reference to
or inference from the terms of any other Warranty or any other term of this Agreement.
	 
	3.6	 	The Company will indemnify the Subscribers from and against any loss, liability, cost, claim,
action, demand or expense (including, but not limited to, all reasonable costs,

4

 

	 	 	charges and
expenses properly paid or incurred in settling, disputing or defending any of the foregoing)
which the Subscribers would incur or which would be made against the Subscribers arising out
of or in relation to or in connection with the enforcement by the Subscribers of any of the
provisions of this Agreement as a result of any breach by the Company or any other Group
Company where applicable or any Warranties, or any other undertaking or obligation contained
in this Agreement.
	 
	4.	 	COVENANTS UP TO COMPLETION
	 
	4.1	 	Save as required by this Agreement, the Company shall procure that no Group Company shall
prior to Completion and without the prior written consent of the Subscribers:-

	 	(a)	 	grant any option or right of pre-emption over any shares or any securities
convertible or exchangeable into shares; or
	 
	 	(b)	 	create, issue, purchase or, to the extent permitted by law, redeem any class
of share or loan capital; or
	 
	 	(c)	 	in any way depart from the ordinary course of its day-to-day business or
enter into any agreement, transaction or commitment otherwise than in its ordinary
course of business and/or otherwise than on an arm’s length basis; or
	 
	 	(d)	 	pass any resolution in general meeting or change its memorandum and articles
of association other than any matters or amendments (as the case may be) that do not
affect directly or indirectly the rights of the Subscribers under this Agreement or
the transactions contemplated herein; or
	 
	 	(e)	 	agree, conditionally or otherwise, to do any of the matters referred to in
Sub-clause 4.1 (a) to (d); or
	 
	 	(f)	 	do or omit to do or cause or allow to be done or omitted to be done any act
or thing which would result in a breach of the obligations of the Company under
Sub-clause 4.1.

	4.2	 	The Company will immediately notify the Subscribers in writing of any matter or thing which
arises or becomes known to it before Completion which:-

	 	(a)	 	constitutes (or would after the lapse of time constitute) a misrepresentation
or a material breach of any of the Warranties in any material respect or the
undertakings or other provisions set out in this Agreement; or
	 
	 	(b)	 	has a material adverse effect on the business or financial condition of the
Group as a whole (as presently carried on).

	5.	 	 COMPLETION
	 
	 	 	Subject to the terms of this Agreement, Completion shall take place
immediately after the signing of this Agreement (or at such other
time, date and/or place as the parties hereto may agree in writing)
when all, but not part only, of the following transactions shall be
effected:-

	 	(a)	 	the Company shall duly execute under seal the Instrument;

5

 

	 	(b)	 	the Company shall issue under seal and deliver to the Security Agent
certificates evidencing title to the Notes in the names and numbers set out in
Schedule 1 in accordance with Sub-clause 2.2;
	 
	 	(c)	 	the Subscribers shall execute and deliver to the Company the Releases in
respect of the Relevant Indebtedness; and
	 
	 	(d)	 	the Company shall deliver to the Security Agent the documents referred to in
column (2) of Schedule 7 to be provided by the Company at Completion duly
executed by the parties thereto (other than the Security Agent).

	6.	 	POST-COMPLETION UNDERTAKING
	 
	 	 	The Company hereby irrevocably undertakes:

	 	(a)	 	as soon as practicable and in any event within 20 Business Days after
Completion, to use its best efforts to deliver to the Security Agent the documents
referred to in column (3) of Schedule 7 to be provided by the Company by using its
best endeavours after Completion;
	 
	 	(b)	 	as soon as practicable and in any event within 20 Business Days after
Completion, to use its best efforts to procure that the Company has appointed a
majority of the members of the board of directors for the time being of all the
Company’s Subsidiaries and to deliver to the Security Agent (i) satisfactory evidence
of such appointment, (ii) undated resignation letter of each of the nominee for the
time being appointed by the Company to the board of directors of its Subsidiaries and
undated board resolutions of its Subsidiaries on terms reasonably satisfactory to the
Security Agent.
	 
	 	(c)	 	provide not less than three (3) quotations or proposals from independent
financial institutions of the credit insurances referred to in Condition 11(L) of the
Notes within twenty (20) Business Days from the date of this Agreement.

	7.	 	ANNOUNCEMENTS
	 
	 	 	Subject to compliance with the Listing Rules and any applicable statutory or regulatory
rules and other than such disclosure as may be required by law, The Stock Exchange of Hong
Kong Limited or other competent authority or for the performance of any obligations under
this Agreement or in relation to information coming into the public domain otherwise than
by breach on the part of the disclosing party of its confidentiality obligations under this
Agreement, none of the parties shall, directly or indirectly, make any announcement or
disclose any information in relation to this Agreement or any matter in connection herewith
without the prior written consent of
the other parties (which consent shall not be unreasonably withheld or delayed).
	 
	8.	 	GENERAL PROVISIONS
	 
	8.1	 	Each of the parties undertakes to the others to execute or procure to be executed all such
documents and to do or procure to be done all such other acts and things within its power as
may be reasonable and necessary to give effect to the transactions contemplated by this
Agreement.
	 
	8.2	 	This Agreement shall be binding on and enure for the benefit of the successors and permitted
assigns of each of the parties but, except as expressly provided herein, no

6

 

	 	 	party shall assign
or transfer all or any of its rights or obligations hereunder without the prior written
consent of the other parties.
	 
	8.3	 	The exercise of or failure to exercise any right or remedy in respect of any breach of this
Agreement shall not, save as provided herein, constitute a waiver by such party of any other
right or remedy it may have in respect of that breach.
	 
	8.4	 	Any provision of this Agreement which is capable of being performed after Completion but
which has not been performed at or before Completion and all Warranties and other undertakings
contained in or entered into pursuant to this Agreement shall remain in full force and effect
notwithstanding Completion.
	 
	8.5	 	This Agreement (together with any documents referred to herein) constitutes the entire
agreement between the parties with respect to its subject matter (and no party has relied on
any representation or warranty made by any other party which is not contained in this
Agreement) and no variation of this Agreement shall be effective unless made in writing and
signed by all of the parties.
	 
	8.6	 	This Agreement supersedes all and any previous agreements, arrangements or understandings
between the parties relating to the matters referred to in this Agreement and all such
previous agreements, understandings or arrangements (if any) shall cease and determine with
effect from the date hereof.
	 
	8.7	 	If at any time any provision of this Agreement is or becomes illegal, void or unenforceable
in any respect, such provision shall be severed from this Agreement and the remaining
provisions hereof shall in no way be affected or impaired thereby.
	 
	8.8	 	Time shall be of the essence of this Agreement.
	 
	8.9	 	This Agreement may be executed in any number of counterparts or duplicates each of which
shall be an original but such counterparts or duplicates shall together constitute one and the
same instrument. A party may execute this Agreement on a facsimile copy counterpart and
deliver its signature and seal by facsimile.
	 
	9.	 	NOTICES
	 
	9.1	 	Any notice or other communication given or made under this Agreement shall be in writing.
	 
	9.2	 	Any such notice or other communication shall be addressed as provided in this Clause and, if
so addressed, shall be deemed to have been duly given or made as follows:-

	 	(a)	 	if sent by personal delivery, upon delivery at the address of the relevant
party;
	 
	 	(b)	 	if sent by registered post, two Business Days (7 Business Days if posted by
airmail from or to an overseas address) after the date of posting; and
	 
	 	(c)	 	if sent by facsimile, upon despatch to the facsimile number of the recipient,
with the production of a transmission report by the machine from which the facsimile
was sent which indicates that the facsimile was sent in its entirety to the facsimile
number of the recipient.

	9.3	 	The relevant address and facsimile number of each party for the purposes of this Agreement
are as follows:-

7

 

	 	 	 	 	 	 	 
	Name of party	 	Address	 	Facsimile No.	 	Attention
	Stonepath Holdings

(Hong Kong) Limited

	 	Unit 2602, 26/F

Miramar Tower

132 Nathan Road

Tsimshatsui,
Kowloon
 Hong Kong
	 	+852 2377 0909
	 	Isabel Tam
	 
	 	 	 	 	 	 
	Subscribers

	 	Please refer to
Schedule 1	 	 	 	 

	9.4	 	A party may notify the other parties to this Agreement of a change to its name, address or
facsimile number for the purpose of Sub-clause 9.3 PROVIDED THAT such notification
shall only be effective on:-

	 	(a)	 	if Sub-clause (b) does not apply, the date specified in the
notification as the date on which the change is to take place; or
	 
	 	(b)	 	if no date is specified or the date specified is less than five Business Days
after the date on which the notice is given, the date falling five Business Days after
notice of any such change has been given.

	10.	 	COSTS AND EXPENSES
	 
	 	 	The Company will pay all costs and expenses incurred by it in relation
to the preparation, negotiation and execution of this Agreement, the
Security Documents and any other document referred to therein (the
“Transaction Documents”). The Company shall reimburse the Subscribers
for all costs and expenses incurred by them or on its behalf by the
Security Agent in connection with the preparation, negotiation and
execution of the Transaction Documents (including but not limited to
all filing and search fees and all legal expenses incurred by the
Subscribers, and the consummation of the transactions contemplated
thereby) by way of the issue of the additional Notes referred to in
Sub-clause 2.3.
	 
	11.	 	GOVERNING LAW AND JURISDICTION
	 
	 	 	This Agreement shall be governed by and construed in accordance with
the laws of Hong Kong and each party hereby submits to the
non-exclusive jurisdiction of the
courts of Hong Kong.
	 
	12.	 	PROCESS AGENT
	 
	 	 	Each of the following parties hereby irrevocably appoints the person set opposite its name
below as its agent to receive on its behalf service of proceedings issued out of the courts
of Hong Kong in any action or proceedings arising out of or in connection with this
Agreement, the Notes, the Conditions and/or the Certificates. In the event of such agent
ceasing to act, the relevant parties shall immediately appoint another person as its agent
for such purpose and give notice in writing of such appointment to all the other parties:

8

 

	 	 	 
	Parties	 	Names & addresses of agents
	SBI Brightline, LLC

	 	Bedrock China Futures, Limited.
	 

	 	Room 4301 – 09,Jardine House,
	 

	 	One Connaught Place, Central,
	 

	 	Hong Kong
	 
	 	 
	Hong Kong League Central Credit Union

	 	Bedrock China Futures, Limited.
	 

	 	Room 4301 – 09,Jardine House,
	 

	 	One Connaught Place, Central,
	 

	 	Hong Kong

     AS WITNESS the parties hereto have duly signed this Agreement the day and year first above
written.

9

 

Schedule 1

The Subscribers

	 	 	 	 	 	 	 
	(I)	 	(II)	 	(III)	 	(IV)
	Name	 	Address / Fax / Attention	 	Principal Amount of Notes	 	Relevant Indebtedness
	SBI Brightline, LLC

(“SBI”)

(a company incorporated
in Delaware, the United
States of America)

	 	c/o Bedrock China
Futures, Limited.

Room 4301 – 09, 

Jardine House,

One Connaught Place,

Central, Hong Kong 

Fax : 2533 3781

Attention: Mr. Shelly 

Singhal 

CEO
	 	US$2,500,000
	 	US$2,500,000 and
which remains unpaid
to SBI on the date
hereof under the
Amended and Restated
Term Credit
Agreement dated June
22, 2006 between the
Company and SBI
	 
	 	 	 	 	 	 
	Hong Kong League
Central
 Credit Union

(“HKLCCU”)

a Hong Kong credit union

	 	c/o Bedrock China
Futures, Limited.

Room 4301 – 09, 

Jardine House,

One Connaught Place,

Central, Hong Kong 

Fax : 2533 3781

Attention: Mr. Shelly 

Singhal 

CEO
	 	US$4,530,000
	 	US$4,530,000 and
which remains unpaid
to HKLCCU on the
date hereof pursuant
to the redemption of
the preferred shares
issued by the
Company to HKLCCU
prior to the date
hereof

10

 

Schedule 2 

Part A

Information about the Company

Stonepath Holdings (Hong Kong) Limited

	 	 	 
	Date of incorporation:
	 	October 2, 2002
	 
	 	 
	Place of incorporation:
	 	Hong Kong
	 
	 	 
	Registered Number:
	 	816242
	 
	 	 
	Address of registered office:
	 	Unit 2602, 26/F., Miramar Tower
	 
	 	132 Nathan Road
	 
	 	Tsimshatsui, Kowloon
	 
	 	Hong Kong
	 
	 	 
	Authorised share capital:
	 	HK$10,000
	 
	 	 
	Issued share capital:
	 	HK$100
	 
	 	 
	Shareholders:
	 	Stonepath Group, Inc.  (100%)
	 
	 	 
	Directors:
	 	PELINO Dennis Lindsay
	 
	 	TOTAH Jason Fayez  (will resign)
	 
	 	AROVAS Robert
	 
	 	 
	Financial Year End:
	 	November 30
	 
	 	 
	Auditors:
	 	Grant Thornton
	 
	 	 
	Main business:
	 	Investment holding and provision of management services to its subsidiaries
	 
	 	 
	Place of business:
	 	Hong Kong

11

 

Schedule 2

Part B

Information about the Subsidiaries

(1) Stonepath Freight Express (Hong Kong) Limited

	 	 	 
	Date of incorporation:
	 	April 28, 2005
	 
	 	 
	Place of incorporation:
	 	Hong Kong
	 
	 	 
	Registered Number:
	 	967131
	 
	 	 
	Address of registered office:
	 	Unit 2602, 26/F., Miramar Tower
	 
	 	132 Nathan Road
	 
	 	Tsimshatsui, Kowloon
	 
	 	Hong Kong
	 
	 	 
	Authorised share capital:
	 	HK$2,000,000
	 
	 	 
	Issued share capital:
	 	HK$2,000,000
	 
	 	 
	Shareholders:
	 	Stonepath Holdings (Hong Kong)
Limited (2,000,000 shares)
	 
	 	 
	Directors:
	 	TOTAH Jason Fayez (will resign)
	 
	 	ROBERT Arovas
	 
	 	 
	Financial Year End:
	 	November 30
	 
	 	 
	Auditors:
	 	Grant Thornton
	 
	 	 
	Main business:
	 	Air Freight Forwarding
	 
	 	 
	Place of business:
	 	Hong Kong

12

 

(2) Stonepath Logistics (Hong Kong) Limited

	 	 	 
	Date of incorporation:
	 	November 18, 2002
	 
	 	 
	Place of incorporation:
	 	Hong Kong
	 
	 	 
	Registered Number:
	 	822035
	 
	 	 
	Address of registered office:
	 	Unit 2602, 26/F., Miramar Tower
	 
	 	132 Nathan Road
	 
	 	Tsimshatsui, Kowloon
	 
	 	Hong Kong
	 
	 	 
	Authorised share capital:
	 	HK$10,000
	 
	 	 
	Issued share capital:
	 	HK$200
	 
	 	 
	Shareholders:
	 	Stonepath Holdings (Hong Kong) Limited (140 shares)
	 
	 	East Ocean Logistics Limited (60 shares)
	 
	 	 
	Directors:
	 	TOTAH Jason Fayez  (will resign)
	 
	 	KOO Yiu Wah
	 
	 	AROVAS Robert
	 
	 	 
	Financial Year End:
	 	November 30
	 
	 	 
	Auditors:
	 	Grant Thornton
	 
	 	 
	Main business:
	 	Freight Forwarding
	 
	 	 
	Place of business:
	 	Hong Kong

13

 

(3) Stonepath Logistics (Asia Pacific) Pte Ltd.

	 	 	 
	Date of incorporation:
	 	September 27, 2004
	 
	 	 
	Place of incorporation:
	 	Singapore
	 
	 	 
	Registered Number:
	 	200412348E
	 
	 	 
	Address of registered office:
	 	8 Shenton Way, #27-01 Temasek Tower
	 
	 	Singapore 068811
	 
	 	 
	Authorised share capital:
	 	S$100,000,000
	 
	 	 
	Issued share capital:
	 	S$1
	 
	 	 
	Shareholders:
	 	Stonepath Holdings (Hong Kong) Limited (1 share)
	 
	 	 
	Directors:
	 	TOTAH Jason Fayez
	 
	 	LAW Teck Wah
	 
	 	 
	Financial Year End:
	 	November 30
	 
	 	 
	Auditors:
	 	Not yet appointed , dormant company
	 
	 	 
	Main business:
	 	Holding company
	 
	 	 
	Place of business:
	 	Singapore

14

 

(4) G Link Express Freight (Asia Pacific) Pte Ltd.

	 	 	 
	Date of incorporation:
	 	September 28, 2004
	 
	 	 
	Place of incorporation:
	 	Singapore
	 
	 	 
	Registered Number:
	 	200412366H
	 
	 	 
	Address of registered office:
	 	8 Shenton Way #27-01
	 
	 	Temasek Tower
	 
	 	Singapore
	 
	 	 
	Authorised share capital:
	 	S$10,000,000
	 
	 	 
	Issued share capital:
	 	$1
	 
	 	 
	Shareholders:
	 	Stonepath Logistics (Asia Pacific) Pte. Ltd. (1 share)
	 
	 	 
	Directors:
	 	TOTAH Jason Fayez
	 
	 	LAW Teck Wah
	 
	 	AROVAS Robert
	 
	 	 
	Financial Year End:
	 	November 30
	 
	 	 
	Auditors:
	 	Grant Thornton
	 
	 	 
	Main business:
	 	Freight Forwarding
	 
	 	 
	Place of business:
	 	Singapore

15

 

(5) G Link Express Logistics (Singapore) Pte. Ltd.

	 	 	 
	Date of incorporation:
	 	July 29, 2003
	 
	 	 
	Place of incorporation:
	 	Singapore
	 
	 	 
	Registered Number:
	 	200307186E
	 
	 	 
	Address of registered office:
	 	8 Shenton Way #27-01
	 
	 	Temasek Tower
	 
	 	Singapore
	 
	 	 
	Authorised share capital:
	 	S$5,000,000
	 
	 	 
	Issued share capital:
	 	S$3,000,000
	 
	 	 
	Shareholders:
	 	Stonepath Holdings (Hong Kong) Limited (210,000 shares )
	 
	 	G Link Express Logistics (Singapore) Pte. Ltd.(90,000 shares)
	 
	 	 
	Directors:
	 	TAN Kheng He Peter
	 
	 	LIM Hak Leng
	 
	 	CHAN Tuck Hoe Mark
	 
	 	 
	Financial Year End:
	 	November 30
	 
	 	 
	Auditors:
	 	Grant Thornton
	 
	 	 
	Main business:
	 	Freight forwarding
	 
	 	 
	Place of business:
	 	Singapore

16

 

(6) G Link Express Logistics (Cambodia) Limited

	 	 	 
	Date of incorporation:
	 	March 24, 2004
	 
	 	 
	Place of incorporation:
	 	Cambodia
	 
	 	 
	Registered Number:
	 	MOC No 447 PN.NTK
	 
	 	 
	Address of registered office:
	 	No. 4 Street 242 Sangkat Boeng Prolit
	 
	 	Khan 7 Makara
	 
	 	Phnom Penh
	 
	 	Cambodia
	 
	 	 
	Authorised share capital:
	 	20,000,000 Riel
	 
	 	 
	Issued share capital:
	 	20,000,000 Riel
	 
	 	 
	Shareholders:
	 	Stonepath Holdings (Hong Kong) Limited (100%)
	 
	 	(Note: 30% minority shares not yet allotted)
	 
	 	 
	Directors:
	 	SOON Chin Tee Mike
	 
	 	LIM Hak Leng Daniel
	 
	 	TAN Kheng He Peter
	 
	 	 
	Financial Year End:
	 	November 30
	 
	 	 
	Auditors:
	 	Grant Thornton
	 
	 	 
	Main business:
	 	Freight forwarding
	 
	 	 
	Place of business:
	 	Cambodia

17

 

(7) G Link Express Logistics (Penang) Sdn. Bhd

	 	 	 
	Date of incorporation:
	 	March 26, 2004
	 
	 	 
	Place of incorporation:
	 	Malaysia
	 
	 	 
	Registered Number:
	 	646892 -V
	 
	 	 
	Address of registered office:
	 	18-22-A1 Gurney Tower
	 
	 	Persiaran Gurney, 10250
	 
	 	Penang
	 
	 	Malaysia
	 
	 	 
	Authorised share capital:
	 	RM100,000
	 
	 	 
	Issued share capital:
	 	RM100,000
	 
	 	 
	Shareholders:
	 	Stonepath Holdings (Hong Kong) Limited (70,000shares)
	 
	 	YEOH Peggy    (6,000 shares)
	 
	 	CHAN Kok On  (6,000 shares)
	 
	 	LIM Hak Leng   (5,500 shares)
	 
	 	LAW Teck Wah (5,500 shares)
	 
	 	TAN Kheng He Peter (5,500 shares)
	 
	 	HIA Chun Yong  (1,500 shares)
	 
	 	 
	Directors:
	 	YEOH Peggy
	 
	 	CHAN Kok On
	 
	 	LIM Hak Leng
	 
	 	LAW Teck Wah
	 
	 	TAN Kheng He Peter
	 
	 	 
	Financial Year End:
	 	November 30
	 
	 	 
	Auditors:
	 	Yeang & Co, Chartered Accountants
	 
	 	 
	Main business:
	 	Freight forwarding
	 
	 	 
	Place of business:
	 	Penang, Malaysia

18

 

(8)  G Link Express Logistics (KL) Sdn. Bhd.

	 	 	 
	Date of incorporation:
	 	March 26, 2004
	 
	 	 
	Place of incorporation:
	 	Malaysia
	 
	 	 
	Registered Number:
	 	646891-U
	 
	 	 
	Address of registered office:
	 	18-22-A1 Gurney Tower
	 
	 	Persiaran Gurney, 10250
	 
	 	Penang
	 
	 	Malaysia
	 
	 	 
	Authorised share capital:
	 	RM100,000
	 
	 	 
	Issued share capital:
	 	RM2
	 
	 	 
	Shareholders:
	 	Stonepath Holdings (Hong Kong) Limited  (2 shares)
	 
	 	Shares to minorities not yet allotted
	 
	 	 
	Directors:
	 	YEOH Peggy
	 
	 	CHAN Kok On
	 
	 	LIM Hak Leng
	 
	 	LAW Teck Wah
	 
	 	TAN Kheng He Peter
	 
	 	 
	Financial Year End:
	 	November 30
	 
	 	 
	Auditors:
	 	Jay Julian and Company, Chartered Accountants
	 
	 	 
	Main business:
	 	Freight forwarding
	 
	 	 
	Place of business:
	 	Kuala Lumpur, Malaysia

19

 

(9) G Link Express Logistics (JB) Sdn. Bhd.

	 	 	 
	Date of incorporation:
	 	March 26, 2004
	 
	 	 
	Place of incorporation:
	 	Malaysia
	 
	 	 
	Registered Number:
	 	646890-K
	 
	 	 
	Address of registered office:
	 	18-22-A1 Gurney Tower
	 
	 	Persiaran Gurney, 10250
	 
	 	Penang
	 
	 	Malaysia
	 
	 	 
	Authorised share capital:
	 	RM100,000
	 
	 	 
	Issued share capital:
	 	RM100,000
	 
	 	 
	Shareholders:
	 	Stonepath Holdings (Hong Kong) Limited (70,000 shares)
	 
	 	CHAI Kin Heong       (6,000 shares)
	 
	 	LIM Hak Leng           (8,000 shares)
	 
	 	LAW Teck Wah         (8,000 shares)
	 
	 	TAN Kheng He Peter (8,000 shares)
	 
	 	 
	Directors:
	 	YEOH Peggy
	 
	 	CHAI Kin Heong
	 
	 	LIM Hak Leng
	 
	 	LAW Teck Wah
	 
	 	TAN Kheng He Peter
	 
	 	 
	Financial Year End:
	 	November 30
	 
	 	 
	Auditors:
	 	Yeang & Co, Chartered Accountants
	 
	 	 
	Main business:
	 	Freight forwarding
	 
	 	 
	Place of business:
	 	Johor Bahru, Malaysia

20

 

(10) Planet Logistics Express (Singapore) Pte. Ltd

	 	 	 
	Date of incorporation:
	 	December 4, 2003
	 
	 	 
	Place of incorporation:
	 	Singapore
	 
	 	 
	Registered Number:
	 	200312364D
	 
	 	 
	Address of registered office:
	 	150 Beach Road
	 
	 	#32-00 Gateway West
	 
	 	Singapore
	 
	 	 
	Authorised share capital:
	 	S$4,000,000
	 
	 	 
	Issued share capital:
	 	S$1,800,000
	 
	 	 
	Shareholders:
	 	Stonepath Holdings (Hong Kong) Limited (245,000 shares)
	 
	 	Planet Logistics Pte Ltd                              (105,000 shares)
	 
	 	 
	Directors:
	 	QUEK Kok Heng Eddy
	 
	 	TAN Bee Hoon Winnie
	 
	 	PELINO Dennis Lindsay
	 
	 	TOTAH Jason Fayez  (will resign)
	 
	 	AROVAS Robert
	 
	 	 
	Financial Year End:
	 	November 30
	 
	 	 
	Auditors:
	 	Grant Thornton
	 
	 	 
	Main business:
	 	Freight forwarding
	 
	 	 
	Place of business:
	 	Singapore

21

 

(11) Group Logistics Pte. Ltd

	 	 	 
	Date of incorporation:
	 	April 22, 2003
	 
	 	 
	Place of incorporation:
	 	Singapore
	 
	 	 
	Registered Number:
	 	200303653C
	 
	 	 
	Address of registered office:
	 	257 Selegie Road
	 
	 	#03-368 Selegie Complex
	 
	 	Singapore
	 
	 	 
	Authorised share capital:
	 	S$1,000,000
	 
	 	 
	Issued share capital:
	 	S$500,000
	 
	 	 
	Shareholders:
	 	Stonepath Holdings (Hong Kong) Limited (350,000 shares)
	 
	 	QUEK Kok Heng  Eddy  (75,000 shares)
	 
	 	KER Chuen Kiat Aaron  (37,500 shares)
	 
	 	South China Investments (37,500 shares)
	 
	 	 
	Directors:
	 	QUEK Kok Heng Eddy
	 
	 	LAW Teck Wah
	 
	 	 
	Financial Year End:
	 	November 30
	 
	 	 
	Auditors:
	 	Grant Thornton
	 
	 	 
	Main business:
	 	Freight forwarding
	 
	 	 
	Place of business:
	 	Singapore

22

 

(12) Shaanxi Sunshine Cargo Service Company Limited

	 	 	 
	Date of incorporation:
	 	October 24, 2003
	 
	 	 
	Place of incorporation:
	 	Xian, PRC
	 
	 	 
	Registered Number:
	 	6101000460
	 
	 	 
	Address of registered office:
	 	Room 501, Building C
	 
	 	Golden Leaf Homeland (Jin Ye Jia Yuan)
	 
	 	100 West Portion of 2nd Circular Road South
	 
	 	Xian
	 
	 	PRC
	 
	 	 
	Authorised share capital:
	 	RMB16,500,000
	 
	 	 
	Issued share capital:
	 	RMB16,500,000
	 
	 	 
	Shareholders:
	 	Stonepath Logistics International
Services Inc. ( in the process of changing name to Stonepath Holdings (Hong Kong) Limited            (RMB9,075,000 )
	 
	 	Shaanxi Xiangyu Logistics Company
Limited (RMB6,600,000)
	 
	 	Xian Huijie Industry and trading
Company Limited (RMB825,000)
	 
	 	 
	Legal Representative:
	 	TSAI Ye-Wei
	 
	 	 
	Financial Year End:
	 	December 31
	 
	 	 
	Auditors:
	 	Grant Thornton
	 
	 	 
	Main business:
	 	Freight forwarding
	 
	 	 
	Place of business:
	 	PRC

23

 

(13) Shaanxi Sunshine Cargo Service (Hong Kong) Company Limited

	 	 	 
	Date of incorporation:
	 	March 4, 2004
	 
	 	 
	Place of incorporation:
	 	Hong Kong
	 
	 	 
	Registered Number:
	 	886611
	 
	 	 
	Address of registered office:
	 	Unit 2602, 26/F., Miramar Tower
	 
	 	132 Nathan Road
	 
	 	Tsimshatsui, Kowloon
	 
	 	Hong Kong
	 
	 	 
	Authorised share capital:
	 	HK$10,000
	 
	 	 
	Issued share capital:
	 	HK$100
	 
	 	 
	Shareholders:
	 	Stonepath Holdings (Hong Kong) Limited  (55 shares)
	 
	 	TSAI Ye-Wei    (45shares)
	 
	 	 
	Directors:
	 	PELINO Dennis Lindsay
	 
	 	TOTAH Jason Fayez ( will resign)
	 
	 	AROVAS Robert
	 
	 	TSAI Ye-Wei
	 
	 	YANG Yi-Feng
	 
	 	 
	Financial Year End:
	 	November 30
	 
	 	 
	Auditors:
	 	Grant Thornton
	 
	 	 
	Main business:
	 	Freight forwarding
	 
	 	 
	Place of business:
	 	Hong Kong

24

 

(14) Stonepath Logistics (China) Limited

	 	 	 
	Date of incorporation:
	 	April 28, 2005
	 
	 	 
	Place of incorporation:
	 	Hong Kong
	 
	 	 
	Registered Number:
	 	967132
	 
	 	 
	Address of registered office:
	 	Unit 2602, 26/F., Miramar Tower
	 
	 	132 Nathan Road
	 
	 	Tsimshatsui, Kowloon
	 
	 	Hong Kong
	 
	 	 
	Authorised share capital:
	 	HK$10,000
	 
	 	 
	Issued share capital:
	 	HK$10,000
	 
	 	 
	Shareholders:
	 	Stonepath Holdings (Hong Kong) Limited (5,500 shares)
	 
	 	TSAI Ye-Wei  (4,500 shares)
	 
	 	 
	Directors:
	 	PELINO Dennis Lindsay
	 
	 	TOTAH Jason Fayez (will resign)
	 
	 	TSAI Ye-Wei
	 
	 	 
	Financial Year End:
	 	November 30
	 
	 	 
	Auditors:
	 	Grant Thornton
	 
	 	 
	Main business:
	 	Freight forwarding
	 
	 	 
	Place of business:
	 	Hong Kong

25

 

Schedule 3

Group Structure

26

 

Schedule 4

The Warranties

	A.	 	Business of the Group
	 
	 	 	The Group is not engaged in any business activity other than the Business. The
structure of the Group is as set out in Schedule 3.
	 
	B.	 	Capacity of the Company

	 	(i)	 	The Company has the requisite power and authority to enter
into and perform this Agreement and all the Transaction Documents to which
the Company is a party to be executed by it pursuant to this Agreement.
	 
	 	(ii)	 	This Agreement constitutes, and all the Transaction
Documents to which the Company is a party to be executed and delivered by the
Company pursuant to this Agreement will, when executed, constitute, binding
obligations of the Company in accordance with their respective terms.
	 
	 	(iii)	 	The execution and delivery of, and the performance by the
Company of its obligations under this Agreement, and all the Transaction
Documents to which the Company is a party to be executed by it pursuant to
this Agreement, will not:-

	 	(a)	 	result in a breach of any provision of the
memorandum and articles of association of the Company;
	 
	 	(b)	 	result in a breach of, or constitute a
default under, any instrument to which the Company is a party or by
which the Company is bound; or
	 
	 	(c)	 	result in a breach of any order, judgement
or decree of any court or governmental agency to which the Company is
a party or by which the Company is bound.

	C.	 	Group structure, etc.

	 	(i)	 	There is no agreement or commitment outstanding which calls
for the allotment, issue or transfer of, or accords to any person the right
to call for the allotment or issue of, any share or debentures in or
securities of the Company or any Group Company other than the Notes pursuant
to this Agreement.
	 
	 	(ii)	 	The Company does not have any interest in the capital of
any body corporate other than the Subsidiaries referred to in Schedule 2.
	 
	 	(iii)	 	The Company does not act or carry on business in
partnership with
any other person and is not a member (otherwise than through the holding
of share capital) of any body corporate or unincorporated and

27

 

	 	 	 	does not
hold any share or securities which is not fully paid up or which carries
any liability.

	D.	 	Accuracy and adequacy of information

	 	(i)	 	All information set out in this Agreement is true complete
and accurate in all material respects and is not misleading in any material
respect due to any omission or ambiguity or for any other reason.
	 
	 	(ii)	 	All information given by or on behalf of the Company set
forth herein relating to the business, activities, affairs or assets or
liabilities of any Group Company was, when given, and is true and accurate in
all material respects.
	 
	 	(iii)	 	The copies of the memorandum and articles of association
and any other constitutional documents of the Company and the Subsidiaries
supplied to the Subscribers by or on behalf of the Company are complete and
accurate in all aspects, having attached to them copies of all resolutions
and other documents required by law to be so attached.
	 
	 	(iv)	 	All documents which are required to be delivered by each
Group Company to the relevant registrar of companies (or other governmental,
regulatory or other public body or agency) under the applicable law and
regulations to which such Group Company is subject have been properly so
delivered.

	E.	 	Shareholders’ arrangements
	 
	 	 	There is no shareholders, joint venture or similar agreement between the Company
and the other shareholders of the Subsidiaries of the Company which are not
wholly-owned by the Company, regulating the transfer of shares or management or
operations in such Subsidiaries.
	 
	F.	 	Contracts and commitments

	 	(i)	 	There are no material breaches of, or any invalidity, or
grounds for determination of, any agreement to which a Group Company is a
party or, to the best of the knowledge or belief of the directors of the
Company having made all reasonable enquiries, of any outstanding allegation
of the foregoing.
	 
	 	(ii)	 	No Group Company is a party to any contract which relates
to matters not within the ordinary business of the Group and for this purpose
“contract” includes any understanding, arrangement or commitment that is
legally binding on any Group Company however described.

	G.	 	Working capital
	 
	 	 	The Group has sufficient working capital for its present requirements
(that is to say, to enable it to continue to carry on the Business in
its present form and
at the present level of turnover) and for the purpose of performing in accordance
with the terms of all orders, projects and contractual obligations which have been
placed with or undertaken by it.

28

 

	H.	 	Liabilities

	 	(i)	 	No Group Company has received any notice to repay under any
agreement relating to borrowing or indebtedness in the nature of borrowing on
its part which is repayable on demand, and no event of default has occurred
under any agreement relating to any other borrowing or indebtedness.
	 
	 	(ii)	 	No Group Company is a party to any contract or guarantee,
indemnity of surety or any contract to secure an obligation of any third
party, other than another Group Company.

	I.	 	Insolvency

	 	(i)	 	No order has been made and no resolution has been passed
for the winding up, liquidation or bankruptcy of any Group Company and no
petition has been presented and no meeting has been convened for the purpose
of the winding up, liquidation or bankruptcy of any Group Company.
	 
	 	(ii)	 	No receiver has been appointed in respect of any Group
Company of all or a substantial part of its assets.
	 
	 	(iii)	 	No Group Company is insolvent or unable to pay its debts
within the meaning of section 6A of the Bankruptcy Ordinance (Cap. 6 of the
Laws of Hong Kong) or section 178 of the Companies Ordinance (Cap. 32 of the
Laws of Hong Kong), as the case may be, or has stopped paying its debts as
they fall due.
	 
	 	(iv)	 	No event analogous to any of the foregoing has occurred in
or outside Hong Kong in relation to any Group Company.
	 
	 	(v)	 	No unsatisfied judgement in a material amount in the
context of the Group as a whole is outstanding against any Group Company.
	 
	 	(vi)	 	No guarantee, loan capital, borrowed money or interest of
any Group Company of a material nature in the context of the Group as a whole
is overdue for payment, and no other obligation or indebtedness of any Group
Company in a material amount in the context of the Group as a whole is
overdue for performance or payment.

	J.	 	Litigation

No Group Company is engaged in any litigation or arbitration, administrative or criminal
proceedings involving a sum in excess of US$50,000 or its equivalent in any other currency
per claim, whether as plaintiff, defendant or otherwise, and, to the best of the knowledge
or belief of the Company, no litigation or arbitration, administrative or criminal
proceedings of a material nature in the context of the Group as a whole by
or against any Group Company is pending or expected.

	K.	 	Delinquent and wrongful acts

29

 

	 	(i)	 	No Group Company has committed or is liable for any
criminal, illegal, unlawful or unauthorised act or breach of any obligation
or duty the liability for or breach of which would materially and adversely
affect the business or financial position of the Group as a whole, whether
imposed by or pursuant to statute, contract or otherwise, and no claim is or
remains outstanding against any Group Company that it has committed or is
liable for the same.
	 
	 	(ii)	 	To the best of the knowledge or belief of the directors of
the Company having made all reasonable enquiries, no investigation or enquiry
is being or has been conducted by any governmental or other body in respect
of the affairs of any Group Company.

	L.	 	Related-party transactions

	 	(i)	 	Save those matters disclosed by the holding company of the
Company, Stonepath Group, Inc. in the relevant SEC filings, there is no
contract or arrangement in respect of which obligations are still
outstanding, to which any Group Company is, or was, a party or in which the
shareholders of the Company are beneficially interested or any Affiliates,
associates (as defined in the Listing Rules) of the Group Companies is, or
has been, interested, either directly or indirectly.
	 
	 	(ii)	 	There is loan or amount outstanding between the Company and
holding company or between the Company’s Subsidiaries and their respective
shareholders (other than the Company).

30

 

Schedule 5

Instrument

31

 

Schedule 6

Form of Deed of Release

To:

STONEPATH HOLDINGS (HONG KONG) LIMITED (“Company”)

Unit 2602, 26/F, Miramar Tower,

132 Nathan Road,

Tsimshatsui, Kowloon,

Hong Kong

RELEASE OF RELEVANT INDEBTEDNESS

     We refer to the amounts owed by you to us as set out in Schedule 1 of the debt restructuring
agreement dated [•] 2006 (the “Relevant Indebtedness”).

     We hereby irrevocably and unconditionally release, forever discharge and agree not to make any
past, present or future claims, demands, alleged obligations or liabilities or causes of action of
whatsoever nature absolutely arising out of, resulting from or in connection with the Relevant
Indebtedness and hereby cancel, release and discharge absolutely the Relevant Indebtedness (as to
SBI Brightline, LLC for the sum of: US$2,500,000 and as to Hong Kong League Central Credit Union
for the sum of US$4,530,000) or any documents or agreements relating thereto (save for the charge
created by the Company pursuant to an amended and restated security deed dated 10 August 2006)
owing by you to us as at the date of this letter.

	 	 	 
	 

Executed as a deed

	 	 
	for and on behalf of
	 	 
	SBI Brightline, LLC
	 	 
	 
	 	 
	 

Executed as a deed

	 	 
	for and on behalf of
	 	 
	Hong Kong League Central Credit Union
	 	 

32

 

Schedule 7

List of Deliverables

	 	 	 	 	 	 	 
	 	 	 	 	 	 	(3)
	 	 	 	 	 	 	To be provided by
	 	 	 	 	(2)	 	the Company by
	 	 	 	 	To be provided by	 	using its best
	(1)	 	 	 	the Company at	 	endeavours after
	Document	 	Completion	 	Completion
	A.

	 	Debt Restructuring Agreement	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Instrument executed by the Company constituting
the series of Notes
	 	Ö	 	 
	 
	 	 	 	 	 	 
	 

	 	Certificates evidencing title to the Notes
issued under seal by the Company 	 	Ö
	 	 
	 
	 	 	 	 	 	 
	 

	 	
Share charge over the shares of G Link Express
Logistics (Singapore) Pte. Ltd. executed by the
Company and SBI as security agent (the
“Singapore Share Charge”)
	 	 
	 	Ö
	 
	 	 	 	 	 	 
	 

	 	Share charge over the shares of Stonepath
Logistics (Hong Kong) Limited, Stonepath Freight
Express (Hong Kong) Limited, Stonepath Logistics
(China) Limited and Shaanxi Sunshine Cargo
Service (Hong Kong) Company Limited executed by
the Company and SBI as security agent (the “HK
Share Charge”)
	 	Ö	 	 
	 
	 	 	 	 	 	 
	 

	 	Share charge over the shares of G Link Express
Logistics (KL) Sdn. Bhd., G Link Express
Logistics (Penang) Sdn. Bhd. and G Link Express
Logistics (JB) Sdn. Bhd executed by the Company
and SBI as security agent (the “Malaysia Share
Charge”)
	 	 	 	Ö
	 
	 	 	 	 	 	 
	 

	 	Share charge over the shares of Shaanxi Sunshine
Cargo Service Co., Ltd executed by the Company
and SBI as security agent (the “PRC Share
Charge”)
	 	 	 	Ö
	 
	 	 	 	 	 	 
	 

	 	Share charge over the shares of the Company
executed by Stonepath Group, Inc. and SBI as
security agent (the “Holdco Share Charge”)
	 	 	 	Ö
	 
	 	 	 	 	 	 
	B.

	 	Singapore Share Charge	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Certificates in respect of the charged shares
	 	 	 	Ö
	 
	 	 	 	 	 	 
	 

	 	Transfer forms for the transfer of shares in G
Link Express Logistics (Singapore) Pte. Ltd.
duly executed by the Company in blank
	 	 	 	Ö

33

 

	 	 	 	 	 	 	 
	 	 	 	 	 	 	(3)
	 	 	 	 	 	 	To be provided by
	 	 	 	 	(2)	 	the Company by
	 	 	 	 	To be provided by	 	using its best
	(1)	 	 	 	the Company at	 	endeavours after
	Document	 	Completion	 	Completion
	 

	 	Signed undated letters of resignation from each
director of G Link Express Logistics (Singapore)
Pte. Ltd.
	 	 	 	Ö
	 
	 	 	 	 	 	 
	 

	 	Board resolutions in writing in the form set out
in Schedule 3 of the HK Share Charge signed by
every director of G Link Express Logistics
(Singapore) Pte. Ltd.
	 	 	 	Ö
	 
	 	 	 	 	 	 
	C.

	 	HK Share Charge	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Certificates in respect of the charged shares of:
	 	Ö	 	 
	 
	 	 	 	 	 	 
	 

	 	(a)    Stonepath Logistics (Hong Kong) Limited
	 	 	 	 
	 

	 	(b)    Stonepath Freight Express (Hong Kong) Limited
	 	 	 	 
	 

	 	(c)    Shaanxi Sunshine Cargo Service (Hong Kong) Company Limited
	 	 	 	 
	 

	 	(d)    Stonepath Logistics (China) Limited
	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Instrument of Transfer and contract notes duly
executed by the Company in blank for the
transfer of shares in:
	 	Ö	 	 
	 
	 	 	 	 	 	 
	 

	 	(a)    Stonepath Logistics (Hong Kong) Limited 
	 	 	 	 
	 

	 	(b)    Stonepath Freight Express (Hong Kong) Limited
	 	 	 	 
	 

	 	(c)    Shaanxi Sunshine Cargo Service (Hong Kong) Company Limited
	 	 	 	 
	 

	 	(d)    Stonepath Logistics (China) Limited
	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Signed undated letters of resignation from each
director of:
	 	Ö	 	 
	 
	 	 	 	 	 	 
	 

	 	(a)    Stonepath Logistics (Hong Kong) Limited
	 	 	 	 
	 

	 	(b)    Stonepath Freight Express (Hong Kong) Limited 
	 	 	 	 
	 

	 	(c)    Shaanxi Sunshine Cargo Service (Hong Kong) Company Limited
	 	 	 	 
	 

	 	(d)    Stonepath Logistics (China) Limited
	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Board resolutions in writing in the form set out
in Schedule 3 of the HK Share Charge signed by
every director of :
	 	Ö	 	 
	 
	 	 	 	 	 	 
	 

	 	(a)    Stonepath Logistics (Hong Kong) Limited
	 	 	 	 
	 

	 	(b)    Stonepath Freight Express (Hong Kong) Limited
	 	 	 	 
	 

	 	(c)    Shaanxi Sunshine Cargo Service (Hong Kong) Company Limited 
	 	 	 	 
	 

	 	(d)    Stonepath Logistics (China) Limited
	 	 	 	 

34

 

	 	 	 	 	 	 	 
	 	 	 	 	 	 	(3)
	 	 	 	 	 	 	To be provided by
	 	 	 	 	(2)	 	the Company by
	 	 	 	 	To be provided by	 	using its best
	(1)	 	 	 	the Company at	 	endeavours after
	Document	 	Completion	 	Completion
	D.

	 	Malaysia Share Charge	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Certificates in respect of the charged shares of:
	 	 	 	Ö
	 
	 	 	 	 	 	 
	 

	 	(a)    G Link Express Logistics (JB) Sdn. Bhd.
	 	 	 	 
	 

	 	(b)    G Link Express Logistics (Penang) Sdn. Bhd.
	 	 	 	 
	 

	 	(c)     G Link Express Logistics (KL) Sdn. Bhd. 
	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Instrument of Transfer duly executed by the
Company in blank for the transfer of shares in:
	 	 	 	Ö
	 
	 	 	 	 	 	 
	 

	 	(a)    G Link Express Logistics (JB) Sdn. Bhd.
	 	 	 	 
	 

	 	(b)    G Link Express Logistics (Penang) Sdn. Bhd.
	 	 	 	 
	 

	 	(c)    G Link Express Logistics (KL) Sdn. Bhd.
	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Signed undated letters of resignation from each
director of:
	 	 	 	Ö
	 
	 	 	 	 	 	 
	 

	 	(a)    G Link Express Logistics (JB) Sdn. Bhd.
	 	 	 	 
	 

	 	(b)    G Link Express Logistics (Penang) Sdn. Bhd.
	 	 	 	 
	 

	 	(c)     G Link Express Logistics (KL) Sdn. Bhd.
	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Board resolutions in writing in the form set out
in Schedule 3 of the Malaysia Share Charge
signed by every director of :
	 	 	 	Ö
	 
	 	 	 	 	 	 
	 

	 	(a)    G Link Express Logistics (JB) Sdn. Bhd.
	 	 	 	 
	 

	 	(b)    G Link Express Logistics (Penang) Sdn. Bhd.
	 	 	 	 
	 

	 	(c)    G Link Express Logistics (KL) Sdn. Bhd.
	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Letter duly signed by each of the other
shareholders of the following companies, waiving
any right such shareholder may have under the
articles of association of the companies or
otherwise to purchase shares in the capital of:
	 	 	 	Ö
	 
	 	 	 	 	 	 
	 

	 	(a)    G Link Express Logistics (JB) Sdn. Bhd.
	 	 	 	 
	 

	 	(b)    G Link Express Logistics (Penang) Sdn. Bhd.
	 	 	 	 
	 

	 	(c)     G Link Express Logistics (KL) Sdn. Bhd.
	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Shareholders resolutions signed by each and
every member of the following companies in the
form set out in Schedule 5 of the Malaysian
Share Charge:
	 	 	 	Ö
	 
	 	 	 	 	 	 
	 

	 	(a)    G Link Express Logistics (JB) Sdn. Bhd.
	 	 	 	 
	 

	 	(b)    G Link Express Logistics (Penang) Sdn. Bhd.
	 	 	 	 
	 

	 	(c)    G Link Express Logistics (KL) Sdn. Bhd.
	 	 	 	 
	 
	 	 	 	 	 	 
	E.

	 	PRC Share Charge	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Application Letter duly executed by Shaanxi
Sunshine Cargo Service Co., Ltd;
	 	 	 	Ö
	 
	 	 	 	 	 	 
	 

	 	Board of Resolution duly signed by every
director of Shaanxi Sunshine Cargo Service Co.,
Ltd;
	 	 	 	Ö

35

 

	 	 	 	 	 	 	 
	 	 	 	 	 	 	(3)
	 	 	 	 	 	 	To be provided by
	 	 	 	 	(2)	 	the Company by
	 	 	 	 	To be provided by	 	using its best
	(1)	 	 	 	the Company at	 	endeavours after
	Document	 	Completion	 	Completion
	 

	 	Amendment to the Articles of Association duly
executed by Shaanxi Sunshine Cargo Service Co.,
Ltd and each of its PRC shareholders;
	 	 	 	Ö
	 
	 	 	 	 	 	 
	 

	 	Table of Amendment to the Articles of
Association duly signed by each of the PRC
shareholder of Shaanxi Sunshine Cargo Service
Co., Ltd
	 	 	 	Ö
	 
	 	 	 	 	 	 
	 

	 	Agreement on Amendment to the Joint Venture
Contract duly executed by Shaanxi Sunshine Cargo
Service Co., Ltd and each of its PRC
shareholders;
	 	 	 	Ö
	 
	 	 	 	 	 	 
	 

	 	Table of Amendment to the Joint Venture
Agreement duly signed by each of the PRC
shareholders of Shaanxi Sunshine Cargo Service
Co., Ltd
	 	 	 	Ö
	 
	 	 	 	 	 	 
	 

	 	Appointment Letter of directors to be signed by
the transferee
	 	 	 	Ö
	 
	 	 	 	 	 	 
	 

	 	Equity Transfer Agreement duly executed by
Stonepath Holdings (Hong Kong) Limited
	 	 	 	Ö
	 
	 	 	 	 	 	 
	 

	 	Equity Pledge Agreement duly executed by
Stonepath Holdings (Hong Kong) Limited and SBI
	 	 	 	Ö
	 
	 	 	 	 	 	 
	 

	 	Waiver Letter signed by each PRC shareholder of
Shaanxi Sunshine Cargo Service Co., Ltd
	 	 	 	Ö
	 
	 	 	 	 	 	 
	F.

	 	Holdco Share Charge	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Certificates in respect of the charged shares of
the Company
	 	 	 	Ö
	 
	 	 	 	 	 	 
	 

	 	Instrument of Transfer and contract notes duly
executed by the Company in blank for the
transfer of shares in the Company
	 	 	 	Ö
	 
	 	 	 	 	 	 
	 

	 	Signed undated letters of resignation from each
director of the Company
	 	 	 	Ö
	 
	 	 	 	 	 	 
	 

	 	Board resolutions in writing in the form set out
in Schedule 3 of the Holdco Share Charge signed
by every director of the Company
	 	 	 	Ö

36

 

Schedule 8

Schedule of Disclosures

	A.	 	Planet Logistics Express (Singapore) Pte Ltd.

	 	(i)	 	Banking facilities from United Overseas Bank Limited. The
limit of the facility is equivalent to the amount of fixed deposit pledged.

	B.	 	Shaanxi Sunshine Cargo Service Co., Ltd.

	 	(i)	 	Loan of US$420,000 to shareholder Tsai Ye-Wei.

	C.	 	G Link Express Logistics (Singapore) Pte Ltd.

	 	(i)	 	Litigation as plaintiff against Image Glow Merchandising (M)
SDN BHD for US$259,359.10 in outstanding invoices arising from the normal
course of business.

37

 

Execution Page

The Company

	 	 	 
	SIGNED by
	 	)
	 
	 	)
	for and on behalf of
	 	)
	STONEPATH HOLDINGS (HONG KONG)
	 	)
	LIMITED
	 	)
	in the presence of :-
	 	)
	The Subscribers

	 
	SIGNED by
	 	)
	 
	 	)
	for and on behalf of
	 	)
	SBI BRIGHTLINE, LLC
	 	)
	in the presence of :-
	 	)
	 
	 	 
	SIGNED by
	 	)
	 
	 	)
	for and on behalf of
	 	)
	HONG KONG LEAGUE CENTRAL
	 	)
	CREDIT UNION
	 	)
	in the presence of :-
	 	)

38

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00118-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00118-of-00352.parquet"}]]