Document:

EX-4.6

 Exhibit 4.6 

FORM OF TRUST INDENTURE 

CYTODYN INC. 
 and

                     , as
Trustee 
 INDENTURE 

Dated as of             , 20     

Providing for the Issuance of Debt Securities 
  

 
 CROSS-REFERENCE TABLE* 

 

			
	 Trust Indenture Act Section
	  	Indenture Section
	 310 (a)(1)
	  	N.A.
	        (a)(2)
	  	6.13
	        (a)(3)
	  	6.13
	        (a)(4)
	  	N.A.
	        (a)(5)
	  	7.01
	        (b)
	  	7.02
	        (c)
	  	7.02
	 311 (a)
	  	7.03
	        (b)
	  	7.03
	        (c)
	  	7.03
	 312 (a)
	  	7.03
	        (b)
	  	7.04; 1.02
	        (c)
	  	1.02
	 313 (a)
	  	1.02
	        (b)(2)
	  	N.A.
	        (c)
	  	1.02
	        (d)
	  	N.A.
	 314 (a)
	  	6.01
	        (c)(1)
	  	6.02; 1.06
	        (c)(2)
	  	6.01
	        (c)(3)
	  	6.01
	        (e)
	  	5.14
	        (f)
	  	1.01
	 315 (a)
	  	5.12
	        (b)
	  	5.02
	        (c)
	  	N.A.
	        (d)
	  	5.08
	        (e)
	  	3.07
	 316 (a)(last sentence)
	  	5.03
	        (a)(1)(A)
	  	5.04
	        (a)(1)(B)
	  	4.06
	        (a)(2)
	  	1.07
	        (b)
	  	N.A.
	        (c)
	  	1.07

  
 N.A. means
not applicable 
  

	*	This Cross-Reference Table is not part of the Indenture. 

 TABLE OF CONTENTS 

 

							
	 	 	 	  	Page	 
	 ARTICLE I
	 	 DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION
	  	 	1	  
			
	 Section 1.01
	 	 Definitions
	  	 	1	  
	 Section 1.02
	 	 Officers’ Certificates and Opinions
	  	 	6	  
	 Section 1.03
	 	 Form of Documents Delivered to Trustee
	  	 	6	  
	 Section 1.04
	 	 Acts of Securityholders
	  	 	7	  
	 Section 1.05
	 	 Notices, etc., to Trustee and Company
	  	 	7	  
	 Section 1.06
	 	 Notice To Securityholders; Waiver
	  	 	8	  
	 Section 1.07
	 	 Conflict with Trust Indenture Act
	  	 	8	  
	 Section 1.08
	 	 Effect of Headings and Table of Contents
	  	 	8	  
	 Section 1.09
	 	 Successors and Assigns
	  	 	8	  
	 Section 1.10
	 	 Separability Clause
	  	 	8	  
	 Section 1.11
	 	 Benefits of Indenture
	  	 	8	  
	 Section 1.12
	 	 Governing Law
	  	 	8	  
	 Section 1.13
	 	 Counterparts
	  	 	8	  
	 Section 1.14
	 	 Judgment Currency
	  	 	9	  
	 Section 1.15
	 	 Legal Holidays
	  	 	9	  
			
	 ARTICLE II
	 	 SECURITY FORMS
	  	 	9	  
			
	 Section 2.01
	 	 Forms Generally
	  	 	9	  
	 Section 2.02
	 	 Forms of Securities
	  	 	9	  
	 Section 2.03
	 	 Securities in Global Form
	  	 	10	  
	 Section 2.04
	 	 Form of Trustee’s Certificate of Authentication
	  	 	10	  
			
	 ARTICLE III
	 	 THE SECURITIES
	  	 	10	  
			
	 Section 3.01
	 	 General Title; General Limitations; Issuable in Series; Terms of Particular Series
	  	 	10	  
	 Section 3.02
	 	 Denominations and Currency
	  	 	13	  
	 Section 3.03
	 	 Execution, Authentication and Delivery, and Dating
	  	 	13	  
	 Section 3.04
	 	 Temporary Securities
	  	 	14	  
	 Section 3.05
	 	 Registration, Transfer and Exchange
	  	 	15	  
	 Section 3.06
	 	 Mutilated, Destroyed, Lost and Stolen Securities
	  	 	16	  
	 Section 3.07
	 	 Payment of Interest; Interest Rights Preserved
	  	 	17	  
	 Section 3.08
	 	 Persons Deemed Owners
	  	 	18	  
	 Section 3.09
	 	 Cancellation
	  	 	18	  
	 Section 3.10
	 	 Computation of Interest
	  	 	18	  
			
	 ARTICLE IV
	 	 SATISFACTION AND DISCHARGE
	  	 	18	  
			
	 Section 4.01
	 	 Satisfaction and Discharge of Indenture
	  	 	18	  
	 Section 4.02
	 	 Discharge and Defeasance
	  	 	19	  
	 Section 4.03
	 	 Covenant Defeasance
	  	 	20	  
	 Section 4.04
	 	 Conditions To Defeasance Or Covenant Defeasance
	  	 	20	  
	 Section 4.05
	 	 Application of Trust Money; Excess Funds
	  	 	21	  
	 Section 4.06
	 	 Paying Agent to Repay Moneys Held
	  	 	22	  
	 Section 4.07
	 	 Return of Unclaimed Amounts
	  	 	22	  

  
 -i- 

							
	 ARTICLE V
	 	 REMEDIES
	  	 	22	  
			
	 Section 5.01
	 	 Events of Default
	  	 	22	  
	 Section 5.02
	 	 Acceleration of Maturity; Rescission, and Annulment
	  	 	23	  
	 Section 5.03
	 	 Collection of Indebtedness and Suits for Enforcement by Trustee
	  	 	24	  
	 Section 5.04
	 	 Trustee May File Proofs of Claim
	  	 	24	  
	 Section 5.05
	 	 Trustee May Enforce Claims Without Possession of Securities
	  	 	25	  
	 Section 5.06
	 	 Application of Money Collected
	  	 	25	  
	 Section 5.07
	 	 Limitation on Suits
	  	 	25	  
	 Section 5.08
	 	 Unconditional Right of Securityholders to Receive Principal, Premium, and Interest
	  	 	26	  
	 Section 5.09
	 	 Restoration of Rights and Remedies
	  	 	26	  
	 Section 5.10
	 	 Rights and Remedies Cumulative
	  	 	26	  
	 Section 5.11
	 	 Delay or Omission Not Waiver
	  	 	26	  
	 Section 5.12
	 	 Control by Securityholders
	  	 	26	  
	 Section 5.13
	 	 Waiver of Past Defaults
	  	 	26	  
	 Section 5.14
	 	 Undertaking for Costs
	  	 	27	  
	 Section 5.15
	 	 Waiver of Stay or Extension Laws
	  	 	27	  
			
	 ARTICLE VI
	 	 THE TRUSTEE
	  	 	27	  
			
	 Section 6.01
	 	 Certain Duties and Responsibilities of Trustee
	  	 	27	  
	 Section 6.02
	 	 Notice of Defaults
	  	 	28	  
	 Section 6.03
	 	 Certain Rights of Trustee
	  	 	28	  
	 Section 6.04
	 	 Not Responsible for Recitals or Issuance of Securities
	  	 	29	  
	 Section 6.05
	 	 May Hold Securities
	  	 	29	  
	 Section 6.06
	 	 Money Held in Trust
	  	 	29	  
	 Section 6.07
	 	 Compensation and Reimbursement
	  	 	29	  
	 Section 6.08
	 	 Disqualification; Conflicting Interests
	  	 	30	  
	 Section 6.09
	 	 Corporate Trustee Required; Eligibility
	  	 	30	  
	 Section 6.10
	 	 Resignation and Removal; Appointment of Successor
	  	 	30	  
	 Section 6.11
	 	 Acceptance of Appointment by Successor
	  	 	31	  
	 Section 6.12
	 	 Merger, Conversion, Consolidation or Succession to Business
	  	 	32	  
	 Section 6.13
	 	 Preferential Collection of Claims Against Company
	  	 	32	  
	 Section 6.14
	 	 Appointment of Authenticating Agent
	  	 	32	  
			
	 ARTICLE VII
	 	 SECURITYHOLDERS’ LISTS AND REPORTS BY TRUSTEE AND COMPANY
	  	 	33	  
			
	 Section 7.01
	 	 Company to Furnish Trustee Names and Addresses of Securityholders
	  	 	33	  
	 Section 7.02
	 	 Preservation of Information; Communications to Securityholders
	  	 	33	  
	 Section 7.03
	 	 Reports by Trustee
	  	 	34	  
	 Section 7.04
	 	 Reports by Company
	  	 	34	  
			
	 ARTICLE VIII
	 	 CONSOLIDATION, MERGER, CONVEYANCE OR TRANSFER
	  	 	35	  
			
	 Section 8.01
	 	 Company May Consolidate, etc., Only on Certain Terms
	  	 	35	  
	 Section 8.02
	 	 Successor Corporation Substituted
	  	 	35	  
			
	 ARTICLE IX
	 	 SUPPLEMENTAL INDENTURES
	  	 	36	  
			
	 Section 9.01
	 	 Supplemental Indentures Without Consent of Securityholders
	  	 	36	  
	 Section 9.02
	 	 Supplemental Indentures With Consent of Securityholders
	  	 	37	  
	 Section 9.03
	 	 Execution of Supplemental Indentures
	  	 	37	  
	 Section 9.04
	 	 Effect of Supplemental Indentures
	  	 	38	  
	 Section 9.05
	 	 Conformity With Trust Indenture Act
	  	 	38	  
	 Section 9.06
	 	 Reference in Securities to Supplemental Indentures
	  	 	38	  

  
 -ii- 

							
	 ARTICLE X
	 	 COVENANTS
	  	 	38	  
			
	 Section 10.01
	 	 Payment of Principal, Premium and Interest
	  	 	38	  
	 Section 10.02
	 	 Maintenance of Office or Agency
	  	 	38	  
	 Section 10.03
	 	 Money or Security Payments to Be Held in Trust
	  	 	38	  
	 Section 10.04
	 	 Certificate to Trustee
	  	 	39	  
	 Section 10.05
	 	 Corporate Existence
	  	 	39	  
			
	 ARTICLE XI
	 	 REDEMPTION OF SECURITIES
	  	 	39	  
			
	 Section 11.01
	 	 Applicability of Article
	  	 	39	  
	 Section 11.02
	 	 Election to Redeem; Notice to Trustee
	  	 	39	  
	 Section 11.03
	 	 Selection by Trustee of Securities to be Redeemed
	  	 	40	  
	 Section 11.04
	 	 Notice of Redemption
	  	 	40	  
	 Section 11.05
	 	 Deposit of Redemption Price
	  	 	40	  
	 Section 11.06
	 	 Securities Payable on Redemption Date
	  	 	41	  
	 Section 11.07
	 	 Securities Redeemed in Part
	  	 	41	  
	 Section 11.08
	 	 Provisions with Respect to any Sinking Funds
	  	 	41	  
			
	 ARTICLE XII
	 	 REPAYMENT AT OPTION OF HOLDERS
	  	 	42	  
			
	 Section 12.01
	 	 Applicability of Article
	  	 	42	  
	 Section 12.02
	 	 Repayment of Securities
	  	 	42	  
	 Section 12.03
	 	 Exercise of Option
	  	 	42	  
	 Section 12.04
	 	 When Securities Presented for Repayment Become Due and Payable
	  	 	43	  
	 Section 12.05
	 	 Securities Repaid in Part
	  	 	43	  

  
 -iii- 

 THIS INDENTURE, between CytoDyn Inc., a Delaware corporation (hereinafter called the
“Company”) having its principal office at 1111 Main Street, Suite 660, Vancouver, Washington 98660, and, [                    ], a
[                    ] as trustee (hereinafter called the “Trustee”), is made and entered into as of this [    ]
day of [            ], 20[    ]. 
 Recitals of the
Company 
 The Company has duly authorized the execution and delivery of this Indenture to provide for the issuance of its unsecured
debentures, notes, bonds, and other evidences of indebtedness, to be issued in one or more fully registered series. 
 All things necessary
to make this Indenture a valid agreement of the Company, in accordance with its terms, have been done. 
 Agreements of the Parties

 To set forth or to provide for the establishment of the terms and conditions upon which the Securities (as hereinafter defined) are
and are to be authenticated, issued, and delivered, and in consideration of the premises thereof, and the purchase of Securities by the Holders (as hereinafter defined) thereof, it is mutually covenanted and agreed as follows, for the equal and
proportionate benefit of all Holders from time to time of the Securities or of any series thereof, as the case may be: 
 ARTICLE I

 DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION 

Section 1.01 Definitions. For all purposes of this Indenture and of any indenture supplemental hereto, except as otherwise
expressly provided or unless the context otherwise requires: 
 (a) the terms defined in this Article have the meanings assigned to them in
this Article, and include the plural as well as the singular; 
 (b) all other terms used herein which are defined in the Trust Indenture
Act (as hereinafter defined), either directly or by reference therein, have the meanings assigned to them therein; 
 (c) all accounting
terms not otherwise defined herein have the meanings assigned to them in accordance with generally accepted accounting principles and, except as otherwise herein expressly provided, the term “generally accepted accounting principles” with
respect to any computation required or permitted hereunder shall mean such accounting principles as are generally accepted in the United States of America at the date of such computation; and 

(d) all references in this instrument to designated “Articles”, “Sections” and other subdivisions are to the designated
Articles, Sections and other subdivisions of this instrument as originally executed. The words “herein”, “hereof”, and “hereunder” and other words of similar import refer to this Indenture as a whole and not to any
particular Article, Section, or other subdivision. 
 (e) the following terms will have the meanings set forth below: 

“Act”, when used with respect to any Securityholder (as hereinafter defined), has the meaning specified in Section 1.04.

 “Affiliate” of any specified Person (as hereinafter defined) means any other Person directly or indirectly controlling
or controlled by or under direct or indirect common control with such specified Person. For the purposes of this definition, “control” when used with respect to any specified Person means the power to direct the management and policies of
such Person, directly or indirectly, whether through the ownership of voting securities, by contract, or otherwise; and the terms “controlling” and “controlled” have meanings correlative to the foregoing. 

  
 -1- 

 “Authenticating Agent” means any Person authorized by the Trustee to
authenticate Securities of one or more series under Section 6.14. 
 “Authentication Order” has the meaning specified
in Section 3.03. 
 “Board of Directors” means (i) the board of directors of the Company, (ii) any duly
authorized committee of that board, or (iii) any officer, director, or authorized representative of the Company, in each case duly authorized by such Board to act hereunder. 

“Board Resolution” means a copy of a resolution certified by the secretary or an assistant secretary of the Company to have
been duly adopted by the Board of Directors and to be in full force and effect on the date of such certification, and delivered to the Trustee. 

“Capital Stock” means, with respect to any Person, any capital stock (including preferred stock), shares, interests,
participations or other ownership interests (however designated) of such Person and any rights (other than debt securities convertible or exchangeable for corporate stock), warrants or options to purchase any thereof. 

“Commission” means the Securities and Exchange Commission, as from time to time constituted, created under the Securities
Exchange Act of 1934, or, if at any time after the execution of this instrument such Commission is not existing and performing the duties now assigned to it under the Trust Indenture Act, then the body performing such duties on such date. 

“Company” means CytoDyn Inc., unless and until a successor corporation shall have become such pursuant to the applicable
provisions of this Indenture, and thereafter “Company” shall mean such successor corporation. 
 “Company
Request”, “Company Order”, and “Company Consent” mean, respectively, a written request, order, or consent signed in the name of the Company by the chairman of the Board of Directors, the chief executive
officer, the chief financial officer, the treasurer, the controller, or by any other officer or officers of the Company pursuant to an applicable Board Resolution, and delivered to the Trustee. 

“Corporate Trust Office” means the office of the Trustee at which at any particular time its corporate trust business shall
be principally administered, which office at the date hereof is located at [                    ]. 

“Corporation” means a corporation, association, company, joint-stock company, limited liability company or business trust.

 “Covenant Defeasance” has the meaning specified in Section 4.03. 

“Defaulted Interest” has the meaning specified in Section 3.07. 

“Defeasance” has the meaning specified in Section 4.02. 

“Depositary” means with respect to the Securities of any series issuable or issued in whole or in part in global form, the
Person designated as Depositary by the Company pursuant to Section 3.01, unless and until a successor Depositary shall have become such pursuant to the applicable provisions of this Indenture, and thereafter “Depositary” shall mean or
include each Person who is then a Depositary hereunder, and if at any time there is more than one such Person, “Depositary” as used with respect to the Securities of any such series shall mean the “ Depositary” with respect to
the Securities of that series. 
 “Equivalent Government Securities” means, in relation to Securities denominated in a
currency other than U.S. dollars, securities of the government that issued the currency in which such Securities are denominated or securities of government agencies backed by the full faith and credit of such government. 

  
 -2- 

 “Event of Default” has the meaning specified in Article 5. 

“Holder”, “Securityholder” and “Holder of Securities” means a Person in whose name a
Security is registered in the Security Register (as hereinafter defined). 
 “Indebtedness” with respect to any Person
means (1) any liability of such Person (a) for borrowed money, or (b) evidenced by a bond, note, debenture or similar instrument (including purchase money obligations but excluding Trade Payables), or (c) for the payment of money
relating to a lease that is required to be classified as a capitalized lease obligation in accordance with generally accepted accounting principles; (2) mandatorily redeemable preferred or preference stock of a Subsidiary held by Persons other
than the Company or a Subsidiary; (3) any liability of others described in the preceding clause (1) that such Person has guaranteed, that is recourse to such Person or that is otherwise such Person’s legal liability; and (4) any
amendment, supplement, modification, deferral, renewal, extension or refunding of any liability of the types referred to in clauses (1), (2) and (3) above. 

“Indenture” or “this Indenture” means this instrument as originally executed or as it may from time to time
be supplemented or amended by one or more indentures supplemental hereto entered into pursuant to the applicable provisions hereof and shall include the terms of any particular series of Securities established as contemplated by Section 3.01.

 “Interest Payment Date”, when used with respect to any series of Securities, means any date on which an installment of
interest on those Securities is scheduled to be paid. 
 “Maturity”, when used with respect to any Security, means the date
on which the principal amount outstanding under such Security or an installment of principal amount outstanding under such Security becomes due and payable, as therein or herein provided, whether on the Scheduled Maturity Date (as hereinafter
defined), by declaration of acceleration, call for redemption, or otherwise. 
 “New York Business Day” means (except, with
respect to any particular series of Securities, as may be otherwise provided in the form of such Securities) any day other than a Saturday or Sunday that is neither a legal holiday nor a day on which banking institutions are authorized or required
by law, regulation, or executive order to be closed. 
 “Officers’ Certificate” means a certificate signed by any two
of the chairman of the Board of Directors, the chief executive officer, the president, any vice president, the treasurer or by any other officer or officers of the Company pursuant to an applicable Board Resolution, and delivered to the Trustee.

 “Opinion of Counsel” means a written opinion of counsel to the Company, which counsel may be an employee of the Company
or other counsel who shall be reasonably acceptable to the Trustee. 
 “Original Issue Discount Security” means any
Security which is initially sold at a discount from the principal amount thereof and the terms of which provide that upon redemption or acceleration of the Maturity thereof, an amount less than the principal amount thereof would become due and
payable. 
 “Outstanding”, when used with respect to any particular Securities or to the Securities of any particular
series means, as of the date of determination, all such Securities theretofore authenticated and delivered under this Indenture, except: 

(a) such Securities theretofore canceled by the Trustee or delivered by the Company to the Trustee for cancellation; 

(b) such Securities, or portions thereof, for whose payment or redemption money in the necessary amount has been theretofore deposited in
trust with the Trustee or with any Paying Agent (as hereinafter defined) other than the Company, or, if the Company shall act as its own Paying Agent, has been set aside and segregated in trust by the Company; provided, in any case, that if such
Securities are to be redeemed prior to their Scheduled Maturity Date, notice of such redemption has been duly given pursuant to this Indenture or provision therefor satisfactory to the Trustee has been made; and 

  
 -3- 

 (c) such Securities in exchange for or in lieu of which other Securities have been authenticated
and delivered pursuant to this Indenture, or which shall have been paid, in each case, pursuant to the terms of Section 3.06 (except with respect to any such Security as to which proof satisfactory to the Trustee is presented that such Security
is held by a Person in whose hands such Security is a legal, valid, and binding obligation of the Company). 
 In determining whether the
Holders of the requisite principal amount of such Securities Outstanding have given any request, demand, authorization, direction, notice, consent or waiver hereunder, the principal amount of any Original Issue Discount Security that shall be deemed
to be Outstanding shall be the amount of the principal thereof that would be due and payable as of the date of such determination upon a declaration of acceleration of the Maturity thereof. In determining whether the Holders of the requisite
principal amount of such Securities Outstanding have given a direction concerning the time, method, and place of conducting any proceeding for any remedy available to the Trustee, or concerning the exercise of any trust or power conferred upon the
Trustee under this Indenture, or concerning a consent on behalf of the Holders of any series of Securities to the waiver of any past default and its consequences, Securities owned by the Company, any other obligor upon the Securities, or any
Affiliate of the Company or such other obligor shall be disregarded and deemed not to be Outstanding. In determining whether the Trustee shall be protected in relying upon any such request, demand, authorization, direction, notice, consent, or
waiver, only Securities which a Responsible Officer assigned to the corporate trust department of the Trustee knows to be owned by the Company or any other obligor upon the Securities or any Affiliate of the Company or such other obligor shall be so
disregarded. Securities so owned which have been pledged in good faith may be regarded as Outstanding if the pledgee establishes to the satisfaction of the Trustee the pledgee’s right to act as owner with respect to such Securities and that the
pledgee is not the Company or any other obligor upon the Securities or any Affiliate of the Company or such other obligor. 

“Paying Agent” means, with respect to any Securities, any Person appointed by the Company to distribute amounts payable by
the Company on such Securities. If at any time there shall be more than one such Person, “Paying Agent” as used with respect to the Securities of any particular series shall mean the Paying Agent with respect to Securities of that series.
As of the date of this Indenture, the Company has appointed [                    ] as Paying Agent with respect to all Securities issuable hereunder.

 “Person” means any individual, corporation, partnership, joint venture, association, joint-stock company, trust,
unincorporated organization, or government, or any agency or political subdivision thereof. 
 “Place of Payment” means
with respect to any series of Securities issued hereunder the city or political subdivision so designated with respect to the series of Securities in question in accordance with the provisions of Section 3.01. 

“Predecessor Securities” of any particular Security means every previous Security evidencing all or a portion of the same
debt as that evidenced by such particular Security; and, for the purposes of this definition, any Security authenticated and delivered under Section 3.06 in lieu of a lost, destroyed, mutilated, or stolen Security shall be deemed to evidence
the same debt as the lost, destroyed, mutilated, or stolen Security. 
 “Record Date” means any date as of which the Holder
of a Security will be determined for any purpose described herein, such determination to be made as of the close of business on such date by reference to the Security Register. 

“Redemption Date”, when used with respect to any Security to be redeemed, means the date fixed for such redemption by or
pursuant to this Indenture. 
 “Redemption Price”, when used with respect to any Security to be redeemed, means the price
specified in the Security at which it is to be redeemed pursuant to this Indenture. 

  
 -4- 

 “Repayment Date”, when used with respect to any Security to be repaid, means the
date fixed for such repayment pursuant to such Security. 
 “Repayment Price”, when used with respect to any Security to be
repaid, means the price at which it is to be repaid pursuant to such Security. 
 “Responsible Officer”, when used with
respect to the Trustee, shall mean an officer or assistant officer of the Trustee in the Corporate Trust Office, having direct responsibility for the administration of this Indenture, and also, with respect to a particular corporate trust matter,
any other officer to whom such matter is referred because of such officer’s knowledge of and familiarity with the particular subject. 

“Scheduled Maturity Date”, when used with respect to any Security, means the date specified in such Security as the date on
which all outstanding principal and interest will be due and payable. 
 “Security” or “Securities” means
any note or notes, bond or bonds, debenture or debentures, or any other evidences of indebtedness, as the case may be, of any series authenticated and delivered from time to time under this Indenture. 

“Security Register” shall have the meaning specified in Section 3.05. 

“Security Registrar” means the Person who maintains the Security Register, which Person shall be the Trustee unless and until
a successor Security Registrar is appointed by the Company. 
 “Senior Indebtedness” means all obligations or indebtedness
of, or guaranteed or assumed by, the Company, whether or not represented by bonds, debentures notes or similar instruments, for borrowed money, and any amendments, renewals, extensions, modifications and refundings of any such obligations or
indebtedness, unless in the instrument creating or evidencing any such indebtedness or obligations or pursuant to which the same is outstanding it is specifically stated, at or prior to the time the Company becomes liable in respect thereof, that
any such obligation or indebtedness or such amendment, renewal, extension, modification and refunding thereof is not Senior Indebtedness. 

“Significant Subsidiary” means each Subsidiary which is a “significant subsidiary” as defined in Rule 1-02(w) of
Regulation S-X, as amended or modified and in effect from time to time. 
 “Special Record Date” for the payment of any
Defaulted Interest means a date fixed by the Trustee pursuant to Section 3.07. 
 “Specified Currency” has the meaning
specified in Section 3.01. 
 “Subsidiary” means any corporation, partnership or other entity of which at the time of
determination the Company owns or controls directly or indirectly more than 50% of the shares of voting stock or equivalent interest. 

“Trade Payables” means accounts payable or any other Indebtedness or monetary obligations to trade creditors created or
assumed in the ordinary course of business in connection with the obtaining of materials, finished products, inventory or services. 

“Trust Indenture Act” or “TIA” means the Trust Indenture Act of 1939, as in force as of the date hereof,
except as provided in Section 9.05. 
 “Trustee” means the party named as such above until a successor becomes such
pursuant to this Indenture and thereafter means or includes each party who is then a trustee hereunder, and if at any time there is more than one such party, “Trustee” as used with respect to the Securities of any series means the Trustee
with respect to Securities of that series. If Trustees with respect to different series of Securities are trustees under this Indenture, nothing herein shall constitute the Trustees co-trustees of the same trust, and each Trustee shall be the
trustee of a trust separate and apart from any trust administered by any other Trustee with respect to a different series of Securities. 

  
 -5- 

 “U.S. Government Obligations” means (i) securities that are direct
obligations of the United States of America, the payment of which is unconditionally guaranteed by the full faith and credit of the United States of America and (ii) securities that are obligations of a Person controlled or supervised by and
acting as an agency or instrumentality of the United States of America, the payment of which is unconditionally guaranteed by the full faith and credit of the United States of America, and also includes depository receipts issued by a bank or trust
company as custodian with respect to any of the securities described in the preceding clauses (i) and (ii), and any payment of interest or principal payable under any of the securities described in the preceding clauses (i) and
(ii) that is held by such custodian for the account of the holder of a depository receipt, provided that (except as required by law) such custodian is not authorized to make any deduction from the amount payable to the holder of such depository
receipt, or from any amount received by the custodian in respect of such securities, or from any specific payment of interest or principal payable under the securities evidenced by such depository receipt. 

“Voting Stock”, as applied to the stock of any corporation, means stock of any class or classes (however designated), the
outstanding shares of which have, by the terms thereof, ordinary voting power to elect a majority of the members of the board of directors (or other governing body) of such corporation, other than stock having such power only by reason of the
happening of a contingency. 
 Section 1.02 Officers’ Certificates and Opinions. Every Officers’ Certificate, Opinion
of Counsel, and other certificate or opinion to be delivered to the Trustee under this Indenture with respect to any action to be taken by the Trustee (except for the Officers’ Certificate required by Section 10.04) shall include the
following: 
 (f) a statement that each individual signing such certificate or opinion has read all covenants and conditions of this
Indenture relating to such proposed action, including the definitions herein relating thereto; 
 (g) a brief statement as to the nature and
scope of the examination or investigation upon which the statements or opinions contained in such certificate or opinion are based; 
 (h) a
statement that, in the opinion of each such individual, he or she has made such examination or investigation as is necessary to enable him or her to express an informed opinion as to whether or not such covenant or condition has been complied with;
and 
 (i) a statement as to whether, in the opinion of each such individual, such condition or covenant has been complied with. 

Section 1.03 Form of Documents Delivered to Trustee. In any case where several matters are required to be certified by, or covered
by an opinion of, any specified Person, it is not necessary that all such matters be certified by, or covered by the opinion of, only one such Person, or that they be so certified or covered by only one document, but one such Person may certify or
give an opinion with respect to some matters and one or more other such Persons as to the other matters, and any such Person may certify or give an opinion as to such matters in one or several documents. 

Any certificate or opinion of an officer of the Company may be based, insofar as it relates to legal matters, upon a certificate or opinion
of, or representations by, legal counsel, unless such officer knows that any such certificate, opinion, or representation is erroneous. Any opinion of counsel for the Company may be based, insofar as it relates to factual matters, upon a certificate
or opinion of, or representations by, an officer or officers of the Company, unless such counsel knows that any such certificate, opinion, or representation is erroneous. 

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

  
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 Section 1.04 Acts of Securityholders. 

(a) Any request, demand, authorization, direction, notice, consent, waiver, or other action provided by this Indenture to be given or taken by
Securityholders may be embodied in and evidenced by one or more instruments of substantially similar tenor signed by such Securityholders in person or by an agent duly appointed in writing; and, except as herein otherwise expressly provided, such
action shall become effective when such instrument or instruments are delivered to the Trustee and (if expressly required by the applicable terms of this Indenture) to the Company. If any Securities are denominated in coin or currency other than
that of the United States, then for the purposes of determining whether the Holders of the requisite principal amount of Securities have taken any action as herein described, the principal amount of such Securities shall be deemed to be that amount
of United States dollars that could be obtained for such principal amount on the basis of the spot rate of exchange into United States dollars for the currency in which such Securities are denominated (as evidenced to the Trustee by a certificate
provided by a financial institution, selected by the Company, that maintains an active trade in the currency in question, acting as conversion agent) as of the date the taking of such action by the Holders of such requisite principal amount is
evidenced to the Trustee as provided in the immediately preceding sentence. Such instrument or instruments (and the action embodied therein and evidenced thereby) are herein sometimes referred to as the “Act” of the Securityholders
signing such instrument or instruments. Proof of execution of any such instrument or of a writing appointing any such agent shall be sufficient for any purpose of this Indenture and (subject to Section 6.01) conclusive in favor of the Trustee
and the Company, if made in the manner provided in this Section. 
 (b) The fact and date of the execution by any Person of any such
instrument or writing may be proved by the affidavit of a witness to such execution or by the certificate of any notary public or other officer authorized by law to take acknowledgments of deeds, certifying that the individual signing such
instrument or writing acknowledged to him the execution thereof. Where such execution is by an officer of a corporation or a member of a partnership, on behalf of such corporation or partnership, such certificate or affidavit shall also constitute
sufficient proof of his authority. The fact and date of the execution of any such instrument or writing, or the authority of the person executing the same, may also be proved in any other manner which the Trustee deems sufficient. 

(c) The ownership of Securities shall for all purposes be determined by reference to the Security Register, as such register shall exist as of
the applicable date. 
 (d) If the Company shall solicit from the Holders any request, demand, authorization, direction, notice, consent,
waiver or other action, the Company may, at its option, by Board Resolution, fix in advance a Record Date for the determination of Holders entitled to give such request, demand, authorization, direction, notice, consent, waiver or other action, but
the Company shall have no obligation to do so. If such Record Date is fixed, such request, demand, authorization, direction, notice, consent, waiver or other action may be given before or after such Record Date, but only the Holders of record at the
close of business on such Record Date shall be deemed to be Holders for the purpose of determining whether Holders of the requisite proportion of Securities Outstanding have authorized or agreed or consented to such request, demand, authorization,
direction, notice, consent, waiver or other action, and for that purpose the Securities Outstanding shall be computed as of such Record Date; provided that no such authorization, agreement or consent by the Holders on such Record Date shall be
deemed effective unless it shall become effective pursuant to the provisions of this Indenture not later than six months after such Record Date. 

(e) Any request, demand, authorization, direction, notice, consent, waiver or other action by the Holder of any Security shall bind each
subsequent Holder of such Security, and each Holder of any Security issued upon the registration of transfer thereof or in exchange therefor or in lieu thereof, with respect to anything done or suffered to be done by the Trustee or the Company in
reliance upon such action, whether or not notation of such action is made upon such Security. 
 Section 1.05 Notices, etc., to
Trustee and Company. Any request, order, authorization, direction, consent, waiver, or other action to be taken by the Trustee, the Company, or the Securityholders hereunder (including any Authentication Order), and any notice to be given to the
Trustee or the Company with respect to any action taken or to be taken by the Trustee, the Company, or the Securityholders hereunder, shall be sufficient if made in writing and 

  
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 (a) (if to be furnished or delivered to or filed with the Trustee by the Company or any
Securityholder) delivered to the Trustee at its Corporate Trust Office, Attention: [                    ], or 

(b) (if to be furnished or delivered to the Company by the Trustee or any Securityholder, and except as otherwise provided in
Section 5.01(d) and, in the case of a request for repayment, except as specified in the Security carrying the right to repayment) mailed to the Company, first-class postage prepaid, at its principal office (as specified in the first paragraph
of this instrument), Attention: [                    ], or at any other address hereafter furnished in writing by the Company to the Trustee. 

Section 1.06 Notice To Securityholders; Waiver. Where this Indenture or any Security provides for notice to Securityholders of any
event, such notice shall be sufficiently given (unless otherwise expressly provided herein or in such Security) if in writing and mailed, first-class postage prepaid, to each Securityholder affected by such event, at his or her address as it appears
in the Security Register as of the applicable Record Date, not later than the latest date or earlier than the earliest date prescribed by this Indenture or such Security for the giving of such notice. In any case where notice to Securityholders is
given by mail, neither the failure to mail such notice nor any defect in any notice so mailed to any particular Securityholder shall affect the sufficiency of such notice with respect to other Securityholders. Where this Indenture or any Security
provides for notice in any manner, such notice may be waived in writing by the Person entitled to receive such notice, either before or after the event, and such waiver shall be the equivalent of such notice. Waivers of notice by Securityholders
shall be filed with the Trustee, but such filing shall not be a condition precedent to the validity of any action taken in reliance upon such waiver. 

In case, by reason of the suspension of regular mail service as a result of a strike, work stoppage or otherwise, it shall be impractical to
mail notice of any event to any Securityholder when such notice is required to be given pursuant to any provision of this Indenture or the applicable Security, then any method of notification as shall be satisfactory to the Trustee and the Company
shall be deemed to be sufficient for the giving of such notice. 
 Section 1.07 Conflict with Trust Indenture Act. If any
provision hereof limits, qualifies or conflicts with another provision hereof which is required to be included in this Indenture by any of the provisions of the TIA, such required provision shall control. 

Section 1.08 Effect of Headings and Table of Contents. The Article and Section headings herein and the Table of Contents hereof
are for convenience only and shall not affect the construction of any provision of this Indenture. 
 Section 1.09 Successors and
Assigns. All covenants and agreements in this Indenture by the Company shall bind its successors and assigns, whether so expressed or not. 

Section 1.10 Separability Clause. In case any provision in this Indenture or in the Securities shall be invalid, illegal or
unenforceable, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby. 

Section 1.11 Benefits of Indenture. Nothing in this Indenture or in any Securities, express or implied, shall give to any Person,
other than the parties hereto, their successors hereunder, the Authenticating Agent, the Security Registrar, any Paying Agent, and the Holders of Securities (or such of them as may be affected thereby), any benefit or any legal or equitable right,
remedy or claim under this Indenture. 
 Section 1.12 Governing Law. This Indenture shall be governed by and construed in
accordance with the laws of the State of New York. 
 Section 1.13 Counterparts. This instrument may be executed in any number
of counterparts, each of which when so executed shall be deemed to be an original, but all of which shall together constitute but one and the same instrument. 

  
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 Section 1.14 Judgment Currency. The Company agrees, to the fullest extent that it may
effectively do so under applicable law, that (a) if for the purpose of obtaining judgment in any court with respect to the Securities of any series it is necessary to convert the sum due in respect of the principal, premium, if any, or
interest, if any, payable with respect to such Securities into a currency in which a judgment can be rendered (the “Judgment Currency”), the rate of exchange from the currency in which payments under such Securities is payable (the
“Required Currency”) into the Judgment Currency shall be the highest bid quotation (assuming European-style quotation — i.e., Required Currency per Judgment Currency) received by the Company from three
recognized foreign exchange dealers in the City of New York for the purchase of the aggregate amount of the judgment (as denominated in the Judgment Currency) on the New York Business Day preceding the date on which a final unappealable judgment is
rendered, for settlement on such payment date, and at which the applicable dealer timely commits to execute a contract, and (b) the Company’s obligations under this Indenture to make payments in the Required Currency (i) shall not be
discharged or satisfied by any tender, or by any recovery pursuant to any judgment (whether or not entered in accordance with the preceding clause (a)), in any currency other than the Required Currency, except to the extent that such tender or
recovery shall result in the actual receipt by the judgment creditor of the full amount of the Required Currency expressed to be payable in respect of such payments, (ii) shall be enforceable as an alternative or additional cause of action for
the purpose of recovering in the Required Currency the amount, if any, by which such actual receipt shall fall short of the full amount of the Required Currency so expressed to be payable, and (iii) shall not be affected by judgment being
obtained for any other sum due under this Indenture. 
 Section 1.15 Legal Holidays. In any case where any Interest Payment
Date, Redemption Date, Repayment Date or Maturity of any Security shall not be a New York Business Day at any Place of Payment, then (notwithstanding any other provision of this Indenture or of the Securities) payment of interest or principal (and
premium, if any) need not be made at such Place of Payment on such date, but may be made on the next succeeding Business Day at such Place of Payment with the same force and effect as if made on the Interest Payment Date, Redemption Date, Repayment
Date or at Maturity, provided that no interest shall accrue for the period from and after such Interest Payment Date, Redemption Date, Repayment Date or Maturity, as the case may be. 

ARTICLE II 
 SECURITY
FORMS 
 Section 2.01 Forms Generally. The Securities of each series shall have such appropriate insertions, omissions,
substitutions and other variations as are required or permitted by this Indenture and may have such letters, numbers or other marks of identification and such legends or endorsements placed thereon, as may be required to comply with the rules of any
securities exchange, or as may, consistently herewith, be determined by the officers executing such Securities, as evidenced by their execution of the Securities. Any portion of the text of any Security may be set forth on the reverse thereof, with
an appropriate reference thereto on the face of the Security. 
 The definitive Securities, if any, shall be printed, lithographed or
engraved or produced by any combination of these methods on steel engraved borders or may be produced in any other manner permitted by the rules of any securities exchange, all as determined by the officers executing such Securities, as evidenced by
their execution of such Securities. 
 Section 2.02 Forms of Securities. Each Security shall be in one of the forms approved
from time to time by or pursuant to any Board Resolution, or established in one or more indentures supplemental hereto. Prior to the delivery to the Trustee for authentication of any Security in any form approved by or pursuant to a Board
Resolution, the Company shall deliver to the Trustee a copy of such Board Resolution, together with a true and correct copy of the form of Security which has been approved thereby, or, if a Board Resolution authorizes a specific officer or officers
to approve a form of Security, together with a certificate of such officer or officers approving the form of Security attached thereto, provided, however, that with respect to all Securities issued pursuant to the same Board
Resolution, the required copy of such Board Resolution, together with the appropriate attachment, need be delivered only once. Any form of Security approved by or pursuant to a Board Resolution must be acceptable as to form to the Trustee, such
acceptance to be evidenced by the Trustee’s authentication of Securities in that form or by a certificate signed by a Responsible Officer of the Trustee and delivered to the Company. 

  
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 Section 2.03 Securities in Global Form. If Securities of a series are issuable in
whole or in part in global form, the global security representing such Securities may provide that it shall represent the aggregate amount of Outstanding Securities from time to time endorsed thereon and may also provide that the aggregate amount of
Outstanding Securities represented thereby may from time to time be reduced to reflect exchanges or increased to reflect the issuance of additional Securities. Any endorsement of a Security in global form to reflect the amount (or any increase or
decrease in the amount) of Outstanding Securities represented thereby shall be made in such manner and by such Person or Persons as shall be specified therein or in the Authentication Order delivered to the Trustee pursuant to Section 3.03
hereof. 
 Section 2.04 Form of Trustee’s Certificate of Authentication. The form of Trustee’s Certificate of
Authentication for any Security issued pursuant to this Indenture shall be substantially as follows: 
 TRUSTEE’S CERTIFICATE OF
AUTHENTICATION 
 This is one of the Securities of the series designated therein referred to in the within-mentioned Indenture.
[                    ], as Trustee, 
  

			
	By:	 	  

		 	Authorized Officer:

 ARTICLE III 

THE SECURITIES 

Section 3.01 General Title; General Limitations; Issuable in Series; Terms of Particular Series. 

(a) The aggregate principal amount of Securities that may be authenticated, delivered, and Outstanding at any time under this Indenture is not
limited. 
 (b) The Securities may be issued in one or more series in such aggregate principal amount as may from time to time be authorized
by the Board of Directors. All Securities of a series issued under this Indenture shall in all respects be equally and ratably entitled to the benefits hereof, without preference, priority, or distinction on account of the actual time of the
authentication and delivery or Scheduled Maturity Date thereof. 
 (c) Each series of Securities shall be created either by or pursuant to
one or more Board Resolutions, by an Officers’ Certificate or by one or more indentures supplemental hereto. Any such Board Resolution or supplemental indenture (or, in the case of a series of Securities created pursuant to a Board Resolution,
any officer or officers authorized by such Board Resolution) shall establish the terms of any such series of Securities, including the following (as and to such extent as may be applicable): 

(1) the title of such series; 

(2) the limit, if any, upon the aggregate principal amount or issue price of the Securities of such series; 

(3) the issue date or issue dates of the Securities of such series; 

(4) the Scheduled Maturity Date of the Securities of such series; 

(5) the place or places where the principal, premium, if any, interest, if any, and additional amounts, if any, payable with respect to the
Securities of such series shall be payable; 
 (6) whether the Securities of such series will be issued at par or at a premium over or a
discount from their face amount; 

  
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 (7) the rate or rates (which may be fixed or variable) at which the Securities of such series
shall bear interest, if any, and, if applicable, the method by which such rate or rates may be determined; 
 (8) the date or dates (or the
method by which such date or dates may be determined) from which interest, if any, shall accrue, and the Interest Payment Dates on which such interest shall be payable; 

(9) the rights, if any, to defer payments of interest on the Securities by extending the interest payment periods and the duration of such
extension; 
 (10) the period or periods within which, the Redemption Price(s) or Repayment Price(s) at which, and any other terms and
conditions upon which the Securities of such series may be redeemed or repaid, in whole or in part, by the Company; 
 (11) the obligation,
if any, of the Company to redeem, repay, or purchase any of the Securities of such series pursuant to any sinking fund, mandatory redemption, purchase obligation, or analogous provision at the option of a Holder thereof, and the period or periods
within which, the Redemption Price(s) or Repayment Price(s) or other price or prices at which, and any other terms and conditions upon which the Securities of such series shall be redeemed, repaid, or purchased, in whole or in part, pursuant to such
obligation; 
 (12) the issuance of the Securities of such series in whole or in part in global form and, if so, the identity of the
Depositary for such global security and the terms and conditions, if any, upon which interests in the Securities represented by such global security may be exchanged, in whole or in part, for the individual Securities represented thereby (if other
than as provided in Section 3.05); 
 (13) whether such securities are subordinated securities and if so, the provisions for such
subordination; 
 (14) the denominations in which the Securities of such series will be issued (which may be any denomination as set forth
in the terms of such Securities) if other than U.S. $1,000 or an integral multiple thereof; 
 (15) whether and under what circumstances
additional amounts on the Securities of such series shall be payable in respect of any taxes, assessments, or other governmental charges withheld or deducted and, if so, whether the Company will have the option to redeem such Securities rather than
pay such additional amounts; 
 (16) the basis upon which interest shall be calculated; 

(17) if the Securities of such series are to be issuable in definitive form (whether upon original issue or upon exchange of a temporary
Security for a definitive Security of such series) only upon receipt of certain certificates or other documents or upon satisfaction of other conditions, then the form and terms of such certificates, documents, and/or conditions; 

(18) the exchange or conversion of the Securities of that series, whether or not at the option of the Holders thereof, for or into new
Securities of a different series or for or into any other securities which may include shares of Capital Stock of the Company or any Subsidiary of the Company or securities directly or indirectly convertible into or exchangeable for any such shares
or securities of entities unaffiliated with the Company or any Subsidiary of the Company; 
 (19) if other than U.S. dollars, the foreign or
composite currency or currencies (each such currency a “Specified Currency”) in which the Securities of such series shall be denominated and in which payments of principal, premium, if any, interest, if any, or additional amounts,
if any, payable with respect to such Securities shall or may be payable; 

  
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 (20) if the principal, premium, if any, interest, if any, or additional amounts, if any, payable
with respect to the Securities of such series are to be payable in any currency other than that in which the Securities are stated to be payable, whether at the election of the Company or of a Holder thereof, the period or periods within which, and
the terms and conditions upon which, such election may be made; 
 (21) if the amount of any payment of principal, premium, if any,
interest, if any, or other sum payable with respect to the Securities of such series may be determined by reference to the relative value of one or more Specified Currencies, commodities, securities, or instruments, the level of one or more
financial or non-financial indices, or any other designated factors or formulas, the manner in which such amounts shall be determined; 

(22) the exchange of Securities of such series, at the option of the Holders thereof, for other Securities of the same series of the same
aggregate principal amount of a different authorized kind or different authorized denomination or denominations, or both; 
 (23) the
appointment by the Trustee of an Authenticating Agent in one or more places other than the Corporate Trust Office of the Trustee, with power to act on behalf of the Trustee, and subject to its direction, in the authentication and delivery of the
Securities of such series; 
 (24) any trustees, depositaries, paying agents, transfer agents, exchange agents, conversion agents,
registrars, or other agents with respect to the Securities of such series if other than the Trustee, Paying Agent and Security Registrar named herein; 

(25) the portion of the principal amount of Securities of such series, if other than the principal amount thereof, that shall be payable upon
declaration of acceleration of the Maturity thereof pursuant to Section 5.02 or provable in bankruptcy pursuant to Section 5.04; 

(26) any Event of Default with respect to the Securities of such series, if not set forth herein, or any modification of any Event of Default
set forth herein with respect to such series; 
 (27) any covenant solely for the benefit of the Securities of such series; 

(28) the inapplicability of Section 4.02 and Section 4.03 of this Indenture to the Securities of such series and if
Section 4.03 is applicable, the covenants subject to Covenant Defeasance under Section 4.03; and 
 (29) any other terms of the
securities of such series (which terms shall not be inconsistent with the provisions of this Indenture, but which may modify or delete any provision of this Indenture insofar as it applies to such series). 

If all of the Securities issuable by or pursuant to any Board Resolution are not to be issued at one time, it shall not be necessary to
deliver the Officers’ Certificate and Opinion of Counsel required by Section 3.03 hereof at the time of issuance of each such Security, but such Officers’ Certificate and Opinion of Counsel shall be delivered at or before the time of
issuance of the first such Security. 
 If any series of Securities shall be established by action taken pursuant to any Board Resolution,
the execution by the officer or officers authorized by such Board Resolution of an Authentication Order (as defined in Section 3.03 below) with respect to the first Security of such series to be issued, and the delivery of such Authentication
Order to the Trustee at or before the time of issuance of the first Security of such series, shall constitute a sufficient record of such action. Except as otherwise permitted by Section 3.03, if all of the Securities of any such series are not
to be issued at one time, the Company shall deliver an Authentication Order with respect to each subsequent issuance of Securities of such series, but such Authentication Orders may be executed by any authorized officer or officers of the Company,
whether or not such officer or officers would have been authorized to establish such series pursuant to the aforementioned Board Resolution. 

Unless otherwise provided by or pursuant to the Board Resolution or supplemental indenture creating such series (i) a series may be
reopened for issuances of additional Securities of such series, and (ii) all Securities of the same series shall be substantially identical, except for the initial Interest Payment Date, issue price, initial interest accrual date and the amount
of the first interest payment. 

  
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 The form of the Securities of each series shall be established in a supplemental indenture or by
or pursuant to the Board Resolution creating such series. The Securities of each series shall be distinguished from the Securities of each other series in such manner as the Board of Directors or its authorized representative or representatives may
determine. 
 Unless otherwise provided with respect to Securities of a particular series, the Securities of any series may only be issuable
in registered form, without coupons. 
 Section 3.02 Denominations and Currency. The Securities of each series shall be issuable
in such denominations and currency as shall be provided in the provisions of this Indenture or by or pursuant to the Board Resolution or supplemental indenture creating such series. In the absence of any such provisions with respect to the
Securities of any series, the Securities of that series shall be issuable only in fully registered form in denominations of U.S. $1,000 and any integral multiple thereof. 

Section 3.03 Execution, Authentication and Delivery, and Dating. The Securities shall be executed on behalf of the Company by the
president, any vice president, the treasurer or any assistant treasurer and attested by the secretary or any one of its assistant secretaries, under its corporate seal. The signature of any of these officers on the Securities may be manual or
facsimile. The seal of the Company, if set forth thereon, may be in the form of a facsimile thereof and may be impressed, affixed, imprinted, or otherwise reproduced on the Securities. Typographical and other minor errors or defects in any such
reproduction of the seal or any such signature shall not affect the validity or enforceability of any Security that has been duly authenticated and delivered by the Trustee. 

Unless otherwise provided in the form of Security for any series, all Securities shall be dated the date of their authentication. 

Securities bearing the manual or facsimile signatures of individuals who were at any time the proper officers of the Company shall bind the
Company, notwithstanding that such individuals or any of them have ceased to hold such offices prior to the authentication and delivery of such Securities or did not hold such offices at the date of such Securities. 

At any time and from time to time after the execution and delivery of this Indenture, the Company may deliver Securities to the Trustee for
authentication, together with a Company Order for authentication and delivery (such Order an “Authentication Order”) with respect to such Securities, and the Trustee shall, upon receipt of such Authentication Order, in accordance
with procedures acceptable to the Trustee set forth in the Authentication Order, and subject to the provisions hereof, authenticate and deliver such Securities to such recipients as may be specified from time to time pursuant to such Authentication
Order. The material terms of such Securities shall be determinable by reference to such Authentication Order and procedures. If provided for in such procedures, such Authentication Order may authorize authentication and delivery of such Securities
pursuant to oral instructions from the Company or its duly authorized agent, which instructions shall be promptly confirmed in writing. In authenticating such Securities and accepting the additional responsibilities under this Indenture in relation
to such Securities, the Trustee shall be entitled to receive, and (subject to the provisions of Section 6.01 hereof) shall be fully protected in relying upon: 

(1) an executed supplemental indenture, if any; 

(2) an Officers’ Certificate, certifying as to the authorized form or forms and terms of such Securities; and 

(3) an Opinion of Counsel, stating that: 

(a) the form or forms and terms of such Securities have been established by and in conformity with the provisions of this Indenture;
provided that if all such Securities are not to be issued at the same time, such Opinion of Counsel may state that such terms will be established in conformity with the provisions of this Indenture, subject to any conditions specified in such
Opinion of Counsel; and 

  
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 (b) such Securities, when authenticated and delivered by the Trustee and issued by the Company in
the manner and subject to any conditions specified in such Opinion of Counsel, will constitute valid and legally binding obligations of the Company, enforceable in accordance with their terms, subject to bankruptcy, insolvency, moratorium,
reorganization, and other laws of general applicability relating to or affecting the enforcement of creditors’ rights and to general principles of equity; provided, however, that if all Securities issuable by or pursuant to a Board Resolution
or supplemental indenture are not to be originally issued at one time, it shall not be necessary to deliver the Officers’ Certificate or Opinion of Counsel otherwise required pursuant to this paragraph at or prior to the time of authentication
of each such Security if such documents are delivered at or prior to the time of authentication upon original issuance of the first such Security to be issued. After the original issuance of the first such Security to be issued, any separate request
by the Company that the Trustee authenticate such Securities for original issuance will be deemed to be a certification by the Company that it is in compliance with all conditions precedent provided for in this Indenture relating to the
authentication and delivery of such Securities. 
 The Trustee shall not be required to authenticate such Securities if the issue thereof
will adversely affect the Trustee’s own rights, duties, or immunities under the Securities and this Indenture. 
 If the Company shall
establish pursuant to Section 3.01 that Securities of a series may be issued in whole or in part in global form, then the Company shall execute, and the Trustee shall (in accordance with this Section 3.03 and the Authentication Order with
respect to such series) authenticate and deliver, one or more Securities in global form that (i) shall represent and shall be denominated in an aggregate amount equal to the aggregate principal amount of the Outstanding Securities of such
series to be represented by such one or more Securities in global form, (ii) shall be registered, in the name of the Depositary for such Security or Securities in global form, or in the name of a nominee of such Depositary, (iii) shall be
delivered to such Depositary or pursuant to such Depositary’s instruction, and (iv) shall bear a legend substantially as follows: “Unless and until it is exchanged in whole or in part for Securities in certificated form, this Security
may not be transferred except as a whole by the Depositary to a nominee of the Depositary, or by a nominee of the Depositary to the Depositary or another nominee of the Depositary, or by the Depositary or any such nominee to a successor Depositary
or a nominee of such successor Depositary.” Each Depositary designated pursuant to Section 3.01 for a Security in global form must, at the time of its designation and at all times while it serves as Depositary, be a clearing agency
registered under the Securities Exchange Act of 1934 and any other applicable statute or regulation. 
 No Security shall be entitled to any
benefit under this Indenture or be valid or obligatory for any purpose unless there appears on such Security a certificate of authentication substantially in the form provided for herein executed by the Trustee by manual signature of an authorized
officer, and such certificate upon any Security shall be conclusive evidence, and the only evidence, that such Security has been duly authenticated and delivered hereunder. 

Section 3.04 Temporary Securities. Pending the preparation of definitive Securities of any series, the Company may execute, and,
upon receipt of the documents required by Sections 2.02, 3.01 and 3.03 hereof, together with an Authentication Order, the Trustee shall authenticate and deliver, temporary Securities of such series that are printed, lithographed, typewritten,
mimeographed, or otherwise produced, in any authorized denomination, substantially of the tenor of the definitive Securities in lieu of which they are issued in registered form, without coupons, and with such appropriate insertions, omissions,
substitutions, and other variations as the officers executing such Securities may determine, as evidenced by their execution of such Securities. In the case of Securities of any series for which a temporary Security may be issued in global form,
such temporary global security shall represent all of the Outstanding Securities of such series and tenor. 
 Except in the case of
temporary Securities in global form, which shall be exchanged in accordance with the provisions thereof, if temporary Securities of any series are issued, the Company will cause definitive Securities of such series to be prepared without
unreasonable delay. After the preparation of definitive Securities, the temporary Securities of such series shall be exchangeable, at the Corporate Trust Office of the Trustee, or at such 

  
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other office or agency as may be maintained by the Company in a Place of Payment pursuant to Section 10.02 hereof, for definitive Securities of such series having identical terms and
provisions, upon surrender of the temporary Securities of such series, at the Company’s own expense and without charge to the Holder; and upon surrender for cancellation of any one or more temporary Securities of any series, the Company shall
execute and the Trustee shall authenticate and deliver in exchange therefor a like principal amount of definitive Securities of such series in authorized denominations containing identical terms and provisions. Unless otherwise specified as
contemplated by Section 3.01 with respect to a temporary Security in global form, until so exchanged, the temporary Securities of such series shall in all respects be entitled to the same benefits under this Indenture as definitive Securities
of such series. 
 Section 3.05 Registration, Transfer and Exchange. With respect to the Securities of each series, the Trustee
shall keep a register (herein sometimes referred to as the “Security Register”) which shall provide for the registration of Securities of such series, and for transfers of Securities of such series, in accordance with information to
be provided to the Trustee by the Company, subject to such reasonable regulations as the Trustee may prescribe. Such register shall be in written form or in any other form capable of being converted into written form within a reasonable time. At all
reasonable times the information contained in such register or registers shall be available for inspection at the Corporate Trust Office of the Trustee or at such other office or agency to be maintained by the Company pursuant to Section 10.02
hereof. 
 Upon due presentation for registration of transfer of any Security of any series at the Corporate Trust Office of the Trustee or
at any other office or agency maintained by the Company with respect to that series pursuant to Section 10.02 hereof, the Company shall execute, and the Trustee shall authenticate and deliver, in the name of the designated transferee or
transferees, one or more new Securities of such series of any authorized denominations, of like aggregate principal amount, tenor, terms and Scheduled Maturity Date. 

Any other provision of this Section 3.05 notwithstanding, unless and until it is exchanged in whole or in part for the individual
Securities represented thereby, in definitive form, a Security in global form representing all or a portion of the Securities of a series may not be transferred except as a whole by the Depositary for such series to a nominee of such Depositary, or
by a nominee of such Depositary to such Depositary or another nominee of such Depositary, or by such Depositary or any such nominee to a successor Depositary for such series or a nominee of such successor Depositary. 

At the option of the Holder, Securities of any series may be exchanged for other Securities of such series of any authorized denominations, of
like aggregate principal amount, tenor, terms and Scheduled Maturity Date, upon surrender of the Securities to be exchanged at such office or agency. Whenever any Securities are so surrendered for exchange, the Company shall execute, and the Trustee
shall authenticate and deliver, the Securities which the Securityholder making the exchange is entitled to receive. 
 If at any time the
Depositary for the Securities of a series represented by one or more Securities in global form notifies the Company that it is unwilling or unable to continue as Depositary for the Securities of such series, or if at any time the Depositary for the
Securities of such series shall no longer be eligible under Section 3.03 hereof, the Company, by Company Order, shall appoint a successor Depositary with respect to the Securities of such series. If a successor Depositary for the Securities of
such series is not appointed by the Company within 90 days after the Company receives such notice or becomes aware of such ineligibility, the Company’s election pursuant to Section 3.01 that such Securities be represented by one or more
Securities in global form shall no longer be effective with respect to the Securities of such series and the Company will execute, and the Trustee, upon receipt of an Authentication Order for the authentication and delivery of definitive Securities
of such series, will authenticate and deliver Securities of such series in definitive form, in authorized denominations, in an aggregate principal amount, and of like terms and tenor, equal to the principal amount of the Security or Securities in
global form representing such series, in exchange for such Security or Securities in global form. 
 The Company may at any time and in its
sole discretion and subject to the procedures of the Depositary determine that individual Securities of any series issued in global form shall no longer be represented by such Security or Securities in global form. In such event the Company will
execute, and the Trustee, upon receipt of an Authentication Order for the authentication and delivery of definitive Securities of such series and of the same terms and tenor, will authenticate and deliver Securities of such series in definitive
form, in authorized denominations, and in aggregate principal amount equal to the principal amount of the Security or Securities in global form representing such series in exchange for such Security or Securities in global form. 

  
 -15- 

 If specified by the Company pursuant to Section 3.01 with respect to a series of Securities
issued in global form, the Depositary for such series of Securities may surrender a Security in global form for such series of Securities in exchange in whole or in part for Securities of such series in definitive form and of like terms and tenor on
such terms as are acceptable to the Company and such Depositary. Thereupon, the Company shall execute, and the Trustee upon receipt of an Authentication Order for the authentication and delivery of definitive Securities of such series, shall
authenticate and deliver, without service charge: 
 (a) to each Person specified by such Depositary, a new definitive Security or
Securities of the same series and of the same tenor and terms, in authorized denominations, in aggregate principal amount equal to and in exchange for such Person’s beneficial interest in the Security in global form; and 

(b) to such Depositary, a new Security in global form in a denomination equal to the difference, if any, between the principal amount of the
surrendered Security in global form and the aggregate principal amount of the definitive Securities delivered to Holders pursuant to clause (a) above. 

Upon the exchange of a Security in global form for Securities in definitive form, such Security in global form shall be canceled by the
Trustee or an agent of the Company or the Trustee. Securities issued in definitive form in exchange for a Security in global form pursuant to this Section 3.05 shall be registered in such names and in such authorized denominations as the
Depositary for such Security in global form, pursuant to instructions from its direct or indirect participants or otherwise, shall instruct the Trustee or an agent of the Company or the Trustee in writing. The Trustee or such agent shall deliver
such Securities to or as directed by the Persons in whose names such Securities are so registered or to the Depositary. 
 Whenever any
securities are so surrendered for exchange, the Company shall execute, and the Trustee shall authenticate and deliver, the Securities which the Holder making the exchange is entitled to receive. 

All Securities issued upon any registration of transfer or exchange of Securities shall be the valid obligations of the Company, evidencing
the same debt, and entitled to the same benefits under this Indenture, as the Securities surrendered upon such transfer or exchange. 

Every Security presented or surrendered for registration of transfer, exchange, redemption or payment shall (if so required by the Company or
the Trustee) be duly endorsed, or be accompanied by a written instrument of transfer in form satisfactory to the Company and the Security Registrar duly executed by the Holder thereof or his attorney duly authorized in writing. 

Unless otherwise provided in the Security to be transferred or exchanged, no service charge shall be imposed for any registration of transfer
or exchange of Securities, but the Company may (unless otherwise provided in such Security) require payment of a sum sufficient to cover any tax or other governmental charge that may be imposed in connection with any transfer or exchange of
Securities, other than exchanges pursuant to Section 3.04, 3.06, 9.06 and 11.07 hereof not involving any transfer. 
 The Company shall
not be required to (i) issue, register the transfer of, or exchange any Security of any series during a period beginning at the opening of business 15 days before the day of the mailing of a notice of redemption of Securities of such series
selected for redemption under Section 11.03 and ending at the close of business on the date of such mailing, or (ii) register the transfer of or exchange any Security so selected for redemption in whole or in part, except in the case of
any Security to be redeemed in part, the portion thereof not to be redeemed. 
 Section 3.06 Mutilated, Destroyed, Lost and Stolen
Securities. If (i) any mutilated Security is surrendered to the Trustee, or the Company and the Trustee receive evidence to their satisfaction of the destruction, loss or theft of any Security, and (ii) there is delivered to the
Company and the Trustee such security or indemnity as may be required by them to save each of them harmless, then, in the absence of notice to the Company or the 

  
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Trustee that such Security has been acquired by a bona fide purchaser, the Company may in its discretion execute and upon request of the Company the Trustee shall authenticate and deliver, in
exchange for or in lieu of any such mutilated, destroyed, lost or stolen Security, a new Security of like tenor, terms, series, Scheduled Maturity Date, and principal amount, bearing a number not contemporaneously outstanding. 

In case any such mutilated, destroyed, lost or stolen Security has become or is about to become due and payable, the Company in its discretion
may, instead of issuing a new Security, pay such Security. 
 Upon the issuance of any new Security under this Section, the Company may
require the payment of a sum sufficient to cover any tax or other governmental charge that may be imposed in relation thereto and any other expenses (including the fees and expenses of the Trustee) connected therewith. 

Every new Security issued pursuant to this Section in lieu of any destroyed, lost or stolen Security shall constitute an original additional
contractual obligation of the Company, whether or not the destroyed, lost or stolen Security shall be at any time enforceable by anyone, and shall be entitled to all the benefits of this Indenture equally and proportionately with any and all other
Securities of the same series duly issued hereunder. 
 The provisions of this Section are exclusive and shall preclude (to the extent
lawful) all other rights and remedies with respect to the replacement or payment of mutilated, destroyed, lost or stolen Securities. 

Section 3.07 Payment of Interest; Interest Rights Preserved. Interest on any Security which is payable and is punctually paid or
duly provided for on any Interest Payment Date shall, if so provided in such Security, be paid to the Person in whose name that Security (or one or more Predecessor Securities) is registered at the close of business on the applicable Record Date,
notwithstanding any transfer or exchange of such Security subsequent to such Record Date and prior to such Interest Payment Date. (unless such Interest Payment Date is also the date of Maturity of such Security). 

Any interest on any Security which is payable, but is not punctually paid or duly provided for, on any Interest Payment Date (herein called
“Defaulted Interest”) shall forthwith cease to be payable to the registered Holder on the applicable Record Date by virtue of his having been such Holder; and, except as hereinafter provided, such Defaulted Interest may be paid by
the Company, at its election in each case, as provided in clause (a) or clause (b) below: 
 (a) The Company may elect to make
payment of any Defaulted Interest to the Persons in whose names any such Securities (or their respective Predecessor Securities) are registered at the close of business on a Special Record Date for the payment of such Defaulted Interest, which shall
be fixed in the following manner. The Company shall notify the Trustee in writing of the amount of Defaulted Interest proposed to be paid on each such Security and the date of the proposed payment, and at the same time the Company shall deposit with
the Trustee an amount of money equal to the aggregate amount proposed to be paid in respect of such Defaulted Interest or shall make arrangements satisfactory to the Trustee for such deposit prior to the date of the proposed payment, such money when
deposited to be held in trust for the benefit of the Persons entitled to such Defaulted Interest as in this clause provided. Thereupon the Trustee shall fix a Special Record Date for the payment of such Defaulted Interest which shall be not more
than 15 nor less than 10 days prior to the date of the proposed payment and not less than 10 days after the receipt by the Trustee of the notice of the proposed payment. The Trustee shall promptly notify the Company of such Special Record Date and,
in the name and at the expense of the Company, shall cause notice of the proposed payment of such Defaulted Interest and the Special Record Date therefor to be mailed, first-class postage prepaid, to the Holder of each such Security at his address
as it appears in the Security Register, not less than 10 days prior to such Special Record Date. Notice of the proposed payment of such Defaulted Interest and the Special Record Date therefor having been mailed as aforesaid, such Defaulted Interest
shall be paid to the Persons in whose names such Securities (or their respective Predecessor Securities) are registered at the close of business on such Special Record Date and shall no longer be payable pursuant to the following clause (b). 

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

  
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 Interest on Securities of any series that bear interest may be paid by mailing a check to the
address of the Person entitled thereto at such address as shall appear in the Securities Register for such series or by such other means as may be specified in the form of such Security. 

Subject to the foregoing provisions of this Section 3.07 and the provisions of Section 3.05 hereof, each Security delivered under
this Indenture upon registration of transfer of or in exchange for or in lieu of any other Security shall carry the rights to interest accrued and unpaid, and to accrue, which were carried by such other Security. 

Section 3.08 Persons Deemed Owners. Prior to due presentment of a Security for registration of transfer, the Company, the Trustee,
and any agent of the Company or the Trustee may treat the Person in whose name any Security is registered on the applicable Record Date(s) as the owner of such Security for the purpose of receiving payment of principal, premium, if any, interest, if
any (subject to Sections 3.05 and 3.07 hereof), and any additional amounts payable with respect to such Security, and for all other purposes whatsoever, whether or not such Security be overdue, and neither the Company, the Trustee, nor any agent of
the Company or the Trustee shall be affected by notice to the contrary. 
 None of the Company, the Trustee, any Authenticating Agent, any
Paying Agent, the Security Registrar, or any Co-Security Registrar will have any responsibility or liability for any aspect of the records relating to or payments made on account of beneficial ownership interests of a Security in global form or for
maintaining, supervising or reviewing any records relating to such beneficial ownership interests and each of them may act or refrain from acting without liability on any information relating to such records provided by the Depositary. 

Section 3.09 Cancellation. 

All Securities surrendered for payment, redemption, registration of transfer, exchange, or credit against a sinking or analogous fund shall, if
surrendered to any Person other than the Trustee, be delivered to the Trustee and, if not already canceled, shall be promptly canceled by it. The Company may at any time deliver to the Trustee for cancellation any Securities previously authenticated
and delivered hereunder which the Company may have acquired in any manner whatsoever, and all Securities so delivered shall be promptly canceled by the Trustee. Acquisition of such Securities by the Company shall not operate as a redemption or
satisfaction of the indebtedness represented by such Securities unless and until the same are delivered to the Trustee for cancellation. No Security shall be authenticated in lieu of or in exchange for any Securities canceled as provided in this
Section, except as expressly permitted by this Indenture. The Trustee shall dispose of all canceled Securities in accordance with its customary procedures and deliver a certificate of such disposition to the Company. 

Section 3.10 Computation of Interest. Unless otherwise provided as contemplated in Section 3.01, interest on the Securities
shall be calculated on the basis of a 360-day year of twelve 30-day months. 
 ARTICLE IV 

SATISFACTION AND DISCHARGE 

Section 4.01 Satisfaction and Discharge of Indenture. This Indenture shall cease to be of further effect with respect to any
series of Securities (except as to any surviving rights of conversion or transfer or exchange of Securities of such series expressly provided for herein or in the form of Security for such series and obligations described as surviving below), and
the Trustee, on demand of and at the expense of the Company, shall execute proper instruments acknowledging satisfaction and discharge of this Indenture as to such series, when 

(a) either 
 (i)
all Securities of that series theretofore authenticated and delivered (other than (A) Securities of such series which have been destroyed, lost, or stolen and which have been replaced or paid as provided in Section 3.06, and
(B) Securities of such series for whose payment money has theretofore been deposited in trust or segregated and held in trust by the Company and thereafter repaid to the Company or discharged from such trust, as provided in Section 4.07)
have been delivered to the Trustee canceled or for cancellation; or 

  
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 (ii) all such Securities of that series not theretofore delivered to the Trustee
canceled or for cancellation 
 (A) have become due and payable, or 

(B) will, in accordance with their Scheduled Maturity Date, become due and payable within one year, or 

(C) are to be called for redemption within one year under arrangements satisfactory to the Trustee for the giving of notice of
redemption by the Trustee in the name, and at the expense, of the Company, and, in any of the cases described in subparagraphs (A), (B), or (C) above, the Company has irrevocably deposited or caused to be deposited with the Trustee, as trust
funds in trust for the purpose, (x) an amount in money sufficient, (y) U.S. Government Obligations or Equivalent Government Securities which through the payment of interest and principal in respect thereof in accordance with their terms
will provide, not later than one day before the due date of any payment, money sufficient, or (z) a combination of (x) and (y) sufficient, in the opinion with respect to (y) and (z) of a nationally recognized firm of
independent public accountants expressed in a written certification thereof delivered to the Trustee, to pay and discharge the entire indebtedness on such Securities with respect to principal, premium, if any, and interest, if any, to the date of
such deposit (in the case of Securities which have become due and payable), or to the Scheduled Maturity Date or Redemption Date, as the case may be; provided, however , that if such U.S. Government Obligations or Equivalent Government Securities
are callable or redeemable at the option of the issuer thereof, the amount of such money, U.S. Government Obligations, and Equivalent Government Securities deposited with the Trustee must be sufficient to pay and discharge the entire indebtedness
referred to above if such issuer elects to exercise such call or redemption provisions at any time prior to the Scheduled Maturity Date or Redemption Date, as the case may be, and the Company, but not the Trustee, shall be responsible for monitoring
any such call or redemption provision; and 
 (b) the Company has paid or caused to be paid all other sums payable hereunder by the Company
with respect to the Securities of such series; and 
 (c) the Company has delivered to the Trustee an Officers’ Certificate and an
Opinion of Counsel, each stating that all conditions precedent herein provided for relating to the satisfaction and discharge of this Indenture with respect to the Securities of such series have been complied with. 

Notwithstanding the satisfaction and discharge of this Indenture with respect to any series of Securities, the obligations of the Company
under paragraph (a) of this Section 4.01 and its obligations to the Trustee with respect to that series under Section 6.07 shall survive, and the obligations of the Trustee under Sections 4.05, 4.07 and 10.03 shall survive. 

Section 4.02 Discharge and Defeasance. The provisions of this Section and Section 4.04 (insofar as relating to this Section)
shall apply to the Securities of each series unless specifically otherwise provided in a Board Resolution or indenture supplemental hereto provided pursuant to Section 3.01. In addition to discharge of this Indenture pursuant to
Section 4.01, in the case of any series of Securities with respect to which the exact amount described in subparagraph (a) of Section 4.04 can be determined at the time of making the deposit referred to in such subparagraph (a), the
Company shall be deemed to have paid and discharged the entire indebtedness on all the Securities of such a series as provided in this Section on and after the date the conditions set forth in Section 4.04 are satisfied, and the provisions of
this Indenture with respect to the Securities of such series shall no longer be in effect (except as to (i) rights of registration of transfer and exchange of Securities of such series, (ii) substitution of mutilated, destroyed, lost or
stolen Securities of such series, (iii) rights of Holders of Securities of such series to receive, solely from the trust fund described in subparagraph (a) of Section 4.04, payments of principal thereof, premium, if any, and interest,
if any, thereon upon the original stated due dates or upon the Redemption Dates therefor (but not upon acceleration), and remaining rights of the Holders of Securities of such series to receive mandatory sinking fund payments, if any, (iv) the
rights, obligations, duties and immunities of the Trustee 

  
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hereunder, (v) this Section 4.02, Section 4.07, Section 10.02 and Section 10.03 and (vi) the rights of the Holders of Securities of such series as beneficiaries
hereof with respect to the property so deposited with the Trustee payable to all or any of them) (hereinafter called “Defeasance”), and the Trustee at the cost and expense of the Company, shall execute proper instruments
acknowledging the same. 
 Section 4.03 Covenant Defeasance. The provisions of this Section and Section 4.04 (insofar as
relating to this Section) shall apply to the Securities of each series unless specifically otherwise provided in a Board Resolution or indenture supplemental hereto provided pursuant to Section 3.01. In the case of any series of Securities with
respect to which the exact amount described in subparagraph (a) of Section 4.04 can be determined at the time of making the deposit referred to in such subparagraph (a), (i) the Company shall be released from its obligations under any
covenants specified in or pursuant to Section 3.01 as being subject to Covenant Defeasance with respect to such series (except as to (a) rights of registration of transfer and exchange of Securities of such series and rights under
Section 4.07, Section 10.02 and Section 10.03, (b) substitution of mutilated, destroyed, lost or stolen Securities of such series, (c) rights of Holders of Securities of such series to receive, from the Company pursuant to
Section 10.01, payments of principal thereof and interest, if any, thereon upon the original stated due dates or upon the Redemption Dates therefor (but not upon acceleration), and remaining rights of the Holders of Securities of such series to
receive mandatory sinking fund payments, if any, (d) the rights, obligations, duties and immunities of the Trustee hereunder and (e) the rights of the Holders of Securities of such series as beneficiaries hereof with respect to the
property so deposited with the Trustee payable to all or any of them), and (ii) the occurrence of any event specified in Section 5.01(d) (with respect to any of the covenants specified in or pursuant to Section 3.01 as being subject
to Covenant Defeasance with respect to such series) shall be deemed not to be or result in a default or an Event of Default, in each case with respect to the Outstanding Securities of such series as provided in this Section on and after the date the
conditions set forth in Section 4.04 are satisfied (hereinafter called “Covenant Defeasance”), and the Trustee at the cost and expense of the Company, shall execute proper instruments acknowledging the same. For this purpose,
such Covenant Defeasance means that the Company may omit to comply with and shall have no liability in respect of any term, condition or limitation set forth in any such covenant (to the extent so specified in the case of Section 5.01(d)),
whether directly or indirectly by reason of any reference elsewhere herein to any such covenant or by reason of any reference in any such covenant to any other provision herein or in any other document, but the remainder of this Indenture and the
Securities of such series shall be unaffected thereby. 
 Section 4.04 Conditions To Defeasance Or Covenant Defeasance. The
following shall be the conditions to application of either Section 4.02 or Section 4.03 to the Outstanding Securities: 
 (a) with
reference to Section 4.02 or Section 4.03, the Company has irrevocably deposited or caused to be irrevocably deposited with the Trustee as funds in trust, specifically pledged as security for, and dedicated solely to, the benefit of the
Holders of Securities of such series (i) money in an amount, or (ii) U.S. Government Obligations or Equivalent Government Securities which through the payment of interest and principal in respect thereof in accordance with their terms will
provide, not later than one day before the due date of any payment, money in an amount, or (iii) a combination of (i) and (ii), sufficient, in the opinion (with respect to (ii) and (iii)) of a nationally recognized firm of independent
public accountants expressed in a written certification thereof delivered to the Trustee, to pay and discharge each installment of principal (including mandatory sinking fund payments) of, premium, if any, and interest on, the Outstanding Securities
of such series on the dates such installments of interest, premium or principal are due, including upon redemption; provided, however , that if such U.S. Government Obligations and Equivalent Government Securities are callable or redeemable at the
option of the issuer thereof, the amount of such money, U.S. Government Obligations, and/or Equivalent Government Securities deposited with the Trustee must be sufficient to pay and discharge the entire indebtedness referred to above if the issuer
of any such U.S. Government Obligations or Equivalent Government Securities elects to exercise such call or redemption provisions at any time prior to the Scheduled Maturity Date or Redemption Date of such Securities, as the case may be. The
Company, but not the Trustee, shall be responsible for monitoring any such call or redemption provision. 
 (b) in the case of Defeasance
under Section 4.02, the Company has delivered to the Trustee an Opinion of Counsel based on the fact that (x) the Company has received from, or there has been published by, the Internal Revenue Service a ruling or (y) since the date
hereof, there has been a change in the applicable United States federal income tax law, in either case to the effect that, and such opinion shall confirm that, the Holders of the Securities of such series will not recognize income, gain or loss for
federal income tax purposes as a result of such deposit, defeasance and discharge and will be subject to federal income tax on the same amount and in the same manner and at the same times, as would have been the case if such deposit, Defeasance and
discharge had not occurred; 

  
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 (c) in the case of Covenant Defeasance under Section 4.03, the Company has delivered to the
Trustee an Opinion of Counsel to the effect that, and such opinion shall confirm that, the Holders of the Securities of such series will not recognize income, gain or loss for federal income tax purposes as a result of such deposit and Covenant
Defeasance and will be subject to federal income tax on the same amount and in the same manner and at the same times, as would have been the case if such deposit and Covenant Defeasance had not occurred; 

(d) no Event of Default or event which, with notice or lapse of time or both, would become an Event of Default with respect to the Securities
of such series shall have occurred and be continuing on the date of such deposit, after giving effect to such deposit or, in the case of a Defeasance under Section 4.02, no Event of Default specified in Section 5.01(e) or
Section 5.01(f) shall have occurred, at any time during the period ending on the 91st day after the date of such deposit or, if longer, ending on the day following the expiration of the longest preference period applicable to the Company in
respect of such deposit (it being understood that this condition shall not be deemed satisfied until the expiration of such period); 
 (e)
(e) such Defeasance or Covenant Defeasance will not cause the Trustee to have a conflicting interest within the meaning of the TIA, assuming all Securities of a series were in default within the meaning of the TIA; 

(f) such Defeasance or Covenant Defeasance will not result in a breach or violation of, or constitute a default under, any agreement or
instrument to which the Company is a party or by which it is bound; 
 (g) such Defeasance or Covenant Defeasance will not result in the
trust arising from such deposit constituting an investment company within the meaning of the Investment Company Act of 1940, as amended, unless the trust is registered under such Act or exempt from registration; 

(h) if the Securities of such series are to be redeemed prior to their Stated Maturity Date (other than from mandatory sinking fund payments
or analogous payments), notice of such redemption shall have been duly given pursuant to this Indenture or provision therefor satisfactory to the Trustee shall have been made; and 

(i) the Company shall have delivered to the Trustee an Officers’ Certificate and an Opinion of Counsel, each stating that all conditions
precedent provided for herein relating to such Defeasance or Covenant Defeasance, as the case may be, have been complied with. 

Section 4.05 Application of Trust Money; Excess Funds. All money and U.S. Government Obligations or Equivalent Government
Securities (including the proceeds thereof) deposited with the Trustee pursuant to Section 4.01 or Section 4.04 hereof shall be held in trust and applied by it, in accordance with the provisions of this Indenture and of the series of
Securities in respect of which it was deposited, to the payment, either directly or through any Paying Agent (including the Company acting as its own Paying Agent), as the Trustee may determine, to the Persons entitled thereto, of the principal,
premium, if any, and interest, if any, for whose payment such money has been deposited with the Trustee; but such money need not be segregated from other funds except to the extent required by law. 

The Company will pay and indemnify the Trustee against any tax, fee or other charge imposed on or assessed against the cash or U.S. Government
Obligations or Equivalent Government Securities deposited pursuant to Section 4.01 or Section 4.04 hereof or the principal and interest received in respect thereof other than any such tax, fee or other charge which by law is for the
account of the Holders of the Outstanding Securities. 
 Anything in this Article 4 to the contrary notwithstanding, the Trustee shall
deliver or pay to the Company from time to time upon Company Request any money or U.S. Governmental Obligations or Equivalent Government Securities held by it as provided in Section 4.01 or Section 4.04 which, in the opinion of a
nationally recognized investment bank, appraisal firm or firm of independent public accountants, expressed in a written 

  
 -21- 

 
certification thereof delivered to the Trustee, (which may be the opinion delivered under Section 4.01 or Section 4.04, as applicable), are in excess of the amount thereof that would
then be required to be deposited to effect an equivalent satisfaction and discharge, Covenant Defeasance or Defeasance of the applicable series. 

Section 4.06 Paying Agent to Repay Moneys Held. Upon the satisfaction and discharge of this Indenture, all moneys then held by any
Paying Agent of the Securities (other than the Trustee) shall, upon demand of the Company, be repaid to it or paid to the Trustee, and thereupon such Paying Agent shall be released from all further liability with respect to such moneys. 

Section 4.07 Return of Unclaimed Amounts. Any amounts deposited with or paid to the Trustee or any Paying Agent or then held by
the Company, in trust for payment of the principal of, premium, if any, or interest, if any, on the Securities and not applied but remaining unclaimed by the Holders of such Securities for two years after the date upon which the principal of,
premium, if any, or interest, if any, on such Securities, as the case may be, shall have become due and payable, shall be repaid to the Company by the Trustee on Company Request or (if then held by the Company) shall be discharged from such trust;
and the Holder of any of such Securities shall thereafter look only to the Company for any payment which such Holder may be entitled to collect (until such time as such unclaimed amounts shall escheat, if at all, to the State of New York) and all
liability of the Trustee or such Paying Agent with respect to such trust money, and all liability of the Company as trustee thereof, shall thereupon cease. Notwithstanding the foregoing, the Trustee or Paying Agent, before being required to make any
such repayment, may at the expense of the Company cause to be published once a week for two successive weeks (in each case on any day of the week) in a newspaper printed in the English language and customarily published at least once a day at least
five days in each calendar week and of general circulation in the Borough of Manhattan, in the City and State of New York, a notice that said amounts have not been so applied and that after a date named therein any unclaimed balance of said amounts
then remaining will be promptly returned to the Company. 
 ARTICLE V 

REMEDIES 

Section 5.01 Events of Default. “Event of Default”, wherever used herein, means with respect to any series of
Securities any one of the following events (whatever the reason for such Event of Default and whether it shall be voluntary or involuntary or be effected by operation of law or pursuant to any judgment, decree or order of any court or any order,
rule or regulation of any administrative or governmental body), unless such event is either inapplicable to a particular series or it is specifically deleted or modified in the manner contemplated by Section 3.01: 

(a) default in the payment of any interest on any Security of such series when it becomes due and payable, and continuance of such default for
a period of 30 days; or 
 (b) default in the payment of the principal amount of (or premium, if any, on) any Security of such series as and
when the same shall become due, either at Maturity, upon redemption, by declaration, or otherwise; or 
 (c) default in the payment of any
sinking or purchase fund or analogous obligation when the same becomes due by the terms of the Securities of such series and continuance of such default for a period of 30 days; or 

(d) default in the performance or breach of any covenant or warranty of the Company in this Indenture in respect of the Securities of such
series (other than a covenant or warranty in respect of the Securities of such series a default in the performance of which or the breach of which is elsewhere in this Section specifically dealt with), and continuance of such default or breach for a
period of 60 days after there has been given, by registered or certified mail, to the Company by the Trustee or to the Company and the Trustee by the Holders of at least 25% in the principal amount of the Outstanding Securities of such series, a
written notice specifying such default or breach and requiring it to be remedied and stating that such notice is a “Notice of Default” hereunder; or 

(e) the entry of an order for relief against the Company under the Federal Bankruptcy Act by a court having jurisdiction in the premises or a
decree or order by a court having jurisdiction in the premises adjudging the 

  
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Company a bankrupt or insolvent under any other applicable Federal or State law, or the entry of a decree or order approving as properly filed a petition seeking reorganization, arrangement,
adjustment or composition of or in respect of the Company under the Federal Bankruptcy Code or any other applicable Federal or State law, or appointing a receiver, liquidator, assignee, trustee, sequestrator (or other similar official) of the
Company or of any substantial part of its property, or ordering the winding up or liquidation of its affairs, and the continuance of any such decree or order unstayed and in effect for a period of 90 consecutive days; or 

(f) the consent by the Company to the institution of bankruptcy or insolvency proceedings against it, or the filing by it of a petition or
answer or consent seeking reorganization or relief under the Federal Bankruptcy Code or any other applicable Federal or State law, or the consent by it to the filing of any such petition or to the appointment of a receiver, liquidator, assignee,
trustee, sequestrator (or other similar official) of the Company or of any substantial part of its property, or the making by it of an assignment for the benefit of creditors, or the admission by it in writing of its inability to pay its debts
generally as they become due, or the taking of corporate action by the Company in furtherance of any such action; or 
 (g) any other Event
of Default provided for with respect to the Securities of such series in accordance with Section 3.01. A default under any indebtedness of the Company other than the Securities will not constitute an Event of Default under this Indenture, and a
default under one series of Securities will not constitute a default under any other series of Securities. The Trustee shall not be charged with knowledge of an Event of Default unless a Responsible Officer at the Corporate Trust Office has actual
knowledge thereof. 
 Section 5.02 Acceleration of Maturity; Rescission, and Annulment. If any Event of Default described in
Section 5.01 above (other than Event of Default described in Section 5.01(e) and Section 5.01(f)) shall have occurred and be continuing with respect to any series, then and in each and every such case, unless the principal of all the
Securities of such series shall have already become due and payable, either the Trustee or the Holders of not less than 51% in aggregate principal amount of the Securities of such series then Outstanding hereunder, by notice in writing to the
Company (and to the Trustee if given by Holders), may declare the principal amount (or, if the Securities of such series are Original Issue Discount Securities, such portion of the principal amount as may be specified in the terms of that series) of
all the Securities of such series and any and all accrued interest thereon to be due and payable immediately, and upon any such declaration the same shall become and shall be immediately due and payable, any provision of this Indenture or the
Securities of such series to the contrary notwithstanding. If an Event of Default specified in Section 5.01(e) or Section 5.01(f) occurs, the principal amount of the Securities of such series and any and all accrued interest thereon shall
immediately become and be due and payable without any declaration or other act on the party of the Trustee or any Holder. No declaration of acceleration by the Trustee with respect to any series of Securities shall constitute a declaration of
acceleration by the Trustee with respect to any other series of Securities, and no declaration of acceleration by the Holders of at least 51% in aggregate principal amount of the Outstanding Securities of any series shall constitute a declaration of
acceleration or other action by any of the Holders of any other series of Securities, in each case whether or not the Event of Default on which such declaration is based shall have occurred and be continuing with respect to more than one series of
Securities, and whether or not any Holders of the Securities of any such affected series shall also be Holders of Securities of any other such affected series. 

At any time after such a declaration of acceleration has been made with respect to the Securities of any series and before a judgment or
decree for payment of the money due has been obtained by the Trustee as hereinafter in this Article provided, the Holders of not less than a majority of the aggregate principal amount of the Outstanding Securities of such series, by written notice
to the Company and the Trustee, may rescind and annul such declaration and its consequences if all Events of Default with respect to such series of Securities, other than the nonpayment of the principal of the Securities of such series which have
become due solely by such acceleration, have been cured or waived as provided in Section 5.13, if such cure or waiver does not conflict with any judgment or decree set forth in Section 5.01(e) and Section 5.01(f) and if all sums paid
or advanced by the Trustee hereunder and the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and counsel have been paid. 

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

  
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 Section 5.03 Collection of Indebtedness and Suits for Enforcement by Trustee. The
Company covenants that if: 
 (a) default is made in the payment of any installment of interest on any Security of any series when such
interest becomes due and payable, or 
 (b) default is made in the payment of the principal of (or premium, if any, on) any Security at the
Maturity thereof, or 
 (c) default is made in the payment of any sinking or purchase fund or analogous obligation when the same becomes due
by the terms of the Securities of any series, and 
 (d) any such default continues for any period of grace provided in relation to such
default pursuant to Section 5.01, then, with respect to the Securities of such series, the Company will, upon demand of the Trustee, pay to it, for the benefit of the Holder of any such Security (or the Holders of any such series in the case of
clause (c) above), the whole amount then due and payable on any such Security (or on the Securities of any such series in the case of clause (c) above) for principal (and premium, if any) and interest, if any, with interest (to the extent
that payment of such interest shall be legally enforceable) upon the overdue principal (and premium, if any) and upon overdue installments of interest, if any, at such rate or rates as may be prescribed therefor by the terms of any such Security (or
of Securities of any such series in the case of clause (c) above); and, in addition thereto, such further amount as shall be sufficient to cover the costs and expenses of collection, including the reasonable compensation, expenses,
disbursements and advances of the Trustee, its agents and counsel and all other amounts due the Trustee under Section 6.07. 
 If the
Company fails to pay such amounts forthwith upon such demand, the Trustee, in its own name and as trustee of an express trust, may institute a judicial proceeding for the collection of the sums so due and unpaid, and may prosecute such proceeding to
judgment or final decree, and may enforce the same against the Company or any other obligor upon the Securities of such series and collect the money adjudged or decreed to be payable in the manner provided by law out of the property of the Company
or any other obligor upon such Securities, wherever situated. 
 If an Event of Default with respect to any series of Securities occurs and
is continuing, the Trustee may in its discretion proceed to protect and enforce its rights and the rights of the Holders of Securities of such series by such appropriate judicial proceedings as the Trustee shall deem most effectual to protect and
enforce any such rights, whether for the specific enforcement of any covenant or agreement in this Indenture or in aid of the exercise of any power granted herein, or to enforce any other proper remedy. 

Section 5.04 Trustee May File Proofs of Claim. In case of the pendency of any receivership, insolvency, liquidation, bankruptcy,
reorganization, arrangement, adjustment, composition, or other judicial proceeding relative to the Company or any other obligor upon the Securities or the property of the Company or of such other obligor or their creditors, the Trustee (irrespective
of whether the principal of the Securities shall then be due and payable as therein expressed or by declaration or otherwise and irrespective of whether the Trustee shall have made any demand on the Company for the payment of overdue principal or
interest) shall be entitled and empowered, by intervention in such proceedings or otherwise, 
 (a) to file and prove a claim for the whole
amount of principal (or, with respect to Original Discount Securities, such portion of the principal amount as may be specified in the terms of such Securities), premium, if any, and interest, if any, owing and unpaid in respect of the Securities,
and to file such other papers or documents as may be necessary and advisable in order to have the claims of the Trustee (including any claim for the reasonable compensation, expenses, disbursements, and advances of the Trustee, its agents and
counsel, and all other amounts due the Trustee under Section 6.07) and of the Securityholders allowed in such judicial proceedings, and 

(b) to collect and receive any moneys or other property payable or deliverable on any such claims and to distribute the same; and any
receiver, assignee, trustee, liquidator, sequestrator (or other similar official) in any such judicial proceeding is hereby authorized by each Securityholder to make such payments to the Trustee, and in

  
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the event that the Trustee shall consent to the making of such payments directly to the Securityholders, to pay to the Trustee any amount due to it for the reasonable compensation, expenses,
disbursements and advances of the Trustee and its agent and counsel, and any other amounts due the Trustee under Section 6.07 hereof. 

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

 Section 5.05 Trustee May Enforce Claims Without Possession of Securities. All rights of action and claims under this
Indenture or the Securities of any series may be prosecuted and enforced by the Trustee without the possession of any of the Securities of such series or the production thereof in any proceeding relating thereto, and any such proceeding instituted
by the Trustee shall be brought in its own name as trustee of an express trust, and any recovery of judgment shall, after provision for the payment of the reasonable compensation, expenses, disbursements and advances of the Trustee and its agents
and counsel, be for the ratable benefit of the Holders of the Securities, of the series in respect of which such judgment has been recovered. 

Section 5.06 Application of Money Collected. Any money collected by the Trustee with respect to a series of Securities pursuant to
this Article shall be applied in the following order, at the date or dates fixed by the Trustee and, in case of the distribution of such money on account of principal, premium, if any, or interest, if any, upon presentation of the Securities of such
series and the notation thereon of the payment, if only partially paid, and upon surrender thereof, if fully paid: 
 First: To the
payment of all amounts due the Trustee under Section 6.07 hereof. 
 Second: To the payment of the amounts then due and unpaid
upon the Securities of that series for principal, premium, if any, interest, if any, and additional amounts, if any, in respect of which or for the benefit of which such money has been collected, ratably, without preference or priority of any kind.

 Section 5.07 Limitation on Suits. No Holder of any Security of any series shall have any right to institute any proceeding,
judicial or otherwise, with respect to this Indenture, or for the appointment of a receiver or trustee, or for any other remedy hereunder, unless 

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

 (b) the Holders of not less than 51% in principal amount of the Outstanding Securities of such series shall have made written request to
the Trustee to institute proceedings in respect of such Event of Default in its own name as Trustee hereunder; 
 (c) such Holder or Holders
have offered to the Trustee reasonable indemnity against the costs, expenses and liabilities to be incurred in compliance with such request; 

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

 (e) no direction inconsistent with such written request has been given to the Trustee during such 60-day period by the Holders of a
majority in principal amount of the Outstanding Securities of such series; it being understood and intended that no one or more Holders of Securities of such series shall have any right in any manner whatever by virtue of, or by availing of, any
provision of this Indenture to affect, disturb or prejudice the rights of any other Holders of Securities of such series, or to obtain or to seek to obtain priority or preference over any other such Holders or to enforce any right under this
Indenture, except in the manner herein provided and for the equal and proportionate benefit of all the Holders of all Securities of such series. 

  
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 Section 5.08 Unconditional Right of Securityholders to Receive Principal, Premium, and
Interest. Notwithstanding any other provision in this Indenture, the Holder of any Security shall have the right, which is absolute and unconditional, to receive payment of the principal, premium, if any, and (subject to Section 3.07)
interest, if any, (and additional amounts, if any) on such Security on or after the respective payment dates expressed in such Security (or, in the case of redemption or repayment, on the Redemption Date or Repayment Date, as the case may be) and to
institute suit for the enforcement of any such payment on or after such respective date, and such right shall not be impaired or affected without the consent of such Holder. 

Section 5.09 Restoration of Rights and Remedies. If the Trustee or any Securityholder has instituted any proceeding to enforce any
right or remedy under this Indenture and such proceeding has been discontinued or abandoned for any reason, then and in every such case the Company, the Trustee and the Securityholders shall, subject to any determination in such proceeding, be
restored severally and respectively to their former positions hereunder, and thereafter all rights and remedies of the Trustee and the Securityholders shall continue as though no such proceeding had been instituted. 

Section 5.10 Rights and Remedies Cumulative. No right or remedy herein conferred upon or reserved to the Trustee or to the
Securityholders is intended to be exclusive of any other right or remedy, and every right or remedy shall, to the extent permitted by law, be cumulative and in addition to every other right and remedy given hereunder or now or hereafter existing at
law or in equity or otherwise. The assertion or employment of any right or remedy hereunder, or otherwise, shall not prevent the concurrent assertion or employment of any other appropriate right or remedy. 

Section 5.11 Delay or Omission Not Waiver. No delay or omission of the Trustee or of any Holder of any Security to exercise any
right or remedy accruing upon any Event of Default shall impair any such right or remedy or constitute a waiver of any such Event of Default or an acquiescence therein. Every right and remedy given by this Article or by law to the Trustee or to the
Securityholders may be exercised from time to time, and as often as may be deemed expedient, by the Trustee or by the Securityholders, as the case may be. 

Section 5.12 Control by Securityholders. The Holders of a majority in principal amount of the Outstanding Securities of any series
shall have the right to direct the time, method and place of conducting any proceeding for any remedy available to the Trustee or exercising any trust or power conferred on the Trustee with respect to the Securities of such series, provided that

 (a) the Trustee shall have the right to decline to follow any such direction if the Trustee, being advised by counsel, determines that
the action so directed may not lawfully be taken or would conflict with this Indenture or if the Trustee in good faith shall, by a Responsible Officer, determine that the proceedings so directed would involve it in personal liability or be unjustly
prejudicial to the Holders not taking part in such direction, and 
 (b) the Trustee may take any other action deemed proper by the Trustee
which is not inconsistent with such direction. 
 Section 5.13 Waiver of Past Defaults. The Holders of not less than a majority
in principal amount of the Outstanding Securities of any series may, on behalf of the Holders of all the Securities of such series, waive any past default hereunder with respect to such series and its consequences, except a default not theretofore
cured: 
 (a) in the payment of principal, premium, if any, or interest, if any, on any Security of such series, or in the payment of any
sinking or purchase fund or analogous obligation with respect to the Securities of such series, or 
 (b) in respect of a covenant or
provision in this Indenture which, under Article Nine hereof, cannot be modified or amended without the consent of the Holder of each Outstanding Security of such series. 

  
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 Upon any such waiver, such default shall cease to exist, and any Event of Default arising
therefrom shall be deemed to have been cured, for every purpose of this Indenture; but no such waiver shall extend to any subsequent or other default or impair any right consequent thereon. 

Section 5.14 Undertaking for Costs. All parties to this Indenture agree, and each Holder of any Security by his acceptance thereof
shall be deemed to have agreed, that any court may in its discretion require, in any suit for the enforcement of any right or remedy under this Indenture, or in any suit against the Trustee for any action taken or omitted by it as Trustee, the
filing by any party litigant in such suit of an undertaking to pay the costs of such suit, and that such court may in its discretion assess reasonable costs, including reasonable attorneys’ fees, against any party litigant in such suit, having
due regard to the merits and good faith of the claims or defenses made by such party litigant; but the provisions of this Section shall not apply to any suit instituted by the Trustee, to any suit instituted by any Securityholder or group of
Securityholders holding in the aggregate more than 10% in principal amount of the Outstanding Securities of any series to which the suit relates, or to any suit instituted by any Securityholder for the enforcement of the payment of principal,
premium, if any, or interest, if any, on any Security on or after the respective payment dates expressed in such Security (or, in the case of redemption or repayment, on or after the Redemption Date or Repayment Date). 

Section 5.15 Waiver of Stay or Extension Laws. The Company covenants (to the extent that it may lawfully do so) that it will not
at any time insist upon, or plead, or in any manner whatsoever claim or take the benefit or advantage of, any stay or extension law (other than any bankruptcy law) wherever enacted, now or at any time hereafter in force, which may affect the
covenants or the performance of this Indenture; and the Company (to the extent that it may lawfully do so) hereby expressly waives all benefit or advantage of any such law, and covenants that it will not hinder, delay or impede the execution of any
power herein granted to the Trustee, but will suffer and permit the execution of every such power as though no such law had been enacted. 

ARTICLE VI 
 THE TRUSTEE

 Section 6.01 Certain Duties and Responsibilities of Trustee. 

(a) Except during the continuance of an Event of Default with respect to any series of Securities, 

(i) the Trustee undertakes to perform such duties and only such duties as are specifically set forth in this Indenture with
respect to the Securities of such series, and no implied covenants or obligations shall be read into this Indenture against the Trustee; and 

(ii) in the absence of bad faith on its part, the Trustee may, with respect to Securities of such series, conclusively rely
upon certificates or opinions furnished to the Trustee and conforming to the requirements of this Indenture; but in the case of any such certificates or opinions which by any provision hereof are specifically required to be furnished to the Trustee,
the Trustee shall be under a duty to examine the same to determine whether or not they conform on their face to the requirements of this Indenture (but need not confirm or investigate the accuracy of calculations or other facts stated therein). 

(b) If an Event of Default with respect to any series of Securities actually known to a Responsible Officer of the Trustee has occurred and is
continuing, the Trustee shall exercise, with respect to the Securities of such series, such of the rights and powers vested in it by this Indenture, and use the same degree of care and skill in their exercise, as a prudent person would exercise or
use under the circumstances in the conduct of his own affairs. 
 (c) No provision of this Indenture shall be construed to relieve the
Trustee from liability for its own negligent action, its own negligent failure to act, or its own willful misconduct, except that 

(i) this Subsection shall not be construed to limit the effect of Subsection (a) of this Section; 

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

(iii) the Trustee shall not be liable with respect to any action taken or omitted to be taken by it in good faith in accordance
with the direction of the Holders of not less than a majority in principal amount of the Outstanding Securities of any series relating to the time, method, and place of conducting any proceeding for any remedy available to the Trustee with respect
to the Securities of such series, or exercising any trust or power conferred upon the Trustee, under this Indenture with respect to the Securities of such series; and 

(iv) no provision of this Indenture shall require the Trustee to expend or risk its own funds or otherwise incur any financial
liability in the performance of any of its duties hereunder or in the exercise of any of its rights or powers, if it shall have reasonable grounds for believing that repayment of such funds or adequate indemnity against such risk or liability is not
reasonably assured to it. 
 (d) Whether or not therein expressly so provided, every provision of this Indenture relating to the conduct or
affecting the liability of or affording protection to the Trustee shall be subject to the provisions of this Section. 
 Section 6.02
Notice of Defaults. Within 90 days after receipt of notice of the occurrence of any default hereunder with respect to Securities of any series, the Trustee shall transmit by mail to all Securityholders of such series, as their names and
addresses appear in the Security Register, notice of such default hereunder known to the Trustee, unless such default shall have been cured or waived; provided, however, that, except in the case of a default in the payment of the
principal, premium, if any, or interest, if any, on any Security of such series or in the payment of any sinking or purchase fund installment or analogous obligation with respect to Securities of such series, the Trustee shall be protected in
withholding such notice if and so long as the board of directors, the executive committee or a trust committee of directors and/or Responsible Officers of the Trustee in good faith determine that the withholding of such notice is in the interests of
the Securityholders of such series and; provided, further, that, in the case of any default of the character specified in Section 5.01(d) with respect to Securities of such series, no such notice to Securityholders of such series
shall be given until at least 60 days after the occurrence thereof. For the purpose of this Section, the term “default”, with respect to Securities of any series, means any event which is, or after notice or lapse of time or both would
become, an Event of Default with respect to Securities of such series. 
 Section 6.03 Certain Rights of Trustee. Except as
otherwise provided in Section 6.01 above: 
 (a) the Trustee may rely and shall be protected in acting or refraining from acting upon
any resolution, certificate, statement, instrument, opinion, report, notice, request, direction, consent, order, bond, debenture or other paper or document believed by it to be genuine and to have been signed or presented by the proper party or
parties; 
 (b) any request, direction or order of the Company mentioned herein shall be sufficiently evidenced by a Company Request or
Company Order and any resolution of the Board of Directors may be sufficiently evidenced by a Board Resolution; 
 (c) whenever in the
administration of this Indenture the Trustee shall deem it desirable that a matter be proved or established prior to taking, suffering or omitting any action hereunder, the Trustee (unless other evidence be herein specifically prescribed) may, in
the absence of bad faith on its part, rely upon an Officers’ Certificate or Opinion of Counsel or both, and shall not be liable for any action it takes or omits to take in good faith reliance on such certificate or opinion; 

(d) the Trustee may consult with counsel of its selection and the advice or opinion of such counsel as to matters of law shall be full and
complete authorization and protection from liability in respect of any action taken, suffered or omitted by it hereunder in good faith and in reliance thereon; 

  
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 (e) the Trustee shall be under no obligation to exercise any of the rights or powers vested in it
by this Indenture at the request or direction of any of the Securityholders pursuant to this Indenture, unless such Securityholders shall have offered to the Trustee security or indemnity reasonably satisfactory to the Trustee against the costs,
expenses and liabilities which might be incurred by it in compliance with such request or direction; 
 (f) the Trustee shall not be bound
to make any investigation into the facts or matters stated in any resolution, certificate, statement, instrument, opinion, report, notice, request, direction, consent, order, bond, debenture or other paper or document, but the Trustee, in its
discretion, may make such further inquiry or investigation into such facts or matters as it may see fit, and, if the Trustee shall determine to make such further inquiry or investigation, it shall be entitled to examine the books, records and
premises of the Company, personally or by agent or attorney; and 
 (g) the Trustee may execute any of the trusts or powers hereunder or
perform any duties hereunder either directly or by or through agents or attorneys and the Trustee shall not be responsible for any misconduct or negligence on the part of any agent or attorney appointed with due care by it hereunder. 

Section 6.04 Not Responsible for Recitals or Issuance of Securities. The recitals contained herein and in the Securities, except
the certificates of authentication, shall be taken as the statements of the Company, and the Trustee assumes no responsibility for their correctness. The Trustee makes no representations as to the validity or sufficiency of this Indenture or of the
Securities. The Trustee shall not be accountable for the use or application by the Company of Securities or the proceeds thereof. 

Section 6.05 May Hold Securities. The Trustee or any Paying Agent, Security Registrar, or other agent of the Company, in its
individual or any other capacity, may become the owner or pledgee of Securities and, subject to Sections 6.08 and 6.13 hereof, may otherwise deal with the Company with the same rights it would have if it were not Trustee, Paying Agent, Security
Registrar, or such other agent. 
 Section 6.06 Money Held in Trust. Money held by the Trustee in trust hereunder need not be
segregated from other funds except to the extent required by law. The Trustee shall be under no liability for interest on any money received by it hereunder except as otherwise agreed with the Company. 

Section 6.07 Compensation and Reimbursement. The Company covenants and agrees 

(a) to pay the Trustee from time to time, and the Trustee shall be entitled to, reasonable compensation for all services rendered by it
hereunder (which compensation shall not be limited by any provision of law in regard to the compensation of a trustee of an express trust); 

(b) except as otherwise expressly provided herein, to reimburse the Trustee upon its request for all reasonable expenses, disbursements
and advances incurred or made by the Trustee in accordance with any provision of this Indenture (including the reasonable compensation and the reasonable expenses and disbursements of its agents and counsel), except any such expense, disbursement or
advance as may be attributable to its negligence or bad faith; and 
 (c) to indemnify the Trustee for, and to hold it harmless against, any
loss, liability or expense incurred without negligence or bad faith on its part, arising out of or in connection with the acceptance or administration of this trust, including the reasonable costs and expenses of defending itself against any claim
or liability in connection with the exercise or performance of any of its powers or duties hereunder. 
 Without prejudice to any other
rights available to the Trustee under applicable law, when the Trustee incurs expenses or renders services in connection with an Event of Default specified in Section 5.01(e) and Section 5.01(f) above, such expenses (including the
reasonable charges and expenses of its counsel) and compensation for such services are intended to constitute expenses of administration under any applicable Federal or State bankruptcy, insolvency, reorganization, or other similar law. 

  
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 The Trustee shall have a lien prior to the Securities upon all property and funds held or
collected by it as such for any amount owing to it or any predecessor Trustee pursuant to this Section 6.07, except with respect to funds held in trust for the benefit of the Holders of particular Securities. 

The provisions of this Section shall survive the satisfaction and discharge of this Indenture. 

Section 6.08 Disqualification; Conflicting Interests. If the Trustee has or shall acquire any conflicting interest within the
meaning of the Trust Indenture Act, it shall either eliminate such interest or resign as Trustee with respect to one or more series of Securities, to the extent and in the manner provided by, and subject to the provisions of, the Trust Indenture Act
and this Indenture. To the extent permitted by such Trust Indenture Act, the Trustee shall not be deemed to have a conflicting interest by virtue of being a trustee under this Indenture with respect to Securities of more than one series. 

Section 6.09 Corporate Trustee Required; Eligibility. There shall at all times be a Trustee hereunder with respect to each series
of Securities that shall be a corporation organized and doing business under the laws of the United States of America or of any State or Territory thereof or of the District of Columbia, authorized under such laws to exercise corporate trust powers,
having a combined capital and surplus of at least $50,000,000, and subject to supervision or examination by Federal or State authority and having its principal office and place of business in the City of New York, if there be such a corporation
having its principal office and place of business in said City and willing to act as Trustee on customary and usual terms. If such corporation publishes reports of condition at least annually, pursuant to law or to the requirements of the aforesaid
supervising or examining authority, then for the purposes of this Section, the combined capital and surplus of such corporation shall be deemed to be its combined capital and surplus as set forth in its most recent report of condition so published.
If at any time the Trustee with respect to any series of Securities shall cease to be eligible in accordance with the provisions of this Section, it shall resign immediately in the manner and with the effect hereinafter specified in this Article.

 Section 6.10 Resignation and Removal; Appointment of Successor. 

(a) No resignation or removal of the Trustee and no appointment of a successor Trustee pursuant to this Article shall become effective until
the acceptance of appointment by the successor Trustee under Section 6.11. 
 (b) The Trustee may resign with respect to any one or
more series of Securities at any time by giving at least 60 days’ written notice thereof to the Company. If an instrument of acceptance by a successor Trustee shall not have been delivered to the Trustee within 30 days after the giving of such
notice of resignation, the resigning Trustee may petition any court of competent jurisdiction for the appointment of a successor Trustee. 

(c) The Trustee may be removed with respect to any series of Securities at any time by Act of the Holders of 66 2/3% in principal amount of the Outstanding Securities of that series, delivered to the Trustee and to the Company. 

(d) If at any time: 

(i) the Trustee shall fail to comply with Section 6.08 above with respect to any series of Securities after written
request therefor by the Company or by any Securityholder who has been a bona fide Holder of a Security of that series for at least six months, or 

(ii) the Trustee shall cease to be eligible under Section 6.09 above with respect to any series of Securities and shall
fail to resign after written request therefor by the Company or by any such Securityholder, or 
 (iii) the Trustee shall
become incapable of acting with respect to any series of Securities, or 
 (iv) the Trustee shall be adjudged a bankrupt or
insolvent or a receiver of the Trustee or of its property shall be appointed or any public officer shall take charge or control of the Trustee or of its 

  
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property or affairs for the purpose of rehabilitation, conservation or liquidation, then, in any such case (A) the Company may remove the Trustee, with respect to the series or, in the case
of clause (iv), with respect to all series, or (B) subject to Section 5.14, any Securityholder who has been a bona fide Holder of a Security of such series for at least 6 months may, on behalf of himself and all others similarly situated,
petition any court of competent jurisdiction for the removal of the Trustee and the appointment of a successor Trustee with respect to the series or, in the case of clause (iv), with respect to all series. 

(e) If the Trustee shall resign, be removed or become incapable of acting with respect to any series of Securities, or if a vacancy shall
occur in the office of Trustee with respect to any series of Securities for any cause, the Company shall promptly appoint a successor Trustee for that series of Securities. If, within one year after such resignation, removal or incapacity, or the
occurrence of such vacancy, a successor Trustee with respect to such series of Securities shall be appointed by Act of the Holders of 66 2/3% in principal amount of the Outstanding Securities of
such series delivered to the Company and the retiring Trustee, the successor Trustee so appointed shall, forthwith upon its acceptance of such appointment, become the successor Trustee with respect to such series and supersede the successor Trustee
appointed by the Company with respect to such series. If no successor Trustee with respect to such series shall have been so appointed by the Company or the Securityholders of such series and accepted appointment in the manner hereinafter provided,
any Securityholder who has been bona fide Holder of a Security of that series for at least six months may, on behalf of himself and all others similarly situated, petition any court of competent jurisdiction for the appointment of a successor
Trustee with respect to such series. 
 (f) The Company shall give notice of each resignation and each removal of the Trustee with respect
to any series and each appointment of a successor Trustee with respect to any series by mailing written notice of such event by first-class mail, postage prepaid, to the Holders of Securities of that series as their names and addresses appear in the
Security Register. Each notice shall include the name of the successor Trustee and the address of its principal Corporate Trust Office. 

Section 6.11 Acceptance of Appointment by Successor. Every successor Trustee appointed hereunder with respect to all series of
Securities shall execute, acknowledge and deliver to the Company and to the predecessor Trustee an instrument accepting such appointment, and thereupon the resignation or removal of the predecessor Trustee shall become effective, and such successor
Trustee, without any further act, deed or conveyance, shall become vested with all the rights, powers, trusts and duties of the predecessor Trustee with respect to any such series; but, on request of the Company or the successor Trustee, such
predecessor Trustee shall, upon payment of its reasonable charges, if any, execute and deliver an instrument transferring to such successor Trustee all the rights, powers and trusts of the predecessor Trustee, and shall duly assign, transfer and
deliver to such successor Trustee all property and money held by such predecessor Trustee hereunder. 
 In case of the appointment hereunder
of a successor Trustee with respect to the Securities of one or more (but not all) series, the Company, the predecessor Trustee and each successor Trustee with respect to the Securities of any applicable series shall execute and deliver an indenture
supplemental hereto which (1) shall contain such provisions as shall be deemed necessary or desirable to transfer and to conform to, and to vest in, each successor Trustee all the rights, powers, trusts and duties of the predecessor Trustee
with respect to the Securities of any series as to which the appointment of such successor Trustee relates and (2) if the predecessor Trustee is not retiring with respect to all Securities, shall contain such provisions as shall be deemed
necessary or desirable to confirm that all the rights, powers, trusts and duties of the predecessor Trustee with respect to the Securities of any series as to which the predecessor Trustee is not being succeeded shall continue to be vested in the
predecessor Trustee, and (3) shall add to or change any of the provisions of this Indenture as shall be necessary to provide for or facilitate the administration of the trusts hereunder by more than one Trustee, it being understood that nothing
herein or in such supplemental indenture shall constitute such Trustees co-trustees of the same trust and that each such Trustee shall be Trustee of a trust or trusts hereunder separate and apart from any trust or trusts hereunder administered by
any other such Trustee; and upon the execution and delivery of such supplemental indenture the resignation or removal of the retiring Trustee shall become effective to the extent provided therein and each such successor Trustee, without any further
act, deed or conveyance, shall become vested with all the rights, powers, trusts and duties of the retiring Trustee with respect to the Securities of that or those series to which the appointment of such successor Trustee relates; and, on request of
the Company or any successor Trustee, such retiring Trustee shall duly assign, transfer and deliver to such successor Trustee all property and money held by such retiring Trustee hereunder with respect to the Securities of that or those series to
which the appointment of such successor Trustee relates. 

  
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 Upon request of any such successor Trustee, the Company shall execute any and all instruments for
more fully and certainly vesting in and confirming to such successor Trustee all such rights, powers and trusts referred to in the first or second preceding paragraph, as the case may be. 

No successor Trustee with respect to any series of Securities shall accept its appointment unless at the time of such acceptance such
successor Trustee shall be qualified and eligible with respect to that series under this Article. 
 Notwithstanding replacement of the
Trustee pursuant to this Section, the Company’s obligations under Section 6.07 hereof shall continue for the benefit of the retiring Trustee. 

Section 6.12 Merger, Conversion, Consolidation or Succession to Business. Any corporation into which the Trustee may be merged or
converted or with which it may be consolidated, or any corporation resulting from any merger, conversion or consolidation to which the Trustee shall be a party, or any corporation succeeding to all or substantially all of the corporate trust
business of the Trustee, shall be the successor of the Trustee hereunder, provided that such corporation shall be otherwise qualified and eligible under this Article, without the execution or filing of any paper or any further act on the part of any
of the parties hereto. In case any Securities shall have been authenticated, but not delivered, by the Trustee then in office, any successor Trustee by merger, conversion or consolidation to such authenticating Trustee may adopt such authentication
and deliver the Securities so authenticated with the same effect as if such successor Trustee had itself authenticated such Securities. 

Section 6.13 Preferential Collection of Claims Against Company. If and when the Trustee shall be or shall become a creditor, of
the Company (or of any other obligor upon the Securities), the Trustee shall be subject to the provisions of the Trust Indenture Act regarding the collection of claims against the Company (or against any such other obligor, as the case may be). 

Section 6.14 Appointment of Authenticating Agent. At any time when any of the Securities remain Outstanding the Trustee, with the
approval of the Company, may appoint an Authenticating Agent or Agents with respect to one or more series of Securities which shall be authorized to act on behalf of the Trustee to authenticate Securities of such series issued upon exchange,
registration of transfer or partial redemption thereof or pursuant to Section 3.06, and Securities so authenticated shall be entitled to the benefits of this Indenture and shall be valid and obligatory for all purposes as if authenticated by
the Trustee hereunder. Wherever reference is made in this Indenture to the authentication and delivery of Securities by the Trustee or the Trustee’s certificate of authentication, such reference shall be deemed to include authentication and
delivery on behalf of the Trustee by an Authenticating Agent and a certificate of authentication executed on behalf of the Trustee by an Authenticating Agent. Each Authenticating Agent shall be acceptable to the Company and shall at all times be a
corporation organized and doing business under the laws of the United States of America, any State thereof or the District of Columbia, authorized under such laws to act as an Authenticating Agent, having a combined capital and surplus of not less
than $50,000,000 and subject to supervision or examination by Federal or State authority. If such Authenticating Agent publishes reports of condition at least annually, pursuant to law or to the requirements of said supervising or examining
authority, then for the purposes of this Section, the combined capital and surplus of such Authenticating Agent shall be deemed to be its combined capital and surplus as set forth in its most recent report of condition so published. If at any time
an Authenticating Agent shall cease to be eligible in accordance with the provisions of this Section, such Authenticating Agent shall resign immediately in the manner and with the effect specified in this Section. 

Any corporation into which an Authenticating Agent may be merged or converted or with which it may be consolidated, or any corporation
resulting from any merger, conversion or consolidation to which such Authenticating Agent shall be a party, or any corporation succeeding to the corporate agency or corporate trust business of an Authenticating Agent, shall continue to be an
Authenticating Agent, provided such corporation shall be otherwise eligible under this Section, without the execution or filing of any paper or any further act on the part of the Trustee or the Authenticating Agent. 

  
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 An Authenticating Agent may resign at any time by giving written notice thereof to the Trustee
and, if other than the Company, to the Company. The Trustee may at any time terminate the agency of an Authenticating Agent by giving written notice thereof to such Authenticating Agent and, if other than the Company, to the Company. Upon receiving
such a notice of resignation or upon such a termination, or in case at any time such Authenticating Agent shall cease to be eligible in accordance with the provisions of this Section, the Trustee, with the approval of the Company, may appoint a
successor Authenticating Agent which shall be acceptable to the Company and shall mail written notice of such appointment by first-class mail, postage prepaid, to all Holders of Securities of the series with respect to which such Authenticating
Agent will serve, as their names and addresses appear in the Security Register. Any successor Authenticating Agent upon acceptance of its appointment hereunder shall become vested with all the rights, powers and duties of its predecessor hereunder,
with like effect as originally named as an Authenticating Agent. No successor Authenticating Agent shall be appointed unless eligible under the provisions of this Section. 

The Company agrees to pay to each Authenticating Agent from time to time reasonable compensation for its services under this Section. 

If an appointment with respect to one or more series is made pursuant to this Section, the Securities of such series may have endorsed
thereon, in addition to the Trustee’s certificate of authentication, an alternate certificate of authentication in the following form: 

This is one of the Securities of the series designated therein referred to in the within-mentioned Indenture.
[                    ], as Trustee 
  

			
	By:	 	  

		 	As Authenticating Agent:
		
	By:	 	  

		 	Authorized Officer:

 ARTICLE VII 

SECURITYHOLDERS’ LISTS AND REPORTS BY TRUSTEE AND COMPANY 

Section 7.01 Company to Furnish Trustee Names and Addresses of Securityholders. The Company will furnish or cause to be furnished
to the Trustee: 
 (a) semiannually, not more than 15 days after January 1 and July 1 in each year, in such form as the Trustee
may reasonably require, a list of the names and addresses of the Holders of Securities of each series as of such date, and 
 (b) at such
other times as the Trustee may request in writing, within 30 days after the receipt by the Company of any such request, a list of similar form and content as of a date not more than 15 days prior to the time such list is furnished, provided that if
the Trustee shall be the Security Registrar for such series, such list shall not be required to be furnished. 
 Section 7.02
Preservation of Information; Communications to Securityholders. 
 (a) The Trustee shall preserve, in as current a form as is
reasonably practicable, the names and addresses of Holders of Securities contained in the most recent list furnished to the Trustee as provided in Section 7.01 and the names and addresses of Holders of Securities received by the Trustee in its
capacity as Security Registrar. The Trustee may destroy any list furnished to it as provided in Section 7.01 upon receipt of a new list so furnished. 

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

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

(i) afford such applicants access to the information preserved at the time by the Trustee in accordance with
Section 7.02(a), or 
 (ii) inform such applicants as to the approximate number of Holders of Securities of such series
or all Securities, as the case may be, whose names and addresses appear in the information preserved at the time by the Trustee in accordance with Section 7.02(a), and as to the approximate cost of mailing to such Securityholders the form of
proxy or other communication, if any, specified in such application. 
 If the Trustee shall elect not to afford such applicants access to
such information, the Trustee shall, upon the written request of such applicants, mail to each Holder of a Security of such series or to all Securityholders, as the case may be, whose names and addresses appear in the information preserved at the
time by the Trustee in accordance with Section 7.02 (a), a copy of the form of proxy or other communication which is specified in such request, with reasonable promptness after a tender to the Trustee of the material to be mailed and of
payment, or provision for the payment, of the reasonable expenses of mailing, unless within five days after such tender, the Trustee shall mail to such applicants and file with the Commission, together with a copy of the material to be mailed, a
written statement to the effect that, in the opinion of the Trustee, such mailing would be contrary to the best interests of the Holders of Securities of such series or all Securityholders, as the case may be, or would be in violation of applicable
law. Such written statement shall specify the basis of such opinion. If the Commission, after opportunity for a hearing upon the objections specified in the written statement so filed, shall enter an order refusing to sustain any of such objections
or if, after the entry of an order sustaining one or more of such objections, the Commission shall find, after notice and opportunity for hearing, that all the objections so sustained have been met and shall enter an order so declaring, the Trustee
shall mail copies of such material to all Securityholders of such series or all Securityholders, as the case may be, with reasonable promptness after the entry of such order and the renewal of such tender; otherwise the Trustee shall be relieved of
any obligation or duty to such applicants respecting their application. 
 (c) Every Holder of Securities, by receiving and holding the
same, agrees with the Company and the Trustee that neither the Company nor the Trustee shall be held accountable by reason of the disclosure of any such information as to the names and addresses of the Holders of Securities in accordance with
Section 7.02(b), regardless of the source from which such information was derived, and that the Trustee shall not be held accountable by reason of mailing any material pursuant to a request made under Section 7.02(b). 

Section 7.03 Reports by Trustee. 

(a) The Trustee shall transmit to Holders such reports concerning the Trustee and its actions under this Indenture as may be required pursuant
to the Trust Indenture Act at the times and in the manner provided pursuant thereto. If required by Section 313(a) of the Trust Indenture Act, the Trustee shall, within 60 days after each June 1 following the date of this Indenture,
deliver to each Holder, as provided in Trust Indenture Act Section 313(c), a brief report dated as of such June 1, which complies with the provisions of such Section 313(a). 

(b) A copy of each such report shall, at the time of such transmission to Holders, be filed by the Trustee with each stock exchange upon which
any Securities are listed, with the Commission and with the Company as required by Trust Indenture Act Section 313(d). The Company will promptly notify the Trustee when any Securities are listed on any stock exchange. 

Section 7.04 Reports by Company. The Company will: 

(a) file with the Trustee, within 30 days after the Company is required to file the same with the Commission, copies of the annual reports and
of the information, documents and other reports (or copies of such portions of any of the foregoing as the Commission may from time to time by rules and regulations prescribe) which 

  
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the Company may be required to file with the Commission pursuant to Section 13 or Section 15(d) of the Securities Exchange Act of 1934; or, if the Company is not required to file
information, documents or reports pursuant to either of said Sections, then it will file with the Trustee and the Commission, in accordance with rules and regulations prescribed from time to time by the Commission, such of the supplementary and
periodic information, documents and reports which may be required pursuant to Section 13 of the Securities Exchange Act of 1934 in respect of a security listed and registered on a national securities exchange as may be prescribed from time to
time in such rules and regulations; 
 (b) file with the Trustee and the Commission, in accordance with rules and regulations prescribed
from time to time by the Commission, such additional information, documents and reports with respect to compliance by the Company with the conditions and covenants of this Indenture as may be required from time to time by such rules and regulations;
and 
 (c) transmit by mail to all Securityholders, as their names and addresses appear in the Security Register, within 30 days after the
filing thereof with the Trustee, such summaries of any information, documents and reports required to be filed by the Company pursuant to paragraphs (a) and (b) of this Section as may be required by rules and regulations prescribed from
time to time by the Commission. 
 ARTICLE VIII 

CONSOLIDATION, MERGER, CONVEYANCE OR TRANSFER 

Section 8.01 Company May Consolidate, etc., Only on Certain Terms. The Company shall not consolidate with or merge into any other
corporation or convey or transfer all or substantially all of its properties and assets and the properties and assets of the Subsidiaries, taken as a whole, to any Person, unless; 

(a) either the Company shall be the continuing corporation, or the corporation formed by such consolidation or into which the Company is
merged or the Person which acquires by conveyance or transfer all or substantially all of the properties and assets of the Company and the Subsidiaries, taken as a whole, shall be a corporation organized and existing under the laws of the United
States of America or any State or the District of Columbia, and shall expressly assume, by an indenture supplemental hereto, executed and delivered to the Trustee, in form satisfactory to the Trustee, the due and punctual payment of the principal,
premium, if any, and interest, if any, on all the Securities and the performance of every covenant of this Indenture on the part of the Company to be performed or observed; 

(b) immediately after giving effect to such transaction, no Event of Default, or event which, after notice or lapse of time, or both, would
become an Event of Default, shall have happened and be continuing; and 
 (c) (c) the Company has delivered to the Trustee an
Officers’ Certificate and an Opinion of Counsel to the effect that any such consolidation, merger, conveyance or transfer and any assumption permitted or required by this Article complies with the provisions of this Article. 

Section 8.02 Successor Corporation Substituted. Upon any consolidation or merger, or any conveyance or transfer of all or
substantially all of the properties and assets of the Company in accordance with Section 8.01, the successor corporation formed by such consolidation or into which the Company is merged or the Person to which such conveyance or transfer is made
shall succeed to, and be substituted for, and may exercise every right and power of, the Company under this Indenture with the same effect as if such successor corporation had been named as the Company herein and the Company shall thereupon be
released from all obligations hereunder and under the Securities. Such successor corporation thereupon may cause to be signed and may issue any or all of the Securities issuable hereunder which theretofore shall not have been signed by the Company
and delivered to the Trustee; and, upon the order of such successor corporation, instead of the Company, and subject to all the terms, conditions and limitations in this Indenture prescribed, the Trustee shall authenticate and shall deliver any
Securities which previously shall have been signed and delivered by the officers of the Company to the Trustee for authentication, and any Securities which such successor corporation thereafter shall cause to be signed and delivered to the Trustee
for that purpose. All of the Securities so issued shall in all respects have the same legal rank and benefit under this Indenture as the Securities theretofore or thereafter issued in accordance with the terms of this Indenture as though all of such
Securities had been issued at the date of the execution hereof. 

  
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 In case of any such consolidation, merger, sale or conveyance such changes in phraseology and
form (but not in substance) may be made in the Securities thereafter to be issued as may be appropriate. 
 ARTICLE IX 

SUPPLEMENTAL INDENTURES 

Section 9.01 Supplemental Indentures Without Consent of Securityholders. Without the consent of the Holders of any Securities, the
Company and the Trustee, at any time and from time to time, may enter into one or more indentures supplemental hereto (which shall conform to the provisions of the Trust Indenture Act as in force at the date of execution thereof), in form
satisfactory to the Trustee, for any of the following purposes: 
 (a) to evidence the succession of another corporation to the Company, or
successive successions, and the assumption by any such successor of the covenants, agreements and obligations of the Company pursuant to Article 8 hereof; or 

(b) to add to the covenants of the Company such further covenants, restrictions or conditions for the protection of the Holders of the
Securities of any or all series as the Company and the Trustee shall consider to be for the protection of the Holders of the Securities of any or all series or to surrender any right or power herein conferred upon the Company (and if such covenants
or the surrender of such right or power are to be for the benefit of less than all series of Securities, stating that such covenants are expressly being included or such surrenders are expressly being made solely for the benefit of one or more
specified series); or 
 (c) to cure any ambiguity, to correct or supplement any provision herein which may be inconsistent with any other
provision herein or in any supplemental indenture, or to make any other provisions with respect to matters or questions arising under this Indenture that do not adversely affect the interests of the Holders of Securities of any series in any
material respect; or 
 (d) to add to this Indenture such provisions as may be expressly permitted by the Trust Indenture Act, excluding,
however, the provisions referred to in Section 316(a)(2) of the Trust Indenture Act as in effect at the date as of which this instrument is executed or any corresponding provision in any similar federal statute hereafter enacted; or 

(e) to add guarantors or co-obligors with respect to any series of Securities; or 

(f) to secure any series of Securities; or 

(g) to establish any form of Security, as provided in Article 2 hereof, and to provide for the issuance of any series of Securities, as
provided in Article 3 hereof, and to set forth the terms thereof, and/or to add to the rights of the Holders of the Securities of any series; or 

(h) to evidence and provide for the acceptance of appointment by another corporation as a successor Trustee hereunder with respect to one or
more series of Securities and to add to or change any of the provisions of this Indenture as shall be necessary to provide for or facilitate the administration of the trusts hereunder by more than one Trustee, pursuant to Section 6.11 hereof;
or 
 (i) to add any additional Events of Default in respect of the Securities of any or all series (and if such additional Events of
Default are to be in respect of less than all series of Securities, stating that such Events of Default are expressly being included solely for the benefit of one or more specified series); or 

(j) to comply with the requirements of the Commission in connection with the qualification of this Indenture under the Trust Indenture Act; or

 (k) to make any change in any series of Securities that does not adversely affect in any material respect the interests of the Holders of
such Securities. 

  
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 Section 9.02 Supplemental Indentures With Consent of Securityholders. With the
consent of the Holders of not less than a majority in principal amount of the Outstanding Securities of each series affected by such supplemental indenture or indentures, by Act of said Holders delivered to the Company and the Trustee, the Company
and the Trustee may from time to time and at any time enter into an indenture or indentures supplemental hereto for the purpose of adding any provisions to or changing in any manner or eliminating any of the provisions of this Indenture or of any
supplemental indenture or of modifying in any manner the rights of the Holders of the Securities of each such series under this Indenture; provided, however , that no such supplemental indenture shall, without the consent of the Holder of each
Outstanding Security affected thereby: 
 (a) change the Scheduled Maturity Date or the stated payment date of any payment of premium or
interest payable on any Security, or reduce the principal amount thereof, or any amount of interest or premium payable thereon, or 
 (b)
change the method of computing the amount of principal of any Security or any interest payable thereon on any date, or change any Place of Payment where, or the coin or currency in which, any Security or any payment of premium or interest thereon is
payable, or 
 (c) impair the right to institute suit for the enforcement of any payment described in clauses (a) or (b) on or
after the same shall become due and payable, whether at Maturity or, in the case of redemption or repayment, on or after the Redemption Date or the Repayment Date, as the case may be; or 

(d) change or waive the redemption or repayment provisions of any series; 

(e) reduce the percentage in principal amount of the Outstanding Securities of any series, the consent of whose Holders is required for any
such supplemental indenture, or the consent of whose Holders is required for any waiver of compliance with certain provisions of this Indenture or certain defaults hereunder and their consequences, provided for in this Indenture; or 

(f) modify any of the provisions of this Section or Section 5.13, except to increase any such percentage or to provide that certain other
provisions of this Indenture cannot be modified or waived without the consent of the Holder of each Outstanding Security affected thereby; provided, however , that this clause shall not be deemed to require the consent of any Holder with respect to
changes in the references to “the Trustee” and concomitant changes in this Section, or the deletion of this proviso, in accordance with the requirements of Sections 6.11 and 9.01(h); or 

(g) adversely affect the ranking or priority of any series; 

(h) release any guarantor or co-obligor from any of its obligations under its guarantee of the Securities or this Indenture, except in
compliance with the terms of this Indenture; or 
 (i) waive any Event of Default pursuant to Section 5.01(a), Section 5.01(b) or
Section 5.01(c) hereof with respect to such Security. 
 A supplemental indenture that changes or eliminates any covenant or other
provision of this Indenture that has expressly been included solely for the benefit of one or more particular series of Securities, or that modifies the rights of the Holders of Securities of such series with respect to such covenant or other
provision, shall be deemed not to affect the rights under this Indenture of the Holders of Securities of any other series. 
 It shall not
be necessary for any Act of Securityholders under this Section 9.02 to approve the particular form of any proposed supplemental indenture, but it shall be sufficient if such Act shall approve the substance thereof. 

Section 9.03 Execution of Supplemental Indentures. Upon request of the Company and upon filing with the Trustee of evidence of an
Act of Securityholders as aforementioned, the Trustee shall join with the Company in the execution of such supplemental indenture unless such supplemental indenture affects the Trustee’s 

  
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own rights, powers, trusts, duties or immunities under this Indenture or otherwise, in which case the Trustee may in its discretion, but shall not be obligated to, enter into such supplemental
indenture. In executing, or accepting the additional trusts created by, any supplemental indenture permitted by this Article or the modifications thereby of the trusts created by this Indenture, the Trustee shall be entitled to receive, and (subject
to Section 6.01) shall be fully protected in relying upon, an Opinion of Counsel stating that the execution of such supplemental indenture is authorized or permitted by this Indenture. 

Section 9.04 Effect of Supplemental Indentures. Upon the execution of any supplemental indenture under this Article, this
Indenture shall be and be deemed to be modified and amended in accordance therewith, and such supplemental indenture shall form a part of this Indenture for all purposes; and the respective rights, limitation of rights, duties, powers, trusts and
immunities under this Indenture of the Trustee, the Company, and every Holder of Securities theretofore or thereafter authenticated and delivered hereunder shall be determined, exercised and enforced thereunder to the extent provided therein. 

Section 9.05 Conformity With Trust Indenture Act. Every supplemental indenture executed pursuant to this Article shall conform to
the requirements of the Trust Indenture Act as then in effect. 
 Section 9.06 Reference in Securities to Supplemental
Indentures. Securities of any series authenticated and delivered after the execution of any supplemental indenture pursuant to this Article may, and shall if required by the Trustee, bear a notation in form approved by the Trustee as to any
matter provided for in such supplemental indenture. If the Company shall so determine, new Securities so modified as to conform, in the opinion of the Trustee and the Company, to any modification of this Indenture contained in any such supplemental
indenture may be prepared and executed by the Company and authenticated and delivered by the Trustee in exchange for Outstanding Securities. 

ARTICLE X 
 COVENANTS

 Section 10.01 Payment of Principal, Premium and Interest. With respect to each series of Securities, the Company will
duly and punctually pay or cause to be paid the principal, premium, if any, and interest, if any, on such Securities in accordance with their terms and this Indenture, and will duly comply with all the other terms, agreements and conditions
contained in the Indenture for the benefit of the Securities of such series. 
 Section 10.02 Maintenance of Office or Agency.
So long as any of the Securities remain outstanding, the Company will maintain an office or agency in each Place of Payment where Securities may be presented or surrendered for payment, where Securities may be surrendered for registration of
transfer or exchange, and where notices and demands to or upon the Company in respect of the Securities and this Indenture may be served. The Company will give prompt written notice to the Trustee of the location, and of any change in the location,
of such office or agency. If at any time the Company shall fail to maintain such office or agency or shall fail to furnish the Trustee with the address thereof, such presentations, surrenders, notices and demands may be made or served at the
Corporate Trust Office of the Trustee, and the Company hereby appoints the Trustee its agent to receive all such presentations, surrenders, notices and demands. 

Section 10.03 Money or Security Payments to Be Held in Trust. If the Company shall at any time act as its own Paying Agent for any
series of Securities, it will, on or before each due date of the principal, premium, if any, or interest, if any, on any of the Securities of such series, segregate and hold in trust for the benefit of the Holders of the Securities of such series a
sum sufficient to pay such principal, premium, or interest so becoming due until such sums shall be paid to such Holders of such Securities or otherwise disposed of as herein provided, and will promptly notify the Trustee of its action or failure so
to act. 
 Whenever the Company shall have one or more Paying Agents for any series of Securities, it will, on or prior to each due date of
the principal, premium, if any, or interest, if any, on any Securities of such series, deposit with a Paying Agent a sum sufficient to pay such principal, premium, or interest so becoming due, such sum to be held in trust for the benefit of the
Holders of the Securities entitled to the same and (unless such Paying Agent is the Trustee) the Company will promptly notify the Trustee of its action or failure so to act. 

  
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 The Company will cause each Paying Agent other than the Trustee for any series of Securities to
execute and deliver to the Trustee an instrument in which such Paying Agent shall agree with the Trustee, subject to the provisions of this Section, that such Paying Agent will 

(a) hold all sums held by it for the payment of principal, premium, if any, or interest, if any, on Securities of such series in trust for the
benefit of the Holders of the Securities entitled thereto until such sums shall be paid to such Holders of such Securities or otherwise disposed of as herein provided; 

(b) give the Trustee notice of any default by the Company (or any other obligor upon the Securities of such series) in the making of any such
payment of principal, premium, if any, or interest, if any, on the Securities of such series; and 
 (c) at any time during the continuance
of any such default, upon the written request of the Trustee, forthwith pay to the Trustee all sums so held in trust by such Paying Agent. 

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

Section 10.04 Certificate to Trustee. The Company will deliver to the Trustee within 120 days after the end of each fiscal year,
an Officers’ Certificate, one of whose signatories shall be the Company’s principal executive, accounting or financial officer, stating that in the course of the performance by the signers of their duties as officers of the Company they
would normally have knowledge of any default by the Company in the performance of any of its covenants, conditions or agreements contained herein (without regard to any period of grace or requirement of notice provided hereunder), stating whether or
not they have knowledge of any such default and, if so, specifying each such default of which the signers have knowledge and the nature thereof. 

Section 10.05 Corporate Existence. Subject to Article 8 the Company will do or cause to be done all things necessary to preserve
and keep in full force and effect its corporate existence. 
 ARTICLE XI 

REDEMPTION OF SECURITIES 

Section 11.01 Applicability of Article. The Company may reserve the right to redeem and pay before the Scheduled Maturity Date all
or any part of the Securities of any series, either by optional redemption, sinking or purchase fund or analogous obligation or otherwise, by provision therefor in the form of Security for such series established and approved pursuant to
Section 2.02 and 2.03 or as otherwise provided in Section 3.01, and on such terms as are specified in such form or in the indenture supplemental hereto with respect to Securities of such series as provided in Section 3.01. Redemption
of Securities of any series shall be made in accordance with the terms of such Securities and, to the extent that this Article does not conflict with such terms, the succeeding Sections of this Article. 

Section 11.02 Election to Redeem; Notice to Trustee. In case of any redemption at the election of the Company, the Company shall,
at least 60 days prior to the Redemption Date fixed by the Company (unless a shorter notice shall be satisfactory to the Trustee) notify the 

Trustee in writing of such Redemption Date and of the principal amount of Securities of such series to be redeemed. In the case of any
redemption of Securities (a) prior to the expiration of any restriction on such redemption provided in the terms of such Securities or elsewhere in this Indenture, or (b) pursuant to an election of the Company which is subject to a
condition specified in the terms of such Securities or elsewhere in this Indenture, the Company shall furnish the Trustee with an Officers’ Certificate evidencing compliance with such restriction or condition. 

  
 -39- 

 Section 11.03 Selection by Trustee of Securities to be Redeemed. If fewer than all
the Securities of any series are to be redeemed, the particular Securities to be redeemed shall be selected not more than 60 days prior to the Redemption Date by the Trustee, from the Outstanding Securities of such series not previously called for
redemption, by such method as the Trustee shall deem fair and appropriate, which may include provision for the selection for redemption of portions of the principal of Securities of such series of a denomination larger than the minimum authorized
denomination for Securities of that series. Unless otherwise provided in the terms of a particular series of Securities, the portions of the principal of Securities so selected for partial redemption shall be equal to the minimum authorized
denomination of the Securities of such series, or an integral multiple thereof, and the principal amount which remains outstanding shall not be less than the minimum authorized denomination for Securities of such series. 

The Trustee shall promptly notify the Company in writing of the Securities selected for redemption and, in the case of any Security selected
for partial redemption, the principal amount thereof to be redeemed. 
 For all purposes of this Indenture, unless the context otherwise
requires, all provisions relating to the redemption of Securities shall relate, in the case of any Security redeemed or to be redeemed only in part, to the portion of the principal of such Security which has been or is to be redeemed. 

Section 11.04 Notice of Redemption. Notice of redemption shall be given by first-class mail, postage prepaid, mailed not fewer
than 30 nor more than 60 days prior to the Redemption Date, to each Holder of Securities to be redeemed, at his or her address appearing in the Security Register on the applicable Record Date. 

All notices of redemption shall state: 

(1) the Redemption Date; 
 (2)
the Redemption Price, or if not then ascertainable, the manner of calculation thereof; 
 (3) if fewer than all Outstanding Securities of
any series are to be redeemed, the identification (and, in the case of partial redemption, the respective principal amounts) of the Securities to be redeemed, from the Holder to whom the notice is given and that on and after the date fixed for
redemption, upon surrender of such Security, a new Security or Securities of the same series in the aggregate principal amount equal to the unredeemed portion thereof will be issued in accordance with Section 11.07; 

(4) that on the Redemption Date the Redemption Price will become due and payable upon each such Security, and that interest, if any, thereon
shall cease to accrue from and after said date; 
 (5) the place where such Securities are to be surrendered for payment of the Redemption
Price, which shall be the office or agency maintained by the Company in the Place of Payment pursuant to Section 10.02 hereof; and 

(6) that the redemption is on account of a sinking or purchase fund, or other analogous obligation, if that be the case. 

Notice of redemption of Securities to be redeemed at the election of the Company shall be given by the Company or, at the Company’s
request, made at least five business days prior to the date on which notice is to be given, by the Trustee in the name and at the expense of the Company. 

Section 11.05 Deposit of Redemption Price. On or prior to any Redemption Date, the Company shall deposit with the Trustee or with
a Paying Agent (or, if the Company is acting as its own Paying Agent, segregate and hold in trust as provided in Section 10.03) an amount of money, in immediately available funds, sufficient to pay the Redemption Price of all the Securities
which are to be redeemed on that date. 

  
 -40- 

 Section 11.06 Securities Payable on Redemption Date. Notice of Redemption having been
given as aforesaid, the Securities so to be redeemed shall, on the Redemption Date, become due and payable at the Redemption Price therein specified and from and after such date (unless the Company shall default in the payment of the Redemption
Price) such Securities shall cease to bear interest. Upon surrender of such Securities for redemption in accordance with the notice, such Securities shall be paid by the Company at the Redemption Price. Any installment of interest due and payable on
or prior to the Redemption Date shall be payable to the Holders of such Securities registered as such on the relevant Record Date according to the terms and the provisions of Section 3.07 above; unless, with respect to an Interest Payment Date
that falls on a Redemption Date, such Securities provide that interest due on such date is to be paid to the Person to whom principal is payable. 

If any Security called for redemption shall not be so paid upon surrender thereof for redemption, the principal shall, until paid, bear
interest from the Redemption Date at the rate borne by the Security, or as otherwise provided in such Security. 
 Section 11.07
Securities Redeemed in Part. Any Security that is to be redeemed only in part shall be surrendered at the office or agency maintained by the Company in the Place of Payment pursuant to Section 10.02 hereof with respect to that series
(with, if the Company or the Trustee so requires, due endorsement by, or a written instrument of transfer in form satisfactory to the Company and the Trustee duly executed by, the Holder thereof or his attorney duly authorized in writing) and the
Company shall execute and the Trustee shall authenticate and deliver to the Holder of such Security without service charge and at the expense of the Company, a new Security or Securities of the same series, tenor, terms and Scheduled Maturity Date,
of any authorized denomination as requested by such Holders in aggregate principal amount equal to and in exchange for the unredeemed portion of the principal of the Security so surrendered. 

Section 11.08 Provisions with Respect to any Sinking Funds. Unless the form or terms of any series of Securities shall provide
otherwise, in lieu of making all or any part of any mandatory sinking fund payment with respect to such series of Securities in cash, the Company may at its option (a) deliver to the Trustee for cancellation any Securities of such series
theretofore acquired by the Company, or (b) receive credit for any Securities of such series (not previously so credited) acquired or redeemed by the Company (other than through operation of a mandatory sinking fund) and theretofore delivered
to the Trustee for cancellation, and if it does so then (i) Securities so delivered or credited shall be credited at the applicable sinking fund Redemption Price with respect to Securities of such series, and (ii) on or before the 60th day
next preceding each sinking fund Redemption Date with respect to such series of Securities, the Company will deliver to the Trustee (A) an Officers’ Certificate specifying the portions of such sinking fund payment to be satisfied by
payment of cash and by the delivery or credit of Securities of such series acquired or redeemed by the Company, and (B) such Securities, to the extent not previously surrendered. Such Officers’ Certificate shall also state the basis for
any such credit and that the Securities for which the Company elects to receive credit have not been previously so credited and were not acquired by the Company through operation of the mandatory sinking fund, if any, provided with respect to such
Securities and shall also state that no Event of Default with respect to Securities of such series has occurred and is continuing. All Securities so delivered to the Trustee shall be canceled by the Trustee and no Securities shall be authenticated
in lieu thereof. 
 If the sinking fund payment or payments (mandatory or optional) with respect to any series of Securities made in cash
plus any unused balance of any preceding sinking fund payments with respect to Securities of such series made in cash shall exceed $50,000 (or a lesser sum if the Company shall so request), unless otherwise provided by the terms of such series of
Securities, that cash shall be applied by the Trustee on the sinking fund Redemption Date with respect to Securities of such series next following the date of such payment to the redemption of Securities of such series at the applicable sinking fund
Redemption Price with respect to Securities of such series, together with accrued interest, if any, to the date fixed for redemption, with the effect provided in Section 11.06. The Trustee shall select, in the manner provided in
Section 11.03, for redemption on such sinking fund Redemption Date a sufficient principal amount of Securities of such series to utilize that cash and shall thereupon cause notice of redemption of the Securities of such series for the sinking
fund to be given in the manner provided in Section 11.04 (and with the effect provided in Section 11.06) for the redemption of Securities in part at the option of the Company. 

  
 -41- 

 
Any sinking fund moneys not so applied or allocated by the Trustee to the redemption of Securities of such series shall be added to the next cash sinking fund payment with respect to Securities
of such series received by the Trustee and, together with such payment, shall be applied in accordance with the provisions of this Section 11.08. Any and all sinking fund moneys with respect to Securities of any series held by the Trustee at
the Maturity of Securities of such series, and not held for the payment or redemption of particular Securities of such series, shall be applied by the Trustee, together with other moneys, if necessary, to be deposited sufficient for the purpose, to
the payment of the principal of the Securities of such series at Maturity. 
 On or before each sinking fund Redemption Date provided with
respect to Securities of any series, the Company shall pay to the Trustee in cash a sum equal to all accrued interest, if any, to the date fixed for redemption on Securities to be redeemed on such sinking fund Redemption Date pursuant to this
Section 11.08. 
 The Trustee shall not redeem any Securities with sinking fund moneys or give any notice of redemption of Securities
by operation of the applicable sinking fund during the continuance of a default in payment of interest on Securities of such series or of any Event of Default with respect to such series, except that if the notice of redemption of any Securities
shall theretofore have been mailed in accordance with the provisions hereof, the Trustee shall redeem such Securities if cash sufficient for that purpose shall be deposited with the Trustee for that purpose in accordance with the terms of this
Article 11. Except as aforesaid, any moneys in the sinking fund with respect to Securities of any series at the time when any such default or Event of Default with respect to such series shall occur, and any moneys thereafter paid into such sinking
fund shall, during the continuance of such default or Event of Default with respect to such series, be held as security for the payment of all Securities of such series; provided, however, that in case such default or Event of Default with respect
to such series shall have been cured or waived as provided herein, such moneys shall thereafter be applied on the next sinking fund payment date on which such moneys may be applied pursuant to the provisions of this Section 11.08. 

ARTICLE XII 
 REPAYMENT
AT OPTION OF HOLDERS 
 Section 12.01 Applicability of Article. Repayment of Securities of any series before their Scheduled
Maturity Date at the option of Holders thereof shall be made in accordance with the terms of such Securities and (except as otherwise specified as contemplated by Section 3.01 for Securities of any series) in accordance with this Article. 

Section 12.02 Repayment of Securities. Securities of any series subject to repayment in whole or in part at the option of the
Holders thereof will, unless otherwise provided in the terms of such Securities, be repaid at a price equal to the principal amount thereof, together with interest thereon accrued to the Repayment Date specified in the terms of such Securities. On
or before the Repayment Date, the Company will deposit with the Trustee or with a Paying Agent (or, if the Company is acting as its own Paying Agent, segregate and hold in trust as provided in Section 10.03) an amount of money, in immediately
available funds, sufficient to pay the Repayment Price of all the Securities which are to be repaid on such date. 
 Section 12.03
Exercise of Option. Securities of any series subject to repayment at the option of the Holders thereof will contain an “Option to Elect Repayment” form on the reverse of such Securities. To be repaid at the option of the
Holder, any Security so providing for such repayment, with the “Option to Elect Repayment” form on the reverse of such Security duly completed by the Holder, must be received by the Company at the Place of Payment therefor specified
in the terms of such Security (or at such other place or places of which the Company shall from time to time notify the Holders of such Securities) not earlier than 30 days nor later than 15 days prior to the Repayment Date. If less than the entire
principal amount of such Security is to be repaid in accordance with the terms of such Security, the principal amount of such Security to be repaid, in increments of $1,000 unless otherwise specified in the terms of such Security, and the
denomination or denominations of the Security or Securities to be issued to the Holder for the portion of the principal amount of such Security surrendered that is not to be repaid must be specified. The principal amount of any Security providing
for repayment at the option of the Holder thereof may not be repaid in part, if, following such repayment, the unpaid principal amount of such Security would be less than the minimum authorized denomination of Securities of the series of which such
Security to be repaid is a part. Except as otherwise may be provided by the terms of any Security providing for repayment at the option of the Holder thereof, exercise of the repayment option by the Holder shall be irrevocable unless waived by the
Company. 

  
 -42- 

 Section 12.04 When Securities Presented for Repayment Become Due and Payable. If
Securities of any series providing for repayment at the option of the Holders thereof shall have been surrendered as provided in this Article and as provided by the terms of such Securities, such Securities or the portions thereof, as the case may
be, to be repaid shall become due and payable and shall be paid by the Company on the Repayment Date therein specified, and on and after such Repayment Date (unless the Company shall default in the payment of such Securities on such Repayment Date)
interest on such Securities or the portions thereof, as the case may be, shall cease to accrue. 
 Section 12.05 Securities Repaid
in Part. Upon surrender of any Security which is to be repaid in part only, the Company shall execute and the Trustee shall authenticate and deliver to the Holder of such Security, without service charge and at the expense of the Company, a new
Security or Securities of the same series, tenor, terms and Scheduled Maturity Date, of any authorized denomination specified by the Holder, in an aggregate principal amount equal to and in exchange for the portion of the principal of such Security
so surrendered which is not to be repaid. 
 (signature page follows) 

  
 -43- 

 IN WITNESS WHEREOF, the parties hereto have caused this Indenture to be duly executed, and their
respective corporate seals to be hereunto affixed and attested; all as of the day and year first above written. 
  

			
	CYTODYN INC.
		
	By:	 	  

	Name:	 	
	Title:	 	

  

			
	Attest:
		
	By:	 	  

	Name:	 	
	Title:	 	

  

			
	TRUSTEE
		
	By:	 	  

	Name:	 	
	Title:	 	

  

			
	Attest:
		
	By:	 	  

	Name:	 	
	Title:	 	

 State of 
 ss.:

 County of 
 On the
[    ] day of [            ], 20[    ] before me personally came
[                    ] to me known, who, being by me duly sworn, did depose and say that he resides at
[                    ]; that he is of
[                    ], one of the parties described in and which executed the above instrument; that he knows the corporate seal of said
corporation; that the seal affixed to that instrument is such corporate seal; that it was affixed by authority of the board of directors of said corporation; and that he signed his name thereto by like authority. 

 

			
	  

	Name	 	
	
	Notary Public

 State of 

ss.: 
 County of 

On the [    ] day of             ,
20[    ] before me personally came [                    ], to me known, who, being by me duly sworn, did depose and say that he
resides at [                    ]; that he is the
[                    ] of CytoDyn Inc., one of the parties described in and which executed the above instrument; that he knows the corporate seal of
said corporation; that the seal affixed to that instrument is such corporate seal; that it was affixed by authority of the board of directors of said corporation; and that he signed his name thereto by like authority. 

 

			
	  

	Name
	
	Notary Public

  
 -44-EXHIBIT 4.11

CANADA JETLINES LTD.

AND

JET METAL CORP.

	
AMALGAMATION AGREEMENT

DATED APRIL 12, 2016

 

AMALGAMATION AGREEMENT

THIS AMALGAMATION AGREEMENT dated April 12, 2016

BETWEEN:

CANADA JETLINES LTD., a corporation existing under the federal Laws of Canada ("Jetlines")

- and –

JET METAL CORP., a corporation existing under the Laws of the Province of British Columbia ("Jet")

- and –

JET METAL ACQUISITION CORP., a corporation to be incorporated under the Canada Business Corporations Act ("Jet Subco")

RECITALS:

	A.	Jet is a reporting issuer under Canadian securities legislation with its shares listed for trading on the TSXV.

	B.	Jetlines is a private start-up airline.

	C.	Jet will cause Jet Subco to be incorporated under the CBCA (as defined herein) as a wholly-owned subsidiary of Jet.

	D.	Jet and Jetlines propose a business combination whereby Jet Subco and Jetlines will amalgamate under the CBCA (as defined herein) on the terms described in this Agreement and continue as one corporation.

	D.	Prior to the Amalgamation, Jet must effect the Consolidation (as defined herein) and the Continuance (as defined herein).

	F.	The Jetlines Board has determined, after receiving financial and legal advice, that the transactions contemplated by this Agreement are fair and that the Amalgamation is in the best interests of Jetlines, and the Jetlines Board has unanimously resolved to recommend that the Jetlines Shareholders vote in favour of the Amalgamation, all subject to the terms and the conditions contained in this Agreement.

	G.	The Jet Board has determined, after receiving financial and legal advice, that the transactions contemplated by this Agreement are fair and that the Consolidation, Continuance and Change of Business are in the best interests of Jet, and the Jet Board has unanimously resolved to recommend that the Jet Shareholders vote in favour of the Consolidation, Continuance and Change of Business, all subject to the terms and the conditions contained in this Agreement.

2

 

	H.	Jet has entered into the Jetlines Voting Agreements with the Jetlines Locked-Up Shareholders, pursuant to which, among other things, the Jetlines Lock-Up Shareholders have agreed, subject to the terms and conditions thereof, to vote the Jetlines Shares held by them in favour of the Amalgamation.

	I.	Jetlines has entered into the Jet Voting Agreements with the Jet Locked-Up Shareholders, pursuant to which, among other things, the Jet Locked-Up Shareholders have agreed, subject to the terms and conditions thereof, to vote the Jet Shares held by them in favour of the Consolidation, Continuance and the Change of Business.

THIS AGREEMENT WITNESSES THAT in consideration of the covenants and agreements herein contained and other good and valuable consideration (the receipt and sufficiency of which are hereby acknowledged), the Parties hereto covenant and agree as follows:

ARTICLE 1

 INTERPRETATION

	
1.1

	
Definitions

In this Agreement, unless the context otherwise requires:

"Acquisition Proposal" means a proposal or offer, oral or written, relating to any merger, take over bid, amalgamation, plan of arrangement, business combination, consolidation, recapitalization, reorganization, issuer bid, liquidation or winding-up or similar transaction or sale of assets, or any transaction being economically or functionally equivalent to any of the foregoing, whether in a single transaction or a series of transactions, in respect of either Jetlines or Jet, as applicable, involving 20% or more of the consolidated assets of Jetlines or Jet, as applicable, or 20% or more of the outstanding voting shares of Jetlines or Jet, as applicable, other than the transactions contemplated by this Agreement and any other transaction involving Jetlines and Jet;

"affiliate" has the meaning ascribed thereto in the National Instrument 45-106 – Prospectus and Registration Exemptions;

"Agreement" means this Amalgamation Agreement, including all schedules annexed hereto, as the same may be amended, supplemented or otherwise modified from time to time in accordance with the terms hereof;

"Amalco" means the continuing amalgamated corporation following the Effective Time created by the Amalgamation;

"Amalco Common Voting Shares" means the common voting shares in the capital of Amalco;

3

 

"Amalco Shares" means the Amalco Common Voting Shares and Amalco Variable Voting Shares;

 "Amalco Variable Voting Shares" means the variable voting shares in the capital of Amalco;

"Amalgamation" means the amalgamation of Jet Subco and Jetlines under the provisions of section 181 of the CBCA contemplated by this Agreement;

"Articles of Amalgamation" means the articles of amalgamation in respect of the Amalgamation required under section 185 of the CBCA to be filed with the Director, to be substantially in the form attached as Schedule "F" hereto;

"Authorization" means any authorization, order, permit, approval, grant, licence, registration, consent, right, notification, condition, franchise, privilege, certificate, judgment, writ, injunction, award, determination, direction, decision, decree, bylaw, rule or regulation, whether or not having the force of Law, and includes any Environmental Permit;

"BCBCA" means the Business Corporations Act (British Columbia) and the regulations made thereunder, as now in effect and as they may be promulgated or amended from time to time;

"Bridge Financing" means the Jetlines financing for aggregate proceeds of up to $250,000 comprised of Jetlines Shares and Jetlines Warrants, at an effective post-transaction price of not less than $0.30 (with any Jetlines Warrants having an effective post-Amalgamation exercise price of $0.375), calculated by dividing the price of such financing by the exchange ratio of one and one-half (1.5);

"business day" means any day, other than a Saturday, a Sunday or a statutory or civic holiday in Toronto, Ontario or Vancouver, British Columbia;

"Canadian" has the meaning ascribed thereto in section 55(1) of the Canada Transportation Act;

"CBCA" means the Canada Business Corporations Act and the regulations made thereunder, as now in effect and as they may be promulgated or amended from time to time;

"Certificate of Amalgamation" means the certificate to be issued by the Director under section 185 of the CBCA to give effect to the Amalgamation;

"Change of Business" has the meaning ascribed to that term in TSXV policy 1.1 – Interpretation as it applies to Jet changing its business from a "mining issuer" to an "industrial issuer";

4

 

"Claim" means any demand, action, cause of action, investigation, inquiry, suit, proceeding, claim, complaint, arbitration, charge, prosecution, assessment or reassessment, including any appeal or application for review, judgment, arbitration, award, grievance, settlement or compromise;

"Consolidation" has the meaning ascribed to that term in 2.3(a);

"Continuance" means the the continuance of Jet from the jurisdiction of British Columbia to the jurisdiction of Canada pursuant to section 308 of the BCBCA and section 187 of the CBCA, such continuance to occur prior to the Amalgamation;

 "Contract" means any contract, agreement, license, franchise, lease, arrangement, commitment, understanding, joint venture, partnership or other right or obligation (written or oral) to which a Party is a party or by which it is bound or affected or to which any of their respective properties or assets is subject;

"Depositary" means any trust company, bank or other financial institution agreed to in writing by Jetlines and Jet for the purpose of, among other things, exchanging certificates representing Jetlines Shares for Jet Shares in connection with the Amalgamation;

"Director" means the director appointed under section 260 of the CBCA;

"Effective Date" means the date the Amalgamation is effective as set out on the Certificate of Amalgamation;

"Effective Time" means 12:01 a.m. (Vancouver time) on the Effective Date, or such other time as the parties may agree;

 "Environmental Laws" means all Laws, imposing obligations, responsibilities, liabilities or standards of conduct for or relating to: (a) the regulation or control of pollution, contamination, activities, materials, substances or wastes in connection with or for the protection of human health or safety, the environment or natural resources (including climate, air, surface water, groundwater, wetlands, land surface, subsurface strata, wildlife, aquatic species and vegetation); or (b) the use, generation, disposal, treatment, processing, recycling, handling, transport, distribution, destruction, transfer, import, export or sale of Hazardous Substances;

"Environmental Liabilities" means, with respect to any Person, all liabilities, obligations, responsibilities, responses, losses, damages, punitive damages, property damages, consequential damages, treble damages, costs (including control, remedial and removal costs, investigation costs, capital costs, operation and maintenance costs), expenses, fines, penalties and sanctions incurred as a result of or related to any claim, suit, action, administrative or court order, investigation, proceeding or demand by any Person, arising under or related to any Environmental Laws, Environmental Permits, or in connection with any: (a) Release or threatened Release or presence of a Hazardous Substance; (b) tank,

5

 

drum, pipe or other container that contains or contained a Hazardous Substance; or (c) use, generation, disposal, treatment, processing, recycling, handling, transport, transfer, import, export or sale of Hazardous Substance.

"Environmental Permits" means all Permits or program participation requirements with or from any Governmental Entity under any Environmental Laws;

"Financing" means the financing by issuance of securities of Jet for gross proceeds of not less than $5,000,000 to be completed in connection with the Amalgamation;

"Governmental Entity" means: (a) any multinational, federal, provincial, territorial, state, regional, municipal, local or other government, governmental or public department, central bank, court, tribunal, arbitral body, commission, board, bureau, agency or entity, domestic or foreign; (b) any stock exchange, including the TSXV; (c) any subdivision, agent, commission, board or authority of any of the foregoing; or (d) any quasi-governmental or private body, including any tribunal, commission, regulatory agency or self-regulatory organization, exercising any regulatory, expropriation or taxing authority under or for the account of any of the foregoing;

"GSA" means the General Security Agreement dated February 24, 2016 between Jet and Jetlines;

"Hazardous Substance" means any pollutant, contaminant, waste or chemical or any toxic, radioactive, ignitable, corrosive, reactive or otherwise hazardous or deleterious substance, waste or material, including hydrogen sulphide, arsenic, cadmium, copper, lead, mercury, petroleum, polychlorinated biphenyls, asbestos and urea-formaldehyde insulation, and any other material, substance, pollutant or contaminant regulated or defined pursuant to, or that could result in liability under, any Environmental Law;

"IFRS" means International Financial Reporting Standards;

"including" means including without limitation, and "include" and "includes" have a corresponding meaning;

"In-the-Money Amount" in respect of a stock option means the amount, if any, by which the aggregate fair market value at that time of the securities subject to the option exceeds the aggregate exercise price of the option;

"Jet Benefit Plans" means any pension or retirement income plans or other employee compensation, other than equity- or security-based compensation arrangements, or benefit plans, agreements, policies, programs, arrangements or practices, whether written or oral, which are maintained by or binding upon Jet or for which Jet could have any liability;

6

 

"Jet Board" means the board of directors of Jet as the same is constituted from time to time;

"Jet Circular" means the notice of the Jet Meeting and accompanying management information circular, including all schedules, appendices and exhibits thereto and enclosures therewith, to be sent to the Jet Shareholders in connection with the Jet Meeting, as amended, supplemented or otherwise modified from time to time;

"Jet Common Voting Shares" means the common voting shares in the capital of Jet;

"Jet Debt Settlement" means the issuance of Jet Shares to King & Bay West at the price of the Financing (after taking into consideration the Consolidation) in order to settle $100,000 of outstanding debt and the balance of Jet's outstanding debt shall be settled in cash;

"Jet Dissent Rights" means the rights of dissent exercisable by the Jet Shareholders in respect of the Continuance pursuant to the BCBCA;

"Jet Dissenting Shareholder" means a registered Jet Shareholder who duly exercises its Jet Dissent Rights and has not withdrawn or been deemed to have withdrawn such exercise of Jet Dissent Rights;

"Jet Locked-up Shareholders" means Mark J. Morabito, King & Bay West, MJM Consulting Corp., Olen J. Aasen, Carlo Valente, Kate-Lynn Genzel, Mark Lotz, Kenneth Brophy, Sheila Paine and Charles Stewart Wallis;

"Jet Material Adverse Effect" means any one or more changes, effects, events, occurrences or states of fact, either individually or in the aggregate, that is, or would reasonably be expected to be, material and adverse to the assets, liabilities (including any contingent liabilities that may arise through outstanding, pending or threatened litigation or otherwise), business, operations, prospects, results of operations, capital, property, obligations (whether absolute, accrued, conditional or otherwise) or financial condition of Jet, other than changes, effects, events, occurrences or states of fact resulting from: (a) a change in the market price of the Jet Shares following and reasonably attributable to the public announcement of the execution of this Agreement and the transactions contemplated hereby; (b) general economic, financial, currency exchange, securities or commodity market conditions in Canada or the United States; (c) any change in IFRS occurring after the date hereof; (d) any change in applicable Laws or in the interpretation thereof by any Governmental Entity occurring after the date hereof; (e) the commencement, occurrence or continuation of any war, armed hostilities or acts of terrorism; or (f) any natural disaster; provided, however, that with respect to clauses (b) to (f), such changes do not relate primarily to Jet, or do not have a disproportionate effect on Jet, compared to other companies of similar size and business, and references in this Agreement to dollar amounts are not intended to

7

 

be and shall not be deemed to be illustrative or interpretative for purposes of determining whether an "Jet Material Adverse Effect" has occurred;

"Jet Meeting" means the special meeting of Jet Shareholders, including any adjournment or postponement thereof, to be called for the purpose of obtaining the Jet Shareholder Approval;

"Jet Optionholders" means the holders of options to acquire Jet Shares pursuant to the Jet Option Plan;

"Jet Option Plan" means the stock option plan of Jet currently in effect as such plan may be amended and approved at the Jet Meeting;

"Jet Proposed Agreement" has the meaning ascribed to that term in Section 7.2(e);

"Jet Public Documents" means all documents and information filed by Jet under applicable Securities Laws on the System for Electronic Document Analysis Retrieval (SEDAR), during the two years prior to the date hereof;

"Jet Shareholder Approval" means that the requisite approval for the Jet Transaction Resolution, which shall be 662/3% of the votes cast on such resolutions by Jet Shareholders, present in person or by proxy at the Jet Meeting;

"Jet Shareholders" means the holders of Jet Shares;

"Jet Shares" means the Jet Common Voting Shares, and after the Continuance means the Jet Common Voting Shares and the Jet Variable Voting Shares;

"Jet Subco" means Jet Metal Acquisition Corp., a compay to be incorporated under the CBCA as a wholly-owned subsidiary of Jet;

"Jet Subco Dissent Rights" means the rights of dissent exercisable by the Jet Subco Shareholders in respect of the Amalgamation pursuant to the CBCBA;

"Jet Subco Shares" means the common voting shares in the capital of Jet Subco;

"Jet Transaction Resolution" means the special resolution of the Jet Shareholders approving the Change of Business, Consolidation and Continuance which is to be considered at the Jet Meeting, substantially in the form and content of Schedule "A" hereto;

"Jet Variable Voting Shares" means, after the Continuance, the variable voting shares in the capital of Jet;

"Jet Voting Agreements" means the voting agreements (including all amendments thereto) between Jetlines and the Jet Locked-up Shareholders setting forth the terms and conditions upon which they have agreed, among other things,

8

 

to vote their Jet Shares in favour of the Continuance, Consolidation and the Change of Business, substantially in the form attached to Schedule "D" hereto;

"Jet Warrants" means the outstanding warrants to purchase Jet Shares;

"Jetlines Amalgamation Resolution" means the special resolution of the Jetlines Shareholders approving the Amalgamation which is to be considered at the Jetlines Meeting, substantially in the form and content of Schedule "C" hereto;

"Jetlines Benefit Plans" means any pension or retirement income plans or other employee compensation, other than equity- or security-based compensation arrangements, or benefit plans, agreements, policies, programs, arrangements or practices, whether written or oral, which are maintained by or binding upon Jetlines or for which Jetlines could have any liability;

"Jetlines Board" means the board of directors of Jetlines as the same is constituted from time to time;

"Jetlines Change in Recommendation" has the meaning ascribed thereto in Section 8.2(a)(iii)(A);

"Jetlines Circular" means the notice of the Jetlines Meeting and accompanying management information circular, including all schedules, appendices and exhibits thereto and enclosures therewith, to be sent to the Jetlines Shareholders in connection with the Jetlines Meeting, as amended, supplemented or otherwise modified from time to time;

"Jetlines Common Voting Shares" means the common voting shares in the capital of Jetlines;

"Jetlines Dissent Rights" means the rights of dissent exercisable by the Jetlines Shareholders in respect of the Amalgamation pursuant to the CBCA;

"Jetlines Dissenting Shareholder" means a registered Jetlines Shareholder who duly exercises its Jetlines Dissent Rights and has not withdrawn or been deemed to have withdrawn such exercise of Jetlines Dissent Rights;

"Jetlines Locked-up Shareholders" means Daniel James Scott, Dixon Lawson, D.W. Lawson Consulting Inc., Rick Lang, John Korenic, John Sutherland and Donald Sorochan;

"Jetlines Material Adverse Effect" means any one or more changes, effects, events, occurrences or states of fact, either individually or in the aggregate, that is, or would reasonably be expected to be, material and adverse to the assets, liabilities (including any contingent liabilities that may arise through outstanding, pending or threatened litigation or otherwise), business, operations, prospects, results of operations, capital, property, obligations (whether absolute, accrued, conditional or otherwise) or financial condition of Jetlines, other than changes,

9

 

effects, events, occurrences or states of fact resulting from: (a) a change in the market price of the Jetlines Shares following and reasonably attributable to the public announcement of the execution of this Agreement and the transactions contemplated hereby, (b) any changes affecting the global airline industry generally; (c) general economic, financial, currency exchange, securities or commodity market conditions in Canada or the United States; (d) any change in IFRS occurring after the date hereof; (e) any change in applicable Laws or in the interpretation thereof by any Governmental Entity occurring after the date hereof; (f) the commencement, occurrence or continuation of any war, armed hostilities or acts of terrorism; or (g) any natural disaster, provided, however, that with respect to clauses (b) to (g), such changes do not relate primarily to Jetlines, or do not have a disproportionate effect on Jetlines, compared to other companies of similar size operating in the airline industry and references in this Agreement to dollar amounts are not intended to be and shall not be deemed to be illustrative or interpretative for purposes of determining whether a "Jetlines Material Adverse Effect" has occurred;

"Jetlines Meeting" means the special meeting of Jetlines Shareholders, including any adjournment or postponement thereof, to be called for the purpose of obtaining the Jetlines Shareholder Approval;

"Jetlines Options" means the outstanding options to purchase Jetlines Shares;

"Jetlines Optionholders" means the holders of Jetlines Options;

"Jetlines Option Plan" means the stock option plan of Jetlines currently in effect;

 "Jetlines Proposed Agreement" has the meaning ascribed to that term in Section 7.1(e);

"Jetlines Shareholder Approval" means that the requisite approval for the Jetlines Amalgamation Resolution, which shall be 662/3% of the votes cast on such resolution by Jetlines Shareholders, present in person or by proxy at the Jetlines Meeting;

"Jetlines Shareholders" means the holders of Jetlines Shares;

"Jetlines Shares" means the Jetlines Common Voting Shares and the Jetlines Variable Voting Shares;

"Jetlines Warrants" means the outstanding warrants to purchase Jetlines Shares;

"Jetlines Warrantholders" means the holders of Jetlines Warrants;

"Jetlines Variable Voting Shares" means the variable voting shares in the capital of Jetlines;

10

 

"Jetlines Voting Agreements" means the voting agreements (including all amendments thereto) between Jet and the Jetlines Locked-up Shareholders setting forth the terms and conditions upon which they have agreed, among other things, to vote their Jetlines Shares in favour of the Amalgamation, substantially in the form attached to Schedule "E" hereto.

"King & Bay West" means King & Bay West Management Corp.;

"King & Bay West Agreement" means the Management Services Agreement between Jet and King & Bay West dated September 16, 2014;

"Law" or "Laws" means all laws (including common law), by-laws, statutes, rules, regulations, principles of law and equity, orders, rulings, ordinances, judgements, injunctions, determinations, awards, decrees or other requirements, whether domestic or foreign, and the terms and conditions of any Permit of or from any Governmental Entity or self-regulatory authority (including the TSXV), and the term "applicable" with respect to such Laws and in a context that refers to a Party, means such Laws as are applicable to such Party or its business, undertaking, property or securities and emanate from a Person having jurisdiction over the Party or its business, undertaking, property or securities;

"Liens" means any hypothecs, mortgages, pledges, assignments, liens, charges, security interests, encumbrances and adverse rights or claims, other third party interest or encumbrance of any kind, whether contingent or absolute, and any agreement, option, right or privilege (whether by Law, contract or otherwise) capable of becoming any of the foregoing;

"Loan Agreement" means the Loan Agreement dated February 24, 2016 between Jetlines and Jet;

"Losses" means any and all loss, liability, damage, cost, expense, charge, fine, penalty or assessment, interest charges, punitive damages, fines, penalties and reasonable professional fees and disbursements, including in connection with any Claim;

"Mailing Deadline" means May 20, 2016, or such other date as may be agreed to by the Parties;

"material fact" and "material change" have the meanings ascribed thereto in the Securities Act;

"Meeting Deadline" means June 20, 2016, or such other date as may be agreed to by the Parties;

 "misrepresentation" has the meaning ascribed thereto in the Securities Act;

11

 

"New King & Bay West Agreement" means the King & Bay West Agreement with amendments that have been agreed to by the Parties and in the form set out in Schedule "H" hereto;

"ordinary course of business", "ordinary course of business consistent with past practice", or any similar reference, means, with respect to an action taken by a Person, that such action is consistent with the past practices of such Person and is takenn the ordinary course of the normal day-to-day business and operations of such Person; provided that in any event such action is not unreasonable or unusual;

"QTCQB" means The OTCQB® Venture Marketplace operated by OTC Markets Group Inc.;

"Outside Date" means July 15, 2016, or such later date as may be agreed to in writing by the Parties;

"Parties" means Jetlines and Jet and "Party" means any of them;

 "Permit" means any license, permit, certificate, consent, order, grant, approval, agreement, classification, restriction, registration or other Authorization of, from or required by any Governmental Entity;

"Person" includes an individual, partnership, association, body corporate, trustee, executor, administrator, legal representative, government (including any Governmental Entity) or any other entity, whether or not having legal status;

"Regulatory Approvals" means those sanctions, rulings, consents, orders, exemptions, permits and other approvals (including the waiver or lapse, without objection, of a prescribed time under a statute or regulation that states that a transaction may be implemented if a prescribed time lapses following the giving of notice without an objection being made) of Governmental Entities;

"Release" means any release, spill, emission, leaking, pumping, pouring, emitting, emptying, escape, injection, deposit, disposal, discharge, dispersal, dumping, leaching or migration of any Hazardous Substance in the indoor or outdoor environment, including the movement of Hazardous Substance through or in the air, soil, surface water, ground water or property;

"Restricted Shares" means the Jet Shares that will be issued to Jetlines Locked-up Shareholders pursuant to the Amalgamation, and the Jet Shares held by the Jet Locked-up Shareholders, and in each case that will bear a restrictive legend setting forth the resale restrictions more particularly described in Section 2.5(h);

"Securities Act" means the Securities Act (British Columbia) and the rules, regulations and published policies made thereunder, as now in effect and as they may be promulgated or amended from time to time;

12

 

"Securities Laws" means the Securities Act, together with all other applicable state, federal and provincial securities Laws, rules and regulations and published policies thereunder, as now in effect and as they may be promulgated or amended from time to time;

"SEDAR" means the System for Electronic Document Analysis and Retrieval;

 "Subsidiary" has the meaning ascribed thereto in the National Instrument 45-106 – Prospectus and Registration Exemptions;

"Superior Proposal" means an unsolicited bona fide Acquisition Proposal made by a third party to a Party or its shareholders in writing after the date hereof: (i) to purchase or otherwise acquire, directly or indirectly, by means of a merger, take-over bid, amalgamation, plan of arrangement, business combination, consolidation, recapitalization, liquidation, winding-up or similar transaction, all of the Jetlines Shares or all of the Jet Shares, as the case may be, and offering or making available the same consideration in form and amount to all shareholders of the Party to be purchased or otherwise acquired; (ii) that is reasonably capable of being completed without undue delay, taking into account all legal, financial, regulatory and other aspects of such proposal and the party making such proposal; (iii) is not subject to any financing condition and in respect of which any required financing to complete such Acquisition Proposal has been demonstrated to be available to the satisfaction of the board of directors of such Party, acting in good faith (after receipt of advice from its financial advisors and outside legal counsel); (iv) which is not subject to a due diligence or access condition; (v) that did not result from a breach of Section 7.1 or Section 7.2 as the case may be, by the receiving Party or its representatives; (vi) is made available to all Jetlines Shareholders or Jet Shareholders, as the case may be, on the same terms and conditions; (vii) in respect of which the board of directors of such Party determines in good faith (after receipt of advice from its outside legal counsel with respect to (x) below and financial advisors with respect to (y) below) that (x) failure to recommend such Acquisition Proposal to its shareholders would be inconsistent with its fiduciary duties and (y) which would, taking into account all of the terms and conditions of such Acquisition Proposal, if consummated in accordance with its terms (but not assuming away any risk of non-completion), result in a transaction more favourable to its shareholders from a financial point of view than the Amalgamation (including any adjustment to the terms and conditions of the Amalgamation proposed by the other Party pursuant to Subsection 7.1(f) or Subsection 7.2(f), as the case may be);

"Tax Act" means the Income Tax Act (Canada) and the regulations made thereunder, as now in effect and as they may be promulgated or amended from time to time;

"Taxes" means all taxes, duties, fees, premiums, assessments, imposts, levies, expansion fees and other charges of any kind whatsoever imposed by any Governmental Entity, including all interest, penalties, fines, additions to tax or

13

 

other additional amounts imposed by any Governmental Entity in respect thereof, and including those levied on, or measured by, or referred to as, income, gross receipts, profits, windfall, royalty, capital, transfer, land transfer, sales, goods and services, harmonized sales, use, value-added, excise, stamp, withholding, business, franchising, property, development, occupancy, employer health, payroll, employment, health, social services, education and social security taxes, all surtaxes, all customs duties and import and export taxes, countervail and anti-dumping, all licence, franchise and registration fees and all employment insurance, health insurance and Canada, Québec and other pension plan premiums or contributions imposed by any Governmental Entity, and any transferee liability in respect of any of the foregoing;

"Tax Returns" means all returns, reports, declarations, elections, notices, filings, forms, statements and other documents (whether in tangible, electronic or other form) and including any amendments, schedules, attachments, supplements, appendices and exhibits thereto, required by a Governmental Entity to be made or filed in accordance with applicable Laws in respect of Taxes;

"TSXV" means the TSX Venture Exchange;

"TSXV Approval" means the conditional approval of the TSXV in respect of the Change of Business and the approval of the listing of the Jet Shares issuable to Jetlines Shareholders pursuant to the Amalgamation and upon exercise of Jetlines Options or Jetlines Warrants following completion of the Amalgamation;

"United States" means the United States of America, its territories and possessions, any State of the United States and the District of Columbia;

"U.S. Exchange Act" means the United States Securities Exchange Act of 1934, as amended and the rules and regulations promulgated thereunder;

"U.S. Person" has the meaning ascribed to it in Rule 902 of Regulation S of the U.S. Securities Act; and

"U.S. Securities Act" means the United States Securities Act of 1933, as amended and the rules and regulations promulgated thereunder.

	
1.2

	
Interpretation Not Affected by Headings

The division of this Agreement into Articles, Sections, subsections and paragraphs and the insertion of headings are for convenience of reference only and shall not affect in any way the meaning or interpretation of this Agreement. Unless the contrary intention appears, references in this Agreement to an Article, Section, subsection, paragraph or Schedule by number or letter or both refer to the Article, Section, subsection, paragraph or Schedule, respectively, bearing that designation in this Agreement.

14

 

	
1.3

	
Number and Gender

In this Agreement, unless the contrary intention appears, words importing the singular include the plural and vice versa, and words importing gender include all genders.

	
1.4

	
Date for Any Action

If the date on which any action is required to be taken hereunder by a Party is not a business day, such action shall be required to be taken on the next succeeding day which is a business day.

	
1.5

	
Currency

Unless otherwise stated, all references in this Agreement to sums of money are expressed in lawful money of Canada and "$" refers to Canadian dollars.

	
1.6

	
Knowledge

	
(a)

	
In this Agreement, references to "the knowledge of Jetlines" means the actual knowledge of Daniel James Scott, Chief Executive Officer and President; Rick Lang, Chief Operating Officer; John Korenic, VP Commercial and IT; Dixon Lawson, VP Strategic Planning and Cost Control; and John Sutherland, Chief Financial Officer and VP Human Resources, in each case, after making due enquiries regarding the relevant matter.

	
(b)

	
In this Agreement, references to "the knowledge of Jet" means the actual knowledge of Mark J. Morabito, Chief Executive Officer; and Kate-Lynn Genzel, Chief Financial Officer, in each case, after making due enquiries regarding the relevant matter.

	
1.7

	
Schedules

The following Schedules are annexed to this Agreement and are incorporated by reference into this Agreement and form a part hereof:

Schedule A - Jet Transaction Resolution

Schedule B - Jet Subco Amalgamation Resolution

Schedule C - Jetlines Amalgamation Resolution

Schedule D - Jet Voting Agreement

Schedule E - Jetlines Voting Agreement

Schedule F - Articles of Amalgamation

Schedule G - Exceptions to Representations and Warranties

Schedule H - New King & Bay West Agreement

15

 

ARTICLE 2

 THE AMALGAMATION

	
2.1

	
Effect of Amalgamation

On the Effective Date:

	
(a)

	
Jet Subco and Jetlines shall be amalgamated to form Amalco under the provisions of the CBCA and shall continue as one corporation;

	
(b)

	
the property of each of Jet Subco and Jetlines shall continue to be the property of Amalco;

	
(c)

	
Amalco shall be liable for the obligations of each of Jet Subco and Jetlines;

	
(d)

	
any existing cause of action, claim or liability to prosecution with respect to either Jet Subco or Jetlines shall be unaffected;

	
(e)

	
any civil, criminal or administrative action or proceeding pending or against any of Jet Subco or Jetlines may be continued to be prosecuted by or against Amalco;

	
(f)

	
any conviction against, or ruling, order or judgment in favour of or against any of Jet Subco or Jetlines may be enforced by or against Amalco;

	
(g)

	
the Articles of Amalgamation shall be deemed to be the articles of incorporation of Amalco and the Certificate of Amalgamation shall be deemed to be the certificate of incorporation of Amalco;

	
(h)

	
the Articles of Amalgamation attached hereto as Schedule F shall be the articles of Amalco;

	
(i)

	
the by-laws of Amalco shall be the by-laws of Jetlines until repealed, amended or altered;

	
2.2

	
Certain Provisions Applicable to Amalco

	
(a)

	
the name of Amalco shall be "Canada Jetlines Operations Ltd.";

	
(b)

	
the registered office of Amalco shall be 1240 – 1140 West Pender Street, Vancouver, British Columbia, V6E 4G1;

	
(c)

	
Amalco shall have a year-end of December 31;

	
(d)

	
the authorized share capital shall consist of an unlimited number of common voting shares and an unlimited number of variable voting shares;

16

 

	
(e)

	
other than as required by Securities Laws, there shall be no restriction upon the right of transfer of any shares of Amalco;

	
(f)

	
there shall be no restriction on the business which Amalco may carry on;

	
(g)

	
the minimum number of directors of Amalco shall be one (1) and the maximum number of directors of Amalco shall be five (5);

	
(h)

	
the number of first directors of Amalco shall be three (3). The first directors of Amalco shall be:

	
Name

	
Address

	
Daniel James Scott

	
3139 136th Street, Surrey, B.C.

	
Mark J. Morabito

	
5572 Molina Road, North Vancouver, B.C.

	
TBD

	
[to be nominated by Jetlines]

 The first directors shall hold office until the first annual general meeting of the shareholders of Amalco following the Amalgamation, or until their successors are duly appointed or elected. Subsequent directors shall be elected each year thereafter as provided for in the CBCA and the by-laws of Amalco. The management and operation of the business and affairs of Amalco shall be under the control of the board of directors of Amalco as it is constituted from time to time.

	
(i)

	
the first officers of Amalco shall be:

	
Name

	
Office Held

	
Mark J. Morabito

	
Executive Chairman

	
Daniel James Scott

	
Chief Executive Officer

	
John Sutherland

	
Chief Financial Officer and VP Human Resources

	
Dixon Lawson

	
Vice President, Strategic Planning

	
John Korenic

	
Vice President, Commercial and IT

	
Rick Lang

	
Chief Operating Officer

	
Carlo Valente

	
Vice President, Finance

	
Olen Aasen

	
Vice President, Legal

	
(j)

	
the first auditor of Amalco shall be Davidson & Company LLP of Vancouver, British Columbia. The first auditor of Amalco shall hold office until the first annual meeting of the Amalco shareholders following the Amalgamation or until its successor is elected or appointed; and

	
2.3

	
Jet Corporate Matters as of the Effective Date

	
(a)

	
Jet shall immediately prior to the Effective Time:

17

 

	
(i)

	
complete a consolidation of the Jet Shares on the basis of one post-consolidation common share for every one (1) and one-half (1.5) pre-consolidation common shares (the "Consolidation"); and

	
(ii)

	
after the Consolidation, complete the Continuance;

	
(b)

	
the name of Jet shall be changed to "Canada Jetlines Ltd.";

	
(c)

	
the registered office of Jet shall be 1240 – 1140 West Pender Street, Vancouver, British Columbia, V6E 4G1;

	
(d)

	
Jet shall change its year-end to December 31;

	
(e)

	
after the Continuance, but prior to the Amalgamation:

	
(i)

	
the by-laws and articles of continuance of Jet shall be the same as the by-laws and articles of incorporation of Jetlines until repealed, amended or altered.

	
(ii)

	
the authorized share capital of Jet shall consist of an unlimited number of Jet Common Voting Shares and an unlimited number of Jet Variable Voting Shares;

	
(f)

	
the minimum number of directors of Jet shall be three (3) and the maximum number of directors of Jet shall be nine (9);

	
(g)

	
the number of first directors of Jet shall be seven (7). The first directors of Jet shall be:

	
Name

	
Address

	
Daniel James Scott

	
3139 136th Street, Surrey, B.C.

	
Mark J. Morabito

	
5572 Molina Road, North Vancouver, B.C.

	
Rejean Bourque

	
970 Hartland Avenue, Outremont, Quebec

	
Donald Sorochan

	
888 Huntingdon Crescent, North Vancouver, B.C.

	
TBD

	
[to be nominated by Jetlines]

	
TBD

	
[to be nominated by Jetlines]

	
TBD

	
[to be nominated by Jet]

The first directors shall hold office until the first annual general meeting of the shareholders of Jet following the Effective Date, or until their successors are duly appointed or elected. Subsequent directors shall be elected each year thereafter as provided for in the CBCA and the by-laws of Jet. The management and operation of the business and affairs of Jet shall be under the control of the board of directors of Jet as it is constituted from time to time.

	
(h)

	
Jet shall reconstitute its senior management such that all existing officers will resign, if applicable, and the following officers will be appointed in substitution

18

 

thereof, subject to Jet's receipt of all necessary documentation or authorizations to effect such appointments:

	
Name

	
Office Held

	
Mark J. Morabito

	
Executive Chairman

	
Daniel James Scott

	
Chief Executive Officer

	
John Sutherland

	
Chief Financial Officer and VP Human Resources

	
Dixon Lawson

	
Vice President, Strategic Planning

	
John Korenic

	
Vice President, Commercial and IT

	
Rick Lang

	
Chief Operating Officer

	
Carlo Valente

	
Vice President, Finance

	
Olen Aasen

	
Vice President, Legal

 

 provided that, Messrs. Aasen and Valente shall not be employees of Jet or receive compensation from Jet, other than equity-based compensation. The services of Messrs. Aasen and Valente shall be provided pursuant to the New King & Bay West Agreement. The compensation of Mr. Morabito will be on a direct basis from Jet in amounts and on terms consistent with the compensation policies of Jetlines.

	
(i)

	
the auditor of Jet shall be Davidson & Company LLP of Vancouver, British Columbia. The auditor of Jet shall hold office until the first annual meeting of the Jet shareholders following the Effective Date or until its successor is elected or appointed; and

	
(j)

	
the Jet Option Plan shall continue in its current form after the Effective Date. In accordance with Section 2.5, the 750,000 outstanding Jetlines Options shall be converted into Replacement Options in accordance with Section 2.6(a). Each first director of Amalco, except for Rejean Borque, Donald Sorochan, Mark J. Morabito and Daniel James Scott, shall receive a grant of 225,000 Jet Options on the Effective Date. Each of Jet and Jetlines shall be entitled to allocate up to 50% of the remaining available Jet Options for grant on the Effective Date to such persons as it may determine in its sole discretion. After the Effective Date the grant of any additional Jet Options shall be subject to the approval of the Jet compensation committee or board of directors.

	
2.4

	
Conversion of Share Capitals

	
(a)

	
On the Effective Date:

	
(i)

	
each one (1) issued and outstanding Jetlines Share (other than Jetlines Shares held by Jetlines Dissenting Shareholders) shall be converted into one and one-half (1.5) issued, fully paid and non-assessable Jet Shares, provided that holders of Jetlines Shares that are not Canadian, shall receive Jet Variable Voting Shares and holders of Jetlines Shares that are Canadian shall receive Jet Common Voting Shares; and

19

 

	
(ii)

	
each one (1) issued and outstanding Jet Subco Share shall be converted into one issued, fully paid and non-assessable Amalco Share;

	
(b)

	
in consideration for the issuance of Jet Shares under Section 2.4(a)(i), Jet shall receive one fully paid and non-assessable Amalco Share for each Jet Share so issued;

	
(c)

	
no fractional Jet Shares shall be issued to holders of Jetlines Shares; in lieu of any fractional entitlement, the number of Jet Shares issued to each former holder of Jetlines Shares shall be rounded up to the next higher whole number of Jet Shares if the fractional entitlement is greater than 0.5 and shall, without any additional compensation, be rounded down to the next lesser whole number of Jet Shares if the fractional entitlement is equal to or less than 0.5;

	
(d)

	
Each Jetlines Shareholder may exercise Jetlines Dissent Rights in respect of the Amalgamation. Jetlines Dissenting Shareholders who exercise their rights of dissent pursuant to and in the manner set forth in section 190 of the CBCA in connection with the Amalgamation shall, at the Effective Time, cease to have any rights as a Jetlines Shareholder and shall only be entitled to be paid the fair value of the holder's Jetlines Shares by Jetlines in accordance with section 190 of the CBCA. A Jetlines Dissenting Shareholder who is entitled to be paid the fair value of the holder's Jetlines Shares shall be deemed to have transferred its Jetlines Shares to Jetlines and such Jetlines Shares shall be cancelled and cease to be outstanding as of the Effective Time, without any further act or formality free and clear of all Liens. A Jetlines Dissenting Shareholder who for any reason is not entitled to be paid the fair value of the holder's Jetlines Shares shall be treated as if the holder had participated in the Amalgamation on the same basis as non-dissenting Jetlines Shareholders.

	
(e)

	
Each Jet Shareholder may exercise Jet Dissent Rights in respect of the Continuance. Jet Dissenting Shareholders who exercise their rights of dissent pursuant to and in the manner set forth in sections 237 to 247 of the BCBCA in connection with the Continuance, shall, at the Effective Time, cease to have any rights as a Jet Shareholder and shall only be entitled to be paid the fair value of the holder's Jet Shares by Jet in accordance with the BCBCA. A Jet Dissenting Shareholder who is entitled to be paid the fair value of the holder's Jet Shares shall be deemed to have transferred its Jet Shares to Jet and such Jet Shares shall be cancelled and cease to be outstanding as of the Effective Time, without any further act or formality free and clear of all Liens. A Jet Dissenting Shareholder who for any reason is not entitled to be paid the fair value of the holder's Jet Shares shall be treated as if the holder had participated in the Continuance on the same basis as non-dissenting Jet Shareholders.

20

 

	
(f)

	
On the Effective date, Jet, will be the sole shareholder of Jet Subco and having full notice and knowledge of the Jet Subco Dissent Rights and the details of the Amalgamation, Jet hereby irrevocably waives its Jet Subco Dissent Rights in respect of the Amalgamation.

	
(g)

	
Amalco shall add to the stated capital account maintained in respect of the Amalco Shares an amount equal to the aggregate paid-up capital for the purposes of the Tax Act of the Jet Subco Shares immediately before the Effective Time plus the aggregate paid-up capital for the purposes of the Tax Act of the Jetlines Shares immediately before the Effective Time.

	
2.5

	
Share Certificates

On the Effective Date:

	
(a)

	
the registers of transfers of Jet Subco Shares and Jetlines Shares shall be closed;

	
(b)

	
the Jet Subco Shareholders shall cease to be holders of Jet Subco Shares and shall be deemed to be the registered holders of Amalco Shares to which they are entitled, calculated in accordance with the provisions hereof;

	
(c)

	
certificates representing Amalco Shares issuable to each Jet Subco Shareholder pursuant to the Amalgamation will, as soon as practicable, but no later than five (5) Business Days following the later of the Effective Date and the date of deposit with the Depositary of a duly completed letter of transmittal and the certificates representing those Jet Subco Shares, be:

	
(i)

	
forwarded by the Depositary to that holder, at the address specified in the letter of transmittal, by first class mail (postage prepaid); or

	
(ii)

	
made available at the Depositary for pick-up by the holder, if requested by the holder in the letter of transmittal;

	
(d)

	
other than the Jetlines Dissenting Shareholders, the Jetlines Shareholders shall cease to be holders of Jetlines Shares and shall be deemed to be the registered holders of Jet Shares to which they are entitled calculated in accordance with the provisions hereof;

	
(e)

	
certificates representing Jet Shares issuable to each Jetlines Shareholder pursuant to the Amalgamation will, as soon as practicable, but no later than five (5) Business Days following the later of the Effective Date and the date of deposit with the Depositary of a duly completed letter of transmittal and the certificates, if applicable, representing those Jetlines Shares, be:

21

 

	
(i)

	
forwarded by the Depositary to that holder, at the address specified in the letter of transmittal, by first class mail (postage prepaid); or

	
(ii)

	
made available at the Depositary for pick-up by the holder, if requested by the holder in the letter of transmittal;

	
(f)

	
any certificate formerly representing Jet Subco Shares or Jetlines Shares, as the case may be, which is not deposited with the Depository on or prior to the third (3rd) anniversary of the Effective Date shall cease to represent a right or claim of any kind or nature whatsoever;

	
(g)

	
the Jet Locked-up Shareholders shall exchange their Jet Shares for Restricted Shares;

	
(h)

	
subject to any additional escrow requirements of the TSXV, the Restricted Shares received by each Jetlines Locked-up Shareholder and Jet Locked-up Shareholder shall be subject to resale restrictions such that (A) 20% of the Restricted Shares may not be traded before three (3) months and a day following the Effective Date, (B) 20% of the Restricted Shares may not be traded before six (6) months and a day following the Effective Date, (C) 20% of the Restricted Shares may not be traded before nine (9) months and a day following the Effective Date, (D) 20% of the Restricted Shares may not be traded before twelve (12) months and a day following the Effective Date, and (E) 20% of the Restricted Shares may not be traded before fifteen (15) months and a day following the Effective Date, and the certificates representing the Restricted Shares shall bear a legend reflecting such restrictions.

	
2.6

	
Jetlines Options and Warrants

	
(a)

	
The Parties agree, subject to all required consents and regulatory approvals, including, but not limited to the approval of the TSXV, each Jetlines Option, which is outstanding and has not been duly exercised prior to the Effective Date, shall be exchanged for an option (each, a "Replacement Option") entitling such holder to receive one and one-half (1.5) Jet Shares for each Jetlines Share previously issuable under such Jetlines Option, at an exercise price per one and one-half (1.5) Jet Shares equal to the respective exercise prices per Jetlines Share under such Jetlines Option.  It is intended that the provisions of subsection 7(1.4) of the Tax Act apply to the aforesaid exchange of options.  Accordingly, and notwithstanding the foregoing, if required, the exercise price of a Replacement Option will be adjusted such that the In-The-Money Amount of the Replacement Option immediately after the exchange does not exceed the In-The-Money Amount of the Jetlines Option immediately before the exchange. All other terms and conditions of the Replacement Option, including the term to expiry, conditions to and manner of exercising, will remain the same and shall be governed by the terms of the applicable Jetlines Option Plan and any certificate or

22

 

option agreement previously evidencing the Jetlines Option shall thereafter evidence and be deemed to evidence such Replacement Option.

	
(b)

	
The Parties agree, subject to all required regulatory approvals, including, but not limited to the approval of the TSXV, that pursuant to the terms of the agreements governing the Jetlines Warrants, holders of Jetlines Warrants shall, following consummation of the Amalgamation, be entitled to acquire, subject to the terms and conditions of the Jetlines Warrantes, one and one-half (1.5) Jet Shares in lieu of each one (1) Jetlines Share that would otherwise be issued pursuant to the terms of the Jetlines Warrants (or if required, amend any Jetlines Warrants to give effect to this section).

	
2.7

	
Jetlines Meeting

Subject to the terms of this Agreement:

	
(a)

	
Jetlines agrees to convene and conduct the Jetlines Meeting in accordance with Jetlines' constating documents and applicable Law as soon as reasonably practicable, and in any event on or before the Meeting Deadline. Jetlines agrees that it shall, in consultation with Jet, fix and publish a record date for the purposes of determining the Jetlines Shareholders entitled to receive notice of and vote at the Jetlines Meeting.

	
(b)

	
Subject to Section 7.1, except as required for quorum purposes or otherwise permitted under this Agreement, Jetlines shall not adjourn (except as required by Law or by valid Jetlines Shareholder action), postpone or cancel (or propose or permit the adjournment (except as required by Law or by valid Jetlines Shareholder action), postponement or cancellation of) the Jetlines Meeting without Jet's prior written consent.

	
(c)

	
Jetlines will promptly advise Jet of any written notice of dissent or purported exercise by any Jetlines Shareholder of Jetlines Dissent Rights received by Jetlines in relation to the Amalgamation and any withdrawal of Jetlines Dissent Rights received by Jetlines and any written communications sent by or on behalf of Jetlines to any Jetlines Shareholder exercising or purporting to exercise Jetlines Dissent Rights in relation to the Amalgamation.

	
2.8

	
Jetlines Circular

	
(a)

	
As promptly as reasonably practicable following execution of this Agreement with a targeted date on or before May 6th, 2016, and in any event prior to the close of business on the Mailing Deadline, Jetlines shall (i) prepare the Jetlines Circular together with any other documents required by applicable Laws, (ii) file the Jetlines Circular in all jurisdictions where the same is required to be filed, and (iii) mail the Jetlines Circular as required under applicable Laws. On the date of mailing thereof, the Jetlines Circular shall comply in all material respects with all

23

 

applicable Laws and shall contain sufficient detail to permit the Jetlines Shareholders to form a reasoned judgement concerning the matters to be placed before them at the Jetlines Meeting.

	
(b)

	
In the event that Jetlines provides a notice to Jet regarding a possible Acquisition Proposal pursuant to Section 7.1(c) prior to the mailing of the Jetlines Circular, then unless the Parties agree otherwise, the Mailing Deadline will be extended until the date that is seven days following the earlier of either (i) written notification from Jetlines to Jet that the Jetlines Board has determined that the Acquisition Proposal is not a Superior Proposal, or (ii) the date on which Jetlines and Jet enter into an amended agreement pursuant to Subsection 7.1(f) which results in the Acquisition Proposal in question not being a Superior Proposal. In the event that the Mailing Deadline is so extended, the Meeting Deadline and the Outside Date shall be extended by the same number of days as the Mailing Deadline has been extended.

	
(c)

	
Jetlines shall ensure that the Jetlines Circular complies in all material respects with all applicable Laws, and, without limiting the generality of the foregoing, that the Jetlines Circular will not contain any misrepresentation (except that Jetlines shall not be responsible for any information relating to Jet and its affiliates, including the Jet Shares).

	
(d)

	
Subject to Section 7.1, Jetlines shall (i) solicit proxies in favour of the Jetlines Amalgamation Resolution, against any resolution submitted by any other Jetlines Shareholder, and take all other actions that are reasonably necessary or desirable to seek the approval of the Amalgamation by Jetlines Shareholders, (ii) have included in the Jetlines Circular the unanimous recommendation from its board to holders of Jetlines Shares that they vote in favour of the Jetlines Amalgamation Resolution, (iii) not make a Jetlines Change in Recommendation and (iv) include in the Jetlines Circular a statement that each director and executive officer of Jetlines intends to vote all of such Person's Jetlines Shares (including any Jetlines Shares issued upon the exercise of any Jetlines Options and Jetlines Warrants) in favour of the Jetlines Amalgamation Resolution, subject to the other terms of this Agreement and the Jetlines Voting Agreements.

	
(e)

	
Jet shall provide to Jetlines all information regarding Jet, its affiliates and the Jet Shares, including any pro forma financial statements prepared in accordance with IFRS and applicable Laws for inclusion in the Jetlines Circular or in any amendments or supplements to such Jetlines Circular. Jet shall also use commercially reasonable efforts to obtain any necessary consents from any of its auditors and any other advisors to the use of any financial, technical or other expert information required to be included in the Jetlines Circular and to the identification in the Jetlines Circular of each such advisor. Jet shall ensure that such information shall be complete and correct in all material respects, shall comply in all material respects with all applicable Laws and, without limiting the generality of the foregoing, shall not include any misrepresentations.

24

 

	
(f)

	
Jet and its legal counsel shall be given a reasonable opportunity to review and comment on the Jetlines Circular prior to the Jetlines Circular being printed and filed with any Governmental Entity, and reasonable consideration shall be given to any comments made by Jet and its legal counsel, provided that all information relating solely to Jet, its affiliates and the Jet Shares included in the Jetlines Circular shall be in form and content satisfactory to Jet, acting reasonably. Jetlines shall provide Jet with final copies of the Jetlines Circular prior to the mailing to the Jetlines Shareholders.

	
(g)

	
Jetlines and Jet shall each promptly notify each other if at any time before the Effective Date either becomes aware that the Jetlines Circular contains a misrepresentation, or that otherwise requires an amendment or supplement to the Jetlines Circular and the Parties shall co-operate in the preparation of any amendment or supplement to the Jetlines Circular as required or appropriate, and Jetlines shall promptly mail or otherwise publicly disseminate any amendment or supplement to the Jetlines Circular to Jetlines Shares and, if required by the Court or applicable Laws, file the same with any Governmental Entity and as otherwise required.

	
2.9

	
Jet Meeting

Subject to the terms of this Agreement:

	
(a)

	
Jet agrees to convene and conduct the Jet Meeting in accordance with Jet's constating documents and applicable Law as soon as reasonably practicable, and in any event on or before the Meeting Deadline. Jet agrees that it shall, in consultation with Jetlines, fix and publish a record date for determining the Jet Shareholders entitled to receive notice of and vote at the Jet Meeting. Jetlines and Jet agree to use their commercially reasonably efforts to schedule the Jetlines Meeting and Jet Meeting on the same day.

	
(b)

	
Subject to Section 7.2, except as required for quorum purposes or otherwise permitted under this Agreement, Jet shall not adjourn (except as required by Law or by valid Jet Shareholder action), postpone or cancel (or propose or permit the adjournment (except as required by Law or by valid Jet Shareholder action), postponement or cancellation of) the Jet Meeting without Jetlines's prior written consent.

	
(c)

	
Jet will advise Jetlines as Jetlines may reasonably request, and at least on a daily basis on each of the last ten (10) business days prior to the date of the Jet Meeting, as to the aggregate tally of the proxies received by Jet in respect of the Jet Transaction Resolution.

	
(d)

	
Jet will promptly advise Jetlines of any written notice of dissent or purported exercise by any Jet Shareholder of Jet Dissent Rights received by Jet in relation to the Continuance and any withdrawal of Jet Dissent Rights received by Jet and any written communications sent by or on behalf of Jet to any Jet Shareholder

25

 

exercising or purporting to exercise Jet Dissent Rights in relation to the Continuance.

	
2.10

	
Jet Circular

	
(a)

	
As promptly as reasonably practicable following execution of this Agreement with a targeted date on or before May 6th, 2016, and in any event prior to the close of business on the Mailing Deadline, Jet shall (i) prepare the Jet Circular together with any other documents required by applicable Laws, (ii) file the Jet Circular in all jurisdictions where the same is required to be filed, and (iii) mail the Jet Circular as required in accordance with all applicable Laws. On the date of mailing thereof, the Jet Circular shall comply in all material respects with all applicable Laws and shall contain sufficient detail to permit the Jet Shareholders to form a reasoned judgement concerning the matters to be placed before them at the Jet Meeting.

	
(b)

	
In the event that Jet provides a notice to Jetlines regarding a possible Acquisition Proposal pursuant to Section 7.2(c) prior to the mailing of the Jet Circular, then unless the Parties agree otherwise, the Mailing Deadline will be extended until the date that is seven days following the earlier of either (i) written notification from Jet to Jetlines that the Board has determined that the Acquisition Proposal is not a Superior Proposal, or (ii) the date on which Jetlines and Jet enter into an amended agreement pursuant to Subsection 7.2(f) which results in the Acquisition Proposal in question not being a Superior Proposal. In the event that the Mailing Deadline is so extended, the Meeting Deadline and the Outside Date shall be extended by the same number of days as the Mailing Deadline has been extended.

	
(c)

	
Jet shall ensure that the Jet Circular complies in all material respects with all applicable Laws, and, without limiting the generality of the foregoing, that the Jet Circular will not contain any misrepresentation (except that Jet shall not be responsible for any information relating to Jetlines and its affiliates, including the Jetlines Shares).

	
(d)

	
Subject to Section 7.2, Jet shall (i) solicit proxies in favour of the Jet Transaction Resolution, and against any resolution submitted by any other Jet Shareholder, and take all other actions that are reasonably necessary or desirable to seek the Jet Shareholder Approval; (ii) have included in the Jet Circular the unanimous recommendation from its board to Jet Shareholders that they vote in favour of the Jet Transaction Resolution; (iii) not make a Jet Change in Recommendation; and (iv) include in the Jet Circular a statement that each director and executive officer of Jet intends to vote all of such Person's Jet Shares (including any Jet Shares issued on exercise of any Jet Options or Jet Warrants) in favour of the Jet Transaction Resolution, subject to the terms of this Agreement and the Jet Voting Agreements.

	
(e)

	
Jetlines shall provide to Jet all information regarding Jetlines, its affiliates and the Jetlines Shares as required by applicable Laws for inclusion in the Jet Circular or

26

 

in any amendments or supplements to such Jet Circular. Jetlines shall also use commercially reasonable efforts to obtain any necessary consents from any of its auditors and any other advisors to the use of any financial, technical or other expert information required to be included in the Jet Circular and to the identification in the Jet Circular of each such advisor. Jetlines shall ensure that no such information will include any misrepresentation concerning Jetlines and the Jetlines Shares.

	
(f)

	
Jetlines and its legal counsel shall be given a reasonable opportunity to review and comment on the Jet Circular prior to the Jet Circular being printed and filed with the Governmental Entities, and reasonable consideration shall be given to any comments made by Jetlines and its counsel, provided that all information relating solely to Jetlines, its affiliates and the Jetlines Shares included in the Jet Circular shall be in form and content satisfactory to Jetlines, acting reasonably. Jet shall provide Jetlines with final copies of the Jet Circular prior to the mailing to the Jet Shareholders.

	
(g)

	
Jetlines and Jet shall each promptly notify each other if at any time before the Effective Date either becomes aware that the Jet Circular contains a misrepresentation, or that otherwise requires an amendment or supplement to the Jet Circular and the Parties shall co-operate in the preparation of any amendment or supplement to the Jet Circular as required or appropriate, and Jet shall promptly mail or otherwise publicly disseminate any amendment or supplement to the Jet Circular to Jet Shareholders and, if required by the  Court or applicable Laws, file the same with the Governmental Entities and as otherwise required.

	
2.11

	
Continuance

Upon receipt of Jet Shareholder Approval of the Continuance, Jet shall promptly effect the Continuance, make all necessary filings required pursuant to the CBCA, the BCBCA and Securities Laws and provide Jetlines with a copy of the certificate of continuance upon issuance by the Director.

	
2.12

	
Preparation of Filings

Jet and Jetlines shall co-operate and use their commercially reasonable efforts to take, or cause to be taken, all reasonable actions, including the preparation of any applications for Regulatory Approvals and other orders, registrations, consents, filings, rulings, exemptions, no-action letters, circulars and approvals required in connection with this Agreement and the Amalgamation and the preparation of any required documents, in each case as reasonably necessary to discharge their respective obligations under this Agreement, the Amalgamation, the Continuance, the Consolidation and to complete any of transactions contemplated by this Agreement, including their obligations under applicable Laws.

	
2.13

	
Announcement and Shareholder Communications

Jet and Jetlines shall each publicly announce the transactions contemplated hereby promptly following the execution of this Agreement by Jet and Jetlines, the text and timing of

27

 

each Party's announcement to be approved by the other Party in advance, acting reasonably. Jet and Jetlines agree to co-operate in the preparation of presentations, if any, to Jetlines Shareholders or Jet Shareholders regarding the transactions contemplated by this Agreement, and no Party shall (i) issue any news release or otherwise make public announcements with respect to this Agreement or the Amalgamation without the consent of the other Party (which consent shall not be unreasonably withheld, conditioned or delayed) or (ii) make any filing with any Governmental Entity with respect thereto without prior consultation with the other Party; provided, however, that the foregoing shall be subject to each Party's overriding obligation to make any disclosure or filing required under applicable Laws or stock exchange rules, and the Party making such disclosure shall use all commercially reasonable efforts to give prior oral or written notice to the other Party and reasonable opportunity to review or comment on the disclosure or filing, and if such prior notice is not possible, to give such notice immediately following the making of such disclosure or filing.

	
2.14

	
Restrictions on Securities and Escrowed Securities

The Parties acknowledge and agree that:

	
(a)

	
the securities of Amalco and Jet to be issued pursuant to the Amalgamation will be subject to compliance with Securities Laws and the policies of the TSXV; and

	
(b)

	
certain of the securities of Jet  to be issued pursuant to the Amalgamation will be deposited into escrow in accordance with the policies of the TSXV. The Parties further acknowledge that any securities of Jet deposited into escrow shall be held in escrow pursuant to an escrow agreement and released as determined in accordance with the policies of the TSXV.

	
2.15

	
Withholding Taxes

Jet, Jetlines and the Depositary shall be entitled to deduct or withhold from the consideration payable or otherwise deliverable to any Person, including dissenting shareholders, pursuant to the Amalgamation and from all dividends, other distributions or other amount otherwise payable to any former Jetlines Shareholders , such Taxes or other amounts as Jet, Jetlines or the Depositary is required, entitled or permitted to deduct or withhold with respect to such payment under the Tax Act, or any other provisions of any applicable Laws, in each case, as amended.  To the extent that Taxes or other amounts are so deducted or withheld, such deducted or withheld Taxes or other amounts shall be treated for all purposes under this Agreement as having been paid to the Person in respect of which such deduction or withholding was made, provided that such deducted or withheld Taxes or other amounts are actually remitted to the appropriate taxing authority.

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ARTICLE 3

 REPRESENTATIONS AND WARRANTIES OF JETLINES

	
3.1

	
Representations and Warranties

Jetlines hereby represents and warrants to Jet as follows, and acknowledges that Jet is relying upon such representations and warranties in connection with the entering into of this Agreement:

	
(a)

	
Organization and Qualification. Jetlines is duly incorporated and validly existing under the CBCA and has full corporate power and authority to own its assets and conduct its business as now owned and conducted. Jetlines is duly qualified to carry on business and is in good standing in each jurisdiction in which the character of its properties or the nature of its activities makes such qualification necessary.  True and complete copies of the constating documents of Jetlines have been delivered or made available to Jet, and Jetlines has not taken any action to amend or supersede such documents.

	
(b)

	
Authority Relative to this Agreement. Jetlines has the requisite corporate power and authority to enter into this Agreement and to perform its obligations hereunder. The execution and delivery of this Agreement by Jetlines and the consummation by Jetlines of the transactions contemplated by this Agreement have been duly authorized by the Jetlines Board and no other corporate proceedings on the part of Jetlines are necessary to authorize this Agreement other than Jetlines Shareholder Approval. This Agreement has been duly executed and delivered by Jetlines and constitutes a valid and binding obligation of Jetlines, enforceable by Jet against Jetlines in accordance with its terms, except as the enforcement thereof may be limited by bankruptcy, insolvency and other applicable Laws affecting the enforcement of creditors' rights generally and subject to the qualification that equitable remedies may be granted only in the discretion of a court of competent jurisdiction.

	
(c)

	
No Conflict; Required Filings and Consent. The execution and delivery by Jetlines of this Agreement and the performance by it of its obligations hereunder and the completion of the Amalgamation will not violate, conflict with or result in a breach of any provision of the constating documents of Jetlines, and, except as would not, individually or in the aggregate, have or reasonably be expected to have a Jetlines Material Adverse Effect, will not: (a) violate, conflict with or result in a breach of: (i) any agreement, contract, indenture, deed of trust, mortgage, bond, instrument, Authorization, licence or permit to which Jetlines is a party or by which Jetlines is bound; or (ii) any Law to which Jetlines is subject or by which Jetlines is bound; (b) give rise to any right of termination, or the acceleration of any indebtedness, under any such agreement, contract, indenture, Authorization, deed of trust, mortgage, bond, instrument, licence or permit; or (c) give rise to any rights of first refusal or rights of first offer, trigger any change in control or influence provisions or any restriction or limitation under any such agreement, contract, indenture, Authorization, deed of trust, mortgage, bond,

29

 

instrument, licence or permit, or result in the imposition of any encumbrance, charge or Lien upon any of Jetlines' assets. Other than the filing of the Articles of Amalgamation, no Authorization, consent or approval of, or filing with, any Governmental Entity or any court or other authority is necessary on the part of Jetlines for the consummation by Jetlines of its obligations in connection with the Amalgamation under this Agreement or for the completion of the Amalgamation not to cause or result in any loss of any rights or assets or any interest therein held by Jetlines in any material assets, except for such Authorizations, consents, approvals and filings as to which the failure to obtain or make would not, individually or in the aggregate, prevent or materially delay consummation of the Amalgamation.

	
(d)

	
Subsidiaries. Jetlines does not have Subsidiaries or any material interests in any Person.

	
(e)

	
Compliance with Laws.

	
(i)

	
The operations of Jetlines have been and are now conducted in material compliance with all Laws of each jurisdiction, the Laws of which have been and are now applicable to the operations of Jetlines and has not received any notice of any alleged violation of any such Laws, other than non-compliance or violations which, individually or in the aggregate, would not have a Jetlines Material Adverse Effect.

	
(ii)

	
Jetlines is not in conflict with, or in default (including cross defaults) under or in violation of: (a) its articles or by-laws or equivalent organizational documents; or (b) any agreement or understanding to which it or by which any of its properties or assets is bound or affected, except for failures which, individually or in the aggregate, would not have a Jetlines Material Adverse Effect.

	
(f)

	
Jetlines Authorizations. Jetlines has obtained all Authorizations necessary for the ownership, operation, development, maintenance, or use of the material assets of Jetlines or otherwise in connection with the material business or operations of Jetlines and such Authorizations are in full force and effect.  Jetlines has fully complied with and are in compliance with all Authorizations, except, in each case, for such non-compliance which, individually or in the aggregate, would not have a Jetlines Material Adverse Effect.  There is no action, investigation or proceeding pending or, to the knowledge of Jetlines, threatened regarding any of the Authorizations.  Jetlines has not received any notice, whether written or oral, of revocation or non-renewal of any such Authorizations, or of any intention of any Person to revoke or refuse to renew any of such Authorizations, except in each case, for revocations or non-renewals which, individually or in the aggregate, would not have a Jetlines Material Adverse Effect and, to the knowledge of Jetlines, all such Authorizations continue to be effective in order for Jetlines to continue to conduct their respective businesses as they are currently being

30

 

conducted.  No Person other than Jetlines owns or has any proprietary, financial or other interest (direct or indirect) in any of the Authorizations.

	
(g)

	
Capitalization and Listing.

	
(i)

	
The authorized share capital of Jetlines consists of an unlimited number of Jetlines Common Voting Shares and an unlimited number of Jetlines Variable Voting Shares. As at the date of this Agreement there are: (A) 9,201,709 Jetlines Common Voting Shares and 142,500 Jetlines Variable Voting Shares validly issued and outstanding as fully-paid and non-assessable shares of Jetlines; (B) outstanding Jetlines Options providing for the issuance of 750,000 Jetlines Shares upon the exercise thereof; (c) outstanding Jetlines Warrants providing for the issuance of 3,110,733 Jetlines Shares upon exercise thereof. Except for the securities referred to in this Section 3.1(g)(i), there are no options, warrants, conversion privileges, calls or other rights, shareholder rights plans, agreements, arrangements, commitments, or obligations of Jetlines to issue or sell any shares of Jetlines or securities or obligations of any kind convertible into, exchangeable for or otherwise carrying the right or obligation to acquire any shares of Jetlines and no Person is entitled to any pre-emptive or other similar right granted by Jetlines.

	
(ii)

	
All Jetlines Shares that may be issued pursuant to the exercise of outstanding Jetlines Options and Jetlines Warrants will, when issued in accordance with its Jetlines Options and Jetlines Warrants, as the case may be, be duly authorized, validly issued, fully-paid and non-assessable and are not and will not be subject to or issued in violation of, any pre-emptive rights.

	
(iii)

	
There are no outstanding contractual obligations of Jetlines to repurchase, redeem or otherwise acquire any Jetlines Shares.

	
(iv)

	
No order ceasing or suspending trading in securities of Jetlines or prohibiting the sale of such securities has been issued and is outstanding against Jetlines or its directors, officers or promoters.

	
(h)

	
Shareholder and Similar Agreements. Jetlines is not party to any shareholder, pooling, voting trust or other similar agreement relating to the issued and outstanding shares in the capital of Jetlines.

	
(i)

	
U.S. Securities Law Matters.

	
(i)

	
Jetlines is a "foreign private issuer" as defined in Rule 3b-4 under the Exchange Act.

	
(ii)

	
There is no class of securities of Jetlines which is registered pursuant to section 12 of the U.S. Exchange Act, nor is Jetlines subject to any reporting obligation (whether active or suspended) pursuant to section

31

 

15(d) of the U.S. Exchange Act.  Jetlines is not, and has never been, subject to any requirement to register any class of its equity securities pursuant to section 12(g) of the U.S. Exchange Act.

	
(iii)

	
Jetlines is not an investment company registered or required to be registered under the U.S. Investment Company Act of 1940, as amended.

	
(iv)

	
The Jetlines Shares have not been traded on any national securities exchange in the United States during the past 12 calendar months, and will not be so traded prior to the Effective Date.

	
(j)

	
Financial Statements.

	
(i)

	
The audited consolidated financial statements for Jetlines as at and for each of the fiscal years ended on December 31, 2015 and December 31, 2014 including the notes thereto have been prepared in accordance with IFRS applied on a basis consistent with prior periods and all applicable Laws and present fairly, in all material respects, the assets, liabilities (whether accrued, absolute, contingent or otherwise), consolidated financial position and results of operations of Jetlines as of the respective dates thereof and its results of operations and cash flows for the respective periods covered thereby (except as may be indicated expressly in the notes thereto). There are no outstanding loans made by Jetlines to any executive officer or director of Jetlines.

	
(ii)

	
Jetlines maintains internal control over financial reporting.  Such internal control over financial reporting is effective in providing reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with IFRS and includes policies and procedures that: (A) pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of the assets of Jetlines; (B) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with IFRS, and that receipts and expenditures of are being made only with Authorizations of management and directors of Jetlines; and (C) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the assets of Jetlines that could have a material effect on its financial statements.  To the knowledge of Jetlines, as of the date of this Agreement: (x) there are no material weaknesses in the design and implementation or maintenance of internal controls over financial reporting of Jetlines that are reasonably likely to adversely affect the ability of Jetlines to record, process, summarize and report financial information; and (y) there is no fraud, whether or not material, that involves management or other employees who have a significant role in the internal control over financial reporting of Jetlines.

32

 

	
(iii)

	
Neither Jetlines nor, to Jetlines's knowledge, any director, officer, employee, auditor, accountant or representative of Jetlines has received or otherwise had or obtained knowledge of any complaint, allegation, assertion, or claim, whether written or oral, regarding the accounting or auditing practices, procedures, methodologies or methods of Jetlines or its internal accounting controls, including any complaint, allegation, assertion, or claim that Jetlines has engaged in questionable accounting or auditing practices, which has not been resolved to the satisfaction of the audit committee of the Jetlines Board, or has not been disclosed to Jet.

	
(k)

	
Undisclosed Liabilities. Jetlines does not have any liabilities or obligations of any nature, whether or not accrued, contingent or otherwise, except for: (a) liabilities and obligations that are specifically presented on the audited balance sheet of Jetlines as of December 31, 2015 (the "Jetlines Balance Sheet") or disclosed in the notes thereto; or (b) liabilities and obligations incurred in the ordinary course of business consistent with past practice that are not and would not, individually or in the aggregate with all other liabilities and obligations of Jetlines (other than those disclosed on the Jetlines Balance Sheet and/or in the notes to the Jetlines financial statements), reasonably be expected to have a Jetlines Material Adverse Effect, or have a Jetlines Material Adverse Effect, or, as a consequence of the consummation of the Amalgamation, have or reasonably be expected to have a Jetlines Material Adverse Effect.  Without limiting the foregoing, the Jetlines Balance Sheet reflects reasonable reserves in accordance with IFRS for contingent liabilities of Jetlines.

	
(l)

	
Operational Matters. Except as would not, individually or in the aggregate, be reasonably expected to result in a Jetlines Material Adverse Effect:

	
(i)

	
all payments and obligations due and payable, or performable, as the case may be, on or prior to the date hereof under, with respect to, or on account of, any direct or indirect assets of Jetlines have been: (A) duly paid; (B) duly performed; or (C) provided for prior to the date hereof; and

	
(ii)

	
all costs, expenses, and liabilities payable on or prior to the date hereof under the terms of any contracts and agreements to which Jetlines is directly or indirectly bound have been properly and timely paid, except for such expenses that are being currently paid prior to delinquency in the ordinary course of business.

	
(m)

	
Employment Matters.

	
(i)

	
Jetlines has not entered into any written or oral agreement or understanding providing for severance or termination payments to any director, officer or employee in connection with the termination of their position or their employment as a direct result of the transactions contemplated by this Agreement.

33

 

	
(ii)

	
Jetlines is not: (i) a party to any collective bargaining agreement, or (ii) subject to any application for certification or, to the knowledge of Jetlines, threatened or apparent union-organizing campaigns for employees not covered under a collective bargaining agreement.  To the knowledge of Jetlines, no fact or event exists that is likely to give rise to a change in the representation in this Subsection 3.1(m) on or before the Effective Date.

	
(iii)

	
Jetlines is not subject to any claim for wrongful dismissal, constructive dismissal or any other tort claim, actual or, to the knowledge of Jetlines, threatened, or any litigation actual, or to the knowledge of Jetlines, threatened, relating to employment or termination of employment of employees or independent contractors, except for such claims or litigation which individually or in the aggregate would not be reasonably expected to have a Jetlines Material Adverse Effect. To the knowledge of Jetlines, no labour strike, lock-out, slowdown or work stoppage is pending or threatened against or directly affecting Jetlines, except as would not be reasonably expected to have a Jetlines Material Adverse Effect.

	
(iv)

	
Jetlines has operated in accordance with all applicable Laws with respect to employment and labour, including employment and labour standards, occupational health and safety, employment equity, pay equity, workers' compensation, human rights, labour relations and privacy and there are no current, pending, or to the knowledge of Jetlines, threatened proceedings before any board or tribunal with respect to any of the areas listed herein, except where the failure to so operate would not have a Jetlines Material Adverse Effect.

	
(n)

	
Absence of Certain Changes or Events. Since December 31, 2015:

	
(i)

	
Jetlines has conducted its businesses only in the ordinary course of business and consistent with past practice;

	
(ii)

	
no liability or obligation of any nature (whether absolute, accrued, contingent or otherwise) which has had or is reasonably likely to have a Jetlines Material Adverse Effect has been incurred;

	
(iii)

	
there has not been any event, circumstance or occurrence which has had or is reasonably likely to give rise to a Jetlines Material Adverse Effect;

	
(iv)

	
there has not been any change in the accounting practices used by Jetlines, except as disclosed in the audited financial statements of Jetlines;

	
(v)

	
except for ordinary course adjustments to non-executive employees, there has not been any increase in the salary, bonus, or other remuneration payable to any non-executive employees of any of Jetlines;

34

 

	
(vi)

	
there has not been any entering into, or an amendment of, any material Contract other than in the ordinary course of business consistent with past practice;

	
(vii)

	
there has not been any satisfaction or settlement of any material claims or material liabilities that were not reflected in Jetlines's audited financial statements, other than the settlement of claims or liabilities incurred in the ordinary course of business consistent with past practice; and

	
(viii)

	
except for ordinary course adjustments, there has not been any increase in the salary, bonus, or other remuneration payable to any officers or senior or executive officers of Jetlines.

	
(o)

	
Litigation. Other than as disclosed to Jet in writing, there is no claim, action, proceeding or investigation pending or, to the knowledge of Jetlines, threatened against or relating to Jetlines, the business of Jetlines or affecting any of their properties, assets, before or by any Governmental Entity which, if adversely determined, would have, or reasonably could be expected to have, a Jetlines Material Adverse Effect or prevent or materially delay the consummation of the Amalgamation, nor to knowledge of Jetlines are there any events or circumstances which could reasonably be expected to give rise to any such claim, action, proceeding or investigation (provided that the representation in this Subsection 3.1(o) shall not apply to claims, actions, proceedings, or investigations which may arise after the date of this Agreement which do not have a reasonable prospect of succeeding or, if successful, would not give rise to, nor reasonably be expected to give rise to, a Jetlines Material Adverse Effect). Jetlines is not subject to any outstanding order, writ, injunction or decree which has had or is reasonably likely to have a Jetlines Material Adverse Effect or which would prevent or materially delay consummation of the transactions contemplated by this Agreement.

	
(p)

	
Taxes.

	
(i)

	
Jetlines has duly and in a timely manner made or prepared all Tax Returns required to be made or prepared by it in accordance with applicable Law, and duly and in a timely manner filed all material Tax Returns required to be filed by it with the appropriate Governmental Entity, such Tax Returns were complete and correct in all material respects and Jetlines have paid all material Taxes, including instalments on account of Taxes for the current year required by applicable Law, which are due and payable by it whether or not assessed by the appropriate Governmental Entity, other than Taxes which are being contested in good faith through appropriate proceedings.

	
(ii)

	
Jetlines has made adequate provisions or reserves in accordance with IFRS in the most recently published financial statements of Jetlines for any Taxes of Jetlines for the period covered by such financial statements that

35

 

have not been paid whether or not shown as being due on any material Tax Returns. Since such publication date, no material liability in respect of Taxes not reflected in such statements or otherwise provided for has been assessed, proposed to be assessed, incurred or accrued, other than in the ordinary course of business.

	
(iii)

	
Jetlines has duly and timely withheld all material Taxes and other amounts required by applicable Law to be withheld by it (including Taxes and other amounts required to be withheld by it in respect of any amount paid or credited or deemed to be paid or credited by it to or for the benefit of any Person) and has duly and timely remitted to the appropriate Governmental Entity such Taxes or other amounts required by applicable Law to be remitted by it.

	
(iv)

	
Jetlines has duly and timely collected all material amounts on account of any sales, use or transfer Taxes, including goods and services, harmonized sales, provincial and territorial taxes and state and local taxes, required by applicable Law to be collected by it and has duly and timely remitted to the appropriate Governmental Entity such amounts required by applicable Law to be remitted by it and has duly and timely paid any and all material sales, use or transfer Taxes required to be paid or self-assessed by it pursuant to applicable Laws and has claimed eligible exemptions, refunds and input Tax credits in respect thereof in all material respects in accordance with applicable Laws.

	
(v)

	
Jetlines has not made, prepared and/or filed any elections, designations or similar filings relating to Taxes or entered into any agreement or other arrangement in respect of Taxes or Tax Returns that has effect for any period ending after the Effective Date.

	
(vi)

	
there are no proceedings, investigations, audits or Claims now pending or, to the knowledge of Jetlines, threatened against Jetlines in respect of any Taxes and there are no matters under discussion, audit or appeal with any Governmental Entity relating to Taxes.

	
(vii)

	
Jetlines has not acquired property from a non-arm's length Person, within the meaning of the Tax Act: (i) for consideration the value of which is less than the fair market value of the property; or (ii) as a contribution of capital for which no shares were issued by the acquirer of the property.

	
(viii)

	
Jetlines has made available to Jet copies of all Tax Returns for the taxation years ended December 31, 2015 and December 31, 2014, and all assessments or reassessments, correspondence related to any assessment or reassessment, requests for Tax rulings, Tax rulings issued by any Governmental Entity, and correspondence related to any audit or proposed audit of Jetlines, to the extent relating to periods or events in respect of

36

 

which any Governmental Entity may in accordance with applicable Law assess or otherwise impose any Taxes on Jetlines.

	
(ix)

	
For the purposes of the Tax Act and any other relevant Tax purposes Jetlines is resident in Canada.

	
(x)

	
No claim has been made by any Government Entity in a jurisdiction where Jetlines does not file Tax Returns that Jetlines is or maybe subject to tax in that jurisdiction.

	
(xi)

	
There are no Liens for Taxes upon any properties or assets of Jetlines (other than Liens relating to Taxes not yet due and payable or for Taxes which are being contested in good faith through appropriate proceedings and for which adequate provisions or reserves have been recorded on the most recent balance sheet included in Jetlines's audited financial statements).

	
(q)

	
Books and Records. The corporate records and minute books of Jetlines have been maintained in accordance with all applicable Laws, and the minute books of Jetlines as provided to Jet are complete and accurate in all material respects.  The corporate minute books for Jetlines contain minutes of all meetings and resolutions of the directors and securityholders held.  The financial books and records and accounts of Jetlines in all material respects: (a) have been maintained in accordance with good business practices and in accordance with IFRS and with the accounting principles generally accepted in the country of domicile of each such entity, on a basis consistent with prior years;  and (b) are stated in reasonable detail, during the period of time when owned by Jetlines, accurately and fairly reflect the transactions and dispositions of assets of Jetlines.

	
(r)

	
Insurance.

	
(i)

	
Jetlines has in place reasonable and prudent insurance policies appropriate for its size, nature and stage of development. All premiums payable prior to the date hereof under such policies of insurance have been paid and Jetlines has not failed to make a claim thereunder on a timely basis.

	
(ii)

	
Each of such policies and other forms of insurance is in full force and effect on the date hereof and Jetlines will use reasonable commercial efforts to keep them in full force and effect or renew them as appropriate through the Effective Date. No written (or to the knowledge of Jetlines other) notice of cancellation or termination has been received by Jetlines with respect to any such policy.

	
(s)

	
Non-Arm's Length Transactions. Except for agreements for Jetlines Options, employment, consulting or employment compensation agreements entered into in the ordinary course of business, there are no current contracts, commitments, agreements, arrangements or other transactions (including relating to indebtedness by Jetlines) between Jetlines on the one hand, and any (a) officer or director of

37

 

Jetlines, (b) any holder of record or, to the knowledge of Jetlines, beneficial owner of five percent or more of the voting securities of Jetlines, or (c) any affiliate or associate of any officer, director or beneficial owner, on the other hand.

	
(t)

	
Restrictions on Business Activities. There is no agreement, judgement, injunction, order or decree binding upon Jetlines that has or could reasonably be expected to have the effect of prohibiting, restricting or materially impairing any business practice of Jetlines, any acquisition of property by Jetlines or the conduct of business by Jetlines as currently conducted (including following the transaction contemplated by this Agreement) other than such agreements, judgements, injunctions, orders or decrees which would not, individually or in the aggregate, reasonably be expected to have a Jetlines Material Adverse Effect.

	
(u)

	
Material Contracts. Jetlines has performed in all material respects all respective obligations required to be performed by them to date under any material Contracts.  Jetlines is not in breach or default under any material contract to which it is a party or bound, nor does Jetlines have knowledge of any condition that with the passage of time or the giving of notice or both would result in such a breach or default, except in each case where any such breaches or defaults would not, individually or in the aggregate, reasonably be expected to result in, or result in, a Jetlines Material Adverse Effect. Jetlines does not know of, or has not received written notice of, any breach or default under (nor, to the knowledge of Jetlines, does there exist any condition which with the passage of time or the giving of notice or both would result in such a breach or default under) any such material contract by any other party thereto except where any such violation or default would not, individually or in the aggregate, reasonably be expected to result in, or result in, a Jetlines Material Adverse Effect.  Prior to the date hereof, Jetlines has made available to Jet true and complete copies of all of the material contracts of Jetlines. All material contracts are legal, valid, binding and in full force and effect and are enforceable by Jetlines in accordance with their respective terms (subject to bankruptcy, insolvency and other applicable Laws affecting creditors' rights generally, and to general principles of equity) and are the product of fair and arms' length negotiations between the parties thereto.

	
(v)

	
Brokers. Except for the fees to be paid to Euro Pacific Canada, none of Jetlines, or any of its respective officers, directors or employees has employed any broker or finder or incurred any liability for any brokerage fees, commissions or finder's fees in connection with the transactions contemplated by this Agreement.

	
(w)

	
Reporting Issuer Status. As of the date hereof, Jetlines is not a reporting issuer in any province or territory of Canada.

	
(x)

	
Money Laundering Laws. The operations of Jetlines are and have been conducted at all times in compliance with applicable financial record-keeping and reporting requirements of the money laundering statutes of all applicable jurisdictions, the rules and regulations thereunder and any related or similar rules, regulations or

38

 

guidelines, issued, administered or enforced by any Governmental Entity (collectively, the "Money Laundering Laws") and no action, suit or proceeding by or before any court of governmental authority or any arbitrator non-Governmental Entity involving Jetlines with respect to the Money Laundering Laws is pending or, to the knowledge of Jetlines threatened.

	
(y)

	
Corrupt Practices Legislation. Neither Jetlines, nor any of its officers, directors or employees acting on behalf of Jetlines has taken, committed to take or been alleged to have taken any action which would cause Jetlines or any of its affiliates to be in violation of the United States' Foreign Corrupt Practices Act (and the regulations promulgated thereunder), the Corruption of Foreign Public Officials Act (Canada) (and the regulations promulgated thereunder) or any applicable Law, and to the knowledge of Jetlines no such action has been taken by any of its agents, representatives or other Persons acting on behalf of Jetlines or any  of its affiliates.

	
3.2

	
Survival of Representations and Warranties

The representations and warranties of Jetlines contained in this Agreement shall not survive the completion of the Amalgamation and shall expire and be terminated on the earlier of the Effective Time and the date on which this Agreement is terminated in accordance with its terms.

ARTICLE 4

 REPRESENTATIONS AND WARRANTIES OF JET

	
4.1

	
Representations and Warranties

Jet hereby represents and warrants to Jetlines as follows, and acknowledges that Jetlines is relying upon such representations and warranties in connection with the entering into of this Agreement:

	
(a)

	
Organization and Qualification. Jet and each of its Subsidiaries are duly incorporated and validly existing under their respective laws of incorporation and each has full corporate power and authority to own its assets and conduct its business as now owned and conducted.  Each of Jet and its Subsidiaries is duly qualified to carry on business and is in good standing in each jurisdiction in which the character of its properties or the nature of its activities makes such qualification necessary. True and complete copies of the constating documents of Jet and each of its Subsidiaries have been delivered or made available to Jetlines, and Jet has not taken any action to amend or supersede such documents.

	
(b)

	
Authority Relative to this Agreement. Jet has the requisite corporate power and authority to enter into this Agreement and to perform its obligations hereunder. The execution and delivery of this Agreement by Jet and the consummation by Jet of the transactions contemplated by this Agreement have been duly authorized by the board of directors of Jet and no other corporate proceedings on the part of Jet are necessary to authorize this Agreement, other than Jet Shareholder Approval.

39

 

This Agreement has been duly executed and delivered by Jet and constitutes a valid and binding obligation of Jet, enforceable by Jetlines against Jet in accordance with its terms, except as the enforcement thereof may be limited by bankruptcy, insolvency and other applicable Laws affecting the enforcement of creditors' rights generally and subject to the qualification that equitable remedies may be granted only in the discretion of a court of competent jurisdiction.

	
(c)

	
No Conflict; Required Filings and Consent. The execution and delivery by Jet of this Agreement and the performance by it of its obligations hereunder and the completion of the Continuance, the Consolidation and the Change of Business will not violate, conflict with or result in a breach of any provision of the constating documents of Jet, and except as would not, individually or in the aggregate, have or reasonably be expected to have a Jet Material Adverse Effect, will not: (a) violate, conflict with or result in a breach of: (i) any agreement, contract, indenture, deed of trust, mortgage, bond, instrument, Authorization, licence or permit to which Jet or by which is bound; or (ii) any Law to which Jet or any is subject or by which Jet is bound; (b) give rise to any right of termination, or the acceleration of any indebtedness, under any such agreement, contract, indenture, Authorization, deed of trust, mortgage, bond, instrument, licence or permit; or (c) give rise to any rights of first refusal or rights of first offer, trigger any change in control or influence provisions or any restriction or limitation under any such agreement, contract, indenture, Authorization, deed of trust, mortgage, bond, instrument, licence or permit, or result in the imposition of any encumbrance, charge or Lien upon any of Jet's assets. Other than Jet Shareholder Approval and conditional approval of the TSXV in respect of the Change of Business, no Authorization, consent or approval of, or filing with, any Governmental Entity or any court or other authority is necessary on the part of Jet for the consummation by Jet of its obligations in connection with the Amalgamation under this Agreement or for the completion of the Amalgamation not to cause or result in any loss of any rights or assets or any interest therein held by Jet in any material properties, except for such Authorizations, consents, approvals and filings as to which the failure to obtain or make would not, individually or in the aggregate, prevent or materially delay consummation of the transactions contemplated by this Agreement.

	
(d)

	
Subsidiaries. Schedule G sets out all of the Subsidiaries of Jet. Other than the Subsidiaries, Jet does not beneficially hold any securities or other interests, or securities convertible or exchangeable into securities or other interests, of any other person.  All of the issued and outstanding securities of each of the Subsidiaries are duly authorized, validly issued, fully paid and non-assessable and all such securities are owned, directly or indirectly by Jet, free and clear of all liens and are not subject to any proxy, voting trust or other agreement relating to the voting of such securities, and there are no outstanding options, rights, entitlements, understandings or commitments regarding the right to acquire any such securities or assets of the Subsidiaries. Schedule G accurately sets out the following information with respect to each Subsidiary: (i) its name; (ii) the number, type and principal amount, as applicable, of its outstanding equity

40

 

securities or other equity interests and a list of registered holders of capital stock or other equity interests; and (iii) its jurisdiction of incorporation, organization or formation.

	
(e)

	
Compliance with Laws.

	
(i)

	
The operations of Jet and each of its Subsidiaires has been and are now conducted in compliance with all Laws of each jurisdiction, the Laws of which have been and are now applicable to the operations of Jet and its Subsidiares and Jet has not received any notice of any alleged violation of any such Laws, other than non-compliance or violations which, individually or in the aggregate, would not have a Jet Material Adverse Effect.

	
(ii)

	
Each of Jet and its Subsidiaries are not in conflict with, or in default (including cross defaults) under or in violation of: (a) its notice of articles, articles or equivalent organizational documents; or (b) any agreement or understanding to which it or by which any of its properties or assets is bound or affected, except for failures which, individually or in the aggregate, would not have a Jet Material Adverse Effect.

	
(f)

	
Jet Authorizations. Jet has obtained all Authorizations necessary for the ownership, operation, development, maintenance, or use of the material assets of Jet and its Subsidiaries or otherwise in connection with the material business or operations of Jet and such Authorizations are in full force and effect.  Jet and its Subsidiaries have fully complied with and is in compliance with all Authorizations, except, in each case, for such non-compliance which, individually or in the aggregate, would not have a Jet Material Adverse Effect.  There is no action, investigation or proceeding pending or, to the knowledge of Jet, threatened regarding any of the Authorizations.  Jet has not received any notice, whether written or oral, of revocation or non-renewal of any such Authorizations, or of any intention of any Person to revoke or refuse to renew any of such Authorizations, except in each case, for revocations or non-renewals which, individually or in the aggregate, would not have a Jet Material Adverse Effect and, to the knowledge of Jet, all such Authorizations continue to be effective in order for Jet to continue to conduct their respective businesses as they are currently being conducted.  No Person other than Jet or a Subsidiary thereof owns or has any proprietary, financial or other interest (direct or indirect) in any of the Authorizations.

	
(g)

	
Capitalization and Listing.

	
(i)

	
The authorized share capital of Jet consists of an unlimited number of Jet Shares. As at the date of this Agreement there are: (A) 28,218,451 Jet Shares validly issued and outstanding as fully-paid and non-assessable shares of Jet; and (B) nil outstanding options providing for the issuance of nil Jet Shares upon the exercise thereof; and (C) 20,000,000 outstanding

41

 

warrants providing for the issuance of 20,000,000 Jet Shares upon the exercise thereof.  Except for the securities referred to in this Section 4.1(g)(i) and as set out in Schedule G, there are no options, warrants, conversion privileges, calls or other rights, shareholder rights plans, agreements, arrangements, commitments, or obligations of Jet to issue or sell any shares of Jet or securities or obligations of any kind convertible into, exchangeable for or otherwise carrying the right or obligation to acquire any shares of Jet and no Person is entitled to any pre-emptive or other similar right granted by Jet. Jet Shares are listed on the TSXV and the OTCQB, and are not listed or quoted on any market other than the TSXV and OTCQB. The Jet Warrants are listed on the TSXV and are not listed or quoted on any market other than the TSXV.

	
(ii)

	
All Jet Shares that may be issued pursuant to the exercise of outstanding Jet Options and Jet Warrants will, when issued in accordance with the terms of such securities, as the case may be, be duly authorized, validly issued, fully-paid and non-assessable and are not and will not be subject to or issued in violation of, any pre-emptive rights.

	
(iii)

	
There are no outstanding contractual obligations of Jet to repurchase, redeem or otherwise acquire any Jet Shares.

	
(iv)

	
No order ceasing or suspending trading in securities of Jet or prohibiting the sale of such securities has been issued and is outstanding against Jet or, its directors, officers or promoters.

	
(h)

	
Shareholder and Similar Agreements. Jet is not party to any shareholder, pooling, voting trust or other similar agreement relating to the issued and outstanding shares in the capital of Jet.

	
(i)

	
U.S. Securities Law Matters.

	
(i)

	
Jet is a "foreign private issuer" as defined in Rule 3b-4 under the U.S. Exchange Act.

	
(ii)

	
The Jet Shares are registered pursuant to section 12 of the U.S. Exchange Act and is Jet subject to reporting obligations pursuant to section 15(d) of the U.S. Exchange Act.

	
(iii)

	
Jet is not an investment company registered or required to be registered under the U.S. Investment Company Act of 1940, as amended.

	
(iv)

	
The Jet Shares have not been traded on any national securities exchange in the United States during the past 12 calendar months, and will not be so traded prior to the Effective Date.

	
(j)

	
Reports. Jet has filed with all applicable Governmental Entities true and complete copies of Jet Public Documents that Jet is required to file therewith. Jet Public

42

- -

Documents at the time filed: (i) did not contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading, and (i) complied in all material respects with the requirements of applicable Securities Laws. Jet has not filed any confidential material change report with any Governmental Entity which at the date hereof remains confidential.

	
(k)

	
Financial Statements.

	
(i)

	
The interim consolidated financial statements for Jet for the period ended January 31, 2016 including the notes thereto have been, and all financial statements of Jet which are publicly disseminated by Jet in respect of any subsequent periods prior to the Effective Date will be, prepared in accordance with IFRS applied on a basis consistent with prior periods and all applicable Laws and present fairly, in all material respects, the assets, liabilities (whether accrued, absolute, contingent or otherwise), consolidated financial position of Jet as of the respective dates thereof and its results of operations and cash flows for the respective periods covered thereby (except as may be indicated expressly in the notes thereto).  There are no outstanding loans made by Jet to any executive officer or director of Jet.

	
(ii)

	
The management of Jet has established and maintained a system of disclosure controls and procedures designed to provide reasonable assurance that information required to be disclosed by Jet in its annual filings, interim filings or other reports filed or submitted by it under the applicable Laws imposed by Governmental Entities is recorded, processed, summarized and reported within the time periods specified in such Laws imposed by such Governmental Entities. Such disclosure controls and procedures include controls and procedures designed to ensure that information required to be disclosed by Jet in its annual filings, interim filings or other reports filed or submitted under the applicable Laws imposed by Governmental Entities is accumulated and communicated to Jet's management, including its chief executive officer and chief financial officer (or Persons performing similar functions), as appropriate to allow timely decisions regarding required disclosure.

	
(iii)

	
Jet maintains internal control over financial reporting.  Such internal control over financial reporting is effective in providing reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with IFRS and includes policies and procedures that: (A) pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of the assets of; (B) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with IFRS, and that

43

 

receipts and expenditures of Jet are being made only with Authorizations of management and directors of Jet, as applicable; and (C) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the assets of Jet that could have a material effect on its financial statements.  To the knowledge of Jet, as of the date of this Agreement: (x) there are no material weaknesses in the design and implementation or maintenance of internal controls over financial reporting of Jet that are reasonably likely to adversely affect the ability of Jet to record, process, summarize and report financial information; and (y) there is no fraud, whether or not material, that involves management or other employees who have a significant role in the internal control over financial reporting of Jet.

	
(iv)

	
Neither Jet nor, to Jet's knowledge, any director, officer, employee, auditor, accountant or representative of Jet has received or otherwise had or obtained knowledge of any complaint, allegation, assertion, or claim, whether written or oral, regarding the accounting or auditing practices, procedures, methodologies or methods of Jet or their respective internal accounting controls, including any complaint, allegation, assertion, or claim that Jet has engaged in questionable accounting or auditing practices, which has not been resolved to the satisfaction of the audit committee of the Board, or has not been disclosed to Jetlines.

	
(l)

	
Undisclosed Liabilities. Jet does not have any liabilities or obligations of any nature, whether or not accrued, contingent or otherwise, except for: (a) liabilities and obligations that are specifically presented on the unaudited balance sheet of Jet as of January 31, 2016 (the "Jet Balance Sheet") or disclosed in the notes thereto; or (b) liabilities and obligations incurred in the ordinary course of business consistent with past practice since April 30, 2015, that are not and would not, individually or in the aggregate with all other liabilities and obligations of Jet (other than those disclosed on the Jet Balance Sheet and/or the notes to the Jet financial statements), reasonably be expected to have a Jet Material Adverse Effect, or have a Jet Material Adverse Effect, or, as a consequence of the consummation of the Amalgamation, have a Jet Material Adverse Effect.  Without limiting the foregoing, the Jet Balance Sheet reflects reasonable reserves in accordance with IFRS for contingent liabilities of Jet.

	
(m)

	
Operational Matters. Except as would not, individually or in the aggregate, be reasonably expected to result in a Jet Material Adverse Effect:

	
(i)

	
all rentals, payments and obligations due and payable, or performable, as the case may be, on or prior to the date hereof under, with respect to, or on account of, any direct or indirect assets of Jet and its material joint ventures, have been: (A) duly paid; (B) duly performed; or (C) provided for prior for the date hereof; and

44

 

	
(ii)

	
all costs, expenses, and liabilities payable on or prior to the date hereof under the terms of any contracts and agreements to which Jet is directly or indirectly bound have been properly and timely paid, except for such expenses that are being currently paid prior to delinquency in the ordinary course of business.

	
(n)

	
Employment Matters.

	
(i)

	
Jet is not (A) a party to any collective bargaining agreement, or (B) subject to any application for certification or, to the knowledge of Jet, threatened or apparent union-organizing campaigns for employees not covered under a collective bargaining agreement.  To the knowledge of Jet, no fact or event exists that is likely to give rise to a change in the representation in this Subsection 4.1(n) on or before the Effective Date.

	
(ii)

	
Jet is not subject to any claim for wrongful dismissal, constructive dismissal or any other tort claim, actual or, to the knowledge of Jet, threatened, or any litigation actual, or to the knowledge of Jet, threatened, relating to employment or termination of employment of employees or independent contractors, except for such claims or litigation which individually or in the aggregate would not be reasonably expected to have a Jet Material Adverse Effect. To the knowledge of Jet, no labour strike, lock-out, slowdown or work stoppage is pending or threatened against or directly affecting Jet, except as would not be reasonably be expected to have a Jet Material Adverse Effect.

	
(iii)

	
Jet has operated in accordance with all applicable Laws with respect to employment and labour, including employment and labour standards, occupational health and safety, employment equity, pay equity, workers' compensation, human rights, labour relations and privacy and there are no current, pending, or to the knowledge of Jet, threatened proceedings before any board or tribunal with respect to any of the areas listed herein, except where the failure to so operate would not have a Jet Material Adverse Effect.

	
(iv)

	
Jet has not entered into any written or oral agreement or understanding providing for severance or termination payments to any director, officer or employee in connection with the termination of their position or their employment as a direct result of the transactions contemplated by the Agreement.

	
(o)

	
Absence of Certain Changes or Events. Since January 31, 2016:

	
(i)

	
Jet has conducted its business only in the ordinary course of business and consistent with past practice;

45

 

	
(ii)

	
no liability or obligation of any nature (whether absolute, accrued, contingent or otherwise) which has had or is reasonably likely to have a Jet Material Adverse Effect has been incurred;

	
(iii)

	
there has not been any event, circumstance or occurrence which has had or is reasonably likely to give rise to a Jet Material Adverse Effect;

	
(iv)

	
there has not been any change in the accounting practices used by Jet, except as disclosed in the Jet Public Documents;

	
(v)

	
except for ordinary course adjustments to non-executive employees, there has not been any increase in the salary, bonus, or other remuneration payable to any non-executive employees of Jet.

	
(vi)

	
there has not been any redemption, repurchase or other acquisition of Jet Shares by Jet, or any declaration, setting aside or payment of any dividend or other distribution (whether in cash, shares or property) with respect to the Jet Shares;

	
(vii)

	
there has not been any entering into, or an amendment of, any material Contract other than in the ordinary course of business consistent with past practice;

	
(viii)

	
there has not been any satisfaction or settlement of any material claims or material liabilities that were not reflected in Jet's financial statements, other than the settlement of claims or liabilities incurred in the ordinary course of business consistent with past practice; and

	
(ix)

	
except for ordinary course adjustments, there has not been any increase in the salary, bonus, or other remuneration payable to any officers or senior or executive officers of Jet.

	
(p)

	
Litigation. There is no claim, action, proceeding or investigation pending or, to the knowledge of Jet, threatened against or relating to Jet, the business of Jet or affecting any of its properties, assets, before or by any Governmental Entity which, if adversely determined, would have, or reasonably could be expected to have, a Jet Material Adverse Effect or prevent or materially delay the consummation of the Amalgamation, nor to knowledge of Jet are there any events or circumstances which could reasonably be expected to give rise to any such claim, action, proceeding or investigation (provided that the representation in this Section 4.1(p) shall not apply to claims, actions, proceedings, or investigations which may arise after the date of this Agreement which do not have a reasonable prospect of succeeding or, if successful, would not give rise to, nor reasonably be expected to give rise to, a Jet Material Adverse Effect). Jet is not subject to any outstanding order, writ, injunction or decree which has had or is reasonably likely to have a Jet Material Adverse Effect or which would prevent or materially delay consummation of the transactions contemplated by this Agreement.

46

 

	
(q)

	
Taxes.

	
(i)

	
Jet has duly and in a timely manner made or prepared all Tax Returns required to be made or prepared by it in accordance with applicable Law, and duly and in a timely manner filed all material Tax Returns required to be filed by it with the appropriate Governmental Entity, such Tax Returns were complete and correct in all material respects and Jet has paid all material Taxes, including instalments on account of Taxes for the current year required by applicable Law, which are due and payable by it whether or not assessed by the appropriate Governmental Entity, other than Taxes which are being contested in good faith through appropriate proceedings.

	
(ii)

	
Jet has made adequate provisions or reserves in accordance with IFRS in the most recently published financial statements of Jet for any Taxes of Jet for the period covered by such financial statements that have not been paid whether or not shown as being due on any material Tax Returns. Since such publication date, no material liability in respect of Taxes not reflected in such statements or otherwise provided for has been assessed, proposed to be assessed, incurred or accrued, other than in the ordinary course of business.

	
(iii)

	
Jet has duly and timely withheld all material Taxes and other amounts required by applicable Law to be withheld by it (including Taxes and other amounts required to be withheld by it in respect of any amount paid or credited or deemed to be paid or credited by it to or for the benefit of any Person) and has duly and timely remitted to the appropriate Governmental Entity such Taxes or other amounts required by applicable Law to be remitted by it.

	
(iv)

	
Jet has duly and timely collected all material amounts on account of any sales, use or transfer Taxes, including goods and services, harmonized sales, provincial and territorial taxes and state and local taxes, required by applicable Law to be collected by it and has duly and timely remitted to the appropriate Governmental Entity such amounts required by applicable Law to be remitted by it and has duly and timely paid any and all material sales, use or transfer Taxes required to be paid or self-assessed by it pursuant to applicable Laws and has claimed eligible exemptions, refunds and input Tax credits in respect thereof in all material respects in accordance with applicable Laws.

	
(v)

	
Jet has not made, prepared and/or filed any elections, designations or similar filings relating to Taxes or entered into any agreement or other arrangement in respect of Taxes or Tax Returns that has effect for any period ending after the Effective Date.

	
(vi)

	
There are no proceedings, investigations, audits or Claims now pending or, to the knowledge of Jet, threatened against Jet in respect of any Taxes

47

 

and there are no matters under discussion, audit or appeal with any Governmental Entity relating to Taxes.

	
(vii)

	
Jet has not acquired property from a non-arm's length Person, within the meaning of the Tax Act: (i) for consideration the value of which is less than the fair market value of the property; or (ii) as a contribution of capital for which no shares were issued by the acquirer of the property.

	
(viii)

	
Jet has made available to Jetlines copies of all Tax Returns for the taxation years ended April 30, 2015 and April 30, 2014, and all assessments or reassessments, correspondence related to any assessment or reassessment, requests for Tax rulings, Tax rulings issued by any Governmental Entity, and correspondence related to any audit or proposed audit of Jet, to the extent relating to periods or events in respect of which any Governmental Entity may in accordance with applicable Law assess or otherwise impose any Taxes on Jet.

	
(ix)

	
For the purposes of the Tax Act and any other relevant Tax purposes Jet is resident in Canada.

	
(x)

	
No claim has been made by any Government Entity in a jurisdiction where Jet does not file Tax Returns that Jet is or maybe subject to tax in that jurisdiction.

	
(xi)

	
There are no Liens for Taxes upon any properties or assets of Jet (other than Liens relating to Taxes not yet due and payable or for Taxes which are being contested in good faith through appropriate proceedings and for which adequate provisions or reserves have been recorded on the most recent balance sheet included in Jet's audited financial statements).

	
(r)

	
Books and Records. The corporate records and minute books of Jet have been maintained in accordance with all applicable Laws, and the minute books of Jet as provided to Jetlines are complete and accurate in all material respects.  The corporate minute books for Jet contain minutes of all meetings and resolutions of the directors and securityholders held.  The financial books and records and accounts of Jet in all material respects: (a) have been maintained in accordance with good business practices and in accordance with IFRS and with the accounting principles generally accepted in the country of domicile of each such entity, on a basis consistent with prior years; and (b) are stated in reasonable detail and accurately and fairly reflect the transactions and dispositions of assets of Jet.

	
(s)

	
Insurance.

	
(i)

	
Jet has in place reasonable and prudent insurance policies appropriate for its size, nature and stage of development. All premiums payable prior to the date hereof under such policies of insurance have been paid and Jet has not failed to make a claim thereunder on a timely basis.

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(ii)

	
Each of such policies and other forms of insurance is in full force and effect on the date hereof and Jet will use reasonable commercial efforts to keep them in full force and effect or renew them as appropriate through the Effective Date. No written (or to the knowledge of Jet other) notice of cancellation or termination has been received by Jet with respect to any such policy.

	
(t)

	
Non-Arm's Length Transactions. Other than the King & Bay West Agreement, employment, consulting or employment compensation agreements entered into in the ordinary course of business, there are no material current contracts, commitments, agreements, arrangements or other transactions (including relating to indebtedness by Jet) between Jet on the one hand, and any (i) officer or director of Jet, (ii) any holder of record or, to the knowledge of Jet, beneficial owner of five percent or more of the voting securities of Jet, or (iii) any affiliate or associate of any officer, director or beneficial owner, on the other hand.

	
(u)

	
Benefit Plans. Each Jet Benefit Plan has been operated in accordance with its terms and any contributions required to be made under each Jet Benefit Plan, as of the date hereof, have been timely made.

	
(v)

	
Mineral Rights.  All of Jet's mineral interests and rights with respect to its mineral properties, including any material mining claims, concessions, exploration licences, exploitation licences, prospecting permits, mining leases and mining rights, in each case, either existing under contract, by operation of Law, have been disclosed to Jetlines (the "Jet Mineral Rights"). Other than the Jet Mineral Rights, Jet does not own or have any interest in any material mineral interests. Other than as disclosed to Jetlines in writing or as disclosed in the Jet Public Documents:

	
(i)

	
Jet or one of its Subsidiaries is the legal and beneficial owner of all right, title and interest in and to the Jet Mineral Rights, free and clear of any Liens.

	
(ii)

	
All of the Jet Mineral Rights have been properly located and recorded in compliance with applicable Law and are comprised of valid and subsisting mineral claims or mining leases.

	
(iii)

	
The Jet Mineral Rights are in good standing under applicable Law and, to the knowledge of Jet, all work required to be performed and filed in respect thereof has been performed and filed, all Taxes, rentals, fees, expenditures and other payments in respect thereof have been paid or incurred and all filings in respect thereof have been made.

	
(iv)

	
To the knowledge of Jet, there is no material adverse claim against or challenge to the title to or ownership of the Jet Mineral Rights.

49

 

	
(v)

	
No Person other than Jet or a Subsidiary has any interest in the Jet Mineral Rights or the production or profits therefrom or any royalty in respect thereof or any right to acquire any such interest.

	
(vi)

	
There are no back-in rights, earn-in rights, rights of first refusal or similar provisions or rights which would affect Jet's interest in the Jet Mineral Rights.

	
(vii)

	
There are no material restrictions on the ability of Jet or its Subsidiaries to use, transfer or exploit the Jet Mineral Rights, except pursuant to applicable Law.

	
(viii)

	
Jet or its Subsidiaries have all surface rights, including fee simple estates, leases, easements, rights of way and permits or licences operations from landowners or Governmental Entities permitting the use of land by Jet or its Subsidiaries, and mineral interests that are required to explore the Jet Mineral Rights as contemplated in Jet Public Documents filed (and available on SEDAR) on or before the date hereof and no third party or group holds any such rights that would be required by Jet to explore any of the Jet Mineral Rights as contemplated in Jet Public Documents filed (and available on SEDAR) on or before the date hereof.

	
(ix)

	
Jet has not received any notice, whether written or oral, from any Governmental Entity of any revocation or intention to revoke any interest of Jet in any of the Jet Mineral Rights.

	
(w)

	
Environmental. Except for any matters that, individually or in the aggregate, would not have or would not reasonably be expected to have a Jet Material Adverse Effect:

	
(i)

	
all facilities and operations of Jet and its Subsidiaries have been conducted, and are now, in compliance with all Environmental Laws;

	
(ii)

	
Jet and each of its Subsidiaries is in possession of, and in compliance with, all Environmental Permits that are required to conduct their respective business as they are now being conducted;

	
(iii)

	
no environmental, reclamation or closure obligation, demand, notice, work order or other liabilities presently exist with respect to any portion of any currently or formerly owned, leased, used or otherwise controlled property, interests and rights or relating to the operations and business of Jet and each of its Subsidiaries and, to the knowledge of Jet, there is no basis for any such obligations, demands, notices, work orders or liabilities to arise in the future as a result of any activity in respect of such property, interests, rights, operations and business;

	
(iv)

	
neither Jet nor any of its Subsidiaries is not subject to any proceeding, application, order or directive which relates to environmental, health or

50

 

safety matters, and which may require any material work, repairs, construction or expenditures;

	
(v)

	
to the knowledge of Jet, there are no changes in the status, terms or conditions of any Environmental Permits held by Jet or any Subsidiary or any renewal, modification, revocation, reassurance, alteration, transfer or amendment of any such environmental approvals, consents, waivers, permits, orders and exemptions, or any review by, or approval of, any Governmental Entity of such environmental approvals, consents, waivers, permits, orders and exemptions that are required in connection with the execution or delivery of this Agreement, the consummation of the transactions contemplated herein or the continuation of the business of Jet following the Effective Date; and

	
(vi)

	
to the knowledge of Jet, neither Jet nor any Subsidiary is subject to any past or present fact, condition or circumstance that could reasonably be expected to result in liability under any Environmental Laws that would individually or in the aggregate, constitute a Jet Material Adverse Effect.

	
(x)

	
Restrictions on Business Activities. There is no agreement, judgement, injunction, order or decree binding upon Jet that has or could reasonably be expected to have the effect of prohibiting, restricting or materially impairing any business practice of Jet, any acquisition of property by Jet or the conduct of business by Jet as currently conducted (including following the transaction contemplated by this Agreement) other than such agreements, judgements, injunctions, orders or decrees which would not, individually or in the aggregate, reasonably be expected to have a Jet Material Adverse Effect.

	
(y)

	
Material Contracts. Jet has performed in all material respects all respective obligations required to be performed by them to date under any material contracts.  Jet is not in breach or default under any material contract to which it is a party or bound, nor does Jet have knowledge of any condition that with the passage of time or the giving of notice or both would result in such a breach or default, except in each case where any such breaches or defaults would not, individually or in the aggregate, reasonably be expected to result in, or result in, a Jet Material Adverse Effect. Jet does not know of, or has received written notice of, any breach or default under (nor, to the knowledge of Jet, does there exist any condition which with the passage of time or the giving of notice or both would result in such a breach or default under) any such material contract by any other party thereto except where any such violation or default would not, individually or in the aggregate, reasonably be expected to result in, or result in, a Jet Material Adverse Effect.  Prior to the date hereof, Jet has made available to Jetlines true and complete copies of all of the material contracts of Jet.  All material contracts are legal, valid, binding and in full force and effect and are enforceable by Jet in accordance with their respective terms (subject to bankruptcy, insolvency and other applicable Laws affecting creditors' rights generally, and to general

51

 

principles of equity) and are the product of fair and arms' length negotiations between the parties thereto.

	
(z)

	
Brokers. Except as set out in Schedule G, none of Jet or, to its knowledge, any of the officers, directors or employees of Jet has employed any broker or finder or incurred any liability for any brokerage fees, commissions or finder's fees in connection with the transactions contemplated by this Agreement.

	
(aa)

	
Reporting Issuer Status. As of the date hereof, Jet is a reporting issuer not in default (or the equivalent) under the Securities Laws of British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, New Brunswick, Nova Scotia, Prince Edward Island, and Newfoundland & Labrador.

	
(bb)

	
Stock Exchange Compliance. Jet is in compliance in all material respects with the applicable listing and corporate governance rules and regulations of the TSXV and the OTCQB.

	
(cc)

	
Money Laundering Laws. The operations of Jet and its Subsidiaries are and have been conducted at all times in compliance with applicable financial record-keeping and reporting requirements of Money Laundering Laws and no action, suit or proceeding by or before any court of governmental authority or any arbitrator non-Governmental Entity involving Jet or any Subsidiary with respect to the Money Laundering Laws is pending or, to the knowledge of Jet threatened.

	
(dd)

	
Corrupt Practices Legislation. Neither Jet and its affiliates, nor any of their respective officers, directors or employees acting on behalf of Jet or its affiliates has taken, committed to take or been alleged to have taken any action which would cause Jet or its affiliates to be in violation of the United States' Foreign Corrupt Practices Act (and the regulations promulgated thereunder), the Corruption of Foreign Public Officials Act (Canada) (and the regulations promulgated thereunder) or any applicable Law of similar effect of another jurisdiction, and to the knowledge of Jet, no such action has been taken by any of its agents, representatives or other Persons acting on behalf of Jet or its affiliates.

	
4.2

	
Survival of Representations and Warranties

The representations and warranties of Jet contained in this Agreement shall not survive the completion of the Amalgamation and shall expire and be terminated on the earlier of the Effective Time and the date on which this Agreement is terminated in accordance with its terms.

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ARTICLE 5

 COVENANTS

	
5.1

	
Covenants of Jetlines Regarding the Conduct of Business

Jetlines covenants and agrees that prior to the Effective Date, unless Jet shall otherwise agree in writing or as otherwise expressly contemplated or permitted by this Agreement:

	
(a)

	
Jetlines shall conduct its business only in, not take any action except in, and maintain its facilities, in the ordinary course of business and to use commercially reasonable efforts to preserve intact its and their present business organization and goodwill, to preserve intact Jetlines, to keep available the services of its officers and employees as a group and to maintain satisfactory relationships consistent with past practice with suppliers, employees, Governmental Entities and others having business relationships with them;

	
(b)

	
other than as expressly permitted or required by this Agreement, without limiting the generality of Subsection 5.1(a), Jetlines shall not, directly or indirectly:

	
(i)

	
issue, sell, grant, award, pledge, dispose of, encumber or agree to issue, sell, grant, award, pledge, dispose of or encumber any Jetlines Shares, any Jetlines Options or any warrants, calls, conversion privileges or rights of any kind to acquire any Jetlines Shares, other than the issuance of Jetlines Shaers and Warrants pursuant to the Bridge Financing and pursuant to the exercise of existing Jetlines Options or Jetlines Warrants or the amendment of Jetlines Options to provide for adjustment in accordance with the terms of this Agreement;

	
(ii)

	
amend or propose to amend the articles, by-laws or other constating documents or the terms of any securities of Jetlines;

	
(iii)

	
split, combine or reclassify any outstanding Jetlines Shares;

	
(iv)

	
redeem, purchase or offer to purchase any Jetlines Shares or other securities of Jetlines;

	
(v)

	
without the prior written consent of Jet, declare, set aside or pay any dividend or other distribution (whether in cash, securities or property or any combination thereof) in respect of any Jetlines Shares;

	
(vi)

	
reorganize, amalgamate or merge Jetlines with any other Person;

	
(vii)

	
reduce the stated capital of the shares of Jetlines;

	
(viii)

	
adopt a plan of liquidation or resolutions providing for the liquidation or dissolution of Jetlines;

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(ix)

	
authorize, recommend or propose any release or relinquishment of any contractual right, except in the ordinary course of business consistent with past practice;

	
(x)

	
waive, release, grant, transfer, exercise, modify or amend in any material respect, other than in the ordinary course of the business consistent with past practice, (i) any material Authorization, lease, concession, contract or other document, or (ii) any other material legal rights or claims;

	
(xi)

	
waive, release, grant or transfer any rights of value or modify or change in any material respect any existing licence, lease, contract or other document, other than in the ordinary course of business consistent with past practice;

	
(xii)

	
take any action or fail to take any action which action or failure to act would result in the material loss, expiration or surrender of, or the loss of any material benefit under, or reasonably be expected to cause any Governmental Entities to institute proceedings for the suspension, revocation or limitation of rights under, any material Permits necessary to conduct its businesses as now conducted; or fail to prosecute with commercially reasonable due diligence any pending applications to any Governmental Entities;

	
(xiii)

	
take any action or fail to take any action that is intended to, or would reasonably be expected to, individually or in the aggregate, prevent, materially delay or materially impede the ability of Jetlines to consummate the Amalgamation or the other transactions contemplated by this Agreement; or

	
(xiv)

	
take any action, permit any inaction or enter into any transaction other than in accordance with or as contemplated in this Agreement, making an investment in securities of any person other than in accordance with or as contemplated in this Agreement;

	
(c)

	
Jetlines shall use its commercially reasonable efforts to maintain and preserve all of its goodwill and all of its rights under each of its Authorizations;

	
(d)

	
Jetlines shall:

	
(i)

	
not take any action, which would render, or which reasonably may be expected to render, any representation or warranty made by it in this Agreement untrue in any material respect;

	
(ii)

	
provide Jet with prompt written notice of: (A) any change (or any condition, event, circumstance or development involving a prospective change) in the business, assets, operations, capitalization, condition (financial or otherwise), prospects, share or debt ownership, results of operations, cash flows, properties, articles, by-laws, licenses, permits

54

 

(including Authorizations), rights, or privileges, whether contractual or otherwise, or liabilities (including any contingent liabilities that may arise through outstanding, pending or threatened litigation or otherwise), of Jetlines which, when considered either individually or in the aggregate, has resulted in or would reasonably be expected to result in a Jetlines Material Adverse Effect; (B) the occurrence, or failure to occur, of any event or state of facts which occurrence or failure would or would be likely to (x) cause any of the representations of Jetlines contained herein to be untrue or inaccurate (without giving effect to, applying or taking into consideration any materiality or Jetlines Material Adverse Effect qualification already contained within such representation or warranty) in any material respect; or (y) result in the failure in any material respect of Jetlines to comply with or satisfy any covenant, condition or agreement (without giving effect to, applying or taking into consideration any qualification already contained in such covenant, condition or agreement) to be complied with or satisfied prior to the Effective Time;

	
(iii)

	
not enter into or renew any agreement, contract, lease, licence or other binding obligation of Jetlines (A) containing (1) any limitation or restriction on the ability of Jetlines or, following completion of the transactions contemplated hereby, the ability of Amalco, to engage in any type of activity or business, (2) any limitation or restriction on the manner in which, or the localities in which, all or any portion of the business of Jetlines or, following consummation of the transactions contemplated hereby, all or any portion of the business of Amalco, is or would be conducted, or (3) any limit or restriction on the ability of Jetlines or, following completion of the transactions contemplated hereby, the ability of Amalco, to solicit customers or employees, or (B) that would reasonably be expected to materially delay or prevent the consummation of the transactions contemplated by this Agreement;

	
(e)

	
Jetlines shall:

	
(i)

	
duly and timely file all Tax Returns required to be filed by it on or after the date hereof and all such Tax Returns will be true, complete and correct in all respects;

	
(ii)

	
timely withhold, collect, remit and pay all Taxes which are to be withheld, collected, remitted or paid by it to the extent due and payable;

	
(iii)

	
not make or rescind any material express or deemed election relating to Taxes;

	
(iv)

	
not make a request for a Tax ruling or enter into any agreement with any taxing authorities or consent to any extension or waiver of any limitation period with respect to Taxes;

55

 

	
(v)

	
not settle or compromise any claim, action, suit, litigation, proceeding, arbitration, investigation, audit or controversy relating to Taxes; and

	
(f)

	
Jetlines shall not authorize or propose, or enter into or modify any contract, agreement, commitment or arrangement, to do any of the matters prohibited by the other Subsections of this Section 5.1.

	
5.2

	
Covenants of Jetlines Relating to the Amalgamation

Jetlines shall perform all obligations required to be performed by Jetlines under this Agreement, co-operate with Jet in connection therewith, and do all such other acts and things as may be necessary or desirable in order to consummate and make effective, as soon as reasonably possible, the transactions contemplated in this Agreement and, without limiting the generality of the foregoing, Jetlines shall:

	
(a)

	
use its commercially reasonable efforts to complete the Amalgamation;

	
(b)

	
use its commercially reasonable efforts to obtain and assist Jet in obtaining all required Regulatory Approvals;

	
(c)

	
use its commercially reasonable efforts to obtain as soon as practicable following execution of this Agreement all third party consents, approvals and notices required under any of the material Contracts;

	
(d)

	
defend all lawsuits or other legal, regulatory or other proceedings against Jetlines challenging or affecting this Agreement or the consummation of the transactions contemplated hereby;

	
(e)

	
provide such assistance as may be reasonably requested by Jet for the purposes of completing the Jet Meeting; and

	
(f)

	
use commercially reasonable efforts to satisfy all conditions precedent in this Agreement.

	
5.3

	
Covenants of Jet Regarding the Conduct of Business

Jet covenants and agrees that prior to the Effective Date, unless Jetlines shall otherwise agree in writing or as otherwise expressly contemplated or permitted by this Agreement:

	
(a)

	
Jet shall conduct its business only in, not take any action except in, and maintain its facilities, in the ordinary course of business and to use commercially reasonable efforts to preserve intact its present business organization and goodwill, to preserve intact Jet, to keep available the services of its officers and employees as a group and to maintain satisfactory relationships consistent with past practice with suppliers, distributors, employees, Governmental Entities and others having business relationships with them;

56

 

	
(b)

	
Other than as contemplated in this Agreement, without limiting the generality of Subsection 5.3(a), Jet shall not, directly or indirectly:

	
(i)

	
issue, sell, grant, award, pledge, dispose of, encumber or agree to issue, sell, grant, award, pledge, dispose of or encumber any Jet Shares, any Jet Options or any warrants, calls, conversion privileges or rights of any kind to acquire any Jet Shares or other securities, other than pursuant to the Financing and upon exercise of existing Jet Options or Jet Warrants;

	
(ii)

	
sell, pledge, lease, dispose of, mortgage, licence, encumber or agree to sell, pledge, dispose of, mortgage, licence, encumber or otherwise transfer any assets of Jet or any interest in any assets of Jet having a value greater than $100,000 in the aggregate;

	
(iii)

	
amend or propose to amend the notice of articles, articles or other constating documents or the terms of any securities of Jet;

	
(iv)

	
split, combine or reclassify any outstanding Jet Shares;

	
(v)

	
redeem, purchase or offer to purchase any Jet Shares or other securities of Jet;

	
(vi)

	
without the prior written consent of Jetlines, declare, set aside or pay any dividend or other distribution (whether in cash, securities or property or any combination thereof) in respect of any Jet Shares;

	
(vii)

	
reorganize, amalgamate or merge Jet with any other Person;

	
(viii)

	
reduce the stated capital of the shares of Jet;

	
(ix)

	
acquire or agree to acquire (by merger, amalgamation, acquisition of shares or assets or otherwise) any Person, or make any investment either by purchase of shares or securities, contributions of capital, property transfer or purchase of any property or assets of any other Person;

	
(x)

	
except in the ordinary course of business consistent with past practice, incur, create, assume or otherwise become liable for any indebtedness for borrowed money or any other material liability or obligation or issue any debt securities, except for the borrowing of working capital in the ordinary course of business and consistent with past practice, or guarantee, endorse or otherwise as an accommodation become responsible for, the obligations of any other Person or make any loans or advances;

	
(xi)

	
adopt a plan of liquidation or resolutions providing for the liquidation or dissolution of Jet;

	
(xii)

	
pay, discharge, settle, satisfy, compromise, waive, assign or release any claims, liabilities or obligations other than the payment, discharge or

57

 

iatisfaction, in the ordinary course of business consistent with past practice, of liabilities reflected or reserved against in Jet's financial statements or incurred in the ordinary course of business consistent with past practice;

	
(xiii)

	
authorize, recommend or propose any release or relinquishment of any contractual right, except in the ordinary course of business consistent with past practice;

	
(xiv)

	
waive, release, grant, transfer, exercise, modify or amend in any material respect, other than in the ordinary course of the business consistent with past practice, (i) any material Authorization, lease, concession, contract or other document, or (ii) any other material legal rights or claims;

	
(xv)

	
waive, release, grant or transfer any rights of value or modify or change in any material respect any existing licence, lease, contract or other document, other than in the ordinary course of business consistent with past practice;

	
(xvi)

	
take any action or fail to take any action which action or failure to act would result in the material loss, expiration or surrender of, or the loss of any material benefit under, or reasonably be expected to cause any Governmental Entities to institute proceedings for the suspension, revocation or limitation of rights under, any material Permits necessary to conduct its businesses as now conducted; or fail to prosecute with commercially reasonable due diligence any pending applications to any Governmental Entities;

	
(xvii)

	
incur business expenses other than in the ordinary course and consistent with past practice;

	
(xviii)

	
take any action or fail to take any action that is intended to, or would reasonably be expected to, individually or in the aggregate, prevent, materially delay or materially impede the ability of Jet to consummate the Amalgamation or the other transactions contemplated by this Agreement;

	
(xix)

	
increase the benefits payable or to become payable to its directors or officers, enter into or modify any employment, severance, or similar agreements or arrangements with, or grant any bonuses, salary increases, severance or termination pay to, any officer of Jet or member of the Jet Board; or

	
(xx)

	
in the case of employees who are not officers of Jet or members of the Jet Board, take any action with respect to the grant of any bonuses, salary increases, severance or termination pay or with respect to any increase of benefits payable in effect on the date hereof;

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(c)

	
Jet shall not establish, adopt, enter into, amend or waive any performance or vesting criteria or accelerate vesting, exercisability or funding under any bonus, profit sharing, thrift, incentive, compensation, stock option, restricted stock, pension, retirement, deferred compensation, savings, welfare, employment, termination, severance or other employee benefit plan, agreement, trust, fund, policy or arrangement for the benefit or welfare of any directors, officers, current or former employees of Jet;

	
(d)

	
Jet shall use commercially reasonable efforts to cause its current insurance (or re-insurance) policies not to be cancelled or terminated or any of the coverage thereunder to lapse, unless simultaneously with such termination, cancellation or lapse, replacement policies underwritten by insurance and re-insurance companies of nationally recognized standing providing coverage equal to or greater than the coverage under the cancelled, terminated or lapsed policies for substantially similar premiums are in full force and effect;

	
(e)

	
Jet shall use its commercially reasonable efforts to maintain and preserve all of its rights under each of its Authorizations;

	
(f)

	
Jet shall:

	
(i)

	
not take any action which would render, or which reasonably may be expected to render, any representation or warranty made by it in this Agreement untrue in any material respect;

	
(ii)

	
provide Jetlines with prompt written notice of: (A) any change (or any condition, event, circumstance or development involving a prospective change) in the business, assets, operations, capitalization, condition (financial or otherwise), prospects, share or debt ownership, results of operations, cash flows, properties, articles, notice of articles, licenses, permits (including Authorizations), rights, or privileges, whether contractual or otherwise, or liabilities (including any contingent liabilities that may arise through outstanding, pending or threatened litigation or otherwise), of Jet which, when considered either individually or in the aggregate, has resulted in or would reasonably be expected to result in a Jet Material Adverse Effect; (B) the occurrence, or failure to occur, of any event or state of facts which occurrence or failure would or would be likely to (x) cause any of the representations of Jet contained herein to be untrue or inaccurate (without giving effect to, applying or taking into consideration any materiality or Jet Material Adverse Effect qualification already contained within such representation or warranty) in any material respect; or (y) result in the failure in any material respect of Jet to comply with or satisfy any covenant, condition or agreement (without giving effect to, applying or taking into consideration any qualification already contained in such covenant, condition or agreement) to be complied with or satisfied prior to the Effective Time;

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(iii)

	
not enter into or renew any agreement, contract, lease, licence or other binding obligation of Jet (A) containing (1) any limitation or restriction on the ability of Jet or, following completion of the transactions contemplated hereby, the ability of Amalco, to engage in any type of activity or business, (2) any limitation or restriction on the manner in which, or the localities in which, all or any portion of the business of Jet or, following consummation of the transactions contemplated hereby, all or any portion of the business of Amalco, is or would be conducted, or (3) any limit or restriction on the ability of Jet or, following completion of the transactions contemplated hereby, the ability of Amalco, to solicit customers or employees, or (B) that would reasonably be expected to materially delay or prevent the consummation of the transactions contemplated by this Agreement;

	
(iv)

	
not enter into or renew any agreement, contract, lease, licence or other binding obligation of Jet that is not terminable within 30 days of the Effective Date without payment by Jet that involves or would reasonably be expected to involve payments in excess of $100,000 in the aggregate over the term of the contract other than any finder's fee or agency agreement to be entered into with respect to the Financing; and

	
(v)

	
not incur any capital expenditures or enter into any agreement obligating Jet to provide for future capital expenditures.

	
(g)

	
Jet shall:

	
(i)

	
duly and timely file all Tax Returns required to be filed by it on or after the date hereof and all such Tax Returns will be true, complete and correct in all respects;

	
(ii)

	
timely withhold, collect, remit and pay all Taxes which are to be withheld, collected, remitted or paid by it to the extent due and payable;

	
(iii)

	
not make or rescind any material express or deemed election relating to Taxes;

	
(iv)

	
not make a request for a Tax ruling or enter into any agreement with any taxing authorities or consent to any extension or waiver of any limitation period with respect to Taxes;

	
(v)

	
not settle or compromise any claim, action, suit, litigation, proceeding, arbitration, investigation, audit or controversy relating to Taxes; and

	
(h)

	
Jet shall not authorize or propose, or enter into or modify any contract, agreement, commitment or arrangement, to do any of the matters prohibited by the other Subsections of this Section 5.3.

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5.4

	
Covenants of Jet Relating to the Amalgamation

Jet shall perform all obligations required to be performed by Jet under this Agreement, co-operate with Jetlines in connection therewith, and do all such other acts and things as may be necessary or desirable in order to consummate and make effective, as soon as reasonably practicable, the transactions contemplated in this Agreement and, without limiting the generality of the foregoing, Jet shall:

	
(a)

	
cause Jet Subco to be incorporated under the CBCA as a wholly-owned subsidiary of Jet;

	
(b)

	
cause Jet Subco to adopt this Agreement in accordance with section 14(2) of the CBCA;

	
(c)

	
use its commercially reasonable efforts to complete the Continuance;

	
(d)

	
use its commercially reasonable efforts to complete the Consolitation;

	
(e)

	
use its commercially reasonable efforts to cause Jet Subco to complete the Amalgamation;

	
(f)

	
use its commercially reasonable efforts to obtain and assist Jetlines and Jet Subco in obtaining all required Regulatory Approvals;

	
(g)

	
use its commercially reasonable efforts to obtain as soon as practicable following execution of this Agreement all third party consents, approvals and notices required under any of the material Contracts;

	
(h)

	
defend all lawsuits or other legal, regulatory or other proceedings against Jet or Jet Subco challenging or affecting this Agreement or the consummation of the transactions contemplated hereby;

	
(i)

	
provide such assistance as may be reasonably requested by Jetlines for the purposes of holding the Jetlines Meeting;

	
(j)

	
apply for and use commercially reasonable efforts to obtain conditional approval of the Change of Business, the listing and posting for trading on the TSXV of the Jet Shares to be issued upon completion of the Amalgamation and any Jet Shares issued upon exercise of Jetlines Options or Jetlines Warrants following completion of the Amalgamation, subject only to satisfaction by Jet of customary listing conditions of the TSXV;

	
(k)

	
subject to applicable Law, make available and cause to be made available to Jetlines, and its agents and advisors, information reasonably requested by Jetlines for the purposes of confirming the representations and warranties of Jet set out in Section 4.1 of this Agreement; and

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(l)

	
use commercially reasonable efforts to satisfy all conditions precedent in this Agreement.

	
5.5

	
CTA Exemption Order

Jet and Jetlines shall cooperate in good faith and use their commercially reasonable efforts to obtain an agreement from the Federal Government of Canada for the Minister of Transport to issue an order regarding the application of the foreign ownership restrictions of the Canada Transportation Act.

ARTICLE 6

 CONDITIONS

	
6.1

	
Mutual Conditions Precedent

The obligations of the Parties to complete the Amalgamation are subject to the fulfillment of each of the following conditions precedent on or before the Effective Time, each of which may only be waived with the mutual consent of the Parties:

	
(a)

	
the Jetlines Amalgamation Resolution shall have been approved and adopted by the Jetlines Shareholders at the Jetlines Meeting on or before the Meeting Deadline;

	
(b)

	
the Jet Transaction Resolution shall have been approved and adopted by the Jet Shareholders at the Jet Meeting on or before the Meeting Deadline;

	
(c)

	
the Continuance shall have been effected;

	
(d)

	
the Consolidation shall have been effected;

	
(e)

	
the Articles of Amalgamation filed with the Directors shall be in form and substance satisfactory to each of the Parties, acting reasonable;

	
(f)

	
the TSXV Approval shall have been received;

	
(g)

	
no Governmental Entity shall have enacted, issued, promulgated, enforced or entered any Law which is then in effect and has the effect of making the Amalgamation illegal or otherwise preventing or prohibiting consummation of the Amalgamation;

	
(h)

	
all Regulatory Approvals shall have been obtained on terms and conditions satisfactory to each of Jetlines and Jet, acting reasonably;

	
(i)

	
such escrow agreements as may be required by the TSXV shall have been entered into;

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(j)

	
either: (i) the Financing shall have been completed; or (ii) all conditions to completion of the Financing shall have been satisfied or waived other than a condition to the Financing requiring completion of the Amalgamation;

	
(k)

	
the Jet Debt Settlement shall have occurred;

	
(l)

	
the New King & Bay West Agreement shall have been entered into;

	
(m)

	
each employee of Jetlines and Jet shall have executed a waiver of any change of control payments that he may be entitled to under the terms of his employment agreement as a result of the transactions contemplated by this Agreement; and

	
(n)

	
there shall not be pending or threatened in writing any suit, action or proceeding by any Governmental Entity or any other Person that is reasonably likely to result in a:

	
(i)

	
prohibition or restriction on the consummation of Amalgamation or a Person obtaining from Jetlines, Jet Subco or Jet any material damages directly or indirectly in connection with the Amalgamation; or

	
(ii)

	
prohibition or material limit on the ownership by Jet of Jetlines or any material portion of its business.

	
6.2

	
Additional Conditions Precedent to the Obligations of Jet

The obligation of Jet to complete the Amalgamation is subject to the fulfillment of each of the following conditions precedent on or before the Effective Time (each of which is for the exclusive benefit of Jet and may be waived by Jet):

	
(a)

	
all covenants of Jetlines under this Agreement to be performed on or before the Effective Time which have not been waived by Jet shall have been duly performed by Jetlines in all material respects and Jet shall have received a certificate of Jetlines addressed to Jet and dated the Effective Date, signed on behalf of Jetlines by two senior executive officers of Jetlines (on Jetlines's behalf and without personal liability), confirming the same as at the Effective Time;

	
(b)

	
the representations and warranties of Jetlines set forth in this Agreement shall be true and correct in all respects, without regard to any materiality or Jetlines Material Adverse Effect qualifications contained in them as of the Effective Time, as though made on and as of the Effective Time (except for representations and warranties made as of a specified date, the accuracy of which shall be determined as of that specified date), except where the failure or failures of all such representations and warranties to be so true and correct in all respects would not reasonably be expected to have a Jetlines Material Adverse Effect, and Jet shall have received a certificate of Jetlines addressed to Jet and dated the Effective Date, signed on behalf of Jetlines by two senior executive officers of Jetlines (on Jetlines's behalf and without personal liability), confirming the same as at the Effective Date;

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(c)

	
there shall not have occurred a Jetlines Material Adverse Effect that has not been disclosed to Jet in writing prior to the date hereof, and since the date of this Agreement, there shall not have occurred a Jetlines Material Adverse Effect, and Jet shall have received a certificate signed on behalf of Jetlines by the chief executive officer and the chief financial officer of Jetlines (on Jetlines's behalf and without personal liability) to such effect;

	
(d)

	
each of the Jetlines Voting Agreements shall be in full force and effect and there shall not have occurred any material non-fulfilment or breach of any covenant or agreement, or any material misrepresentation or any incorrectness in or any breach of any representation or warranty, contained in a Jetlines Voting Agreement on the part of a Jetlines Locked-up Shareholder; and

	
(e)

	
holders of no more than 5% of the Jetlines Shares shall have exercised Dissent Rights.

The foregoing conditions will be for the sole benefit of Jet and may be waived by it in whole or in part at any time.

	
6.3

	
Additional Conditions Precedent to the Obligations of Jetlines

The obligation of Jetlines to complete the Amalgamation is subject to the fulfillment of each of the following conditions precedent on or before the Effective Time (each of which is for the exclusive benefit of Jetlines and may be waived by Jetlines):

	
(a)

	
all covenants of Jet under this Agreement to be performed on or before the Effective Time which have not been waived by Jetlines shall have been duly performed by Jet in all material respects and Jetlines shall have received a certificate of Jet, addressed to Jetlines and dated the Effective Date, signed on behalf of Jet by two senior executive officers of Jet (on Jet's behalf and without personal liability), confirming the same as of the Effective Time;

	
(b)

	
the representations and warranties of Jet set forth in this Agreement shall be true and correct in all respects, without regard to any materiality or Jet Material Adverse Effect qualifications contained in them as of the Effective Time, as though made on and as of the Effective Time (except for representations and warranties made as of a specified date, the accuracy of which shall be determined as of that specified date), except where the failure or failures of all such representations and warranties to be so true and correct in all respects would not reasonably be expected to have a Material Adverse Effect, and Jetlines shall have received a certificate of Jet addressed to Jetlines and dated the Effective Date, signed on behalf of Jet by two senior executive officers of Jet (on Jet's behalf and without personal liability), confirming the same as at the Effective Time;

	
(c)

	
there shall not have occurred a Jet Material Adverse Effect that has not been publicly disclosed by Jet prior to the date hereof or disclosed to Jetlines in writing prior to the date hereof, and since the date of this Agreement, there shall not have occurred a Jet Material Adverse Effect and Jetlines shall have received a

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certificate signed on behalf of Jet by the chief executive officer and chief financial officer of Jet (on Jet's behalf and without personal liability) to such effect;

	
(d)

	
each of the Jet Voting Agreements shall be in full force and effect and there shall not have occurred any material non-fulfilment or breach of any covenant or agreement, or any material misrepresentation or any incorrectness in or any breach of any representation or warranty, contained in a Jet Voting Agreement on the part of a Jet Locked-up Shareholder; and

	
(e)

	
holders of no more than 5% of the Jet Shares shall have exercised Dissent Rights.

The foregoing conditions will be for the sole benefit of Jetlines and may be waived by it in whole or in part at any time.

	
6.4

	
Satisfaction of Conditions

The conditions precedent set out in Section 6.1, Section 6.2 and Section 6.3 shall be conclusively deemed to have been satisfied, waived or released when, with the agreement of the Parties, the Articles of Amalgamation are filed under the CBCA to give effect to the Amalgamation.

ARTICLE 7

 ADDITIONAL AGREEMENTS

	
7.1

	
Jetlines Non-Solicitation

	
(a)

	
On and after the date of this Agreement, except as otherwise provided in this Agreement, Jetlines shall not, directly or indirectly, through any officer, director, employee, advisor, representative, agent or otherwise:

	
(i)

	
make, solicit, assist, initiate, encourage or otherwise facilitate any inquiries, proposals or offers from any other Person (including any of its officers or employees) relating to any Acquisition Proposal for Jetlines, or furnish to any Person any information with respect to, or otherwise cooperate in any way with, or assist or participate in, facilitate or encourage, any effort or attempt by any other Person to do or seek to do any of the foregoing;

	
(ii)

	
engage in any discussions or negotiations regarding, or provide any information with respect to, or otherwise co-operate in any way with, or assist or participate in, facilitate or encourage, any effort or attempt by any other Person to make or complete any Acquisition Proposal for Jetlines, provided that, for greater certainty, Jetlines may advise any Person making an unsolicited Acquisition Proposal that such Acquisition Proposal does not constitute a Superior Proposal when the Jetlines Board has so determined;

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(iii)

	
withdraw, modify or qualify, or propose publicly to withdraw, modify or qualify, in any manner adverse to Jet, the approval or recommendation of the Jetlines Board or any committee thereof of this Agreement or the Amalgamation;

	
(iv)

	
approve, recommend or remain neutral with respect to, or propose publicly to approve, recommend or remain neutral with respect to, any Acquisition Proposal for Jetlines (it being understood that publicly taking no position or a neutral position with respect to an Acquisition Proposal in respect of which a confidentiality agreement has been executed in accordance with Section 7.1(d) shall not be considered a violation of this Subsection 7.1(a)(iv)); or

	
(v)

	
accept or enter into, or publicly propose to accept or enter into, any letter of intent, agreement in principle, agreement, arrangement or undertaking related to any Acquisition Proposal,

provided, however, that nothing contained in this Subsection 7.1(a) or any other provision of this Agreement shall prevent the Jetlines Board from, and the Jetlines Board shall be permitted to engage in discussions or negotiations with, or respond to enquiries from any Person that has made a bona fide unsolicited written Acquisition Proposal that the Jetlines Board has determined constitutes or could reasonably be expected to result in a Superior Proposal, or provide information pursuant to Subsection 7.1(d) to any Person where the requirements of that Section are met.

	
(b)

	
Jetlines shall immediately cease and cause to be terminated any existing discussions or negotiations with any Person (other than Jet) with respect to any potential Acquisition Proposal and, in connection therewith, Jetlines will discontinue access to any of its confidential information (and not establish or allow access to any of its confidential information, or any data room, virtual or otherwise) and shall as soon as possible request the return or destruction of all confidential information provided in connection therewith to the extent such information has not already been returned or destroyed. Jetlines agrees not to release any third party from any confidentiality, non-solicitation or standstill agreement to which such third party is a party, or terminate, modify, amend or waive the terms thereof and Jetlines undertakes to enforce all standstill, non-disclosure, non-disturbance, non-solicitation and similar covenants that it has entered into prior to the date hereof or enter into after the date hereof.

	
(c)

	
From and after the date of this Agreement, Jetlines shall immediately provide notice to Jet of any unsolicited bona fide Acquisition Proposal or any proposal, inquiry or offer that could lead to an Acquisition Proposal or any amendments to the foregoing or any request for non-public information relating to Jetlines in connection with such an Acquisition Proposal or for access to the properties, books or records of Jetlines by any Person that informs Jetlines, any member of the Jetlines Board that it is considering making, or has made, an Acquisition

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Proposal. Such notice to Jet shall be made, from time to time, first immediately orally and then promptly (and in any event within 24 hours) in writing and shall indicate the identity of the Person making such proposal, inquiry or contact, all material terms thereof and such other details of the proposal, inquiry or contact known to Jetlines, and shall include copies of any such proposal, inquiry, offer or request or any amendment to any of the foregoing.  Jetlines shall keep Jet promptly and fully informed of the status, including any change to the material terms, of any such Acquisition Proposal, offer, inquiry or request and will respond promptly to all inquiries by Jet with respect thereto.

	
(d)

	
If the Jetlines Board receives a request for material non-public information from a Person who proposes to Jetlines an unsolicited bona fide written Acquisition Proposal, Jetlines may contact the Person making the Acquisition Proposal and its representatives solely for the purpose of clarifying the terms and conditions of such Acquisition Proposal and the likelihood of its consummation so as to determine whether such Acquisition Proposal is a Superior Proposal or could reasonably be expected to lead to a Superior Proposal; provided that Jetlines shall promptly provide Jet with copies of all correspondence and information provided to or received from such Person. If: (x) the Jetlines Board determines that such Acquisition Proposal constitutes or could reasonably be expected to result in a Superior Proposal; and (y) in the opinion of the Jetlines Board, acting in good faith and on advice from their outside legal advisors, the failure to provide such party with access to information regarding Jetlines would be inconsistent with the fiduciary duties of the Jetlines Board, then, and only in such case, Jetlines may provide such Person with access to information regarding Jetlines, subject to the execution of a confidentiality and standstill agreement which is customary in such situations; provided that Jetlines sends a copy of any such confidentiality and standstill agreement to Jet promptly upon its execution and Jet is provided with a list of, and, at the request of Jet, copies of, the information provided to such Person and immediately provided with access to similar information to which such Person was provided.

	
(e)

	
Jetlines agrees that it will not accept, approve or enter into any agreement (a "Jetlines Proposed Agreement"), other than a confidentiality agreement as contemplated by Subsection 7.1(d), with any Person providing for or to facilitate any Acquisition Proposal unless:

	
(i)

	
the Jetlines Board determines that the Acquisition Proposal constitutes a Superior Proposal;

	
(ii)

	
the Jetlines Meeting has not occurred;

	
(iii)

	
Jetlines has complied with Subsections 7.1(a) through 7.1(d) inclusive;

	
(iv)

	
Jetlines has provided Jet with a notice in writing that there is a Superior Proposal together with all documentation related to and detailing the Superior Proposal, including a copy of any Jetlines Proposed Agreement

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relating to such Superior Proposal, and a written notice from the Jetlines Board regarding the value in financial terms that the Jetlines Board has in consultation with its financial advisors determined should be ascribed to any non-cash consideration offered under the Superior Proposal, such documents to be so provided to Jet not less than five business days prior to the proposed acceptance, approval, recommendation or execution of the Jetlines Proposed Agreement by Jetlines;

	
(v)

	
Five business days shall have elapsed from the date Jet received the notice and documentation referred to in Subsection 7.1(e)(iv) from Jetlines and, if Jet has proposed to amend the terms of the Amalgamation in accordance with Subsection 7.1(f), the Jetlines Board shall have determined, in good faith, after consultation with its financial advisors and outside legal counsel, that the Acquisition Proposal is a Superior Proposal compared to the proposed amendment to the terms of the Amalgamation by Jet; and

	
(vi)

	
Jetlines concurrently terminates this Agreement pursuant to Section 8.2(a)(iv)(E);

and Jetlines further agrees that it will not withdraw, modify or qualify (or propose to withdraw, modify or qualify) in any manner adverse to Jet the approval or recommendation of the Amalgamation, nor accept, approve or recommend any Acquisition Proposal unless the requirements of this Section 7.1(e)(i) through 7.1(e)(v)have been satisfied.

	
(f)

	
Jetlines acknowledges and agrees that, during the five business day periods referred to in Subsections 7.1(e)(iv) and 7.1(e)(v) or such longer period as Jetlines may approve for such purpose, Jet shall have the opportunity, but not the obligation, to propose to amend the terms of this Agreement and the Amalgamation and Jetlines shall co-operate with Jet with respect thereto, including negotiating in good faith with Jet to enable Jet to make such adjustments to the terms and conditions of this Agreement and the Amalgamation as Jet deems appropriate and as would enable Jet to proceed with the Amalgamation and any related transactions on such adjusted terms. The Jetlines Board will review any proposal by Jet to amend the terms of the Amalgamation in order to determine, in good faith in the exercise of its fiduciary duties and consistent with Subsection 7.1(a), whether Jet's proposal to amend the Amalgamation would result in the Acquisition Proposal not being a Superior Proposal compared to the proposed amendment to the terms of the Amalgamation.

	
(g)

	
The Jetlines Board shall promptly reaffirm its recommendation of the Amalgamation by press release after: (x) any Acquisition Proposal which the Jetlines Board determines not to be a Superior Proposal is publicly announced or made; or (y) the Jetlines Board determines that a proposed amendment to the terms of the Amalgamation would result in the Acquisition Proposal which has been publicly announced or made not being a Superior Proposal, and Jet has so amended the terms of the Amalgamation. Jet and its counsel shall be given a

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reasonable opportunity to review and comment on the form and content of any such press release, recognizing that whether or not such comments are appropriate will be determined by Jetlines, acting reasonably.

	
(h)

	
Nothing in this Agreement shall prevent the Jetlines Board from responding through a directors' circular or otherwise as required by applicable Securities Laws to an Acquisition Proposal that it determines is not a Superior Proposal, or from withdrawing, modifying or changing its recommendation as a result of Jet having suffered a Jet Material Adverse Effect.  Further, nothing in this Agreement shall prevent the Jetlines Board from making any disclosure to the securityholders of Jetlines if the Jetlines Board, acting in good faith and upon the advice of its legal advisors, shall have first determined that the failure to make such disclosure would be inconsistent with the fiduciary duties of the Jetlines Board or such disclosure is otherwise required under applicable Law, provided, however, that, notwithstanding the Jetlines Board shall be permitted to make such disclosure, the Jetlines Board shall not be permitted to make a Jetlines Change in Recommendation, other than as permitted by Section 7.1(e) or the first sentence of this paragraph.  Jet and its counsel shall be given a reasonable opportunity to review and comment on the form and content of any such disclosure, recognizing that whether or not such comments are appropriate will be determined by Jetlines, acting reasonably.

	
(i)

	
Jetlines acknowledges and agrees that each successive modification of any Acquisition Proposal shall constitute a new Acquisition Proposal for the purposes of this Section 7.1.

	
(j)

	
Jetlines shall ensure that the officers, directors and employees of and any investment bankers or other advisors or representatives retained by Jetlines in connection with the transactions contemplated by this Agreement are aware of the provisions of this Section, and Jetlines shall be responsible for any breach of this Section 7.1 by such officers, directors, employees, investment bankers, advisors or representatives.

	
(k)

	
If Jetlines provides Jet with the notice of an Acquisition Proposal contemplated in this Section 7.1 on a date that is less than seven calendar days prior to the Jetlines Meeting, if requested by Jet, Jetlines shall adjourn the Jetlines Meeting to a date that is not less than seven calendar days and not more than 10 calendar days after the date of such notice, provided, however, that the Jetlines Meeting shall not be adjourned or postponed to a date later than the seventh (7) business day prior to the Outside Date.

	
7.2

	
Jet Non-Solicitation

	
(a)

	
On and after the date of this Agreement, except as otherwise provided in this Agreement, Jet shall not, directly or indirectly, through any officer, director, employee, advisor, representative, agent or otherwise:

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(i)

	
make, solicit, assist, initiate, encourage or otherwise facilitate any inquiries, proposals or offers from any other Person (including any of its officers or employees) relating to any Acquisition Proposal for Jet, or furnish to any Person any information with respect to, or otherwise cooperate in any way with, or assist or participate in, facilitate or encourage, any effort or attempt by any other Person to do or seek to do any of the foregoing;

	
(ii)

	
engage in any discussions or negotiations regarding, or provide any information with respect to, or otherwise co-operate in any way with, or assist or participate in, facilitate or encourage, any effort or attempt by any other Person to make or complete any Acquisition Proposal for Jet, provided that, for greater certainty, Jet may advise any Person making an unsolicited Acquisition Proposal that such Acquisition Proposal does not constitute a Superior Proposal when the Jet Board has so determined;

	
(iii)

	
withdraw, modify or qualify, or propose publicly to withdraw, modify or qualify, in any manner adverse to Jetlines, the approval or recommendation of the Jet Board or any committee thereof of this Agreement or the Amalgamation;

	
(iv)

	
approve, recommend or remain neutral with respect to, or propose publicly to approve, recommend or remain neutral with respect to, any Acquisition Proposal involving Jet (it being understood that publicly taking no position or a neutral position with respect to an Acquisition Proposal in respect of which a confidentiality agreement has been executed in accordance with Section 7.2(d) shall not be considered a violation of this Subsection 7.2(a)(iv)); or

	
(v)

	
accept or enter into, or publicly propose to accept or enter into, any letter of intent, agreement in principle, agreement, arrangement or undertaking related to any Acquisition Proposal involving Jet,

provided, however, that nothing contained in this Subsection 7.2(a) or any other provision of this Agreement shall prevent the Jet Board from, and the Jet Board shall be permitted to engage in discussions or negotiations with, or respond to enquiries from any Person that has made a bona fide unsolicited written Acquisition Proposal that the Jet board has determined constitutes or could reasonably be expected to result in a Superior Proposal, or provide information pursuant to Subsection 7.2(d) to any Person where the requirements of that Section are met.

	
(b)

	
Jet shall immediately cease and cause to be terminated any existing discussions or negotiations with any Person (other than Jetlines) with respect to any potential Acquisition Proposal and, in connection therewith, Jet will discontinue access to any of its confidential information (and not establish or allow access to any of its confidential information, or any data room, virtual or otherwise) and shall as soon

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as possible request the return or destruction of all confidential information provided in connection therewith to the extent such information has not already been returned or destroyed. Jet agrees not to release any third party from any confidentiality, non-solicitation or standstill agreement to which such third party is a party, or terminate, modify, amend or waive the terms thereof and Jet undertakes to enforce all standstill, non-disclosure, non-disturbance, non-solicitation and similar covenants that it has entered into prior to the date hereof or enter into after the date hereof.

	
(c)

	
From and after the date of this Agreement, Jet shall immediately provide notice to Jetlines of any unsolicited bona fide Acquisition Proposal or any proposal, inquiry or offer that could lead to an Acquisition Proposal or any amendments to the foregoing or any request for non-public information relating to Jet in connection with such an Acquisition Proposal or for access to the properties, books or records of Jet by any Person that informs Jet, any member of the Jet Board that it is considering making, or has made, an Acquisition Proposal. Such notice to Jetlines shall be made, from time to time, first immediately orally and then promptly (and in any event within 24 hours) in writing and shall indicate the identity of the Person making such proposal, inquiry or contact, all material terms thereof and such other details of the proposal, inquiry or contact known to Jet, and shall include copies of any such proposal, inquiry, offer or request or any amendment to any of the foregoing.  Jet shall keep Jetlines promptly and fully informed of the status, including any change to the material terms, of any such Acquisition Proposal, offer, inquiry or request and will respond promptly to all inquiries by Jet with respect thereto.

	
(d)

	
If the Jet Board receives a request for material non-public information from a Person who proposes to Jet an unsolicited bona fide written Acquisition Proposal, Jet may contact the Person making the Acquisition Proposal and its representatives solely for the purpose of clarifying the terms and conditions of such Acquisition Proposal and the likelihood of its consummation so as to determine whether such Acquisition Proposal is a Superior Proposal or could reasonably be expected to lead to a Superior Proposal; provided that Jet shall promptly provide Jetlines with copies of all correspondence and information provided to or received from such Person. If: (x) the Jet Board determines that such Acquisition Proposal constitutes or could reasonably be expected to result in a Superior Proposal; and (y) in the opinion of the Jet Board, acting in good faith and on advice from their outside legal advisors, the failure to provide such party with access to information regarding Jet would be inconsistent with the fiduciary duties of the Jet Board, then, and only in such case, Jet may provide such Person with access to information regarding Jet, subject to the execution of a confidentiality and standstill agreement which is customary in such situations; provided that Jet sends a copy of any such confidentiality and standstill agreement to Jetlines promptly upon its execution and Jetlines is provided with a list of, and, at the request of Jetlines, copies of, the information provided to such Person and immediately provided with access to similar information to which such Person was provided.

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(e)

	
Jet agrees that it will not accept, approve or enter into any agreement (a "Jet Proposed Agreement"), other than a confidentiality agreement as contemplated by Subsection 7.2(d), with any Person providing for or to facilitate any Acquisition Proposal unless:

	
(i)

	
the Jet Board determines that the Acquisition Proposal constitutes a Superior Proposal;

	
(ii)

	
the Jet Meeting has not occurred;

	
(iii)

	
Jet has complied with Subsections 7.2(a) through 7.2(d) inclusive;

	
(iv)

	
Jet has provided Jetlines with a notice in writing that there is a Superior Proposal together with all documentation related to and detailing the Superior Proposal, including a copy of any Jet Proposed Agreement relating to such Superior Proposal, and a written notice from the Jet Board regarding the value in financial terms that the Jet Board has in consultation with its financial advisors determined should be ascribed to any non-cash consideration offered under the Superior Proposal, such documents to be so provided to Jetlines not less than five business days prior to the proposed acceptance, approval, recommendation or execution of the Jet Proposed Agreement by Jet.

	
(v)

	
Five business days shall have elapsed from the date Jetlines received the notice and documentation referred to in Subsection 7.2(e)(iv) from Jet and, if Jetlines has proposed to amend the terms of the Amalgamation in accordance with Subsection 7.2(f), the Jet Board shall have determined, in good faith, after consultation with its financial advisors and outside legal counsel, that the Acquisition Proposal is a Superior Proposal compared to the proposed amendment to the terms of the Amalgamation by Jetlines; and

	
(vi)

	
Jet concurrently terminates this Agreement pursuant to Section 8.2(a)(iii);

and Jet further agrees that it will not withdraw, modify or qualify (or propose to withdraw, modify or qualify) in any manner adverse to Jetlines the approval or recommendation of the Amalgamation, nor accept, approve or recommend any Acquisition Proposal unless the requirements of this Section 7.2(e)(i) through 7.2(e)(v) have been satisfied.

	
(f)

	
Jet acknowledges and agrees that, during the five business day periods referred to in Subsections 7.2(e)(iv) and 7.2(e)(v) or such longer period as Jet may approve for such purpose, Jetlines shall have the opportunity, but not the obligation, to propose to amend the terms of this Agreement and the Amalgamation and Jet shall co-operate with Jetlines with respect thereto, including negotiating in good faith with Jetlines to enable Jetlines to make such adjustments to the terms and conditions of this Agreement and the Amalgamation as Jet deems appropriate and as would enable Jet to proceed with the Amalgamation and any related

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transactions on such adjusted terms. The Jet Board will review any proposal by Jetlines to amend the terms of the Amalgamation in order to determine, in good faith in the exercise of its fiduciary duties and consistent with Subsection 7.2(a), whether Jetlines's proposal to amend the Amalgamation would result in the Acquisition Proposal not being a Superior Proposal compared to the proposed amendment to the terms of the Amalgamation.

	
(g)

	
The Jet Board shall promptly reaffirm its recommendation of the Amalgamation by press release after: (x) any Acquisition Proposal which the Jet Board determines not to be a Superior Proposal is publicly announced or made; or (y) the Jet Board determines that a proposed amendment to the terms of the Amalgamation would result in the Acquisition Proposal which has been publicly announced or made not being a Superior Proposal, and Jetlines has so amended the terms of the Amalgamation. Jetlines and its counsel shall be given a reasonable opportunity to review and comment on the form and content of any such press release, recognizing that whether or not such comments are appropriate will be determined by Jet, acting reasonably.

	
(h)

	
Nothing in this Agreement shall prevent the Jet Board from responding through a directors' circular or otherwise as required by applicable Securities Laws to an Acquisition Proposal that it determines is not a Superior Proposal, or from withdrawing, modifying or changing its recommendation as a result of Jetlines having suffered a Jetlines Material Adverse Effect.  Further, nothing in this Agreement shall prevent the Jet Board from making any disclosure to the securityholders of Jet if the Jet Board, acting in good faith and upon the advice of its legal advisors, shall have first determined that the failure to make such disclosure would be inconsistent with the fiduciary duties of the Jet Board or such disclosure is otherwise required under applicable Law, provided, however, that, notwithstanding the Jet Board shall be permitted to make such disclosure, the Jet Board shall not be permitted to make a Jet Change in Recommendation, other than as permitted by Section 7.2(e) or the first sentence of this paragraph.  Jetlines and its counsel shall be given a reasonable opportunity to review and comment on the form and content of any such disclosure, recognizing that whether or not such comments are appropriate will be determined by Jet, acting reasonably.

	
(i)

	
Jet acknowledges and agrees that each successive modification of any Acquisition Proposal shall constitute a new Acquisition Proposal for the purposes of this Section 7.2.

	
(j)

	
Jet shall ensure that the officers, directors and employees of Jet and any investment bankers or other advisors or representatives retained by Jet in connection with the transactions contemplated by this Agreement are aware of the provisions of this Section, and Jet shall be responsible for any breach of this Section 7.2 by such officers, directors, employees, investment bankers, advisors or representatives.

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(k)

	
If Jet provides Jetlines with the notice of an Acquisition Proposal contemplated in this Section 7.2 on a date that is less than seven calendar days prior to the Jet Meeting, if requested by Jetlines, Jet shall adjourn the Jet Meeting to a date that is not less than seven calendar days and not more than 10 calendar days after the date of such notice, provided, however, that the Jet Meeting shall not be adjourned or postponed to a date later than the seventh (7) business day prior to the Outside Date.

	
7.3

	
Access to Information; Confidentiality

From the date hereof until the earlier of the Effective Time and the termination of this Agreement pursuant to its terms, subject to compliance with applicable Law and the terms of any existing Contracts, each Party shall, and shall cause their respective Representatives to afford to the other Party and to Representatives of the other Party such access as the other Party may reasonably require at all reasonable times, including for the purpose of facilitating integration business planning, to their officers, employees, agents, properties, books, records and contracts, and shall furnish Jet the other Party with all data and information as the other Party may reasonably request.

	
7.4

	
Notices of Certain Events

	
(a)

	
Each Party will give prompt notice to the other of the occurrence, or failure to occur, at any time from the date hereof until the earlier to occur of the termination of this Agreement pursuant to its terms and the Effective Time of any event or state of facts which occurrence or failure would, or would be likely to:

	
(i)

	
cause any of the representations or warranties of such Party contained herein to be untrue or inaccurate in any material respect on the date hereof or at the Effective Time (provided that this clause (i) shall not apply in the case of any event or state of facts resulting from the actions or omissions of a Party which are required under this Agreement); or

	
(ii)

	
result in the failure to comply with or satisfy any covenant, condition or agreement to be complied with or satisfied by such Party hereunder prior to the Effective Time,

provided, however, that the delivery of any notice pursuant to this Section 7.4 shall not limit or otherwise affect the remedies available hereunder to the Party receiving that notice.

	
(b)

	
No Party may elect not to complete the transactions contemplated hereby pursuant to the conditions set forth herein or any termination right arising therefrom under Section 8.2(a)(iii)(B) or Section 8.2(a)(iv)(B) unless, prior to the Effective Date, the Party intending to rely thereon has delivered a written notice to the other Party specifying in reasonable detail all breaches of covenants, representations and warranties or other matters which the Party delivering such notice is asserting as the basis for the non-fulfilment or the applicable condition or termination right, as the case may be. If any such notice is delivered, provided that a Party is

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proceeding diligently to cure such matter and such matter is capable of being cured, no Party may terminate this Agreement until the expiration of a period of five Business Days from such notice.

ARTICLE 8

 TERM, TERMINATION, AMENDMENT AND WAIVER

	
8.1

	
Term

This Agreement shall be effective from the date hereof until the earlier of the Effective Time and the termination of this Agreement in accordance with its terms.

	
8.2

	
Termination

	
(a)

	
This Agreement may be terminated at any time prior to the Effective Time (notwithstanding Jet Shareholder Approval or Jetlines Shareholder Approval):

	
(i)

	
by mutual written agreement of Jetlines and Jet;

	
(ii)

	
by either Jetlines or Jet, if:

	
(A)

	
the Effective Time shall not have occurred on or before the Outside Date, except that the right to terminate this Agreement under this 8.2(a)(ii)(A) shall not be available to any Party whose failure to fulfill any of its obligations or breach of any of its representations and warranties under this Agreement has been the cause of, or resulted in, the failure of the Effective Time to occur by such Outside Date;

	
(B)

	
after the date hereof, there shall be enacted or made any applicable Law that makes consummation of the Amalgamation illegal or otherwise prohibited or enjoins Jetlines or Jet from consummating the Amalgamation and such applicable Law or enjoinment shall have become final and non-appealable;

	
(C)

	
the Jet Shareholder Approval shall not have been obtained  at the Jet Meeting; or

	
(D)

	
Jetlines Shareholder Approval shall not have been obtained at the Jetlines Meeting;

	
(iii)

	
by Jet, if:

	
(A)

	
prior to the Effective Time: (1) subject to Section 7.1(a)(iv), the Jetlines Board fails to unanimously recommend or withdraws, amends, modifies or qualifies, in a manner adverse to Jet or fails to publicly reaffirm its unanimous recommendation of the Amalgamation within three calendar days (and in any case prior to

 

75

the Jetlines Meeting) after having been requested in writing by Jet to do so, in a manner adverse to Jet (a "Jetlines Change in Recommendation"); (2) the Jetlines Board or a committee thereof shall have approved or recommended any Acquisition Proposal; or (3) Jetlines shall have breached Section 7.1 in any material respect;

 

	
(B)

	
a breach of any representation or warranty or failure to perform any covenant or agreement on the part of Jetlines set forth in this Agreement shall have occurred that would cause the conditions set forth in Section 6.2(a) or Section 6.2(b) not to be satisfied, and such conditions are incapable of being satisfied by the Outside Date, as reasonably determined by Jet and provided that Jet is not then in breach of this Agreement so as to cause any condition in Section 6.2(a) or Section 6.2(b) not to be satisfied;

	
(C)

	
Jet has been notified in writing by Jetlines of a Jetlines Proposed Agreement in accordance with Section 7.1(e), and either: (i) Jet does not deliver an amended Amalgamation proposal within five Business Days of delivery of the Jetlines Proposed Agreement to Jet; or (ii) Jet delivers an amended Amalgamation proposal pursuant to Section 7.1(f) but the Jetlines Board determines, acting in good faith and in the proper discharge of its fiduciary duties, that the Acquisition Proposal provided in the Jetlines Proposed Agreement continues to be a Superior Proposal in comparison to the amended Amalgamation terms offered by Jet;

	
(D)

	
the condition in Section 6.1(j) shall not have been satisfied on or before June 30, 2016; or

	
(E)

	
it wishes to enter into a binding written agreement with respect to a Superior Proposal (other than a non-disclosure and standstill agreement permitted by Section 7.2(d)), subject to compliance with Section 7.2 in all material respects.

	
(iv)

	
by Jetlines, if

	
(A)

	
prior to the Effective Time: (1) subject to Section 7.2(a)(iv), the Jet Board fails to unanimously recommend or withdraws, amends, modifies or qualifies, in a manner adverse to Jetlines or fails to publicly reaffirm its unanimous recommendation of the Amalgamation within three calendar days (and in any case prior to the Jet Meeting) after having been requested in writing by Jetlines to do so, in a manner adverse to Jetlines (an "Jet Change in Recommendation"); (2) the Jet Board or a committee thereof shall have approved or recommended any Acquisition Proposal; or (3) Jet shall have breached Section 7.2 in any material respect;

76

 

	
(B)

	
a breach of any representation or warranty or failure to perform any covenant or agreement on the part of Jet set forth in this Agreement shall have occurred that would cause the conditions set forth in Section 6.3(a) or 6.3(b) not to be satisfied, and such conditions are incapable of being satisfied by the Outside Date as reasonably determined by Jetlines and provided that Jetlines is not then in breach of this Agreement so as to cause any condition in Section 6.3(a) or Section 6.3(b) not to be satisfied;

	
(C)

	
Jetlines has been notified in writing by Jet of a Jet Proposed Agreement in accordance with Section 7.2(e), and either: (i) Jetlines does not deliver an amended Amalgamation proposal within five Business Days of delivery of the Jet Proposed Agreement to Jetlines; or (ii) Jetlines delivers an amended Amalgamation proposal pursuant to Section 7.2(f) but the Jet Board determines, acting in good faith and in the proper discharge of its fiduciary duties, that the Acquisition Proposal provided in the Jet Proposed Agreement continues to be a Superior Proposal in comparison to the amended Amalgamation terms offered by Jetlines;

	
(D)

	
the condition in Section 6.1(j) shall not have been satisfied on or before June 30, 2016; or

	
(E)

	
it wishes to enter into a binding written agreement with respect to a Superior Proposal (other than a non-disclosure and standstill agreement permitted by Section 7.1(d)), subject to compliance with Section 7.1 in all material respects.

	
(b)

	
The Party desiring to terminate this Agreement pursuant to this Section 8.2 (other than pursuant to Section 8.2(a)(i)) shall give notice of such termination to the other Party, specifying in reasonable detail the basis for such Party's exercise of its termination right.

	
(c)

	
If this Agreement is terminated pursuant to this Section 8.2, this Agreement shall become void and be of no further force or effect without liability of any Party (or any shareholder, director, officer, employee, agent, consultant or representative of such Party) to any other Party hereto, except that the provisions of this Section 8.2(c) and Sections 8.3, 9.1, 9.2, 9.3, 9.5, 9.6 and 9.8 and all related definitions set forth in Section 1.1 shall survive any termination hereof pursuant to Section 8.2.

	
(d)

	
Section 8.2(a)(iv)(B) of this Agreement is the equivalent section for the purposes of Section 6(5) of the Loan Agreement.

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8.3

	
Expenses

Except as otherwise provided herein, all fees, costs and expenses incurred in connection with this Agreement and the Amalgamation shall be paid by the Party incurring such fees, costs or expenses.

	
8.4

	
Amendment

Subject to applicable Laws, this Agreement may, at any time and from time to time before or after the holding of the Jetlines Meeting or the Jet Meeting but not later than the Effective Time, be amended by mutual written agreement of the Parties, without further notice to or Authorization on the part of the Jetlines Shareholders or Jet Shareholders, and any such amendment may without limitation:

	
(a)

	
change the time for performance of any of the obligations or acts of the Parties;

	
(b)

	
waive any inaccuracies or modify any representation or warranty contained herein or in any document delivered pursuant hereto;

	
(c)

	
waive compliance with or modify any of the covenants herein contained and waive or modify performance of any of the obligations of the Parties; and

	
(d)

	
waive compliance with or modify any mutual conditions precedent herein contained.

	
8.5

	
Waiver

Any Party may (a) extend the time for the performance of any of the obligations or acts of the other Party, (b) waive compliance, except as provided herein, with any of the other Party's agreements or the fulfilment of any conditions to its own obligations contained herein, or (c) waive inaccuracies in any of the other Party's representations or warranties contained herein or in any document delivered by the other Party; provided, however, that any such extension or waiver shall be valid only if set forth in an instrument in writing signed on behalf of such Party and, unless otherwise provided in the written waiver, will be limited to the specific breach or condition waived.

ARTICLE 9

 GENERAL PROVISIONS

	
9.1

	
Notices

All notices and other communications given or made pursuant to this Agreement shall be in writing and shall be deemed to have been duly given and received on the day it is delivered, provided that it is delivered on a business day prior to 5:00 p.m. local time in the place of delivery or receipt. However, if notice is delivered after 5:00 p.m. local time or if such day is not a business day then the notice shall be deemed to have been given and received on the next business day. Notice shall be sufficiently given if delivered (either in Person, by courier service or other personal method of delivery), or if transmitted by facsimile or email to the Parties at the

 

78

 

following addresses (or at such other addresses as shall be specified by any Party by notice to the other given in accordance with these provisions):

	
(a)

	
if to Jet:

Jet Metal Corp.

1240 – 1140 West Pender St.

Vancouver, B.C.

V6E 4G1

Attention: Mark J. Morabito, Chief Executive Officer

Facsimile: (604) 681-8039

Email: mmorabito@kingandbay.com

with a copy (which shall not constitute notice) to:

King & Bay West Management Corp.

1240 – 1140 West Pender St.

Vancouver, B.C.

V6E 4G1

Attention: Olen J. Aasen, Executive VP & General Counsel

Facsimile: (604) 681-8039

Email: oaasen@kingandbay.com

	
(b)

	
if to Jetlines:

Canada Jetlines Ltd.

Room C4408, YVR International Terminal Bldg.

3211 Grant McConachie Way

Richmond, B.C.

V7B 0A4

Attention: Jim Scott, Chief Executive Officer

Facsimile: (604)

Email: jim.scott@jetlines.ca

with a copy (which shall not constitute notice) to:

Miller Thomson LLP

1000 – 840 Howe Street

Vancouver, British Columbia

V6Z 2M1

Attention: Kevin Sorochan

Facsimile: (604) 643-1200

Email: ksorochan@millerthomson.com

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9.2

	
Governing Law; Waiver of Jury Trial

This Agreement shall be governed, including as to validity, interpretation and effect, by the Laws of the Province of British Columbia and the Laws of Canada applicable therein. Each of the Parties hereby irrevocably attorns to the exclusive jurisdiction of the courts of the Province of British Columbia in respect of all matters arising under and in relation to this Agreement.  EACH PARTY TO THIS AGREEMENT HEREBY WAIVES ANY RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM (WHETHER BASED ON CONTRACT, TORT OR OTHERWISE) ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THE ACTIONS OF THE PARTIES IN THE NEGOTIATION, ADMINISTRATION, PERFORMANCE AND ENFORCEMENT OF THIS AGREEMENT.

	
9.3

	
Injunctive Relief

The Parties agree that irreparable harm would occur for which money damages would not be an adequate remedy at Law in the event that any of the provisions of this Agreement were not performed in accordance with their specific terms or were otherwise breached. Accordingly, the Parties agree that, in the event of any breach or threatened breach of this Agreement by a Party, the non-breaching Party will be entitled, without the requirement of posting a bond or other security, to equitable relief, including injunctive relief and specific performance, and the Parties shall not object to the granting of injunctive or other equitable relief on the basis that there exists an adequate remedy at Law. Such remedies will not be the exclusive remedies for any breach of this Agreement but will be in addition to all other remedies available at Law or equity to each of the Parties.

	
9.4

	
Time of Essence

Time shall be of the essence in this Agreement.

	
9.5

	
Entire Agreement, Binding Effect and Assignment

This Agreement constitutes the entire agreement, and supersedes all other prior agreements and understandings, both written and oral, between the Parties with respect to the subject matter hereof and thereof (except for the Loan Agreement and GSA) and, except as expressly provided herein, this Agreement is not intended to and shall not confer upon any Person other than the Parties any rights or remedies hereunder.  Neither this Agreement nor any of the rights, interests or obligations hereunder may be assigned by either of the Parties without the prior written consent of the other Parties.

	
9.6

	
No Liability

No director or officer of Jet shall have any personal liability whatsoever to Jetlines under this Agreement, or any other document delivered in connection with the transactions contemplated hereby on behalf of Jet. No director or officer of Jetlines shall have any personal liability whatsoever to Jet under this Agreement, or any other document delivered in connection with the transactions contemplated hereby on behalf of Jetlines.

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9.7

	
Severability

If any term or other provision of this Agreement is invalid, illegal or incapable of being enforced by any rule or Law or public policy, all other conditions and provisions of this Agreement shall nevertheless remain in full force and effect so long as the economic or legal substance of the transactions contemplated hereby is not affected in any manner materially adverse to any Party. Upon such determination that any term or other provision is invalid, illegal or incapable of being enforced, the Parties shall negotiate in good faith to modify this Agreement so as to effect the original intent of the Parties as closely as possible in an acceptable manner to the end that the transactions contemplated hereby are fulfilled to the fullest extent possible.

	
9.8

	
Counterparts, Execution

This Agreement may be executed in one or more counterparts, each of which shall be deemed to be an original but all of which together shall constitute one and the same instrument. The Parties shall be entitled to rely upon delivery of an executed facsimile or similar executed electronic copy of this Agreement, and such facsimile or similar executed electronic copy shall be legally effective to create a valid and binding agreement between the Parties.

[Remainder of page intentionally left blank.]

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IN WITNESS WHEREOF Jet and Jetlines have caused this Agreement to be executed as of the date first written above by their respective officers thereunto duly authorized.

JET METAL CORP.

By: "Mark J. Morabito"

Name: Mark J. Morabito

Title: CEO

JET METAL ACQUSITION CORP., a company to be incorporated, and executed on its behalf by JET METAL CORP.

By: "Mark J. Morabito"

Name: Mark J. Morabito

Title: CEO

CANADA JETLINES LTD.

By: "John J. Sutherland"

Name: John J. Sutherland

Title: CFO

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SCHEDULE A – JET TRANSACTION RESOLUTION

IT IS RESOLVED THAT:

	
1.

	
Jet Metal Corp. ("Jet") is hereby authorized to amend its authorized share capital as follows:

	
a.

	
the authorized share capital of Jet is altered by consolidating all of the issued and outstanding common shares of Jet ("Common Shares") on the basis of one (1) post-consolidation Common Share for every one and one-half (1.5) pre-consolidation Common Shares;

	
b.

	
in the event that the consolidation would otherwise result in the issuance of a fractional Common Share, no fractional Common Share shall be issued and such fraction will be rounded down to the nearest whole number; and

	
c.

	
the effective date and time of such consolidation shall be the date and time determined by resolution of the directors of Jet.

	
2.

	
The "Change of Business" (as such term is defined in TSX Venture Exchange Policy 5.2 – Changes of Business and Reverse Takeovers) of Jet from a "mining issuer" to an "industrial issuer" be and is hereby approved.

	
3.

	
Jet is hereby authorized to make an application to the Registrar of Companies, under the Business Corporations Act (British Columbia), requesting that Jet be continued from the Province of British Columbia to the federal jurisdiction of Canada as if it had been incorporated under the laws of Canada (the "Continuance");

	
4.

	
Jet is hereby authorized to make an application to the Director under the Canada Business Corporations Act for a Certificate of Continuance continuing Jet under the Canada Business Corporations Act;

	
5.

	
Any one director, officer or agent of Jet be and is hereby authorized and directed to electronically file the Articles of Continuance under the Canada Business Corporations Act and the Certificate of Continuance under the Business Corporations Act (British Columbia);

	
6.

	
The directors of Jet are hereby authorized to revoke this resolution at any time prior to the Continuance becoming effective without further approval of the shareholders of Jet and to determine not to proceed with the Continuance; and

	
7.

	
Any one or more officers and directors of Jet is hereby authorized and directed for and on behalf of Jet to execute and deliver articles of amalgamation to the Director under the Canada Business Corporations Act and to execute and deliver for and in the name of and on behalf of Jet, whether under corporate seal or not, all such other certificates, instruments, agreements, documents and notices, and to take all such further actions that such person may determine to be necessary or appropriate to carry out the purposes and intent of the foregoing resolutions, such determination to be conclusively evidenced by

83

 

the execution and delivery of such certificate, instrument, agreement, document or notice and taking of such action.

84

SCHEDULE B – JET SUBCO AMALGAMATION RESOLUTION

IT IS RESOLVED THAT:

	
1.

	
The amalgamation (the "Amalgamation") of Jet Metal Acquisition Corp. ("Jet Subco") and Canada Jetlines Ltd. ("Jetlines") upon substantially the terms and conditions set forth in the form of amalgamation agreement (the "Amalgamation Agreement") between Jet Metal Corp., Jet Subco and Jetlines dated April 12, 2016 be and is hereby approved.   

	
2.

	
The Amalgamation Agreement, as it may be amended in accordance with its terms, is hereby approved.

	
3.

	
The actions of the directors of Jet Subco in connection with the Amalgamation are hereby approved.   

	
4.

	
Any one or more officers and directors of Jet Subco is hereby authorized and directed for and on behalf of Jet Subco to execute and deliver articles of amalgamation to the Director under the Canada Business Corporations Act and to execute and deliver for and in the name of and on behalf of Jet Subco, whether under corporate seal or not, all such other certificates, instruments, agreements, documents and notices, and to take all such further actions that such person may determine to be necessary or appropriate to carry out the purposes and intent of the foregoing resolutions, such determination to be conclusively evidenced by the execution and delivery of such certificate, instrument, agreement, document or notice and taking of such action.

	
5.

	
The directors of Jet Subco are hereby authorized to revoke this resolution at any time prior to the Amalgamation becoming effective without further approval of the shareholders of Jet Subco and to determine not to proceed with the Amalgamation.

85

SCHEDULE C - JETLINES AMALGAMATION RESOLUTION

IT IS RESOLVED THAT:

	
1.

	
The amalgamation (the "Amalgamation") of Jet Metal Acquisition Corp. ("Jet Subco") and Canada Jetlines Ltd. ("Jetlines") upon substantially the terms and conditions set forth in the form of amalgamation agreement (the "Amalgamation Agreement") between Jet Metal Corp., Jet Subco and Jetlines dated April 12, 2016 be and is hereby approved.   

	
2.

	
The Amalgamation Agreement, as it may be amended in accordance with its terms, is hereby approved.

	
3.

	
The actions of the directors of Jetlines in connection with the Amalgamation are hereby approved.   

	
4.

	
Any one or more officers and directors of Jetlines is hereby authorized and directed for and on behalf of Jetlines to execute and deliver articles of amalgamation to the Director under the Canada Business Corporations Act and to execute and deliver for and in the name of and on behalf of Jetlines, whether under corporate seal or not, all such other certificates, instruments, agreements, documents and notices, and to take all such further actions that such person may determine to be necessary or appropriate to carry out the purposes and intent of the foregoing resolutions, such determination to be conclusively evidenced by the execution and delivery of such certificate, instrument, agreement, document or notice and taking of such action.

	
5.

	
The directors of Jetlines are hereby authorized to revoke this resolution at any time prior to the Amalgamation becoming effective without further approval of the shareholders of Jetlines and to determine not to proceed with the Amalgamation.

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SCHEDULE D - FORM OF JET VOTING AGREEMENT

THIS AGREEMENT is made as of ____________________, 2016

BETWEEN:

CANADA JETLINES LTD., a corporation incorporated under the laws of Canada ("Jetlines")

AND:

____________________________ (the "Securityholder")

RECITALS:

	1.	The Securityholder is the beneficial owner of, or has control or direction over, the Subject Securities (as defined herein).

	2.	The Securityholder understands that Jetlines, Jet Metal Corp. ("Jet") and Jet Metal Acquisition Corp. ("Jet Subco") are, concurrently with the execution and delivery of this Agreement, executing and delivering the Amalgamation Agreement.

	3.	This Agreement sets out the terms and conditions of the agreement of the Securityholder to abide by the covenants in respect of the Subject Securities and the other restrictions and covenants set forth herein.

NOW THEREFORE, in consideration of the mutual covenants in this Agreement and for other good and valuable consideration (the receipt and sufficiency of which are hereby acknowledged) the parties hereto agree as follows:

ARTICLE 1 - INTERPRETATION

	
1.1

	
Definitions

Capitalized terms used and not otherwise defined herein have the meanings ascribed thereto in the Amalgamation Agreement.  In this Agreement, including the recitals:

"Amalgamation Agreement" means the amalgamation agreement dated as of the date hereof between Jetlines, Jet and Jet Subco;

"Business Day" means any day, other than a Saturday, a Sunday or a statutory or civic holiday in Vancouver, British Columbia;

"Expiry Time" has the meaning ascribed thereto in Section 3.1;

"Notice" has the meaning ascribed thereto in Section 4.7;

"Subject Securities" means the Subject Shares and any Jet Options and Jet Warrants owned or controlled by the Securityholder;

87

 

"Subject Shares" means all Jet Shares owned or controlled by the Securityholder, which, for greater certainty, shall include any Jet Shares issuable upon the exercise, exchange or conversion of any Jet Options or Jet Warrants owned or controlled by the Securityholder which may be exercised, converted into or exchanged for Jet Shares and shall also include any and all distributions of cash, securities or other property made in respect of such Subject Shares on or after the date hereof other than distributions made in the ordinary course, and shall further include any Jet Shares acquired or over which control is acquired after the date hereof by the Securityholder; and

"Transfer" has the meaning ascribed thereto in Section 3.1(a).

	
1.2

	
Singular; Plural, etc.

In this Agreement, words importing the singular number include the plural and vice versa and words importing gender include the masculine, feminine and neuter genders.

	
1.3

	
Currency

Unless otherwise expressly stated, all references to currency herein shall be deemed to be references to Canadian currency.

	
1.4

	
Headings, etc.

The division of this Agreement into Articles, Sections and Schedules and the insertion of the recitals and headings are for convenience of reference only and shall not affect the construction or interpretation of this Agreement and, unless otherwise stated, all references in this Agreement or in the Schedules hereto to Articles, Sections and Schedules refer to Articles, Sections and Schedules of and to this Agreement or of the Schedules in which such reference is made, as applicable.

	
1.5

	
Date for any Action

In the event that any date on which any action is required to be taken hereunder by any of the parties is not a Business Day, such action shall be required to be taken on the next succeeding day which is a Business Day.

	
1.6

	
Governing Law

This Agreement shall be governed, including as to validity, interpretation and effect, by the laws of the Province of British Columbia and the laws of Canada applicable therein, and shall be construed and treated in all respects as a British Columbia contract. Each of the parties hereby irrevocably attorns to the non-exclusive jurisdiction of the Courts of the Province of British Columbia in respect of all matters arising under and in relation to this Agreement.

	
1.7

	
Incorporation of Schedules

The Schedules attached hereto and described below shall, for all purposes hereof, form an integral part of this Agreement.

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Schedule A – Subject Securities

ARTICLE 2 - REPRESENTATIONS AND WARRANTIES

	
2.1

	
Representations and Warranties of the Securityholder

The Securityholder represents and warrants to Jetlines (and acknowledges that Jetlines is relying on these representations and warranties in completing the transactions contemplated hereby and by the Amalgamation Agreement) the matters set out below:

	
(a)

	
the Securityholder has the legal capacity to execute and deliver this Agreement and to consummate the transactions contemplated hereby. This Agreement has been duly executed and delivered by the Securityholder and constitutes a valid and binding obligation of the Securityholder enforceable against it in accordance with its terms, subject to bankruptcy, insolvency and other Laws affecting the enforcement of creditors' rights generally and subject to the qualification that equitable remedies may only be granted in the discretion of a court of competent jurisdiction;

	
(b)

	
the Jet Shares, Jet Options and Jet Warrants as set forth in Schedule A, as applicable, represent all the securities of Jet beneficially owned, directly or indirectly, or controlled or directed by the Securityholder.  Other than the securities set forth in Schedule A, neither the Securityholder nor any of its Affiliates (i) owns beneficially, or exercises control or direction over, directly or indirectly, additional securities of Jet or any of its Affiliates or (ii) has any agreement or option, or right or privilege (whether by Law, pre-emptive or contractual) capable of becoming an agreement or option, for the purchase or acquisition by the Securityholder or any of its Affiliates to transfer to the Securityholder or any of its Affiliates of, additional securities of Jet or any of its Affiliates;

	
(c)

	
the Securityholder is, and will continue to be at the time of the Amalgamation, the sole beneficial owner of the Subject Securities, with good and marketable title thereto, free and clear of all encumbrances, liens, restrictions (other than resale, vesting or other similar restrictions), charges, claims and rights of others;

	
(d)

	
the Securityholder has the sole right to sell and vote (to the extent permitted by the attributes of such Subject Securities or pursuant to applicable Laws, regulation or policy) or direct the sale and voting of the Subject Securities;

	
(e)

	
no Person has any agreement or option, or any right or privilege (whether by Laws, pre-emptive or contractual) capable of becoming an agreement or option, for the purchase, acquisition or transfer of any of the Subject Securities or any interest therein or right thereto;

	
(f)

	
none of the Subject Securities is subject to any proxy, voting trust, vote pooling or other agreement with respect to the right to vote, call meetings of any of Jet's securityholders or give consents or approvals of any kind;

89

 

	
(g)

	
none of the execution and delivery by the Securityholder of this Agreement or the completion of the transactions contemplated hereby or the compliance by the Securityholder with the Securityholder's obligations hereunder will violate, contravene, result in any breach of, or be in conflict with, or constitute a default under, or create a state of facts which after notice or lapse of time or both would constitute a default under, any term or provision of: (i) any constating or governing documents, by-laws or resolutions of the Securityholder; (ii) any Contract to which the Securityholder is a party or by which the Securityholder or any of the property or assets of the Securityholder are bound; (iii) any judgment, decree, order or award of any Governmental Entity; or (iv) any applicable Laws;

	
(h)

	
no consent, waiver, approval, authorization, order, exemption, registration, licence or declaration of or by, or filing with, or notification to any Governmental Entity which has not been made or obtained is required to be made or obtained by the Securityholder in connection with the execution and delivery by the Securityholder and enforcement against the Securityholder of this Agreement or the consummation of any transactions provided for herein (provided that the Securityholder makes no representations or warranties with respect to the consents, waivers, approvals, authorizations or declarations of or by, or filings with, or notices to any Governmental Entities or other third parties on the part of Jetlines, Jet or Jet Subco necessary for the consummation of the transactions contemplated by the Amalgamation Agreement); and

	
(i)

	
there is no private or governmental action, suit, claim, arbitration, investigation or other proceeding in progress or pending before any Governmental Entity, or, to the knowledge of the Securityholder, threatened against the Securityholder or any of its Affiliates or any of their directors or officers (in their capacities as such) that, individually or in the aggregate, could adversely affect in any manner the Securityholder's ability to enter into this Agreement or perform its obligations hereunder or the title of the Securityholder to any of the Subject Securities.  There is no judgment, decree or order against the Securityholder or any of its Affiliates or any of their directors or officers (in their capacities as such) that could prevent, enjoin, alter, delay or adversely affect in any manner the ability of the Securityholder to enter into this Agreement, to perform its obligations under this Agreement or the title of the Securityholder to any of the Subject Securities.

	
2.2

	
Representations and Warranties of Jetlines

Jetlines represents and warrants to the Securityholder (and acknowledges that the Securityholder is relying on these representations and warranties in completing the transactions contemplated hereby and by the Amalgamation Agreement) the matters set out below:

	
(a)

	
Jetlines is a corporation incorporated or formed under the Laws of its jurisdiction and has all necessary corporate power, authority and capacity to enter into this Agreement and to carry out its obligations under this Agreement.  The execution and delivery of this Agreement and the consummation of the transactions contemplated by this Agreement have been duly authorized by all necessary

90

 

 

corporate action on the part of Jetlines. This Agreement constitutes a valid and binding obligation of Jetlines enforceable against it in accordance with its terms, subject to bankruptcy, insolvency and other Laws affecting the enforcement of creditors' rights generally and subject to the qualification that equitable remedies may only be granted in the discretion of a court of competent jurisdiction;

	
(b)

	
none of the execution and delivery by Jetlines of this Agreement or the completion of the transactions contemplated hereby or the compliance by Jetlines with Jetlines' obligations hereunder will violate, contravene, result in any breach of, or be in conflict with, or constitute a default under, or create a state of facts which after notice or lapse of time or both would constitute a default under, any term or provision of: (i) any constating or governing documents or resolutions of Jetlines; (ii) any Contract to which Jetlines is a party or by which Jetlines or any of the property or assets of Jetlines are bound; (iii) any judgment, decree, order or award of any Governmental Entity; or (iv) any applicable Laws;

	
(c)

	
there is no private or governmental action, suit, claim, arbitration, investigation or other proceeding in progress or pending before any Governmental Entity, or, to the knowledge of Jetlines, threatened against Jetlines or any of its Affiliates or any of their directors or officers (in their capacities as such) that, individually or in the aggregate, could adversely affect in any manner Jetlines' ability to enter into this Agreement or perform its obligations under this Agreement.  There is no judgment, decree or order against Jetlines or any of its Affiliates or any of their directors or officers (in their capacities as such) that could prevent, enjoin, alter, delay or adversely affect in any manner the ability of Jetlines to enter into this Agreement or to perform its obligations under this Agreement; and

	
(d)

	
no consent, waiver, approval, authorization, order, exemption, registration, licence or declaration of or by, or filing with, or notification to any Governmental Entity which has not been made or obtained is required to be made or obtained by Jetlines in connection with the execution and delivery by Jetlines and enforcement against Jetlines of this Agreement or the consummation of any transactions provided for herein, except for, in either case, for those specifically set forth in the Amalgamation Agreement with respect to the consummation of the Amalgamation.

ARTICLE 3 - COVENANTS

	
3.1

	
Covenants of the Securityholder

The Securityholder hereby irrevocably and unconditionally covenants with Jetlines that from the date of this Agreement until the earlier of (i) the termination of this Agreement in accordance with its terms and (ii) the Effective Time (such earlier time being the "Expiry Time"), the Securityholder shall:

	
(a)

	
not (A) sell, transfer, gift, assign, convey, pledge, hypothecate, encumber, option, grant a security interest in or otherwise dispose of any right or interest in

91

 

(including by way of deposit or tender under any take-over bid) (any such event, a "Transfer") any of the Subject Securities, other than the exercise, exchange or conversion of Jet Options or Jet Warrants in accordance with their terms for Jet Shares that will become subject to this Agreement as if they were Subject Shares owned by the Securityholder on the date hereof, or enter into any agreement, arrangement or understanding in connection therewith (whether by actual disposition or effective economic disposition due to cash settlement or otherwise), other than pursuant to the Amalgamation Agreement, without having first obtained the prior written consent of Jetlines, or (B) other than as set forth herein, grant any proxies or powers of attorney, deposit any Subject Securities into a voting trust, in any way transfer any of the voting rights associated with any of the Subject Securities, or enter into a voting agreement, understanding or arrangement with respect to the right to vote, call meetings of Jet Shareholders or give consents or approval of any kind with respect to any Subject Securities.

	
(b)

	
vote (or cause to be voted) all the Subject Securities at any meeting of any of the securityholders of Jetlines at which the Shareholder is entitled to vote, including without limitation the Jet Meeting, and in any action by written consent of the securityholders of Jet:

	
(i)

	
in favour of the approval, consent, ratification and adoption of the Jet Transaction Resolution and the transactions contemplated by the Amalgamation Agreement (and any actions required for the consummation of the transactions contemplated by the Amalgamation Agreement); and

	
(ii)

	
against any:

	
(A)

	
merger, reorganization, consolidation, amalgamation, arrangement, business combination, or share exchange, liquidation, dissolution, recapitalization, or similar transaction involving Jet;

	
(B)

	
sale, lease or transfer of any significant part of the assets of Jet;

	
(C)

	
Acquisition Proposal;

	
(D)

	
material change in the capitalization of Jet or the corporate structure or constating documents of Jet;

(other than the transactions contemplated by the Amalgamation Agreement, and any other agreement or transaction involving Jet or its Affiliates)

	
(E)

	
action that would reasonably be expected to impede, delay, interfere with, or discourage the transactions contemplated by the Amalgamation Agreement; and

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(F)

	
action that would result in a Jet Material Adverse Effect (other than the transactions contemplated by the Amalgamation Agreement).

In connection with the foregoing, subject to this Section 3.1(b), the Securityholder hereby irrevocably and unconditionally agrees to deposit a proxy, duly completed and executed in respect of all of the Subject Securities at least 10 days prior to the Jet Meeting, voting all such Subject Securities in favour of the Jet Transaction Resolution.  The Securityholder hereby agrees that neither it nor any person on its behalf will take any action to withdraw, amend or invalidate any proxy deposited by the Securityholder pursuant to this Agreement notwithstanding any statutory or other rights or otherwise which the Securityholder might have unless this Agreement is terminated in accordance with Section 4.1.

	
(c)

	
not, without the prior written consent of Jetlines, requisition or join in the requisition of any meeting of any of the securityholders of Jet for the purpose of considering any resolution.

	
(d)

	
not, directly or indirectly: (A) solicit, initiate, encourage or otherwise facilitate (including by way of entering into any agreement, arrangement or understanding) inquiries, proposals or offers from, or provide information to, any other person, entity or group (other than Jetlines) relating to any Acquisition Proposal, (B) participate in any discussions or negotiations regarding any Acquisition Proposal, or (C) accept or enter into, or publicly propose to accept or enter into, any letter of intent, agreement, arrangement or undertaking related to any Acquisition Proposal. Nothing hereunder shall prevent any shareholder, director or officer of the Securityholder who is a director or officer of Jet from doing any act or thing that such director or officer is properly obligated to do in such capacity, provided that such act or thing is permitted by and is done in compliance with the terms of the Amalgamation Agreement.

	
(e)

	
immediately: (A) cease and cause to be terminated any and all existing discussions and negotiations, if any, with any person or group or any agent or representative of such person or group before the date of this Agreement with respect to any Acquisition Proposal or potential Acquisition Proposal; and (B) notify Jetlines of any Acquisition Proposal or inquiry that could lead to an Acquisition Proposal of which the Securityholder or, to the knowledge of the Securityholder, any of the shareholders, directors or officers of the Securityholder becomes aware.  Such notification shall be made first orally and then in writing and shall include the identity of the person making such Acquisition Proposal or inquiry, a description of the material terms thereof, together with a copy of all documentation relating to such Acquisition Proposal or inquiry; provided however that such notification shall not be required if Jetlines has already notified Jet.

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(f)

	
waives any rights of appraisal or rights of dissent that the Securityholder may have arising from the transactions contemplated by the Amalgamation Agreement.

	
(g)

	
agrees to promptly notify Jetlines of any acquisitions by the Securityholder or any of its respective Affiliates of any securities of Jet, if any, after the date hereof, which, for greater certainty, shall include any Jet Options or Jet Warrants, and any Jet Shares issuable upon the exercise or conversion of any Jet Options or Jet Warrants owned or controlled by the Shareholder which may be exercised, converted into or exchanged for Jet Shares. Any such securities shall be subject to the terms of this Agreement as though they were Subject Securities owned by the Securityholder on the date hereof.

	
(h)

	
agrees to not: (A) exercise any securityholder rights or remedies available at common law or pursuant to applicable securities legislation; or (B) take any other action of any kind, in each case which might reasonably be regarded as likely to reduce the success of, or delay or interfere with the completion of, the transactions contemplated by the Amalgamation Agreement.

	
(i)

	
consents to: (A) details of this Agreement being set out in any information circular and court documents produced by Jet, Jetlines or any of their respective Affiliates in connection with the transactions contemplated by this Agreement and the Amalgamation Agreement; and (B) this Agreement being made publicly available, including by filing on SEDAR and if required or reasonably desirable, with the U.S. SEC.

	
(j)

	
except as required by applicable Law or applicable stock exchange requirements, the Securityholder shall not make any public announcement or statement with respect to the transactions contemplated herein or pursuant to the Amalgamation Agreement without the prior written approval of Jet.

	
3.2

	
Covenants of Jetlines

	
(a)

	
Jetlines hereby covenants to use its reasonable commercial efforts to consummate the transactions contemplated by the Amalgamation Agreement, in accordance with the terms thereof.

	
(b)

	
Jetlines hereby covenants to use its reasonable commercial efforts to assist Jet in effecting the Amalgamation and to successfully complete the Amalgamation in the manner contemplated by this Agreement and the Amalgamation Agreement.

ARTICLE 4 - GENERAL

	
4.1

	
Termination

This Agreement shall terminate and be of no further force or effect only upon the earliest of:

	
(a)

	
the written agreement of Jetlines and the Securityholder;

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(b)

	
the termination of the Amalgamation Agreement in accordance with its terms;

	
(c)

	
written notice by the Securityholder if:

	
(i)

	
Jetlines has not complied in all material respects with the covenants in Section 3.2; or

	
(ii)

	
Jetlines, without the prior written consent of the Securityholder, otherwise varies the terms of the Amalgamation Agreement in a manner that is materially adverse to the Securityholder;

	
(d)

	
the Effective Time; or

	
(e)

	
the Outside Date.

	
4.2

	
Time of the Essence

Any date, time or period referred to in this Agreement shall be of the essence, except to the extent to which the Securityholder and Jetlines agree in writing to vary any date, time or period, in which event the varied date, time or period shall be of the essence.

	
4.3

	
Equitable Relief

The parties agree that irreparable harm will occur for which money damages will not be an adequate remedy at Law in the event that any of the provisions of this Agreement are not performed by the Securityholder in accordance with their terms or are otherwise breached.  It is accordingly agreed that in the event of a breach or threatened breach of the provisions of this Agreement by the Securityholder, Jetlines shall be entitled to an injunction or injunctions and other equitable relief and shall be entitled to obtain an order or orders for specific performance as may be necessary to ensure that the Securityholder complies with and performs its obligations under this Agreement.  The Securityholder hereby agrees not to seek the posting of any security bond or other assurance in respect of such injunctive or other equitable relief.  Such remedies will not be the exclusive remedies for any breach of this Agreement and will be in addition to all other remedies available at Law or equity.

	
4.4

	
Capacity and Fiduciary Duties

Nothing herein shall restrict or limit the actions of any director or officer required to be taken in the discharge of his or her fiduciary duties as a director or officer of Jet or any subsidiary of Jet. Jetlines further hereby agrees that the Securityholder is making the agreement or understandings herein solely in its capacity as a securityholder of Jet and the provisions of this Agreement shall not be deemed or interpreted to bind the Securityholder or any of its affiliates, directors or officers in his or her capacity as a director or officer of Jet.  For greater certainty, nothing herein shall restrict any person from taking in good faith any actions, or in any way limit any actions that a person may take, necessary to discharge such person's fiduciary duties as a director or officer of Jet.

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4.5

	
Waiver; Amendment

Each party hereto agrees and confirms that any provision of this Agreement may be amended or waived if, and only if, such amendment or waiver is in writing and signed, in the case of an amendment, by the Securityholder and Jetlines or in the case of a waiver, by the party against whom the waiver is to be effective and no failure or delay by any party in exercising any right, power or privilege hereunder shall operate as a waiver thereof nor shall any single or partial exercise thereof preclude any other or further exercise.

	
4.6

	
Entire Agreement

This Agreement constitutes the entire agreement among the parties with respect to the subject matter hereof and supersedes all prior agreements and understandings among the parties with respect thereto.

	
4.7

	
Notices

Any notice, consent or approval required or permitted to be given in connection with this Agreement (in this Section referred to as a "Notice") shall be in writing and shall be sufficiently given if delivered (whether in person, by courier service or other personal method of delivery), or if transmitted by facsimile or e-mail:

	
(a)

	
if to Jetlines:

Canada Jetlines Ltd.

Room C4408, YVR International Terminal Bldg.

3211 Grant McConachie Way

Richmond, B.C.

V7B 0A4

Attention: Jim Scott, Chief Executive Officer

Facsimile: (604)

Email: jim.scott@jetlines.ca

with a copy (which shall not constitute notice) to:

Miller Thomson LLP

1000 – 840 Howe Street

Vancouver, British Columbia

V6Z 2M1

Attention: Kevin Sorochan

Facsimile: (604) 643-1200

Email: ksorochan@millerthomson.com

Any Notice delivered or transmitted to a party as provided above shall be deemed to have been given and received on the day it is delivered or transmitted, provided that it is delivered or transmitted on a Business Day prior to 5:00 p.m. local time in the place of delivery or receipt.  If

96

 

the Notice is delivered or transmitted after 5:00 p.m. local time or if the day is not a Business Day, then the Notice shall be deemed to have been given and received on the next Business Day.

Either party hereto may, from time to time, change its address by giving Notice to the other party in accordance with the provisions of this Section.

	
4.8

	
Severability

If, in any jurisdiction, any provision of this Agreement or its application to any Party or circumstance is restricted, prohibited or unenforceable, such provision shall, as to such jurisdiction, be ineffective only to the extent of such restriction, prohibition or unenforceability without invalidating the remaining provisions of this Agreement and without affecting the validity or enforceability of such provision in any other jurisdiction or without affecting its application to other parties or circumstances.  Upon such determination that any term or other provision is invalid, illegal or incapable of being enforced, the parties hereto shall negotiate in good faith to modify this Agreement so as to effect the original intent of the parties as closely as possible in a mutually acceptable manner in order that the terms of this Agreement remain as originally contemplated to the fullest extent possible.

	
4.9

	
Successors and Assigns

The provisions of this Agreement shall be binding upon and enure to the benefit of the parties hereto and their respective successors, permitted assigns and legal personal representatives, provided that no party may assign, delegate or otherwise transfer any of its rights, interests or obligations under this Agreement without the prior written consent of the other parties hereto, except that Jetlines may assign, delegate or otherwise transfer any of its rights, interests or obligations under this Agreement to an Affiliate without reducing its own obligations hereunder without the consent of the Securityholder.

	
4.10

	
Expenses

Each party shall pay all costs and expenses (including the fees and disbursements of legal counsel and other advisers) it incurs in connection with the negotiation, preparation and execution of this Agreement and the transactions contemplated by this Agreement.

	
4.11

	
Independent Legal Advice

Each of the parties hereby acknowledges that it has been afforded the opportunity to obtain independent legal advice and confirms by the execution of this Agreement that they have either done so or waived their right to do so in connection with the entering into of this Agreement.

	
4.12

	
Further Assurances

The parties hereto shall, with reasonable diligence, do all things and provide all such reasonable assurances as may be required to consummate the transactions contemplated by this Agreement, and each party shall provide such further documents or instruments required by the other party as may be reasonably necessary or desirable to effect the purpose of this Agreement and carry out its provisions, whether before or after the Effective Time.

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4.13

	
Execution and Delivery

This Agreement may be executed by the parties in counterparts and may be executed and delivered by facsimile and all the counterparts and facsimiles together constitute one and the same agreement.

[Remainder of page left intentionally blank.]

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IN WITNESS OF WHICH the parties have executed this Agreement.

	 	 	
CANADA JETLINES LTD.

	
By:

	 
	 	
Name:

	 	
Title:

	 	 

This Agreement has been agreed and accepted as of the date first set out above.

	
 

Witness

	
 

Name:

	 	 Title

99

SCHEDULE "A"

TO JET VOTING AGREEMENT

	
Registered Owner

	
Beneficial Owner

	
Jet Shares

	
Jet Options

	
Jet Warrants

	 	 	 	 	 
	 	 	 	 	 

100

 

SCHEDULE E - FORM OF JETLINES VOTING AGREEMENT

THIS AGREEMENT is made as of ____________________, 2016

BETWEEN:

JET METAL CORP., a corporation incorporated under the laws of British Columba ("Jet")

AND:

____________________________ (the "Securityholder")

RECITALS:

	1.	The Securityholder is the beneficial owner of, or has control or direction over, the Subject Securities (as defined herein).

	2.	The Securityholder understands that Jet, Jet Metal Acquistion Corp. ("Jet Subco") and Canada Jetlines Ltd. ("Jetlines") are, concurrently with the execution and delivery of this Agreement, executing and delivering the Amalgamation Agreement.

	3.	This Agreement sets out the terms and conditions of the agreement of the Securityholder to abide by the covenants in respect of the Subject Securities and the other restrictions and covenants set forth herein.

NOW THEREFORE, in consideration of the mutual covenants in this Agreement and for other good and valuable consideration (the receipt and sufficiency of which are hereby acknowledged) the parties hereto agree as follows:

ARTICLE 1 - INTERPRETATION

	
1.1

	
Definitions

Capitalized terms used and not otherwise defined herein have the meanings ascribed thereto in the Amalgamation Agreement.  In this Agreement, including the recitals:

"Amalgamation Agreement" means the amalgamation agreement dated as of the date hereof between Jetlines, Jet and Jet Subco;

"Business Day" means any day, other than a Saturday, a Sunday or a statutory or civic holiday in Vancouver, British Columbia;

"Expiry Time" has the meaning ascribed thereto in Section 3.1;

"Notice" has the meaning ascribed thereto in Section 4.7;

"Subject Securities" means the Subject Shares and any Jetlines Options and Jetlines Warrants owned or controlled by the Securityholder;

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"Subject Shares" means all Jetlines Shares owned or controlled by the Securityholder, which, for greater certainty, shall include any Jetlines Shares issuable upon the exercise, exchange or conversion of any Jetlines Options or Jetlines Warrants owned or controlled by the Securityholder which may be exercised, converted into or exchanged for Jetlines Shares and shall also include any and all distributions of cash, securities or other property made in respect of such Subject Shares on or after the date hereof other than distributions made in the ordinary course, and shall further include any Jetlines Shares acquired or over which control is acquired after the date hereof by the Securityholder; and

"Transfer" has the meaning ascribed thereto in Section 3.1(a).

	
1.2

	
Singular; Plural, etc.

In this Agreement, words importing the singular number include the plural and vice versa and words importing gender include the masculine, feminine and neuter genders.

	
1.3

	
Currency

Unless otherwise expressly stated, all references to currency herein shall be deemed to be references to Canadian currency.

	
1.4

	
Headings, etc.

The division of this Agreement into Articles, Sections and Schedules and the insertion of the recitals and headings are for convenience of reference only and shall not affect the construction or interpretation of this Agreement and, unless otherwise stated, all references in this Agreement or in the Schedules hereto to Articles, Sections and Schedules refer to Articles, Sections and Schedules of and to this Agreement or of the Schedules in which such reference is made, as applicable.

	
1.5

	
Date for any Action

In the event that any date on which any action is required to be taken hereunder by any of the parties is not a Business Day, such action shall be required to be taken on the next succeeding day which is a Business Day.

	
1.6

	
Governing Law

This Agreement shall be governed, including as to validity, interpretation and effect, by the laws of the Province of British Columbia and the laws of Canada applicable therein, and shall be construed and treated in all respects as a British Columbia contract. Each of the parties hereby irrevocably attorns to the non-exclusive jurisdiction of the Courts of the Province of British Columbia in respect of all matters arising under and in relation to this Agreement.

	
1.7

	
Incorporation of Schedules

The Schedules attached hereto and described below shall, for all purposes hereof, form an integral part of this Agreement.

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Schedule A – Subject Securities

ARTICLE 2 - REPRESENTATIONS AND WARRANTIES

	
2.1

	
Representations and Warranties of the Securityholder

The Securityholder represents and warrants to Jet (and acknowledges that Jet is relying on these representations and warranties in completing the transactions contemplated hereby and by the Amalgamation Agreement) the matters set out below:

	
(a)

	
the Securityholder has the legal capacity to execute and deliver this Agreement and to consummate the transactions contemplated hereby. This Agreement has been duly executed and delivered by the Securityholder and constitutes a valid and binding obligation of the Securityholder enforceable against it in accordance with its terms, subject to bankruptcy, insolvency and other Laws affecting the enforcement of creditors' rights generally and subject to the qualification that equitable remedies may only be granted in the discretion of a court of competent jurisdiction;

	
(b)

	
the Jetlines Shares, Jetlines Options and Jetlines Warrants as set forth in Schedule A, as applicable, represent all the securities of Jetlines beneficially owned, directly or indirectly, or controlled or directed by the Securityholder.  Other than the securities set forth in Schedule A, neither the Securityholder nor any of its Affiliates (i) owns beneficially, or exercises control or direction over, directly or indirectly, additional securities of Jetlines or any of its Affiliates or (ii) has any agreement or option, or right or privilege (whether by Law, pre-emptive or contractual) capable of becoming an agreement or option, for the purchase or acquisition by the Securityholder or any of its Affiliates to transfer to the Securityholder or any of its Affiliates of, additional securities of Jetlines or any of its Affiliates;

	
(c)

	
the Securityholder is, and will continue to be at the time of the Amalgamation, the sole beneficial owner of the Subject Securities, with good and marketable title thereto, free and clear of all encumbrances, liens, restrictions (other than resale, vesting or other similar restrictions), charges, claims and rights of others;

	
(d)

	
the Securityholder has the sole right to sell and vote (to the extent permitted by the attributes of such Subject Securities or pursuant to applicable Laws, regulation or policy) or direct the sale and voting of the Subject Securities;

	
(e)

	
no Person has any agreement or option, or any right or privilege (whether by Laws, pre-emptive or contractual) capable of becoming an agreement or option, for the purchase, acquisition or transfer of any of the Subject Securities or any interest therein or right thereto, except Jet pursuant to the Amalgamation;

	
(f)

	
none of the Subject Securities is subject to any proxy, voting trust, vote pooling or other agreement with respect to the right to vote, call meetings of any of Jetlines's securityholders or give consents or approvals of any kind;

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(g)

	
none of the execution and delivery by the Securityholder of this Agreement or the completion of the transactions contemplated hereby or the compliance by the Securityholder with the Securityholder's obligations hereunder will violate, contravene, result in any breach of, or be in conflict with, or constitute a default under, or create a state of facts which after notice or lapse of time or both would constitute a default under, any term or provision of: (i) any constating or governing documents, by-laws or resolutions of the Securityholder; (ii) any Contract to which the Securityholder is a party or by which the Securityholder or any of the property or assets of the Securityholder are bound; (iii) any judgment, decree, order or award of any Governmental Entity; or (iv) any applicable Laws;

	
(h)

	
no consent, waiver, approval, authorization, order, exemption, registration, licence or declaration of or by, or filing with, or notification to any Governmental Entity which has not been made or obtained is required to be made or obtained by the Securityholder in connection with the execution and delivery by the Securityholder and enforcement against the Securityholder of this Agreement or the consummation of any transactions provided for herein (provided that the Securityholder makes no representations or warranties with respect to the consents, waivers, approvals, authorizations or declarations of or by, or filings with, or notices to any Governmental Entities or other third parties on the part of Jetlines, Jet or Jet Subco necessary for the consummation of the transactions contemplated by the Amalgamation Agreement); and

	
(i)

	
there is no private or governmental action, suit, claim, arbitration, investigation or other proceeding in progress or pending before any Governmental Entity, or, to the knowledge of the Securityholder, threatened against the Securityholder or any of its Affiliates or any of their directors or officers (in their capacities as such) that, individually or in the aggregate, could adversely affect in any manner the Securityholder's ability to enter into this Agreement or perform its obligations hereunder or the title of the Securityholder to any of the Subject Securities.  There is no judgment, decree or order against the Securityholder or any of its Affiliates or any of their directors or officers (in their capacities as such) that could prevent, enjoin, alter, delay or adversely affect in any manner the ability of the Securityholder to enter into this Agreement, to perform its obligations under this Agreement or the title of the Securityholder to any of the Subject Securities.

	
2.2

	
Representations and Warranties of Jet

Jet represents and warrants to the Securityholder (and acknowledges that the Securityholder is relying on these representations and warranties in completing the transactions contemplated hereby and by the Amalgamation Agreement) the matters set out below:

	
(a)

	
Jet is a corporation incorporated or formed under the Laws of its jurisdiction and has all necessary corporate power, authority and capacity to enter into this Agreement and to carry out its obligations under this Agreement.  The execution and delivery of this Agreement and the consummation of the transactions contemplated by this Agreement have been duly authorized by all necessary

104

 

corporate action on the part of Jet. This Agreement constitutes a valid and binding obligation of Jet enforceable against it in accordance with its terms, subject to bankruptcy, insolvency and other Laws affecting the enforcement of creditors' rights generally and subject to the qualification that equitable remedies may only be granted in the discretion of a court of competent jurisdiction;

	
(b)

	
none of the execution and delivery by Jet of this Agreement or the completion of the transactions contemplated hereby or the compliance by Jet with Jet's obligations hereunder will violate, contravene, result in any breach of, or be in conflict with, or constitute a default under, or create a state of facts which after notice or lapse of time or both would constitute a default under, any term or provision of: (i) any constating or governing documents or resolutions of Jet; (ii) any Contract to which Jet is a party or by which Jet or any of the property or assets of Jet are bound; (iii) any judgment, decree, order or award of any Governmental Entity; or (iv) any applicable Laws;

	
(c)

	
there is no private or governmental action, suit, claim, arbitration, investigation or other proceeding in progress or pending before any Governmental Entity, or, to the knowledge of Jet, threatened against Jet or any of its Affiliates or any of their directors or officers (in their capacities as such) that, individually or in the aggregate, could adversely affect in any manner Jet's ability to enter into this Agreement or perform its obligations under this Agreement.  There is no judgment, decree or order against Jet or any of its Affiliates or any of their directors or officers (in their capacities as such) that could prevent, enjoin, alter, delay or adversely affect in any manner the ability of Jet to enter into this Agreement or to perform its obligations under this Agreement; and

	
(d)

	
no consent, waiver, approval, authorization, order, exemption, registration, licence or declaration of or by, or filing with, or notification to any Governmental Entity which has not been made or obtained is required to be made or obtained by Jet in connection with the execution and delivery by Jet and enforcement against Jet of this Agreement or the consummation of any transactions provided for herein, except for, in either case, for those specifically set forth in the Amalgamation Agreement with respect to the consummation of the Amalgamation.

ARTICLE 3- COVENANTS

	
3.1

	
Covenants of the Securityholder

The Securityholder hereby irrevocably and unconditionally covenants with Jet that from the date of this Agreement until the earlier of (i) the termination of this Agreement in accordance with its terms and (ii) the Effective Time (such earlier time being the "Expiry Time"), the Securityholder shall:

	
(a)

	
not (A) sell, transfer, gift, assign, convey, pledge, hypothecate, encumber, option, grant a security interest in or otherwise dispose of any right or interest in

105

 

(including by way of deposit or tender under any take-over bid) (any such event, a "Transfer") any of the Subject Securities, other than the exercise, exchange or conversion of Jetlines Options or Jetlines Warrants in accordance with their terms for Jetlines Shares that will become subject to this Agreement as if they were Subject Shares owned by the Securityholder on the date hereof, or enter into any agreement, arrangement or understanding in connection therewith (whether by actual disposition or effective economic disposition due to cash settlement or otherwise), other than pursuant to the Amalgamation Agreement, without having first obtained the prior written consent of Jet, or (B) other than as set forth herein, grant any proxies or powers of attorney, deposit any Subject Securities into a voting trust, in any way transfer any of the voting rights associated with any of the Subject Securities, or enter into a voting agreement, understanding or arrangement with respect to the right to vote, call meetings of Jetlines Shareholders or give consents or approval of any kind with respect to any Subject Securities.

	
(b)

	
vote (or cause to be voted) all the Subject Securities at any meeting of any of the securityholders of Jetlines at which the Shareholder is entitled to vote, including without limitation the Jetlines Meeting, and in any action by written consent of the securityholders of Jetlines:

	
(i)

	
in favour of the approval, consent, ratification and adoption of the Jetlines Amalgamation Resolution and the transactions contemplated by the Amalgamation Agreement (and any actions required for the consummation of the transactions contemplated by the Amalgamation Agreement); and

	
(ii)

	
against any:

	
(A)

	
merger, reorganization, consolidation, amalgamation, arrangement, business combination, or share exchange, liquidation, dissolution, recapitalization, or similar transaction involving Jetlines;

	
(B)

	
sale, lease or transfer of any significant part of the assets of Jetlines;

	
(C)

	
Acquisition Proposal;

	
(D)

	
material change in the capitalization of Jetlines or the corporate structure or constating documents of Jetlines;

(other than the transactions contemplated by the Amalgamation Agreement, and any other agreement or transaction involving Jet or its Affiliates)

	
(E)

	
action that would reasonably be expected to impede, delay, interfere with, or discourage the transactions contemplated by the Amalgamation Agreement; and

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(F)

	
action that would result in a Jetlines Material Adverse Effect (other than the transactions contemplated by the Amalgamation Agreement).

In connection with the foregoing, subject to this Section 3.1(b), the Securityholder hereby irrevocably and unconditionally agrees to deposit a proxy, duly completed and executed in respect of all of the Subject Securities at least 10 days prior to the Jetlines Meeting, voting all such Subject Securities in favour of the Jetlines Amalgamation Resolution.  The Securityholder hereby agrees that neither it nor any person on its behalf will take any action to withdraw, amend or invalidate any proxy deposited by the Securityholder pursuant to this Agreement notwithstanding any statutory or other rights or otherwise which the Securityholder might have unless this Agreement is terminated in accordance with Section 4.1.

	
(c)

	
not, without the prior written consent of Jet, requisition or join in the requisition of any meeting of any of the securityholders of Jetlines for the purpose of considering any resolution.

	
(d)

	
not, directly or indirectly: (A) solicit, initiate, encourage or otherwise facilitate (including by way of entering into any agreement, arrangement or understanding) inquiries, proposals or offers from, or provide information to, any other person, entity or group (other than Jet) relating to any Acquisition Proposal, (B) participate in any discussions or negotiations regarding any Acquisition Proposal, or (C) accept or enter into, or publicly propose to accept or enter into, any letter of intent, agreement, arrangement or undertaking related to any Acquisition Proposal. Nothing hereunder shall prevent any shareholder, director or officer of the Securityholder who is a director or officer of Jetlines from doing any act or thing that such director or officer is properly obligated to do in such capacity, provided that such act or thing is permitted by and is done in compliance with the terms of the Amalgamation Agreement.

	
(e)

	
immediately: (A) cease and cause to be terminated any and all existing discussions and negotiations, if any, with any person or group or any agent or representative of such person or group before the date of this Agreement with respect to any Acquisition Proposal or potential Acquisition Proposal; and (B) notify Jet of any Acquisition Proposal or inquiry that could lead to an Acquisition Proposal of which the Securityholder or, to the knowledge of the Securityholder, any of the shareholders, directors or officers of the Securityholder becomes aware.  Such notification shall be made first orally and then in writing and shall include the identity of the person making such Acquisition Proposal or inquiry, a description of the material terms thereof, together with a copy of all documentation relating to such Acquisition Proposal or inquiry; provided however that such notification shall not be required if Jetlines has already notified Jet.

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(f)

	
waives any rights of appraisal or rights of dissent that the Securityholder may have arising from the transactions contemplated by the Amalgamation Agreement.

	
(g)

	
agrees to promptly notify Jet of any acquisitions by the Securityholder or any of its respective Affiliates of any securities of Jetlines, if any, after the date hereof, which, for greater certainty, shall include any Jetlines Options or Jetlines Warrants, and any Jetlines Shares issuable upon the exercise or conversion of any Jetlines Options or Jetlines Warrants owned or controlled by the Shareholder which may be exercised, converted into or exchanged for Jetlines Shares. Any such securities shall be subject to the terms of this Agreement as though they were Subject Securities owned by the Securityholder on the date hereof.

	
(h)

	
agrees to not: (A) exercise any securityholder rights or remedies available at common law or pursuant to applicable securities legislation; or (B) take any other action of any kind, in each case which might reasonably be regarded as likely to reduce the success of, or delay or interfere with the completion of, the transactions contemplated by the Amalgamation Agreement.

	
(i)

	
consents to: (A) details of this Agreement being set out in any information circular and court documents produced by Jetlines, Jet or any of their respective Affiliates in connection with the transactions contemplated by this Agreement and the Amalgamation Agreement; and (B) this Agreement being made publicly available, including by filing on SEDAR and if required or reasonably desirable, with the U.S. SEC.

	
(j)

	
except as required by applicable Law or applicable stock exchange requirements, the Securityholder shall not make any public announcement or statement with respect to the transactions contemplated herein or pursuant to the Amalgamation Agreement without the prior written approval of Jet.

	
3.2

	
Covenants of Jet

	
(a)

	
Jet hereby covenants to use its reasonable commercial efforts to consummate the transactions contemplated by the Amalgamation Agreement, in accordance with the terms thereof.

	
(b)

	
Jet hereby covenants to use its reasonable commercial efforts to assist Jetlines in effecting the Amalgamation and to cause Jet Subco to successfully complete the Amalgamation in the manner contemplated by this Agreement and the Amalgamation Agreement.

ARTICLE 4 - GENERAL

	
4.1

	
Termination

This Agreement shall terminate and be of no further force or effect only upon the earliest of:

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(a)

	
the written agreement of Jet and the Securityholder;

	
(b)

	
the termination of the Amalgamation Agreement in accordance with its terms;

	
(c)

	
written notice by the Securityholder if:

	
(i)

	
Jet has not complied in all material respects with the covenants in Section 3.2; or

	
(ii)

	
Jet, without the prior written consent of the Securityholder, otherwise varies the terms of the Amalgamation Agreement in a manner that is materially adverse to the Securityholder;

	
(d)

	
the Effective Time; or

	
(e)

	
the Outside Date.

	
4.2

	
Time of the Essence

Any date, time or period referred to in this Agreement shall be of the essence, except to the extent to which the Securityholder and Jet agree in writing to vary any date, time or period, in which event the varied date, time or period shall be of the essence.

	
4.3

	
Equitable Relief

The parties agree that irreparable harm will occur for which money damages will not be an adequate remedy at Law in the event that any of the provisions of this Agreement are not performed by the Securityholder in accordance with their terms or are otherwise breached.  It is accordingly agreed that in the event of a breach or threatened breach of the provisions of this Agreement by the Securityholder, Jet shall be entitled to an injunction or injunctions and other equitable relief and shall be entitled to obtain an order or orders for specific performance as may be necessary to ensure that the Securityholder complies with and performs its obligations under this Agreement.  The Securityholder hereby agrees not to seek the posting of any security bond or other assurance in respect of such injunctive or other equitable relief.  Such remedies will not be the exclusive remedies for any breach of this Agreement and will be in addition to all other remedies available at Law or equity.

	
4.4

	
Capacity and Fiduciary Duties

Nothing herein shall restrict or limit the actions of any director or officer required to be taken in the discharge of his or her fiduciary duties as a director or officer of Jetlines or any subsidiary of Jetlines. Jet further hereby agrees that the Securityholder is making the agreement or understandings herein solely in its capacity as a securityholder of Jetlines and the provisions of this Agreement shall not be deemed or interpreted to bind the Securityholder or any of its affiliates, directors or officers in his or her capacity as a director or officer of Jetlines.  For greater certainty, nothing herein shall restrict any person from taking in good faith any actions, or in any way limit any actions that a person may take, necessary to discharge such person's fiduciary duties as a director or officer of Jetlines.

109

 

	
4.5

	
Waiver; Amendment

Each party hereto agrees and confirms that any provision of this Agreement may be amended or waived if, and only if, such amendment or waiver is in writing and signed, in the case of an amendment, by the Securityholder and Jet or in the case of a waiver, by the party against whom the waiver is to be effective and no failure or delay by any party in exercising any right, power or privilege hereunder shall operate as a waiver thereof nor shall any single or partial exercise thereof preclude any other or further exercise.

	
4.6

	
Entire Agreement

This Agreement constitutes the entire agreement among the parties with respect to the subject matter hereof and supersedes all prior agreements and understandings among the parties with respect thereto.

	
4.7

	
Notices

Any notice, consent or approval required or permitted to be given in connection with this Agreement (in this Section referred to as a "Notice") shall be in writing and shall be sufficiently given if delivered (whether in person, by courier service or other personal method of delivery), or if transmitted by facsimile or e-mail:

	
(a)

	
if to Jet:

Jet Metal Corp.

1240 – 1140 West Pender St.

Vancouver, B.C.

V6E 4G1

Attention: Mark J. Morabito, Chief Executive Officer

Facsimile: (604) 681-8039

Email: mmorabito@kingandbay.com

with a copy (which shall not constitute notice) to:

King & Bay West Management Corp.

1240 – 1140 West Pender St.

Vancouver, B.C.

V6E 4G1

Attention: Olen J. Aasen, Executive VP & General Counsel

Facsimile: (604) 681-8039

Email: oaasen@kingandbay.com

	
(b)

	
if to the Securityholder:

110

 

____________________________

____________________________

 ____________________________

Attention: ____________________________

Facsimile: ____________________________

Email: ____________________________

Any Notice delivered or transmitted to a party as provided above shall be deemed to have been given and received on the day it is delivered or transmitted, provided that it is delivered or transmitted on a Business Day prior to 5:00 p.m. local time in the place of delivery or receipt.  If the Notice is delivered or transmitted after 5:00 p.m. local time or if the day is not a Business Day, then the Notice shall be deemed to have been given and received on the next Business Day.

Either party hereto may, from time to time, change its address by giving Notice to the other party in accordance with the provisions of this Section.

	
4.8

	
Severability

If, in any jurisdiction, any provision of this Agreement or its application to any Party or circumstance is restricted, prohibited or unenforceable, such provision shall, as to such jurisdiction, be ineffective only to the extent of such restriction, prohibition or unenforceability without invalidating the remaining provisions of this Agreement and without affecting the validity or enforceability of such provision in any other jurisdiction or without affecting its application to other parties or circumstances.  Upon such determination that any term or other provision is invalid, illegal or incapable of being enforced, the parties hereto shall negotiate in good faith to modify this Agreement so as to effect the original intent of the parties as closely as possible in a mutually acceptable manner in order that the terms of this Agreement remain as originally contemplated to the fullest extent possible.

	
4.9

	
Successors and Assigns

The provisions of this Agreement shall be binding upon and enure to the benefit of the parties hereto and their respective successors, permitted assigns and legal personal representatives, provided that no party may assign, delegate or otherwise transfer any of its rights, interests or obligations under this Agreement without the prior written consent of the other parties hereto, except that Jet may assign, delegate or otherwise transfer any of its rights, interests or obligations under this Agreement to an Affiliate without reducing its own obligations hereunder without the consent of the Securityholder.

	
4.10

	
Expenses

Each party shall pay all costs and expenses (including the fees and disbursements of legal counsel and other advisers) it incurs in connection with the negotiation, preparation and execution of this Agreement and the transactions contemplated by this Agreement.

111

 

	
4.11

	
Independent Legal Advice

Each of the parties hereby acknowledges that it has been afforded the opportunity to obtain independent legal advice and confirms by the execution of this Agreement that they have either done so or waived their right to do so in connection with the entering into of this Agreement.

	
4.12

	
Further Assurances

The parties hereto shall, with reasonable diligence, do all things and provide all such reasonable assurances as may be required to consummate the transactions contemplated by this Agreement, and each party shall provide such further documents or instruments required by the other party as may be reasonably necessary or desirable to effect the purpose of this Agreement and carry out its provisions, whether before or after the Effective Time.

	
4.13

	
Execution and Delivery

This Agreement may be executed by the parties in counterparts and may be executed and delivered by facsimile and all the counterparts and facsimiles together constitute one and the same agreement.

[Remainder of page left intentionally blank.]

112

 

IN WITNESS OF WHICH the parties have executed this Agreement.

	 	 	
JET METAL CORP.

	
By:

	 
	 	
Name:

	 	
Title:

	 	 

This Agreement has been agreed and accepted as of the date first set out above.

	
 

Witness

	
 

Name:

	 	
Title:

 

113

 

SCHEDULE "A"

TO JETLINES VOTING AGREEMENT

	
Registered Owner

	
Beneficial Owner

	
Jetlines Options

	
Jetlines Shares

	
Jetlines Warrants

	
Jim Scott

	
Jim Scott

	
 

	
1,266,668

	
82,500

	
Dix Lawson

	
Dix Lawson

	 	
683,334.00

	
35,000

	
Don Sorochan

	
Don Sorochan

	
 

	
60,000

	
30,000

	
John Sutherland

	
John Sutherland

	 	
15,000

	
7,500

114

 

 

SCHEDULE F - ARTICLES OF AMALGAMATION

See attached.

115

 

116

 

 

Canada Jetlines Operations Ltd. Articles of Amalgamation

Schedule 1 and Schedule 2

SCHEDULE 1

CLASSES OF SHARES

The authorized capital of the Corporation consists of the following:

	
A.

	
An unlimited number of Variable Voting Shares, which class of shares shall have attached thereto the rights, privileges, restrictions and conditions set forth below;

	
B.

	
An unlimited number of Common Voting Shares, which class of shares shall have attached thereto the rights, privileges, restrictions and conditions set forth below;

ARTICLE 1

INTERPRETATION

1.1 Definitions

For purposes of the Articles, the following terms have the following meanings:

	
a)

	
"Aggregate Votes" means the aggregate of the votes attached to all Voting Shares of the Corporation that may ordinarily be cast to elect directors of the Corporation;

	
b)

	
"Canadian" shall have the meaning set forth in Subsection 55(1) of the CTA or as specified in any regulation made thereunder, as the same may be amended, supplemented or replaced, from time to time;

	
c)

	
"CBCA" means the Canada Business Corporations Act, S.C. 1996, c.10;

	
d)

	
"CBCA Regulations" means any regulations promulgated from time to time under the CBCA;

	
e)

	
"Common Voting Share" means the common voting shares of the share capital of the Corporation;

	
f)

	
"corporation" includes a body corporate, partnership and unincorporated organization;

	
g)

	
"CTA" means the Canada Transportation Act, S.C. 1996, Ch. 10;

	
h)

	
"person" includes an individual, corporation, association, entity, government or agency thereof, trustee, executor, administrator and other legal representative;

	
i)

	
"Transfer Agent" means the transfer agent and the registrar of the Voting Shares of the Corporation;

	
j)

	
"Variable Voting Share" means the variable voting shares of the share capital of the Corporation; and

	
k)

	
"Voting Share" means the Variable Voting Shares and the Common Voting Shares of the share capital of the Corporation and includes a security currently convertible into such a share and currently exercisable options and rights to acquire such shares or such a convertible security

1.2 Control

For purposes of these Articles,

1.2.1 a body corporate is controlled by a person if:

	
a)

	
securities of the body corporate to which are attached more than fifty percent (50%) of the votes that may be cast to elect directors of the body corporate are held, otherwise than by way of security only, by or for the benefit of that person; and

	
b)

	
the votes attached to those securities are sufficient, if exercised, to elect a majority of the directors of the body corporate; and

 

 

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1.2.2 a partnership or unincorporated organization is controlled by a person if an ownership interest therein representing more than fifty percent (50%) of the assets of the partnership or organization is held, otherwise than by way of security only, by or for the benefit of that person.

1.3 Undefined Terms

All terms used herein that are not defined herein shall have the meanings ascribed thereto in the CBCA. Any provision herein shall be read so as to be consistent with the CBCA.

ARTICLE 2

VARIABLE VOTING SHARES

Subject to the rights, privileges, restrictions and conditions which attach to any other class of shares, the Variable Voting Shares shall, as a class, have the following rights, privileges, restrictions and conditions:

2.1 Voting

The holders of the Variable Voting Shares shall be entitled to receive notice of, and to attend and vote at, all meetings of the shareholders of the Corporation, except where the holders of a specified class are entitled to vote separately as a class as provided in the CBCA.

The Variable Voting Shares shall carry one vote per Variable Voting Share, unless:

	2.1.1	the number of issued and outstanding Variable Voting Shares exceeds twenty-five percent (25%) of the total number of all issued and outstanding Voting Shares (or any higher percentage that the Governor in Council may specify pursuant to the CTA); or

	2.1.2	the total number of votes cast by or on behalf of holders of Variable Voting Shares at any meeting exceeds twenty-five percent (25%) (or any higher percentage that the Governor in Council may specify pursuant to the CTA) of the total number of votes that may be cast at such meeting.

If either of the above-noted thresholds is surpassed at any time, the vote attached to each Variable Voting Share will decrease automatically and without further act or formality to equal the maximum permitted vote per Variable Voting Share. Under the circumstance described in subparagraph 2.1.1 above, the Variable Voting Shares as a class cannot carry more than twenty-five percent (25%) or any higher percentage that the Governor in Council may specify - pursuant to the CTA, of the Aggregate Votes attached to all issued and outstanding Voting Shares of the Corporation. Under the circumstance described in subparagraph 2.1.2 above, the Variable Voting Shares as a class cannot, for a given shareholders meeting, carry more than twenty-five percent (25%) (or any higher percentage that the Governor in Council may specify pursuant to the CTA) of the total number of votes that can be exercised at the meeting.

2.2 Dividends

Subject to the rights, privileges, restrictions and conditions attached to any other class of shares of the Corporation ranking prior to the Variable Voting Shares, the holders of Variable Voting Shares shall be entitled to receive any dividend declared by the directors of the Corporation at the times and for the amounts that the Board of Directors may, from time to time, determine. The Variable Voting Shares and the Common Voting Shares shall rank equally as to dividends on a share-for-share basis, and all dividends declared in any fiscal year of the Corporation shall be declared in equal or equivalent amounts per share on all Variable Voting Shares and Common Voting Shares then outstanding, without preference or distinction.

2.3 Subdivision or Consolidation

No subdivision or consolidation of the Variable Voting Shares shall occur unless, simultaneously, the Variable Voting Shares, the Common Voting Shares and the Non-Voting Shares are subdivided or consolidated in the

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Schedule 1 and Schedule 2

same manner, so as to maintain and preserve the relative rights of the holders of the shares of each of the said classes.

2.4 Liquidation, Dissolution or Winding-up

Subject to the rights, privileges, restrictions and conditions attaching to any other class of shares of the Corporation ranking prior to the Variable Voting Shares, in the case of liquidation, dissolution or winding-up of the Corporation or other distribution of the Corporation's assets among its shareholders for the purpose of winding-up its affairs, the holders of Variable Voting Shares and Common Voting Shares shall be entitled to receive the remaining property of the Corporation and shall be entitled to share equally, share for share, in all distributions of such assets.

2.5 Conversion

2.5.1 Automatic

Each issued and outstanding Variable Voting Share shall be automatically converted into one Common Voting Share without any further act on the part of the Corporation or of the holder, if:

	
a)

	
such Variable Voting Share is or becomes beneficially owned and controlled, directly or indirectly, by a Canadian; or

	
b)

	
the provisions contained in the CTA relating to foreign ownership restrictions are repealed and not replaced with other similar provisions.

2.5.2 Upon an Offer

In the event that an offer is made to purchase Common Voting Shares and the offer is one which is required, pursuant to applicable securities legislation or the rules of a stock exchange on which the Common Voting Shares are then listed, to be made to all or substantially all the holders of Common Voting Shares in a province of Canada to which the requirement applies, each Variable Voting Share shall become convertible at the option of the holder into one Common Voting Share at any time while the offer is in effect until one day after the time prescribed by applicable securities legislation for the Offeror to take up and pay for such shares as are to be acquired pursuant to the offer. The conversion right may only be exercised in respect of Variable Voting Shares for the purpose of depositing the resulting Common Voting Shares pursuant to the offer, and for no other reason, including notably with respect to voting rights attached thereto, which are deemed to remain subject to section 2.1, immediately above, notwithstanding their conversion. The Transfer Agent shall deposit the resulting Common Voting Shares on behalf of the holder.

To exercise such conversion right, the holder or his attorney duly authorized in writing shall:

	
a)

	
give written notice to the Transfer Agent of the exercise of such right and of the number of Variable Voting Shares in respect of which the right is being exercised;

	
b)

	
deliver to the Transfer Agent the share certificate or certificates representing the Variable Voting Shares in respect of which the right is being exercised; and

	
c)

	
pay any applicable stamp tax or similar duty on or in respect of such conversion.

No share certificates representing the Common Voting Shares resulting from the conversion of the Variable Voting Shares shall be delivered to the holders on whose behalf such deposit is being made.

If Common Voting Shares resulting from the conversion and deposited pursuant to the offer are withdrawn by the holder or are not taken up by the Offeror; or the offer is abandoned or withdrawn by the Offeror or the offer otherwise expires without such Common Voting Shares being taken up and paid for, the Common Voting Shares resulting from the conversion will be reconverted into Variable Voting Shares and a share

 

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 certificate representing the Variable Voting Shares will be sent to the holder by the Transfer Agent. Common Voting Shares resulting from the conversion and taken up and paid for by the Offeror shall be re-converted into Variable Voting Shares at the time the Offeror is required under the applicable securities legislation to take up and pay for such shares if the Offeror is not a Canadian.

In the event that the Offeror takes up and pays for the Common Voting Shares resulting from conversion, the Transfer Agent shall deliver to the holders thereof the consideration paid for such shares by the Offeror.

There will be no right to convert the Variable Voting Shares into Common Voting Shares in the following cases:

	
d)

	
the offer to purchase Common Voting Shares is not required under applicable securities legislation or the rules of a stock exchange on which the Common Voting Shares are then listed to be made to all or substantially all of the holders of Common Voting Shares in a province of Canada to which the requirement applies, that is, the offer is an "exempt take-over bid" within the meaning of the foregoing securities legislation; or

	
e)

	
an offer to purchase Variable Voting Shares is made concurrently with the offer to purchase Common Voting Shares and the two offers are identical in respect of price per share, percentage of outstanding shares for which the offer is made, and in all other material respects, including in respect of the conditions attaching thereto. The offer to purchase the Variable Voting Shares must be unconditional, subject to the exception that the offer for the Variable Voting Shares may contain a condition to the effect that the Offeror is not required to take up and pay for Variable Voting Shares deposited to the offer if no shares are purchased pursuant to the contemporaneous offer for the Common Voting Shares.

ARTICLE 3

COMMON VOTING SHARES

Subject to the rights, privileges, restrictions and conditions which attach to the shares of any other class, the Common Voting Shares, as a class, shall have attached thereto the following rights, privileges, restrictions and conditions.

3.1 Voting

The holders of Common Voting Shares shall be entitled to receive notice of, and to attend and vote at, all meetings of the shareholders of the Corporation, except where the holders of a specified class are entitled to vote separately as a class as provided in the CBCA. Each Voting Share shall confer the right to one vote at all meetings of shareholders of the Corporation.

3.2 Dividends and Distributions

Subject to the rights, privileges, restrictions and conditions attached to any class of shares of the Corporation ranking prior to the Common Voting Shares, holders of Common Voting Shares shall be entitled to receive the dividends declared by the directors of the Corporation at the times and for the amounts that the Board of Directors may, from time to time, determine. The Common Voting Shares and Variable Voting Shares shall rank equally as to dividends on a share for share basis and all dividends declared in any fiscal year of the Corporation shall be declared in equal or equivalent amounts per share on all Common Voting Shares and Variable Voting Shares then outstanding, without preference or distinction.

 

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3.3 Subdivision or Consolidation

No subdivision or consolidation of the Common Voting Shares shall occur unless, simultaneously, the Common Voting Shares and the Variable Voting Shares are subdivided or consolidated in the same manner, so as to maintain and preserve the respective rights of the holders of the shares of each of the said classes.

3.4 Liquidation, Dissolution or Winding-up

Subject to the rights, privileges, restrictions and conditions attaching to any class of shares ranking prior to the Common Voting Shares, in the case of liquidation, dissolution or winding-up of the Corporation or other distribution of the Corporation's assets among its shareholders for the purposes of winding-up its affairs, the holders of Common Voting Shares and Variable Voting Shares shall be entitled to receive the remaining property of the Corporation and shall be entitled to share equally, share for share, in all distributions of such assets.

3.5 Conversion

3.5.1 Automatic

Subject to the foreign ownership restrictions of the CTA, an issued and outstanding Common Voting Share shall be converted into one Variable Voting Share, automatically and without any further act of the Corporation or the holder, if such Common Voting Share is or becomes beneficially owned or controlled, directly or indirectly, by a person who is not a Canadian.

3.5.2 Upon an Offer

In the event that an offer is made to purchase Variable Voting Shares and the offer is one which is required, pursuant to applicable securities legislation or the rules of a stock exchange on which the Variable Voting Shares, are then listed, to be made to all or substantially all the holders of Variable Voting Shares, each Common Voting Share shall become convertible at the option of the holder into one Variable Voting Share, at any time while the offer is in effect until one day after the time prescribed by applicable securities legislation for the Offeror to take up and pay for such shares as are to be acquired pursuant to the offer. The conversion right may only be exercised in respect of Common Voting Shares for the purpose of depositing the resulting Variable Voting Shares, pursuant to the offer, and for no other reason, including notably with respect to voting rights attached thereto, which are deemed to remain subject to paragraph 3.1, immediately above, notwithstanding their conversion. The Transfer Agent shall deposit the resulting Variable Voting Shares, on behalf of the holder.

To exercise such conversion right, the holder or his attorney duly authorized in writing shall:

	
a)

	
give written notice to the Transfer Agent of the exercise of such right and of the number of Variable Voting Shares, in respect of which the right is being exercised;

	
b)

	
deliver to the Transfer Agent the share certificate or certificates representing the Variable Voting Shares, in respect of which the right is being exercised; and

	
c)

	
pay any applicable stamp tax or similar duty on or in respect of such conversion.

No share certificates representing the Variable Voting Shares, resulting from the conversion of the Common Voting Shares will be delivered to the holders on whose behalf such deposit is being made.

If Variable Voting Shares, resulting from the conversion and deposited pursuant to the offer are withdrawn by the holder or are not taken up by the Offeror; or the offer is abandoned or withdrawn by the Offeror or the offer otherwise expires without such Variable Voting Shares, being taken up and paid for, the Variable Voting Shares, resulting from the conversion will be re-converted into Common Voting Shares and a share certificate representing the Common Voting Shares will be sent to the holder by the Transfer Agent. Variable 

 

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Voting Shares, resulting from the conversion and taken up and paid for by the Offeror shall be re-converted into Common Voting Shares at the time the Offeror is required under the applicable securities legislation to take up and pay for such shares if the Offeror is Canadian.

In the event that the Offeror takes up and pays for the Variable Voting Shares, resulting from conversion, the Transfer Agent shall deliver to the holders thereof the consideration paid for such shares by the Offeror.

There will be no right to convert the Common Voting Shares into Variable Voting Shares, in the following cases:

	
d)

	
the offer to purchase Variable Voting Shares, is not required under applicable securities legislation or the rules of a stock exchange on which the Variable Voting Shares, are then listed to be made to all or substantially all of the holders of Variable Voting Shares, that is, the offer is an "exempt take- over bid" within the meaning of the foregoing securities legislation; or

	
e)

	
an offer to purchase Common Voting Shares is made concurrently with the offer to purchase Variable Voting Shares, and the offers are identical in respect of price per share, percentage of outstanding shares for which the offer is made, and in all other material respects, including in respect of the conditions attaching thereto. The offer to purchase the Common Voting Shares must be unconditional, subject to the exception that the offer for the Common Voting Shares may contain a condition to the effect that the Offeror is not required to take up and pay for Common Voting Shares deposited to the offer if no shares are purchased pursuant to the contemporaneous offer for the Variable Voting Shares.

SCHEDULE 2

RESTRICTIONS ON SHARE TRANSFERS

 CONSTRAINTS ON OWNERSHIP OF SHARES

Variable Voting Shares

The Variable Voting Shares may only be beneficially owned or controlled, directly or indirectly, by persons who are not Canadians.

Common Voting Shares

The Common Voting Shares may only be beneficially owned and controlled, directly or indirectly, by Canadians.

CBCA Constraints

In the event that any Canadian federal or provincial legislation applicable to the Corporation should become prescribed for the purposes of subsections 174(1)(b)(c)(d) or (e) of the CBCA or any other similar provision in the CBCA or CBCA Regulations, these provisions shall be read as if they included additional constraints that assist the Corporation or any of its affiliates or associates (within the meaning of the CBCA) to qualify under such prescribed law to receive licenses, permits, grants, payments or other benefits by reason of attaining or maintaining a specified level of Canadian ownership and control and such specified level of Canadian ownership and control shall be the level, of Canadian ownership and control designated by such prescribed law of Canada or a province.

Joint Ownership

Where Voting Shares of the Corporation are beneficially owned or controlled by several persons jointly, the number of Voting Shares beneficially owned or controlled by any one such person shall include the number of Voting Shares beneficially owned or controlled jointly with such other persons. Where the Voting Shares 

 

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are beneficially owned or controlled jointly by a person who is not Canadian and another person or persons, the Voting Shares shall be deemed to be owned or controlled by such person who is not a Canadian.

Exceptions

	
a)

	
Nothing in these provisions shall be construed to apply in respect of Voting Shares of the Corporation that:

	
I.

	
are held by one or more underwriters solely for the purpose of distributing the shares to the public; or

	
II.

	
are held by any person that is acting in relation to the shares solely in its capacity as an intermediary in the payment of funds or the delivery of securities, or both, in connection with trades in securities and that provides centralized facilities for the clearing of trades in securities.

	
b)

	
The constraints imposed herein do not apply to the extent that a person who is not a Canadian holds Voting Shares by way of security only and such holding by way of security only is evidenced in such form as may be prescribed by the by-laws or resolutions adopted by the shareholders or directors of the Corporation and filed by such holder with the Corporation.

Powers of Directors

	
a)

	
In the administration of these provisions, the directors of the Corporation shall enjoy, in addition to the powers set forth herein, all of the powers necessary or desirable, in their opinion, to carry out the intent and purpose hereof, including but not limited to all powers contemplated by the provisions relating to constrained share corporations in the CBCA and the CBCA Regulations.

	
b)

	
Neither any shareholder of the Corporation nor any other interested person shall have any claim or action against the Corporation or against any director or officer of the Corporation nor shall the Corporation have any claim or action against any director or officer of the Corporation arising out of any act (including any omission to act) performed pursuant to or in intended pursuance of these provisions or any breach or alleged breach of such provisions.

 

123

  

 

SCHEDULE G - EXCEPTIONS TO REPRESENTATIONS AND WARRANTIES

Section 4.1(d)

Jet has the following subsidiaries:

	
Name

	
Place of incorporation

	
Interest %

	
Principal activity

	
Target Exploration and Mining Corp.

	
British Columbia, Canada

	
100% ownership by Jet

	
Exploration and evaluation of mineral properties

	
Jet Energy USA, Inc.

	
Nevada, United States

	
100% ownership by Target Exploration and Mining Corp.

	
Exploration and evaluation of mineral properties

	
Bootheel Project LLC

	
Colorado, United States

	
81% ownership by Jet Energy  USA, Inc.

	
Exploration and evaluation of mineral properties

	
Gemini Metals Corp.

	
British Columbia, Canada

	
100% ownership by Jet

	
In-active subsidiary

Section 4.1(g)

	
1.

	
Jet Shares are issuable to Cambrian Mining Finance Ltd. pursuant to the Finder's Fee Agreement dated January 7, 2016.

	
2.

	
Jet Shares and warrants to acquire Jet Shares will be issued in connection with the Financing.

Section 4.1(v)

	
1.

	
The transfer of Jet's interest in the Bootheel Project is subject to a pre-emptive right held by Ur-Energy USA Inc. and its subisidiares as further detailed in the Exploration, Development and Mine Opearting Agreement.

Section 4.1(y)

Jet has engaged the following brokers or finders in connection with the transactions contemplated by this Agreement:

	
1.

	
Cambrian Mining Finance Ltd.

	
2.

	
Ptolemy Capital.

124

 

SCHEDULE H - NEW KING & BAY WEST AGREEMENT

See attached.

125

 

MANAGEMENT SERVICES AGREEMENT BETWEEN

KING & BAY WEST MANAGEMENT CORP.

AND

CANADA JETLINES LTD.

[●], 2016

126

127

128

THIS MANAGEMENT SERVICES AGREEMENT made effective as of the [●] day of [●], 2016.

BETWEEN:

KING & BAY WEST MANAGEMENT CORP., a company incorporated under the laws of the Province of British Columbia ("Manager")

- and -

CANADA JETLINES LTD. a company incorporated under the Canada Business Corporations Act (the "Client")

WHEREAS the Client requires certain capital markets, corporate finance, legal, corporate secretarial and corporate communications services and personnel necessary to carry out and ensure compliance with the requirements of a reporting issuer, and to generally carry on its business;

AND WHEREAS Manager has the necessary personnel and expertise to provide all of the services required by the Client and the Client wishes to engage Manager to provide such services;

NOW THEREFORE, THIS AGREEMENT WITNESSETH that in consideration of the covenants herein contained and such other good and valuable consideration (the receipt and sufficiency of which is hereby acknowledged by the Parties), the Parties hereby agree as follows:

ARTICLE 1

 INTERPRETATION

1.1 Definitions

In this Agreement, the following terms will have the meanings set out below unless the context otherwise requires:

"Affiliate" of a person (the "Subject Person") means any other person that directly or indirectly controls, is controlled by or is under common control with the Subject Person. For purposes of this definition, "control" of a person means (i) ownership of more than 50% of the issued shares or other equity interests of such person or (ii) the power to direct the management or policies of a person, whether through the ownership of more than 50% of the voting power of such person, through the power to appoint more than half of the members of the board of directors or similar governing body of such person, or through contractual or other arrangements;

 

129

"Annual Budget" means, in respect of any Fiscal Year, an annual budget, developed collaboratively with Client and integrated with Client's annual business plan, and approved by Client, estimating the costs, on a monthly basis, of providing the Services and access to, and use of the assets contained in, the Shared Facilities, such budget to include a reasonable description of the method and basis for determining the costs to be allocated;

"Applicable Law" means, with respect to any person, property, transaction, event or other matter, any law, rule, statute, regulation, order, judgment, decree, treaty or other requirement having the force of law (collectively the "Law") relating or applicable to such person, property, transaction, event or other matter.  Applicable Law also includes, where appropriate, any interpretation of the Law (or any part) by any person having jurisdiction over it, or charged with its administration or interpretation;

"Confidential Information" means the confidential, secret or proprietary information of one Party or any of its Affiliates (the "Disclosing Party"), including data, technical information, financial information including prices, business information including business plans, strategies and practices, information relating to customers and prospective customers, trade secrets, know-how, methods, procedures, reports, budgets, computer tapes and other storage media, technology, files, documentation, and software of the Disclosing Party which has been or may hereafter be disclosed, directly or indirectly, to any other Party (the "Receiving Party") either orally, in writing, electronically or in any other material form or medium pursuant to and in conjunction with this Agreement, and includes all information relating to any arbitration proceeding under Section 11.11;

"Disclosing Party" has the meaning ascribed thereto in the definition of "Confidential Information" set out herein;

"Documentation" has the meaning ascribed thereto in Section 7.1;

"Exchange" means whichever of the TSX Venture Exchange or Toronto Stock Exchange lists the Client's Securities as applicable;

"Fiscal Year" means a twelve month period proposed by the Manager and agreed to by the Client, acting reasonably;

"Force Majeure Event" has the meaning ascribed thereto in Section 10.1;

"Governmental Authority" means any nation, federal government, province, state, municipality or other political subdivision of any of the foregoing, and any entity exercising executive, legislative, judicial, regulatory or administrative functions of or pertaining to government, and any corporation or other entity owned or controlled (through stock or capital ownership or otherwise) by any of the foregoing;

"Group Entity" means the Client and any other person that the Manager provides management services to pursuant to an agreement similar to this Agreement;

"including" means including, without limitation, and "includes" means includes, without limitation;

 

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"Parties" means Manager and Client and "Party" means any one of them;

"Receiving Party" has the meaning ascribed thereto in the definition of "Confidential Information";

"Security Deposit" has the meaning ascribed thereto in Section 5.9;

"Services" has the meaning ascribed thereto in Section 2.1;

"Taxes" includes all goods and services, sales, use, transfer, stamp, value added, gross receipts or excise tax or any similar taxes, fees, duties or imposts.

1.2 Interpretation

For the purposes of this Agreement, except as otherwise expressly provided:

	
(a)

	
the headings in this Agreement are included for convenience of reference only and in no way define or limit any of the provisions hereof or otherwise affect their construction or interpretation;

	
(b)

	
words importing the singular number include the plural and vice versa and words importing gender include the masculine, feminine and neuter genders;

	
(c)

	
"this Agreement" means this Agreement, including the Schedules hereto, and not any particular Section or other subdivision, recital or Schedule hereof, as the same may, from time to time, be supplemented or amended in accordance with the terms hereof;

	
(d)

	
the words "hereof", "herein", "hereto" and "hereunder" and other words of similar import refer to this Agreement as a whole and not to any particular Section or other subdivision, recital or Schedule hereof;

	
(e)

	
all references in this Agreement to a designated "Section" or other subdivision, recital or "Schedule" hereof are references to the designated Section or other subdivision, recital or Schedule to, this Agreement;

	
(f)

	
a reference to a statute in this Agreement includes all regulations, rules, policies or instruments made thereunder, all amendments to the statute, regulations, rules, policies or instruments in force from time to time, and any statutes, regulations, rules, policies or instruments that supplement or supersede such statute, regulations, rules, policies or instruments;

	
(g)

	
the word "or" is not exclusive;

	
(h)

	
the word "including" is not limiting, whether or not non-limiting language (such as "without limitation" or "but not limited to" or words of similar import) is used with reference thereto; and

 

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(i)

	
all references to "approval", "authorization" or "consent" in this Agreement means written approval, authorization or consent, unless expressly stated to the contrary.

1.3 Choice of Law

This Agreement will be governed by the laws of the Province of British Columbia and the laws of Canada applicable therein and shall be construed, interpreted and performed in accordance therewith.

1.4 Currency

In this Agreement, all amounts are stated and payable in Canadian currency.

1.5 Attornment

Subject to Section 11.11, any legal action or proceedings with respect to this Agreement shall be brought in the courts of the Province of British Columbia and the courts of appeal therefrom. Each Party hereby attorns to and accepts for itself and in respect of its assets, irrevocably and unconditionally, the jurisdiction of such courts.

1.6 Ambiguities

Each of the Parties has participated in the drafting of this Agreement and any rule of construction to the effect that ambiguities are to be resolved against the drafting Party shall not apply to the interpretation of this Agreement.

ARTICLE 2

 APPOINTMENT AND DELEGATION

2.1 Appointment as Manager and Delegation: Management Services

The Client hereby engages and appoints Manager to supply to the Client certain capital markets, corporate finance, legal, corporate secretarial and corporate communications services, staff and expertise as determined necessary by the Manager and Client to properly and efficiently manage the assets, operations, business and administrative affairs of the Client. In particular, but without limitation, Manager agrees to provide, as may be required and at the specific request of the Client:

	
(a)

	
certain general management services in respect of the business and affairs of Jetlines;

	
(b)

	
certain accounting and financial services, including analysis and valuation of the Client's accounting, treasury, information, income tax, reporting systems and internal controls;

	
(c)

	
certain cash management and investment services, including arranging, assisting and negotiating banking and financing arrangements for the Client and assisting

 

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 in the preparation of financial statements and other financial reports, coordinating external audits and financial planning and budgeting;

	
(d)

	
certain governmental relations services including, assisting in the representation of Jetlines to certain governmental and regulatory agencies;

	
(e)

	
certain reporting services to the Client's directors with respect to the business and affairs of the Client as may be requested by the Client's directors from time to time;

	
(f)

	
corporate secretarial services, including, without limitation, assistance with the maintenance of corporate records and minutes of meetings;

	
(g)

	
stock exchange and governmental relations services including, without limitation, assisting in the representation of the Client to the Exchange, securities commissions or other governmental and regulatory agencies;

	
(h)

	
the coordination of such audit, legal, insurance and other third party professional or non-professional services in respect of the Client as determined necessary by Manager (it being understood and agreed that the fees and expenses of third parties will be expenses of the Client);

	
(i)

	
incidental assistance with corporate communications programs, including investor relationship management, branding of the Client, and corporate brochures regarding the Client; provided that these services shall not constitute professional investor relations services under the rules of the Exchange, if applicable, or other securities regulatory policies;

	
(j)

	
assistance as required with the administration of the Client's commercial agreements;

	
(k)

	
assistance with the negotiation, on behalf of and in the name of the Client, of agreements with the Client's customers and other material contracts with third parties necessary for the proper operation of business and assets of the Client, including with respect to the items listed in this Section 2.1;

	
(l)

	
assistance with the assessment, negotiation and implementation, on behalf of and in the name of the Client, of major acquisitions and sales of subsidiaries, businesses or assets;

	
(m)

	
the co-ordination and submission, on behalf of and in the name of the Client, of applications for certain necessary permits, licenses or other required approvals from Governmental Authorities;

	
(n)

	
the management of the defence and prosecution of litigation and other legal services furnished by independent counsel and providing advice and recommendations with respect thereto; and

 

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(o)

	
such other executive functions in connection with the management of the business and affairs of the Client as determined necessary or advisable by Client,

(collectively, the "Services").

2.2 Exclusivity

The Client shall not engage or appoint any person other than the Manager to provide the Services, without the written prior consent of the Manager.

2.3 Appointment of Agents

	
(a)

	
Notwithstanding that the Client has engaged and appointed the Manager to provide Services to the Client pursuant to Section 2.1, Manager shall have the right to provide the Services, or any part thereof, through agents, affiliates or independent contractors; provided that Manager shall ensure that such agents, affiliates or independent contractors comply with the terms and conditions of this Agreement that are relevant to the performance of their assigned tasks.  Manager shall ensure that such agents, affiliates or independent contractors contractually are legally responsible for their conduct under the standards applicable to Manager pursuant to this Agreement.

	
(b)

	
Manager may rely and act upon information or advice received from advisors, accountants, legal counsel and others, provided Manager satisfies the standard of care described in Section 3.1 in relying and acting upon information received from such person.

ARTICLE 3

 CONCERNING MANAGER; REPRESENTATIONS AND WARRANTIES

3.1 Standard of Care

Manager shall provide the Services in a proper, workmanlike and efficient manner, in accordance with accepted professional standards, practices and applicable laws, and shall exercise that degree of care, and skill that a reasonably prudent person would exercise in comparable circumstances.  The Manager shall not be in breach of its standard of care if its inability or failure to perform results from the actions of the Client or the failure of the Client to perform acts or to contribute amounts required of it by this Agreement.

For greater certainty, the foregoing standard of care by the Manager is qualified as follows:

	
(a)

	
Manager shall not provide any services in respect of which a registration of the Manager in any capacity would be required under applicable securities laws or other Applicable Laws;

	
(b)

	
the Client acknowledges that although during the course of providing the Services, Manager may provide the Client assistance with tax, accounting or legal

 

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matters, but the Client shall not be relying on Manager for advice or opinions on tax, accounting or legal matters;

	
(c)

	
the Client specifically acknowledges Manager shall at no time provide the Client with any tax or accounting advice, opinion, analysis or similar services;

	
(d)

	
the Client specifically acknowledges Manager shall at no time provide the Client with any legal advice, opinion, analysis or similar services, including with respect to the interpretation or enforcement of any rights, obligations, duties or remedies that the Client may have in any matter and that any communication between the Client and Manager shall not necessarily be considered to be legally privileged; and

	
(e)

	
the use of the Services by the Client shall not result in the creation of a client-solicitor relationship between the Client and Manager, including any internal legal counsel employed by Manager or its Affiliates (the "Internal Counsel") and it is understood by the Client that any Internal Counsel has no professional duty to or fiduciary relationship with the Client and that any such duty is owed solely to Manager.  During the course of Manager providing the Services, the Client may have access to legal work product of Internal Counsel (the "Internal Legal Product").  The Client acknowledges that to the extent it has access to any Internal Legal Product, the Client shall not rely on such Internal Legal Product as professional legal advice.

3.2 Representations and Warranties

	
(a)

	
Manager represents and warrants to the Client, and acknowledges that the Client is relying thereon, that:

	
(i)

	
it is a valid and subsisting corporation duly incorporated under the laws of its jurisdiction of incorporation and has full corporate power and capacity to execute and deliver this Agreement and to observe and perform its covenants and obligations hereunder and has taken all necessary corporate proceedings and obtained all necessary approvals in respect thereof and, upon execution and delivery of this Agreement by it, this Agreement will constitute a legal, valid and binding obligation of Manager enforceable against it in accordance with its terms except that:

	
(A)

	
enforceability may be limited by bankruptcy, insolvency or other laws affecting creditors' rights generally;

	
(B)

	
equitable remedies, including the remedies of specific performance and injunctive relief, are available only in the discretion of an arbitrator or any court having jurisdiction; and

	
(C)

	
a court may stay proceedings before them by virtue of equitable or statutory powers.

 

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(ii)

	
neither the execution of this Agreement nor the provision of Services hereunder conflict with, result in a breach of or accelerate the performance required by any agreement to which it, or any of its Affiliates, is a party; and

	
(iii)

	
neither the execution of this Agreement nor the consummation of the transactions contemplated hereby, result in a breach of the laws of any applicable jurisdiction or its, or any of its Affiliates constating documents.

	
(b)

	
Client represents and warrants to the Manager, and acknowledges that Manager is relying thereon, that:

	
(i)

	
it is a valid and subsisting corporation duly incorporated under the laws of its jurisdiction of incorporation and has full corporate power and capacity to execute and deliver this Agreement and to observe and perform its covenants and obligations hereunder and has taken all necessary corporate proceedings and obtained all necessary approvals in respect thereof and, upon execution and delivery of this Agreement by it, this Agreement will constitute a legal, valid and binding obligation of Client enforceable against it in accordance with its terms except that:

	
(A)

	
enforceability may be limited by bankruptcy, insolvency or other laws affecting creditors' rights generally;

	
(B)

	
equitable remedies, including the remedies of specific performance and injunctive relief, are available only in the discretion of an arbitrator or any court having jurisdiction; and

	
(C)

	
a court may stay proceedings before them by virtue of equitable or statutory powers.

	
(ii)

	
neither the execution of this Agreement nor the consummation of the transactions contemplated hereby conflict with, result in a breach of or accelerate the performance required by any agreement to which it is a party;

	
(iii)

	
neither the execution of this Agreement nor the consummation of the transactions contemplated hereby, result in a breach of the laws of any applicable jurisdiction or its constating documents;

	
(iv)

	
the operations of the Client and its Affiliates have been and are now conducted in compliance with all Applicable Laws and none of the Client or any of its Affiliates has received any notice of any alleged violation of any such Applicable Laws, other than non-compliance or violations which, individually or in the aggregate, would not be material; and

	
(v)

	
the Client has filed with all applicable Governmental Authorities true and complete copies of all public disclosure documents that the Client is

 

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required to file therewith under applicable securities laws.  These public disclosure documents at the time filed: (a) did not contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading; and (b) complied in all material respects with the requirements of applicable securities laws.

3.3 Liability of Manager

Manager shall not be liable for any error of judgment or for any loss suffered by the Client in connection with the matters to which this Agreement relates, except a loss resulting from fraud, willful misconduct or Gross Negligence on the part of Manager, its Affiliates, or their respective directors, officers, employees, agents, or contractors. For purposes of this Agreement "Gross Negligence" means any wanton or reckless act or omission not justified by any special circumstances as amounts to a willful and utter disregard for harmful and avoidable consequences, but shall not include any act or omission of an Manager done or omitted to be done, if resulting from:

	
(a)

	
the direction of, or with the knowledge and concurrence, of the Client; or

	
(b)

	
an action taken in good faith by an Manager to protect life, health or property.

Notwithstanding anything herein contained to the contrary, in no event whatsoever will the Manager, its Affiliates, or their respective directors, officers, employees, agents, or contractors, be liable for any claim for:

	
(i)

	
punitive, exemplary or aggravated damages of any kind;

	
(ii)

	
damages for loss of profits or revenue, decline in earnings, decline in production, loss of opportunities, or loss of goodwill;

	
(iii)

	
indirect or consequential losses or any other indirect damages or loss;

	
(iv)

	
contribution, indemnity or set-off in respect of any claims against the Client by any third party; or

	
(v)

	
any damages whatsoever relating to interruption, delays, errors or omissions.

	
(vi)

	
Notwithstanding the provisions of any legislation in Canada or otherwise and whether or not advised of the possibility of those damages.

Without limiting the generality of the above Sections 3.3(a)-(b) and 3.3(i)-(vi), the maximum total liability of the Manager, and its suppliers, directors, officers, agents, representatives, shareholders and employees, for any claim whatsoever, under any circumstances, regardless of the cause of action and including without limitation claims for breach of contract, tort,

 

137

negligence or otherwise, and the Client's sole remedy therefore, shall be strictly limited to an award not to exceed the greater of:

		(x)	$500,000; and

		(y)	the amount of fees actually paid by the Client to the Manager under the terms of this Agreement during the six (6) months prior to the date that the claim arose.

3.4 Relationship of Manager and the Client

	
(a)

	
The provision by Manager of the Services under this Agreement shall be strictly as an independent contractor. Nothing contained in this Agreement shall create or imply any agency relationship among or between any of the Parties or any of their Affiliates, nor shall this Agreement be deemed to constitute a joint venture or partnership between the Parties or any of their Affiliates, nor shall this Agreement create any fiduciary relationship between the Parties or any of their Affiliates.

	
(b)

	
Unless otherwise agreed to between the Client and Manager, any directors, officers, consultants or employees of Manager or its Affiliates who are also directors, officers, consultants or employees of the Client or any of their Affiliates shall be paid by the Manager for serving in such capacity and shall not receive any remuneration from the Client therefore, except for stock options or other share based compensation granted by the Client in its sole discretion.

3.5 Other Activities of Manager

The Client acknowledges that, notwithstanding that the Client has engaged and appointed the Manager pursuant to Section 2.1, Manager has management and administrative responsibilities and contracts with other persons, companies and entities. The Client therefore agrees that Manager may provide management and administrative services to such other persons and entities which are the same or different from the Services provided to the Client by Manager, except that these services cannot be provided to other start-up or existing airlines.

Manager shall not be obligated to provide any information or advice to the Client respecting opportunities which come to the attention of Manager, its Affiliates or their respective personnel, unless such prospects and opportunities:

	
(a)

	
can be demonstrated to have been discovered by Manager primarily as a result of the provision of Services to the Client; or

	
(b)

	
opportunities that are presented to Manager by any third party for the express benefit of or for the specific attention of the Client,

("Prohibited Opportunities").

The Manager shall promptly notify the Client of any Prohibited Opportunities obtained or identified by Manager during the term of this Agreement, but nothing herein shall be deemed to be Gross Negligence on the part of Manager if some Prohibited Opportunity is overlooked or not

 

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discovered, it being the intention of this Section 3.5 only to prevent Manager from misappropriating Prohibited Opportunities.  An opportunity which the Client confirms in writing to Manager that it shall not pursue shall in no event be deemed to be a Prohibited Opportunity.

The Client acknowledges that Manager is expected to be regularly exposed to resource property opportunities in the ordinary course and may receive resource property prospects and opportunities as a consequence of the services that it provides to other persons, companies or entities or otherwise. The Client also acknowledges that Manager may receive unsolicited proposals and opportunities from sources wholly unrelated to the Client or any Group Entity and that those opportunities (other than Prohibited Opportunities) are as well acknowledged by the Client to be the sole property of Manager which may retain same for its own benefit or elect to transfer them to the Client, or any other person, company or entity managed by the Manager or any other third party in the Manager's sole discretion.

3.6 Directors and Officers Liability Insurance

During the term of this Agreement, the Client shall at all times maintain in good standing a Directors and Officers liability insurance with coverage acceptable to the directors and officers provided by the Manager.

ARTICLE 4

 SHARED FACILITIES

4.1 Use of Shared Facilities

Not applicable.

ARTICLE 5

 FEES AND PAYMENT

5.1 Budgets Relating to Services

Manager shall collaborate with Client to prepare and deliver to the Client an Annual Budget to perform the Services that shall be reviewed on a semi-annual basis.  In the event that Manager anticipates that the total annual costs of providing the Services during the Fiscal Year will exceed the costs outlined in an Annual Budget by greater than twenty percent (20%), Manager shall use commercially reasonable efforts to inform the Client of such increased costs as soon as the Manager is aware of such increased cost. Any additional cost shall be allocated in the same manner and on the same basis as costs for similar line items have been allocated in the Annual Budget for that Fiscal Year. Notwithstanding the foregoing, Manager shall not be required to itself bear the cost of any material departures from the Annual Budget. Nothing contained in this Agreement shall oblige Manager, in the absence of express agreement to the contrary, to incur any indebtedness for or on behalf of, or advance any credit to the Client.

5.2 Fees Payable by Client

Fees payable to the Manager by the Client will consist of the following components:

 

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(a)

	
time spent by Manager's personnel or a fixed monthly service fee for certain Services that may be agreed to between Manager and Client and included in an Annual Budget. See Schedule 5.2 for the personnel and hourly rates of Manager's personnel as at the date of this Agreement. The Manager may, from time to time provide a new personnel and hourly rate schedule to the Client, provided that any changes to personnel and hourly rates shall not take effect until sixty (60) days after the delivery of a new personnel and hourly rate schedule to the Client; and

	
(b)

	
other reasonable services and costs that may be incurred by Manager on behalf of the Client and approved by the Client.

5.3 Change in Services

In the event that the Client determines during a Fiscal Year, following the delivery of an Annual Budget, that it requires any change in the Services it receives, the Client shall provide notice to Manager and the quantity and level of Services shall be changed as agreed between the Parties, acting reasonably. The costs of such change shall be (i) determined in the same manner and on the same basis as in the Annual Budget, and (ii) allocated to, and paid by, the Client, unless otherwise agreed by the Parties. The quantity and level of Services provided at the end of a Fiscal Year shall form the basis of the quantity and level of Services to be included in the Annual Budget for the following Fiscal Year, unless otherwise agreed to in writing by the Parties.  Manager cannot materially change the quantity or level of Services provided to the Client pursuant to an Annual Budget without the prior written consent of the Client.

5.4 Invoice

Invoices will be issued by Manager to the Client on a monthly basis. Invoices shall include a description of the Services provided within the month of the invoice and time allocated to such Services by the Manager's personnel.

5.5 Payment

The Client shall pay each invoice delivered pursuant to Section 5.4 within ten (10) days of receipt. The Client also agrees to honour all agreements which Manager enters into in good faith on behalf of the Client with third parties in the course of performing the Services.

Manager shall provide the Client with such further information as it may reasonably request in relation to any amount shown on any invoices delivered in accordance with this Section 5.5, including reasonably satisfactory evidence of any reimbursable costs and expenses.

5.6 Interest

If either Party defaults in the payment when due of any sum payable under this Agreement (howsoever determined) the liability of such Party shall be increased to include interest on such sum from the date when such payment is due until the date of actual payment (as well after as before judgment) at the rate of eight percent (8%) per annum.  Such interest shall accrue from day to day.

 

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5.7 Proration

All fees payable under this Agreement shall be computed on a calendar month basis and shall be prorated for any partial month.

5.8 Payments in Respect of Taxes

The amounts to be billed by Manager for the Services and third party costs under this Agreement may be subject to GST, HST or other general sales tax, value added tax or any like service or sales tax or withholding tax which may be payable from time to time. All amounts payable under this Agreement shall be paid by the Client free and clear of any deductions or claims for set-offs, including for withholding taxes. If any amounts are required to be withheld by Applicable Law, the Client shall be obliged to pay an additional amount over the amount invoiced as shall leave Manager receiving the same net amount as the Manager invoiced the Client for.  Any such additional amount paid for withholding by the Client shall be refunded if recovered by Manager and Manager shall promptly apply to recover or reduce any such withholding amounts.

5.9 Security Deposit

Upon execution of this Agreement the Client shall pay to the Manager a security deposit (the "Security Deposit") equal to the Manager's estimated amount of the fees for three months of Services.  The existing Security Deposit provided by Jet Metal Corp. is to be maintained in satisfaction of this obligation. If the quantity and level of Services materially increases during the term of this Agreement, the Client, upon the written request of the Manager, shall pay to the Manager an increased Security Deposit equal to the Manager's estimated amount of the increase in fees for three months of Services at the then-current levels above the original estimate.  Upon termination of this Agreement, the Security Deposit will be applied to the Manager's final invoice and, if the Security Deposit exceeds such invoice, the outstanding remainder of the Security Deposit will be refunded to the Client in accordance with Section 6.4(b).

5.10 Excluded Services

Services provided by the Manager are described in Section 2.1.  The following is a non-inclusive listing of services and costs that are not included in the services provided by the Manager: external legal, audit, insurance, filing fees, regulatory fees, property maintenance fees, travel, interest and bank charges, costs related to raising capital, registrar and transfer agency fees, proxy solicitation fees, costs related to business and property acquisitions.  However, if Manager pays for any of these costs on behalf of the Client, these costs will be invoiced by Manager and the Client will reimburse Manager for these costs.

ARTICLE 6

 TERM AND TERMINATION

6.1 Term of Agreement

The term of this Agreement shall commence on the date hereof and shall continue until terminated pursuant to Section 6.2 hereof.

 

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6.2 Termination of Agreement

	
(a)

	
After a period of two years from the effective date of this Agreement, this Agreement may be terminated by either Party giving at least four months' prior written notice (or such shorter period as the Parties may mutually agree upon in writing) to the other Party of termination. On the giving of such notice by the Client, or at any time thereafter, either Party shall have the right to elect to immediately terminate the Manager's engagement, and upon such election, the Client shall pay to the Manager a lump sum equal to the average monthly fees for four (4) months. The average monthly fees shall be calculated over the twelve (12) months prior to the notice of termination, provided that if this Agreement has not been in existence for twelve (12) months at the time of notice of termination, then the average monthly fees shall be calculated over the period of time that this Agreement has been in existence.

	
(b)

	
This Agreement may be terminated immediately by the Client in the event of the commission by Manager of any fraudulent act.

	
(c)

	
This Agreement may be terminated immediately by the Client where a winding-up, liquidation, dissolution, bankruptcy, sale of substantially all assets, sale of business or insolvency proceeding have been commenced or are being contemplated by Manager.

	
(d)

	
Upon termination of this Agreement, stock options granted by the Client to executive officers, directors and other Manager personnel provided by the Manager will vest and expire in accordance with the Client's stock option plan.

6.3 Conduct After Notice of Termination

From the time of receipt of notice of termination of this Agreement:

		(a)	Manager shall not enter into any new arrangements or agreements on behalf of the Client (unless already legally committed to do so) without the Client's prior consent, such consent not to be unreasonably withheld; and

		(b)	notwithstanding any termination of this Agreement, the Client shall continue to be bound by any agreements:

	
(i)

	
contracted for on its behalf by Manager prior to Manager's receipt of notice of termination; or

	
(ii)

	
contracted for on its behalf by Manager after Manager's receipt of notice of termination with the Client's prior written consent,

provided that the Manager shall provide the Client with details of all such contractual arrangements promptly upon receipt of such notice of termination.

 

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6.4 Conduct After Termination

From the effective date of termination of this Agreement:

	
(a)

	
agreements or obligations which have been executed or incurred by Manager in connection with or related to Services provided to the Client shall be assigned over to the Client and the Client shall indemnify Manager in connection with the due performance of such agreements;

	
(b)

	
Manager shall, within sixty (60) days of the effective date of termination and, provided that the Client has paid all outstanding or potential future fees, costs and expenses of the Manager hereunder, refund to the Client the Security Deposit (without interest);

	
(c)

	
the Client shall cease to use Manager's premises, facilities, equipment, phone numbers and any other items that are the property of Manager and shall make arrangements for the orderly transition of the Services by advice letter to Manager; Manager shall be the sole and exclusive owner of the business contacts and investor database maintained by Manager; and

	
(d)

	
Manager shall furnish to the Client at Client's cost within sixty (60) days of the effective date of termination (provided that the Client has paid all outstanding or potential future fees, costs and expenses of the Manager hereunder) all books, records, electronic data and other information pertaining to the Client, together with all other materials pertaining to the Client in its possession, at Client's cost. For a period of six (6) years following the effective date of the termination of this Agreement, Manager shall provide the Client and any successor manager of the Client with any information from its records that the Client may reasonably require and the Manager shall be reimbursed for its reasonable costs and expenses thereof.

ARTICLE 7

 RECORDS AND REPORTING

7.1 Records and Reporting

Manager shall maintain, at all times, copies of all records related to the Services and the fees invoiced to the Client for such Services (collectively, "Documentation").  Manager will retain such Documentation for not less than seven (7) years from the date of its creation. Manager shall prepare such other reports detailing amounts invoiced to the Client hereunder as may be reasonably required by the Client from time to time.

7.2 Audit Right

	
(a)

	
Upon reasonable notice from the Client, Manager shall provide to the Client's external auditors and such other persons as the Parties may agree upon in writing, from time to time, access to Manager's locations during normal business hours for

 

143

	

	

the purposes of performing audits of the Manager's performance of the Services under this Agreement, including access to:

	
(i)

	
the parts of a facility at or from which Manager is providing the Services;

	
(ii)

	
Manager's personnel who are providing the Services;

	
(iii)

	
all Documentation relating to the Services;

	
(iv)

	
all physical assets that belong to or are charged to the Client.

Manager shall provide full co-operation and assistance to any such entity exercising the right of audit hereunder as may reasonably be required. Nothing in this Agreement shall be deemed to allow the Client's external auditors or any other person automatic access to legally privileged documents. Any audit conducted on behalf of the Client shall not interfere with Manager's operations.

	
(b)

	
The Client shall be responsible for any additional costs or expenses reasonably incurred by Manager in connection with any audits conducted as provided for pursuant to this Section 7.2.

	
(c)

	
All written exceptions to and claims upon the Manager for discrepancies disclosed by such audit shall be made not more than three (3) months after receipt of the audit, or they shall be deemed waived.

	
(d)

	
The Client's external auditors or other persons shall not have the right to audit records and accounts of the Manager relating to Services more than twenty-four (24) months after the end of such Fiscal Year in which such Services were provided.

7.3 Inspection Right of Manager

For the sole purpose of enabling Manager to perform the Services and only to the extent required to enable such performance, the Client shall allow Manager, its employees and authorized agents reasonable access to the Client's properties, business premises and business records upon reasonable notice to the Client.  The Client shall ensure that its employees, and any contractors, consultants, advisors or auditors engaged by it, co-operate fully with Manager in its performance of the Services.  Nothing in this Agreement shall be deemed to allow Manager automatic access to legally privileged documents.

ARTICLE 8

 INDEMNIFICATION

8.1 Indemnification of Manager

Manager (and each of its Affiliates, directors, officers, employees, consultants, agents and shareholders) (each an "Indemnified Party") shall be indemnified and saved harmless by the Client from and against all liabilities and expenses (including judgments, fines, penalties,

 

144

amounts paid in settlement and counsel fees), reasonably incurred in connection with any action, suit or proceeding to which an Indemnified Party may hereafter be made a party by reason of the Manager providing Services hereunder to the Client provided that Manager shall not be finally adjudged in such action, suit or proceeding as liable for or guilty of fraud, wilful misconduct, or Gross Negligence, in relation to the matter or matters in respect of which indemnification is claimed.

For purposes of the preceding paragraph: (i) "action, suit or proceeding" shall include every action, suit or proceeding, civil, criminal or other; (ii) the right of indemnification conferred thereby shall extend to any threatened action, suit or proceeding and the failure to institute it shall be deemed its final determination; and (iii) advances must be made by the Client against costs, expenses and fees incurred in respect of the matter or matters as to which indemnification is claimed, provided that Manager or other indemnified Party receiving such advance agrees to repay to the Client any amounts so advanced if the Client is finally adjudged in such action, suit or proceeding as liable for or guilty of fraud, wilful misconduct, or Gross Negligence in relation to the matter or matters in respect of which indemnification is claimed. The foregoing right of indemnification shall not be exclusive of any other rights to which Manager may be entitled as a matter of law or which may be lawfully granted to Manager.

The Indemnified Party shall give the Client prompt written notice of any such action, suit or proceeding of which the Indemnified Party has knowledge and the Client shall undertake the investigation and defence thereof on behalf of the Indemnified Party, including employment of counsel acceptable to such Indemnified Party, and make payment of all expenses.

No admission of liability and no settlement of any action, suit or proceeding shall be made without the consent of the Client and the Indemnified Parties affected, such consent not to be unreasonably withheld.

Notwithstanding that the Client shall undertake the investigation and defence of any action, suit or proceeding, an Indemnified Party shall have the right to employ separate counsel in any such action, suit or proceeding and participate in the defence thereof, but the fees and expenses of such counsel shall be at the expense of the Indemnified Party unless:

	
(a)

	
employment of such counsel has been authorised by the Client;

	
(b)

	
the Client has not assumed the defence of the action, suit or proceeding within a reasonable period of time after receiving notice thereof;

	
(c)

	
the named parties to any such action, suit or proceeding include both the Client and the Indemnified Party and the Indemnified Party shall have been advised by counsel that there may be a conflict of interest between the Client and the Indemnified Party; or

	
(d)

	
there are one or more legal defences available to the Indemnified Party which are different from or in addition to those available to the Client.

 

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It is the intention of the Client to constitute Manager as trustee for the other under this Section 8.1 and Manager agrees to accept such trust and to hold and enforce such covenants on behalf of Indemnified Parties.

Each of the Client and Manager shall use their reasonable commercial endeavours to ensure that the relevant policies of insurance maintained by them contain waivers of subrogation as against one another.

The provisions of Article 8 shall survive termination of this Agreement.

ARTICLE 9

 CONFIDENTIALITY AND NON-SOLICITATION

9.1 Confidentiality

Each Party shall use the Confidential Information of the other Party only for the purposes contemplated by this Agreement.  The Receiving Party shall use commercially reasonable efforts to ensure that the Confidential Information of a Disclosing Party is not used, disclosed, published, released, transferred or otherwise made available in any form to, for the use or benefit of, any person (other than its Affiliates) except as provided in this Article 9, without such Disclosing Party's approval, which may be unreasonably withheld. Each Receiving Party shall, however, be permitted to disclose relevant aspects of a Disclosing Party's Confidential Information to its officers and employees, and to the officers and employees of its Affiliates, to the extent that such disclosure is reasonably necessary for the performance of its duties and obligations under this Agreement; provided, however, that such Party shall take all commercially reasonable measures to ensure that Confidential Information of another Party is not disclosed or duplicated in contravention of the provisions of this Agreement by such officers and employees and such officers and employees are familiar with the requirements of this Article 9. A Receiving Party shall also be permitted to disclose relevant aspects of a Disclosing Party's Confidential Information to its directors, professional advisors, subcontractors, suppliers and agents on such terms which are reasonable considering the sensitivity of the Confidential Information, legal requirements and the identity of the disclosee, which terms shall at least include the requirements set forth in this Section 9.1. The obligations in this Article 9 shall not restrict any disclosure by any Receiving Party pursuant to:

	
(1)

	
any Applicable Law;

	
(2)

	
by order of any court of competent jurisdiction or Governmental Authority;

	
(3)

	
disclosure as is required in the course of arbitral or judicial proceedings to enforce rights or remedies under this Agreement,

providing that the Receiving Party has taken all reasonable steps to obtain an arbitral or judicial order to close such proceedings and files relating to such information to all Persons other than the parties thereto, unless such process has been waived in writing by the Party whose Confidential Information is to be disclosed, provided that the Receiving Party shall endeavour to give prompt notice to the Disclosing Party of any such requirement to disclose.

 

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For greater certainty, for purposes of this Article 9, Confidential Information does not include information that is demonstrated by the Receiving Party to have been:

	
(a)

	
at any time part of the public domain, other than by reason of the Receiving Party's failure to comply with the terms hereof;

	
(b)

	
lawfully obtained by the Receiving Party's from a third party who is, to the best of the knowledge of the Receiving Party, not under an obligation of confidentiality with respect to such Information;

	
(c)

	
in the Recipient's possession prior to the date the same Information is obtained hereunder; or

	
(d)

	
ascertained or developed independently by the Recipient without reference to the Information obtained hereunder.

9.2 Injunctive Relief

Each Receiving Party recognizes that its unauthorized disclosure of Confidential Information of a Disclosing Party may give rise to irreparable injury to the Disclosing Party and acknowledges that remedies other than injunctive relief may not be adequate.  Accordingly, each Party has the right to seek equitable and injunctive relief on an interim and interlocutory basis in any court of competent jurisdiction to prevent the unauthorized possession, use, or disclosure or knowledge of any Confidential Information of that Party, as well as to such damages or other relief as is occasioned by such unauthorized possession, use, disclosure or knowledge.

9.3 Return of Confidential Information

Each Party shall:

	
(a)

	
at the request of the Disclosing Party at any time;

	
(b)

	
after the Receiving Party's need for it has expired; or

	
(c)

	
in connection with the termination of this Agreement, whether in whole or in part, promptly return to the Disclosing Party, or use all commercially reasonable efforts to erase and destroy, all of the Confidential Information of the Disclosing Party in possession or control or such portion of it as has been requested by the Disclosing Party; provided that the Receiving Party shall only be required to use reasonable efforts to return or destroy any Confidential Information stored electronically, and the Receiving Party shall not be required to return or destroy any electronic copy of Confidential Information created pursuant to its standard electronic backup and archival procedures, provided further that: (i) personnel whose functions are not primarily information technology in nature do not access such retained copies; and (ii) personnel whose functions are primarily information technology in nature access such copies only as reasonably necessary for the performance of their information technology duties (e.g., for purposes of system recovery).  Notwithstanding the foregoing provisions of this Section 9.3(c), the Receiving

 

147

	

	

Party may retain: (x) a list of all Confidential Information so as to be able to identify the nature of the Confidential Information that the Receiving Party has returned or destroyed; provided, however, that a copy of such list is provided to the Disclosing Party contemporaneously with the return or destruction of such Confidential Information; and (y) any Confidential Information referred to in minutes of a meeting of the Receiving Party's board of directors or a committee thereof.

9.4 Non-Solicitation

Except with the prior written permission of the Manager, neither the Client, nor any of its representatives, will solicit or cause to be solicited, for employment or consulting engagement with the Client or its affiliates, any employee of the Manger or any person who performs functions on behalf of the Manager that are similar to those ordinarily performed by employees. For the purposes of this section, solicitation shall not include solicitation of employees where such solicitation is solely through advertising in periodicals of general circulation, the internet or an employee search firm on behalf of a party or its representatives, so long as the party or its representative did not direct or encourage such search firm to solicit a specifically named employee of the Manager.

9.5 Survival

This Article 9 shall survive the termination or expiry of this Agreement for a period of two years from the date of such termination or expiry.

ARTICLE 10

 FORCE MAJEURE

10.1 Force Majeure

	
(a)

	
Neither Party shall be liable for a failure or delay in the performance of its obligations pursuant to this Agreement, provided that such failure or delay is caused, directly or indirectly, by fire, flood, earthquake, elements of nature or acts of God, acts of war, terrorism, riots, civil disorders, rebellions or revolutions, or strikes, lock outs or labour disruptions, acts of any Governmental Authorities having jurisdiction, the issuance or promulgation of any Applicable Law, inability to obtain or delays by a Governmental Authority in granting or issuing any necessary license, permit or authorization, actions or interference by local communities, aboriginal peoples or non-governmental organizations, interruptions or shortages of labour, transportation, fuel, electricity, materials, machinery, equipment or parts, or any other causes beyond the reasonable control of such Party, whether or not similar to the foregoing list of causes (each, a "Force Majeure Event"). Lack of funds or finances shall not be a Force Majeure Event. Upon the occurrence of a Force Majeure Event, the affected Party shall promptly deliver notice to the other Party of the Force Majeure Event, particulars of the suspension of performance and the expected duration thereof. Thereafter, the affected Party shall, except as set out in Section 10.1(c), be excused from any

 

148

	

	

further performance of those of its obligations pursuant to this Agreement affected by the Force Majeure Event only for so long as:

	
(i)

	
such Force Majeure Event continues and for so long thereafter as such Party may reasonably require to alleviate the effect of the Force Majeure Event;

	
(ii)

	
the affected Party continues to use commercially reasonable efforts to recommence performance whenever and to whatever extent possible without delay; and

	
(iii)

	
the affected Party provides written updates to the other Party at reasonable intervals as to the status of the Force Majeure Event, efforts to alleviate the effect of the Force Majeure Event, efforts to recommence performance and the expected duration of the Force Majeure Event.

	
(b)

	
If a Force Majeure Event prevents, or in all likelihood will prevent, Manager from providing all or part of a Service, the Client may at its option, procure any affected Service or portion thereof from alternate sources until Manager is again able to provide such Service.  Manager shall not be required to compensate the Client for any costs and expenses relating to the services obtained from such alternate sources.

	
(c)

	
Upon the occurrence of a Force Majeure Event, Client shall not be excused from its obligation to pay the fee for the services; provided, however, that if Section 10.1(b) is applicable, the Parties agree that the fees payable hereunder shall be equitably reduced to reflect Services not received by the Client from Manager during the duration of the Force Majeure Event.

ARTICLE 11

 GENERAL PROVISIONS

11.1 Exchange Acceptance

This Agreement may be subject to the acceptance for filing thereof by the Exchange on which the Client's shares are listed for trading. If this Agreement is not accepted for filing by the Exchange, the Parties will forthwith negotiate such amendments to this Agreement as may be necessary to secure such acceptance for filing.   If such amendments cannot be mutually agreed upon, then either party may, by notice to the other, terminate this Agreement, provided that in such case all amounts owing for Services pursuant to Section 2.1 incurred prior to the date of such termination will be a debt of the Client owing to Manager and due and payable forthwith.

11.2 Further Assurances

A Party shall, upon request of the other Party, execute and deliver or cause to be executed and delivered all such documents, deeds and other instruments of further assurance and do or cause to be done all such acts and things as may be reasonably necessary or advisable to implement and give full effect to the provisions of this Agreement.

 

149

11.3 Assignment

This Agreement shall not be assigned by the Client without the prior written consent of Manager. Upon notice to the Client, Manager may transfer or assign any and all rights granted hereunder to any of its successors or Affiliates, provided that Manager may not transfer or assign its rights under this Agreement to any other party without the prior written consent of Jetlines.

11.4 Enurement

This Agreement shall enure to the benefit of and be binding upon the Parties and their respective successors and permitted assigns.

11.5 Entire Agreement

This Agreement constitutes the entire agreement between the Parties pertaining to the subject matter hereof and supersedes and replaces all prior understandings, agreements, negotiations or discussions, whether written or oral, between the Parties with respect thereto. There are no representations, warranties, terms, conditions, undertakings or collateral agreements or understanding, express or implied, between the Parties other than those expressly set forth in this Agreement.

11.6 Notice

Any notice required or permitted to be given hereunder shall be in writing and shall be properly given, if delivered personally, or by mail or by facsimile or other similar form of communication addressed:

	
(a)

	
to the Client at:

CANADA JETLINES LTD.

327, 5360 Airport Rd. South

 Richmond, BC  V7B 1B4

Attention:  Chief Executive Officer

Facsimile No.:  604 273-5399

	
(b)

	
to Manager at:

KING & BAY WEST MANAGEMENT CORP.

Suite 1240, 1140 West Pender Street

 Vancouver, BC  V6E 4G1

Attention: Mark Morabito

Facsimile No.:  604 681-8039

 

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Any notice, direction or other instrument given as aforesaid shall be deemed to have been effectively given, if sent by facsimile or other similar form of telecommunications on the next business day following such transmission or, if delivered, to have been received on the date of such delivery or, if mailed, to have been received seven days after the mailing thereof. Either Party may change its address for service from time to time by notice given in accordance with the foregoing and any subsequent notice shall be sent to the Party at its changed address.

11.7 Amendment

This Agreement may not be amended, changed, supplemented or otherwise modified in any respect except by written instrument executed by the Parties hereto or their respective successors or permitted assigns.

11.8 Severability

Any provision of this Agreement which is prohibited or unenforceable in any jurisdiction will, as to that jurisdiction, be ineffective to the extent of such prohibition or unenforceability and will be severed from the balance of this Agreement, all without affecting the remaining provisions of this Agreement or affecting the validity or enforceability of such provision in any other jurisdiction.

11.9 Counterpart Execution

This Agreement may be executed by facsimile or other electronic means and in any number of counterparts and each of such counterparts shall for all purposes be deemed to be an original, and all such counterparts shall together constitute one and the same instrument.

11.10 Effective Date

Notwithstanding the date or dates upon which this Agreement is executed by either Party, this Agreement shall be in full force and effect between the Parties effective as of and from the date first above written.

11.11 Arbitration

All disputes arising out of or in connection with this Agreement or in respect of any legal relationship associated therewith or derived therefrom shall be referred to and finally resolved by arbitration administered by the International Centre for Dispute Resolution (the "ICDR") under its International Arbitration Rules (the "Rules"). Upon referral of a dispute to arbitration, the Parties will endeavor to agree on the appointment of a sole arbitrator, failing which the arbitrator will be appointed in accordance with the ICDR Rules. The place of the arbitration shall be Vancouver, British Columbia. The language of the arbitration shall be English.

 

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IN WITNESS WHEREOF the Parties have caused this Agreement to be duly executed as of the date and year first above written.

KING & BAY WEST MANAGEMENT CORP.

		Per:	

 Name:

Title:

 

CANADA JETLINES LTD.

		Per:	

 Name:

Title:

 

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SCHEDULE 5.2

Hourly Rates of Manager's Personnel

[REDACTED:  Description of the Manager's personnel provided by Manager to the Client and their hourly rates.]

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