Document:

Exhibit 4.2

 

EXECUTION VERSION

 

CYRUSONE LP

 

and

 

CYRUSONE FINANCE CORP.

 

as Issuers,

 

CYRUSONE INC.

 

as Guarantor,

 

WELLS
FARGO BANK, N.A.

 

as Trustee,

 

and

 

DEUTSCHE BANK TRUST COMPANY
AMERICAS

 

as Paying Agent and Security
Registrar

 

1.450%
SENIOR NOTES DUE 2027

 

 

 

 

THIRD SUPPLEMENTAL

 INDENTURE

 

Dated as of January 22, 2020

 

TO THE INDENTURE

 

Dated as of December 5, 2019  

 

 

 

     

     

    

 

TABLE
OF CONTENTS

 

		 	Page
	 
	ARTICLE I RELATION TO BASE INDENTURE; DEFINITIONS; INTERPRETATION
	 
	SECTION 1.1	Relation to Base Indenture	1
	SECTION 1.2	Incorporation by Reference of Trust Indenture Act	2
	SECTION 1.3	Rules of Construction	2
	SECTION 1.4	Definition of Terms; Interpretation	2
	SECTION 1.5	Additional Definitions	3
	 	 	 
	ARTICLE II THE NOTES
	 
	SECTION 2.1	Terms of the Notes	12
	SECTION 2.2	Additional Notes	14
	SECTION 2.3	Security Registrar and Paying Agent	14
	SECTION 2.4	Certain Notes Owned by Issuers Disregarded	17
	 	 	 
	ARTICLE III FORM OF THE NOTES
	 
	SECTION 3.1	Global Form	17
	SECTION 3.2	Transfer and Exchange	18
	SECTION 3.3	General Provisions Relating to Transfers and Exchanges	21
	SECTION 3.4	Issuance in Euros	23
	SECTION 3.5	Payment	23
	 	 	 
	ARTICLE IV REDEMPTION OF THE NOTES
	 
	SECTION 4.1	Optional Redemption of the Notes	24
	SECTION 4.2	Redemption for Tax Reasons	24
	SECTION 4.3	Notice of Redemption; Selection of the Notes	24
	SECTION 4.4	Payment of the Notes Called for Redemption by the Issuers	26
	SECTION 4.5	Payment of Additional Amounts	26
	 	 	 
	ARTICLE V NOTE GUARANTEE
	 
	SECTION 5.1	Note Guarantee	28
	SECTION 5.2	Limitation on Guarantor Liability	29
	SECTION 5.3	Execution and Delivery of Note Guarantee	29
	 	 	 
	ARTICLE VI ADDITIONAL COVENANTS
	 	 	 
	SECTION 6.1	Reports	30
	SECTION 6.2	Limitations on Incurrence of Indebtedness	31
	SECTION 6.3	Compliance Certificates	32

 

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	ARTICLE VII REMEDIES OF THE TRUSTEE AND HOLDERS ON EVENT OF DEFAULT
	 
	SECTION 7.1	Events of Default	33
	SECTION 7.2	Acceleration of Maturity; Rescission and Annulment	34
	SECTION 7.3	Restoration of Rights and Remedies	34
	SECTION 7.4	Control by Holders	35
	SECTION 7.5	Notice of Default	35
	SECTION 7.6	Cure of Default	35
	 	 	 
	ARTICLE VIII CONCERNING THE TRUSTEE
	 
	SECTION 8.1	Certain Rights of Trustee	36
	SECTION 8.2	Moneys Held in Trust	37
	SECTION 8.3	Compensation and Reimbursement	38
	 	 	 
	ARTICLE IX SUPPLEMENTAL INDENTURES
	 
	SECTION 9.1	Supplemental Indentures Without the Consent of Holders	38
	SECTION 9.2	Supplemental Indentures With the Consent of Holders	40
	SECTION 9.3	Effect of Supplemental Indentures	40
	SECTION 9.4	Notes Affected by Supplemental Indentures	41
	SECTION 9.5	Execution of Supplemental Indentures	41
	 	 	 
	ARTICLE X SUCCESSOR ENTITY
	 	 	 
	SECTION 10.1	Company and the Guarantor May Consolidate on Certain Terms	42
	SECTION 10.2	Successor Entity Substituted	42
	 	 	 
	ARTICLE XI SATISFACTION AND DISCHARGE
	 	 	 
	SECTION 11.1	Satisfaction and Discharge	43
	SECTION 11.2	Application of Trust Money	44
	 	 	 
	ARTICLE XII LEGAL DEFEASANCE AND COVENANT DEFEASANCE
	 
	SECTION 12.1	Option to Effect Legal Defeasance or Covenant Defeasance	44
	SECTION 12.2	Legal Defeasance and Discharge	44
	SECTION 12.3	Covenant Defeasance	45
	SECTION 12.4	Conditions to Legal or Covenant Defeasance	46
	SECTION 12.5	Deposited Money and Government Securities to be Held in Trust; Other Miscellaneous Provisions	47
	SECTION 12.6	Repayment to Issuers	47
	SECTION 12.7	Reinstatement	48
	 	 	 
	ARTICLE XIII IMMUNITY OF INCORPORATORS, STOCKHOLDERS, OFFICERS AND DIRECTORS
	 
	SECTION 13.1	No Recourse	48

 

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	ARTICLE XIV MISCELLANEOUS PROVISIONS
	 
	SECTION 14.1	Effect on Successors and Assigns	49
	SECTION 14.2	Actions by Successor	49
	SECTION 14.3	Notices	49
	SECTION 14.4	Governing Law/Waiver of Jury Trial	51
	SECTION 14.5	Conflict with Trust Indenture Act	51
	SECTION 14.6	Counterparts	52
	SECTION 14.7	Severability	52
	SECTION 14.8	The Trustee	52
	SECTION 14.9	Ratifications	52
	SECTION 14.10	Manner of Determining Equivalent Currency	52

 

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THIRD SUPPLEMENTAL INDENTURE, dated as of
January 22, 2020 (this “Supplemental Indenture”), among CYRUSONE LP, a Maryland limited partnership (the “Company”),
CYRUSONE FINANCE CORP., a Maryland corporation (the “Co-Issuer,” and together with the Company, the “Issuers”
and each an “Issuer”), CYRUSONE INC., a Maryland corporation and the sole beneficial owner and sole trustee
of CyrusOne GP, which is the sole general partner of the Company (the “Guarantor,” or “Holdings”),
WELLS FARGO BANK, N.A., as trustee (the “Trustee”), and DEUTSCHE BANK TRUST COMPANY AMERICAS, as paying agent
and security registrar (the “Paying Agent” and “Security Registrar”“).

 

WITNESSETH:

 

WHEREAS, the Issuers have executed and delivered
to the Trustee an Indenture, dated as of December 5, 2019 (the “Base Indenture”), providing for the issuance
by the Issuers from time to time of Securities in one or more series;

 

WHEREAS, Section 2.1 of the Base Indenture
provides for various matters with respect to any series of Securities issued under the Base Indenture to be established in an indenture
supplemental to the Base Indenture;

 

WHEREAS, each of the Issuers and the Guarantor
desires to execute this Supplemental Indenture to establish the form and to provide for the issuance of a series of the Issuers’
senior notes designated as the Issuers’ 1.450% Senior Notes due 2027 (the “Notes”) in an initial aggregate
principal amount of €500,000,000;

 

WHEREAS, the Issuers have requested that the
Trustee execute and deliver this Supplemental Indenture, and to make the Notes, when executed by the Issuers and authenticated
and delivered by the Trustee, the valid and binding obligations of the Issuers; and

 

WHEREAS, all of the other conditions and requirements
necessary to make this Supplemental Indenture, when duly executed and delivered, a valid and binding agreement in accordance with
its terms and for the purposes herein expressed, have been performed and fulfilled.

 

NOW, THEREFORE, for and in consideration of
the premises and the purchase of the series of Securities provided for herein by the Holders thereof, it is mutually covenanted
and agreed, for the equal and proportionate benefit of all Holders of Securities of such series, as follows:

 

ARTICLE
I

RELATION TO BASE INDENTURE; DEFINITIONS; INTERPRETATION

 

SECTION 1.1                
Relation to Base Indenture.

 

This Supplemental Indenture constitutes
an integral part of the Base Indenture. Notwithstanding any other provision of this Supplemental Indenture, all provisions of
this Supplemental Indenture are expressly and solely for the benefit of the Holders of the Notes and any such provisions
shall not be deemed to apply to any other Securities issued under the Base Indenture and shall not be deemed to amend, modify
or supplement the Base Indenture for any purpose other than with respect to the Notes.

 

     

     

    

 

SECTION 1.2                
Incorporation by Reference of Trust Indenture Act.

 

The following Trust Indenture Act term used
in this Supplemental Indenture has the following meaning:

 

“obligor” on the Notes
and the Note Guarantee means the Issuers and the Guarantor, respectively, and any successor obligor upon the Notes and the Note
Guarantee, respectively.

 

SECTION 1.3                
Rules of Construction.

 

Unless the context otherwise requires:

 

(1)              
 a term has the meaning assigned to it;

 

(2)              
an accounting term not otherwise defined has the meaning assigned to it in accordance with
GAAP;

 

(3)              
“or” is not exclusive;

 

(4)              
“including” is not limiting;

 

(5)              
words in the singular include the plural, and in the plural include the singular;

 

(6)              
“will” shall be interpreted to express a command;

 

(7)              
provisions apply to successive events and transactions; and

 

(8)              
references to sections of or rules under the Securities Act will be deemed to include substitute,
replacement or successor sections or rules adopted by the Commission from time to time.

 

SECTION 1.4                
Definition of Terms; Interpretation.

 

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

 

(1)              
Capitalized terms used but not defined herein shall have the respective meanings assigned
to them in the Base Indenture;

 

(2)              
To the extent a term is defined in this Supplemental Indenture and in the Base Indenture,
the term defined in this Supplemental Indenture shall govern and be controlling with respect to the Notes; and

 

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(3)              
All references herein to Articles and Sections, unless otherwise specified, refer to the
corresponding Articles and Sections of this Supplemental Indenture as they amend or supplement the Base Indenture, and not the
Base Indenture or any other document.

 

SECTION 1.5                
Additional Definitions.

 

For purposes of this Supplemental Indenture
and the Notes, the following terms shall have the following meanings:

 

“Acquired Indebtedness”
means Indebtedness of a Person (a) existing at the time such Person becomes a Subsidiary or (b) assumed in connection with the
acquisition of assets from such Person, in each case, other than Indebtedness Incurred in connection with, or in contemplation
of, such Person becoming a Subsidiary or such acquisition; provided that Indebtedness of such Person that is redeemed, defeased,
retired or otherwise repaid at the time of, or substantially concurrently upon consummation of, the transactions by which such
Person becomes a Subsidiary will not be Acquired Indebtedness. Acquired Indebtedness shall be deemed to be Incurred on the date
of the related acquisition of assets from any Person or the date the acquired Person becomes a Subsidiary.

 

“Additional Amounts” shall
have the meaning set forth in Section 4.5.

 

“Additional Notes” means
additional Notes (other than the Initial Notes) issued under the Indenture in accordance with Section 2.4 of the Base Indenture
and Sections 2.2 and 6.2, as part of the same series as the Initial Notes.

 

“Agent” means any Security
Registrar or Paying Agent.

 

“Applicable Procedures”
means, with respect to any transfer or exchange of or for beneficial interests in any Global Note, the rules and procedures of
Euroclear, Clearstream or any other Depositary that apply to such transfer or exchange.

 

“Authentication Order”
means a written order signed in the name of the Company to the Trustee to authenticate and deliver the Notes, signed by one or
more Authorized Officers of the Company.

 

“Capitalization Rate” means
8.00%.

 

“Clearstream” means Clearstream
Banking, Société Anonyme and any successor thereto.

 

“Co-Issuer” shall have
the meaning set forth in the preamble and shall also include its successors and assigns.

 

“Code” shall have the meaning
set forth in Section 4.5.

 

“Common Depositary”
means the common depositary for Euroclear and Clearstream that is designated to act as the depositary for the Global Notes.
The initial Common Depositary shall be Deutsche Bank AG, London Branch, until a successor shall have been appointed by the
Company, and thereafter, “Common Depositary” shall mean or include such successor.

 

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“Company” shall have the
meaning set forth in the preamble, and subject to the provisions of Article X, shall also include its successors and assigns.

 

“Comparable Government Bond”
means, in relation to any Comparable Government Bond Rate calculation, at the discretion of the Independent Investment Bank selected
by the Company, a bond that is a direct obligation of the Federal Republic of Germany (“German government bond”),
whose maturity is closest to the Notes Par Call Date, or if the Independent Investment Bank in its discretion determines that such
similar bond is not in issue, such other German government bond as the Independent Investment Bank may, with the advice of three
brokers of, and/or market makers in, German government bonds selected by the Company, determine to be appropriate for determining
the Comparable Government Bond Rate.

 

“Comparable Government Bond Rate”
means the yield to maturity, expressed as a percentage (rounded to three decimal places, with 0.0005 being rounded upwards), on
the third business day in London prior to the Redemption Date, of the Comparable Government Bond on the basis of the middle market
price of the Comparable Government Bond prevailing at 11:00 a.m., London time, on such business day as determined by the Independent
Investment Bank selected by the Company.

 

“Confidential Datasite”
shall have the meaning set forth in Section 6.1(b).

 

“Consolidated EBITDA” means,
for any period of time, without duplication, consolidated net income (loss) of the Guarantor and its Consolidated Subsidiaries
plus amounts which have been deducted and minus amounts which have been added for, without duplication, (a) Interest Expense, (b)
depreciation and amortization and other non-cash items deducted or added back in arriving at net income (loss), (c) provision for
taxes based on income or profits, (d) non-recurring or other unusual items, as determined by the Company in good faith (including,
all prepayment penalties and all costs or fees incurred in connection with any equity financing, debt financing or amendment thereto,
acquisition, disposition, recapitalization or similar transaction (regardless of whether such transaction is completed)), (e) extraordinary
items, (f) noncontrolling interests, (g) the income, expense, gain or loss attributable to transactions involving derivative instruments
that do not qualify for hedge accounting in accordance with GAAP, and (h) gains or losses on dispositions of depreciable real estate
investments, property valuation losses and impairment charges; provided, however, that in no event will Consolidated
EBITDA include (x) net income (loss) (whether pursuant to the equity method of accounting or otherwise) on account of any of the
Company’s or its Consolidated Subsidiaries’ unconsolidated subsidiaries and other partially owned entities or (y) net
income (loss) generated from the Company’s or its Consolidated Subsidiaries’ real property under construction or Redevelopment
Properties; provided, further, that all amounts for such period shall be reasonably determined by the Company in
accordance with GAAP to the extent GAAP is applicable.

 

Consolidated EBITDA will be adjusted,
without duplication, to give pro forma effect: (i) in the case of any assets having been placed in service or removed from
service from the beginning of the period to the date of determination, to include or exclude, as the case may be, any
Consolidated EBITDA earned or eliminated as a result of the placement of the assets in service or removal of the assets from
service as if the placement of the assets in service or removal of the assets from service occurred at the beginning of the
period; and (ii) in the case of any acquisition or disposition of any asset or group of assets from the beginning of the
period to the date of determination, including by merger, or stock or asset purchase or sale, to include or exclude, as the
case may be, any Consolidated EBITDA earned or eliminated as a result of the acquisition or disposition of those assets as if
the acquisition or disposition occurred at the beginning of the period.

 

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“Consolidated Financial Statements”
means, with respect to any Person, collectively, the consolidated financial statements and notes to those financial statements,
of that Person and its Consolidated Subsidiaries prepared in accordance with GAAP.

 

“Consolidated Subsidiary”
means each Subsidiary of the Guarantor that is consolidated in the Consolidated Financial Statements for the most recent quarterly
period covered in the annual or quarterly report most recently furnished to Holders or filed with the Commission, as the case may
be, in accordance with Section 6.1.

 

“Covenant Defeasance” shall
have the meaning set forth in Section 12.3.

 

“Default” means any event,
act or condition that with notice or lapse of time, or both, would constitute an Event of Default.

 

“Definitive Note” means
a certificated Note registered in the name of the Holder thereof and issued in accordance with Section 3.2, substantially
in the form of Exhibit A hereto, except that such Note shall not bear the Global Note legend and shall not have the “Schedule
of Exchanges of Interests in the Global Note” attached thereto.

 

“Depositary” means, with
respect to the Notes, Euroclear and Clearstream, or any successor entity thereto.

 

“euro(s)” or “€”
means the single currency introduced at the third stage of the European Monetary Union pursuant to the treaty establishing the
European Community, as amended.

 

“Euroclear” means Euroclear
S.A./N.V., as operator of the Euroclear system, and any successor thereto.

 

“Event of Default” shall
have the meaning set forth in Section 7.1.

 

“GAAP” means generally
accepted accounting principles in the United States of America as in effect from time to time.

 

“Global Note” means, individually
and collectively, each of the Notes in the form of a Global Security registered in the name of a nominee of the ICSDs, as Depositary,
and deposited with the Common Depositary or its nominee, substantially in the form of Exhibit A.

 

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“Guarantor” shall have
the meaning set forth in the preamble, and subject to the provisions of Article X, shall also include its successors and assigns.

 

“Holder” means a Person
in whose name a Note is registered.

 

“Holdings” shall have the
meaning set forth in the preamble, and subject to the provisions of Article X, shall also include its successors and assigns.

 

“ICSDs” means, together,
Clearstream and Euroclear.

 

“Incur” means, with respect
to any Indebtedness or other obligation of any Person, to create, assume, guarantee or otherwise become liable in respect of the
Indebtedness or other obligation, and “Incurrence” and “Incurred” have meanings correlative to the foregoing.
Indebtedness or other obligation of the Company or any Subsidiary of the Company will be deemed to be Incurred by the Company or
such Subsidiary whenever the Company or such Subsidiary shall create, assume, guarantee or otherwise become liable in respect thereof;
provided that neither the accrual of interest nor the accretion of original issue discount will be considered to be an Incurrence
of Indebtedness. Indebtedness or other obligations of a Subsidiary of the Company existing prior to the time it became a Subsidiary
of the Company will be deemed to be Incurred upon such Subsidiary becoming a Subsidiary of the Company; and Indebtedness or other
obligation of a Person existing prior to a merger or consolidation of such Person with the Company or any Subsidiary of the Company
in which such Person is the successor to the Company or such Subsidiary will be deemed to be Incurred upon the consummation of
such merger or consolidation. Any issuance or transfer of capital stock that results in Indebtedness constituting Intercompany
Indebtedness being held by a Person other than the Company, the Guarantor or any Consolidated Subsidiary or any sale or other transfer
of any Indebtedness constituting Intercompany Indebtedness to a Person that is not the Company, the Guarantor or any Consolidated
Subsidiary, will be deemed, in each case, to be an Incurrence of Indebtedness that is not Intercompany Indebtedness at the time
of such issuance, transfer or sale, as the case may be.

 

“Indebtedness” of
the Company, the Guarantor or any Consolidated Subsidiary means, without duplication, any of the Company’s indebtedness
or that of any Consolidated Subsidiary, whether or not contingent, in respect of: (a) borrowed money evidenced by bonds,
notes, debentures or similar instruments whether or not such indebtedness is secured by any lien existing on property owned
by the Company or any Consolidated Subsidiary; (b) indebtedness for borrowed money of a Person other than the Company, the
Guarantor or a Consolidated Subsidiary which is secured by any lien on property owned by the Company, the Guarantor or any
Consolidated Subsidiary, to the extent of the lesser of (i) the amount of indebtedness so secured, and (ii) the fair market
value of the property subject to such lien; (c) the reimbursement obligations, contingent or otherwise, in connection with
any letters of credit actually issued or amounts representing the balance deferred and unpaid of the purchase price of any
property or services, except any such balance that constitutes an accrued expense or trade payable; or (d) any lease of
property by the Company, the Guarantor or any Consolidated Subsidiary as lessee which is reflected on the Company’s
consolidated balance sheet as a finance lease in accordance with GAAP. Indebtedness also includes, to the extent not
otherwise included, any obligation by the Company, the Guarantor or any Consolidated Subsidiary to be liable for, or to pay,
as obligor, guarantor or otherwise (other than for purposes of collection in the ordinary course of business), indebtedness
of another Person (other than the Company or any Consolidated Subsidiary) of the type described in clauses (a)-(d) of this
definition; provided that (y) the term “Indebtedness” shall not include Permitted Non-Recourse Guarantees
of the Company, the Guarantor or any Consolidated Subsidiary until such time as they become primary obligations of, and
payments are due and required to be made thereunder by, the Company, the Guarantor or any Consolidated Subsidiary and (z), in
the case of clause (d) of this definition, the term “Indebtedness” shall not include any lease of property by
such Person as lessee which is required to be reflected on such Person’s balance sheet as an operating lease in
accordance with GAAP.

 

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“Indenture” means the Base
Indenture, as supplemented by this Supplemental Indenture, and as further supplemented, amended or restated.

 

“Independent Investment Bank”
means one of the Reference Bond Dealers that the Company shall appoint to act as the Independent Investment Bank.

 

“Indirect Participant”
means a Person who holds a beneficial interest in a Global Note through a Participant.

 

“Initial Notes” means the
€500,000,000 aggregate principal amount of Notes issued under this Supplemental Indenture on the date hereof.

 

“Intercompany Indebtedness”
means Indebtedness to which the only parties are any of the Company, the Guarantor and any Consolidated Subsidiary (including CyrusOne
GP); provided, however, that with respect to any such Indebtedness of which the Company or the Guarantor is the borrower,
such Indebtedness is subordinate in right of payment to the Notes.

 

“Interest Expense” means,
for any period of time, consolidated interest expense for such period of time, whether paid, accrued or capitalized, without deduction
of consolidated interest income, of the Guarantor and its Consolidated Subsidiaries, including, without duplication, or, to the
extent not so included, with the addition of (a) the portion of any rental obligation in respect of any finance lease obligation
allocable to interest expense in accordance with GAAP and (b) the amortization of Indebtedness discounts, but excluding prepayment
penalties, in all cases as reflected in the applicable Consolidated Financial Statements. “Interest Expense” will be
calculated on a pro forma basis (x) for any Indebtedness Incurred by the Company and its Subsidiaries since the first day of the
applicable period and the application of proceeds therefrom and (y) the repayment or retirement of any Indebtedness by the Company
and its Subsidiaries since the first day of the applicable period.

 

“Issuers” means, collectively,
the Company and the Co-Issuer.

 

“Legal Defeasance” shall
have the meaning set forth in Section 12.2.

 

“Make-Whole Premium”
means, with respect to any Note redeemed before the Notes Par Call Date, the excess, if any, of (a) the sum of the present
values of the remaining scheduled payments of principal and interest thereon that would be due if such Notes matured on the
Notes Par Call Date from the Redemption Date to the Notes Par Call Date (exclusive of any accrued interest) discounted to the
Redemption Date on an annual basis, pursuant to the ACTUAL/ACTUAL (ICMA) payment convention, at the Comparable Government
Bond Rate plus 30 basis points; over (b) 100% of the principal amount of such Note.

 

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“Non-Recourse Indebtedness”
means Indebtedness of a Subsidiary of the Company (or an entity in which the Company is the general partner or managing member)
that is directly or indirectly secured by real estate assets or other real estate-related assets (including equity interests) of
a Subsidiary of the Company (or entity in which the Company is the general partner or managing member) that is the borrower and
is non-recourse to the Company or any Subsidiary of the Company (other than pursuant to a Permitted Non-Recourse Guarantee and
other than with respect to the Subsidiary of the Company (or entity in which the Company is the general partner or managing member)
that is the borrower); provided, further, that, if any such Indebtedness is partially recourse to the Company or
any Subsidiary of the Company (other than pursuant to a Permitted Non-Recourse Guarantee and other than with respect to the Subsidiary
of the Company (or entity in which the Company is the general partner or managing member) that is the borrower) and therefore does
not meet the criteria set forth above, only the portion of such Indebtedness that does meet the criteria set forth above shall
constitute “Non-Recourse Indebtedness.”

 

“Note Guarantee” means
the full and unconditional Guarantee by the Guarantor in respect of the Notes as made applicable to the Notes in accordance with
the provisions of Article V.

 

“Notes” shall have the
meaning set forth in the preamble. The Initial Notes and the Additional Notes shall be treated as a single class for all purposes
under the Indenture, and unless the context otherwise requires, all references to the Notes shall include the Initial Notes and
any Additional Notes.

 

“Notes Par Call Date” means
November 22, 2026.

 

“Officer’s Certificate”
means a certificate signed by an Authorized Officer of the Company that is delivered to the Trustee in accordance with the terms
hereof. Each such certificate shall include the statements provided for in Section 14.7 of the Base Indenture, if and to the
extent required by the provisions thereof. An Officer’s Certificate given pursuant to Section 6.3 shall be signed by
the principal executive, financial or accounting officer of the Company, but need not contain the statements provided for in Section 14.7
of the Base Indenture.

 

“Optional Redemption Price”
shall have the meaning set forth in Section 4.1.

 

“Outstanding” when used
with reference to the Notes, means, subject to the provisions of Section 2.4, as of any particular time, all Notes theretofore
authenticated and delivered by the Trustee under the Indenture, except (a) Notes theretofore canceled by the Trustee or any
Paying Agent, or delivered to the Trustee or any Paying Agent for cancellation or that have previously been canceled; (b) Notes
or portions thereof for the payment or redemption of which cash or Governmental Obligations in the necessary amount shall have
been deposited in trust with the Trustee or with any Paying Agent (other than the Issuers) or shall have been set aside and segregated
in trust by the Issuers (if the Issuers shall act as their own Paying Agent); provided, however, that, if such
Notes or portions of such Notes are to be redeemed prior to the maturity thereof, notice of such redemption shall have been given
as provided in Article IV, or provision satisfactory to the Trustee shall have been made for giving such notice; and
(c) Notes in lieu of or in substitution for which other Notes shall have been authenticated and delivered pursuant to the
terms of Section 2.7 of the Base Indenture, unless the Trustee and the Issuers receive proof satisfactory to them that the
replaced Note is held by a protected purchaser.

 

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“Participant” means, with
respect to the Depository Trust Company, Euroclear or Clearstream, a Person who has an account
with the Depository Trust Company, Euroclear or Clearstream, respectively (and, with respect
to the Depository Trust Company, shall include Euroclear and Clearstream).

 

“Paying Agent” shall have
the meaning set forth in the preamble, and subject to the provisions of Section 2.3, shall also include its successors and assigns.

 

“Payment Business Day”
means any day that is (i) a day on which commercial banks and foreign exchange markets settle payments and are open for general
business (including dealing in foreign exchange and foreign currency deposits) in New York City and the City of London and, in
the case of Definitive Notes only, the relevant place of presentation and (ii) a day on which the TARGET 2 System is open for the
settlement of payment in euros.

 

“Permitted Non-Recourse Guarantees”
means customary completion or budget guarantees or indemnities (including by means of separate indemnification agreements and carve-out
guarantees) provided under Non-Recourse Indebtedness in the ordinary course of business by the Company or any of its Subsidiaries
in financing transactions that are directly or indirectly secured by real estate assets or other real estate-related assets (including
equity interests) of a Subsidiary of the Company (or an entity in which the Company is the general partner or managing member),
in each case that is the borrower in such financing, but is non-recourse to the Company or any of its other Subsidiaries, except
for customary completion or budget guarantees or indemnities (including by means of separate indemnification agreements or carve-out
guarantees) as are consistent with customary industry practice (such as environmental indemnities and recourse triggers based on
violation of transfer restrictions and other customary exceptions to nonrecourse liability).

 

“Person” means a corporation,
an association, a partnership, a limited liability company, an individual, a joint venture, a joint stock company, a trust, an
unincorporated organization or a government or an agency or a political subdivision thereof.

 

“Prospectus” means the
base prospectus, dated May 3, 2019, included as part of a registration statement on Form S-3 under the Securities Act, filed by
the Issuers and the Guarantor with the Commission on May 3, 2019 (Registration Nos. 333-231203-14, 333-231203-15 and 333-231203),
as supplemented by a prospectus supplement, dated January 15, 2020, filed by the Issuers and the Guarantor with the Commission
pursuant to Rule 424(b) under the Securities Act.

 

    9

     

    

 

“Redemption Date” means,
with respect to any Note or portion thereof to be redeemed in accordance with the provisions of Section 4.1 or Section 4.2, the
date fixed for such redemption in accordance with the provisions of Section 4.1 or Section 4.2, as applicable.

 

“Redemption Price” shall
have the meaning set forth in Section 4.2.

 

“Redevelopment Property”
means a property, or a distinct portion thereof, owned by the Company or a Consolidated Subsidiary (a) where the commenced leased
square footage is less than 85% of the sum of net rentable square feet and redevelopment space, with reasonable adjustments to
leased square footage determined in good faith by the Company, including adjustments for available power, required support space
and common area and (b) that the Company reasonably characterizes as held in whole or in part for redevelopment. Notwithstanding
the foregoing, any property will no longer be considered to be a “Redevelopment Property” at the point at which such
property’s Consolidated EBITDA for the most recent quarterly period covered in the annual or quarterly report most recently
furnished to Holders or filed with the Commission, as the case may be, in accordance with Section 6.1, prior to such time,
annualized (i.e., multiplied by four (4)), capitalized at the Capitalization Rate exceeds its book value as determined in accordance
with GAAP. For the avoidance of doubt, an individual parcel of property can be the site of one or more properties described in
the immediately preceding sentence or Redevelopment Properties as determined in the good faith judgment of an Authorized Officer
of the Guarantor.

 

“Reference Bond Dealers”
means Barclays Bank PLC, Merrill Lynch International and Deutsche Bank AG, London Branch (or their respective affiliates that are
Primary Bond Dealers (as defined below)) and their respective successors; provided, however, that if any of the foregoing
shall cease to be a broker or dealer of, and/or market maker in, German government bonds (a “Primary Bond Dealer”),
the Company will substitute therefor another Primary Bond Dealer.

 

“Required Filing Dates”
shall have the meaning set forth in Section 6.1.

 

“Secured Indebtedness”
means, as of any date, that portion of Total Outstanding Indebtedness as of that date that is secured by a mortgage, trust deed,
deed of trust, deeds to secure Indebtedness, pledge, security interest, assignment for collateral purposes, deposit arrangement,
or other security agreement, excluding any right of setoff but including any conditional sale or other title retention agreement,
any financing lease having substantially the same economic effect as any of the foregoing, and any other like agreement granting
or conveying a security interest.

 

“Securities Act” means
the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder, as in effect from time to time.

 

“Security Registrar” shall
have the meaning set forth in the preamble, and subject to the provisions of Section 2.3, shall also include its successors and
assigns.

 

“Significant Subsidiary”
shall have the meaning set forth in Section 7.1.

 

    10

     

    

 

“Subsidiary” means, with
respect to any Person, (a) any corporation, association or other business entity of which more than 50% of the total voting power
of shares of capital stock or other equity interest entitled (without regard to the occurrence of any contingency) to vote in the
election of directors, managers or trustees thereof is at the time owned or controlled, directly or indirectly, by such Person
or one or more of the other subsidiaries of that Person (or a combination thereof) and (b) any partnership (i) the sole general
partner or managing general partner of which is such Person or a subsidiary of such Person or (ii) the only general partners of
which are such Person or one or more subsidiaries of such Person (or any combination thereof).

 

“Supplemental Indenture”
shall have the meaning set forth in the preamble.

 

“TARGET 2 System” means
the Trans-European Automatic Real-Time Gross Settlement Express Transfer (TARGET 2) System (or any successor thereto).

 

“Tax Redemption Price”
shall have the meaning set forth in Section 4.2.

 

“Total Assets” as of any
date means the sum, without duplication, of (a) Consolidated EBITDA for the most recent quarterly period covered in the annual
or quarterly report most recently furnished to Holders or filed with the Commission, as the case may be, in accordance with Section 6.1,
prior to such time, annualized (i.e., multiplied by four (4)), capitalized at the Capitalization Rate, (b) the undepreciated book
value of the real property of the Company and the Consolidated Subsidiaries under construction and Redevelopment Property as of
the end of the quarterly period used for purposes of clause (a) above, in each case as determined by the Company in good faith,
and (c) for all assets of the Company and the Consolidated Subsidiaries other than the assets referred to in (a) and (b) above,
the undepreciated book value as determined in accordance with GAAP (but excluding accounts receivable, non-real estate intangible
assets, and right-of-use assets associated with leases of property required to be reflected as operating leases on the balance
sheet of the annual or quarterly report most recently furnished to Holders or filed with the Commission, as the case may be, in
accordance with Section 6.1, prior to such time). For the avoidance of doubt, (x) the assets in clause (c) of the immediately preceding
sentence will include all cash and cash equivalents and the fair market value of all investments in equity securities with readily
determinable fair value (but excluding all cash and cash equivalents applied to defease or discharge any indebtedness), and (y)
an individual parcel of property can be the site of one or more properties, and separate portions of the same parcel of property
can (i) contribute to Consolidated EBITDA in clause (a) of the immediately preceding sentence, (ii) be a Redevelopment Property
or (iii) be real property under construction or land, in each case, as determined in the good faith judgment of an Authorized Officer
of the Guarantor.

 

“Total Outstanding Indebtedness”
means, as of any date, the sum, without duplication, of (a) the aggregate principal amount of all outstanding Indebtedness of the
Guarantor as of that date, excluding Intercompany Indebtedness; and (b) the aggregate principal amount of all outstanding Indebtedness
of the Company’s Consolidated Subsidiaries, all as of that date, excluding Intercompany Indebtedness.

 

“Total Unencumbered
Assets” means, as of any time, the sum of (a) Unencumbered Consolidated EBITDA for the most recent quarterly period
covered in the annual or quarterly report most recently furnished to Holders or filed with the Commission, as the case may
be, in accordance with Section 6.1, prior to such time, annualized (i.e., multiplied by four (4)), capitalized at the
Capitalization Rate, and (b) to the extent not subject to any Secured Indebtedness, the value of the assets described in
clauses (b) and (c) of the definition of Total Assets; provided, however, that all investments by the Company
and its Subsidiaries in unconsolidated joint ventures, unconsolidated limited partnerships, unconsolidated limited liability
companies and other unconsolidated entities shall be excluded from Total Unencumbered Assets to the extent that such
investments would have otherwise been included (it being understood that investments in equity securities with readily
determinable fair value shall not be covered by this proviso; provided, however, that such investments in
equity securities with readily determinable fair value are not securing, or applied to defease or discharge, in each case as
of that date, any indebtedness, including mortgages and other notes payable).

 

    11

     

    

 

“Trustee” shall have the
meaning set forth in the preamble.

 

“Unencumbered Consolidated EBITDA”
means, for any quarter, Consolidated EBITDA for the most recent quarterly period covered in the annual or quarterly report most
recently furnished to Holders or filed with the Commission, as the case may be, in accordance with Section 6.1, prior to the time
of determination, less any portion thereof attributable to any properties or assets subject to any Secured Indebtedness, as determined
in good faith by the Company.

 

“Unsecured Indebtedness”
means that portion of Total Outstanding Indebtedness that is not Secured Indebtedness.

 

ARTICLE
II

THE NOTES

 

SECTION 2.1                
Terms of the Notes.

 

Pursuant to Section 2.1 of the Base Indenture,
the following terms relating to the Notes are hereby established:

 

(1)              
The Notes shall constitute a series of Securities having the title “1.450% Senior
Notes due 2027”.

 

(2)              
The initial aggregate principal amount of the Notes is €500,000,000. There is no limit
upon the aggregate principal amount of the Notes that may be authenticated and delivered under the Indenture, subject to Section
2.2 and the terms of the Base Indenture.

 

(3)              
The entire outstanding principal of the Notes shall be payable as set forth in the Notes.
The Initial Notes shall be issued at a public offering price of 99.861% of the principal amount thereof, other than any offering
discounts pursuant to the initial offering and resale of the Notes. The principal amount due at the Stated Maturity and the place(s)
of payment shall be as set forth in the Notes.

 

    12

     

    

 

(4)             
The rate at which the Notes shall bear interest shall be as set forth in the Notes.

 

(5)             
The dates from which interest shall accrue, the Interest Payment Dates on which such interest
will be payable and the record date for the determination of the Holders to whom interest is payable on any such Interest Payment
Dates shall be as set forth in the Notes.

 

(6)             
Not applicable.

 

(7)             
The provisions of Article IV shall be applicable to the Notes.

 

(8)             
Not applicable.

 

(9)             
Not applicable.

 

(10)           
The Notes shall be in substantially the form of Exhibit A, which is incorporated
in and expressly made part of the Indenture.

 

(11)          
The Notes will be issued in the minimum denomination of €100,000 and integral multiples
of €1,000 in excess thereof.

 

(12)          
The Notes shall be issuable as Global Notes and the provisions of Article III shall
be applicable to the Notes. Each such Global Note shall be registered in the name of a nominee of the ICSDs, as Depositary, and
shall be deposited with the Common Depositary or its nominee. Beneficial interests in the Global Notes will be shown on, and transfers
will only be made through, the records maintained by the ICSDs and their Participants.

 

(13)          
Not applicable.

 

(14)          
Not applicable.

 

(15)          
The different Events of Default contained in Section 7.1 shall be applicable to the
Notes. The different covenants contained in Section 6.1 and 6.3 and the additional covenants contained in Section 6.2 shall
be applicable to the Notes.

 

(16)          
The Notes shall be denominated in euro.

 

(17)          
The provisions of Section 4.5 shall be applicable to the Notes.

 

(18)          
Not applicable.

 

(19)          
Not applicable.

 

(20)          
Not applicable.

 

(21)          
The Notes shall be unsecured.

 

    13

     

    

 

(22)          
The information describing book-entry procedures contained in Sections 3.2 and 3.3
shall be applicable to the Notes.

 

(23)          
The identity of the Guarantor shall be as set forth in the preamble and the terms of the
Note Guarantee shall be as set forth in Article V.

 

(24)          
Such other terms as set forth in this Supplemental Indenture shall be applicable to the
Notes.

 

SECTION 2.2                
Additional Notes.

 

The Issuers will be entitled, upon delivery
of an Officer’s Certificate and Authentication Order and without the consent of the Holders of the Notes, subject to compliance
with Section 6.2, to issue Additional Notes under the Indenture that will have identical terms to the Initial Notes issued on the
date of the Indenture other than with respect to the date of issuance and, under certain circumstances, the issue price and first
payment of interest thereon; provided that, if the Additional Notes are not fungible with the Initial Notes for U.S. federal
income tax purposes, the Additional Notes will have a separate CUSIP number. All the Notes issued under this Supplemental Indenture
will rank equally and ratably in right of payment and will be treated as a single series for all purposes of the Indenture. With
respect to any Additional Notes, the Issuers will set forth in a resolution of the Board of Directors of the Company and an Officer’s
Certificate, a copy of each of which will be delivered to the Trustee, the following information:

 

(1)              
the aggregate principal amount of such Additional Notes to be authenticated and delivered
pursuant to the Indenture; and

 

(2)              
the issue price, the issue date and the CUSIP number of such Additional Notes.

 

SECTION 2.3                
Security Registrar and Paying Agent.

 

(a)              
The Issuers and the Trustee hereby appoint Deutsche Bank Trust Company Americas to serve
as Security Registrar and Paying Agent for the Notes. Each Agent may perform any and all of its duties hereunder by or through
its affiliates and any one or more sub-agents appointed by it. The exculpatory and indemnity provisions of this Supplemental Indenture
shall apply to any such sub-agent and affiliates of the Agents. The Agents shall not be responsible for the negligence or misconduct
of any of its sub-agents absent negligence by the Agents (as determined by a court of competent jurisdiction) in the selection
of the applicable sub-agent.

 

(b)              
The Paying Agent agrees with the Trustee that:

 

(1)              
it will hold all sums held by it as such agent for the payment of the principal of (and
premium, if any) or interest on the Notes (whether such sums have been paid to it by the Issuers or by any other obligor of the
Notes) in trust for the benefit of the Persons entitled thereto;

 

    14

     

    

 

(2)              
it will give the Trustee notice of any failure by the Issuers (or by any other obligor of
the Notes) to make any payment of the principal of (and premium, if any) or interest on the Notes when the same shall be due and
payable;

 

(3)              
it will, at any time during the continuance of any failure referred to in the preceding
paragraph (b)(2) above, upon the written request of the Trustee, forthwith pay to the Trustee all sums so held in trust by such
Paying Agent; and

 

(4)              
it will perform all other duties of Paying Agent as set forth in this Supplemental Indenture.

 

(c)              
The Paying Agent shall not be responsible for determining, calculating or confirming any
amount, date or value related to the Notes. The Paying Agent shall not be responsible for the collection or withholding of taxes
due on any payments in respect of the Notes except, and only to the extent, required of it as Paying Agent by applicable law. Neither
Agent shall be required to expend or risk any of its own funds or otherwise incur any liability, financial or otherwise, in the
performance of any of its duties hereunder, if it shall have reasonable grounds for believing that repayment of such funds or indemnity
satisfactory to it against such risk or liability is not assured to it.

 

(d)              
Each Agent may conclusively rely and shall be fully protected in acting or refraining from
acting upon any resolution, certificate, statement, instrument, opinion, report, notice, request, consent, order, approval, bond,
security or other paper or document believed by it to be genuine and to have been signed or presented by the proper party or parties,
and neither Agent shall be bound to make any investigation into the facts or matters stated in any such resolution, certificate,
statement, instrument, opinion, report, notice, request, consent, order, approval, bond, security, or other papers or documents
delivered to it hereunder. Each Agent may consult with counsel of its choice (which may, but need not, be counsel to the Issuers
or the Trustee) and the written advice of such counsel shall be full and complete authorization and protection in respect of any
action taken or suffered or omitted hereunder in good faith and in reliance thereon. An Agent shall not be liable for any action
taken or omitted to be taken by it in good faith and believed by it to be authorized or within the discretion or rights or powers
conferred upon it by this Supplemental Indenture or the Base Indenture.

 

(e)              
An Agent shall not be liable for failing to perform its duties hereunder to the extent that
the Agent’s performance of such obligations is dependent upon the timely receipt of instructions and/or other information
from any party or person which are not received or not received by the time required. Without limiting the foregoing, the Paying
Agent shall have no obligation to make any payments hereunder unless the Issuers have provided or caused to be provided the necessary
immediately available funds and complete directions to pay the full amounts due and payable with respect thereto.

 

(f)                The
Agents shall not be liable for any special, indirect, punitive or consequential losses or damages (including without
limitation lost profits) even if the Agents have been advised of the possibility of such loses or damages and regardless of
the form of the action. In no event shall an Agent be responsible or liable for any failure or delay in the performance of
its obligations under this Supplemental Indenture arising out of or caused by, directly or indirectly, forces beyond its
reasonable control, including strikes, work stoppages, accidents, acts of war or terrorism, civil or military
disturbances, nuclear or natural catastrophes or acts of God, and interruptions, loss or malfunctions of utilities,
communications or computer (software or hardware) services or the unavailability of the Federal Reserve Bank or wire or telex
or other wire or communication facility.

 

    15

     

    

 

(g)              
The Agents shall be fully justified in failing or refusing to take any action under this
Supplemental Indenture if such action (i) would, in the reasonable opinion of the Agent (which may, but need not, be based on the
advice or opinion of counsel), be contrary to applicable law, this Supplemental Indenture or the Base Indenture, or (ii) is not
provided for in this Supplemental Indenture.

 

(h)              
Each Issuer covenants and agrees to pay to each Agent, and each Agent shall be entitled
to, such compensation as the Issuers and such Agent may from time to time agree in writing, for all services rendered by such Agent
in the performance of any of its duties hereunder, and the Issuers will pay or reimburse each Agent upon its request for all reasonable
expenses, disbursements and advances incurred or made by such Agent (including the reasonable compensation and the expenses and
disbursements of its counsel and of all Persons not regularly in its employ). Each Issuer also covenants to indemnify each Agent
(and each of their respective officers, agents, directors and employees) for, and to hold it harmless against, any loss, liability
or expense (including reasonable attorney’s fees and expenses, and fees and expenses incurred in enforcing this indemnity)
incurred without negligence on the part of such Agent as adjudicated by a court of competent jurisdiction and arising out of or
in connection with the performance of its duties hereunder. The provisions of this Section 2.3(h) shall survive the resignation
or termination of either Agent and the termination or satisfaction of this Supplemental Indenture and the Base Indenture.

 

(i)                
An Agent each may resign at any time by giving no less than 60 days written notice
to the Issuers and the Trustee. The Issuers may terminate either Agent at any time by giving not less than 60 days written
notice to such Agent and specifying the date when the termination shall become effective. Upon termination of an Agent pursuant
to the provisions of this Section 2.3(i), the resigning or terminated Agent (i) shall be entitled to the payment of any compensation
owed to it hereunder for performance of services hereunder up to and including the date of such termination and (ii) shall have
no further duties, responsibilities or obligations hereunder. Any entity into which an Agent may be merged or converted or with
which it may be consolidated, or any entity resulting from any merger, conversion or consolidation to which an Agent is a party,
or any entity succeeding to all or substantially all the corporate trust or agency business of an Agent, shall be the successor
of the Agent hereunder; provided that such successor entity shall be otherwise eligible under this Supplemental Indenture
to act as a successor Agent, without the execution or filing of any paper or any further act on the part of any of the parties
hereto.

 

(j)                 In
order to comply with the laws, rules, regulations and executive orders in effect from time to time applicable to banking
institutions, including, without limitation, those relating to the funding of terrorist activities and money laundering,
including Section 326 of the USA PATRIOT Act of the United States, the Agents are required to obtain, verify, record and
update certain information relating to individuals and entities which maintain a business relationship with
Agents. Accordingly, each of the parties agree to provide to the Agents, upon its request from time to time such identifying
information and documentation as may be available for such party in order to enable the Agents to comply with such laws,
rules, regulations and executive orders.

 

    16

     

    

 

SECTION 2.4                
Certain Notes Owned by Issuers Disregarded.

 

This Section 2.4 replaces Section 8.4 of the
Base Indenture with respect to the Notes only.

 

In determining whether the Holders of the
required principal amount of Outstanding Notes have given any request, demand, authorization, direction, notice, consent or waiver,
Notes owned by the Issuers, or any other obligor upon the Notes or any affiliate of the Company or of the other obligor shall be
disregarded and be considered as though not Outstanding, except that for the purposes of determining whether the Trustee will be
protected in relying on any such request, demand, authorization, direction, notice, consent or waiver, only Notes that the Trustee
knows are so owned will be so disregarded.

 

ARTICLE
III

FORM OF THE NOTES

 

SECTION 3.1                
Global Form.

 

The Notes shall initially be issued in the
form of one or more permanent Global Notes. The Notes shall not be issuable in definitive form except as provided in Section 3.2(a)
of this Supplemental Indenture. The Notes and the Trustee’s certificate of authentication shall be substantially in the form
attached as Exhibit A hereto. The Issuers shall execute, the Trustee shall, in accordance with Sections 2.4 and 2.11
of the Base Indenture, authenticate each Global Note and the Common Depositary or the nominee of the Common Depositary shall hold
each Global Note as custodian for the Depositary. Each Global Note will represent such of the Outstanding Notes as will be specified
therein and each shall provide that it represents the aggregate principal amount of Outstanding Notes from time to time endorsed
thereon and that the aggregate principal amount of Outstanding Notes represented thereby may from time to time be reduced or increased,
as appropriate, to reflect exchanges and redemptions. Any endorsement of a Global Note to reflect the amount of any increase or
decrease in the aggregate principal amount of Outstanding Notes represented thereby will be made by the Trustee or the Custodian,
at the direction of the Trustee. The terms and provisions contained in the form of Note attached as Exhibit A hereto shall
constitute, and are hereby expressly made, a part of the Indenture and, to the extent applicable, the Issuers and the Trustee,
by their execution and delivery of this Supplemental Indenture, expressly agree to such terms and provisions and to be bound thereby.

 

So long as the Notes are eligible for book-entry
settlement with Euroclear and Clearstream, or unless otherwise required by law, or otherwise contemplated herein, the Notes shall
be represented by one or more Notes in global form registered in the name of a nominee of the ICSDs, as Depositary, and shall be
deposited with the Common Depositary or its nominee.

 

    17

     

    

 

SECTION 3.2                
Transfer and Exchange.

 

(a)              
Transfer and Exchange of Global Notes. The following provisions shall apply only
to a Global Note: (i) each Global Note authenticated under this Supplemental Indenture shall be registered in the name of a nominee
of the ICSDs, as Depositary, and deposited with, the Common Depositary or its nominee, and each such Global Note shall constitute
a single Note, for the applicable series, for all purposes of the Indenture and this Supplemental Indenture and (ii) Global Notes
may only be transferred, in whole or in part, to, and registered in the name of a nominee of the ICSDs, as Depositary, and deposited
with, the Common Depositary or a nominee thereof. All Global Notes will be exchanged by the Issuers for Definitive Notes if:

 

(1)              
an Event of Default has occurred and is continuing;

 

(2)              
either Euroclear or Clearstream is closed for business for a continuous period of 14 days
or more (other than by reason of holiday, statutory or otherwise) or announces an intention permanently to cease business or does
in fact do so and no alternative clearing system satisfactory to the Trustee is available; or

 

(3)              
the Issuers would suffer a disadvantage as a result of a change in laws or regulations (taxation
or otherwise) or as a result of a change in the practice of Euroclear and/or Clearstream which would not be suffered were the applicable
series of Notes in definitive form and a certificate to such effect signed by an authorized signatory of the Company is given to
the Trustee.

 

Upon the occurrence of either of the preceding
events in (1) or (2) above, the Holder of a Global Note (acting on behalf of one or more of the accountholders) or the Trustee
may give notice to the Company and, in the case of (3) above, the Issuers may give notice to the Trustee and the Holders of the
applicable series of Notes, of their intention to exchange a Global Note for Definitive Notes on or after the Exchange Date (as
defined below). For these purposes, “Exchange Date” means a day specified in the notice requiring exchange falling
not less than 60 days after that on which the notice requiring exchange is given and being a day on which banks are open for
general business in London, the place in which the specified office of the Trustee is located and, except in case of exchange pursuant
to (2) above, in the place in which Euroclear and Clearstream are located.

 

In all cases, Definitive Notes delivered in
exchange for any Global Note or beneficial interest in any Global Note will be registered in the names, and issued in any approved
denominations, requested by or on behalf of the Holder of the relevant Global Notes; provided that the denomination of any Definitive
Notes may not, at any time, be less than €100,000. Neither the Issuers nor the Trustee will be liable for any delay by the
Holder of the relevant Global Notes identifying the Holders of beneficial interests in the Global Notes, and each such person may
conclusively rely on, and will be protected in relying on, instructions from Euroclear or Clearstream for all purposes (including
with respect to the registration and delivery, and the respective principal amounts, of the Definitive Notes to be issued).

 

    18

     

    

 

Global Notes also may be exchanged or replaced,
in whole or in part, as provided in Sections 2.6 and 2.7 of the Base Indenture. Every Note authenticated and delivered in
exchange for, or in lieu of, a Global Note or any portion thereof, pursuant to this Section 3.2 or Section 2.6 and 2.7 of the Base
Indenture, shall be authenticated and delivered in the form of, and shall be, a Global Note. A Global Note may not be exchanged
for another Note other than as provided in this Section 3.2(a), however, beneficial interests in a Global Note may be transferred
and exchanged as provided in Section 3.2(c) or 3.2(d).

 

(b)              
Legend. Any Global Note issued under this Supplemental Indenture shall bear a legend
in substantially the following form:

 

“THIS GLOBAL NOTE IS A GLOBAL SECURITY WITHIN THE
MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITARY OR A NOMINEE THEREOF. THIS GLOBAL
NOTE MAY NOT BE EXCHANGED IN WHOLE OR IN PART FOR A NOTE REGISTERED, AND NO TRANSFER OF THIS GLOBAL NOTE IN WHOLE OR IN PART MAY
BE REGISTERED, IN THE NAME OF ANY PERSON OTHER THAN SUCH DEPOSITARY OR A NOMINEE THEREOF, EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED
IN THE INDENTURE.”

 

The following legend shall appear on the face of each Global
Note for which Euroclear and Clearstream are to be the Depositary:

 

“UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED
REPRESENTATIVE OF EUROCLEAR BANK SA/NV (“EUROCLEAR”) OR CLEARSTREAM BANKING S.A. (“CLEARSTREAM” AND, TOGETHER
WITH EUROCLEAR, “EUROCLEAR/CLEARSTREAM”), TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT,
AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF THE COMMON DEPOSITARY OR ITS NOMINEE, OR IN SUCH OTHER NAME AS MAY BE REQUESTED
BY AN AUTHORIZED REPRESENTATIVE OF EUROCLEAR/CLEARSTREAM (AND ANY PAYMENT IS MADE TO THE COMMON DEPOSITARY OT ITS NOMINEE OR TO
SUCH OTHER ENTITY AS MAY BE REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF EUROCLEAR/CLEARSTREAM), ANY TRANSFER, PLEDGE OR OTHER
USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, THE COMMON DEPOSITARY
OR ITS NOMINEE, HAS AN INTEREST HEREIN.”

 

(c)              
Transfer and Exchange of Beneficial Interests in the Global Notes. The transfer and
exchange of beneficial interests in the Global Notes will be effected through the Depositary, in accordance with the provisions
of the Indenture and the Applicable Procedures. Transfers of beneficial interests in the Global Notes will require compliance with
either subparagraph (1) or (2) below, as applicable, as well as one or more of the other following subparagraphs, as applicable:

 

    19

     

    

 

(1)              
Transfer of Beneficial Interests in the Same Global Note. Beneficial interests in
any Global Note may be transferred to Persons who take delivery thereof in the form of a beneficial interest in a Global Note.
No written orders or instructions shall be required to be delivered to the Security Registrar to effect the transfers described
in this Section 3.2(c)(1).

 

(2)              
All Other Transfers of Beneficial Interests in Global Notes. In connection with all
transfers of beneficial interests that are not subject to Section 3.2(c)(1) above, the transferor of such beneficial interest
must deliver to the Security Registrar both:

 

(i)                
a written order from a Participant or an Indirect Participant given to the Depositary in
accordance with the Applicable Procedures directing the Depositary to credit or cause to be credited a beneficial interest in another
Global Note in an amount equal to the beneficial interest to be transferred or exchanged; and

 

(ii)              
instructions given in accordance with the Applicable Procedures containing information regarding
the Participant account to be credited with such increase.

 

Upon satisfaction of all of the requirements for transfer or
exchange of beneficial interests in Global Notes contained in the Indenture and the Notes or otherwise applicable under the Securities
Act, the Trustee or the Common Depositary, as custodian of the Depositary, at the direction of the Trustee, shall adjust the principal
amount of the relevant Global Note(s) pursuant to Section 3.2(g).

 

(d)              
Transfer and Exchange of Beneficial Interests in Global Notes for Definitive Notes.
If any holder of a beneficial interest in a Global Note proposes to exchange such beneficial interest for a Definitive Note or
to transfer such beneficial interest to a Person who takes delivery thereof in the form of a Definitive Note, then, upon satisfaction
of the conditions set forth in Section 3.2(c)(2), the Trustee will cause the aggregate principal amount of the applicable Global
Note to be reduced accordingly pursuant to Section 3.2(g), and the Issuers will execute and the Trustee will authenticate and deliver
to the Person designated in the instructions a Definitive Note in the appropriate principal amount. Any Definitive Note issued
in exchange for a beneficial interest pursuant to this Section 3.2(d) will be registered in such name or names and in such authorized
denomination or denominations as the holder of such beneficial interest requests through instructions to the Security Registrar
from or through the Depositary and the Participant or Indirect Participant. The Trustee will deliver such Definitive Notes to the
Persons in whose names such Notes are so registered.

 

(e)              
Transfer and Exchange of Definitive Notes for Beneficial Interests in Global Notes.
A Holder of a Definitive Note may exchange such Note for a beneficial interest in a Global Note or transfer such Definitive Notes
to a Person who takes delivery thereof in the form of a beneficial interest in a Global Note at any time. Upon receipt of a request
for such an exchange or transfer, the Trustee will cancel the applicable Definitive Note and increase or cause to be increased
the aggregate principal amount of one of the Global Notes.

 

    20

     

    

 

 

 

If any such exchange or transfer from a Definitive
Note to a beneficial interest is effected pursuant to the previous paragraph at a time when a Global Note has not yet been issued,
the Issuers will issue and, upon receipt of an Authentication Order, the Trustee will authenticate one or more Global Notes in
an aggregate principal amount equal to the principal amount of Definitive Notes so transferred.

 

(f)               
Transfer and Exchange of Definitive Notes for Definitive Notes. Upon request by a
Holder of Definitive Notes and such Holder’s compliance with the provisions of this Section 3.2(f), the Security Registrar
will register the transfer or exchange of Definitive Notes. Prior to such registration of transfer or exchange, the requesting
Holder will present or surrender to the Security Registrar the Definitive Notes duly endorsed or accompanied by a written instruction
of transfer in form satisfactory to the Security Registrar duly executed by such Holder or by his attorney, duly authorized in
writing. A Holder of Definitive Notes may transfer such Notes to a Person who takes delivery thereof in the form of a Definitive
Note. Upon receipt of a request to register such a transfer, the Security Registrar shall register the Definitive Notes pursuant
to the instructions from the Holder thereof.

 

(g)              
Cancellation and/or Adjustment of Global Notes. At such time as all beneficial interests
in a particular Global Note have been exchanged for Definitive Notes or a particular Global Note has been redeemed, repurchased
or canceled in whole and not in part, each such Global Note will be returned to or retained and canceled by the Trustee in accordance
with Section 2.8 of the Base Indenture. At any time prior to such cancellation, if any beneficial interest in a Global Note is
exchanged for or transferred to a Person who will take delivery thereof in the form of a beneficial interest in another Global
Note or for Definitive Notes, the principal amount of Notes represented by such Global Note will be reduced accordingly and an
endorsement will be made on such Global Note by the Trustee or by the Common Depositary at the direction of the Trustee to reflect
such reduction; and if the beneficial interest is being exchanged for or transferred to a Person who will take delivery thereof
in the form of a beneficial interest in another Global Note, such other Global Note will be increased accordingly and an endorsement
will be made on such Global Note by the Trustee or by the Common Depositary at the direction of the Trustee to reflect such increase.

 

SECTION 3.3                
General Provisions Relating to Transfers and Exchanges.

 

(a)              
To permit registrations of transfers and exchanges, the Issuers will execute and the Trustee
will authenticate Global Notes and Definitive Notes upon receipt of an Authentication Order or at the Security Registrar’s
request.

 

(b)              
No service charge will be made to a Holder of a beneficial interest in a Global Note or
to a Holder of a Definitive Note for any registration of transfer or exchange, but the Issuers may require payment of a sum sufficient
to cover any transfer tax or similar governmental charge payable in connection therewith (other than any such transfer taxes or
similar governmental charge payable upon exchange or transfer pursuant to Sections 4.3(b) and 9.4 and Section 2.6 of
the Base Indenture).

 

    21 

     

    

 

(c)              
The Security Registrar will not be required to register the transfer of or exchange of any
Note selected for redemption in whole or in part, except the unredeemed portion of any Note being redeemed in part.

 

(d)              
All Global Notes and Definitive Notes issued upon any registration of transfer or exchange
of Global Notes or Definitive Notes will be the valid obligations of the Issuers, evidencing the same debt, and entitled to the
same benefits under the Indenture, as the Global Notes or Definitive Notes surrendered upon such registration of transfer or exchange.

 

(e)              
This Section 3.3(e) shall replace Section 2.5(d) of the Base Indenture.

 

Neither the Security Registrar nor the Issuers
will be required:

 

(1)              
to issue, register the transfer of or to exchange any Note during a period beginning at
the opening of business 15 days before any selection of Notes for redemption under Article IV and ending at the close of business
on the earliest date on which the relevant notice of redemption is deemed to have been given to all Holders of Notes to be so redeemed;
or

 

(2)              
to register the transfer of or to exchange any Note so selected for redemption in whole
or in part, except the unredeemed portion of any Note being redeemed in part; or

 

(3)              
to register the transfer of or to exchange a Note between a record date and the next succeeding
Interest Payment Date.

 

(f)               
Prior to due presentment for the registration of a transfer of any Note, the Trustee, any
Agent and the Issuers may deem and treat the Person in whose name any Note is registered as the absolute owner of such Note for
the purpose of receiving payment of principal of and interest on such Notes and for all other purposes, and none of the Trustee,
any Agent or the Issuers shall be affected by notice to the contrary.

 

(g)              
The Trustee will authenticate Global Notes and Definitive Notes in accordance with the provisions
of Sections 2.4 and 2.11 of the Base Indenture.

 

(h)              
The transferor of any Note shall provide or cause to be provided to the Trustee all information
necessary to allow the Trustee to comply with any applicable tax reporting obligations, including without limitation any cost basis
reporting obligations under Section 6045 of the Code. The Trustee may rely on the information provided to it and shall have no
responsibility to verify or ensure the accuracy of such information.

 

(i)                
In connection with any proposed transfer outside the book-entry system, there shall be provided
to the Trustee all information necessary to allow the Trustee to comply with any applicable tax reporting obligations, including
without limitation any cost basis reporting obligations under Section 6045 of the Code. The Trustee may rely on the information
provided to it and shall have no responsibility to verify or ensure the accuracy of such information.

 

    22 

     

    

 

SECTION 3.4                   
Issuance in Euros.

 

Principal, premium, if any, and interest payments
and Additional Amounts, if any, in respect of each series of Notes will be payable in euros. If the euro is unavailable to the
Issuers due to the imposition of exchange controls or other circumstances beyond its control or the euro is no longer used by the
then member states of the European Monetary Union that have adopted the euro as their currency or for the settlement of transactions
by public institutions within the international banking community, then all payments in respect of each series of Notes will be
made in U.S. dollars until the euro is again available to the Issuers or so used. In such circumstances, the amount payable on
any date in euros will be converted to U.S. dollars on the basis of the most recently available market exchange rate for euros,
as determined by the Issuers in their sole discretion. Any payment in respect of each series of Notes so made in U.S. dollars will
not constitute an Event of Default. Neither the Trustee nor the Paying Agent will be responsible for obtaining exchange rates,
effecting conversions or otherwise handling redenominations.

 

SECTION 3.5               
    Payment.

 

The Issuers will make payments in respect
of each series of Notes represented by the Global Notes (including principal, premium, if any, and interest and Additional Amounts,
if any), in euros, except as provided in Section 3.4, by wire transfer of immediately available funds to the account specified
by the Paying Agent. At their option, the Issuers may cause payments in respect of Definitive Notes to be made by (1) check mailed
to the address of the person entitled thereto as such address shall appear in the Security Register on the record date or (2) wire
transfer as directed by the Holder of the relevant Notes, in immediately available funds to accounts maintained by the Holder of
Notes or its nominee; provided that in the case of a Definitive Note (x) the Holder thereof shall have provided written wiring
instructions to the Paying Agent on or before the related record date and (y) if appropriate instructions for any such wire transfer
are not received by the related record date, then such payment shall be made by check mailed to the address of such Holder specified
in the Security Register on the record date. With respect to Definitive Notes, payments of principal at maturity and payments upon
full redemption will be made by the Issuers against surrender of the relevant Definitive Note at the office of the Paying Agent.

 

If the
principal of or any premium or interest or Additional Amounts on the applicable series of Notes or amounts payable upon any redemption
of such Notes is payable on a day that is not a Payment Business Day, the payment will be made on the following Payment Business
Day without the accrual of any interest on that payment.

 

ARTICLE
IV

 

REDEMPTION OF THE NOTES

 

The provisions of Article III of the Base
Indenture, as amended by the provisions of this Supplemental Indenture, shall apply to the Notes. Sections 3.4, 3.5 and 3.6 of
the Base Indenture are not applicable to the Notes.

 

    23 

     

    

 

SECTION 4.1                  
Optional Redemption of the Notes.

 

The Issuers may redeem on any one or more
occasions some or all of the Notes before they mature. The redemption price (the “Optional Redemption Price”)
will equal the sum of (1) an amount equal to 100% of the principal amount of the Notes being redeemed plus accrued and unpaid interest
up to, but not including, the Redemption Date and (2) the Make-Whole Premium; provided that the Issuers will not redeem
the Notes on any date if the principal amount of the Notes has been accelerated, and such an acceleration has not been rescinded
or cured on or prior to such date. Notwithstanding the foregoing, if the Notes are redeemed on or after the Notes Par Call Date,
the Redemption Price will not include the Make-Whole Premium; provided, further, that, if the Redemption Date falls
after a record date and on or prior to the corresponding Interest Payment Date, the Issuers will pay the full amount of accrued
and unpaid interest and premium, if any, due on such Interest Payment Date to the Holder of record at the close of business on
the corresponding record date (instead of the Holder surrendering its Notes for redemption) and the Redemption Price shall not
include accrued and unpaid interest up to, but not including, the Redemption Date.

 

SECTION 4.2                  
Redemption for Tax Reasons.

 

If, as a result of any change in, or amendment
to, the laws (or any regulations or rulings promulgated under the laws) of the United States (or any taxing authority thereof or
therein), or any change in, or amendments to, an official position regarding the application or interpretation of such laws, regulations
or rulings, which change or amendment is announced or becomes effective on or after January 15, 2020, the Issuers become or, based
upon a written opinion of independent tax counsel of recognized standing selected by the Issuers, will become obligated to pay
Additional Amounts with respect to any series of Notes, then the Issuers may at their option redeem the Notes at any time, in whole,
but not in part, at a redemption price (the “Tax Redemption Price”, and together with the Optional Redemption
Price, each a “Redemption Price”) equal to 100% of the principal amount, together with accrued and unpaid interest
(including any Additional Amounts) on the Notes to, but excluding, the Redemption Date.

 

SECTION 4.3         
         Notice of Redemption; Selection of the
Notes.

 

(a)               In
the case of any redemption in accordance with Section 4.1 or Section 4.2, the Issuers will give each Holder of Notes to
be redeemed a notice in writing not less than 15 nor more than 60 days before the Redemption Date, (i) in the case of Notes
represented by a Global Note, to and through Euroclear or Clearstream for communication by them to the Holders of
interests in the Notes to be so redeemed, or (ii) in the case of Definitive Notes, to each Holder of record of the Notes to
be redeemed at its registered address, except that notices of redemption may be mailed or sent more than 60 days prior to a
Redemption Date if the notice is issued in connection with a defeasance of the Notes or a satisfaction and discharge of the
Indenture pursuant to Articles XI and XII with respect to the Notes. Notices given pursuant to this Section 4.3 may be
subject to one or more conditions precedent established by the Issuers in their sole discretion. The notice, if sent in the
manner herein provided, shall be conclusively presumed to have been duly given, whether or not the Holder receives such
notice. In any case, failure to give such notice by mail or any defect in the notice to the Holder of any Note designated for
redemption as a whole or in part shall not affect the validity of the proceedings for the redemption of any other Note.

 

    24 

     

    

 

(b)              
Each such notice of redemption shall specify: (i) the aggregate principal amount of Notes
to be redeemed, (ii) the CUSIP number or numbers, if any, of the Notes being redeemed, (iii) the Redemption Date, (iv) the Redemption
Price at which Notes are to be redeemed, (v) the place or places of payment and that payment will be made upon presentation and
surrender of such Notes and (vi) that interest accrued and unpaid to, but excluding, the Redemption Date will be paid as specified
in said notice, and that on and after said date interest thereon or on the portion thereof to be redeemed will cease to accrue.
If fewer than all the Notes are to be redeemed, the notice of redemption shall identify the Notes to be redeemed (including CUSIP
numbers, if any). In case any Note is to be redeemed in part only, the notice of redemption shall state the portion of the principal
amount thereof to be redeemed and shall state that, on and after the Redemption Date, upon surrender of such Note, a new Note or
Note in principal amount equal to the unredeemed portion thereof will be issued.

 

(c)              
On or prior to the Redemption Date specified in the notice of redemption given as provided
in this Section 4.3, the Issuers will deposit with the Paying Agent (or, if the Issuers are acting as their own Paying Agent,
set aside, segregate and hold in trust as provided in Section 4.2(d) of the Base Indenture) an amount of money in immediately
available funds sufficient to redeem on the Redemption Date all the Notes (or portions thereof) so called for redemption at the
appropriate Redemption Price; provided that, if such payment is made on the Redemption Date, it must be received by the
Paying Agent, by 11:00 a.m., London time, on such date. The Issuers shall be entitled to retain any interest, yield or gain on
amounts deposited with the Paying Agent pursuant to this Section 4.3 in excess of amounts required hereunder to pay the Redemption
Price.

 

(d)              
If less than all of the Outstanding Notes are to be redeemed, the Trustee shall select the
Notes or portions thereof of the Global Notes or the Notes in certificated form to be redeemed (in principal amounts of €100,000
and integral multiples of €1,000 in excess thereof) on a pro rata basis, by lot or by such other method the Trustee deems
fair and appropriate or as required by the Depositary for the Notes. The Notes (or portions thereof) so selected for redemption
shall be deemed duly selected for redemption for all purposes hereof.

 

    25 

     

    

 

SECTION 4.4                
Payment of the Notes Called for Redemption by the Issuers.

 

(a)               If
notice of redemption has been given as provided in Section 4.3 and the Trustee holds funds sufficient to pay the
Redemption Price of the Notes on the Redemption Date, the Notes or portion of Notes with respect to which such notice has
been given shall become due and payable on the Redemption Date and at the place or places stated in such notice at the
Redemption Price, and unless the Issuers shall default in the payment of such Notes at the Redemption Price, interest on the Notes or
portion of Notes so called for redemption shall cease to accrue on and after the Redemption Date and, on and after the
Redemption Date (unless the Issuers shall default in the payment of the Redemption Price) such Notes shall cease to be
Outstanding and cease to be entitled to any benefit or security under the Indenture, and the Holders thereof shall
have no right in respect of such Notes except the right to receive the Redemption Price thereof. On presentation and
surrender of such Notes at a place of payment in said notice specified, the said Notes or the specified portions thereof
shall be paid and redeemed by the Issuers at the Redemption Price, together with interest accrued thereon to, but excluding,
the Redemption Date.

 

(b)              
Upon presentation of any Note redeemed in part only, the Issuers shall execute and the Trustee
shall authenticate and make available for delivery to the Holder thereof, at the expense of the Issuers, a new Note or Notes, of
authorized denominations, in principal amount equal to the unredeemed portion of the Notes so presented.

 

SECTION 4.5           
Payment of Additional Amounts. All payments in respect of the Notes will
be made by or on behalf of the Issuers without withholding or deduction for, or on account of, any present or future taxes, duties,
assessments or governmental charges of whatever nature, imposed or levied by the United States or any taxing authority thereof
or therein, unless such withholding or deduction is required by law. If such withholding or deduction
is required by law, the Issuers will, subject to the exceptions and limitations set forth below, pay as additional interest on
the Notes such additional amounts (the “Additional Amounts”) as are necessary in order that the net amount
of the principal of, and premium, if any, and interest on such Notes received by a beneficial owner who is not a U.S. person (as
defined below), after withholding or deduction for any future tax, duty, assessment or other governmental charge imposed by the
United States or a taxing authority in the United States and as required by law, will not be less than the amount provided in
the Notes to be then due and payable; provided, however, that the foregoing obligation to pay Additional Amounts shall not apply:

 

(a)              
to any tax, assessment or other governmental charge that would not have been imposed but
for the beneficial owner, or a fiduciary, settlor, beneficiary, member or shareholder of the beneficial owner if the beneficial
owner is an estate, trust, partnership or corporation, or a person holding a power over an estate or trust administered by a fiduciary
holder, being considered as:

 

(1)              
having a current or former connection with the United States (other than a connection arising
solely as a result of the ownership of such Notes, the receipt of any payment or the enforcement of any rights thereunder), including
being or having been a citizen or resident of the United States, or being or having been engaged in a trade or business in the
United States or having or having had a permanent establishment in the United States;

 

(2)              
being a controlled foreign corporation related to either Issuer directly, indirectly or
constructively through stock ownership for U.S. federal income tax purposes; or

 

(3)              
being an owner of a 10% or greater interest in voting stock of Holdings or the Co-Issuer
or the partnership interests of the Company, each within the meaning of Section 871(h)(3) of the U.S. Internal Revenue Code of
1986, as amended (the “Code”), or any successor provision;

 

    26 

     

    

 

(b)              
to any Holder that is not the sole beneficial owner of such Notes, or a portion of such
Notes, or that is a fiduciary, partnership or limited liability company, but only to the extent that a beneficiary or settlor with
respect to the fiduciary, a beneficial owner or a member of the partnership or limited liability company would not have been entitled
to the payment of an Additional Amount had the beneficiary, settlor, beneficial owner or member received directly from each Issuer
its beneficial or distributive share of the payment;

 

(c)              
to any tax, assessment or other governmental charge imposed by reason of the Holder’s
or beneficial owner’s past or present status as a passive foreign investment company, a controlled foreign corporation, a
foreign tax exempt organization or a personal holding company with respect to the United States or as a corporation that accumulates
earnings to avoid U.S. federal income tax; 

 

(d)              
to any tax, assessment or other governmental charge that would not have been imposed but
for the failure of the Holder or beneficial owner of the applicable Notes to comply with any applicable certification, identification
or information reporting requirements concerning the nationality, residence, identity or connection with the United States of the
Holder or beneficial owner of such Notes, if compliance is required by statute, by regulation of the United States or any taxing
authority therein or by an applicable income tax treaty to which the United States is a party as a precondition to exemption from
such tax, assessment or other governmental charge; 

 

(e)              
to any tax, assessment or other governmental charge that is imposed otherwise than by withholding
or deducting from the payment; 

 

(f)               
to any estate, inheritance, gift, sales, transfer, wealth, capital gains or personal property
tax or similar tax, assessment or other governmental charge; 

 

(g)              
to any tax, assessment or other governmental charge required to be withheld by any paying
agent from any payment of principal of or interest on any such Note, if such payment can be made without such withholding by at
least one other paying agent; 

 

(h)              
to any tax, assessment or other governmental charge that is imposed or withheld solely by
reason of a change in law, regulation, or administrative or judicial interpretation that becomes effective more than 15 days after
the payment becomes due or is duly provided for, whichever occurs later; 

 

(i)                
to any tax, assessment or other governmental charge that would have been imposed but for
presentation by the Holder of any Note, where presentation is required, for payment on a date more than 30 days after the date
on which payment became due and payable or the date on which payment thereof is duly provided for, whichever occurs later, except
to the extent that the Holder or beneficial owner thereof would have been entitled to Additional Amounts had the Note been presented
for payment on the last day of such 30 day period;

 

    27 

     

    

 

(j)                
to any withholding or deduction that is imposed on a payment pursuant to Sections 1471
through 1474 of the Code and related United States Treasury regulations and pronouncements or any successor provisions thereto
(that are substantively comparable and not materially more onerous to comply with) and any regulations or official law, agreement
or interpretations thereof in any jurisdiction implementing an intergovernmental approach thereto; or

 

(k)              
in the case of any combination of the above listed items.

 

Except as specifically provided under this
Section 4.5, the Issuers shall not be required to make any payment for any present or future tax, duty, assessment or governmental
charge of whatever nature imposed by any government or a political subdivision or taxing authority of or in any government or political
subdivision.

 

As used in this Section 4.5, the term “United
States” means the United States of America, the states of the United States, and the District of Columbia, and the term
“U.S. person” means (i) any individual who is a citizen or resident of the United States for U.S. federal income
tax purposes, (ii) a corporation, partnership or other entity created or organized in or under the laws of the United States, any
state thereof or the District of Columbia (other than a partnership that is not treated as a U.S. person for U.S. federal income
tax purposes), (iii) any estate the income of which is subject to U.S. federal income taxation regardless of its source or (iv)
any trust if a U.S. court can exercise primary supervision over the administration of the trust and one or more U.S. persons can
control all substantial trust decisions, or if a valid election is in place to treat the trust as a U.S. person.

 

ARTICLE
V

 

NOTE GUARANTEE

 

SECTION 5.1         
         Note Guarantee.

 

(a)              
Subject to this Article V, the Guarantor unconditionally guarantees to each Holder of a
Note authenticated and delivered by the Trustee and to the Trustee and its successors and assigns, irrespective of the validity
and enforceability of this Supplemental Indenture or the Notes as against either of the Issuers or the obligations of the Issuers
hereunder or thereunder, that:

 

(1)              
the principal of, premium, if any, on, and interest on the Notes will be promptly paid in
full when due, whether at Stated Maturity, by acceleration, redemption, repurchase or otherwise, and interest on the overdue principal
of, premium on, if any, and interest on the Notes, if lawful, and all other obligations of the Issuers to the Holders or the Trustee
hereunder or thereunder will be promptly paid in full or performed, all in accordance with the terms hereof and thereof; and

 

(2)              
in case of any extension of time of payment or renewal of any Notes or any of such other
obligations, that same will be promptly paid in full when due or performed in accordance with the terms of the extension or renewal,
whether at Stated Maturity, by acceleration or otherwise.

 

Failing payment when due of any amount so
guaranteed or any performance so guaranteed for whatever reason, the Guarantor will be obligated to pay the same immediately. The
Guarantor agrees that this is a guarantee of payment and not a guarantee of collection.

 

    28 

     

    

 

(b)              
The Guarantor hereby agrees that its obligations hereunder are unconditional, irrespective
of the validity, regularity or enforceability of the Notes or this Supplemental Indenture as against either of the Issuers, the
absence of any action to enforce the same, any waiver or consent by any Holder of the Notes with respect to any provisions hereof
or thereof, the recovery of any judgment against the Issuers, any action to enforce the same or any other circumstance which might
otherwise constitute a legal or equitable discharge or defense of a guarantor. The Guarantor hereby waives diligence, presentment,
demand of payment, filing of claims with a court in the event of insolvency or bankruptcy of either of the Issuers, any right to
require a proceeding first against the Issuers, protest, notice and all demands whatsoever and covenant that the Note Guarantee
will not be discharged except by complete performance of the obligations contained in the Notes and this Supplemental Indenture.

 

(c)              
If any Holder or the Trustee is required by any court or otherwise to return to the Issuers,
the Guarantor or any custodian, trustee, liquidator or other similar official acting in relation to either the Issuers or the Guarantor
any amount paid by either to the Trustee or such Holder, the Note Guarantee, to the extent theretofore discharged, shall be reinstated
in full force and effect.

 

(d)              
The Guarantor agrees that it shall not be entitled to any right of subrogation in relation
to the Holders in respect of any obligations guaranteed hereby until payment in full of all obligations guaranteed hereby. The
Guarantor further agrees that, as between the Guarantor, on the one hand, and the Holders and the Trustee, on the other hand, (1)
the maturity of the obligations guaranteed hereby may be accelerated as provided in Article VII for the purposes of the Note Guarantee,
notwithstanding any stay, injunction or other prohibition preventing such acceleration in respect of the obligations guaranteed
hereby, and (2) in the event of acceleration of such obligations as provided in Article VII, such obligations (whether or not due
and payable) shall forthwith become due and payable by the Guarantor for the purpose of the Note Guarantee.

 

SECTION 5.2                
Limitation on Guarantor Liability.

 

The Guarantor, and by its acceptance of Notes,
each Holder, hereby confirms that it is the intention of all such parties that the Note Guarantee of the Guarantor not constitute
a fraudulent transfer or conveyance for purposes of Bankruptcy Law, the Uniform Fraudulent Conveyance Act, the Uniform Fraudulent
Transfer Act or any similar federal or state law to the extent applicable to any Note Guarantee. To effectuate the foregoing intention,
the Trustee, the Holders and the Guarantor hereby irrevocably agree that the obligations of the Guarantor will be limited to the
maximum amount that shall, after giving effect to such maximum amount and all other contingent and fixed liabilities of the Guarantor
that are relevant under such laws, result in the obligations of the Guarantor under the Note Guarantee not constituting a fraudulent
transfer or conveyance.

 

SECTION 5.3                
Execution and Delivery of Note Guarantee.

 

To evidence the Note Guarantee set forth in
5.1, the Guarantor hereby agrees that this Supplemental Indenture shall be executed on behalf of the Guarantor by one of its Authorized
Officers.

 

    29 

     

    

 

If an Authorized Officer whose signature is
on this Supplemental Indenture no longer holds that office at the time the Trustee authenticates the Note on which the Note Guarantee
is endorsed, the Note Guarantee will be valid nevertheless.

 

The delivery of any Note by the Trustee, after
the authentication thereof hereunder, shall constitute due delivery of the Note Guarantee set forth in this Supplemental Indenture
on behalf of the Guarantor with respect to such Note.

 

ARTICLE
VI

 

ADDITIONAL COVENANTS

 

This Article VI shall delete Section 4.4 of
the Base Indenture with respect to the Notes only. The following additional covenants shall apply with respect to the Notes so
long as any of the Notes remain Outstanding:

 

SECTION 6.1                
Reports.

 

This Section 6.1 shall replace Section 5.3
of the Base Indenture.

 

(a)              
For so long as the Notes are Outstanding and the Guarantor is subject to Section 13 or 15(d)
of the Exchange Act, the Guarantor shall, to the extent permitted under the Exchange Act, file with the Commission the annual reports,
quarterly reports and current reports that the Guarantor is required to file with the Commission pursuant to such Section 13 or
15(d), such documents to be filed with the Commission on or prior to the respective dates (the “Required Filing Dates”)
by which the Guarantor is required to file such documents. The Guarantor will be deemed to have furnished such reports to the Trustee
if it has filed such reports with the Commission using the EDGAR filing system and such reports are publicly available.

 

(b)              
For so long as the Notes are Outstanding and the Guarantor is not subject to Section 13
or 15(d) of the Exchange Act for any reason, the Guarantor shall, at its option, either (i) post on a publicly available website,
(ii) post on IntraLinks or any comparable password protected online data system requiring user identification and a confidentiality
acknowledgement (a “Confidential Datasite”), or (iii) deliver to the Trustee and the Holders within 15 days
of the Required Filing Date that would be applicable to a non-accelerated filer at that time pursuant to applicable Commission
rules and regulations, the quarterly and audited annual financial statements that would have been required to be contained in quarterly
reports on Form 10-Q and annual reports on Form 10-K, respectively, had the Guarantor been subject to Section 13 or 15(d) of the
Exchange Act.

 

(c)              
Notwithstanding the foregoing, the reports and financial statements required to be provided
by this Section 6.1 may be those of (i) the Guarantor or (ii) any direct or indirect parent of the Guarantor rather than those
of the Guarantor; provided that the same is accompanied by consolidating information that explains in reasonable detail
the differences between the information relating to such direct or indirect parent, on the one hand, and the information relating
to the Guarantor and its Subsidiaries on a standalone basis, on the other hand.

 

    30 

     

    

 

(d)              
Delivery of reports and financial statements to the Trustee under this Section 6.1 is for
informational purposes only and the Trustee’s receipt of such shall not constitute constructive notice of any information
contained therein or determinable from information contained therein, including the Company’s compliance with any of the
covenants thereunder (as to which the Trustee is entitled to rely conclusively on an Officer’s Certificate). The Trustee
shall have no liability or responsibility for the filing, timeliness or content of any such report.

 

(e)              
Notwithstanding anything herein to the contrary, the Guarantor shall not be deemed to have
failed to comply with any provision of this Section 6.1 for purposes of Section 7.1(c) as a result of the late filing or provision
of any required information or report until 90 days after the date any such information or report was due. To the extent any information
is not provided within the time periods specified in this Section 6.1 and such information is subsequently provided, the Guarantor
will be deemed to have satisfied its obligations with respect thereto at such time and any Default or Event of Default with respect
thereto shall be deemed to have been cured.

 

SECTION 6.2                
Limitations on Incurrence of Indebtedness.

 

(a)              
The Company shall not, and shall not permit any of its Subsidiaries to, Incur any Indebtedness,
other than Intercompany Indebtedness and guarantees of Indebtedness Incurred by the Company or any of its Subsidiaries in compliance
with the Indenture, if, immediately after giving effect to the Incurrence of such Indebtedness and the application of the proceeds
thereof, Total Outstanding Indebtedness would be greater than 60% of Total Assets as of the end of the fiscal quarter covered in
the annual or quarterly report most recently furnished to Holders of the Notes or filed with the Commission, as the case may be,
in accordance with Section 6.1, prior to such time.

 

(b)              
The Company shall not, and shall not permit any of its Subsidiaries to, Incur any Secured
Indebtedness, other than guarantees of Secured Indebtedness Incurred by the Company or any of its Subsidiaries in compliance with
the Indenture, if, immediately after giving effect to the Incurrence of such Secured Indebtedness and the application of the proceeds
thereof, the aggregate principal amount of Secured Indebtedness would be greater than 40% of Total Assets as of the end of the
fiscal quarter covered in the annual or quarterly report most recently furnished to Holders of the Notes or filed with the Commission,
as the case may be, in accordance with Section 6.1, prior to such time.

 

(c)              
The Company shall not, and shall not permit any of its Subsidiaries to, Incur any Indebtedness
other than Intercompany Indebtedness and guarantees of Indebtedness Incurred by the Company or any of its Subsidiaries in compliance
with the Indenture, if the ratio of Consolidated EBITDA to Interest Expense for the most recent quarterly period covered in the
annual or quarterly report most recently furnished to Holders or filed with the Commission, as the case may be, in accordance with
Section 6.1, prior to such time, annualized (i.e., multiplied by four (4)) prior to the date on which such additional Indebtedness
is to be Incurred shall have been less than 1.50:1.00 on a pro forma basis after giving effect thereto and to the application of
the proceeds therefrom, and calculated on the assumption that:

 

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(1)              
such Indebtedness and any other Indebtedness Incurred by the Company and its Subsidiaries
since the first day of such quarterly period and the application of the proceeds therefrom, including to refinance other Indebtedness,
had occurred at the beginning of such period;

 

(2)              
the repayment or retirement of any Indebtedness (other than Indebtedness repaid or retired
with the proceeds of any other Indebtedness, which repayment or retirement shall be calculated pursuant to the preceding clause
(1) and not this clause (2)) by the Company and its Subsidiaries since the first day of such quarterly period had been repaid or
retired at the beginning of such period (except that, in making such computation, the amount of Indebtedness under any revolving
credit facility shall be computed based upon the average daily balance of such Indebtedness during such period);

 

(3)              
in the case of Acquired Indebtedness or Indebtedness Incurred in connection with any acquisition
since the first day of such quarterly period, the related acquisition had occurred as of the first day of such period with the
appropriate adjustments with respect to such acquisition being included in such pro forma calculation; and

 

(4)              
in the case of any acquisition or disposition of any asset or group of assets or the placement
of any assets in service or removal of any assets from service by the Company or any of its Subsidiaries from the first day of
such quarterly period to the date of determination, including by merger, or stock or asset purchase or sale, the acquisition, disposition,
placement in service or removal from service had occurred as of the first day of such period, with appropriate adjustments to Interest
Expense with respect to the acquisition, disposition, placement in service or removal from service being included in that pro forma
calculation.

 

With respect to any calculation required to
be made pursuant to the terms of the Indenture, for the avoidance of doubt any financial information for the most recent quarterly
period covered in the Guarantor’s annual report most recently furnished to Holders or filed with the Commission, as the case
may be, in accordance with Section 6.1, but not contained in such annual report shall be calculated by the Company based on information
reasonably derived from the Guarantor’s accounting records.

 

(d)              
The Company and its Subsidiaries shall at all times maintain Total Unencumbered Assets of
not less than 150% of the aggregate outstanding principal amount of Unsecured Indebtedness.

 

SECTION 6.3                
Compliance Certificates.

 

This Section 6.3 shall replace Section 14.12
of the Base Indenture with respect to the Notes only.

 

    32 

     

    

 

The Company and the Guarantor shall
deliver to the Trustee, within 120 days after the end of each fiscal year during which any Notes were Outstanding, a
certificate by an Authorized Officer of the Company and the Guarantor stating whether or not the signers know of any Default
or Event of Default under the Indenture, and, if so, specifying such Default or Event of Default and the nature and status
thereof.

 

ARTICLE
VII

 

REMEDIES OF THE TRUSTEE AND HOLDERS ON EVENT OF DEFAULT

 

Sections 7.1, 7.2 and 7.3 shall replace Section
6.1 of the Base Indenture with respect to the Notes only. Sections 7.4 and 7.5 shall replace Sections 6.6 and 7.14 of the Base
Indenture, respectively, with respect to the Notes only.

 

SECTION 7.1                
Events of Default.

 

“Event of Default,” wherever
used herein or in the Base Indenture with respect to the Notes, means any one of the following events:

 

(a)              
default for 30 days in the payment of any installment of interest under the Notes;

 

(b)              
default in the payment of the principal amount or Redemption Price due with respect to the
Notes, when the same becomes due and payable;

 

(c)              
the Company fails to comply with any of its other agreements contained in the Notes or the
Indenture with respect to the Notes upon receipt by the Company of notice of such default by the Trustee or by Holders of not less
than 25% in aggregate principal amount of the Notes then Outstanding and the Company or the Guarantor, as applicable, fails to
cure (or obtain a waiver of) such default within 90 days after the Company receives such notice;

 

(d)              
failure to pay any Indebtedness (other than Non-Recourse Indebtedness) that is (a) of the
Issuers, the Guarantor or any Subsidiary in which the Company has invested at least $75,000,000 in capital (a “Significant
Subsidiary”) or any entity in which the Company is the general partner, and (b) in an outstanding principal amount in
excess of $75,000,000 at final maturity or upon acceleration after the expiration of any applicable grace period, which Indebtedness
(other than Non-Recourse Indebtedness) is not discharged, or such default in payment or acceleration is not cured or rescinded,
within 60 days after written notice to the Company from the Trustee (or to the Company and the Trustee from Holders of at least
25% in principal amount of the Outstanding Notes);

 

(e)              
either Issuer, the Guarantor, or any Significant Subsidiary pursuant to or within the meaning
of any Bankruptcy Law (i) commences a voluntary case, (ii) consents to the entry of an order for relief against it in
an involuntary case, (iii) consents to the appointment of a Custodian of it or for all or substantially all of its property
or (iv) makes a general assignment for the benefit of its creditors; or

 

    33 

     

    

 

(f)                a
court of competent jurisdiction enters an order under any Bankruptcy Law that (i) is for relief against either Issuer,
the Guarantor or any Significant Subsidiary in an involuntary case, (ii) appoints a Custodian of either Issuer, the
Guarantor or a Significant Subsidiary for all or substantially all of its property or (iii) orders the liquidation of
either Issuer, the Guarantor or a Significant Subsidiary and the order or decree remains unstayed and in effect for 60
consecutive days.

 

SECTION 7.2                
Acceleration of Maturity; Rescission and Annulment.

 

If an Event of Default with respect to the
Notes at the time Outstanding occurs and is continuing (other than an Event of Default referred to in Section 7.1(e) or 7.1(f),
which shall result in an automatic acceleration), then in every such case the Trustee or the Holders of not less than 25% in principal
amount of the Outstanding Notes may declare the principal amount of and accrued and unpaid interest, if any, on all of the outstanding
Notes to be due and payable immediately, by a notice in writing to the Company (and to the Trustee if given by Holders), and upon
any such declaration such principal amount (or specified amount) and accrued and unpaid interest, if any, shall become immediately
due and payable. If an Event of Default specified in Section 7.1(e) or 7.1(f) occurs, the principal of and accrued and unpaid interest,
if any, on all outstanding Notes shall automatically be immediately due and payable without any declaration or other act on the
part of the Trustee or any Holder.

 

At any time after the principal amount of
(and premium, if any, on) and accrued and unpaid interest on the Notes shall have been so declared due and payable, and before
any judgment or decree for the payment of the moneys due shall have been obtained by the Trustee or entered as hereinafter provided,
Holders of a majority in aggregate principal amount of the Notes then Outstanding, by written notice to the Issuers and to the
Trustee, may rescind and annul such declaration and its consequences, subject in all respects to Section 7.4 of this Supplemental
Indenture, if: (a) the Issuers or the Guarantor have deposited with the Trustee a sum sufficient to pay all matured installments
of interest upon all the Notes and the principal of (and premium, if any, on) any and all Notes that shall have become due otherwise
than by acceleration and the amount payable to the Trustee under Section 8.3; (b) any and all Events of Default with respect to
the Notes, other than the nonpayment of principal on (and premium, if any, on) and accrued and unpaid interest on the Notes that
shall not have become due by their terms, shall have been remedied or waived as provided in Section 7.4; and (c) the rescission
would not conflict with any judgment or decree of a court of competent jurisdiction. No such rescission and annulment shall extend
to or shall affect any subsequent default or Event of Default, or shall impair any right consequent thereon.

 

SECTION 7.3                
Restoration of Rights and Remedies.

 

If the Trustee shall have proceeded to enforce
any right with respect to the Notes under the Indenture and such proceedings shall have been discontinued or abandoned because
of such rescission or annulment or for any other reason or shall have been determined adversely to the Trustee, then and in every
such case, subject to any determination in such proceedings, the Issuers, the Guarantor and the Trustee shall be restored respectively
to their former positions and rights hereunder, and all rights, remedies and powers of the Issuers, the Guarantor and Trustee shall
continue as though no such proceedings had been taken.

 

    34 

     

    

 

SECTION 7.4                
Control by Holders.

 

The holders of a majority in aggregate principal
amount of the Outstanding Notes, determined in accordance with Section 2.4, 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 Notes; provided, however, that such direction shall not be in conflict with any
rule of law or with the Indenture. Subject to the provisions of Section 7.1 of the Base Indenture, the Trustee shall have
the right to refuse to follow any such direction if the Trustee in good faith shall, by a Trust Officer or officers of the Trustee,
determine that the proceeding so directed, subject to the Trustee’s duties under the Trust Indenture Act or would involve
the Trustee in personal liability or might be unduly prejudicial to the Holders not involved in the proceeding and may take any
other action it deems proper that is not inconsistent with any such direction received from Holders. The Holders of not less than
a majority in principal amount of the Outstanding Notes may on behalf of the Holders of the Notes waive any past Default hereunder
with respect to the Notes and its consequences, except a Default (a) in the payment of the principal of or interest or premium,
if any, on the Notes (provided, however, that the Holders of a majority in principal amount of the Outstanding Notes
may rescind an acceleration and its consequences, including any related payment default that resulted from such acceleration) or
(b) in respect of a covenant or provision contained in the Indenture which cannot be modified or amended without the consent of
the Holder of each Outstanding Note affected. 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 the Indenture; but no such waiver shall extend
to any subsequent or other Default or impair any right consequent thereon.

 

SECTION 7.5                
Notice of Default.

 

If any Default or any Event of Default occurs
and is continuing with respect to the Notes and if such Default or Event of Default is known to a Trust Officer of the Trustee,
the Trustee shall send to each Holder of the Notes in the manner and to the extent provided in Section 313(c) of the Trust Indenture
Act notice of a Default or Event of Default within 90 days after it occurs, unless such Default or Event of Default has been cured;
provided, however, that except in the case of a default in the payment of principal of (or premium, if any) or interest
on any Notes, 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 or Trust Officers of the Trustee in good faith determine that withholding such notice
is in the interests of the Holders of the Notes.

 

SECTION 7.6                
Cure of Default.

 

Any Default or Event of Default resulting
from the failure to deliver a notice, report or certificate under the Indenture shall cease to exist and be cured in all respects
if the underlying Default or Event of Default giving rise to such notice, report or certificate requirement shall have ceased to
exist or be cured.

 

    35 

     

    

 

ARTICLE
VIII

 

CONCERNING THE TRUSTEE

 

Sections 8.1, 8.2 and 8.3 shall replace Sections
7.2, 7.5 and 7.6 of the Base Indenture, respectively, with respect to the Notes only.

 

SECTION 8.1                
Certain Rights of Trustee.

 

Except as otherwise provided in Section 7.1
of the Base Indenture:

 

(a)              
The Trustee may conclusively rely and shall be fully protected in acting or refraining from acting upon any resolution,
certificate, statement, instrument, opinion, report, notice, request, consent, order, approval, bond, security 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, order or demand of the Issuers mentioned herein shall be sufficiently evidenced by a Board Resolution
of the Company or an instrument signed in the name of the Issuers by Authorized Officers of the Issuers (unless other evidence
in respect thereof is specifically prescribed herein);

 

(c)              
The Trustee may consult with counsel and the written advice of such counsel or any Opinion of Counsel shall be full and
complete authorization and protection in respect of any action taken or suffered or omitted hereunder in good faith and in reliance
thereon;

 

(d)              
The Trustee shall be under no obligation to exercise any of the rights or powers vested in it by the Indenture at the request,
order or direction of any of the Holders of the Notes pursuant to the provisions of the Indenture, unless such Holders shall have
offered to the Trustee security or indemnity reasonably satisfactory to it against the costs, expenses and liabilities that may
be incurred therein or thereby; nothing contained herein shall, however, relieve the Trustee of the obligation, upon the occurrence
of an Event of Default with respect to the Notes (that has not been cured or waived), to exercise with respect to the Notes such
of the rights and powers vested in it by the Indenture, and to use the same degree of care and skill in their exercise, as a prudent
man would exercise or use under the circumstances in the conduct of his own affairs;

 

(e)              
The Trustee shall not be liable for any action taken or omitted to be taken by it in good faith and believed by it to be
authorized or within the discretion or rights or powers conferred upon it by the Indenture;

 

    36 

     

    

 

(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, consent, order, approval, bond, security, or other
papers or documents, unless requested in writing so to do by the Holders of not less than a majority in principal amount of
the Outstanding Notes (determined as provided in Section 2.4); provided, however, that if the payment
within a reasonable time to the Trustee of the costs, expenses or liabilities likely to be incurred by it in the making of
such investigation is, in the opinion of the Trustee, not reasonably assured to the Trustee by the security afforded to it by
the terms of the Indenture, the Trustee may require indemnity satisfactory to it against such costs, expenses or liabilities
as a condition to so proceeding. The reasonable expense of every such examination shall be paid by the Issuers or, if paid by
the Trustee, shall be repaid by the Issuers upon demand; 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.

 

(h)              
The Trustee shall not be deemed to have notice of any Default or Event of Default, except a payment default under Section
7.1(a) or 7.1(b), unless written notice of any event which is in fact such a Default or Event of Default is received by a Trust
Officer at the Corporate Trust Office of the Trustee, and such notice references the Notes and the Indenture.

 

(i)                
The Trustee shall not be liable for any special, indirect, punitive or consequential losses or damages (including without
limitation lost profits) even if the Trustee has been advised of the possibility of such loses or damages and regardless of the
form of the action.

 

(j)                
The Trustee shall not be required to provide a bond or other security with respect to the performance of its power and duties
under the Indenture.

 

(k)              
In no event shall the Trustee be responsible or liable for any failure or delay in the performance of its obligations under
the Indenture arising out of or caused by, directly or indirectly, forces beyond its reasonable control, including strikes, work
stoppages, accidents, acts of war or terrorism, civil or military disturbances, nuclear or natural catastrophes or acts of God,
and interruptions, loss or malfunctions of utilities, communications or computer (software or hardware) services.

 

(l)                
Any permissive right given to the Trustee hereunder shall not be construed as a duty.

 

SECTION 8.2                
Moneys Held in Trust.

 

Subject to the provisions of Sections 11.2,
12.5, 12.6 and 12.7, all moneys received by the Trustee or the Paying Agent shall, until used or applied as herein provided, be
held in trust for the purposes for which they were received, but need not be segregated from other funds except to the extent required
by law. The Trustee and the Paying Agent shall be under no liability for interest on any moneys received by it hereunder except
such as it may agree with the Issuers to pay thereon.

 

    37 

     

    

 

SECTION 8.3                
Compensation and Reimbursement.

 

(a)               Each
Issuer covenants and agrees to pay to the Trustee, and the Trustee shall be entitled to, such reasonable compensation (which
shall not be limited by any provision of law in regard to the compensation of a trustee of an express trust) as the Issuers
and the Trustee may from time to time agree in writing, for all services rendered by it in the execution of the trusts hereby
created and in the exercise and performance of any of the powers and duties hereunder of the Trustee, and, except as
otherwise expressly provided in the Indenture, the Issuers will pay or reimburse the Trustee upon its request for all
reasonable expenses, disbursements and advances incurred or made by the Trustee in accordance with any of the provisions of
the Indenture (including the reasonable compensation and the expenses and disbursements of its counsel and of all Persons not
regularly in its employ), except any such expense, disbursement or advance as may arise from its negligence and except as the
Issuers and Trustee may from time to time agree in writing. Each Issuer also covenants to indemnify the Trustee (and its
officers, agents, directors and employees) for, and to hold it harmless against, any loss, liability or expense
incurred without negligence on the part of the Trustee as adjudicated by a court of competent
jurisdiction and 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 of liability in the premises.

 

(b)              
To secure the Issuers’ payment obligations in this Section 8.3, the Trustee shall
have a lien prior to the Notes on all money or property held or collected by the Trustee, except that held in trust to pay principal
of and interest on the Notes.

 

When the Trustee incurs expenses or renders
services after an Event of Default specified in Section 7.1(e) or 7.1(f) occurs, the expenses and the compensation for the
services are intended to constitute expenses of administration under any Bankruptcy Law.

 

The provisions of this Section 8.3 shall
survive the resignation or removal of the Trustee and the termination or satisfaction of the Indenture.

 

ARTICLE
IX

 

SUPPLEMENTAL INDENTURES

 

Article IX shall replace Article IX of the
Base Indenture with respect to the Notes only.

 

SECTION 9.1                
Supplemental Indentures Without the Consent of Holders.

 

Notwithstanding Section 9.2 of this Supplemental
Indenture, the Issuers, the Guarantor and the Trustee may, from time to time, and at any time enter into an indenture or indentures
supplemental hereto (which shall comply with the provisions of the Trust Indenture Act as then in effect) without the consent of
the Holders of the Notes hereto for one or more of the following purposes:

 

(a)              
to cure any ambiguity, defect or inconsistency in the Indenture or the Notes;

 

(b)              
to evidence a successor to the Company or Co-Issuer as obligor or to the Guarantor as guarantor
under the Indenture;

 

(c)              
to make any change that does not adversely affect the interests of the Holders of Notes;

 

    38 

     

    

 

(d)              
to provide for the issuance of Additional Notes in accordance with the limitations set forth
in the Indenture;

 

(e)              
to provide for the acceptance of appointment of a successor Trustee or facilitate the administration
of the trusts under the Indenture by more than one Trustee;

 

(f)               
to comply with the requirements of the Commission in order to effect or maintain the qualification
of the Indenture under the Trust Indenture Act, or to comply with the requirements of the Depositary;

 

(g)              
to provide for uncertificated Notes in addition to or in place of certificated Notes;

 

(h)              
to reflect the release of the Guarantor as guarantor, in accordance with the Indenture;

 

(i)                
to reflect the release of Co-Issuer as an Issuer;

 

(j)                
to secure the Notes (or to release collateral previously added pursuant to this clause);

 

(k)              
to add guarantors with respect to the Notes (or to release guarantors previously added pursuant
to this clause); and

 

(l)                
to conform the text of the Indenture, the Guarantee or the Notes to any provision of the
description thereof set forth in the Prospectus to the extent that such provision in the Prospectus was intended to be a verbatim
recitation of a provision of the Indenture, such Note Guarantee or the Notes (which intent will be established by an Officer’s
Certificate delivered by the Company to the Trustee).

 

The Trustee is hereby authorized to join with
the Issuers and the Guarantor in the execution of any such supplemental indenture, and to make any further appropriate agreements
and stipulations that may be therein contained, but the Trustee shall not be obligated to enter into any such supplemental indenture
that affects the Trustee’s own rights, duties or immunities under the Indenture or otherwise.

 

Any supplemental indenture authorized by the
provisions of this Section 9.1 may be executed by the Issuers, the Guarantor and the Trustee without the consent of the Holders
of any of the Notes at the time Outstanding, notwithstanding any of the provisions of Section 9.2.

 

    39 

     

    

 

SECTION 9.2                
Supplemental Indentures With the Consent of Holders.

 

With the consent (evidenced as provided
in Section 8.1 of the Base Indenture, which may include consents obtained in connection with a tender offer or exchange offer
for, or purchase of, the Notes) of the Holders of not less than a majority in aggregate principal amount of the Notes at the
time Outstanding, the Issuers, when authorized by a Board of Resolution of the Company, the Guarantor and the Trustee may,
from time to time and at any time, enter into an indenture or indentures supplemental hereto (which shall comply with the
provisions of the Trust Indenture Act as then in effect) for the purpose of adding any provisions to or changing in any
manner or eliminating (or waiving any past default or compliance with) any of the provisions of the Indenture or of any
supplemental indenture or modifying in any manner not covered by Section 9.1 the rights of the Holders of the Notes under the
Indenture; provided that no such supplemental indenture shall, without the consent of each Holder of Notes then
Outstanding and affected thereby:

 

(a)              
reduce the principal amount of the Notes whose Holders must consent to an amendment or waiver;

 

(b)              
reduce the rate of or extend the time for payment of interest (including default interest)
on the Notes;

 

(c)              
reduce the principal of or premium, if any, on or change the Stated Maturity of the Notes;

 

(d)              
waive a Default in the payment of the principal of or premium, if any, or interest on the
Notes (except a rescission of acceleration of the Notes by the Holders of at least a majority in aggregate principal amount of
the then Outstanding Notes and a waiver of the payment default that resulted from such acceleration);

 

(e)              
make the principal of or premium, if any, or interest on the Notes payable in any currency
other than that stated in the Notes;

 

(f)               
make any change in Sections 4.1 and 6.4 of the Base Indenture or Sections 7.4 or 9.2(f)
(this sentence);

 

(g)              
waive a redemption payment with respect to the Notes; or

 

(h)              
release the Guarantor other than as provided in the Indenture.

 

The Trustee is hereby authorized to join with
the Issuers and the Guarantor in the execution of any such supplemental indenture, and to make any further appropriate agreements
and stipulations that may be therein contained, but the Trustee shall not be obligated to enter into any such supplemental indenture
that affects the Trustee’s own rights, duties or immunities under the Indenture or otherwise.

 

It shall not be necessary for the consent
of the Holders of the Notes under this Section 9.2 to approve the particular form of any proposed supplemental indenture, but it
shall be sufficient if such consent shall approve the substance thereof.

 

SECTION 9.3                
Effect of Supplemental Indentures.

 

Upon the execution of any supplemental
indenture pursuant to the provisions of this Article IX or of Section 10.2, the Indenture shall, with respect to the
Notes, be and be deemed to be modified and amended in accordance therewith and the respective rights, limitations of rights,
obligations, duties and immunities under the Indenture of the Trustee, the Issuers, the Guarantor and the Holders of the
Notes shall thereafter be determined, exercised and enforced hereunder subject in all respects to such modifications and
amendments, and all the terms and conditions of any such supplemental indenture shall be and be deemed to be part of the
terms and conditions of the Indenture for any and all purposes.

 

    40 

     

    

 

 

SECTION 9.4                
Notes Affected by Supplemental Indentures.

 

Notes affected by a supplemental indenture,
authenticated and delivered after the execution of such supplemental indenture pursuant to the provisions of this Article IX
or of Section 10.2, may bear a notation in form approved by the Issuers as to any matter provided for in such supplemental
indenture. If the Issuers shall so determine, new Notes so modified as to conform, in the opinion of the Board of Directors of
the Company, to any modification of the Indenture contained in any such supplemental indenture may be prepared by the Issuers,
authenticated by the Trustee and delivered in exchange for the Notes then Outstanding.

 

SECTION 9.5                
Execution of Supplemental Indentures.

 

Upon the request of the Issuers, accompanied
by a Board Resolution of the Company authorizing the execution of any such supplemental indenture, and upon the filing with the
Trustee of evidence of the consent of the Holders of the Notes required to consent thereto as aforesaid, the Trustee shall join
with the Issuers in the execution of such supplemental indenture unless such supplemental indenture affects the Trustee’s
own rights, duties or immunities under the Indenture or otherwise, in which case the Trustee may in its discretion but shall not
be obligated to enter into such supplemental indenture. The Trustee, subject to the provisions of Section 7.1 of the Base
Indenture, may receive, in addition to the documents required by Section 14.7(a) of the Base Indenture, an Officer’s
Certificate or an Opinion of Counsel stating that and as conclusive evidence that any supplemental indenture executed pursuant
to this Article IX is authorized or permitted by, and conforms to, the terms of this Article IX and that it is proper
for the Trustee under the provisions of this Article IX to join in the execution thereof; provided, however,
that such Officer’s Certificate or Opinion of Counsel need not be provided in connection with the execution of a supplemental
indenture that establishes the terms of a series of Securities pursuant to Section 2.1 of the Base Indenture.

 

Promptly after the execution by the Issuers
and the Trustee of any supplemental indenture pursuant to the provisions of this Section, the Issuers shall transmit by electronic
transmission, a notice, setting forth in general terms the substance of such supplemental indenture, to the Holders of the Notes
affected thereby as their names and addresses appear upon the Security Register. Any failure of the Issuers to send such notice,
or any defect therein, shall not, however, in any way impair or affect the validity of any such supplemental indenture.

 

ARTICLE
X

SUCCESSOR ENTITY

 

This Article X shall replace Article
X of the Base Indenture with respect to the Notes only.

 

    41

     

    

 

SECTION 10.1            
Company and the Guarantor May Consolidate on Certain Terms.

 

The Company and the Guarantor may consolidate
with, or sell, lease or convey all or substantially all of their respective assets to, or merge with or into, any other entity;
provided that the following conditions are met:

 

(a)              
the Company or the Guarantor, as the case may be, shall be the continuing entity, or the
successor entity (if other than the Company or the Guarantor, as the case may be) formed by or resulting from any consolidation
or merger or which shall have received the transfer of assets shall expressly assume payment of the principal of and interest on
all of the Notes and the due and punctual performance and observance of all of the covenants and conditions in the Indenture;

 

(b)              
immediately after giving effect to such transaction, no Event of Default or Default shall
have occurred and be continuing; and

 

(c)              
an Officer’s Certificate and Opinion of Counsel shall be delivered to the Trustee,
in each case, stating that all conditions precedent promised for in the Indenture relating to such consolidation, sale, lease,
conveyance or merger have been complied with and that such consolidation, sale, lease, conveyance or merger complies with the provisions
of the Indenture.

 

SECTION 10.2            
Successor Entity Substituted.

 

(a)              
In case of any such consolidation, merger, sale, conveyance, transfer or other disposition
and upon the assumption by the successor entity by supplemental indenture, executed and delivered to the Trustee and satisfactory
in form to the Trustee, of the obligations set forth under Section 10.1 on all of the Notes Outstanding, such successor entity
shall succeed to and be substituted for the applicable Issuer or the Guarantor with the same effect as if it had been named as
such Issuer or the Guarantor herein, and thereupon the predecessor entity shall be relieved of all obligations and covenants under
the Indenture and the Notes.

 

(b)              
In case of any such consolidation, merger, sale, conveyance, transfer or other disposition,
such changes in phraseology and form (but not in substance) may be made in the Notes thereafter to be issued as may be appropriate.

 

(c)              
Nothing contained in this Article X shall require any action by the applicable Issuer
or the Guarantor in the case of a consolidation or merger of any Person into such Issuer or the Guarantor where such Issuer or
the Guarantor is the survivor of such transaction, or the acquisition by such Issuer or the Guarantor, by purchase or otherwise,
of all or any part of the property of any other Person (whether or not affiliated with such Issuer or the Guarantor).

 

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ARTICLE
XI

SATISFACTION AND DISCHARGE

 

This Article XI shall replace Article XI of
the Base Indenture with respect to the Notes only.

 

SECTION 11.1            
Satisfaction and Discharge.

 

The Indenture shall be discharged and shall
cease to be of further effect as to all Notes issued hereunder, when:

 

(a)              
either:

 

(1)              
all Notes that have been authenticated, except lost, stolen or destroyed Notes that have
been replaced or paid and Notes for whose payment money has been deposited in trust and thereafter repaid to the Issuers, have
been delivered to the Trustee for cancellation; or

 

(2)              
all Notes that have not been delivered to the Trustee for cancellation have become due and
payable by reason of the mailing of a notice of redemption or otherwise or will become due and payable within one year and the
Issuers or the Guarantor have irrevocably deposited or caused to be deposited with the Trustee as trust funds in trust solely for
the benefit of the Holders, cash in U.S. Dollars, Governmental Obligations, or a combination thereof, in such amounts as will be
sufficient, without consideration of any reinvestment of interest, to pay and discharge the entire Indebtedness on the Notes not delivered
to the Trustee for cancellation for principal of, premium on, if any, and interest on, the Notes to the Stated Maturity or the
Redemption Date;

 

(b)              
in respect of subclause (2) of clause (a) of this Section 11.1, no Event of Default has
occurred and is continuing on the date of the deposit (other than an Event of Default resulting from the borrowing of funds to
be applied to such deposit and any similar deposit relating to other Indebtedness and, in each case, the granting of liens to secure
such borrowings);

 

(c)              
the Issuers or the Guarantor have paid or caused to be paid all sums payable by it under
the Indenture; and

 

(d)              
the Issuers have delivered irrevocable instructions to the Trustee under the Indenture to
apply the deposited money toward the payment of the Notes at Stated Maturity or on the Redemption Date, as the case may be.

 

In addition, the Company must deliver an Officer’s
Certificate to the Trustee stating that all conditions precedent to satisfaction and discharge have been satisfied.

 

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Notwithstanding the satisfaction and discharge
of the Indenture, if money has been deposited with the Trustee pursuant to subclause (2) of clause (a) of this Section 11.1, the
provisions of Sections 11.2 and 12.6 will survive. In addition, nothing in this Section 11.1 will be deemed to discharge those
provisions of Section 8.3, that, by their terms, survive the satisfaction and discharge of the Indenture.

 

SECTION 11.2            
Application of Trust Money.

 

Subject to the provisions of Section 12.6,
all money deposited with the Trustee pursuant to Section 11.1 shall be held in trust and applied by it, in accordance with the
provisions of the Notes and the Indenture, to the payment, either directly or through any Paying Agent (including the Issuers acting
as their own Paying Agent) as the Trustee may determine, to the Persons entitled thereto, of the principal of, premium on, if any,
and interest on the Notes 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.

 

If the Trustee or Paying Agent is unable to
apply any money or Governmental Obligations in accordance with Section 11.1 by reason of any legal proceeding or by reason of any
order or judgment of any court or governmental authority enjoining, restraining or otherwise prohibiting such application, the
Issuers’ and the Guarantor’s obligations under the Indenture and the Notes shall be revived and reinstated as though
no deposit had occurred pursuant to Section 11.1; provided that, if the Issuers have made any payment of principal
of, premium on, if any, or interest on any Notes because of the reinstatement of their obligations, the Issuers shall be subrogated
to the rights of the Holders of such Notes to receive such payment from the money or Governmental Obligations held by the Trustee
or Paying Agent.

 

ARTICLE
XII

LEGAL DEFEASANCE AND COVENANT DEFEASANCE

 

This Article XII shall replace Article XII
of the Base Indenture with respect to the Notes only.

 

SECTION 12.1            
Option to Effect Legal Defeasance or Covenant Defeasance.

 

The Issuers may at any time, at the option
of the Board of Directors of the Company evidenced by a Board Resolution set forth in an Officer’s Certificate, elect to
have either Section 12.2 or 12.3 be applied to all Outstanding Notes upon compliance with the conditions set forth below in
this Article XII.

 

SECTION 12.2            
Legal Defeasance and Discharge.

 

Upon the Issuers’ exercise under
Section 12.1 of the option applicable to this Section 12.2, the Issuers and the Guarantor will, subject to the satisfaction
of the conditions set forth in Section 12.4, be deemed to have been discharged from their obligations with respect to all
Outstanding Notes (including the Note Guarantee) on the date the conditions set forth below are satisfied (hereinafter,
“Legal Defeasance”). For this purpose, Legal Defeasance means that the Issuers and the Guarantor will be
deemed to have paid and discharged the entire Indebtedness represented by the Outstanding Notes (including the Note
Guarantee), which will thereafter be deemed to be Outstanding only for the purposes of Section 12.5 and the other Sections of
the Indenture referred to in clauses (a) and (b) below, and to have satisfied all their other obligations under such Notes,
the Note Guarantee and the Indenture (and the Trustee, on demand of and at the expense of the Issuers, shall execute proper
instruments acknowledging the same), except for the following provisions which will survive until otherwise terminated or
discharged hereunder:

 

    44

     

    

 

(a)              
the rights of Holders of Outstanding Notes to receive payments in respect of the principal
of, premium on, if any, or interest on such Notes when such payments are due from the trust referred to in Section 12.4;

 

(b)              
the Issuers’ obligations with respect to such Notes under Article II and Section 4.2
of the Base Indenture;

 

(c)              
the rights, powers, trusts, duties and immunities of the Trustee hereunder and the Issuers’
and the Guarantor’s obligations in connection therewith; and

 

(d)              
this Article XII.

 

Subject to compliance with this Article XII,
the Issuers may exercise their option under this Section 12.2 notwithstanding the prior exercise of their option under Section
12.3.

 

SECTION 12.3            
Covenant Defeasance.

 

Upon the Issuers’ exercise under Section 12.1
of the option applicable to this Section 12.3, the Issuers and the Guarantor will, subject to the satisfaction of the conditions
set forth in Section 12.4, be released from each of their obligations under the covenants contained in Article VI and Article X
and any additional covenants specified in any Board Resolution or indenture supplemental hereto with respect to the Notes on and
after the date the conditions set forth in Section 12.4 are satisfied (hereinafter, “Covenant Defeasance”),
and the Notes will thereafter be deemed not Outstanding for the purposes of any direction, waiver, consent or declaration or act
of Holders (and the consequences of any thereof) in connection with such covenants, but will continue to be deemed Outstanding
for all other purposes hereunder (it being understood that such Notes will not be deemed Outstanding for accounting purposes).
For this purpose, Covenant Defeasance means that, with respect to the Outstanding Notes and the Note Guarantee, the Issuers and
the Guarantor may omit to comply with and shall have no liability in respect of any term, condition or limitation set forth in
any such covenant and any additional covenants specified in any Board Resolution or indenture supplemental hereto, 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 and such omission to comply shall not constitute a Default or an Event of
Default under Section 7.1 with respect to the Outstanding Notes, but, except as specified above, the remainder of the Indenture
and such Notes and the Note Guarantee shall be unaffected thereby.

 

    45

     

    

 

SECTION 12.4            
Conditions to Legal or Covenant Defeasance.

 

In order to exercise either Legal Defeasance
or Covenant Defeasance under either Section 12.2 or 12.3:

 

(1)              
the Issuers must irrevocably deposit with the Trustee, in trust, for the benefit of the
Holders, cash in U.S. dollars, Governmental Obligations, or a combination thereof, in such amounts as will be sufficient, in the
opinion of a nationally recognized investment bank, appraisal firm, or firm of independent public accountants, to pay the principal
of, premium on, if any, and interest on, the Outstanding Notes on the stated date for payment thereof or on the applicable Redemption
Date, as the case may be, and the Issuers must specify whether the Notes are being defeased to such stated date for payment or
to a particular Redemption Date;

 

(2)              
in the case of an election under Section  12.2, the Issuers must deliver to the Trustee
an Opinion of Counsel reasonably acceptable to the Trustee confirming that:

 

(A)            
the Issuers have received from, or there has been published by, the Internal Revenue Service a ruling; or

 

(B)             
since the date of the Indenture, there has been a change in the applicable federal income tax law,

 

in either case to the effect that,
and based thereon such Opinion of Counsel shall confirm that, the Holders of the Outstanding Notes will not recognize income, gain
or loss for federal income tax purposes as a result of such Legal Defeasance and will be subject to federal income tax on the same
amounts, in the same manner and at the same times as would have been the case if such Legal Defeasance had not occurred;

 

(3)              
in the case of an election under Section 12.3, the Issuers must deliver to the Trustee
an Opinion of Counsel reasonably acceptable to the Trustee confirming that the Holders of the Outstanding Notes will not recognize
income, gain or loss for federal income tax purposes as a result of such Covenant Defeasance and will be subject to federal income
tax on the same amounts, in the same manner and at the same times as would have been the case if such Covenant Defeasance had not
occurred;

 

(4)              
no Default or Event of Default shall have occurred and be continuing on the date of such
deposit (other than a Default or Event of Default resulting from the borrowing of funds to be applied to such deposit (and any
similar concurrent deposit relating to other Indebtedness), and the granting of liens to secure such borrowings);

 

(5)              
such Legal Defeasance or Covenant Defeasance will not result in a breach or violation of,
or constitute a default under, any material agreement or instrument (other than the Indenture and the agreements governing any
other Indebtedness being defeased, discharged or replaced) to which either Issuer or the Guarantor is a party or by which either
Issuer or the Guarantor is bound; and

 

(6)              
the Issuers must deliver to the Trustee an Officer’s Certificate and an Opinion of
Counsel, each stating that all conditions precedent relating to the Legal Defeasance or the Covenant Defeasance have been complied
with.

 

    46

     

    

 

SECTION 12.5            
Deposited Money and Government Securities to be Held in Trust; Other Miscellaneous
Provisions.

 

Subject to Section 12.6, all cash and
Governmental Obligations (including the proceeds thereof) deposited with the Trustee pursuant to Section 12.4 in respect of
the Outstanding Notes shall be held in trust and applied by the Trustee, in accordance with the provisions of such Notes and the
Indenture, to the payment, either directly or through any Paying Agent (including any Issuer acting as Paying Agent) as the Trustee
may determine, to the Holders of such Notes of all sums due and to become due thereon in respect of principal, premium, if any,
and interest, but such money need not be segregated from other funds except to the extent required by law.

 

The Issuers will pay and indemnify the Trustee
against any tax, fee or other charge imposed on or assessed against the cash or Governmental Obligations deposited pursuant to
Section 12.4 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 Notes.

 

Notwithstanding anything in this Article XII
to the contrary, the Trustee shall deliver or pay to the Issuers from time to time upon Company Request any cash or Governmental
Obligations held by it as provided in Section 12.4 which, in the opinion of a nationally recognized firm of independent public
accountants expressed in a written certification thereof delivered to the Trustee (which may be the opinion delivered under Section 12.4(1)),
are in excess of the amount thereof that would then be required to be deposited to effect an equivalent Legal Defeasance or Covenant
Defeasance.

 

SECTION 12.6            
Repayment to Issuers.

 

Any money deposited with the Trustee or any
Paying Agent, or then held by the Issuers, in trust for the payment of the principal of, premium on, if any, or interest on any
Notes and remaining unclaimed for two years after such principal, premium, if any, or interest, has become due and payable shall
be paid to the Issuers on their request or (if then held by the Issuers) will be discharged from such trust; and the Holder
of such Note will thereafter be permitted to look only to the Issuers for payment thereof, and all liability of the Trustee or
such Paying Agent with respect to such trust money, and all liability of the Issuers as trustee thereof, will thereupon cease;
provided, however, that the Trustee or such Paying Agent, before being required to make any such repayment, may at
the expense of the Issuers cause to be published once, in the New York Times and The Wall Street Journal (national edition), notice
that such money remains unclaimed and that, after a date specified therein, which will not be less than 30 days from the date of
such notification or publication, any unclaimed balance of such money then remaining will be repaid to the Issuers.

 

    47

     

    

 

SECTION 12.7            
Reinstatement.

 

If the Trustee or Paying Agent is unable
to apply any cash or Governmental Obligations in accordance with Section 12.2 or 12.3, as the case may be, by reason of any
order or judgment of any court or governmental authority enjoining, restraining or otherwise prohibiting such application, then
the Issuers’ and the Guarantor’s obligations under the Indenture and the Notes and the Note Guarantee shall be revived
and reinstated as though no deposit had occurred pursuant to Section 12.2 or 12.3 until such time as the Trustee or Paying
Agent is permitted to apply all such cash or Governmental Obligations in accordance with Section 12.2 or 12.3, as the case may
be; provided, however, that, if the Issuers make any payment of principal of, premium on, if any, or interest
on any Note following the reinstatement of its obligations, the Issuers shall be subrogated to the rights of the Holders of such
Notes to receive such payment from the cash or Governmental Obligations held by the Trustee or Paying Agent.

 

ARTICLE
XIII

IMMUNITY OF INCORPORATORS, STOCKHOLDERS, OFFICERS AND DIRECTORS

 

This Section 13.1 replaces Section 13.1 of
the Base Indenture with respect to the Notes only.

 

SECTION 13.1            
No Recourse.

 

No recourse under or upon any obligation,
covenant or agreement of the Indenture, or of the Notes, or for any claim based thereon or otherwise in respect thereof, shall
be had against any incorporator, stockholder, officer or director, past, present or future as such, of either Issuer or the Guarantor
or any of their respective affiliates or Subsidiaries or of any predecessor or successor Person, either directly or through such
Issuer or Guarantor or any of their respective affiliates or Subsidiaries or any such predecessor or successor Person, whether
by virtue of any constitution, statute or rule of law, or by the enforcement of any assessment or penalty or otherwise; it
being expressly understood that the Indenture and the obligations issued hereunder are solely corporate obligations, and that no
such personal liability whatever shall attach to, or is or shall be incurred by, the incorporators, stockholders, officers or directors
as such, of such Issuer or Guarantor or any of their respective affiliates or Subsidiaries or of any predecessor or successor Person,
or any of them, because of the creation of the indebtedness hereby authorized, or under or by reason of the obligations, covenants
or agreements contained in the Indenture or in any of the Notes or implied therefrom; and that any and all such personal liability
of every name and nature, either at common law or in equity or by constitution or statute, of, and any and all such rights and
claims against, every such incorporator, stockholder, officer or director as such, because of the creation of the indebtedness
hereby authorized, or under or by reason of the obligations, covenants or agreements contained in the Indenture or in any of the
Notes or implied therefrom, are hereby expressly waived and released as a condition of, and as a consideration for, the execution
of the Indenture and the issuance of the Notes.

 

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ARTICLE
XIV

MISCELLANEOUS PROVISIONS

 

SECTION 14.1            
Effect on Successors and Assigns.

 

All the covenants, stipulations, promises
and agreements in this Supplemental Indenture made by or on behalf of the Issuers or the Guarantor shall bind their successors
and assigns, whether so expressed or not. All the covenants, stipulations, promises and agreements in this Supplemental Indenture
made by or on behalf of the Trustee shall bind its successors and assigns, whether so expressed or not.

 

SECTION 14.2            
Actions by Successor.

 

Any act or proceeding by any provision of
this Supplemental Indenture authorized or required to be done or performed by any board, committee or officer of the Issuers or
the Guarantor shall and may be done and performed with like force and effect by the corresponding board, committee or officer of
any Person that shall at the time be the lawful successor of such Issuer or the Guarantor.

 

SECTION 14.3            
Notices.

 

Any notice or communication by the Issuers,
the Guarantor or the Trustee to the other is duly given if in writing and delivered in person or by first class mail (registered
or certified, return receipt requested), facsimile transmission or overnight air courier guaranteeing next day delivery to the
others’ address:

 

If to the Issuers or the Guarantor:

 

CyrusOne Inc.

2850 N. Harwood Street, Suite 2200

Dallas, TX 75201

 

Facsimile No.: (972) 499-3490

Attention: Chief Financial Officer

 

With a copy to:

Sullivan & Cromwell LLP

125 Broad Street

New York, New York 10004

 

Facsimile No.: (212) 558-3588

Attention: Ari B. Blaut, Esq. and Robert W.
Downes, Esq.

 

    49

     

    

 

If to the Trustee:

 

Wells Fargo Bank, N.A.

150 East 42nd Street, 40th Floor

New York, NY 10017

 

Facsimile No.: 917-260-1593

Attention: Corporate Trust Services

 

If to the Security Registrar:

 

Deutsche Bank Trust Company Americas

Trust & Agency Services

60 Wall Street, 24th Floor

MS NYC60-2405

Attention: Corporates Team, CyrusOne LP

Facsimile: (732) 578-4635

 

If to the Paying Agent:

 

Deutsche Bank Trust Company Americas

Trust & Agency Services

60 Wall Street, 24th Floor

MS NYC60-2405

Attention: Corporates Team, CyrusOne LP

Facsimile: (732) 578-4635

 

The Company, the Guarantor or the Trustee,
by notice to the other, may designate additional or different addresses for subsequent notices or communications.

 

All notices and communications (other than
those sent to Holders) will be deemed to have been duly given: at the time delivered by hand, if personally delivered; five
Business Days after being deposited in the mail, postage prepaid, if mailed; when sent, if transmitted by facsimile;
and the next Business Day after timely delivery to the courier, if sent by overnight air courier guaranteeing next day delivery.

 

Any notice or communication to a Holder, when
the Notes are in the form of Definitive Notes, will be mailed by first class mail, certified or registered, return receipt requested,
or by overnight air courier guaranteeing next day delivery to its address shown on the register kept by the Security Registrar.

 

Any notice or communication to a Holder, when
the Notes are in the form of Global Notes and such Global Notes are held on behalf of Euroclear and/or Clearstream:

 

		(a)	Where the Indenture or this Supplemental Indenture provides for notice to the Holders of the applicable series of Notes of
any event, such notice shall be sufficiently given by delivery of the relevant notice to Euroclear and/or Clearstream (as the case may be) for communication
to the Participants thereof. Any such notice shall be deemed to have been given to the Holders of the applicable series of
Notes on the second day after the day on which such notice is delivered to Euroclear and/or Clearstream (as the case may be)
as set forth in this Section 14.3.

 

    50

     

    

 

		(b)	Participants in Euroclear and/or Clearstream with a beneficial interest in any Global Note may, on behalf of Holders of an
applicable series of Notes, make or give any request, demand, authorization, direction, notice, consent or waiver of Holders of
the applicable series of Notes to the Trustee in accordance with the standard procedures of Euroclear and Clearstream (which may
include a request, demand, authorization, direction, notice, consent or waiver being made or given on the Participants’ instructions
by Euroclear or Clearstream or any other Depositary to the Trustee by electronic means).

 

Any notice or communication will also be so
sent to any Person described in the Trust Indenture Act Section 313(c), to the extent required by the Trust Indenture Act if the
Indenture is then qualified thereunder. Failure to send a notice or communication to a Holder or any defect in it will not affect
its sufficiency with respect to other Holders.

 

If a notice or communication is mailed or
otherwise sent in the manner provided above within the time prescribed, it is duly given, regardless of whether or not the addressee
receives it.

 

If the Issuers mail a notice or communication
to Holders, they will mail a copy to the Trustee and each Agent at the same time.

 

SECTION 14.4            
Governing Law/Waiver of Jury Trial.

 

This Supplemental Indenture, the Notes and
the Note Guarantee shall be governed by, and construed in accordance with, the internal law of the State of New York without regard
to conflict of principles that would result in the application of any law other than the law of the State of New York. EACH PARTY
HERETO HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF
ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT.

 

SECTION 14.5            
Conflict with Trust Indenture Act.

 

If and to the extent that any provision of
this Supplemental Indenture limits, qualifies, or conflicts with any provision of the Trust Indenture Act, such Trust Indenture
Act provision shall control.

 

    51

     

    

 

SECTION 14.6            
Counterparts.

 

This Supplemental Indenture may be executed
in any number of counterparts, each of which shall be deemed an original, but such counterparts shall together constitute but one
and the same instrument. The exchange of copies of this Supplemental Indenture of signature pages thereof by facsimile or PDF transmission
shall constitute effective execution and delivery of this Supplemental Indenture as to the parties hereto and may be used in lieu
of the original instrument for all purposes. Signatures of the parties hereto transmitted by facsimile or PDF shall be deemed to
be their original signatures for all purposes.

 

SECTION 14.7            
Severability.

 

In case any one or more of the provisions
contained in this Supplemental Indenture or in the Notes shall for any reason be held to be invalid, illegal or unenforceable in
any respect, such invalidity, illegality or unenforceability shall not affect any other provisions of this Supplemental Indenture
or of the Notes, but this Supplemental Indenture and the Notes shall be construed as if such invalid or illegal or unenforceable
provision had never been contained herein or therein.

 

SECTION 14.8            
The Trustee.

 

The Trustee accepts the trusts created by
the Indenture, and agrees to perform the same upon the terms and conditions of the Indenture. The Trustee shall not be responsible
in any manner whatsoever for or in respect of the validity or sufficiency of this Supplemental Indenture or the due execution thereof
by the Company. The recitals contained herein shall be taken as the statements solely of the Company, and the Trustee assumes no
responsibility for the correctness thereof. If and when the Trustee shall be or become a creditor of the Company (or any other
obligor upon the Notes), excluding any creditor relationship listed in Trust Indenture Act Section 311(b), the Trustee shall be
subject to the provisions of the Trust Indenture Act regarding the collection of the claims against the Company (or any such other
obligor). If the Trustee has or shall acquire a conflicting interest within the meaning of the Trust Indenture Act, the Trustee
shall either eliminate such interest or resign, to the extent and in the manner provided by, and subject to the provisions of,
the Trust Indenture Act and the Indenture.

 

SECTION 14.9            
Ratifications.

 

The Base Indenture, as amended, modified or
supplemented by this Supplemental Indenture, is in all respects ratified and confirmed. The Indenture shall be read, taken and
construed as one and the same instrument. All provisions included in this Supplemental Indenture with respect to the Notes supersede
any conflicting provisions included in the Base Indenture unless not permitted by law. The Trustee accepts the trusts created by
the Indenture, and agrees to perform the same upon the terms and conditions of the Indenture.

 

SECTION 14.10        
Manner of Determining Equivalent Currency.

 

For all purposes, the manner of
determining the U.S dollar equivalent of the principal amount of, or any amounts payable on, the Notes shall be on the basis
of the most recently available market exchange rate for euros, as determined by the Company in its sole discretion.

 

[Remainder of page intentionally left
blank]

 

    52

     

    

 

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

 

	 	CYRUSONE LP
	 	 
	 	By: CyrusOne GP, as the sole general partner
	 	 
	 	By: CyrusOne Inc., as the sole trustee
	 	 	 
	 	By:	/s/ Diane M. Morefield
	 	 	Name:	Diane M. Morefield
	 	 	Title:	Executive Vice President and Chief Financial Officer

 

	 	CYRUSONE FINANCE CORP.
	 	 	 
	 	By:	 /s/ Diane M. Morefield
	 	 	Name:	Diane M. Morefield
	 	 	Title:	Executive Vice President and Chief Financial Officer

 

[Signature Page to Third Supplemental
Indenture]

 

     

     

    

 

	 	GUARANTOR:

 

	 	CYRUSONE INC.
	 	 
	 	 
	 	By:	/s/ Diane M. Morefield
	 	 	Name:	Diane M. Morefield
	 	 	Title:	Executive Vice President and Chief Financial Officer

 

[Signature Page
to Third Supplemental Indenture]

 

     

     

    

 

	TRUSTEE:	 
	 	 
	WELLS FARGO BANK, N.A.	 
	 	 
	 	 
	By:	/s/ Patrick T. Giordano	 
	 	Name:	 Patrick T. Giordano	 
	 	Title:	Vice President	 

 

[Signature Page to Third Supplemental
Indenture]

 

     

     

    

 

	PAYING AGENT:	 
	 	 
	DEUTSCHE BANK TRUST COMPANY AMERICAS	 
	 	 
	 	 
	By:	/s/ Bridgette Casasnovas	 
	Name:	Bridgette Casasnovas	 
	Title:	Vice President	 
	 	 
	By:	 /s/ Robert S. Peschler	 
	Name:	Robert S. Peschler	 
	Title:	Vice President	 

 

 

	SECURITY REGISTRAR:	 
	 	 
	DEUTSCHE BANK TRUST COMPANY
    AMERICAS	 
	 	 
	 	 
	By:	/s/
    Bridgette Casasnovas	 
	Name:	Bridgette Casasnovas	 
	Title:	Vice President	 
	 	 
	By:	/s/ Robert
    S. Peschler	 
	Name:	Robert S. Peschler	 
	Title:	Vice President	 

 

[Signature Page to Third Supplemental
Indenture]

 

     

     

    

 

 

 

EXHIBIT A

 

CYRUSONE LP

CYRUSONE FINANCE CORP.

 

THIS GLOBAL NOTE IS A GLOBAL SECURITY WITHIN THE MEANING OF
THE INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITARY OR A NOMINEE THEREOF. THIS GLOBAL NOTE MAY
NOT BE EXCHANGED IN WHOLE OR IN PART FOR A NOTE REGISTERED, AND NO TRANSFER OF THIS GLOBAL NOTE IN WHOLE OR IN PART MAY BE REGISTERED,
IN THE NAME OF ANY PERSON OTHER THAN SUCH DEPOSITARY OR A NOMINEE THEREOF, EXCEPT IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE
INDENTURE.

 

UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE
OF EUROCLEAR BANK SA/NV (“EUROCLEAR”) OR CLEARSTREAM BANKING S.A. (“CLEARSTREAM” AND, TOGETHER WITH EUROCLEAR,
“EUROCLEAR/CLEARSTREAM”), TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE
ISSUED IS REGISTERED IN THE NAME OF THE COMMON DEPOSITARY OR ITS NOMINEE, OR IN SUCH OTHER NAME AS MAY BE REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF EUROCLEAR/CLEARSTREAM (AND ANY PAYMENT IS MADE TO THE COMMON DEPOSITARY OT ITS NOMINEE OR TO SUCH OTHER ENTITY
AS MAY BE REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF EUROCLEAR/CLEARSTREAM), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE
OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, THE COMMON DEPOSITARY OR ITS NOMINEE, HAS
AN INTEREST HEREIN.

 

    A-1 

     

    

 

CYRUSONE LP

CYRUSONE FINANCE CORP.

 

1.450% NOTES DUE 2027

 

Certificate No. 1

 

CUSIP No.: 23283PAS3

 

ISIN: XS2089972629

 

€500,000,000

 

CYRUSONE LP, a Maryland limited partnership (the “Company”)
and CYRUSONE FINANCE CORP., a Maryland corporation (the “Co-Issuer,” and together with the Company, the “Issuers”),
for value received hereby promise to pay to BT Globenet Nominees Limited, as nominee of Deutsche Bank AG, London Branch, as common
depositary for Euroclear Bank SA/NV (“Euroclear”) and Clearstream Banking S.A. (“Clearstream”), or its
registered assigns, the principal sum of FIVE HUNDRED MILLION EUROS (€500,000,000), or such lesser amount as is set forth
in the Schedule of Exchanges of Interests in the Global Note on the other side of this Note, on January 22, 2027, and to pay interest
annually in arrears on January 22 of each year, commencing January 22, 2021, on said principal sum at the rate per annum of 1.450%,
from January 22 next preceding the date of this Note to which interest has been paid or duly provided for, unless no interest has
been paid or duly provided for on the Notes, in which case from January 22, 2020, until payment of said principal sum has been
made or duly provided for.

 

Interest on the Notes will be computed on the basis of the actual
number of days in the period for which interest is being calculated and the actual number of days from and including the last date
on which interest was paid on the Notes (or from January 22, 2020, if no interest has been paid on the Notes) to, but excluding,
the next scheduled Interest Payment Date. This payment convention is referred to herein as “ACTUAL/ACTUAL (ICMA)”.

 

The interest so payable will, subject to certain exceptions
provided in the Indenture referred to on the reverse hereof, be paid to the person in whose name this Note is registered at the
close of business on the record date for such interest, which is (i) with respect to Notes in global form, the clearing system
business day (which, for these purposes, is a day on which Euroclear and Clearstream settle payments in euros) immediately prior
to the relevant Interest Payment Date and (ii) in all other cases, 15 calendar days prior to the relevant Interest Payment Date
(whether or not a business day).

 

Reference is made to the further provisions of this Note set
forth on the reverse hereof and the Indenture governing this Note. Such further provisions shall for all purposes have the same
effect as though fully set forth at this place.

 

    A-2 

     

    

 

This Note shall not be valid or become obligatory for any purpose
until the certificate of authentication hereon shall have been signed manually or by facsimile by the Trustee or a duly authorized
authenticating agent under the Indenture.

 

    A-3 

     

    

 

IN WITNESS WHEREOF, the Issuers have caused
this Note to be duly executed.

 

Dated: [__________], 20[____]

 

	 	CYRUSONE LP
	 	 
	 	By:	CyrusOne GP, as the sole general partner
	 	 
	 	By:	CyrusOne Inc., as the sole trustee
	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:
	 	 
	 	CYRUSONE FINANCE CORP.
	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:

 

    A-4 

     

    

 

TRUSTEE’S CERTIFICATE OF AUTHENTICATION

 

This is one of the Notes described in the within-named Indenture.
Dated: [__________], 20[____]

 

	 	WELLS FARGO BANK, N.A., as the Trustee
	 	 
	 	By:	 
	 	 	Authorized Signatory

 

    A-5 

     

    

 

[FORM OF REVERSE SIDE OF NOTE]

 

CYRUSONE LP

CYRUSONE FINANCE CORP.

 

1.450% NOTES DUE 2027

 

1.      
Notes.

 

This Note is one of a duly authorized issue of Securities of
the Issuers, designated as its 1.450% Notes due 2027 (herein called the “Notes”), issued under and pursuant
to an Indenture, dated as of December 5, 2019 (herein called the “Base Indenture”), among the Issuers and Wells
Fargo Bank, N.A., as trustee (herein called the “Trustee”), as supplemented by the Third Supplemental Indenture,
dated as of January 22, 2020 (herein called the “Supplemental Indenture,” and together with the Base Indenture,
the “Indenture”), among the Issuers, the Guarantor, the Trustee and the Paying Agent and Security Registrar,
to which Indenture and all indentures supplemental thereto reference is hereby made for a description of the rights, limitations
of rights, obligations, duties and immunities thereunder of the Trustee, the Issuers and the Holders of the Notes. Capitalized
terms used but not otherwise defined in this Note shall have the respective meanings set forth in the Indenture.

 

2.       Interest Payment
Dates

 

If any Interest Payment Date, maturity date or redemption date
of this Note falls on a day that is not a Payment Business Day, payment will be made on the next succeeding Payment Business Day,
and no interest will accrue for the period from and after the Interest Payment Date, maturity date or redemption date, as the case
may be, to the next succeeding Payment Business Day. As used in this Note, the term “Payment Business Day” means,
(i) a day on which commercial banks and foreign exchange markets settle payments and are open for general business (including dealing
in foreign exchange and foreign currency deposits) in New York City and the City of London and, in the case of Notes in definitive
form only, the relevant place of presentation, and (ii) a day on which the TARGET 2 System is open for the settlement of payment
in euros. As used in this Note, the term “TARGET 2 System” means the Trans- European Automatic Real-Time Gross
Settlement Express Transfer (TARGET 2) System (or any successor thereto).

 

3.       No Sinking Fund.

 

The Notes are not subject to redemption through the operation
of any sinking fund.

 

    A-6 

     

    

 

4.       Optional Redemption.

 

The Issuers may redeem on any one or more occasions some
or all of the Notes before they mature. The Redemption Price will equal the sum of (1) an amount equal to 100% of the
principal amount of the Notes being redeemed plus accrued and unpaid interest up to, but not including, the Redemption Date
and (2) the Make-Whole Premium. Notwithstanding the foregoing, if the Notes are redeemed on or after November 22, 2026, the
Redemption Price will not include the Make-Whole Premium.

 

5.       Redemption for Tax
Reasons.

 

If, as a result of any change in, or amendment to, the laws
(or any regulations or rulings promulgated under the laws) of the United States (or any taxing authority thereof or therein), or
any change in, or amendments to, an official position regarding the application or interpretation of such laws, regulations or
rulings, which change or amendment is announced or becomes effective on or after January 15, 2020, the Issuers become or, based
upon a written opinion of independent tax counsel of recognized standing selected by the Issuers, will become obligated to pay
Additional Amounts with respect to the Notes, then the Issuers may at their option redeem the Notes at any time, in whole, but
not in part, at a redemption price equal to 100% of the principal amount, plus accrued and unpaid interest (including any Additional
Amounts), if any, to, but excluding, the date of redemption.

 

6.       Notice of Redemption.

 

In the case of any redemption in accordance
with Section 4.1 or Section 4.2 of the Supplemental Indenture, the Issuers will give each Holder of Notes to be redeemed a
notice in writing not less than 15 nor more than 60 days before the Redemption Date, (i) in the case of Notes represented by a
Global Note, to and through Euroclear or Clearstream for communication by them to the Holders of interests in the Notes to be so
redeemed, or (ii) in the case of Definitive Notes, to each Holder of record of the Notes to be redeemed at its registered address,
except that notices of redemption may be mailed or sent more than 60 days prior to a Redemption Date if the notice is issued in
connection with a defeasance of the Notes or a satisfaction and discharge of the Indenture pursuant to Articles XI and XII with
respect to the Notes

 

7.       Acceleration Upon
Event of Default.

 

The Events of Default relating to the Notes are set forth in
Section 7.1 of the Supplemental Indenture. If an Event of Default (other than an Event of Default specified in Sections 7.1(e)
or 7.1(f) of the Supplemental Indenture) occurs and is continuing, the principal of, premium, if any, and accrued and unpaid interest
on all Notes may be declared to be due and payable by either the Trustee or the Holders of at least 25% in aggregate principal
amount of the Notes then Outstanding, and, upon said declaration the same shall be immediately due and payable. If an Event of
Default specified in Sections 7.1(e) or 7.1(f) of the Supplemental Indenture occurs with respect to the Issuers, the principal
of and premium, if any, and interest accrued and unpaid on all the Notes shall be immediately and automatically due and payable
without necessity of further action.

 

    A-7 

     

    

 

8.       Amendment and Modification.

 

The Indenture contains provisions
permitting the Issuers and the Trustee, with the consent of the Holders of not less than a majority in aggregate principal
amount of the Notes at the time Outstanding, to execute supplemental indentures adding any provisions to or changing in any
manner or eliminating any of the provisions of the Indenture or of any supplemental indenture or modifying in any manner the
rights of the Holders of the Notes, subject to exceptions set forth in Section 9.2 of the Supplemental Indenture. Subject to
the provisions of the Indenture, the Holders of not less than a majority in aggregate principal amount of the Notes at the
time Outstanding may, on behalf of the Holders of all of the Notes, waive any past default or Event of Default, subject to
exceptions set forth in the Indenture.

 

No reference herein to the Indenture and
no provision of this Note or of the Indenture shall impair, as among the Issuers and the Holder of the Notes, the obligation of
the Issuers, which is absolute and unconditional, to pay the principal of, premium, if any, and interest on this Note at the place,
at the respective times, at the rate and in the coin or currency prescribed herein and in the Indenture.

 

9.       Denominations, Transfer,
Exchange.

 

The Notes are issuable in fully registered form, without coupons,
in the minimum denomination of €100,000 and any multiple of €1,000 in excess thereof. In the manner and subject to the
limitations provided in the Indenture, without payment of any service charge, Notes may be exchanged for a like aggregate principal
amount of Notes of other authorized denominations at the office or agency of the Trustee in the City of New York.

 

Upon due presentment for registration of transfer of this Note
at the office or agency of the Security Registrar in the City of New York, a new Note or Notes of authorized denominations for
an equal aggregate principal amount will be issued to the transferee in exchange therefor, subject to the limitations provided
in the Indenture, without charge except for any tax or other governmental charge imposed in connection therewith. For any Note
in definitive form so presented for registration of transfer, the new Note or Notes to be issued in exchange therefor shall be
issued in the minimum denomination of €100,000 and any multiple of €1,000 in excess thereof.

 

Prior to due presentment for registration of transfer, the Company,
the Trustee and any agent of the Company, or the Trustee may treat the registered Holder hereof as the owner of this Note (whether
or not this Note shall be overdue), for the purpose of receiving payment of the principal hereof and premium, if any, and subject
to the provisions on the face hereof, interest hereon, and for all other purposes, and neither the Company, nor the Trustee nor
any agent of the Company, or the Trustee shall be affected by any notice to the contrary.

 

10.       Persons Deemed Owners.

 

The registered Holder of a Note may be treated as the owner
of it for all purposes. Only registered Holders have rights under the Indenture.

 

    A-8 

     

    

 

11.       No Recourse.

 

No recourse under or upon any
obligation, covenant or agreement of the Indenture, or of the Notes, or for any claim based thereon or otherwise in respect
thereof, shall be had against any incorporator, stockholder, officer or director, past, present or future as such, of either
Issuer or the Guarantor or any of their respective affiliates or Subsidiaries or of any predecessor or successor Person,
either directly or through such Issuer or Guarantor or any of their respective affiliates or Subsidiaries or any such
predecessor or successor Person, whether by virtue of any constitution, statute or rule of law, or by the enforcement of any
assessment or penalty or otherwise; it being expressly understood that the Indenture and the obligations issued
hereunder are solely corporate obligations, and that no such personal liability whatever shall attach to, or is or shall be
incurred by, the incorporators, stockholders, officers or directors as such, of such Issuer or Guarantor or any of their
respective affiliates or Subsidiaries or of any predecessor or successor Person, or any of them, because of the creation of
the indebtedness hereby authorized, or under or by reason of the obligations, covenants or agreements contained in the
Indenture or in any of the Notes or implied therefrom; and that any and all such personal liability of every name and
nature, either at common law or in equity or by constitution or statute, of, and any and all such rights and claims against,
every such incorporator, stockholder, officer or director as such, because of the creation of the indebtedness hereby
authorized, or under or by reason of the obligations, covenants or agreements contained in the Indenture or in any of the
Notes or implied therefrom, are hereby expressly waived and released as a condition of, and as a consideration for, the
execution of the Indenture and the issuance of the Notes.

 

12.       Governing Law.

 

The Supplemental Indenture, this Note and the Note Guarantee
will be governed by, and construed in accordance with the internal law of the State of New York without regard to conflict of principles
that would result in the application of any law other than the law of the State of New York.

 

    A-9 

     

    

 

ASSIGNMENT FORM

 

To assign this Note, fill in the form below:

 

	(I) or (we) assign and transfer this Note to:	 
	(Insert assignee’s legal name)
	 
	(Insert assignee’s soc. sec. or tax I.D. no.)
	 
	 
	 
	(Print or type assignee’s name, address and zip code)
	 
	and irrevocably appoint __________________________________________________________to transfer this Note on the books of the Issuers. The agent may substitute another to act for him. 
	 
	Date: ______________
	 
	             	Your Signature:	 
	 	 	(Sign exactly as your name appears on the face of this Note)

 

	Signature Guarantee*:	 	 

 

	*	Participant in a recognized Signature Guarantee Medallion Program (or other signature guarantor acceptable to the Trustee).

 

    A-10 

     

    

 

SCHEDULE OF EXCHANGES OF INTERESTS IN THE
GLOBAL NOTE *

 

The following exchanges of a part of this Global Note for an
interest in another Global Note or for a Definitive Note, or exchanges of a part of another Global Note or Definitive Note for
an interest in this Global Note, have been made:

 

	Date of Exchange	 	Amount of decrease in 
principal amount at 
maturity of this Global 
Note	 	Amount of increase in 
principal amount at 
maturity of this Global 
Note	 	Principal amount at 
maturity of this Global 
Note following such 
decrease (or increase)	 	Signature of authorized 
officer of Trustee or 
Custodian
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 

 

*       This
schedule should be included only if the Note is issued in global form.

 

    A-11Security Devices International Inc.: Exhibit 4.1 - Filed by newsfilecorp.com

FORM OF SECURED CONVERTIBLE NOTE 

NEITHER THE ISSUANCE AND SALE OF THE SECURITIES REPRESENTED
BY THIS CERTIFICATE NOR THE SECURITIES INTO WHICH THESE SECURITIES ARE
CONVERTIBLE HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED,
OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES MAY NOT BE OFFERED FOR SALE,
SOLD, TRANSFERRED OR ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE
REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS
AMENDED, OR (B) AN OPINION IN A GENERALLY ACCEPTABLE FORM OF COUNSEL, WHICH
COUNSEL SHALL BE SELECTED BY THE HOLDER AND BE REASONABLY ACCEPTABLE TO THE
ISSUER, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR (II) UNLESS SOLD
PURSUANT TO RULE 144 UNDER SAID ACT. NOTWITHSTANDING THE FOREGOING, THE
SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER
LOAN OR FINANCING ARRANGEMENT SECURED BY THE SECURITIES. ANY TRANSFEREE OF THIS
NOTE SHOULD CAREFULLY REVIEW THE TERMS OF THIS NOTE, INCLUDING SECTIONS 3(c)(v)
AND 18(a) HEREOF. THE PRINCIPAL AMOUNT REPRESENTED BY THIS NOTE AND,
ACCORDINGLY, THE SECURITIES ISSUABLE UPON CONVERSION HEREOF MAY BE LESS THAN THE
AMOUNTS SET FORTH ON THE FACE HEREOF PURSUANT TO SECTION 3(c)(v) OF THIS NOTE.
THIS NOTE IS SUBJECT TO CERTAIN RESTRICTIONS ON TRANSFER SET FORTH IN SECTION 5
OF THE SECURITIES PURCHASE AGREEMENT DATED AS OF OCTOBER 22, 2018.

UNLESS PERMITTED UNDER NATIONAL INSTRUMENT 45-102 (RESALE OF
SECURITIES), THE HOLDER OF THIS SECURITY (AND ANY SECURITY INTO WHICH THIS
SECURITY MAY BE CONVERTED) MUST NOT TRADE THE SECURITY BEFORE MAY 16, 2020.

WITHOUT PRIOR WRITTEN APPROVAL OF THE CANADIAN SECURITIES
EXCHANGE AND COMPLIANCE WITH NATIONAL INSTRUMENT 45-102 (RESALE OF SECURITIES),
THE SECURITIES REPRESENTED BY THIS CERTIFICATE (AND ANY SECURITY INTO WHICH THIS
SECURITY MAY BE CONVERTED) MAY NOT BE SOLD, TRANSFERRED, HYPOTHECATED OR
OTHERWISE TRADED ON OR THROUGH THE FACILITIES OF THE CANADIAN SECURITIES
EXCHANGE OR OTHERWISE IN CANADA OR TO OR FOR THE BENEFIT OF A CANADIAN RESIDENT
UNTIL MAY 16, 2020. 

SECURITY DEVICES INTERNATIONAL INC. 

SECURED CONVERTIBLE
NOTE 

	Issuance Date: January 15, 2020 	Principal: U.S. $[ ___________ ]

     FOR VALUE RECEIVED,
Security Devices International Inc., a Delaware corporation (the
“Company”), hereby promises to pay to [Insert Name] or registered assigns
(“Holder”) the amount set out above as the Principal (as reduced pursuant
to the terms hereof pursuant to redemption, conversion or otherwise, the
“Principal”) when due, whether upon the Maturity Date (as defined below),
acceleration, redemption or otherwise (in each case in accordance with the terms
hereof) and to pay interest (“Interest”) on any outstanding Principal at
the rate equal to the then applicable Interest Rate (as defined below), from
October 31, 2019 until the same becomes due and payable, whether upon an
Interest Date (as defined below), the Maturity Date, acceleration, conversion,
redemption or otherwise (in each case, in accordance with the terms hereof).
This Secured Convertible Note (including all Secured Convertible Notes issues in
exchange, transfer, or replacement hereof, this “Note”) is one of an
issue of Convertible Notes issued pursuant to the Securities Purchase Agreement
(as defined below) on the Closing Date (as defined in the Securities Purchase
Agreement) (collectively, the “Notes” and such other Convertible Notes,
the “Other Notes”). Certain capitalized terms used herein are
defined in Section 28. Capitalized terms not otherwise defined herein have the
meanings set forth in the Securities Purchase Agreement. 

     (1) MATURITY. On the
Maturity Date, the Holder shall surrender this Note to the Company and the
Company shall pay to the Holder an amount in cash representing all outstanding
Principal, accrued and unpaid Interest and accrued and unpaid Late Charges, if
any. The “Maturity Date” shall be April 15, 2020, but may be
extended at the option of the Holder through the date that is 10 days after the
consummation of a Change of Control in the event that a Change of Control is
publicly announced or a Change of Control Notice (as defined in Section 5(b)) is
delivered prior to the Maturity Date. Except as specifically set forth herein,
this Note is not prepayable. 

     (2) INTEREST; INTEREST
RATE.

          (a)
Interest. Interest on this Note shall commence accruing on the Issuance
Date and shall be computed on the basis of a 365-day year and shall be payable
in arrears on the last day of each April and October during the period beginning
on the Issuance Date and ending on, and including, the Maturity Date (each, an
“Interest Date”) with the first Interest Date being April 15,
2020. Interest shall be payable on each Interest Date in cash. Prior to the
payment of Interest on an Interest Date, Interest on this Note shall accrue at
the rate of 10% per annum (the “Interest Rate”). 

          (b)
Default Rate. From and after the occurrence of an Event of Default and
notwithstanding the provisions of Section 2(b) hereof, the Interest Rate shall
be increased to 15.0% (the “Default Rate”). In the event that such Event
of Default is subsequently cured, the adjustment referred to in the preceding
sentence shall cease to be effective as of the date of such cure; provided that the
Interest calculated at the Default Rate during the continuance of such Event of
Default shall continue to apply to the extent it relates to the days after the
occurrence of such Event of Default through and including the date of cure of
such Event of Default.

-2- 

          (c)
Maximum Effective Interest Rate: Notwithstanding any other provision of
the Securities Purchase Agreement or this Note (including, for certainty,
Section 4(b) (Redemption Right) and Section 5 (Rights Upon Fundamental
Transaction And Change Of Control)), the effective rate of interest per
annum may not exceed 25% and any payments otherwise required to be made to the
Holder will be reduced as necessary for that purpose. 

     (3) CONVERSION OF NOTES.
This Note shall be convertible into shares of the Company's common stock, par
value $0.001 per share (the “Common Stock”), on the terms and conditions
set forth in this Section 3. 

          (a)
Conversion Right. Subject to the provisions of Section 3(d), at any time
or times on or after the Issuance Date, the Holder shall be entitled to convert
any portion of the outstanding and unpaid Conversion Amount (as defined below)
into fully paid and nonassessable shares of Common Stock in accordance with
Section 3(c), at the Conversion Rate (as defined below). The Company shall not
issue any fraction of a share of Common Stock upon any conversion. If the
issuance would result in the issuance of a fraction of a share of Common Stock,
the Company shall round such fraction of a share of Common Stock up to the
nearest whole share. The Company shall pay any and all taxes that may be payable
with respect to the issuance and delivery of Common Stock upon conversion of any
Conversion Amount. 

          (b)
Conversion Rate. The number of shares of Common Stock issuable upon
conversion of any Conversion Amount pursuant to Section 3(a) shall be determined
by dividing (x) such Conversion Amount by (y) the Conversion Price (such number
of shares, the “Conversion Rate”). For the purposes of this Note: 

               (i)
“Conversion Amount” means the portion of the Principal to be converted,
redeemed or otherwise with respect to which this determination is being made.

               (ii)
“Conversion Price” means, as of any Conversion Date (as defined below) or
other date of determination a price equal to USD$0.15, subject to adjustment as
provided herein. 

          (c)
Mechanics of Conversion. 

               (i)
Optional Conversion. To convert any Conversion Amount into shares of
Common Stock on any date (a “Conversion Date”), the Holder shall (A)
transmit by facsimile (or otherwise deliver), for receipt on or prior to 5:00
p.m., New York City time, on such date, a copy of an executed notice of
conversion in the form attached hereto as Exhibit I (the “Conversion
Notice”) to the Company and (B) if required by Section 3(c)(v), surrender
this Note to a common carrier for delivery to the Company as soon as practicable
on or following such date (or an indemnification undertaking with respect to
this Note in the case of its loss, theft or destruction). Promptly following the
date of receipt of a Conversion Notice, the Company shall transmit by facsimile a confirmation of receipt of such
Conversion Notice to the Holder and the Company's transfer agent (the
“Transfer Agent”). On or before the fifth Business Day following the date
of receipt of a Conversion Notice (the “Share Delivery Date”), the
Company shall (1) (X) provided that the Transfer Agent is participating in the
Depository Trust Company (“DTC”) Fast Automated Securities Transfer
Program and so long as the certificates therefor are not required to bear a
legend pursuant to Section 5(c) of the Securities Purchase Agreement, credit
such aggregate number of shares of Common Stock to which the Holder shall be
entitled to the Holder's or its designee's balance account with DTC through its
Deposit Withdrawal Agent Commission system or (Y) if the Transfer Agent is not
participating in the DTC Fast Automated Securities Transfer Program, issue and
deliver to the address as specified in the Conversion Notice, a certificate,
registered in the name of the Holder or its designee, for the number of shares
of Common Stock to which the Holder shall be entitled, which certificate shall
not bear any restrictive legend unless the certificate is required to bear such
a legend pursuant to Section 5(c) of the Securities Purchase Agreement, and (2)
pay to the Holder in cash an amount equal to the sum of (A) the amount of any
accrued and unpaid Interest on the applicable Conversion Amount being converted
through the Conversion Date and (B) any accrued and unpaid Late Charges on such
Conversion Amount and Interest. Delivery of physical certificates shall be
deemed to have been made if delivered personally or when delivered to a
nationally recognized overnight carrier. If this Note is physically surrendered
for conversion as required by Section 3(c)(iii) and the outstanding Principal of
this Note is greater than the Conversion Amount, then the Company shall as soon
as practicable and in no event later than three Business Days after receipt of
this Note and at its own expense, issue and deliver to the holder a new Note (in
accordance with Section 18(d)) representing the outstanding Principal not
converted. The Person or Persons entitled to receive the shares of Common Stock
issuable upon a conversion of this Note shall be treated for all purposes as the
record holder or holders of such shares of Common Stock on the Conversion
Date.

-3- 

               (ii)
Company's Failure to Timely Convert. If the Company shall fail to issue a
certificate to the Holder or credit the Holder's balance account with DTC for
the number of shares of Common Stock to which the Holder is entitled upon
conversion of any Conversion Amount on or prior to the date which is five
Business Days after the Conversion Date (a “Conversion Failure”), then
the Company shall pay to the Holder payments (“Conversion Default
Payments”) for a Conversion Failure in the amount of (i) (N/365), multiplied
by (ii) an amount equal to the amount by which (x) the highest Closing Sale
Price of the Common Stock during the period beginning on the date the Conversion
Notice giving rise to the Conversion Failure in accordance with this Section
3(c)(ii) is transmitted (the “Conversion Failure Date”) and ending on the
date immediately preceding the date on which the applicable Conversion Default
Payment is made exceeds (y) the Conversion Price in respect of such Conversion
Amount, multiplied by (iii) the number of shares of Common Stock the Company
failed to so deliver in such Conversion Failure, multiplied by (iv) .18, where N
equals the number of days from the Conversion Failure Date to the date that the
Company effects the full conversion of the Conversion Amount which gave rise to
the Conversion Failure. The accrued Conversion Default Payments for each
calendar month shall be paid in cash to the Holder by the fifth day of the month
following the month in which it has accrued. In addition to the foregoing, if
within five Trading Days after the Company's receipt of the facsimile copy of a
Conversion Notice the Company shall fail to issue and deliver a certificate to
the Holder or credit the Holder's balance account with DTC for the number of
shares of Common Stock to which the Holder is entitled upon such Holder's conversion of any
Conversion Amount, and if on or after such Trading Day the Holder purchases (in
an open market transaction or otherwise) Common Stock to deliver in satisfaction
of a sale by the Holder of Common Stock issuable upon such conversion that the
Holder anticipated receiving from the Company (a “Buy-In”), then the
Company shall, within three Business Days after the Holder's request and in the
Holder's discretion, either (i) pay cash to the Holder in an amount equal to the
Holder's total purchase price (including brokerage commissions and other
out-of-pocket expenses, if any) for the shares of Common Stock so purchased (the
“Buy-In Price”), at which point the Company's obligation to deliver such
certificate (and to issue such Common Stock) shall terminate, or (ii) promptly
honor its obligation to deliver to the Holder a certificate or certificates
representing such Common Stock and pay cash to the Holder in an amount equal to
the excess (if any) of the Buy-In Price over the product of (A) such number of
shares of Common Stock times (B) the Closing Sale Price on the Conversion Date.
Nothing herein shall limit the Holder’s right to pursue actual damages for the
Company’s failure to maintain a sufficient number of authorized shares of Common
Stock or to otherwise issue shares of Common Stock upon conversion of this Note
in accordance with the terms hereof, and the Holder shall have the right to
pursue all remedies available at law or in equity (including a decree of
specific performance and/or injunctive relief). 

-4- 

               (iii)
Book-Entry. Notwithstanding anything to the contrary set forth herein,
upon conversion of any portion of this Note in accordance with the terms hereof,
the Holder shall not be required to physically surrender this Note to the
Company unless (A) the full Principal amount of this Note is being converted or
(B) the Holder has provided the Company with prior written notice (which notice
may be included in a Conversion Notice) requesting physical surrender and
reissue of this Note. The Holder and the Company shall maintain records showing
the Principal converted and the dates of such conversions (and the Interest and
Late Charges paid with respect thereto) or shall use such other method,
reasonably satisfactory to the Holder and the Company, so as not to require
physical surrender of this Note upon conversion. 

               (iv)
Pro Rata Conversion; Disputes. In the event that the Company receives a
Conversion Notice from more than one holder of Notes for the same Conversion
Date and the Company can convert some, but not all, of such portions of the
Notes submitted for conversion, the Company, subject to Section 3(d), shall
convert from each holder of Notes electing to have Notes converted on such date
a pro rata amount of such holder's portion of its Notes submitted for conversion
based on the principal amount of Notes submitted for conversion on such date by
such holder relative to the aggregate principal amount of all Notes submitted
for conversion on such date. In the event of a dispute as to the number of
shares of Common Stock issuable to the Holder in connection with a conversion of
this Note, the Company shall issue to the Holder the number of shares of Common
Stock not in dispute and resolve such dispute in accordance with Section 23.

          (d)
Limitations on Conversions and Payments in Shares of Common Stock;
Beneficial Ownership. The Company shall not be obligated to effect any
conversion of this Note or pay any amounts due hereunder in Common Stock, and
the Holder of this Note shall not have the right to convert any portion of this
Note pursuant to Section 3(a) or to require the Company to pay any amounts due
hereunder in Common Stock, in each case to the extent that after giving effect
to such conversion or payment, the Holder (together with the Holder's
affiliates) would beneficially own in excess of 4.99% (the “Maximum
Percentage”) of the number of shares of Common Stock outstanding immediately
after giving effect to such conversion or payment. For purposes of the foregoing
sentence, the number of shares of Common Stock beneficially owned by the Holder
and its affiliates shall include the number of shares of Common Stock issuable
upon the conversion or payment of or in connection with this Note with respect
to which the determination of such sentence is being made, but shall exclude the
number of shares of Common Stock which would be issuable upon (A) conversion of
the remaining, unconverted portion of this Note beneficially owned by the Holder
or any of its affiliates and (B) exercise or conversion of the unexercised or
unconverted portion of any other securities of the Company (including, without
limitation, any Other Notes or Warrants) subject to a limitation on conversion
or exercise analogous to the limitation contained herein beneficially owned by
the Holder or any of its affiliates. Except as set forth in the preceding
sentence, for purposes of this Section 3(d), beneficial ownership shall be
calculated in accordance with Section 13(d) of the Securities Exchange Act of
1934, as amended (the “Exchange Act”). For purposes of this Section 3(d),
in determining the number of outstanding shares of Common Stock, the Holder may
rely on the number of outstanding shares of Common Stock as reflected in (x) the
Company's most recent Form 10-K, Form 10-Q or Form 8-K, as the case may be, (y)
a more recent public announcement by the Company or (z) any other notice by the
Company or the Transfer Agent setting forth the number of shares of Common Stock
outstanding. For any reason at any time, upon the written or oral request of the
Holder, the Company shall within one Trading Day confirm orally and in writing
to the Holder the number of shares of Common Stock then outstanding. In any
case, the number of outstanding shares of Common Stock shall be determined after
giving effect to the conversion or exercise of securities of the Company,
including this Note, by the Holder or its affiliates since the date as of which
such number of outstanding shares of Common Stock was reported. By written
notice to the Company, the Holder may increase or decrease the Maximum
Percentage to any other percentage not in excess of 19.99% specified in such
notice; provided that (i) any such increase will not be effective until the
sixty-first (61st) day after such notice is delivered to the Company,
and (ii) any such increase or decrease will apply only to the Holder and not to
any other holder of Notes.

-5-

     (4) RIGHTS UPON EVENT OF
DEFAULT. 

          (a)
Event of Default. Each of the following events shall constitute an
“Event of Default”: 

               (i)
the suspension from trading or failure of the Common Stock to be listed on an
Eligible Market for a period of five consecutive days or for more than an
aggregate of 10 days in any 365-day period; 

               (ii)
the Company's (A) failure to cure a Conversion Failure by delivery of the
required number of shares of Common Stock within ten Trading Days after the
applicable Conversion Date or (B) notice, written or oral, to any holder of the
Notes, including by way of public announcement or through any of its agents, at
any time, of its intention not to comply with a request for conversion of any
Notes into shares of Common Stock that is tendered in accordance with the
provisions of the Notes; 

-6- 

               (iii)
the Holder's Authorized Share Allocation is less than the number of shares of
Common Stock that the Holder would be entitled to receive upon a full conversion
of this Note (without regard to any limitations on conversion set forth in
Section 3(d) or otherwise) for 10 consecutive Business Days; 

               (iv)
the Company's failure to pay to the Holder any amount of Principal, Interest,
Late Charges or other amounts when and as due under this Note (including,
without limitation, the Company's failure to pay any redemption payments,
premiums or other amounts hereunder) or any other Transaction Document (as
defined in the Securities Purchase Agreement) except in the case of a failure to
pay Interest and Late Charges when and as due, in which case only if such
failure continues for a period of at least five Trading Days; 

               (v)
the Company shall either (i) fail to pay, when due, or within any applicable
grace period, any payment with respect to any Indebtedness in excess of $250,000
due to any third party, other than, with respect to unsecured Indebtedness only,
payments contested by the Company in good faith by proper proceedings and with
respect to which adequate reserves have been set aside for the payment thereof
in accordance with GAAP, or otherwise be in breach or violation of any agreement
for monies owed or owing in an amount in excess of $250,000, which breach or
violation permits the other party thereto to declare a default or otherwise
accelerate amounts due thereunder, or (ii) suffer to exist any other
circumstance or event that would, with or without the passage of time or the
giving of notice, result in a default or event of default under any agreement
binding the Company, which default or event of default would or is likely to
have a material adverse effect on the business, operations, properties,
prospects or financial condition of the Company or any of its Subsidiaries,
individually or in the aggregate; 

               (vi)
the Company or any of its Subsidiaries, pursuant to or within the meaning of
Title 11, U.S. Code, or the Bankruptcy and Insolvency Act (Canada), or any
similar Federal, foreign or state law for the relief of debtors (collectively,
“Bankruptcy Law”), (A) commences a voluntary case, (B) consents to the
entry of an order for relief against it in an involuntary case, (C) consents to
the appointment of a receiver, trustee, assignee, liquidator or similar official
(a “Custodian”), (D) makes a general assignment for the benefit of its
creditors or (E) admits in writing that it is generally unable to pay its debts
as they become due; 

               (vii)
a court of competent jurisdiction enters an order or decree under any Bankruptcy
Law that (A) is for relief against the Company or any of its Subsidiaries in an
involuntary case, (B) appoints a Custodian of the Company or any of its
Subsidiaries or (C) orders the liquidation of the Company or any of its
Subsidiaries; 

               (viii)
bankruptcy, insolvency, reorganization or liquidation proceedings or other
proceedings for the relief of debtors shall be instituted by or against the
Company or any of its Subsidiaries and, if instituted against the Company or any
of its Subsidiaries by a third party, shall not be dismissed within 60 days of
their initiation; 

               (ix)
a final judgment or judgments for the payment of money aggregating in excess of
$500,000 are rendered against the Company or any of its Subsidiaries, which
judgments are not, within 60 days after the entry thereof, bonded, discharged or
stayed pending appeal, or are not discharged within 60 days after the
expiration of such stay; provided, however, that any judgment that is covered by
insurance or an indemnity from a credit worthy party shall not be included in
calculating the $500,000 amount set forth above; 

-7- 

               (x)
the Company breaches any representation, warranty, covenant (other than the
covenants set forth in Section 14 of this Note) or other term or condition of
any Transaction Document, except, in the case of a breach of a covenant which is
curable, only if such breach continues for a period of at least 10 consecutive
days after written notice thereof to the Company by the Holder; 

               (xi)
any breach or failure to comply with Section 14 of this Note; 

               (xii)
the Company fails to remove any restrictive legend on any certificate or any
shares of Common Stock issued to the holders of Notes upon conversion of the
Notes as and when required by the Notes or the Securities Purchase Agreement (a
“Legend Removal Failure”), and any such failure continues uncured for
five Business Days after the Company has been notified thereof in writing by the
holder; or 

               (xiii)
any Event of Default (as defined in the Other Notes) occurs with respect to any
Other Notes. 

          (b)
Redemption Right. Upon the occurrence of an Event of Default with respect
to this Note or any Other Note, the Company shall within one Business Day
deliver written notice thereof via confirmed facsimile and overnight courier (an
“Event of Default Notice”) to the Holder. At any time after the earlier
of the Holder's receipt of an Event of Default Notice and the Holder becoming
aware of an Event of Default, the Holder may require the Company to redeem all
or any portion of this Note by delivering written notice thereof (the “Event
of Default Redemption Notice”) to the Company, which Event of Default
Redemption Notice shall indicate the amount of Principal of this Note the Holder
is electing to redeem. Each portion of the Principal amount of this Note subject
to redemption by the Company pursuant to this Section 4(b) shall be redeemed by
the Company at a price (the “Event of Default Redemption Price”) equal to
110% of the sum of (i) any accrued and unpaid Interest on the Conversion Amount
being redeemed, plus (ii) any accrued and unpaid Late Charges on such Conversion
Amount and Interest, plus (iii) the greater of (A) the sum of (1) the Conversion
Amount to be redeemed and (2) an amount equal to 100% of the Interest that would
have been earned on the Conversion Amount from the Conversion Date through the
Maturity Date., and (B) the product of (1) the Conversion Rate with respect to
such Conversion Amount in effect at such time as the Holder delivers an Event of
Default Redemption Notice, and (2) the highest Closing Sale Price of the Common
Stock during the period beginning on the date immediately preceding such Event
of Default and ending on the date immediately preceding the payment of the Event
of Default Redemption Price. Redemptions required by this Section 4(b) shall be
made in accordance with the provisions of Section 12, to the extent applicable.
To the extent redemptions required by this Section 4(b) are deemed or determined
by a court of competent jurisdiction to be prepayments of this Note by the
Company, such redemptions shall be deemed to be voluntary prepayments.
Notwithstanding anything to the contrary in this Section 4, until the Event of
Default Redemption Price (together with any interest thereon) is paid in full, the Conversion Amount
submitted for redemption under this Section 4(b) may be converted, in whole or
in part, by the Holder into Common Stock pursuant to Section 3 hereof. The
parties hereto agree that in the event of the Company's redemption of any
portion of this Note under this Section 4(b), the Holder's damages would be
uncertain and difficult to estimate because of the parties' inability to predict
future interest rates and the uncertainty of the availability of a suitable
substitute investment opportunity for the Holder. Accordingly, any premium due
under this Section 4(b) is intended by the parties to be, and shall be deemed, a
reasonable estimate of the Holder's actual loss of its investment opportunity
and not as a penalty. 

-8- 

     (5) RIGHTS UPON FUNDAMENTAL
TRANSACTION AND CHANGE OF CONTROL. 

          (a)
Assumption. The Company shall not enter into or be party to a Fundamental
Transaction unless (i) the Successor Entity and, if an entity other than the
Successor Entity is the entity whose capital stock or assets the holders of the
Common Stock are entitled to receive as a result of such Fundamental
Transaction, such other entity (the “Other Entity”), assumes in writing
all of the obligations of the Company under this Note and the other Transaction
Documents in accordance with the provisions of this Section 5(a) pursuant to
written agreements in form and substance satisfactory to the Required Holders
and approved by the Required Holders prior to such Fundamental Transaction
(which approval shall not be unreasonably withheld), including agreements to
deliver to each holder of Notes in exchange for such Notes a security of the
Successor Entity or Other Entity, as applicable, evidenced by a written
instrument substantially similar in form and substance to the Notes and with
appropriate provisions such that the rights and interests of the Holder and the
economic value of this Note are in no way diminished by such Fundamental
Transaction, including, without limitation, having a principal amount and
interest rate equal to the principal amounts and the interest rates of the Notes
held by such holder and having similar ranking to the Notes and reasonably
satisfactory to the Required Holders, and (ii) the Successor Entity or the Other
Entity, as applicable (including its Parent Entity), is a publicly traded
corporation whose common stock is quoted on or listed for trading on an Eligible
Market. Upon the occurrence of any Fundamental Transaction, the Successor Entity
or the Other Entity, as applicable, shall succeed to, and be substituted for (so
that from and after the date of such Fundamental Transaction, the provisions of
this Note referring to the “Company” shall refer instead to the Successor Entity
or the Other Entity, as applicable), and may exercise every right and power of
the Company and shall assume all of the obligations of the Company under this
Note with the same effect as if such Successor Entity or such Other Entity, as
applicable, had been named as the Company herein. Upon consummation of the
Fundamental Transaction, the Successor Entity or the Other Entity, as
applicable, shall deliver to the Holder confirmation that there shall be issued
upon conversion or redemption of this Note at any time after the consummation of
the Fundamental Transaction, in lieu of the shares of the Company's Common Stock
(or other securities, cash, assets or other property) issuable upon the
conversion or redemption of the Notes prior to such Fundamental Transaction,
such shares of publicly traded common stock (or its equivalent) of the Successor
Entity or the Other Entity, as applicable, as adjusted in accordance with the
provisions of this Note. The provisions of this Section shall apply similarly
and equally to successive Fundamental Transactions and shall be applied without
regard to any limitations on the conversion or redemption of this Note. 

-9- 

          (b) Redemption Right.

               At
least 45 days before the consummation of a Change of Control, but in no event
later than 15 days prior to the record date for the determination of
stockholders entitled to vote with respect thereto (or, with respect to a tender
offer, or a change in the Board of Directors, if the Company is unable to comply
with this time requirement because of the nature of the Change of Control, as
soon as the Company reasonably believes that the Change of Control is to be
consummated), but not prior to the public announcement of such Change of
Control, the Company shall deliver written notice thereof via facsimile and
overnight courier to the Holder (a “Change of Control Notice”). If
the terms of a Change of Control change materially from those set forth in a
Change of Control Notice, the Company shall deliver a new Change of Control
Notice and the time periods in this clause (b) shall be calculated based upon
the Holder's receipt of the later Change of Control Notice. At any time during
the period (the “Change of Control Period”) beginning after the Holder's
receipt of a Change of Control Notice and ending on the date that is thirty (30)
days after delivery of the Change of Control Notice, the Holder may require the
Company to redeem all or any portion of the outstanding Principal of this Note
by delivering written notice thereof (“Change of Control Redemption
Notice”) to the Company, which Change of Control Redemption Notice shall
indicate the portion of this Note that the Holder is electing to redeem. The
portion of this Note subject to redemption pursuant to this Section 5 (the
“Redemption Portion”) shall be redeemed by the Company for the Change of
Control Redemption Price (as defined in Section 5(b)(ii)), which shall be
payable in cash. 

               As
used in this Section 5, the “Change of Control Redemption Price” shall
mean the greater of: 

               (A)
the sum of (x) the aggregate consideration that the Holder would be entitled to
receive in connection with a Change of Control if the Holder were to fully
convert (without giving effect to any limitations on conversion set forth
herein) the outstanding Principal of this Note into Common Stock pursuant to
Section 3(a) hereof immediately prior to the consummation of such Change of
Control, plus (y) any accrued and unpaid Interest thereon through but excluding
the effective date of the Change of Control and any accrued and unpaid Late
Charges on such Principal and Interest; or 

               (B)
an amount equal to the sum of (x) the outstanding Principal of this Note plus
(y) any accrued and unpaid Interest thereon through but excluding the effective
date of the Change of Control and any accrued and unpaid Late Charges on such
Principal and Interest plus (z) an amount equal to 100% of the Interest that
would have been earned on this Note from the effective date of the Change of
Control through the Maturity Date. 

               (i)
Redemptions required by this Section 5 shall be made in accordance with the
provisions of Section 12 to the extent applicable and shall have priority over
payments to stockholders in connection with a Change of Control. To the extent
redemptions required by this Section 5(b) are deemed or determined by a court of
competent jurisdiction to be prepayments of this Note by the Company, such
redemptions shall be deemed to be voluntary prepayments. Notwithstanding
anything to the contrary in this Section 5, until the Change of Control
Redemption Price (together with any interest thereon) is paid in full, the
Conversion Amount submitted for redemption under this Section 5(b)
(together with any interest thereon) may be converted, in whole or in part,
subject to Section 3(d), by the Holder into Common Stock, or in the event the
Conversion Date is after the consummation of the Change of Control, shares of
stock or equity interests of the Successor Entity or Other Entity, as
applicable, substantially equivalent to the Company's Common Stock pursuant to
Section 3. The parties hereto agree that in the event of the Company's
redemption of any portion of this Note under this Section 5(b), the Holder's
damages would be uncertain and difficult to estimate because of the parties'
inability to predict future interest rates and the uncertainty of the
availability of a suitable substitute investment opportunity for the Holder.
Accordingly, any redemption premium due under this Section 5(b) is intended by
the parties to be, and shall be deemed, a reasonable estimate of the Holder's
actual loss of its investment opportunity and not as a penalty.

-10- 

     (6) RIGHTS UPON CERTAIN CORPORATE
EVENTS. 

     In addition to and not in
substitution for any other rights hereunder, prior to the consummation of any
Fundamental Transaction pursuant to which holders of shares of Common Stock are
entitled to receive securities or other assets with respect to or in exchange
for shares of Common Stock (a “Corporate Event”), the Company shall make
appropriate provision to insure that the Holder will thereafter have the right
to receive upon a conversion of this Note at any time after the consummation of
the Fundamental Transaction but prior to the Maturity Date, in lieu of the
shares of the Common Stock (or other securities, cash, assets or other property)
purchasable upon the conversion of this Note prior to such Fundamental
Transaction, such shares of stock, securities, cash, assets or any other
property whatsoever (including warrants or other purchase or subscription
rights) which the Holder would have been entitled to receive upon the happening
of such Fundamental Transaction had this Note been converted immediately prior
to the consummation of such Fundamental Transaction (without taking into account
any limitations or restrictions on the convertibility of this Note, but after
the calculation of such number of shares, the provisions of Section 3(d) shall
continue to apply). Any provision made pursuant to the preceding sentence shall
be in a form and substance reasonably satisfactory to the Required Holders. The
provisions of this Section shall apply similarly and equally to successive
Corporate Events and shall be applied without regard to any limitations on the
conversion or redemption of this Note. 

     (7) RIGHTS UPON ISSUANCE OF
OTHER SECURITIES. 

          (a)
Adjustment of Conversion Price upon Issuance of Common Stock. If
and whenever after the Issuance Date, the Company issues or sells, or in
accordance with this Section 7(a) is deemed to have issued or sold, any shares
of Common Stock (including, without limitation, the issuance or sale of shares
of Common Stock owned or held by or for the account of the Company and the
issuance of any shares of Common Stock, Options or Convertible Securities in
exchange for any security such as a non-convertible note, but excluding shares
of Common Stock issued or deemed to have been issued or sold by the Company in
connection with any Excluded Security) for a consideration per share (the
“New Issuance Price”) less than a price (the “Applicable
Price”) equal to the Conversion Price in effect immediately prior to such
issue or sale (the foregoing a “Dilutive Issuance”), then immediately
after such Dilutive Issuance, the Conversion Price then in effect shall be
reduced to an amount equal to the product of (A) the Conversion Price in effect
immediately prior to such Dilutive Issuance and (B) the quotient determined by
dividing (1) the sum of (I) the product derived by multiplying the Conversion
Price in effect immediately prior to such Dilutive Issuance and the number of
shares of Common Stock Deemed Outstanding immediately prior to such Dilutive
Issuance plus (II) the consideration, if any, received by the Company upon such
Dilutive Issuance, by (2) the product derived by multiplying (I) the Conversion
Price in effect immediately prior to such Dilutive Issuance by (II) the number
of shares of Common Stock Deemed Outstanding immediately after such Dilutive
Issuance, provided that in no event shall the Conversion Price be reduced
below the Minimum Conversion Price (as defined in Section 28 hereof). For
purposes of determining the adjusted Conversion Price under this Section 7(a),
the following shall be applicable: 

-11- 

               (i)
Issuance of Options. If the Company in any manner grants or sells any
Options, whether or not immediately exercisable, in one transaction or in a
series of related transactions, and the lowest price per share for which one
share of Common Stock is issuable upon the exercise of any such Option or upon
conversion or exchange or exercise of any Convertible Securities issuable upon
exercise of such Option is less than the Applicable Price, then such share of
Common Stock shall be deemed to be outstanding and to have been issued and sold
by the Company at the time of the granting or sale of such Option for such price
per share. For purposes of this Section 7(a)(i), the “lowest price per share for
which one share of Common Stock is issuable upon the exercise of any such Option
or upon conversion or exchange or exercise of any Convertible Securities
issuable upon exercise of such Option” shall be equal to the sum of the lowest
amounts of consideration (if any) received or receivable (but excluding any
contingent amounts) by the Company with respect to any one share of Common Stock
upon the granting or sale of the Option, upon exercise of the Option and upon
conversion, exercise or exchange of any Convertible Security issuable upon
exercise of such Option. No further adjustment of the Conversion Price shall be
made upon the actual issuance of such share of Common Stock or of such
Convertible Securities upon the exercise of such Options or upon the actual
issuance of such Common Stock upon conversion or exchange or exercise of such
Convertible Securities. 

               (ii)
Issuance of Convertible Securities. If the Company in any manner issues
or sells any Convertible Securities, whether or not immediately convertible, in
one transaction or a series of related transactions, and the lowest price per
share for which one share of Common Stock is issuable upon such conversion or
exchange or exercise thereof is less than the Applicable Price, then such shares
of Common Stock shall be deemed to be outstanding and to have been issued and
sold by the Company at the time of the issuance or sale of such Convertible
Securities for such price per share. For the purposes of this Section 7(a)(ii),
the “lowest price per share for which one share of Common Stock is issuable upon
such conversion or exchange or exercise” shall be equal to the sum of the lowest
amounts of consideration (if any) received or receivable (but excluding any
contingent amounts) by the Company with respect to one share of Common Stock
upon the issuance or sale of the Convertible Security and upon conversion,
exercise or exchange of such Convertible Security. No further adjustment of the
Conversion Price shall be made upon the actual issuance of such share of Common
Stock upon conversion or exchange or exercise of such Convertible Securities,
and if any such issue or sale of such Convertible Securities is made upon
exercise of any Options for which adjustment of the Conversion Price had been or
are to be made pursuant to other provisions of this Section 7(a), no further
adjustment of the Conversion Price shall be made by reason of such issue or
sale. 

-12- 

               (iii)
Change in Option Price or Rate of Conversion. If the purchase price
provided for in any Options, the additional consideration, if any, payable upon
the issue, conversion, exchange or exercise of any Convertible Securities, or
the rate at which any Convertible Securities are convertible into or
exchangeable or exercisable for Common Stock changes at any time, the Conversion
Price in effect at the time of such change shall be adjusted to the Conversion
Price that would have been in effect at such time had such Options or
Convertible Securities provided for such changed purchase price, additional
consideration or changed conversion rate, as the case may be, at the time
initially granted, issued or sold. For purposes of this Section 7(a)(iii), if
the terms of any Option or Convertible Security that was outstanding as of the
Subscription Date are changed in the manner described in the immediately
preceding sentence, then such Option or Convertible Security and the shares of
Common Stock deemed issuable upon exercise, conversion or exchange thereof shall
be deemed to have been issued as of the date of such change. No adjustment shall
be made if such adjustment would result in an increase of the Conversion Price
then in effect. 

               (iv)
Calculation of Consideration Received. In case any Option is issued in
connection with the issue or sale of other securities of the Company, together
comprising one integrated transaction in which no specific consideration is
allocated to such Options by the parties thereto, the Options therefor will be
deemed to have been issued for no consideration. If any shares of Common Stock,
Options or Convertible Securities are issued or sold or deemed to have been
issued or sold for cash, the consideration received therefor will be deemed to
be the net amount received by the Company therefor, after deduction of all
underwriting discounts or allowances in connection with such issuance or sale.
If any shares of Common Stock, Options or Convertible Securities are issued or
sold for a consideration other than cash, the amount of the consideration
received therefor will be deemed to be the fair value of such consideration,
except where such consideration consists of securities, in which case the amount
of consideration received by the Company will be the Closing Sale Price of such
securities on the date of receipt. If any Common Stock, Options or Convertible
Securities are issued to the owners of the non-surviving entity in connection
with any merger in which the Company is the surviving entity, the amount of
consideration therefor will be deemed to be the fair value of such portion of
the net assets and business of the non-surviving entity as is attributable to
such Common Stock, Options or Convertible Securities, as the case may be. The
fair value of any consideration other than cash or securities will be determined
in good faith by the Board of Directors of the Company (subject to the right of
the Required Holders to dispute such valuation as described below). If the
Required Holders disagree with the Board of Directors’ determination of fair
value, the Required Holders may submit a notice of disagreement to the Company.
During the 10 days immediately following the Company’s receipt of such notice
(the “Notice Date”), the Required Holders and the Company shall negotiate
in good faith to determine a mutually agreeable fair value. If the parties are
unable to reach agreement within such 10-day period, the fair value of such
consideration will be determined within five Business Days after the
10th day following the Notice Date by an independent, reputable
appraiser jointly selected by the Company and the Required Holders. The
determination of such appraiser shall be deemed binding upon all parties absent
manifest error and the fees and expenses of such appraiser shall be borne by the
Company. If the Company issues (or becomes obligated to issue) shares of Common
Stock pursuant to any antidilution or similar adjustments (other than as a
result of stock splits, stock dividends and the like) contained in any
Convertible Securities or Options outstanding as of the Subscription Date, but not included in Schedule 3(c) to the Securities
Purchase Agreement, then all shares of Common Stock so issued shall be deemed to
have been issued for no consideration. If the Company issues (or becomes
obligated to issue) shares of Common Stock pursuant to any antidilution or
similar adjustments contained in any Convertible Securities or Options included
in Schedule 3(c) to the Securities Purchase Agreement as a result of the
issuance of the Notes and the number of shares that the Company issues (or is
obligated to issue) as a result of such issuance exceeds the amount specified in
Schedule 3(c) to the Securities Purchase Agreement, such excess shares
shall be deemed to have been issued for no consideration. Notwithstanding
anything else herein to the contrary, if Common Stock, Options or Convertible
Securities are issued or sold in conjunction with each other as part of a single
transaction or in a series of related transactions, the holder hereof may elect
to determine the amount of consideration deemed to be received by the Company
therefor by deducting the fair value of any type of securities (the
“Disregarded Securities”) issued or sold in such transaction or series of
transactions. If the holder makes an election pursuant to the immediately
preceding sentence, no adjustment to the Conversion Price shall be made pursuant
to this Section 7(a) for the issuance of the Disregarded Securities or upon any
conversion, exercise or exchange thereof. 

-13- 

               (v)
Record Date. If the Company takes a record of the holders of Common Stock
for the purpose of entitling them (A) to receive a dividend or other
distribution payable in Common Stock, Options or in Convertible Securities or
(B) to subscribe for or purchase Common Stock, Options or Convertible
Securities, then such record date will be deemed to be the date of the issue or
sale of the Common Stock deemed to have been issued or sold upon the declaration
of such dividend or the making of such other distribution or the date of the
granting of such right of subscription or purchase, as the case may be. 

          (b)
Adjustment of Conversion Price upon Subdivision or Combination of Common
Stock. If the Company at any time on or after the Issuance Date subdivides
(by any stock split, stock dividend, recapitalization or otherwise) one or more
classes of its outstanding shares of Common Stock into a greater number of
shares, the Conversion Price and the Minimum Conversion Price in effect
immediately prior to such subdivision will be proportionately reduced. If the
Company at any time on or after the Issuance Date combines (by combination,
reverse stock split or otherwise) one or more classes of its outstanding shares
of Common Stock into a smaller number of shares, the Conversion Price and the
Minimum Conversion Price in effect immediately prior to such combination will be
proportionately increased. Any adjustment under this Section 7(b) shall become
effective at the close of business on the date the subdivision or combination
becomes effective. 

          (c)
Other Events. If any event occurs of the type contemplated by the
provisions of this Section 7 but not expressly provided for by such provisions
(including, without limitation, the granting of stock appreciation rights,
phantom stock rights or other rights with equity features, other than Excluded
Securities), then the Company's Board of Directors will make an appropriate
adjustment in the Conversion Price and the Minimum Conversion Price so as to
protect the rights of the Holder under this Note; provided that no such
adjustment will increase the Conversion Price as otherwise determined pursuant
to this Section 7.

-14- 

          (d)
De Minimis Adjustments. No adjustment in the Conversion Price shall be
required unless such adjustment would require an increase or decrease of at
least USD$0.01 in such price; provided, however, that any adjustment which by
reason of this Section 7(d) is not required to be made shall be carried forward
and taken into account in any subsequent adjustments under this Section 7. All
calculations under this Section 7 shall be made by the Company in good faith and
shall be made to the nearest cent or to the nearest one hundredth of a share, as
applicable. No adjustment need be made for a change in the par value or no par
value of the Company’s Common Stock. 

          (e)
Notice of Adjustments. Upon the occurrence of any event which requires
any adjustment or readjustment of the Conversion Price pursuant to this Section
7 or any change in the number or type of stock, securities and/or other property
issuable upon conversion of the Notes, the Company, at its expense, shall
promptly make a public announcement of such adjustment or readjustment and shall
give notice thereof to the Holder, which notice shall state the Conversion Price
resulting from such adjustment or readjustment and any change in the number or
type of stock, securities and/or other property issuable upon conversion of this
Note, setting forth in reasonable detail the method of calculation and the facts
upon which such calculation is based. Such calculation shall be certified by the
chief financial officer of the Company. The Company shall, upon the written
request at any time of the Holder, furnish a like certificate setting forth (i)
the Conversion Price at the time in effect and (ii) the number of shares of
Common Stock and the amount, if any, of other securities or property which at
the time would be received upon conversion of this Note.

     (8) COMPANY’S RIGHT OF
OPTIONAL REDEMPTION. 

          (a)
Redemption Right. At any time and from time to time following the
Issuance Date, the Company may elect, at its option, to redeem all or any
portion of the outstanding Principal of the Notes, on a pro rata basis, by
delivering written notice thereof (the “ Optional Redemption Notice”) at
least thirty (30) days in advance of the date scheduled for redemption (the “
Optional Redemption Date”) to the holders of the Notes, which
Optional Redemption Notice shall indicate the portion of the Notes that the
Company is electing to redeem. The portion of this Note subject to redemption
pursuant to this Section 8 (the “Optional Redemption Portion”) shall be
redeemed by the Company for the Option Redemption Price (as defined in Section
8(b)), which shall be paid to the Holder in cash on the Optional Redemption
Date.

          (b)
As used in this Section 8, the “Optional Redemption Price” shall mean:

               (i)
With respect to any Optional Redemption Notice delivered on or before the first
anniversary of the Issuance Date, an amount equal to the sum of (A) the
outstanding Principal of the Optional Redemption Portion of this Note, plus (B)
any accrued and unpaid Interest thereon through but excluding the Optional
Redemption Date, and any accrued and unpaid Late Charges thereon, plus (C) an
amount equal to 25% of the Optional Redemption Portion. 

-15- 

               (ii)
With respect to any Optional Redemption Notice delivered after the first
anniversary of the Issuance Date, an amount equal to the sum of (A) the
outstanding Principal of the Optional Redemption Portion of this Note, plus (B)
any accrued and unpaid Interest thereon through but excluding the Optional
Redemption Date and any accrued and unpaid Late Charges thereon, plus (C) an
amount equal to 50% of the Optional Redemption Portion. 

Notwithstanding anything to the contrary in this Section 8,
until the Optional Redemption Price is paid, in full, the portion of the
Principal of this Note to be redeemed may be converted, in whole or in part, by
the Holder into shares of Common Stock pursuant to Section 3. All Principal
converted by the Holder after the date of the Optional Redemption Notice shall
reduce the Principal of this Note required to be redeemed on the Optional
Redemption Date.

          (c)
Redemptions made pursuant to this Section 8 shall be made in accordance with
Section 12 to the extent applicable. 

     (9) SECURITY. On the
Springing Lien Date (as hereinafter defined), a security interest may be filed,
to the extent and in the manner set forth in the Security Documents (as defined
in the Securities Purchase Agreement). 

     (10) NONCIRCUMVENTION. The
Company hereby covenants and agrees that the Company will not, by amendment of
its Certificate of Incorporation, Bylaws or through any reorganization, transfer
of assets, consolidation, merger, scheme of arrangement, dissolution, issue or
sale of securities, or any other voluntary action, avoid or seek to avoid the
observance or performance of any of the terms of this Note, and will at all
times in good faith carry out all of the provisions of this Note and take all
action as may be required to protect the rights of the Holder of this Note.

     (11) RESERVATION OF AUTHORIZED
SHARES. 

          (a)
Reservation. The Company shall reserve out of its authorized and unissued
Common Stock a number of shares of Common Stock for each of the Notes equal to
120% of the Conversion Rate with respect to the Conversion Amount of each such
Note as of the Issuance Date. For so long as any of the Notes are
outstanding, the Company shall take all action necessary to reserve and keep
available out of its authorized and unissued Common Stock, solely for the
purpose of effecting the conversion of the Notes, 120% of the number of shares
of Common Stock as shall from time to time be necessary to effect the conversion
of all of the Notes then outstanding; provided that at no time shall the number
of shares of Common Stock so reserved be less than the number of shares required
to be reserved by the previous sentence (without regard to any limitations on
conversions) (the “Required Reserve Amount”). The initial number of
shares of Common Stock reserved for conversions of the Notes and each increase
in the number of shares so reserved shall be allocated pro rata among the
holders of the Notes based on the principal amount of the Notes held by each
holder at the Closing or increase in the number of reserved shares, as the case
may be (the “Authorized Share Allocation”). In the event that a holder
shall sell or otherwise transfer any of such holder's Notes, each transferee
shall be allocated a pro rata portion of such holder's Authorized Share
Allocation. Any shares of Common Stock reserved and allocated to any Person that ceases to hold any Notes shall be allocated to the remaining
holders of Notes, pro rata based on the principal amount of the Notes then held
by such holders.

-16- 

          (b)
Insufficient Authorized Shares. If at any time while any of the Notes
remain outstanding the Company does not have a sufficient number of authorized
and unreserved shares of Common Stock to satisfy its obligation to reserve for
issuance upon conversion of the Notes at least a number of shares of Common
Stock equal to the Required Reserve Amount (an “Authorized Share
Failure”), then the Company shall immediately take all action necessary to
increase the Company's authorized shares of Common Stock to an amount sufficient
to allow the Company to reserve the Required Reserve Amount for the Notes then
outstanding. Without limiting the generality of the foregoing sentence, as soon
as practicable after the date of the occurrence of an Authorized Share Failure,
but in no event later than 60 days after the occurrence of such Authorized Share
Failure, the Company shall hold a meeting of its stockholders for the approval
of an increase in the number of authorized shares of Common Stock. In connection
with such meeting, the Company shall provide each stockholder with a proxy
statement and shall use its best efforts to solicit its stockholders' approval
of such increase in authorized shares of Common Stock and to cause its board of
directors to recommend to the stockholders that they approve such proposal. In
lieu of holding a meeting of its stockholders, the Company may obtain
stockholder approval of the increase in the number of authorized shares of
Common Stock by written consent in lieu of meeting to the extent permitted by
law and the rules of any Eligible Market upon which the Common Stock is then
traded. 

     (12) REDEMPTIONS. 

               (a)
Mechanics. The Company shall deliver the applicable Event of Default
Redemption Price to the Holder within five Business Days after the Company's
receipt of the Holder's Event of Default Redemption Notice. If the Holder has
submitted a Change of Control Redemption Notice in accordance with Section 5(b),
the Company shall deliver the applicable Change of Control Redemption Price to
the Holder concurrently with the consummation of such Change of Control if such
notice is received prior to the consummation of such Change of Control and
within five Business Days after the Company's receipt of such notice otherwise.
The Company shall deliver the Optional Redemption Price to the Holder on the
Optional Redemption Date specified in the Optional Redemption Notice as
specified in Section 8. In the event of a redemption of less than all of the
Principal of this Note and provided that the Holder has delivered this Note to
the Company, the Company shall promptly cause to be issued and delivered to the
Holder a new Note (in accordance with Section 18(d)) representing the
outstanding Principal which has not been redeemed. If the Company fails to pay
the Holder the applicable Redemption Price to the Holder within the time period
required, at any time thereafter and until the Company pays such unpaid
Redemption Price in full, the Holder shall have the option, by written notice to
the Company, in lieu of redemption, to require the Company to promptly return to
the Holder all or any portion of this Note representing the Conversion Amount
that was submitted or called for redemption and for which the applicable
Redemption Price (together with any Late Charges thereon) has not been paid.
Upon the Company's receipt of such notice, (x) the Redemption Notice shall be
null and void with respect to such Conversion Amount, (y) the Company shall
immediately return this Note, or issue a new Note (in accordance with Section
18(d)) to the Holder representing the sum of such Conversion Amount to be redeemed together with
accrued and unpaid Interest with respect to such Conversion Amount and accrued
and unpaid Late Charges with respect to such Conversion Amount and Interest and
(z) the Conversion Price of this Note or such new Notes shall be adjusted to the
lesser of (A) the Conversion Price as in effect on the date on which the
Redemption Notice is voided and (B) the lowest Closing Sale Price of the Common
Stock during the period beginning on and including the date on which the
Redemption Notice is delivered to the Company and ending on and including the
date on which the Redemption Notice is voided. The Holder's delivery of a notice
voiding a Redemption Notice and exercise of its rights following such notice
shall not affect the Company's obligations to make any payments of Late Charges
which have accrued prior to the date of such notice with respect to the
Conversion Amount subject to such notice. 

-17- 

               (b)
Redemption by Other Holders. Upon the Company's receipt of notice from
any of the holders of the Other Notes for redemption or repayment as a result of
an event or occurrence substantially similar to the events or occurrences
described in Section 4(a), Section 5(b) or Section 8 (each, an “Other
Redemption Notice”), the Company shall immediately, but no later than one
Business Day of its receipt thereof, forward to the Holder by facsimile a copy
of such notice and make a prompt public announcement thereof. If the Company
receives a Redemption Notice and one or more Other Redemption Notices during the
seven Business Day period beginning on and including the date which is three
Business Days prior to the Company's receipt of the Holder's Redemption Notice
and ending on and including the date which is three Business Days after the
Company's receipt of the Holder's Redemption Notice and the Company is unable to
redeem all principal, interest and other amounts designated in such Redemption
Notice and such Other Redemption Notices received during such seven Business Day
period, then the Company shall redeem a pro rata amount from each holder of the
Notes (including the Holder) based on the principal amount of the Notes
submitted for redemption pursuant to such Redemption Notice and such Other
Redemption Notices received by the Company during such seven Business Day
period. 

     (13) VOTING RIGHTS. The
Holder shall have no voting rights as the holder of this Note, except as
required by law, including, but not limited to, the Delaware General Corporation
Law, and as expressly provided in this Note. 

     (14) COVENANTS.

               (a)
Rank. This Note is subordinated in right of payment to those certain
Series B Convertible Secured Debentures (the “Senior Debt”) issued by the
Company to certain holders pursuant to a Trust Indenture dated as of December 7,
2016 entered into between the Company, Security Devices International Canada
Corp., and TSX Trust Company, as trustee (the “Trustee”), in the
aggregate original principal amount of CAD $1,550,000. The Company hereby
agrees, and by accepting this Note, the Holder hereby acknowledges and agrees,
that so long as any Senior Debt is outstanding, upon notice from the Trustee
that an event of default, or any event which the giving of notice or the passage
of time or both would constitute an event of default, has occurred under the
terms of the Senior Debt (a “Senior Default Notice”), the Company
will not make, and the Holder will not receive or retain, any payment under this
Note. Nothing in this paragraph will preclude or prohibit the Holder from
receiving and retaining any payment hereunder unless and until the Holder has
received notice of a Senior Default Notice or from converting this Note or any
amounts due hereunder into Common Stock. All payments due under this Note shall
rank pari passu with all Other Notes from this offering. Upon the
occurrence of the Springing Lien Date (as defined in the Securities Purchase
Agreement), the Springing Lien (as defined in the Securities Purchase Agreement)
shall take effect, granting the Collateral Agent (as defined in the Securities
Purchase Agreement) a security interest in the Company’s assets, subject to the
obligations of the Company or its Subsidiaries under any lease of real or
personal property by such Person as lessee which is required under GAAP to be
capitalized on such Person’s balance sheet and Indebtedness permitted by clause,
provided that a Permitted Lien shall be permitted hereunder and thereunder. 

-18- 

               (b)
Incurrence of Indebtedness. On and after the Springing Lien Date, the
Company shall not, and the Company shall not permit any of its Subsidiaries to,
directly or indirectly, incur or guarantee, assume or suffer to exist any
Indebtedness, other than (i) the Indebtedness evidenced by the Notes, (ii)
Permitted Indebtedness and (iii) Indebtedness incurred solely to repay the Notes
at Maturity and which has a maturity later than and is pari passu or
junior in right of payment to the Notes. 

               (c)
Existence of Liens. On and after the Springing Lien Date, the Company
shall not, and the Company shall not permit any of its Subsidiaries to, directly
or indirectly, allow or suffer to exist any mortgage, lien, pledge, charge,
security interest or other encumbrance upon or in any property or assets
(including accounts and contract rights) owned by the Company or any of its
Subsidiaries (collectively, “Liens”) other than Permitted Liens. 

               (d)
Restricted Payments. The Company shall not, and the Company shall not
permit any of its Subsidiaries to, directly or indirectly, (i) redeem, defease,
repurchase, repay or make any payments in respect of, by the payment of cash or
cash equivalents (in whole or in part, whether by way of open market purchases,
tender offers, private transactions or otherwise), all or any portion of any
Permitted Indebtedness, whether by way of payment in respect of principal of (or
premium, if any) or interest on, such Indebtedness if at the time such payment
is due or is otherwise made or, after giving effect to such payment, an event
constituting, or that with the passage of time and without being cured would
constitute, an Event of Default has occurred and is continuing, (ii) declare or
pay any cash dividend or distribution on the Common Stock or (iii) redeem,
repurchase or otherwise acquire or retire for value any shares of Common Stock.
Notwithstanding the foregoing, the prohibitions and limitations on payment or
repayment shall not apply in any way to Permitted Indebtedness incurred pursuant
to provision 28(q)(E). 

               (e)
Use of Proceeds. The Company shall use the proceeds from the sale and
issuance of the Notes for general corporate purposes and working capital. Such
proceeds shall not be used to (i) pay dividends; (ii) pay for any increase in
executive compensation or make any loan or other advance to any officer,
employee, shareholder, director or other affiliate of the Company, without the
express approval of the Board of Directors acting in accordance with past
practice; (iii) purchase debt or equity securities of any entity (including
redeeming the Company’s own securities) other than scheduled principal payments
and repayments at maturity, except for (A) evidences of indebtedness issued or
fully guaranteed by the United States of America or the Government of Canada and
having a maturity of not more than one year from the date of
acquisition, (B) certificates of deposit, notes, acceptances and repurchase
agreements having a maturity of not more than one year from the date of
acquisition issued by a bank organized in the United States or Canada having
capital, surplus and undivided profits of at least $500,000,000, (C) the
highest-rated commercial paper having a maturity of not more than one year from
the date of acquisition, and (D) “Money Market” fund shares, or money market
accounts fully insured by the Federal Deposit Insurance Corporation or the
Canada Deposit Insurance Corporation and sponsored by banks and other financial
institutions, provided that the investments consist principally of the types of
investments described in clauses (A), (B), or (C) above; or (iv) make any
investment not directly related to the current business of the Company. 

-19- 

               (f)
Par Value. So long as any Notes are outstanding, the Company shall not
change the par value of the Common Stock without the written consent of the
Required Holders. 

     (15) PARTICIPATION. The
Holder, as the holder of this Note, shall be entitled to receive such dividends
paid and distributions made to the holders of Common Stock to the same extent as
if the Holder had converted this Note into Common Stock (without regard to any
limitations on conversion herein or elsewhere) and had held such shares of
Common Stock on the record date for such dividends and distributions. Payments
under the preceding sentence shall be made concurrently with the dividend or
distribution to the holders of Common Stock.

     (16) VOTE TO ISSUE, OR CHANGE
THE TERMS OF, NOTES. This Note and the Other Notes shall be amended in
accordance with the terms of any resolution approved by the affirmative vote at
a meeting duly called for such purpose or the written consent without a meeting
of the Required Holders; provided that the Company approves any such amendment
in writing and, further provided that, without the consent of each Holder so
affected, no amendment shall (a) reduce the Principal of or Interest Rate on
this Note, (b) postpone the Maturity Date or any date fixed for the payment of
any Interest on this Note, (c) increase the percentage specified in the
definition of “Required Holders,” (d) amend Section 3(d) or the application of
Section 3(d) to any other provision of this Note or (e) have the effect of
creating different provisions in different Notes, provided that nothing
contained herein shall prohibit the Holder from waiving any of the Holder’s
rights hereunder or under any of the other Transaction Documents.

     (17) TRANSFER. This Note
is subject to certain restrictions on transfer set forth in Section 5 of the
Securities Purchase Agreement; provided, however, that this Note and any shares
of Common Stock issued upon conversion of this Note may be offered for sale,
sold, assigned or transferred by the Holder without the consent of the Company,
subject to applicable securities law restrictions. Notwithstanding the foregoing
or any other provisions hereof, the Holder may not transfer this Note unless the
transferee agrees in writing to be bound by all of the provisions of the
Transaction Documents (including, but not limited to, Section 8 of the Security
Purchase Agreement), and it shall be a condition to any such transfer that any
such transferee execute and deliver appropriate documentation, in form and
substance reasonably satisfactory to the Company and the Collateral Agent, to
such effect. 

-20- 

     (18) REISSUANCE OF THIS
NOTE. 

          (a)
Transfer. If this Note is to be transferred, the Holder shall surrender
this Note to the Company, whereupon the Company will forthwith issue and deliver
upon the order of the Holder a new Note (in accordance with Section 18(d)),
registered as the Holder may request, representing the outstanding Principal
being transferred by the Holder and, if less than the entire outstanding
Principal is being transferred, a new Note (in accordance with Section 18(d)) to
the Holder representing the outstanding Principal not being transferred. The
Holder and any assignee, by acceptance of this Note, acknowledge and agree that,
by reason of the provisions of Section 3(c)(v) following conversion or
redemption of any portion of this Note, the outstanding Principal represented by
this Note may be less than the Principal amount stated on the face of this Note.

          (b)
Lost, Stolen or Mutilated Note. Upon receipt by the Company of evidence
reasonably satisfactory to the Company of the loss, theft, destruction or
mutilation of this Note, and, in the case of loss, theft or destruction, of any
indemnification undertaking by the Holder to the Company in customary form and,
in the case of mutilation, upon surrender and cancellation of this Note, the
Company shall execute and deliver to the Holder a new Note (in accordance with
Section 18(d)) representing the outstanding Principal. 

          (c)
Note Exchangeable for Different Denominations. This Note is exchangeable,
upon the surrender hereof by the Holder at the principal office of the Company,
for a new Note or Notes (in accordance with Section 18(d) and in principal
amounts of at least $1,000) representing in the aggregate the outstanding
Principal of this Note, and each such new Note will represent such portion of
such outstanding Principal as is designated by the Holder at the time of such
surrender. 

          (d)
Issuance of New Notes. Whenever the Company is required to issue a new
Note pursuant to the terms of this Note, such new Note (i) shall be of like
tenor with this Note, (ii) shall represent, as indicated on the face of such new
Note, the Principal remaining outstanding (or in the case of a new Note being
issued pursuant to Section 18(a) or Section 18(c), the Principal designated by
the Holder which, when added to the principal represented by the other new Notes
issued in connection with such issuance, does not exceed the Principal remaining
outstanding under this Note immediately prior to such issuance of new Notes),
(iii) shall have an issuance date, as indicated on the face of such new Note,
which is the same as the Issuance Date of this Note, (iv) shall have the same
rights and conditions as this Note, and (v) shall represent accrued Interest and
Late Charges on the Principal and Interest of this Note, from the Issuance Date.

     (19) REMEDIES, CHARACTERIZATIONS,
OTHER OBLIGATIONS, BREACHES AND INJUNCTIVE RELIEF. The remedies provided
in this Note shall be cumulative and in addition to all other remedies available
under this Note and any of the other Transaction Documents at law or in equity
(including a decree of specific performance and/or other injunctive relief), and
nothing herein shall limit the Holder's right to pursue actual and consequential
damages for any failure by the Company to comply with the terms of this Note.
The Company covenants to the Holder that there shall be no characterization
concerning this instrument other than as expressly provided herein. Amounts set
forth or provided for herein with respect to payments, conversion and the like (and the
computation thereof) shall be the amounts to be received by the Holder and shall
not, except as expressly provided herein, be subject to any other obligation of
the Company (or the performance thereof). The Company acknowledges that a breach
by it of its obligations hereunder will cause irreparable harm to the Holder and
that the remedy at law for any such breach may be inadequate. The Company
therefore agrees that, in the event of any such breach or threatened breach, the
Holder shall be entitled, in addition to all other available remedies, to an
injunction restraining any breach, without the necessity of showing economic
loss and without any bond or other security being required. 

-21- 

     (20) PAYMENT OF COLLECTION,
ENFORCEMENT AND OTHER COSTS. If (a) this Note is placed in the hands
of an attorney for collection or enforcement or is collected or enforced through
any legal proceeding or the Holder otherwise takes action to collect amounts due
under this Note or to enforce the provisions of this Note or (b) there occurs
any bankruptcy, reorganization, receivership of the Company or other proceedings
affecting Company creditors' rights and involving a claim under this Note, then
the Company shall pay the costs incurred by the Holder for such collection,
enforcement or action or in connection with such bankruptcy, reorganization,
receivership or other proceeding, including, but not limited to, attorneys' fees
and disbursements. 

     (21) CONSTRUCTION;
HEADINGS. This Note shall be deemed to be jointly drafted by the Company and
the Holder and shall not be construed against any person as the drafter hereof.
The headings of this Note are for convenience of reference and shall not form
part of, or affect the interpretation of, this Note. 

     (22) FAILURE OR INDULGENCE NOT
WAIVER. No failure or delay on the part of the Holder in the exercise of any
power, right or privilege hereunder shall operate as a waiver thereof, nor shall
any single or partial exercise of any such power, right or privilege preclude
other or further exercise thereof or of any other right, power or privilege.

     (23) DISPUTE RESOLUTION.
In the case of a dispute as to the determination of the Closing Bid Price, the
Closing Sale Price or the Weighted Average Price or the arithmetic calculation
of the Conversion Rate, any Conversion Default Payment or the Redemption Price,
the Company shall submit the disputed determinations or arithmetic calculations
via facsimile within one Business Day of receipt, or deemed receipt, of the
Conversion Notice or Redemption Notice or other event giving rise to such
dispute, as the case may be, to the Holder. If the Holder and the Company are
unable to agree upon such determination or calculation within one Business Day
of such disputed determination or arithmetic calculation being submitted to the
Holder, then the Company shall, within one Business Day submit via facsimile (a)
the disputed determination of the Closing Bid Price, the Closing Sale Price or
the Weighted Average Price to an independent, reputable investment bank selected
by the Company and approved by the Holder or (b) the disputed arithmetic
calculation of the Conversion Rate, the Conversion Default Payment or the
Redemption Price to the Company's independent, outside accountant. The Company,
at the Company's expense, shall cause the investment bank or the accountant, as
the case may be, to perform the determinations or calculations and notify the
Company and the Holder of the results no later than five Business Days from the
time it receives the disputed determinations or calculations. Such investment bank's or
accountant's determination or calculation, as the case may be, shall be binding
upon all parties absent demonstrable error. 

-22- 

     (24) NOTICES; PAYMENTS;
EXCHANGE RATE. 

          (a)
Notices. Whenever notice is required to be given under this Note, unless
otherwise provided herein, such notice shall be given in accordance with Section
9(f) of the Securities Purchase Agreement. The Company shall provide the Holder
with prompt written notice of all actions taken pursuant to this Note, including
in reasonable detail a description of such action and the reason therefor.
Without limiting the generality of the foregoing, the Company will give written
notice to the Holder (i) immediately upon any adjustment of the Conversion
Price, setting forth in reasonable detail, and certifying, the calculation of
such adjustment and (ii) at least 10 days prior to the date on which the Company
closes its books or takes a record (A) with respect to any dividend or
distribution upon the Common Stock, (B) with respect to any pro rata
subscription offer to holders of Common Stock or (C) for determining rights to
vote with respect to any Fundamental Transaction, dissolution or liquidation,
provided in each case that such information shall be made known to the public
prior to or in conjunction with such notice being provided to the Holder.
Notwithstanding anything herein to the contrary, the Company shall not provide
the Holder with any material non-public information without the Holder's prior
written consent. 

          (b)
Payments. Whenever any payment of cash is to be made by the Company to
any Person pursuant to this Note, such payment shall be made in lawful money of
the United States of America via wire transfer of immediately available funds in
accordance with the Holder's wire transfer instructions provided to the Company
by the Holder. Whenever any amount expressed to be due by the terms of this Note
is due on any day which is not a Business Day, the same shall instead be due on
the next succeeding day which is a Business Day and, in the case of any Interest
Date which is not the date on which this Note is paid in full, the extension of
the due date thereof shall not be taken into account for purposes of determining
the amount of Interest due on such date. Any amount of Principal or other
amounts due under the Transaction Documents, other than Interest, which is not
paid when due shall result in a late charge being incurred and payable by the
Company in an amount equal to interest on such amount at the rate of 15.0% per
annum from the date such amount was due until the same is paid in full (“Late
Charge”). 

          (c)
Exchange Rates. For purposes of determining compliance with any U.S.
Dollar denominated restriction set forth in this Note and any related
definitions containing any such restriction, to the extent an event is in a
currency other than U.S. Dollars, the equivalent amount denominated in such
other currency shall be calculated based on the relevant currency exchange rate
in effect on the date the event occurs. For purposes of calculating the
Conversion Price, Conversion Rate, any Conversion Default Payment or the
Redemption Price under this Note, to the extent the Closing Bid Price, Closing
Sale Price or the Weighted Average Price of the Common Stock is in a currency
other than U.S. Dollars, the equivalent amount denominated in U.S. Dollars shall
be calculated based on the relevant currency exchange rate as published by The
Wall Street Journal on the date the event requiring such calculation occurs.

-23- 

     (25) CANCELLATION. After all
Principal, accrued Interest and other amounts at any time owed on this Note
have been paid in full, this Note shall automatically be deemed canceled, shall
be surrendered to the Company for cancellation and shall not be reissued. 

     (26) WAIVER OF NOTICE. To
the extent permitted by law, the Company hereby waives demand, notice, protest
and all other demands and notices in connection with the delivery, acceptance,
performance, default or enforcement of this Note and the Securities Purchase
Agreement. 

     (27) GOVERNING LAW;
JURISDICTION; JURY TRIAL. This Note shall be construed and enforced in
accordance with, and all questions concerning the construction, validity,
interpretation and performance of this Note shall be governed by, the internal
laws of the Commonwealth of Massachusetts, without giving effect to any choice
of law or conflict of law provision or rule (whether of the Commonwealth of
Massachusetts or any other jurisdictions) that would cause the application of
the laws of any jurisdictions other than the Commonwealth of Massachusetts. The
Company and the Holder irrevocably consent to the exclusive jurisdiction of the
United States federal courts and the state courts located in the City of Boston,
Suffolk County, in any suit or proceeding based on or arising under this Note
and irrevocably agree that all claims in respect of such suit or proceeding may
be determined in such courts. The Company irrevocably waives the defense of an
inconvenient forum to the maintenance of such suit or proceeding in such forum.
The Company further agrees that service of process upon the Company mailed by
first class mail shall be deemed in every respect effective service of process
upon the Company in any such suit or proceeding. Nothing herein shall affect the
right of the Holder to serve process in any other manner permitted by law. The
Company agrees that a final non-appealable judgment in any such suit or
proceeding shall be conclusive and may be enforced in other jurisdictions by
suit on such judgment or in any other lawful manner. EACH PARTY HEREBY
IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE TO, AND AGREES NOT TO REQUEST, A JURY
TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION WITH OR
ARISING OUT OF THIS NOTE OR ANY TRANSACTION CONTEMPLATED HEREBY. 

     (28) CERTAIN DEFINITIONS.
For purposes of this Note, the following terms shall have the following
meanings: 

          (a)
“Bloomberg” means Bloomberg Financial Markets. 

          (b)
“Business Day” means any day other than Saturday, Sunday or other day on
which commercial banks in The City of New York or the City of Toronto, Canada
are authorized or required by law to remain closed. 

          (c)
“Capital Stock” of any person means any and all shares, interests,
participations or other equivalents (however designated) of capital stock of, or
other equity interests in, such Person and all warrants or options to acquire
such capital stock or equity interests. 

          (d)
“Change of Control” means any Fundamental Transaction other than (i) any
reorganization, recapitalization or reclassification of the Common Stock in
which holders of the Company's voting power immediately prior to such
reorganization, recapitalization or reclassification continue after such
reorganization, recapitalization or reclassification to hold publicly traded
securities and, directly or indirectly, the voting power of the surviving entity
or entities necessary to elect a majority of the members of the board of
directors (or their equivalent if other than a corporation) of such entity or
entities, or (ii) pursuant to a migratory merger effected solely for the purpose
of changing the jurisdiction of incorporation of the Company. 

-24- 

          (e)
“Closing Bid Price” and “Closing Sale Price” means, for any
security as of any date, the last closing bid price and last closing trade
price, respectively, for such security on the Principal Market, as reported by
Bloomberg, or, if the Principal Market begins to operate on an extended hours
basis and does not designate the closing bid price or the closing trade price,
as the case may be, then the last bid price or last trade price, respectively,
of such security prior to 4:00:00 p.m., New York Time, as reported by Bloomberg,
or, if the Principal Market is not the principal securities exchange or trading
market for such security, the last closing bid price or last trade price,
respectively, of such security on the Eligible Market that is the principal
securities exchange or trading market where such security is listed or traded as
reported by Bloomberg, or if the foregoing do not apply, the last closing bid
price or last trade price, respectively, of such security in the
over-the-counter market on the electronic bulletin board for such security as
reported by Bloomberg, or, if no closing bid price or last trade price,
respectively, is reported for such security by Bloomberg, the average of the bid
prices, or the ask prices, respectively, of any market makers for such security
as reported in the “pink sheets” by Pink Sheets LLC (formerly the National
Quotation Bureau, Inc.). If the Closing Bid Price or the Closing Sale Price
cannot be calculated for a security on a particular date on any of the foregoing
bases, the Closing Bid Price or the Closing Sale Price, as the case may be, of
such security on such date shall be the fair market value as mutually determined
by the Company and the Holder. If the Company and the Holder are unable to agree
upon the fair market value of such security, then such dispute shall be resolved
pursuant to Section 23. All such determinations shall be appropriately adjusted
for any stock dividend, stock split, stock combination or other similar
transaction during the applicable calculation period. 

          (f)
“Common Stock Deemed Outstanding” means, at any given time, the number of
shares of Common Stock actually outstanding at such time, plus the number of
shares of Common Stock deemed to be outstanding pursuant to Sections 7(a)(i) and
7(a)(ii) hereof regardless of whether the Options or Convertible Securities are
actually exercisable at such time, but excluding any Common Stock owned or held
by or for the account of the Company or issuable upon conversion or exercise, as
applicable, of the Notes. 

          (g)
“Contingent Obligation” means, as to any Person, any direct or indirect
liability, contingent or otherwise, of that Person with respect to any
indebtedness, lease, dividend or other obligation of another Person if the
primary purpose or intent of the Person incurring such liability, or the primary
effect thereof, is to provide assurance to the obligee of such liability that
such liability will be paid or discharged, or that any agreements relating
thereto will be complied with, or that the holders of such liability will be
protected (in whole or in part) against loss with respect thereto. 

-25- 

          (h)
“Convertible Securities” means any stock or securities (other than
Options) directly or indirectly convertible into or exercisable or exchangeable
for shares of Common Stock. 

          (i)
“Eligible Market” means the Principal Market, The Nasdaq Stock Market LLC
or The New York Stock Exchange, Inc. 

          (j)
“Excluded Securities” means any Common Stock issued or issuable: (i) in
connection with mergers, acquisitions, strategic business partnerships or joint
ventures, in each case with non-affiliated third parties and otherwise on an
arm’s length basis, the primary purpose of which, in the reasonable judgment of
the Company’s Board of Directors, is not to raise additional capital; (ii) in
connection with the grant of options to purchase Common Stock or other
stock-based awards or sales, with exercise or purchase prices not less than the
market price of the Common Stock on the date of grant or issuance of the option,
which are issued or sold to employees, officers, consultants or directors of the
Company for the primary purpose of soliciting or retaining their employment or
service pursuant to an equity compensation plan approved by the Company's Board
of Directors, and the Common Stock issued upon the exercise thereof; (iii) upon
conversion of the Notes; or (iv) upon conversion of any Options or Convertible
Securities which are disclosed in Schedule 3(c) of the Securities Purchase
Agreement, provided that the terms of such Options or Convertible Securities are
not amended, modified or changed on or after the Subscription Date without the
consent of the Required Holders. 

          (k)
“Fundamental Transaction” means: (i) a transaction or series of related
transactions pursuant to which the Company: (A) sells, conveys or disposes of
all or substantially all of its assets (or the stock or assets of one or more of
its Subsidiaries which, on a consolidated basis, constitute all or substantially
all of the Company’s assets), determined on either a quantitative or qualitative
basis (the presentation of any such transaction for stockholder approval being
conclusive evidence that such transaction involves the sale of all or
substantially all of the assets of the Company on a consolidated basis); (B)
merges or consolidates with or into, or engages in any other business
combination with, any other person or entity, in any case that results in the
holders of the voting securities of the Company immediately prior to such
transaction holding or having the right to direct the voting of 50% or less of
the total outstanding voting securities of the Company or such other surviving
or acquiring person or entity immediately following such transaction, as the
case may be; or (C) sells or issues, or any of its stockholders sells or
transfers, any securities to any person or entity, or the acquisition or right
to acquire securities by any person or entity, in either case acting
individually or in concert with others, such that, following the consummation of
such transaction(s), such person(s) or entity(ies) (together with their
respective affiliates, as such term is used under Section 13(d) of the Exchange
Act) would own or have the right to acquire greater than 50% of the outstanding
shares of Common Stock; (ii) any reclassification or change of the outstanding
shares of Common Stock (other than a change in par value, or from par value to
no par value, or from no par value to par value, or as a result of a subdivision
or combination); or (iii) any event, transaction or series of related
transactions that results in individuals serving on the Board of Directors on
the date hereof (the “Incumbent Board”) ceasing for any reason to
constitute at least a majority of the Board of Directors; provided, however,
that any individual becoming a director subsequent to the date hereof whose appointment, election, or nomination for election by the
Company's stockholders was approved by a vote of at least a two-thirds of the
directors then comprising the Incumbent Board, after giving effect to this
proviso (other than an appointment, election, or nomination of an individual
whose initial assumption of office is in connection with an actual or threatened
election contest relating to the election of the directors of the Company),
shall be considered as though such person were a member of the Incumbent Board. 

-26- 

          (l)
“GAAP” means United States generally accepted accounting principles,
consistently applied. 

          (m)
“Indebtedness” of any Person means, without duplication (i) all
indebtedness for borrowed money, (ii) all obligations issued, undertaken or
assumed as the deferred purchase price of property or services, including
(without limitation) “capital leases” in accordance with generally accepted
accounting principles (other than trade payables entered into in the ordinary
course of business), (iii) all reimbursement or payment obligations with respect
to letters of credit, surety bonds and other similar instruments, (iv) all
obligations evidenced by notes, bonds, debentures or similar instruments,
including obligations so evidenced incurred in connection with the acquisition
of property, assets or businesses, (v) all indebtedness created or arising under
any conditional sale or other title retention agreement, or incurred as
financing, in either case with respect to any property or assets acquired with
the proceeds of such indebtedness (even though the rights and remedies of the
seller or bank under such agreement in the event of default are limited to
repossession or sale of such property), (vi) all monetary obligations under any
leasing or similar arrangement which, in connection with generally accepted
accounting principles, consistently applied for the periods covered thereby, is
classified as a capital lease, (vii) all indebtedness referred to in clauses (i)
through (vi) above secured by (or for which the holder of such Indebtedness has
an existing right, contingent or otherwise, to be secured by) any mortgage,
lien, pledge, charge, security interest or other encumbrance upon or in any
property or assets (including accounts and contract rights) owned by any Person,
even though the Person that owns such assets or property has not assumed or
become liable for the payment of such indebtedness, and (viii) all Contingent
Obligations in respect of indebtedness or obligations of others of the kinds
referred to in clauses (i) through (vii) above. 

          (n)
“Minimum Conversion Price” means USD $0.15, subject to adjustment as
provided in Section 6 hereof. 

          (o)
“Options” means any rights, warrants or options to subscribe for or
purchase shares of Common Stock or Convertible Securities. 

          (p)
“Parent Entity” of a Person means an entity that, directly or indirectly,
controls the applicable Person and whose common stock or equivalent equity
security is quoted or listed on an Eligible Market, or, if there is more than
one such Person or Parent Entity, the Person or Parent Entity with the largest
public market capitalization as of the date of consummation of the Fundamental
Transaction. 

          (q)
“Permitted Indebtedness” means (A) unsecured Indebtedness incurred by the
Company that is made expressly subordinate in right of payment to the Indebtedness evidenced by this Note, as reflected in a written
agreement acceptable to the Holder and approved by the Holder in advance in
writing, and which Indebtedness does not provide at any time for (1) the
payment, prepayment, repayment, repurchase or defeasance, directly or
indirectly, of any principal or premium, if any, thereon until ninety-one (91)
days after the Maturity Date or later and (2) total interest and fees at a rate
in excess of the Interest Rate hereunder, (B) the obligations of the Company or
its Subsidiaries under any lease of real or personal property by such Person as
lessee which is required under GAAP to be capitalized on such Person's balance
sheet, (C) the Senior Debt, (D) Indebtedness permitted by clause (iv) of the
definition of “Permitted Lien”, and (E) additional indebtedness up to
$7,000,000, which may be subordinate or pari passu with these Notes. 

-27- 

          (r)
“Permitted Liens” means (i) any Lien for taxes not yet due or delinquent
or being contested in good faith by appropriate proceedings for which adequate
reserves have been established in accordance with GAAP, (ii) any statutory Lien
arising in the ordinary course of business by operation of law with respect to a
liability that is not yet due or delinquent, (iii) any Lien created by operation
of law, such as materialmen's liens, mechanics' liens and other similar liens,
arising in the ordinary course of business with respect to a liability that is
not yet due or delinquent or that are being contested in good faith by
appropriate proceedings, (iv) Liens securing the purchase price of assets
purchased or leased by the Company or Subsidiaries in the ordinary course of
business; provided that (A) such Liens shall not extend to or cover any other
property of the Company or its Subsidiaries, (B) the value of any such Lien
shall not, individually, exceed $50,000 and (C) the value of all Liens incurred
under this subsection (iv) while this Note is outstanding shall not exceed, in
the aggregate, $500,000, (v) Liens securing the Company's obligations under the
Notes, and (vi) any Lien arising with respect to Permitted Indebtedness incurred
pursuant to provision 28(q)(E). 

          (s)
“Person” means an individual, a limited liability company, a partnership,
a joint venture, a corporation, a trust, an unincorporated organization, any
other entity and a government or any department or agency thereof.

          (t)
“Principal Market” means the Canadian Securities Exchange (CNSX Market
Inc.) 

          (u)
“Redemption Notices” means, collectively, the Event of Default Redemption
Notices, Change of Control Redemption Notices, and the Optional Redemption
Notices and, each of the foregoing, individually, a Redemption Notice. 

          (v)
“Required Holders” means the holders of Notes representing more than 50%
of the aggregate principal amount of the Notes then outstanding.

          (w)
“SEC” means the United States Securities and Exchange Commission. 

          (x)
“Securities Purchase Agreement” means the Securities Purchase Agreement
dated as of the Subscription Date by and among the Company and the initial
holders of the Notes pursuant to which the Company issued the Notes. 

-28- 

          (y)
“Springing Lien” and “Springing Lien Date” have the meaning set
forth in the Securities Purchase Agreement.

          (z)
“Subscription Date” means October 22, 2018. 

          (aa)
“Successor Entity” means the Person, which may be the Company, formed by,
resulting from or surviving any Fundamental Transaction or the Person with which
such Fundamental Transaction shall have been made, provided that if such Person
is not a publicly traded entity whose common stock or equivalent equity security
is quoted or listed for trading on an Eligible Market, Successor Entity shall
mean such Person's Parent Entity. 

          (bb)
“Trading Day” means any day on which trading the Common Stock is reported
on the Principal Market, or, if the Principal Market is not the principal
trading market for the Common Stock, then on the Eligible Market that is the
principal securities exchange or securities market on which the Common Stock is
then traded; provided that “Trading Day” shall not include any day on which the
Common Stock is scheduled to trade on such exchange or market for less than 4.5
hours or any day that the Common Stock is suspended from trading during the
final hour of trading on such exchange or market (or if such exchange or market
does not designate in advance the closing time of trading on such exchange or
market, then during the hour ending at 4:00:00 p.m., New York Time). 

          (cc)
“Weighted Average Price” means, for any security as of any date, the
dollar volume-weighted average price for such security on the Principal Market
during the period beginning at 9:30:01 a.m., New York Time (or such other time
as the Principal Market publicly announces is the official open of trading), and
ending at 4:00:00 p.m., New York Time (or such other time as the Principal
Market publicly announces is the official close of trading) as reported by
Bloomberg or, if the foregoing does not apply, the dollar volume-weighted
average price of such security in the Eligible Market on which the Common Stock
is principally traded or the over-the-counter market on the electronic bulletin
board for such security during the period beginning at 9:30:01 a.m., New York
Time (or such other time as such market publicly announces is the official open
of trading), and ending at 4:00:00 p.m., New York Time (or such other time as
such market publicly announces is the official close of trading) as reported by
Bloomberg, or, if no dollar volume-weighted average price is reported for such
security by Bloomberg for such hours, the average of the highest closing bid
price and the lowest closing ask price of any of the market makers for such
security as reported in the “pink sheets” by Pink Sheets LLC (formerly the
National Quotation Bureau, Inc.). If the Weighted Average Price cannot be
calculated for a security on a particular date on any of the foregoing bases,
the Weighted Average Price of such security on such date shall be the fair
market value as mutually determined by the Company and the Holder. If the
Company and the Holder are unable to agree upon the fair market value of such
security, then such dispute shall be resolved pursuant to Section 23. All such
determinations shall be appropriately adjusted for any stock dividend, stock
split, stock combination or other similar transaction during the applicable
calculation period. 

-29- 

[Signature Page Follows] 

 

 

 

-30- 

IN WITNESS WHEREOF, the Company has
caused this Note to be duly executed as of the Issuance Date set out above. 

	 	SECURITY DEVICES INTERNATIONAL INC. 
	 	  
	 	  
	 	By:
  
	 	           Name:
    
	 	           Title:
    

[Signature Page to Secured Convertible Note] 

EXHIBIT I 

SECURITY DEVICES
INTERNATIONAL INC. 
CONVERSION NOTICE 

Reference is made to the Secured Convertible Note (the
“Note”) issued to the undersigned by Security Devices International Inc.
(the “Company”). In accordance with and pursuant to the Note, the
undersigned hereby elects to convert the Conversion Amount (as defined in the
Note) of the Note indicated below into shares of Common Stock par value $.001
per share (the “Common Stock”) of the Company, as of the date specified
below. 

	 	Date of Conversion: 	 	 
	 	Aggregate Conversion Amount to be converted:	 	 
	 	 	 	 
	Please confirm the following information: 	 	 
	 	 	 
	 	Conversion Price: 	 	 
	 	Number of shares of Common Stock to be issued:
    	 	 

Please issue the Common Stock into which the Note is being
converted in the following name and to the following address: 

	 	Issue to: 	 	 
	 		 	 
		 	 	 
		 	 	 
	 	Facsimile Number: 	 	 
	 	Authorization: 	 	 
	 	 By: 	 	 
	 	 Title: 	 	 
	Dated: 	 	 	 
	 	 
    	 	 
	 	Account Number:  	 	 
	 	 (if electronic book entry
    transfer) 	 	 
	 	Transaction Code Number: 	 	 
	 	 (if electronic book entry transfer) 	 	 

	                   
	  
	  
	                   
	                   
	
	                                                     
	

	
	
	  
	
	

ACKNOWLEDGMENT 

                     
The Company hereby acknowledges this Conversion Notice and hereby directs
[Insert name of transfer agent] to issue the above indicated number of shares of
Common Stock in accordance with the Transfer Agent Instructions dated

_________ __, 2018 from the Company and acknowledged and agreed to by
[Insert name of transfer agent]. 

	 	SECURITY DEVICES INTERNATIONAL INC. 
	 	  
	 	  
	 	By:
  
	 	           Name:
    
	 	           Title:

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