Document:

Exhibit 10.117

 

TRANSITION
SERVICES AGREEMENT

 

This Transition Services
Agreement (“Agreement”) is made this 10th day of April 2006 (“Effective
Date”), between Prosoft Learning Corporation, a Nevada corporation (the “Company”),
and Benjamin M. Fink (the “Employee”).

 

WHEREAS:

 

A.                            The
Company and Employee entered into an employment agreement dated the 27th
of October 2005 (the “Prior Agreement”).

 

B.                            This
Agreement amends and restates the Prior Agreement, which as of the Effective
Date and subject to Section 12 of this Agreement, shall be null and void
and of no effect.

 

C.                            The
Company has entered into an Acquisition and Reorganization Agreement dated the
11th  day of April 2006 (“Acquisition
Agreement”), by and between the Company, ComputerPREP, Inc. and VCampus
Corporation (“VCampus”), whereby VCampus would acquire, by itself or through
one of its affiliates, all of the newly issued and outstanding capital stock of
the Company on or after the Closing Date, as defined in the Acquisition
Agreement (“Reorganized Prosoft”). Terms not otherwise defined herein shall be
as defined in the Acquisition Agreement.

 

D.                            NOW,
THEREFORE, in consideration of the promises and mutual covenants herein set
forth, the parties do hereby agree and promise as follows:

 

1.             Services
and Compensation.

 

1.1          Prior to
the Closing Date, Employee shall remain employed by the Company and entitled to
continue to receive whatever base salary he was receiving from the Company
immediately prior to the date hereof. He shall continue to provide substantially
the same services to the Company as under the Prior Agreement, as well as to
assist with the completion of the transactions contemplated by the Acquisition
Agreement.

 

1.2          Upon the Effective
Date (as defined under the Acquisition Agreement), the Company shall have an
obligation to make a change of control payment to Employee of $200,000, which
obligation shall only become payable to Employee by Reorganized Prosoft
promptly following the Closing of the transactions contemplated by the
Acquisition Agreement and provided that VCampus has received a credit against
the Purchase Price of $209,080 in exchange for the assumption by Reorganized
Prosoft of the obligations hereunder. Neither the Company nor Reorganized
Prosoft or VCampus shall thereafter have any further obligations under this
Agreement. Employee’s employment by
the Company and/or Reorganized Prosoft shall terminate effective immediately
upon the Closing Date.

 

1

 

1.3          To the
extent required by law, the Company and/or Reorganized Prosoft shall withhold
from any payments due Employee under this Agreement any applicable Federal,
state or local taxes and such other deductions as are prescribed by law or
Company policy.

 

2.             Proprietary
Information.

 

2.1          Employee
understands that the Company possesses and will continue to possess information
that has been created, discovered, developed or otherwise become known to the
Company (including, without limitation, information created, discovered,
developed or made known by Employee during the period of or arising out of his
employment by the Company, whether prior to or after the date hereof, including
under the Prior Agreement) or in which property rights have been assigned or
otherwise conveyed to the Company, which information has commercial value in
the business in which the Company is engaged. All such information is
hereinafter called “Proprietary Information.” 
By way of illustration, but not limitation, Proprietary Information
includes processes, formulas, codes, data, programs, know-how, improvements,
discoveries, developments, designs, inventions, techniques, marketing plans,
strategies, forecasts, new products, unpublished financial statements, budgets,
projections, licenses, prices, costs, contracts and customer and supplier
lists.

 

2.2          In
consideration of the compensation received by the Employee from the Company and
the covenants contained in this Agreement, Employee agrees as follows:

 

2.2.1       All Proprietary Information
shall be the sole property of the Company and its assigns, and the Company and
its assigns shall be the sole owner of all patents, copyrights, and other
rights in connection therewith. Employee hereby assigns to the Company rights
he may have or acquire in such Proprietary Information. At all times, both
during his employment by the Company and after his termination, Employee will
keep in strictest confidence and trust all Proprietary Information and will not
use or disclose any Proprietary Information without the written consent of the
Company, except as may be necessary in the ordinary course of performing
his duties under this Agreement.

 

2.2.2       All documents, records,
equipment and other physical property, whether or not pertaining to Proprietary
Information, furnished to Employee by the Company or produced by Employee or
others in connection with Employee’s employment with the Company shall be and
remain the sole property of the Company. In the event of the termination of his
employment by him or the Company for any reason, Employee will deliver to the
Company all documents, notes, drawings, specifications, programs, data,
customer lists and other materials of any nature pertaining to his work with
the Company and Employee will not take with him or use any of the foregoing,
any reproduction of any of the foregoing, or any Proprietary Information that
is embodied in a tangible medium of expression.

 

2.2.3       Employee recognizes that
the Company is engaged in a continuous program of development and marketing
respecting its present and future

 

2

 

business.
Employee understands that as part of his employment by the Company he has
been expected to make new contributions of value to the Company and that his
employment has created a relationship of confidence and trust between him and
the Company with respect to certain information applicable to the business of
the Company or applicable to the business of any customer of the Company, which
has been or may be made known to Employee by the Company or by any
customer of the Company or which may have been or may be learned by
Employee during the period of his employment by the Company.

 

3.             Covenant
Not to Compete.

 

3.1          In
consideration for the payments to be made under this Agreement, Employee shall,
for a period of one year from the Closing Date, refrain from, either alone or
in conjunction with any other person, or directly or indirectly through its
present or future affiliates:

 

(i) employing, engaging or seeking to employ or
engage any person who within the prior twenty-four (24) months had been an
officer or employee of the Company, unless in a venture not in direct
competition with the Company;

 

(ii) causing or attempting to cause (A) any
client, customer or supplier of the Company to terminate or materially reduce
its business with the Company, or (B) any officer, employee or consultant
of the Company to resign or sever a relationship with the Company;

 

(iii) disclosing (unless compelled by judicial or
administrative process) or using any confidential or secret information
relating to the Company or any of their respective clients, customers or
suppliers; or

 

(iv)          participating
or engaging in (other than through the ownership of five percent (5%) or less
of any class of securities registered under the Securities Exchange Act of
1934, as amended), or otherwise lending assistance (financial or otherwise) to
any person participating or engaged in, any of the lines of business in which
the Company is participating or engaged on the date of termination in any
jurisdiction in which the Company participates or engages in such line of
business on the date of termination.

 

3.2          The parties
hereto recognize that the laws and public policies of the various states of the
United States may differ as to the validity and enforceability of
covenants similar to those set forth in this Section. It is the intention of
the parties that the provisions of this Section be enforced to the fullest
extent permissible under the laws and policies of each jurisdiction in which
enforcement may be sought, and that the unenforceability (or the
modification to conform to such laws or policies) of any provisions of
this Section shall not render unenforceable, or impair, the remainder of
the provisions of this Section. Accordingly, if any provision of this Section shall
be determined to be invalid or unenforceable, such invalidity or
unenforceability shall be deemed to apply only with respect to the operation of
such provision in the particular

 

3

 

jurisdiction in which such determination is made and
not with respect to any other provision or jurisdiction.

 

3.3          The parties
hereto acknowledge and agree that any remedy at law for any breach of the
provisions of this Section would be inadequate, and Employee hereby
consents to the granting by any court of an injunction or other equitable
relief, without the necessity of actual monetary loss being proved, in order
that the breach or threatened breach of such provisions may be effectively
restrained.

 

3.4          The Company
and the Employee acknowledge that the foregoing restrictive covenants in this Section 3
are essential elements of this Agreement and that, but for the agreement of the
Employee to comply with those covenants, the Company would not have agreed to
enter into this Agreement. The covenants by the Employee shall be construed as
agreements independent of any other provision in this Agreement.

 

3.5          The Company
and the Employee intend that the covenants contained in this Section 3
shall be construed as a series of separate covenants, one for each county
of the State of Arizona and one for each State of the United States other than
Arizona.

 

3.6          The Company
and the Employee understand and agree that, if any portion of the restrictive
covenants set forth in this Section 3 is held to be unreasonable,
arbitrary, or against public policy, then that portion of those covenants shall
be considered divisible as to time and geographical area. The Company and the
Employee agree that, if any court of competent jurisdiction determines that the
specified time period or the specified geographical area of application in any
covenant is unreasonable, arbitrary, or against public policy, then a lesser
time period, geographical area, or both, that is determined to be reasonable,
nonarbitrary, and not against public policy may be enforced against
Employee. The Company and the Employee agree and acknowledge that they are
familiar with the present and proposed operations of the Company and believe
that the restrictive covenants set forth in this Section 3 are reasonable
with respect to their subject matter, duration, and geographical application.

 

3.7          The parties
acknowledge that the status of the Employee in this business and industry is
unique and the success of the Company in said business, and in the sale of the
business as contemplated by the Acquisition Agreement, is materially and
substantially dependent upon the continued employment of the Employee, and in
the event the employment of the Employee is terminated for any reason, such
business of the Company will be substantially and irrevocably damaged. In view
thereof, the parties acknowledge that monetary damages alone will not fully
compensate the Company in the event the Employee fails or refuses to comply
with the terms of this Section 3 above when applicable, and agree that the
Company, in addition to all other remedies provided in law and in equity, shall
have the remedy of injunctive relief and specific performance to enforce the
terms of said Section.

 

4

 

4.             Arbitration.
Except as otherwise provide herein, any controversies or claims arising out of,
or relating to this Agreement or the breach thereof, shall be settled by
arbitration in Phoenix, Arizona in accordance with the rules of, but not
subject to the jurisdiction of, the American Arbitration Association, which
decision shall be final and binding on the parties, and judgment upon the award
rendered may be entered in any court having jurisdiction thereof. For
these purposes the arbitrator shall be an individual who has demonstrated that
such individual is familiar with and has experience in the legal issues
involving employer-employee relationships and has had no prior prejudicial
contacts with either party. In addition to all other remedies provided in law
or in equity, the arbitrator is hereby authorized to assess costs and attorneys’
fees against either party if the arbitrator finds, based on all the facts and
circumstances, that the conduct of or the claims made by such party were
unreasonable or substantially without merit.

 

5.             Notice.
All notices, requests and other communications hereunder must be in writing and
will be deemed to have been duly given only if delivered personally or by
facsimile transmission or mailed (first class postage prepaid) to the
parties at the following addresses or facsimile numbers:

 

	
  If to Employee:

  	
  Benjamin M. Fink

  
	
   

  	
  410 North 44th
  Street

  
	
   

  	
  Phoenix, Arizona
  85008

  
	
   

  	
  Telephone: (602)
  794-4199

  
	
   

  	
   

  
	
  If to the
  Company:

  	
  Prosoft Learning
  Corporation

  
	
   

  	
  410 North 44th
  Street

  
	
   

  	
  Phoenix, AZ
  85008

  
	
   

  	
  Facsimile No:
  (602) 794-4198

  
	
   

  	
  Attn: Board of
  Directors

  

 

All such notices,
requests and other communications will (i) if delivered personally to the
address as provided in this Section, be deemed given upon delivery, (ii) if
delivered by facsimile transmission to the facsimile number as provided in this
Section, be deemed given upon receipt, and (iii) if delivered by mail in
the manner described above to the address as provided in this Section, be
deemed given upon receipt (in each case regardless of whether such notice,
request or other communication is received by any other person to whom a copy
of such notice, request or other communication is to be delivered pursuant to
this Section). Any party from time to time may change its address,
facsimile number or other information for the purpose of notices to that party
by giving notice specifying such change to the other party hereto.

 

6.             Invalid
Provision. The invalidity or unenforceability of any particular provision
of this Agreement in any jurisdiction shall not affect the other provisions
hereof or the validity of that particular provision in any other jurisdiction,
and the Agreement shall be construed in all respects as though such invalid or
unenforceable provisions were omitted only in the jurisdiction in which the
case is held to be invalid or unenforceable.

 

5

 

7.             Interpretation.
This Agreement shall be interpreted in accordance with the laws of the State of
Arizona.

 

8.             Successors.
This Agreement shall be binding upon and shall inure to the benefit of the
parties hereto and their respective successors, assigns, heirs, and legal
representatives, including but not limited to any person, firm, corporation or
other business entity which at any time, by merger, purchase or otherwise,
acquires all or substantially all of the assets, equity or business of the
Company. The duties and covenants of Employee under this Agreement, being
personal, may not be delegated.

 

9.             Entire
Agreement; Modification. This Agreement constitutes the entire agreement
between the parties, and may be changed only by an agreement in writing
signed by the parties.

 

10.          Headings.
Sections and other headings contained in this Agreement are for reference
purposes only and shall not affect in any way the meaning or interpretation of
this Agreement.

 

11.          Counterparts.
This Agreement may be executed in two or more counterparts, each of which
shall be deemed an original but all of which together shall constitute one and
the same instrument. Signatures may be exchanged by telecopy, with
original signatures to follow. Each of the parties hereto agrees that it will
be bound by its own telecopied signature and that it accepts the telecopied
signatures of the other parties to this Agreement. The original signature pages shall
be forwarded to the Company or its counsel and the Company or its counsel will
provide all of the parties hereto with a copy of the entire Agreement.

 

12.          Reinstatement
of the Prior Agreement. In the event the Acquisition Agreement is
terminated without a closing of the transactions contemplated thereunder, this
Agreement shall immediately terminate and the parties shall thereafter be
subject to the terms of the Prior Agreement.

 

IN WITNESS WHEREOF, this
Agreement has been duly executed and delivered by the duly authorized officer
of each party hereto as of the date first above written.

 

	
   

  	
  “COMPANY”

  
	
   

  	
   

  
	
   

  	
  Prosoft Learning
  Corporation, a Nevada

  corporation

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ William
  Fuller

  	
   

  
	
   

  	
   

  	
  Name:

  	
  William Fuller

  	
   

  
	
   

  	
   

  	
  Title: Director

  
	
   

  	
   

  	
   

  
	
   

  	
  “EMPLOYEE”

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  /s/ Benjamin M.
  Fink

  	
   

  
	
   

  	
  Benjamin M. Fink

  
							

 

6Exhibit 4.1

 

EXECUTION COPY

 

Aon
FINANCE N.S. 1, ULC,

Issuer,

 

 

and

 

 

Aon
CORPORATION,

Guarantor

and

COMPUTERSHARE TRUST COMPANY OF CANADA,

Trustee

INDENTURE

Dated as of April 12, 2006

Senior Unsecured Debentures

 

 

TABLE OF CONTENTS

 

	
   

  	
   

  	
  Page

  
	
  ARTICLE ONE DEFINITIONS

  	
   

  	
  1

  
	
   

  	
   

  	
   

  
	
  SECTION
  1.01. Definitions

  	
   

  	
  1

  
	
  SECTION
  1.02. Rules of Construction

  	
   

  	
  6

  
	
  SECTION
  1.03. Per Annum Calculations

  	
   

  	
  7

  
	
   

  	
   

  	
   

  
	
  ARTICLE TWO THE DEBENTURES

  	
   

  	
  7

  
	
   

  	
   

  	
   

  
	
  SECTION
  2.01. Form and Dating

  	
   

  	
  7

  
	
  SECTION
  2.02. Restrictive Legends

  	
   

  	
  8

  
	
  SECTION
  2.03. Execution, Authentication and Denominations

  	
   

  	
  8

  
	
  SECTION
  2.04. Registrar and Paying Agent

  	
   

  	
  9

  
	
  SECTION
  2.05. Paying Agent to Hold Money in Trust

  	
   

  	
  10

  
	
  SECTION
  2.06. Transfer and Exchange

  	
   

  	
  10

  
	
  SECTION
  2.07. Book-Entry Provisions for Global Debentures

  	
   

  	
  11

  
	
  SECTION
  2.08. Special Transfer Provisions

  	
   

  	
  12

  
	
  SECTION
  2.09. Replacement Debentures

  	
   

  	
  13

  
	
  SECTION
  2.10. Outstanding Debentures

  	
   

  	
  13

  
	
  SECTION
  2.11. Temporary Debentures

  	
   

  	
  14

  
	
  SECTION
  2.12. Cancellation

  	
   

  	
  14

  
	
  SECTION
  2.13. CUSIP Numbers

  	
   

  	
  15

  
	
  SECTION 2.14.
  Issuance of Additional Debentures

  	
   

  	
  15

  
	
   

  	
   

  	
   

  
	
  ARTICLE THREE REDEMPTION OF THE DEBENTURES

  	
   

  	
  15

  
	
   

  	
   

  	
   

  
	
  SECTION
  3.01. Optional Redemption

  	
   

  	
  15

  
	
   

  	
   

  	
   

  
	
  ARTICLE FOUR COVENANTS OF THE COMPANY AND GUARANTOR

  	
   

  	
  16

  
	
   

  	
   

  	
   

  
	
  SECTION
  4.01. Payment of Debentures

  	
   

  	
  16

  
	
  SECTION
  4.02. Maintenance of Office or Agency

  	
   

  	
  17

  
	
  SECTION
  4.03. Limitation on Liens on Common Shares of Significant Subsidiaries

  	
   

  	
  17

  
	
  SECTION
  4.04. Compliance Certificates

  	
   

  	
  17

  
	
  SECTION
  4.05. Waiver of Certain Covenants

  	
   

  	
  18

  
	
  SECTION
  4.06. Existence

  	
   

  	
  18

  
	
   

  	
   

  	
   

  
	
  ARTICLE FIVE SUCCESSOR CORPORATION

  	
   

  	
  18

  
	
   

  	
   

  	
   

  
	
  SECTION
  5.01. When Company May Merge, Etc

  	
   

  	
  18

  
	
  SECTION
  5.02. Successor Substituted

  	
   

  	
  19

  

 

i

 

	
  ARTICLE SIX DEFAULT AND REMEDIES

  	
   

  	
  20

  
	
   

  	
   

  	
   

  
	
  SECTION
  6.01. Events of Default

  	
   

  	
  20

  
	
  SECTION
  6.02. Acceleration

  	
   

  	
  21

  
	
  SECTION
  6.03. Other Remedies

  	
   

  	
  21

  
	
  SECTION
  6.04. Waiver of Past Defaults

  	
   

  	
  22

  
	
  SECTION
  6.05. Control by Majority

  	
   

  	
  22

  
	
  SECTION
  6.06. Payment of Securities on Default; Suit Therefor

  	
   

  	
  22

  
	
  SECTION
  6.07. Limitation on Suits

  	
   

  	
  23

  
	
  SECTION
  6.08. Rights of Holders to Receive Payment

  	
   

  	
  23

  
	
  SECTION
  6.09. Collection Suit by Trustee

  	
   

  	
  23

  
	
  SECTION
  6.10. Trustee May File Proofs of Claim

  	
   

  	
  24

  
	
  SECTION
  6.11. Priorities

  	
   

  	
  24

  
	
  SECTION
  6.12. Restoration of Rights and Remedies

  	
   

  	
  25

  
	
  SECTION
  6.13. Rights and Remedies Cumulative

  	
   

  	
  25

  
	
  SECTION
  6.14. Delay or Omission Not Waiver

  	
   

  	
  25

  
	
   

  	
   

  	
   

  
	
  ARTICLE SEVEN TRUSTEE

  	
   

  	
  25

  
	
   

  	
   

  	
   

  
	
  SECTION
  7.01. General

  	
   

  	
  25

  
	
  SECTION
  7.02. Certain Rights of Trustee

  	
   

  	
  26

  
	
  SECTION
  7.03. Individual Rights of Trustee

  	
   

  	
  27

  
	
  SECTION
  7.04. Trustee’s Disclaimer

  	
   

  	
  27

  
	
  SECTION
  7.05. Notice of Default

  	
   

  	
  27

  
	
  SECTION
  7.06. Compensation and Indemnity

  	
   

  	
  28

  
	
  SECTION
  7.07. Replacement of Trustee

  	
   

  	
  29

  
	
  SECTION
  7.08. Successor Trustee by Merger, Etc.

  	
   

  	
  30

  
	
  SECTION
  7.09. Eligibility

  	
   

  	
  30

  
	
  SECTION
  7.10. Money Held in Trust

  	
   

  	
  30

  
	
  SECTION
  7.11. Initial Appointment of Trustee

  	
   

  	
  30

  
	
   

  	
   

  	
   

  
	
  ARTICLE EIGHT DISCHARGE OF INDENTURE

  	
   

  	
  31

  
	
   

  	
   

  	
   

  
	
  SECTION
  8.01. Termination of Company’s Obligations

  	
   

  	
  31

  
	
  SECTION
  8.02. Defeasance and Discharge of Indenture

  	
   

  	
  32

  
	
  SECTION
  8.03. Defeasance of Certain Obligations

  	
   

  	
  33

  
	
  SECTION
  8.04. Application of Trust Money

  	
   

  	
  34

  
	
  SECTION
  8.05. Repayment to Company

  	
   

  	
  34

  
	
  SECTION
  8.06. Reinstatement

  	
   

  	
  35

  
	
   

  	
   

  	
   

  
	
  ARTICLE NINE AMENDMENTS, SUPPLEMENTS AND WAIVERS

  	
   

  	
  35

  
	
   

  	
   

  	
   

  
	
  SECTION
  9.01. Without Consent of Holders

  	
   

  	
  35

  
	
  SECTION
  9.02. With Consent of Holders

  	
   

  	
  36

  
	
  SECTION
  9.03. Action by Holders; Record Dates

  	
   

  	
  37

  

 

ii

 

	
  SECTION
  9.04. Revocation and Effect of Consent

  	
   

  	
  38

  
	
  SECTION
  9.05. Notation on or Exchange of Debentures

  	
   

  	
  38

  
	
  SECTION
  9.06. Trustee to Sign Amendments, Etc.

  	
   

  	
  38

  
	
   

  	
   

  	
   

  
	
  ARTICLE TEN MEETINGS OF THE HOLDERS

  	
   

  	
  39

  
	
   

  	
   

  	
   

  
	
  SECTION
  10.01. Purposes of Meetings

  	
   

  	
  39

  
	
  SECTION
  10.02. Call of Meetings by Trustee

  	
   

  	
  39

  
	
  SECTION
  10.03. Call of Meetings by Company or Holders

  	
   

  	
  40

  
	
  SECTION
  10.04. Qualification for Voting

  	
   

  	
  40

  
	
  SECTION
  10.05. Regulations

  	
   

  	
  40

  
	
  SECTION
  10.06. Voting

  	
   

  	
  41

  
	
   

  	
   

  	
   

  
	
  ARTICLE ELEVEN GUARANTEE

  	
   

  	
  41

  
	
   

  	
   

  	
   

  
	
  SECTION
  11.01. Guarantee

  	
   

  	
  41

  
	
   

  	
   

  	
   

  
	
  ARTICLE TWELVE MISCELLANEOUS

  	
   

  	
  42

  
	
   

  	
   

  	
   

  
	
  SECTION
  12.01. Notices

  	
   

  	
  42

  
	
  SECTION
  12.02. Certificate and Opinion as to Conditions Precedent

  	
   

  	
  43

  
	
  SECTION
  12.03. Statements Required in Certificate or Opinion

  	
   

  	
  44

  
	
  SECTION
  12.04. Rules by Trustee, Paying Agent or Registrar

  	
   

  	
  44

  
	
  SECTION
  12.05. Payment Date Other Than a Business Day

  	
   

  	
  44

  
	
  SECTION
  12.06. Governing Law

  	
   

  	
  44

  
	
  SECTION
  12.07. No Adverse Interpretation of Other Agreements

  	
   

  	
  45

  
	
  SECTION
  12.08. No Recourse Against Others

  	
   

  	
  45

  
	
  SECTION
  12.09. Successors

  	
   

  	
  45

  
	
  SECTION
  12.10. Duplicate Originals

  	
   

  	
  45

  
	
  SECTION
  12.11. Separability

  	
   

  	
  45

  
	
  SECTION
  12.12. Table of Contents, Headings, Etc.

  	
   

  	
  45

  
	
  SECTION
  12.13. Counterparts

  	
   

  	
  46

  
	
   

  	
   

  	
   

  
	
  EXHIBIT A

  	
  Form of Debenture

  	
  A-1

  
	
   

  	
   

  	
   

  
	
  EXHIBIT B

  	
  Form of Guarantee

  	
  B-1

  
				

 

iii

 

THIS
INDENTURE, dated as of April 12, 2006, among Aon FINANCE N.S. 1, ULC, an
unlimited company organized under the laws of the Province of Nova Scotia,
Canada (the “Company”), Aon CORPORATION, a Delaware corporation (the “Guarantor”),
and COMPUTERSHARE TRUST COMPANY OF CANADA, a trust company organized and
existing pursuant to the laws of Canada, as trustee (the “Trustee”).

 

RECITALS

 

The
Company has duly authorized the execution and delivery of this Indenture to
provide for the issuance from time to time of the Company’s Senior Unsecured
Debentures (the “Debentures”) issuable as provided in this Indenture. The
Guarantor has duly authorized the execution and delivery of this Indenture to
provide for the guarantee (the “Guarantee”) of the Debentures. All
things necessary have been taken:  (i) to
make this Indenture a valid agreement of the Company and the Guarantor, in
accordance with its terms, (ii) to make the Debentures, when executed by the
Company and authenticated and delivered by the Trustee hereunder and duly
issued by the Company, valid obligations of the Company as hereinafter provided
and (iii) to make the Guarantee, when executed and delivered by the Guarantor,
a valid obligation of the Guarantor as hereinafter provided.

 

NOW, THEREFORE,
THIS INDENTURE WITNESSETH

 

For
and in consideration of the premises and the purchase of the Debentures by the
Holders thereof, it is mutually covenanted and agreed, for the equal and
proportionate benefit of all Holders, as follows.

 

ARTICLE ONE

DEFINITIONS

 

SECTION 1.01. Definitions.

 

“Administrative
Agent” means Computershare Trust Company of Canada, appointed pursuant to
the Administrative Agreement dated as of April 10, 2006, between the Company
and Computershare Trust Company of Canada.

 

“Affiliate”
has the meaning set forth in the Canada
Business Corporations Act.

 

“Agent”
means any Registrar, co-Registrar, Paying Agent or authenticating agent.

 

“Agent
Members” has the meaning provided in Section 2.07.

 

“Authorized
Newspaper”, with respect to any jurisdiction, means a newspaper of general
circulation in such jurisdiction. If it shall be impractical in the opinion of
the Trustee to make any publication of any notice required hereby in an
Authorized Newspaper, any publication or

 

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other notice in lieu thereof which is made or given with the approval
of the Trustee shall constitute a sufficient publication of such notice.

 

“Board
of Directors” means the board of directors of the Company or the Guarantor,
as applicable, or any committee of such board of directors duly authorized to
act under this Indenture.

 

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

 

 “Book-Entry System” means the record
entry securities transfer and pledge system which
is administered by the Depository in accordance with the operating rules and
procedures of the securities settlement service of the Depository for
book-entry only securities in force from time to time or any successor system
thereof.

 

“Business
Day” means any day which is not a Saturday, a Sunday or a statutory, bank
or civic holiday in the City of Toronto.

 

“Canada
Yield” has the meaning provided in Section 3.01.

 

“Canada
Yield Price” has the meaning provided in Section 3.01.

 

“Canadian
Dollar” or “Cdn.$” or any similar reference shall mean Canadian
dollars, except as may otherwise be provided for in this Indenture.

 

“Canadian
Government Obligations” means securities which are (i) direct obligations
of Canada, for the payment of which its full faith and credit is pledged or
(ii) obligations of a Person controlled or supervised by and acting as an
agency or instrumentality of Canada, the payment of which is unconditionally
guaranteed as a full faith and credit obligation by Canada, which, in either
case, are not callable or redeemable at the option of the issuer thereof, and
shall also include a depository receipt issued by a bank or trust company as
custodian with respect to any such Canadian Government Obligation or a specific
payment of interest on or principal of any such Canadian Government Obligation
held by such custodian for the account of the holder of a depository receipt;
provided that (except as required by law) such custodian is not authorized to
make any deduction from the amount payable to the holder of such depository
receipt from any amount received by the custodian in respect of the Canadian Government
Obligation or the specific payment of interest on or principal of the Canadian
Government Obligation evidenced by such depository receipt.

 

“Canadian
Securities Law” means the applicable securities laws of each province and
territory of Canada and the respective regulations, rules, rulings and orders
made thereunder and the applicable written policy statements issued by the
securities commission or other similar

 

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regulatory authority of each province and territory of Canada, as the
same may be modified by discretionary relief therefrom granted by such
securities commission or regulatory authority.

 

“Closing
Date” means April 12, 2006.

 

“Company”
means the party named as such in the first paragraph of this Indenture until a
successor replaces it pursuant to Article Five of this Indenture and thereafter
means the successor.

 

“Company
Order” means a written request or order signed in the name of the Company
(i) by its Chairman, its President, or a Vice President and (ii) by
its Treasurer, its Secretary or an Assistant Secretary and delivered to the
Trustee; provided, however,
that such written request or order may be signed by any two of the officers or
directors listed in clause (i) above in lieu of being signed by one of
such officers or directors listed in such clause (i) and one of the
officers listed in clause (ii) above.

 

“Corporate
Trust Office” means the office of the Trustee in the Province of Ontario at
which the corporate trust business of the Trustee shall, at any particular
time, be principally administered, which office is, at the date of original
execution of this Indenture, located at 100 University Avenue, Toronto,
Ontario, M5J 2Y1.

 

“Debentures”
means any of the securities, as defined in the first paragraph of the recitals
hereof, that are authenticated and delivered under this Indenture. For all
purposes of this Indenture, the term “Debentures” shall include the Debentures
initially issued on the Closing Date and any other Debentures issued after the
Closing Date under this Indenture. For purposes of this Indenture, all
Debentures shall vote together as one series of Debentures under this
Indenture.

 

“Default”
means an event or condition the occurrence of which is, or with the lapse of
time or giving of notice or both would be, an Event of Default.

 

“Depository”
means The Canadian Depository for Securities Limited, its nominees, and their
respective successors.

 

“Event
of Default” has the meaning provided in Section 6.01.

 

“Global
Debentures” has the meaning provided in Section 2.01.

 

“Guarantee”
means the guarantee of the Guarantor authenticated and delivered pursuant to
this Indenture and shall include the Guarantee set forth in Article Eleven of
this Indenture and all other obligations and covenants of the Guarantor
contained in this Indenture and the Debentures.

 

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“Guarantor”
means any party named as such in the first paragraph of this Indenture until a
successor replaces it pursuant to Article Five of this Indenture and thereafter
means the successor.

 

“Holder”
or “Debentureholder” means the Person in whose name a Debenture is
registered in the Security Register.

 

“Indenture”
means this Indenture as originally executed or as it may be amended or
supplemented from time to time by one or more indentures supplemental to this
Indenture entered into pursuant to the applicable provisions of this Indenture.

 

“Interest
Payment Date” means April 12 and October 12 of each year, commencing
October 12, 2006 for purposes of the Debentures issued on the Closing Date or
otherwise as set forth in any Debentures issued subsequent to the Closing Date
pursuant to the terms of this Indenture.

 

“Maturity
Date” means April 12, 2011 for purposes of the Debentures issued on the
Closing Date or otherwise as set forth in any Debentures issued subsequent to
the Closing Date pursuant to the terms of this Indenture.

 

“Officer”
means, with respect to the Company or the Guarantor, (i) the Chairman of
the Board, the Chief Executive Officer, the President, any Vice President or
the Chief Financial Officer, and (ii) the Treasurer or any Assistant
Treasurer, or the Secretary or any Assistant Secretary.

 

“Officers’
Certificate” means a certificate signed by one Officer listed in
clause (i) of the definition thereof and one Officer listed in
clause (ii) of the definition thereof or two officers listed in
clause (i) of the definition thereof, which is in form and substance
satisfactory to the Trustee.

 

“Opinion
of Counsel” means a written opinion signed by legal counsel, who may be an
employee of or counsel to the Company or the Guarantor, that meets the
requirements of Section 12.03 hereof.

 

“Paying
Agent” has the meaning provided in Section 2.04, except that, for the
purposes of Article Eight, the Paying Agent shall not be the Company, the
Guarantor or a Subsidiary of the Company or the Guarantor or an Affiliate of
any of them. The term “Paying Agent” includes the Administrative Agent and any
additional Paying Agent.

 

“Person”
means an individual, a corporation, a partnership, joint venture, a limited
liability company, an unlimited company, an association, a trust or any other
entity or organization, including a government or political subdivision or an
agency or instrumentality thereof.

 

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“Physical
Debentures” means the Debentures issued in the form of permanent
certificated Debentures in registered form.

 

“principal”
of a debt security, including the Debentures, means the principal amount due on
the Stated Maturity as shown on such debt security.

 

“Private
Placement Legend” means the legend set forth on the Debentures in the form
set forth in Section 2.02.

 

“Record
Date” in respect of the interest payable on any Interest Payment Date means
the fifteenth calendar day (whether or not a Business Day) immediately
preceding such Interest Payment Date.

 

“Redemption
Price” has the meaning provided in Section 3.01.

 

“Registrar”
has the meaning provided in Section 2.04.

 

“Responsible
Officer,” when used with respect to the Trustee, means any officer within
the corporate trust department of the Trustee, including any vice president,
any assistant vice president, any assistant treasurer, any trust officer or
assistant trust officer or any other officer of the Trustee in its corporate
trust department customarily performing functions similar to those performed by
any of the above-designated officers and also means, with respect to a
particular corporate trust matter, any other officer to whom such matter is
referred because of his or her knowledge of and familiarity with the particular
subject.

 

“Security
Register” has the meaning provided in Section 2.04.

 

“Significant
Subsidiary” means a Subsidiary of the Guarantor (which includes, for
greater certainty, a Subsidiary of the Company) which meets any of the
following conditions:

 

(a)           the
Guarantor’s and its other Subsidiaries’ investments in and advances to the
Subsidiary exceed 10 percent of the total assets of the Guarantor and its
Subsidiaries consolidated as of the end of the most recently completed fiscal
year (for a proposed business combination to be accounted for as a pooling of
interests, this condition is also met when the number of common shares
exchanged by the Guarantor exceeds 10 percent of its total common shares
outstanding at the date the combination is initiated); or

 

(b)           the
Guarantor’s and its other Subsidiaries’ proportionate share of the total assets
(after intercompany eliminations) of the Subsidiary exceeds 10 percent of the
total assets of the Guarantor and its Subsidiaries consolidated as of the end
of the most recently completed fiscal year; or

 

(c)           the
Guarantor’s and its other Subsidiaries’ equity in the income from continuing
operations before income taxes, extraordinary items and cumulative effect of a
change in accounting principle of the Subsidiary exceeds 10 percent of such
income of

 

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the Guarantor and its Subsidiaries consolidated for
the most recently completed fiscal year.

 

“Stated
Maturity” means a date specified herein or in the Debentures as the fixed
date on which the principal amount thereof or any installment of interest
thereon is due and payable.

 

“Subsidiary”
means, with respect to any Person, (i) any corporation of which at least a
majority in interest of the outstanding shares having by the terms thereof
voting power under ordinary circumstances to elect directors of such
corporation, irrespective of whether or not at the time shares of any other
class or classes of such corporation shall have or might have voting power by
reason of the happening of any contingency, is at the time, directly or
indirectly, owned or controlled by such Person, or by one or more other
corporations a majority in interest of such shares of which is similarly owned
or controlled or by such Person and one or more other corporations a majority
in interest of such shares of which is similarly owned or controlled, or (ii)
any other Person (other than a corporation) in which such Person, directly or
indirectly, at the date of determination thereof, has at least a majority
equity ownership interest.

 

“Trustee”
means the party named as such in the first paragraph of this Indenture until a
successor replaces it in accordance with the provisions of Article Seven of
this Indenture and thereafter means such successor.

 

SECTION 1.02. Rules
of Construction.

 

Except as otherwise expressly provided in or pursuant to
this Indenture, unless the context otherwise requires for all purposes of this
Indenture:

 

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

 

(ii)           an
accounting term not otherwise defined has the meaning assigned to it in
accordance with accounting principles generally accepted in the United States
in effect on the date of this Indenture;

 

(iii)          “or”
is not exclusive;

 

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

 

(v)           provisions
apply to successive events and transactions;

 

(vi)          “herein,”
“hereof” and other words of similar import refer to this Indenture as a whole
and not to any particular Article, Section or other subdivision; and

 

(vii)         all
references to Sections or Articles refer to Sections or Articles of this
Indenture unless otherwise indicated.

 

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SECTION 1.03. Per
Annum Calculations.

 

For
the purposes of the Interest Act
(Canada), whenever interest to be paid under this Indenture is to be calculated
on the basis of a year of a specified number of days, the yearly equivalent
rate of interest to which the rate determined pursuant to such calculation is
equivalent to is the rate so determined multiplied by the actual number of days
in the calendar year in which the same is to be ascertained divided by such
specified number of days.

 

ARTICLE TWO

THE DEBENTURES

 

SECTION 2.01. Form
and Dating.

 

The
Debentures, the Guarantee and the Trustee’s certificate of authentication
thereon shall be substantially in the form annexed hereto as Exhibit A or
Exhibit B, as applicable, with such appropriate insertions, omissions,
substitutions and other variations as are required or permitted by this
Indenture. The Debentures may have notations, legends or endorsements required
by law, or usage. The Company shall approve the form of the Debentures and any
notation, legend or endorsement on the Debentures. Each Debenture shall be
dated the date of its authentication.

 

The
terms and provisions contained in the form of the Debentures annexed hereto as
Exhibit A shall constitute, and are hereby expressly made, a part of this
Indenture. To the extent applicable, the Company, the Guarantor and the
Trustee, by their execution and delivery of this Indenture, expressly agree to
such terms and provisions and to be bound thereby.

 

The
Debentures will be offered and sold by the Company in reliance on exemptions
from the prospectus requirements of applicable Canadian Securities Laws, in
each case, subject to the restrictions on transfer set forth herein, and shall
be issued initially in the form of one or more permanent global Debentures in
definitive, registered form, substantially in the form and bearing the
restrictive legends set forth in Exhibit A (the “Global Debentures”),
registered in the name of the nominee of the Depository, duly executed by the
Company and authenticated by the Trustee as hereinafter provided. Subject to
the terms of this Indenture, the aggregate principal amount of the Global
Debentures may from time to time be increased or decreased by adjustments made
on the records of the Trustee, or
its nominee, in accordance with the instructions given by the Holder thereof,
as hereinafter provided.

 

The
definitive Debentures shall be typed, printed, lithographed or engraved or
produced by any combination of these methods or may be produced in any other
manner, all as determined by the Officers executing such Debentures, as
evidenced by their execution of such Debentures.

 

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SECTION 2.02. Restrictive
Legends.

 

Each
Global Debenture, shall bear the following legend on the face thereof:

 

UNLESS
THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE CANADIAN
DEPOSITORY FOR SECURITIES LIMITED (“CDS”), TO THE COMPANY OR THE TRUSTEE FOR
REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IN
RESPECT THEREOF IS REGISTERED IN THE NAME OF CDS & CO., OR IN SUCH
OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF CDS (AND ANY
PAYMENT IS MADE TO CDS & CO., OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN
AUTHORIZED REPRESENTATIVE OF CDS), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR
VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL SINCE THE REGISTERED HOLDER
HEREOF, CDS & CO., OR SUCH OTHER AUTHORIZED REPRESENTATIVE OF CDS, HAS
AN INTEREST HEREIN. THIS CERTIFICATE IS ISSUED PURSUANT TO A MASTER LETTER OF
REPRESENTATIONS OF THE COMPANY TO CDS, AS SUCH LETTER MAY BE REPLACED OR
AMENDED FROM TIME TO TIME.

 

THIS
SECURITY IS A GLOBAL DEBENTURE WITHIN THE MEANING OF THE INDENTURE AND IS
REGISTERED IN THE NAME OF CDS & CO.

 

THIS
DEBENTURE (OR ITS PREDECESSOR) WAS ORIGINALLY ISSUED IN A TRANSACTION EXEMPT
FROM REGISTRATION UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED
(THE “SECURITIES ACT”), AND THIS SECURITY MAY NOT BE OFFERED, SOLD OR OTHERWISE
TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR AN APPLICABLE EXEMPTION
THEREFROM. EACH PURCHASER OF THIS DEBENTURE IS HEREBY NOTIFIED THAT THE SELLER
OF THIS DEBENTURE MAY BE RELYING ON AN EXEMPTION FROM THE PROVISIONS OF SECTION
5 OF THE SECURITIES ACT.

 

SECTION 2.03. Execution,
Authentication and Denominations.

 

Subject
to Article Four and applicable law, the aggregate principal amount of
Debentures which may be authenticated and delivered under this Indenture is
unlimited. The Debentures shall be executed by two Officers of the Company. The
signature of these Officers on the Debentures may be by facsimile or manual
signature in the name and on behalf of the Company.

 

If an
Officer whose signature is on a Debenture no longer holds that office at the
time the Trustee authenticates the Debenture, the Debenture shall be valid
nevertheless.

 

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A
Debenture shall not be valid until the Trustee manually signs the certificate
of authentication on the Debenture. The signature shall be conclusive evidence
that the Debenture has been authenticated under this Indenture.

 

At any
time and from time to time after the execution of this Indenture, the Trustee
shall upon receipt of a Company Order authenticate for original issue
Debentures in the aggregate principal amount specified in such Company Order; provided that the Trustee shall be entitled to receive an
Officers’ Certificate and an Opinion of Counsel of the Company in connection
with such authentication of Debentures. Such Company Order shall specify the
amount of Debentures to be authenticated and the date on which the original
issue of Debentures is to be authenticated and, in case of an issuance of
Debentures pursuant to Section 2.12, shall certify that such issuance is in
compliance with Article Four.

 

The
Trustee may appoint an authenticating agent to authenticate Debentures. An
authenticating agent may authenticate Debentures whenever the Trustee may do so.
Each reference in this Indenture to authentication by the Trustee includes
authentication by such authenticating agent. An authenticating agent has the
same rights as an Agent to deal with the Company or an Affiliate of the
Company.

 

The
Debentures shall be issuable only in registered form without coupons and only
in denominations of $1,000 in principal amount and any integral multiple
thereof.

 

SECTION 2.04. Registrar
and Paying Agent.

 

The
Company shall maintain an office or agency in Toronto where Debentures may be
presented for registration of transfer or for exchange (the “Registrar”),
an office or agency in Toronto where Debentures may be presented for payment
(the “Paying Agent”) and an office or agency in Toronto where notices
and demands to or upon the Company or Guarantor in respect of the Debentures
and this Indenture may be served, which shall be in the Province of Ontario,
City of Toronto. The Company shall cause the Registrar to keep a register of
the Debentures and of their transfer and exchange (the “Security Register”).
The Security Register shall be in written form or any other form capable of
being converted into written form within a reasonable time. The Company may
have one or more co-Registrars and one or more additional Paying Agents.

 

The
Company shall enter into an appropriate agency agreement with any Agent not a
party to this Indenture. The agreement shall implement the provisions of this
Indenture that relate to such Agent. The Company shall give prompt written
notice to the Trustee of the name and address of any such Agent and any change
in the address of such Agent. If the Company fails to maintain a Registrar,
Paying Agent and/or agent for service of notices and demands, the Trustee shall
act as such Registrar, Paying Agent and/or agent for service of notices and
demands. The Company may remove any Agent upon written notice to such Agent and
the Trustee; provided that no such removal
shall become effective until (i) the acceptance of an appointment by a
successor Agent to such Agent as evidenced by an appropriate agency agreement
entered into by the Company and such successor Agent and delivered to the
Trustee

 

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or (ii) notification to the Trustee that the Trustee shall serve
as such Agent until the appointment of a successor Agent in accordance with
clause (i) of this proviso. Except in the case of a defeasance of the
Company’s obligations in accordance with Article Eight, the Company, any
Subsidiary of the Company or any Affiliate of any of them may act as Paying
Agent, Registrar or Co-Registrar, and/or agent for service of notice and
demands.

 

The
Company initially appoints the Trustee as Registrar, Paying Agent,
Administrative Agent, authenticating agent and agent for service of notice and
demands. The Trustee shall preserve in as current a form as is reasonably
practicable the most recent list available to it of the names and addresses of
Holders. If the Trustee is not the Registrar, the Company shall furnish to the
Trustee as of each Record Date and at such other times as the Trustee may
reasonably request the names and addresses of Holders as they appear in the
Security Register, including the aggregate principal amount of Debentures held
by each Holder.

 

SECTION 2.05. Paying
Agent to Hold Money in Trust.

 

Not
later than 10:00 a.m. (Toronto time) on each due date of any principal of or
interest on any Debentures, the Company shall deposit with the Paying Agent
money in immediately available funds sufficient to pay such principal and
interest so becoming due. The Company shall require each Paying Agent other
than the Trustee to agree in writing that such Paying Agent shall hold in trust
for the benefit of the Holders or the Trustee all money held by the Paying
Agent for the payment of principal of and interest on the Debentures (whether
such money has been paid to it by the Company or any other obligor on the
Debentures including the Guarantor), and such Paying Agent shall promptly
notify the Trustee of any default by the Company (or any other obligor on the
Debentures including the Guarantor) in making any such payment. The Company at any
time may require a Paying Agent to pay all money held by it to the Trustee and
account for any funds disbursed, and the Trustee may at any time during the
continuance of any payment default, upon written request to a Paying Agent,
require such Paying Agent to pay all money held by it to the Trustee and to
account for any funds disbursed. Upon doing so, the Paying Agent shall have no
further liability for the money so paid over to the Trustee. If the Company or
any Subsidiary of the Company or any Affiliate of any of them acts as Paying
Agent, it will, on or before each due date of any principal of or interest on
the Debentures, segregate and hold in a separate trust fund for the benefit of
the Holders a sum of money sufficient to pay such principal or interest so
becoming due until such sum of money shall be paid to such Holders or otherwise
disposed of as provided in this Indenture, and will promptly notify the Trustee
of its action or failure to act.

 

SECTION 2.06. Transfer
and Exchange.

 

The
Debentures are issuable only in registered form. A Holder may transfer a
Debenture only by written application to the Registrar stating the name of the
proposed transferee and otherwise complying with the terms of this Indenture
and applicable Canadian Securities Laws. No such transfer shall be effected
until, and such transferee shall succeed to the rights of a Holder only upon,
final acceptance and registration of the transfer by the Registrar in the

 

10

 

Security Register. Prior to the registration of any transfer by a
Holder as provided herein, the Company, the Trustee and any agent of the
Company shall treat the person in whose name the Debenture is registered as the
owner thereof for all purposes whether or not the Debenture shall be overdue,
and none of the Company, the Trustee or any such agent shall be affected by
notice to the contrary. Furthermore, any Holder of a Global Debenture shall, by
acceptance of such Global Debenture, agree that transfers of beneficial
interests in such Global Debenture may be effected only through a book entry
system maintained by the Holder of such Global Debenture (or its agent) and
that ownership of a beneficial interest in the Debenture shall be required to
be reflected in a book entry. When Debentures are presented to the Registrar or
a Co-Registrar with a request to register the transfer or to exchange them for
an equal principal amount of Debentures of other authorized denominations, the
Registrar shall register the transfer or make the exchange as requested if its
requirements for such transactions are met (including that such Debentures are
duly endorsed or accompanied by a written instrument of transfer in form
satisfactory to the Trustee and Registrar duly executed by the Holder thereof
or by an attorney who is authorized in writing to act on behalf of the Holder).
To permit registrations of transfers and exchanges, the Company shall execute
and the Trustee shall authenticate Debentures at the Registrar’s request. No
service charge shall be made for any registration of transfer or exchange of
the Debentures, but the Company 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 other similar governmental
charge payable upon exchanges pursuant to Section 2.10 or 9.05).

 

The
Debentures are not intended to be sold to Persons who are not Canadian
residents within the meaning of the Income
Tax Act (Canada). Any withholding taxes required under applicable
laws with respect to payments to Holders who are non-residents of Canada (as
defined in the Income Tax Act
(Canada)) shall be withheld by the Company and remitted to the applicable
taxing authority without any gross-up or additional amount paid to such
non-resident Holders.

 

SECTION 2.07. Book-Entry
Provisions for Global Debentures.

 

The
Company shall execute and the Trustee shall, in accordance with this Section
2.07, authenticate and deliver initially one or more Global Debentures, which
initially shall (i) be registered in the name of the Depository for such
Global Debentures or the nominee of such Depository, and (iii) bear
legends as set forth in Section 2.02. The Global Debentures will be held
pursuant to the Book-Entry System.

 

Participants
in the Depository (“Agent Members”) shall have no rights under this
Indenture with respect to any Global Debenture held on their behalf by the
Depository, or the Trustee, or under such Global Debenture, and the Depository
may be treated by the Company, the Trustee and any agent of the Company or the
Trustee as the absolute owner of such Global Debenture for all purposes
whatsoever. Notwithstanding the foregoing, nothing herein shall prevent the
Company, the Trustee or any agent of the Company or the Trustee, from giving
effect to any written certification, proxy or other authorization furnished by
the Depository or

 

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impair, as between the Depository and its Agent Members, the operation
of customary practices governing the exercise of the rights of a holder of any
Global Debenture.

 

(a)           Transfers
of a Global Debenture shall be limited to transfers of such Global Debenture in
whole, but not in part, to the Depository, its successors or their respective
nominees. Interests of beneficial owners in Global Debentures may be
transferred in accordance with the rules and procedures of the Depository and
the provisions of Section 2.08. In addition, Physical Debentures shall be
transferred to all beneficial owners in exchange for their beneficial interests
in the Global Debentures if (i) the Depository notifies the Company that
it is unwilling or unable to continue as Depository for the Global Debentures
and a successor depositary is not appointed by the Company within 90 days of
such notice, (ii) an Event of Default has occurred and is continuing and
the Registrar has received a request from the Depository or (iii) in
accordance with the rules and procedures of the Depository and the provisions
of Section 2.08.

 

(b)           In
connection with any transfer of a portion of the beneficial interests in a
Global Debenture to beneficial owners pursuant to paragraph (a) of this Section
2.07, the Registrar shall reflect on its books and records the date and a
decrease in the principal amount of such Global Debenture in an amount equal to
the principal amount of the beneficial interest in such Global Debenture to be
transferred, and the Company shall execute, and the Trustee shall authenticate
and deliver, one or more Physical Debentures of like tenor and amount.

 

(c)           In
connection with the transfer of the Global Debentures, in whole, to beneficial
owners pursuant to paragraph (a) of this Section 2.07, the Global Debentures
shall be deemed to be surrendered to the Trustee for cancellation, and the
Company shall execute, and the Trustee shall authenticate and deliver, to each
beneficial owner identified by the Depository in exchange for its beneficial
interest in the Global Debentures an equal aggregate principal amount of
Physical Debentures of authorized denominations.

 

(d)           Any
Physical Debenture delivered in exchange for an interest in the Global
Debentures pursuant to paragraph (a), (b) or (c) of this Section 2.07 shall,
except as otherwise provided by Section 2.11, bear the legend regarding
transfer restrictions applicable to the Physical Debenture set forth in Section
2.02.

 

(e)           The
registered Holder of a Global Debenture may grant proxies and otherwise
authorize any Person, including Agent Members and Persons that may hold
interests through Agent Members, to take any action which a Holder is entitled
to take under this Indenture or the Debentures.

 

SECTION 2.08. Special
Transfer Provisions.

 

(a)           General.
By its acceptance of any Debenture bearing a restrictive legend, each Holder of
such a Debenture acknowledges the restrictions on transfer of such Debenture
set forth in this Indenture and in such restrictive legend and agrees that it
will transfer such Debenture only as provided in this Indenture. The Registrar
shall not register a transfer of any Debenture unless such transfer complies
with the restrictions on transfer of such Debenture set forth in this

 

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Indenture. In connection with any transfer of Debentures, each Holder
agrees by its acceptance of the Debentures to furnish the Registrar or the
Company such certifications, legal opinions or other information as either of
them may reasonably require to confirm that such transfer is being made
pursuant to an exemption from, or a transaction not subject to, the
registration requirements of applicable Canadian Securities Laws; provided that the Registrar shall not be required to
determine (but may rely on a determination made by the Company with respect to)
the sufficiency of any such certifications, legal opinions or other
information.

 

(b)           Retention
by Registrar. The Registrar shall retain copies of all letters, notices and
other written communications received pursuant to Section 2.06 or this Section
2.08. The Company shall have the right to inspect and make copies of all such
letters, notices or other written communications at any reasonable time upon
the giving of reasonable written notice to the Registrar.

 

SECTION 2.09. Replacement
Debentures.

 

If a
mutilated Debenture is surrendered to the Trustee or if the Holder claims that
the Debenture has been lost, destroyed or wrongfully taken, then, in the
absence of notice to the Company or the Trustee that such Debenture has been
acquired by a bona fide purchaser, the Company
shall issue and the Trustee shall authenticate a replacement Debenture of like
tenor and principal amount and bearing a number not contemporaneously
outstanding; provided that the requirements of
this Section 2.09 are met. If required by the Trustee or the Company, an
indemnity bond must be furnished that is sufficient in the judgment of both the
Trustee and the Company to protect the Company, the Trustee or any Agent from
any loss that any of them may suffer if a Debenture is replaced. The Company may
charge such Holder for its expenses and the expenses of the Trustee in
replacing a Debenture. In case any such mutilated, lost, destroyed or
wrongfully taken Debenture has become or is about to become due and payable,
the Company in its discretion may pay such Debenture instead of issuing a new
Debenture in replacement thereof.

 

Every
replacement Debenture is an additional obligation of the Company and shall be
entitled to the benefits of this Indenture.

 

SECTION 2.10. Outstanding
Debentures.

 

Debentures
outstanding at any time are all Debentures that have been authenticated by the
Trustee except for those cancelled by it, those delivered to it for
cancellation and those described in this Section 2.10 as not outstanding.

 

If a
Debenture is replaced pursuant to Section 2.07, it ceases to be
outstanding unless and until the Trustee and the Company receive proof
satisfactory to them that the replaced Debenture is held by a bona  fide purchaser.

 

13

 

If the
Paying Agent (other than the Company or an Affiliate of the Company) holds on
the Maturity Date money sufficient to pay Debentures payable on that date, then
on and after that date such Debentures cease to be outstanding and interest on
them shall cease to accrue.

 

A
Debenture does not cease to be outstanding because the Company or one of its
Affiliates holds such Debenture, provided, however, that in determining whether the Holders of the
requisite principal amount of the outstanding Debentures have given any request,
demand, authorization, direction, notice, consent or waiver hereunder,
Debentures owned by the Company or any other obligor upon the Debentures or any
Affiliate of the Company or of such other obligor shall be disregarded and
deemed not to be outstanding, except that, in determining whether the Trustee
shall be protected in relying upon any such request, demand, authorization,
direction, notice, consent or waiver, only Debentures which a Responsible
Officer of the Trustee has actual knowledge to be so owned shall be so
disregarded. Debentures so owned which have been pledged in good faith may be
regarded as outstanding if the pledgee establishes to the satisfaction of the
Trustee the pledgee’s right so to act with respect to such Debentures and that
the pledgee is not the Company or any other obligor upon the Debentures or any
Affiliate of the Company or of such other obligor.

 

SECTION 2.11. Temporary
Debentures.

 

Until
definitive Debentures are ready for delivery, the Company may prepare and
execute and the Trustee shall authenticate temporary Debentures. Temporary
Debentures shall be substantially in the form of definitive Debentures but may
have insertions, substitutions, omissions and other variations determined to be
appropriate by the Officers executing the temporary Debentures, as evidenced by
their execution of such temporary Debentures. If temporary Debentures are
issued, the Company will cause definitive Debentures to be prepared without
unreasonable delay. After the preparation of definitive Debentures, the
temporary Debentures shall be exchangeable for definitive Debentures upon
surrender of the temporary Debentures at the office or agency of the Company
designated for such purpose pursuant to Section 4.02, without charge to the
Holder. Upon surrender for cancellation of any one or more temporary Debentures
the Company shall execute and the Trustee shall authenticate and deliver in
exchange therefor a like principal amount of definitive Debentures of
authorized denominations. Until so exchanged, the temporary Debentures shall be
entitled to the same benefits under this Indenture as definitive Debentures.

 

SECTION 2.12. Cancellation.

 

The
Company at any time shall deliver to the Trustee for cancellation any
Debentures previously authenticated and delivered hereunder which the Company
may have acquired in any manner whatsoever, and may deliver to the Trustee for
cancellation any Debentures previously authenticated hereunder which the
Company has not issued and sold. The Registrar and the Paying Agent shall
forward to the Trustee any Debentures surrendered to them for transfer,
exchange or payment. The Trustee shall cancel all Debentures surrendered for
transfer,

 

14

 

exchange, payment or cancellation and shall dispose of them in
accordance with its normal procedure.

 

SECTION 2.13. CUSIP
Numbers.

 

The
Company in issuing the Debentures shall use “CUSIP”, “CINS” or “ISIN” numbers
(if then generally in use), and the Company and the Trustee shall use CUSIP, CINS
or ISIN numbers, as the case may be, in notices of exchange as a convenience to
Holders; provided that any such notice shall
state that no representation is made as to the correctness of such numbers
either as printed on the Debentures or as contained in any notice of exchange
and that reliance may be placed only on the other identification numbers
printed on the Debentures. The Company shall promptly notify the Trustee of any
change in “CUSIP”, “CINS” or “ISIN” numbers for the Debentures.

 

SECTION 2.14. Issuance
of Additional Debentures.

 

The
Company may, subject to Article Four of this Indenture and applicable law,
issue additional Debentures under this Indenture. The Debentures issued on the
Closing Date and any additional Debentures subsequently issued shall be treated
as a single class for all purposes under this Indenture.

 

ARTICLE THREE

REDEMPTION OF THE DEBENTURES

 

SECTION 3.01. Optional
Redemption.

 

The
Debentures will be redeemable in whole at any time or in part from time to
time, at the option of the Company, at a redemption price (the “Redemption
Price”) equal to the greater of: (i) one hundred percent (100%) of the
outstanding principal amount of the Debentures being redeemed or (ii) the
Canada Yield Price calculated in respect of the Debentures being redeemed;
plus, in either case, accrued and unpaid interest on the principal amount being
redeemed to but excluding the redemption date. Notwithstanding the foregoing,
installments of interest on Debentures that are due and payable on Interest Payment
Dates falling on or prior to a redemption date will be payable on the Interest
Payment Date to the Holders as of the close of business on the relevant Record
Date. Notice of any redemption will be mailed by first class mail, postage
prepaid, at least 30 days but no more than 60 days before the redemption date
to each Holder of the Debentures to be redeemed. Unless the Company defaults in
payment of the Redemption Price and accrued and unpaid interest, on and after
the redemption date, interest will cease to accrue on the Debentures or
portions thereof called for redemption. If fewer than all of the Debenture are
to be redeemed, the Trustee shall select, not more than 60 days prior to the
redemption date, the particular Debentures or portions thereof for redemption
from the Debentures not previously called. The Debentures to be so redeemed
shall be selected by the Trustee on a pro
rata basis to the nearest multiple of $1,000 in accordance with the
principal

 

15

 

amount of the Debentures registered in the name of each Holder, or in
such other manner as the Trustee deems equitable. For this purpose, subject to
the prior approval of the Company and the Guarantor, the Trustee may make, and
from time to time vary, regulations with respect to the manner in which such
Debentures may be drawn for redemption and regulations so made shall be valid
and binding upon all Holders of such Debentures.

 

“Canada
Yield Price” means the price, calculated on the fifth Business Day
preceding the date of redemption, equal to the net present value of all
scheduled payments of interest (other than accrued and unpaid interest) and
principal on the Debentures to be redeemed, using a discount rate equal to the
sum of the Canada Yield (as defined below) and 19 basis points in the case of
the Debentures issued on the Closing Date or otherwise as set forth in any
Debentures issued subsequent to the Closing Date pursuant to the terms of this
Indenture.

 

“Canada
Yield” means, on any date, the yield to maturity on such date, compounded
semi-annually, which a non-callable Government of Canada Bond would carry if
issued, in Canadian dollars in Canada, at 100% of its principal amount on such
date with a term to maturity approximately equal to the remaining term to
maturity of the Debentures to be redeemed. The Canada Yield will be the average
of the yields determined by two major Canadian investment dealers selected by
the Company.

 

ARTICLE FOUR

COVENANTS OF THE COMPANY AND GUARANTOR

 

SECTION 4.01. Payment
of Debentures.

 

The
Company shall pay the principal of and interest on the Debentures on the dates
and in the manner provided in the Debentures and this Indenture; provided
that, notwithstanding any other provision of this Indenture but subject to
Article Six, in no event shall the aggregate principal amount required to be
repaid by the Company to the Holder of any Debenture on or before the fifth
anniversary of the date of issue of such Debenture exceed an amount equal to
25% of the aggregate original principal amount of such Debenture. An
installment of principal or interest shall be considered paid on the date due
if the Trustee or Paying Agent (other than the Company, the Guarantor, a
Subsidiary of the Company or the Guarantor, as applicable, or any Affiliate of
any of them) holds on that date money designated for and sufficient to pay the
installment. If the Company, the Guarantor or any Subsidiary of the Company or
the Guarantor or any Affiliate of any of them acts as Paying Agent, an installment
of principal or interest shall be considered paid on the due date if the entity
acting as Paying Agent complies with the last sentence of Section 2.05. As
provided in Section 6.10, upon any bankruptcy or reorganization procedure
relative to the Company or the Guarantor, the Trustee shall serve as the Paying
Agent, if any, for the Debentures.

 

16

 

SECTION 4.02. Maintenance
of Office or Agency.

 

So
long as any of the Debentures shall remain outstanding, the Company will
maintain in the Province of Ontario, City of Toronto an office or agency where
Debentures may be surrendered for registration of transfer or exchange or for
presentation for payment and where notices and demands to or upon the Company
in respect of the Debentures and this Indenture may be served. The Company will
give prompt written notice to the Trustee of the location, and any change in
the location, of such office or agency. If at any time the Company shall fail
to maintain any such required office or agency or shall fail to furnish the
Trustee with the address thereof, such presentations, surrenders, notices and
demands may be made or served at the address of the Trustee set forth in
Section 12.01.

 

The
Company may also from time to time designate one or more other offices or
agencies where the Debentures may be presented or surrendered for any or all
such purposes and may from time to time rescind such designations; provided that no such designation or rescission shall in any
manner relieve the Company of its obligation to maintain an office or agency in
the Province of Ontario, City of Toronto for such purposes. The Company shall
give prompt written notice to the Trustee of any such designation or rescission
and of any change in the location of any such other office or agency.

 

The
Company hereby initially designates the Corporate Trust Office of the Trustee
as such office of the Company in accordance with Section 2.04.

 

SECTION 4.03. Limitation
on Liens on Common Shares of Significant Subsidiaries.

 

So
long as any of the Debentures shall remain outstanding, neither the Company nor
the Guarantor will, directly or indirectly, create, issue, assume, incur or
guarantee any indebtedness for money borrowed in excess of US$50,000,000 which
is secured by a mortgage, pledge, lien, security interest or other encumbrance
of any nature on any of the present or future common shares of any Significant
Subsidiary (or any company, other than the Company or the Guarantor, having
direct or indirect control of any Significant Subsidiary), which common shares
are directly or indirectly owned by the Company or the Guarantor, unless the
Debentures (together with, if the Company or the Guarantor so determines, any
other indebtedness for money borrowed of the Company then existing or
thereafter created which is not subordinate to the Debentures) shall be secured
equally and ratably with (or, at the option of the Company or the Guarantor,
prior to) such other secured indebtedness for money borrowed so long as such
indebtedness shall be secured.

 

SECTION 4.04. Compliance
Certificates.

 

Each
of the Company and the Guarantor shall deliver to the Trustee on or before a
date not more than four months after the end of its respective fiscal year
ending after the date hereof, an Officers’ Certificate stating whether or not
the signers have knowledge of any Default or Event of Default. If any of the
Officers of the Company or Guarantor signing such certificate

 

17

 

has knowledge of such a Default or Event of Default, the Officers’
Certificate shall describe any such Default or Event of Default and the nature
thereof.

 

SECTION 4.05. Waiver
of Certain Covenants.

 

Either
the Company or the Guarantor may omit in any particular instance to comply with
any term, provision or condition set forth in Section 4.03 if before the time
for such compliance the Holders of at least a majority in aggregate principal
amount of the Debentures (which shall be calculated so as not include any
Debentures then held by the Company or any of its Affiliates) shall, by action
of such Holders, either waive such compliance in such instance or generally
waive compliance with such term, provision or condition, but no such waiver
shall extend to or affect such term, provision or condition, except to the
extent so expressly waived, and, until such waiver shall become effective, the
obligations of the Company and the Guarantor and the duties of the Trustee in
respect of any such term, provision or condition shall remain in full force and
effect.

 

SECTION 4.06. Existence.

 

Subject
to Article Five, the Guarantor will do or cause to be done all things necessary
to preserve and keep in full force and effect its existence and rights (charter
and statutory); provided that the Guarantor shall not be required to preserve
any such right if the Guarantor shall determine that the preservation thereof
is no longer desirable in the conduct of the business of the Company and that
the loss thereof is not disadvantageous in any material respect to the Holders.

 

ARTICLE FIVE

 

SUCCESSOR CORPORATION

 

SECTION 5.01. When
Company May Merge, Etc.

 

So
long as any Debentures shall be outstanding, neither the Company nor the
Guarantor, as the case may be, shall consolidate or amalgamate with or merge
into any other Person or sell, convey, transfer or lease its properties and
assets substantially as an entirety to any Person unless:

 

(a)           the
company or corporation, as the case may be, formed by such consolidation or
amalgamation, or into which the Company or the Guarantor, as the case may be,
is merged or the Person which acquires by conveyance or transfer, or which
leases, the properties and assets of the Company or the Guarantor, as the case
may be, substantially as an entirety shall be a corporation organized and
existing under the laws of the United States of America, any State thereof or
the District of Columbia, in the case of the Guarantor, or a company or
corporation, as the case may be, organized and existing under the laws of
Canada or any Province thereof, in the case of the Company, and shall expressly
assume, by an indenture supplemental hereto, executed and delivered to the
Trustee, the due and punctual payment of the principal of and interest on the

 

18

 

Debentures and the performance of every covenant of this Indenture on
the part of the Company or the Guarantor, as the case may be, to be performed
or observed;

 

(b)           immediately
after giving effect to such transaction and treating any indebtedness which
becomes an obligation of the Company or the Guarantor, as the case may be, as a
result of such transaction as having been incurred by the Company or the
Guarantor, as the case may be, at the time of such transaction, no Event of
Default, and no event which, after notice or lapse of time or both, would
become an Event of Default, shall have happened and be continuing;

 

(c)           if,
as a result of any such consolidation, amalgamation or merger or such sale,
conveyance, transfer, lease or other disposition, properties or assets of the
Company or the Guarantor, as the case may be, would become subject to a
mortgage, pledge, lien, security interest or other encumbrance of any nature
which would not be permitted by this Indenture, the Company or the Guarantor,
as the case may be, or such successor corporation or company, or such Person,
firm, company or corporation, as the case may be, shall take such steps as
shall be necessary effectively to secure the Debentures (together with, if the
Company or the Guarantor, as the case may be, so determines, any other
indebtedness for money borrowed of the Company or the Guarantor, as the case
may be, then existing or thereafter created which is not subordinate to the
Debentures) equally and ratably with (or, at the option of the Company or the
Guarantor, as the case may be, prior to) all indebtedness secured thereby; and

 

(d)           the
Company or the Guarantor, as the case may be, has delivered to the Trustee an
Officers’ Certificate and an Opinion of Counsel, each stating that such
consolidation, amalgamation, merger, sale, conveyance, transfer, lease or other
disposition and, if a supplemental indenture is required in connection with
such transaction, such supplemental indenture comply with this Article Five and
that all conditions precedent herein provided for relating to such transaction
have been complied with.

 

SECTION 5.02. Successor
Substituted.

 

Upon
any consolidation, amalgamation or merger, or any sale, conveyance, transfer,
lease or other disposition of all or substantially all of the property and
assets of the Company or the Guarantor, as applicable, in accordance with
Section 5.01 of this Indenture, the successor Person formed by such
consolidation or amalgamation or into which the Company or the Guarantor, as
applicable, is merged or to which such sale, conveyance, transfer, lease or
other disposition is made shall succeed to, and be substituted for, and may
exercise every right and power of, the Company or the Guarantor, as applicable,
under this Indenture with the same effect as if such successor Person had been
named as the Company or the Guarantor, as applicable, herein; provided that the Company or the Guarantor, as applicable,
shall not be released from its obligation to pay the principal of or interest
on the Debentures in the case of a lease of all or substantially all of its
property and assets unless any such successor has the same or better credit
rating than the published rating of the Company or Guarantor.

 

19

 

ARTICLE SIX

DEFAULT AND REMEDIES

 

SECTION 6.01. Events of Default.

 

Any of the following events shall constitute an “Event
of Default” hereunder:

 

(a)           the Company defaults in
the payment of the principal of any of the Debentures as and when the same shall
become due and payable either at maturity, by declaration or otherwise; or

 

(b)           the Company defaults in
the payment of any installment of interest on any of the Debentures as and when
the same shall become due and payable, and continuance of such default for a
period of 30 days; or

 

(c)           failure on the part of
the Company or the Guarantor duly to observe or perform any other of the
covenants or agreements on the part of the Company or the Guarantor in
this Indenture applicable to the Debentures for a period of 90 days after the
date on which written notice of such failure, specifying such failure and
requiring the Company or the Guarantor to remedy the same and stating that such
notice is a “Notice of Default” hereunder, shall have been given to the Company
or the Guarantor by the Trustee, or to the Company or the Guarantor and the
Trustee by the Holders of at least 25% in aggregate principal amount of the
Debentures at the time outstanding; or

 

(d)           a court having
jurisdiction in the premises shall enter a decree or order for relief in
respect of the Company or the Guarantor in an involuntary case under any
applicable bankruptcy, insolvency or other similar law now or hereafter in
effect, or appointing a receiver, liquidator, assignee, custodian, trustee, sequestrator
(or similar official) of the Company or the Guarantor or for any substantial part of
its property, or ordering the winding-up or liquidation of its affairs and such
decree or order shall remain unstayed and in effect for a period of 90 days; or

 

(e)           the Company or the
Guarantor shall commence a voluntary case under any applicable bankruptcy,
insolvency or other similar law now or hereafter in effect, or shall consent to
the entry of any order for relief in an involuntary case under any such law, or
shall consent to the appointment of or taking possession by a receiver,
liquidator, assignee, trustee, custodian, sequestrator (or similar official) of
the Company or the Guarantor or for any substantial part of their
respective property, or shall make any general assignment for the benefit of
creditors; or

 

(f)            the Company or the
Guarantor shall fail to make any payment when due (whether by scheduled
maturity, required prepayment, acceleration, demand, or otherwise), after
giving effect to any applicable grace period, in respect of any indebtedness
for money borrowed (other than indebtedness under this Indenture) having an
aggregate principal amount greater than US$50,000,000 or its equivalent in
Canadian Dollars.

 

20

 

SECTION 6.02. Acceleration.

 

If an Event of Default (other than an Event of Default
specified in clause (d) or (e) of Section 6.01 that occurs with
respect to the Company or the Guarantor) occurs and is continuing under this
Indenture, the Trustee or the Holders of at least 25% in aggregate principal
amount of the Debentures then outstanding, by written notice to the Company or
the Guarantor (and to the Trustee if such notice is given by the Holders), may,
and the Trustee at the request of such Holders shall, declare the principal of
and accrued and unpaid interest on all the Debentures to be immediately due and
payable, any provision of this Indenture or the Debentures to the contrary
notwithstanding. Upon a declaration of acceleration, such principal and accrued
and unpaid interest shall be immediately due and payable. In the event of a
declaration of acceleration because an Event of Default set forth in clause (c) of
Section 6.01 has occurred and is continuing, such declaration of acceleration
shall be automatically rescinded and annulled if the event of default
triggering such Event of Default pursuant to clause (c) shall be remedied
or cured by the Company or the Guarantor or waived by the Holders within 90
days after the declaration of acceleration with respect thereto. If an Event of
Default specified in clause (d) or (e) of Section 6.01 occurs
with respect to the Company or the Guarantor, the principal and accrued and
unpaid interest on the Debentures then outstanding shall ipso facto become and
be immediately due and payable without any declaration or other act on the part of
the Trustee or any Holder.

 

At any time after such declaration of acceleration,
but before a judgment or decree for the payment of the money due has been
obtained by the Trustee, the Holders of at least a majority in principal amount
of the outstanding Debentures by written notice to the Company and to the
Trustee, may waive all past Defaults and rescind and annul a declaration
of acceleration and its consequences if (a) the Company or the Guarantor
has paid or deposited with the Trustee a sum sufficient to pay (i) all
sums paid or advanced by the Trustee hereunder and the reasonable compensation,
expenses, disbursements and advances of the Trustee, its agents and counsel, (ii) all
overdue interest on all Debentures, and (iii) the principal of any
Debentures that have become due otherwise than by such declaration or
occurrence of acceleration and interest thereon at the rate prescribed therefor
by such Debentures, (b) all existing Events of Default, other than the
non-payment of the principal of and accrued and unpaid interest on the
Debentures that have become due solely by such declaration of acceleration,
have been cured or waived and (c) the rescission would not conflict with
any judgment or decree of a court of competent jurisdiction.

 

SECTION 6.03. Other Remedies.

 

If an Event of Default occurs and is continuing, the
Trustee may, and at the direction of the Holders of at least a majority in
principal amount of the outstanding Debentures shall, pursue any available
remedy by proceeding at law or in equity to collect the payment of principal of
or interest on the Debentures or to enforce the performance of any provision of
the Debentures or this Indenture.

 

21

 

The Trustee may maintain a proceeding even if it
does not possess any of the Debentures or does not produce any of them in the
proceeding.

 

SECTION 6.04. Waiver of Past Defaults.

 

Subject to Sections 6.02, 6.08 and 9.02, the Holders
of at least a majority in principal amount of the outstanding Debentures, by
notice to the Trustee, may waive an existing Default or Event of Default
and its consequences, except a Default in the payment of principal of or
interest on any Debenture as specified in clause (a) or (b) of Section 6.01
or in respect of a covenant or provision of this Indenture which cannot be
modified or amended without the consent of the Holder of each outstanding
Debenture 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 this Indenture; but no such waiver shall extend to any
subsequent or other Default or Event of Default or impair any right consequent
thereon.

 

SECTION 6.05. Control by Majority.

 

The Holders of at least a majority in aggregate
principal amount of the outstanding Debentures may direct the time, method
and place of conducting any proceeding for any remedy available to the Trustee
or exercising any trust or power conferred on the Trustee; provided
that the Trustee may refuse to follow any direction if the Trustee, being
advised by counsel, determines that the actions or proceedings so directed may not
lawfully be taken or if the Trustee in good faith by its board of directors or
executive committee or a trust committee of directors or trustees and/or
responsible officers shall determine that the actions or proceedings so
directed would involve the Trustee in personal liability; and provided  further, that
the Trustee may take any other action it deems proper that is not
inconsistent with any such direction received from Holders of Debentures.

 

SECTION 6.06. Payment of Securities on Default; Suit Therefor.

 

The Company covenants that (a) in case default
shall be made in the payment of any installment of interest on any of the
Debentures, as and when the same shall become due and payable, and such default
shall have continued for a period of 30 days, or (b) in case default shall
be made in the payment of principal of any of the Debentures, as and when the
same shall have become due and payable, whether upon maturity of the Debentures
or upon declaration or otherwise, then upon demand of the Trustee, the Company
will pay to the Trustee, for the benefit of the Holders, the whole amount that
then shall have become due and payable on all of the Debentures, for principal
or interest, if any, as the case may be, with interest upon the overdue
principal and (to the extent that payment of such interest is enforceable under
applicable law), upon overdue installments of interest, if any, at the same
rate as the rate of interest specified in the Debentures; and, in addition
thereto, such further amount as shall be sufficient to cover reasonable compensation
to the Trustee, its agents, attorneys and counsel, and all other reasonable
expenses and liabilities incurred, and all advances made, by the Trustee except
as a result of its negligence, bad faith or willful misconduct.

 

22

 

SECTION 6.07. Limitation on Suits.

 

A Holder may not institute any proceeding,
judicial or otherwise, with respect to this Indenture or the Debentures, or for
the appointment of a receiver or trustee, or for any other remedy hereunder,
unless:

 

(i)            the
Holder has previously given the Trustee written notice of a continuing Event of
Default;

 

(ii)           the
Holders of at least 25% in aggregate principal amount of outstanding Debentures
shall have made a written request to the Trustee to pursue such remedy;

 

(iii)          such
Holder or Holders offer the Trustee indemnity satisfactory to the Trustee
against any costs, liability or expense;

 

(iv)          the
Trustee does not comply with the request within 60 days after receipt of the
request and the offer of indemnity; and

 

(v)           during
such 60-day period, the Holders of a majority in aggregate principal amount of
the outstanding Debentures do not give the Trustee a direction that is
inconsistent with the request.

 

A Holder may not use this Indenture to prejudice
the rights of another Holder or to obtain a preference or priority over such
other Holder.

 

SECTION 6.08. Rights of Holders to Receive Payment.

 

Notwithstanding
any other provision of this Indenture, the right of any Holder of a Debenture
to receive payment of the principal of or interest on such Debenture or to
bring suit for the enforcement of any such payment, on or after the due date
expressed in the Debentures, shall not be impaired or affected without the
consent of such Holder.

 

SECTION 6.09. Collection Suit by Trustee.

 

If an Event of Default in payment of principal or
interest specified in clause (a) or (b) of Section 6.01 occurs
and is continuing, the Trustee may, upon receiving funding and being
indemnified upon commercially reasonable terms against all reasonable costs,
expenses and liabilities to be incurred, 
recover judgment in its own name and as trustee of an express trust
against the Company or any other obligor of the Debentures for the whole amount
of principal and accrued interest remaining unpaid, together with interest on
overdue principal, and such further amount as shall be sufficient to cover the
costs and expenses of collection, including the reasonable compensation,
expenses, disbursements and advances of the Trustee, its agents and counsel.

 

23

 

SECTION 6.10. Trustee May File Proofs of Claim.

 

The Trustee may file such proofs of claim and
other papers or documents as may be necessary or advisable in order to
have the claims of the Trustee (including any claim for the reasonable
compensation, expenses, disbursements and advances of the Trustee, its agents
and counsel, and any other amounts due the Trustee under Section 7.06) and
the Holders allowed in any judicial proceedings relative to the Company (or any
other obligor of the Debentures including the Guarantor), its creditors or its
property and shall be entitled and empowered to collect and receive any monies,
securities or other property payable or deliverable upon conversion or exchange
of the Debentures or upon any such claims and to distribute the same, and any
custodian, receiver, assignee, trustee, liquidator, sequestrator or other
similar official in any such judicial proceeding is hereby authorized by each
Holder to make such payments to the Trustee and, in the event that the Trustee
shall consent to the making of such payments directly to the Holders, to pay to
the Trustee any amount due to it for the reasonable compensation, expenses,
disbursements and advances of the Trustee, its agents and counsel, and any
other amounts due the Trustee under Section 7.06. Nothing herein contained
shall be deemed to empower the Trustee to authorize or consent to, or accept or
adopt on behalf of any Holder, any plan of reorganization, arrangement,
adjustment or composition affecting the Debentures or the rights of any Holder
thereof, or to authorize the Trustee to vote in respect of the claim of any
Holder in any such proceeding.

 

SECTION 6.11. Priorities.

 

If the Trustee collects any money pursuant to this Article Six,
it shall pay out the money in the following order:

 

First:  to the
payment of all reasonable costs and expenses applicable to such collection,
reasonable compensation to the Trustee, its agents, attorneys and counsel, and
all other reasonable expenses and liabilities incurred, and all advances made,
by the Trustee except as a result of its negligence, bad faith or willful
misconduct;

 

Second: to Holders for amounts then due and unpaid for
principal of and interest on the Debentures in respect of which or for the
benefit of which such money has been collected, with interest upon the overdue
installments of interest, to the extent lawful, at the same rate as the rate of
interest on the Debentures, ratably, without preference or priority of any
kind, according to the amounts due and payable on such Debentures for principal
and interest, respectively; and

 

Third:  to the
Company or any other obligors of the Debentures including the Guarantor, as
their interests may appear, or as a court of competent jurisdiction may direct.

 

The Trustee, upon prior written notice to the Company,
may fix a record date and payment date for any payment to Holders pursuant
to this Section 6.11.

 

24

 

SECTION 6.12. Restoration of Rights and Remedies.

 

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

 

SECTION 6.13. Rights and Remedies Cumulative.

 

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

 

SECTION 6.14. Delay or Omission Not Waiver.

 

No delay or omission of the Trustee or of any Holder
to exercise any right or remedy accruing upon any Event of Default shall impair
any such right or remedy or constitute a waiver of any such Event of Default or
an acquiescence therein. Every right and remedy given by this Article Six
or by law to the Trustee or to the Holders may be exercised from time to
time, and as often as may be deemed expedient, by the Trustee or by the
Holders, as the case may be.

 

ARTICLE SEVEN

TRUSTEE

 

SECTION 7.01. General.

 

The duties and responsibilities of the Trustee shall
be as set forth herein. Notwithstanding the foregoing, no provision of this
Indenture shall require the Trustee to expend or risk its own funds or
otherwise incur any financial liability in the performance of any of its duties
hereunder, or in the exercise of any of its rights or powers, if it shall have
reasonable grounds for believing that repayment of such funds or adequate
indemnity against such risk or liability is not reasonably assured to it. Whether
or not herein expressly so provided, every provision of this Indenture relating
to the conduct or affecting the liability of or affording protection to the
Trustee shall be subject to the provisions of this Article Seven.

 

25

 

SECTION 7.02. Certain Rights of Trustee.

 

In fulfilling its duties under this Indenture:

 

(i)            the
Trustee may conclusively rely, and shall be protected in acting or
refraining from acting, upon any resolution, certificate, statement,
instrument, opinion, report, notice, request, direction, consent, order, bond,
debenture, note, other evidence of indebtedness or other paper or document
believed by it to be genuine and to have been signed or presented by the proper
person;

 

(ii)           before
the Trustee acts or refrains from acting, it may require an Officers’
Certificate or an Opinion of Counsel, which shall conform to Section 12.03.
The Trustee shall not be liable for any action it takes or omits to take in
good faith in reliance on such certificate or opinion;

 

(iii)          the
Trustee may act through its attorneys and agents and shall not be
responsible for the misconduct or negligence of any attorney or agent appointed
with due care by it hereunder;

 

(iv)          the
Trustee shall be under no obligation to exercise any of the rights or powers
vested in it by this Indenture at the request or direction of any of the
Holders, unless such Holders shall have offered to the Trustee security or
indemnity satisfactory to it against the costs, expenses and liabilities that
might be incurred by it in compliance with such request or direction;

 

(v)           the
Trustee shall not be liable for any action it takes or omits to take in good
faith that it believes to be authorized or within its rights or powers, provided that the Trustee’s conduct does not constitute
negligence, bad faith or willful misconduct;

 

(vi)          whenever
in the administration of this Indenture the Trustee shall deem it desirable
that a matter be proved or established prior to taking, suffering or omitting
any action hereunder, the Trustee (unless other evidence be herein specifically
prescribed) may, in the absence of bad faith on its part, conclusively rely
upon an Officers’ Certificate;

 

(vii)         the
Trustee shall not be bound to make any investigation into the facts or matters
stated in any resolution, certificate, statement, instrument, opinion, report,
notice, request, direction, consent, order, bond, debenture, note, other
evidence of indebtedness or other paper or document, but the Trustee, in its
discretion, may make such further inquiry or investigation into such facts
or matters as it may see fit, and, if the Trustee shall determine to make
such further inquiry or investigation, it shall be entitled to examine the
books, records and premises of the Company or Guarantor personally or by agent
or attorney;

 

26

 

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

 

(ix)           the
Trustee shall not be deemed to have notice of any Default or Event of Default
unless a Responsible Officer of the Trustee has actual knowledge thereof or
unless written notice of any event which is in fact such a Default or Event of
Default is received by the Trustee at the Corporate Trust Office of the
Trustee, and such notice references the Debentures and this Indenture;

 

(x)            the
rights, privileges, protections, immunities and benefits given to the Trustee,
including, its right to be indemnified, are extended to, and shall be
enforceable by, the Trustee in each of its capacities hereunder, and each
agent, custodian and other Person employed to act hereunder; and

 

(xi)           the
Trustee may request that the Company or the Guarantor deliver an Officers’
Certificate setting forth the names of individuals and/or titles of Officers
authorized at such time to take specified actions pursuant to this Indenture,
which Officers’ Certificate may be signed by any Person authorized to sign
an Officers’ Certificate, including any Person specified as so authorized in
any such certificate previously delivered and not superseded.

 

SECTION 7.03. Individual Rights of Trustee.

 

The Trustee, in its individual or any other capacity, may become
the owner or pledgee of Debentures and may otherwise deal with the
Company, the Guarantor or their respective Affiliates with the same rights it
would have if it were not the Trustee. Any Agent may do the same with like
rights.

 

SECTION 7.04. Trustee’s Disclaimer.

 

The Trustee (i) makes no representation as to the
validity or adequacy of this Indenture or the Debentures, (ii) shall not
be accountable for the Company’s use or application of the proceeds from the
Debentures and (iii) shall not be responsible for any statement in the
Debentures other than its certificate of authentication.

 

SECTION 7.05. Notice of Default.

 

If any Default or any Event of Default occurs and is
continuing and if such Default or Event of Default is known to the Trustee, the
Trustee shall mail to each Holder notice of the Default or Event of Default
within 30 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 the principal of or
interest on any Debenture, 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

 

27

 

directors and/or
Responsible Officers of the Trustee in good faith determine that the
withholding of such notice is in the interest of the Holders and so advises the
Company or the Guarantor in writing.

 

SECTION 7.06. Compensation and Indemnity.

 

The Company shall pay to the Trustee such compensation
as shall be agreed upon in writing for its services hereunder. The compensation
of the Trustee shall not be limited by any law on compensation of a trustee of
an express trust. The Company shall reimburse the Trustee within five (5) Business
Days of Trustee’s request for reimbursement, for all reasonable disbursements,
expenses and advances incurred or made by the Trustee in carrying out its
duties in connection with the execution of the trusts hereby created without
negligence, bad faith or willful misconduct on its part. Such expenses shall
include the reasonable compensation and expenses of the Trustee’s agents and
counsel.

 

The Company shall indemnify the Trustee, its
employees, officers, directors, agents, successors, assigns and any predecessor
trustee for, and hold them harmless against, any and all loss or liability or
expense incurred by them without negligence, bad faith or willful misconduct on
the part of the Trustee or any such representative thereof in connection
with the acceptance or administration of this Indenture and its duties under
this Indenture and the Debentures, including the costs and expenses of
defending itself against any claim or liability and of complying with any
process served upon it or any of its officers in connection with the exercise
or performance of any of its powers or duties under this Indenture and the
Debentures. The Trustee shall notify the Company promptly of any claim for which
it may seek indemnity. Failure by the Trustee to so notify the Company
shall not relieve the Company of its obligations hereunder, unless the Company
is materially prejudiced thereby. The Company shall defend the claim and the
Trustee shall cooperate in the defense. Unless otherwise set forth herein, the
Trustee may have separate counsel and the Company shall pay the reasonable
fees and expenses of such counsel. The Company need not pay for any settlement
made without its consent, which consent shall not be unreasonably withheld.

 

To secure the Company’s payment obligations in this Section 7.06,
the Trustee shall have a lien prior to the Debentures on all money or property
held or collected by the Trustee, in its capacity as Trustee hereunder,
including money or property held in trust to pay principal of and interest on
particular Debentures.

 

Any amount due either (i) under the first
paragraph of this Section or (ii) determined by a court of competent
jurisdiction in a final, non-appealable order to be due and unpaid thirty (30)
days after written request for such payment shall bear interest from the
expiration of such thirty (30) days at a rate per annum equal to the then rate
charged by the Trustee under similar indentures from time to time, payable on demand.
The said remuneration shall continue to be payable until the trusts hereof be
finally wound up and whether or not the trusts of this Indenture shall be in
the course of administration by or under the direction of a court of competent
jurisdiction.

 

28

 

If the Trustee incurs expenses or renders services
after the occurrence of an Event of Default specified in clause (d) or (e) of
Section 6.01, the expenses and the compensation for the services will be
intended to constitute expenses of administration under any applicable Canadian
federal or other law for the relief of debtors.

 

The provisions of this Section 7.06 shall survive
the termination of this Indenture and the resignation and removal of the Trustee.

 

SECTION 7.07. Replacement of Trustee.

 

A resignation or removal of the Trustee and
appointment of a successor Trustee shall become effective only upon the
successor Trustee’s acceptance of appointment or the appointment of a successor
Trustee by a court of competent jurisdiction as provided in this Section 7.07.

 

The Trustee may resign at any time by so
notifying the Company in writing at least 60 days prior to the date of the
proposed resignation. The Holders of a majority in principal amount of the outstanding
Debentures may at any time remove the Trustee by so notifying the Trustee
and may appoint a successor Trustee. The Company may remove the
Trustee if:  (i) the Trustee is no
longer eligible under Section 7.09; (ii) the Trustee is adjudged a
bankrupt or an insolvent; (iii) a receiver or other public officer takes
charge of the Trustee or its property; or (iv) the Trustee becomes
incapable of acting.

 

If the Trustee resigns or is removed, or if a vacancy
exists in the office of Trustee for any reason, the Company shall promptly
appoint a successor Trustee. Within one year after the successor Trustee takes
office, the Holders of a majority in principal amount of the outstanding
Debentures may appoint a successor Trustee to replace the successor
Trustee appointed by the Company. If the successor Trustee does not deliver its
written acceptance required by the next succeeding paragraph of this Section 7.07
within 30 days after the retiring Trustee resigns or is removed, the retiring
Trustee, the Company or the Holders of a majority in principal amount of the
outstanding Debentures may, at the expense of the Company, petition any court
of competent jurisdiction for the appointment of a successor Trustee.

 

A successor Trustee shall deliver a written acceptance
of its appointment to the retiring Trustee and to the Company. Immediately
after the delivery of such written acceptance, subject to the lien provided in Section 7.06,
(i) the retiring Trustee shall transfer all property held by it as Trustee
to the successor Trustee, (ii) the resignation or removal of the retiring
Trustee shall become effective and (iii) the successor Trustee shall have
all the rights, powers and duties of the Trustee under this Indenture. A
successor Trustee shall mail notice of its succession to each Holder. No
successor Trustee shall accept its appointment unless at the time of such
acceptance such successor Trustee shall be qualified and eligible under this
Article.

 

If the Trustee is no longer eligible under Section 7.09,
any Holder may petition any court of competent jurisdiction for the
removal of the Trustee and the appointment of a successor Trustee. If at any
time the Trustee shall cease to be eligible in accordance with the provisions
of

 

29

 

this Section 7.07,
the Trustee shall resign immediately in the manner and with the effect provided
in this Section.

 

The Company shall give notice of any resignation and
any removal of the Trustee and each appointment of a successor Trustee to all
Holders. Each notice shall include the name of the successor Trustee and the
address of its Corporate Trust Office.

 

Notwithstanding replacement of the Trustee pursuant to
this Section 7.07, the Company’s obligation under Section 7.06 shall
continue for the benefit of the retiring Trustee.

 

SECTION 7.08. Successor Trustee by Merger, Etc.

 

If the Trustee amalgamates with or transfers all or
substantially all of its corporate trust business to, another trust company or
financial institution, the resulting, surviving or transferee trust company or
other financial institution without any further act shall be the successor
Trustee with the same effect as if the successor Trustee had been named as the
Trustee herein, provided such trust company or
financial institution shall be otherwise qualified and eligible under this
Article.

 

SECTION 7.09. Eligibility.

 

The Trustee shall have a combined capital and surplus
of at least $100 million as set forth in its most recent published annual
report of condition that is subject to the requirements of the Office of the
Superintendent of Financial Institutions and any other applicable Canadian or
provincial supervising or examining authority. If at any time the Trustee shall
cease to be eligible in accordance with the provisions of this Section, the
Trustee shall resign immediately in the manner and with the effect specified in
this Article.

 

SECTION 7.10. Money Held in Trust.

 

The Trustee shall not be liable for interest on any
money received by it except as the Trustee may agree with the Company. Moneys
held in trust by the Trustee need not be segregated from other funds except to
the extent required by law and except for money held in trust under Article Eight
of this Indenture.

 

SECTION 7.11. Initial Appointment of Trustee.

 

The Company hereby appoints Computershare Trust
Company of Canada as the Trustee and the Trustee hereby accepts such
appointment.

 

30

 

ARTICLE EIGHT

DISCHARGE OF INDENTURE

 

SECTION 8.01. Termination of Company’s Obligations.

 

Except as otherwise provided in this Section 8.01,
the Company may terminate its obligations under the Debentures and this
Indenture if:

 

(i)            all
Debentures previously authenticated and delivered (other than destroyed, lost
or stolen Debentures that have been replaced or Debentures that are paid
pursuant to Section 4.01 or Debentures for whose payment money or
securities have theretofore been held in trust and thereafter repaid to the
Company, as provided in Section 8.05) have been delivered to the Trustee
for cancellation and the Company has paid all sums payable by it hereunder; or

 

(ii)           (A) the
Debentures mature within one year, (B) the Company or the Guarantor
irrevocably deposits in trust with the Trustee during such one-year period, as
trust funds solely for the benefit of the Holders for that purpose, money or
Canadian Government Obligations sufficient (in the opinion of a nationally
recognized firm of independent chartered accountants expressed in a written
certification thereof delivered to the Trustee), without consideration of any
reinvestment of any interest thereon, to pay principal and interest on the
Debentures to maturity, and to pay all other sums payable by it hereunder, (C) no
Default or Event of Default with respect to the Debentures shall have occurred
and be continuing on the date of such deposit, (D) such deposit will not
result in a breach or violation of, or constitute a default under, this
Indenture or any other agreement or instrument to which the Company is a party
or by which it is bound and (E) the Company has delivered to the Trustee
an Officers’ Certificate and an Opinion of Counsel, in each case stating that
all conditions precedent provided for herein relating to the satisfaction and
discharge of this Indenture have been complied with.

 

With respect to the foregoing clause (i), the Company’s
obligations under Section 7.06 shall survive. With respect to the
foregoing clause (ii), the Company’s obligations in Sections 2.02, 2.03, 2.04,
2.05, 2.06, 2.07, 2.08, 2.09, 4.01, 4.02, 7.06, 7.07, 8.04, 8.05 and 8.06 shall
survive until the Debentures are no longer outstanding. Thereafter, only the
Company’s obligations in Sections 7.06, 8.04, 8.05 and 8.06 shall survive. After
any such irrevocable deposit, the Trustee upon request shall acknowledge in
writing: (i) the discharge of the Company’s obligations under the
Debentures and this Indenture except for those surviving obligations specified
above; and (ii) the discharge of the Guarantor’s obligations under the
Guarantee and this Indenture other than with respect to its guarantee of the
Company’s surviving obligations specified above.

 

31

 

SECTION 8.02. Defeasance and Discharge of Indenture.

 

The Company will be deemed to have paid and will be
discharged from any and all obligations in respect of the Debentures on the
91st day after the date of the deposit referred to in clause (a) of this Section 8.02,
and the provisions of this Indenture will no longer be in effect with respect
to the Debentures, and the Trustee, at the expense of the Company, shall
execute proper instruments acknowledging the same if:

 

(a)           with reference to this Section 8.02,
the Company or the Guarantor has irrevocably deposited or caused to be irrevocably
deposited with the Trustee (or another trustee satisfying the requirements of Section 7.09)
and conveyed all right, title and interest to the Trustee for the benefit of
the Holders, specifically pledged to the Trustee for the benefit of the Holders
as security for payment of the principal of and interest, if any, on the
Debentures, and dedicated solely to, the benefit of the Holders, in and to (1) money
in an amount, (2) Canadian Government Obligations that, through the
payment of interest and principal in respect thereof in accordance with their
terms, will provide, not later than one day before the due date of any payment
referred to in this clause (a), money in an amount or (3) a
combination thereof in an amount sufficient, in the opinion of a nationally
recognized firm of independent chartered accountants expressed in a written
certification thereof delivered to the Trustee, to pay and discharge, without
consideration of the reinvestment of such interest and after payment of all
federal, provincial and local taxes or other charges and assessments in respect
thereof payable by the Trustee, the principal of and interest on the
outstanding Debentures on the Stated Maturity of such principal or interest; provided that the Trustee shall have been irrevocably
instructed to apply such money or the proceeds of such Canadian Government
Obligations to the payment of such principal and interest with respect to the
Debentures;

 

(b)           the Company has
delivered to the Trustee either (x) an Opinion of Counsel to the effect
that Holders will not recognize income, gain or loss for Canadian federal
income tax purposes as a result of the Company’s exercise of its option under
this Section 8.02 and will be subject to Canadian federal income and other
tax on the same amount and in the same manner and at the same times as would
have been the case if such option had not been exercised, which Opinion of
Counsel shall be based upon (and accompanied by a copy of) a ruling of the
Canada Revenue Agency to the same effect unless there has been a change in
applicable Canadian federal income and other tax law after the Closing Date
such that a ruling is no longer required or (y) a ruling directed to the
Trustee received from the Canada Revenue Agency to the same effect as the aforementioned
Opinion of Counsel.

 

(c)           immediately after
giving effect to such deposit, on a pro forma basis, no Default or Event of
Default shall have occurred and be continuing on the date of such deposit or,
insofar as Sections 6.01(d) and 6.01(e) are concerned, at any time
during the period ending on the 91st day after such date of such deposit; and

 

32

 

(d)           the Company has
delivered to the Trustee an Officers’ Certificate and an Opinion of Counsel, in
each case stating that all conditions precedent provided for herein relating to
the defeasance contemplated by this Section 8.02 have been complied with.

 

Notwithstanding the foregoing, prior to the end of the
91-day period referred to in clause (c) of this Section 8.02, none of
the Company’s obligations under this Indenture shall be discharged. Subsequent
to the end of such 91-day period with respect to this Section 8.02, the
Company’s obligations in Sections 2.02, 2.03, 2.04, 2.05, 2.06, 2.07, 2.08,
2.09, 8.04, 8.05, 8.06 and the rights, powers, trusts, duties and immunities of
the Trustee hereunder shall survive until the Debentures are no longer
outstanding. Thereafter, only the Company’s obligations in Sections 7.06, 8.04,
8.05 and 8.06 shall survive. If the Company exercises its defeasance option
under this Section 8.02 with respect to the Debentures, the Guarantor
shall be released from all its obligations with respect to the Guarantee, other
than with respect to its guarantee of the Company’s surviving obligations
specified above, after such 91-day period.

 

After any such irrevocable deposit, the Trustee upon
request shall acknowledge in writing the discharge of the Company’s obligations
under the Debentures and this Indenture except for those surviving obligations
referred to in the immediately preceding paragraph.

 

SECTION 8.03. Defeasance of Certain Obligations.

 

The Company may omit to comply with any term,
provision or condition set forth in Sections 4.03 and 5.01 and clause (c) of
Section 6.01 with respect to Sections 4.03 and 5.01, and clause (c) of
Section 6.01 shall be deemed not to be an Event of Default, in each case
with respect to the outstanding Debentures if:

 

(i)            with
reference to this Section 8.03, the Company has irrevocably deposited or
caused to be irrevocably deposited with the Trustee (or another trustee
satisfying the requirements of Section 7.09) and conveyed all right, title
and interest to the Trustee for the benefit of the Holders, under the terms of
an irrevocable trust agreement in form and substance satisfactory to the
Trustee as trust funds in trust, specifically pledged to the Trustee for the
benefit of the Holders as security for payment of the principal of and
interest, if any, on the Debentures, and dedicated solely to, the benefit of
the Holders, in and to (A) money in an amount, (B) Canadian
Government Obligations that, through the payment of interest and principal in
respect thereof in accordance with their terms, will provide, not later than
one day before the due date of any payment referred to in this clause (i),
money in an amount or (C) a combination thereof in an amount sufficient,
in the opinion of a nationally recognized firm of independent chartered
accountants expressed in a written certification thereof delivered to the Trustee,
to pay and discharge, without consideration of the reinvestment of such
interest and after payment of all federal, provincial and local taxes or other
charges and assessments in respect thereof payable by the Trustee, the
principal of and interest on the outstanding Debentures on the Stated Maturity
of such principal or interest; provided that
the Trustee shall have been irrevocably instructed to apply such money or the
proceeds of

 

33

 

such
Canadian Government Obligations to the payment of such principal and interest
with respect to the Debentures;

 

(ii)           the
Company has delivered to the Trustee either (x) an Opinion of Counsel to the
effect that the Holders will not recognize income, gain or loss for Canadian
federal income tax purposes as a result of such deposit and defeasance of
certain covenants and Events of Default and will be subject to Canadian federal
income and other tax on the same amount and in the same manner and at the same
times as would have been the case if such deposit and defeasance had not
occurred or (y) a ruling directed to the Trustee received from the Canada
Revenue Agency to the same effect as the aforementioned Opinion of Counsel;

 

(iii)          immediately
after giving effect to such deposit on a pro forma basis, no Default or Event
of Default shall have occurred and be continuing on the date of such deposit
or, insofar as Sections 6.01(d) and 6.01(e) are concerned, at any
time during the period ending on the 91st day after such date of such deposit;
and

 

(iv)          the
Company has delivered to the Trustee an Officers’ Certificate and an Opinion of
Counsel, in each case stating that all conditions precedent provided for herein
relating to the defeasance contemplated by this Section 8.03 have been
complied with.

 

If the Company
exercises its defeasance option under this Section 8.03 with respect to
the Debentures, the Guarantor shall be released from all its obligations with
respect to its guarantee of such defeased obligations of the Company at the end
of such 91-day period.

 

SECTION 8.04. Application of Trust Money.

 

Subject to Section 8.06, the Trustee or Paying
Agent shall hold in trust money or Canadian Government Obligations deposited
with it pursuant to Section 8.01, 8.02 or 8.03, as the case may be,
and shall apply the deposited money and the money from Canadian Government
Obligations in accordance with the Debentures and this Indenture to the payment
of principal of and interest on the Debentures; but such money need not be
segregated from other funds except to the extent required by law.

 

SECTION 8.05. Repayment to Company.

 

Subject to Sections 7.06, 8.01, 8.02 and 8.03, the
Trustee and the Paying Agent (other than the Company or an Affiliate of the
Company) shall promptly pay to the Company upon request set forth in an
Officers’ Certificate any excess money held by them at any time and thereupon
shall be relieved from all liability with respect to such money. The Trustee
and the Paying Agent (other than the Company or an Affiliate of the Company)
shall pay to the Company upon request any money held by them for the payment of
principal or interest that remains unclaimed for two years; provided that the Trustee or Paying Agent before being
required to make any payment may cause to be published at the expense of
the Company once in a newspaper of general circulation in the City of Toronto
or mail to each Holder entitled to such

 

34

 

money at such Holder’s
address (as set forth in the Security Register) notice that such money remains
unclaimed and that after a date specified therein (which shall be at least 30
days from the date of such publication or mailing) any unclaimed balance of
such money then remaining will be repaid to the Company. After payment to the
Company, Holders entitled to such money must look to the Company for payment as
general creditors unless an applicable law designates another Person, and all
liability of the Trustee and such Paying Agent with respect to such money shall
cease.

 

SECTION 8.06. Reinstatement.

 

If the Trustee or Paying Agent is unable to apply any
money or Canadian Government Obligations in accordance with Section 8.01,
8.02 or 8.03, as the case may be, by reason of any legal proceeding or by
reason of any order or judgment of any court or governmental authority
enjoining, restraining or otherwise prohibiting such application, the Company’s
and Guarantor’s obligations under this Indenture and the Debentures shall be
revived and reinstated as though no deposit had occurred pursuant to Section 8.01,
8.02 or 8.03, as the case may be, until such time as the Trustee or Paying
Agent is permitted to apply all such money or Canadian Government Obligations
in accordance with Section 8.01, 8.02 or 8.03, as the case may be; provided that, if the Company or the Guarantor has made any
payment of principal of or interest on any Debentures because of the
reinstatement of its obligations, the Company or the Guarantor shall be
subrogated to the rights of the Holders of such Debentures to receive such
payment from the money or Canadian Government Obligations held by the Trustee
or Paying Agent.

 

ARTICLE NINE

 

AMENDMENTS, SUPPLEMENTS
AND WAIVERS

 

SECTION 9.01. Without Consent of Holders.

 

Either the Company or the Guarantor, each when authorized
by a resolution of its respective Board of Directors (as evidenced by a Board
Resolution delivered to the Trustee), and the Trustee may amend or
supplement this Indenture or the Debentures without notice to or the consent of
any Holder:

 

(i)            to
cure any ambiguity, defect or inconsistency in this Indenture provided such
does not materially or adversely affect the rights of any Holder;

 

(ii)           to
comply with Article Five;

 

(iii)          to
evidence and provide for the acceptance of appointment hereunder by a successor
Trustee;

 

(iv)          to
provide for uncertificated Debentures in addition to or in place of
certificated Debentures;

 

35

 

(v)           to
add to the covenants of the Company for the protection of the Holders, to add
any additional Events of Default with respect to the Debentures, or to
surrender any right or power conferred upon the Company; or

 

(vi)          to
make any change that does not materially and adversely affect the rights of any
Holder.

 

SECTION 9.02. With Consent of Holders.

 

Subject to Sections 6.04 and 6.08, either the Company
or the Guarantor, each when authorized by its respective Board of Directors (as
evidenced by a Board Resolution delivered to the Trustee), and the Trustee may amend
this Indenture and the Debentures with the written consent of the Holders of a
majority in aggregate principal amount of the Debentures then outstanding
(which shall be calculated so as not include any Debentures then held by the
Company or any of its Affiliates), and the Holders of a majority in aggregate
principal amount of the Debentures then outstanding (not including the Company
or any of its Affiliates) by written notice to the Trustee may waive
future compliance by the Company with any provision of this Indenture or the
Debentures.

 

Notwithstanding the provisions of this Section 9.02,
without the consent of each Holder affected, an amendment or waiver, including
a waiver pursuant to Section 6.04, may not:

 

(i)            change
the Stated Maturity of the principal of, or any installment of interest on, any
Debenture;

 

(ii)           reduce
the principal amount of or interest on any Debenture;

 

(iii)          change
any place or currency of payment of principal of or interest on any Debenture;

 

(iv)          impair
the right to institute suit for the enforcement of any payment on or after the
Stated Maturity on any Debenture;

 

(v)           reduce
the percentage or principal amount of outstanding Debentures the consent of
whose Holders is necessary to modify or amend this Indenture or to waive
compliance with certain provisions of or certain Defaults under this Indenture;

 

(vi)          waive
a default in the payment of principal of or interest on any Debenture;

 

(vii)         make
any modification to the Guarantee or release Guarantor that would adversely
impact the Holders; or

 

(viii)        modify
any of the provisions of this Section 9.02, except to increase any
percentage required to provide that certain other provisions of this Indenture
cannot be

 

36

 

modified
or waived without the consent of the Holder of each outstanding Debenture
affected thereby.

 

It shall not be necessary for the consent of the
Holders under this Section 9.02 to approve the particular form of any
proposed amendment, supplement or waiver, but it shall be sufficient if such consent
approves the substance thereof.

 

After an amendment, supplement or waiver under this Section 9.02
becomes effective, the Company shall mail to the Holders affected thereby a
notice briefly describing the amendment, supplement or waiver. The Company will
mail supplemental indentures to Holders upon request. Any failure of the
Company to mail such notice, or any defect therein, shall not, however, in any
way impair or affect the validity of any such supplemental indenture or waiver.

 

SECTION 9.03. Action by Holders; Record Dates.

 

Whenever in this Indenture it is provided that the
Holders of a specified aggregate principal amount of the outstanding Debentures
may take any action (including the making of any demand or request, the
giving of any notice, consent or waiver or the taking of any other action), the
fact that at the time of taking any such action the Holders of such specified
amount have joined therein may be evidenced (a) by any instrument or
any number of instruments of similar tenor executed by such Holders in person
or by agent or proxy appointed in writing, or (b) the record of the
Holders voting in favor thereof at any meeting of the Holders duly called and
held in accordance with the provisions of Article Ten, or (c) any
combination of such instrument or instruments and any such record of such a
meeting of the Holders.

 

Subject to the provisions of Sections 7.02 and 10.05,
proof of the execution of any instrument by a Holder or its agent or proxy
shall be sufficient if the ownership of the Debentures shall be proved by (a) the
Security Register or by a certificate of the Registrar; or (b) in
accordance with such reasonable rules and regulations as may be
prescribed by the Trustee or in any other manner which the Trustee may deem
sufficient.

 

The Company may, but shall not be obligated to, fix a
record date for the purpose of determining the Holders entitled to consent to
any amendment, supplement or waiver. If a record date is fixed, then,
notwithstanding the last two sentences of the immediately preceding paragraph,
those persons who were Holders at such record date (or their duly designated
proxies) and only those persons shall be entitled to consent to such amendment,
supplement or waiver or to revoke any consent previously given, whether or not
such persons continue to be Holders after such record date. No such consent
shall be valid or effective for more than 90 days after such record date.

 

After an amendment, supplement or waiver becomes
effective, it shall bind every Holder unless it is of the type described in the
second paragraph of Section 9.02. In case of an amendment or waiver of the
type described in the second paragraph of Section 9.02, the amendment or
waiver shall bind each Holder who has consented to it and every subsequent

 

37

 

Holder of a Debenture
that evidences the same indebtedness as the Debenture of the consenting Holder.

 

SECTION 9.04. Revocation and Effect of Consent.

 

Until an amendment or waiver becomes effective, a consent
to it by a Holder is a continuing consent by the Holder and every subsequent
Holder of a Debenture or portion of a Debenture that evidences the same debt as
the Debenture of the consenting Holder, even if notation of the consent is not
made on any Debenture. However, any such Holder or subsequent Holder may revoke
the consent as to its Debenture or portion of its Debenture. Such revocation
shall be effective only if the Trustee receives the notice of revocation before
the date the amendment, supplement or waiver becomes effective. An amendment,
supplement or waiver shall become effective on receipt by the Trustee of
written consents from the Holders of the requisite percentage in principal
amount of the outstanding Debentures.

 

SECTION 9.05. Notation on or Exchange of Debentures.

 

If an amendment, supplement or waiver changes the
terms of a Debenture, the Trustee may require the Holder to deliver such
Debenture to the Trustee. At the Company’s expense, the Trustee may place
an appropriate notation on the Debenture about the changed terms and return it
to the Holder, and the Trustee may place an appropriate notation on any
Debenture thereafter authenticated. Alternatively, if the Company or the
Trustee so determines, the Company in exchange for the Debenture shall issue
and the Trustee shall authenticate a new Debenture that reflects the changed
terms. Failure to make the appropriate notation, or issue a new Debenture,
shall not affect the validity and effect of such amendment, supplement or
waiver.

 

SECTION 9.06. Trustee to Sign Amendments, Etc.

 

The Trustee shall be entitled to receive, and shall be
fully protected in relying upon, an Opinion of Counsel stating that the
execution of any amendment, supplement or waiver authorized pursuant to this Article Nine
is authorized or permitted by this Indenture and that it will be valid and
binding upon the Company. Subject to the preceding sentence, the Trustee shall
sign such amendment, supplement or waiver if the same does not adversely affect
the rights, duties, liabilities or immunities of the Trustee. The Trustee may,
but shall not be obligated to, execute any such amendment, supplement or waiver
that affects the Trustee’s own rights, duties or immunities under this
Indenture or otherwise.

 

38

 

 

ARTICLE TEN

MEETINGS OF THE HOLDERS

 

SECTION 10.01. Purposes of Meetings.

 

A meeting of the Holders may be called at any
time and from time to time pursuant to the provisions of this Article Ten
for any of the following purposes:

 

(i)                                     to
give any notice to the Company, the Guarantor or the Trustee, or to give any
directions to the Trustee, or to waive any Default hereunder and its
consequences, or to take any other action authorized to be taken by the Holders
pursuant to any of the provisions of Article Six;

 

(ii)                                  to
remove the Trustee and appoint a successor trustee pursuant to the provisions
of Article Seven;

 

(iii)                               to
consent to any amendment, supplement or waiver pursuant to the provisions of Section 9.02;
or

 

(iv)                              to
take any other action authorized to be taken by or on behalf of the Holders of
any specified aggregate principal amount of the outstanding Debentures under
any other provision of this Indenture or under applicable law.

 

SECTION 10.02. Call of Meetings by Trustee.

 

The Trustee may at any time call a meeting of the
Holders to take any action specified in Section 10.01, to be held at such
time and at such place in the Province of Ontario, City of Toronto, as the
Trustee shall determine. Notice of every meeting of the Holders, setting forth
the time and place of such meeting and in general terms the action proposed to
be taken at such meeting, shall be given (a) to all Holders of Debentures
then outstanding, by publication at least twice in an Authorized Newspaper with
national circulation in the Province of Ontario, City of Toronto prior to the
date fixed for the meeting, the first publication, in each case, to be not less
than 20 nor more than 180 days prior to the date fixed for the meeting and the
last publication to be not more than five days prior to the date fixed for the
meeting and (b) to all Holders of Debentures then outstanding who have
filed their names and addresses with the Trustee, by mailing such notice to
such Holders at such addresses, not less than 20 nor more than 180 days prior
to the date fixed for the meeting. Failure of any Holder or Holders to receive
such notice or any defect therein shall in no case affect the validity of any
action taken at such meeting. Any meeting of the Holders shall be valid without
notice if the Holders of all Debentures then outstanding, the Company and the
Trustee are present in person or by proxy or shall have waived notice thereof
before or after the meeting.

 

39

 

SECTION 10.03. Call of Meetings by Company or Holders.

 

In case at any time the Company, pursuant to a Board
Resolution, or the Holders of at least 10% in aggregate principal amount of the
Debentures then outstanding, as the case may be, shall have requested the
Trustee to call a meeting of the Holders to take any action authorized in Section 10.01,
by written request setting forth in reasonable detail the action proposed to be
taken at the meeting, and the Trustee shall not have mailed or published as
provided in Section 10.02, the notice of such meeting within 30 days after
receipt of such request, then the Company or such Holders of the amount above
specified may determine the time and the place in the Province of Ontario,
City of Toronto for such meeting and may call such meeting to take any
action authorized in Section 10.01, by mailing or publishing notice
thereof as provided in Section 10.02.

 

SECTION 10.04. Qualification for Voting.

 

To be entitled to vote at any meeting of the Holders,
a person must be a Holder of Debentures or a person appointed by an instrument
in writing as proxy by such Holder. The only persons who shall be entitled to
be present or to speak at any meeting of the Holders shall be the persons
entitled to vote at such meeting and their counsel and any representatives of
the Trustee and its counsel and any representatives of the Company and its
counsel.

 

SECTION 10.05. Regulations.

 

Notwithstanding any other provisions of this
Indenture, the Trustee may make such reasonable regulations as it may deem
advisable for any meeting of the Holders, in regard to proof of the holding of
Debentures and of the appointment of proxies, and in regard to the appointment
and duties of scrutineers, the submission and examination of proxies,
certificates and other evidence of the right to vote, and such other matters
concerning the conduct of the meeting as the Trustee shall think fit.

 

The Trustee shall, by an instrument in writing,
appoint a temporary chairman of the meeting, unless the meeting shall have been
called by the Company or by the Holders as provided in Section 10.03, in
which case the Company or the Holders calling the meeting, as the case may be,
shall in like manner appoint a temporary chairman. A permanent chairman and a
permanent secretary of the meeting shall be elected by vote of the Holders of a
majority in principal amount of the Debentures represented at the meeting and
entitled to vote.

 

Subject to the provisions of Section 9.03, at any
meeting of the Holders, each Holder or proxy shall be entitled to one vote for
each $1,000 principal amount at maturity of outstanding Debentures held or
represented by such Holder; provided, however, that no vote shall be cast or counted at any
meeting in respect of any Debenture challenged as not outstanding and ruled by
the chairman of the meeting not to be outstanding. The chairman of the meeting
shall have no right to vote except as a Holder or proxy. Any meeting of the
Holders duly called pursuant to the provisions of Section 10.02 or 10.03 may be
adjourned from time to time, and the meeting may be held as so adjourned
without further notice.

 

40

 

SECTION 10.06. Voting.

 

The vote upon any resolution submitted to any meeting
of the Holders shall be by written ballot on which shall be subscribed the
signatures of the Holders or proxies and on which shall be inscribed the
identifying number or numbers or to which shall be attached a list of
identifying numbers of the Debentures held or represented by them. The
permanent chairman of the meeting shall appoint two scrutineers who shall count
all votes cast at the meeting for or against any resolution and who shall make
and file with the secretary of the meeting their verified reports in duplicate
of all votes cast at the meeting. A record in duplicate of the proceedings of
each meeting of the Holders shall be prepared by the secretary of the meeting
and there shall be attached to said record the original reports of the
scrutineers on any vote by ballot taken thereat and affidavits by one or more
persons having knowledge of the facts setting forth a copy of the notice of the
meeting and showing that said notice was mailed as provided in Section 10.02.
The record shall be signed and verified by the permanent chairman and secretary
of the meeting and one of the duplicates shall be delivered to the Company and
the other to the Trustee to be preserved by the Trustee, the latter to have
attached thereto the ballots voted at the meeting. Any record so signed and
verified shall be conclusive evidence of the matters therein stated.

 

ARTICLE ELEVEN

GUARANTEE

 

SECTION 11.01. Guarantee.

 

The Guarantor hereby unconditionally and irrevocably
guarantees to the Trustee for itself and on behalf of the Holders of the
Debentures, the due and punctual payment by the Company of all amounts payable
by the Company under the Debentures and the Indenture, when and as the same
shall become due and payable, pursuant to the provisions set out in the
Debentures and the Indenture. In case of the failure of the Company punctually
to make any such payment or performance, the Guarantor hereby agrees to make
such payment or such performance, or cause such payment or performance to be
made, such demand must be made by a Holder or by the Trustee on behalf of all
Holders by the giving of written notice of such demand to the Guarantor at 200
East Randolph Street, Chicago, Illinois 60601, Attention:  Treasurer; provided, however, that delay in
making such demand shall in no event affect the Guarantor’s obligations under
the Guarantee. The Guarantee shall remain in full force and effect or shall be
reinstated (as the case may be) if at any time any payment guaranteed
hereunder, in whole or in part, is rescinded or must otherwise be returned by
the Holders upon the insolvency, bankruptcy or reorganization of the Company or
otherwise, all as though such payment had not been made.

 

The Guarantor hereby agrees that its obligations
hereunder shall be unconditional, irrespective of the invalidity, regularity or
enforceability of the Debentures or the Indenture or any of the terms thereof;
the absence of any action to enforce the same; any waiver or consent by the
Holders concerning any provisions thereof; the rendering of any judgment
against the Company or any action to enforce the same; any amendment,
supplement, renewal, replacement

 

41

 

or refinancing of the
Debentures or the Indenture or any other circumstances that might otherwise
constitute a legal or equitable discharge of a guarantor or a defense of a
guarantor. The Guarantor covenants that the Guarantee will not be discharged
except by complete payment of the amounts payable under the Debentures and the
Indenture. This Guarantee shall continue to be effective if the Company merges
or consolidates with or into another entity, loses its separate legal identity
or ceases to exist.

 

The Guarantor hereby waives the benefits of diligence,
presentment, protest, notice of protest, acceleration and dishonor, filing of
claims with any court in the event of insolvency or bankruptcy of the Company,
all demands whatsoever, except as set forth in the Guarantee, and any right to
require a proceeding first against the Company or to claim any right of
set-off.

 

The Guarantor shall be subrogated to all of the rights
of the Holders against the Company in respect of any amount paid by the
Guarantor pursuant to this Guarantee; provided, however, that the Guarantor
shall not be entitled to enforce, or to receive any payments arising out of or
based upon such rights of subrogation until the principal of and premium, if
any, and interest, if any, on, all Debentures issued under the Indenture shall
have been paid in full.

 

ARTICLE TWELVE

 

MISCELLANEOUS

 

SECTION 12.01. Notices.

 

Any notice or communication shall be sufficiently
given if in writing and delivered in person, mailed by first-class mail or
sent by telecopier transmission addressed as follows:

 

if to the Company or the Guarantor:

 

Aon
Corporation

200 East Randolph Street

Chicago, Illinois 60601

 

Telecopier
No.:               (312)
381-6060

Attention:                                         Treasurer

 

with a copy, which shall not constitute notice, to:

 

Aon
Corporation

200 East Randolph Street

Chicago, Illinois 60601

 

Telecopier
No.:               (312)
381-6165

Attention:                                         Deputy
General Counsel

 

42

 

if to the Trustee:

 

Computershare
Trust Company of Canada

100 University Avenue

Toronto, Ontario

M5J 2Y1

 

Telecopier
No.:               (416)
981-9777

Attention:                                         Manager,
Corporate Trust

 

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

 

Any notice or communication mailed to a Holder shall
be mailed to it at its address as it appears on the Security Register by first-class mail
and shall be sufficiently given if so mailed within the time prescribed. Copies
of any such communication or notice to a Holder shall also be mailed to the
Trustee and each Agent at the same time.

 

Failure to mail a notice or communication to a Holder
as provided herein or any defect in any such notice or communication shall not
affect its sufficiency with respect to other Holders. Except for a notice to
the Trustee, which is deemed given only when received, and except as otherwise
provided in this Indenture, if a notice or communication is mailed in the
manner provided in this Section 12.01, it is duly given, whether or not
the addressee receives it.

 

Where this Indenture provides for notice in any
manner, such notice may be waived in writing by the Person entitled to
receive such notice, either before or after the event, and such waiver shall be
the equivalent of such notice. Waivers of notice by Holders shall be filed with
the Trustee, but such filing shall not be a condition precedent to the validity
of any action taken in reliance upon such waiver.

 

In case by reason of the suspension of regular mail
service or by reason of any other cause it shall be impracticable to give such
notice by mail, then such notification as shall be made with the approval of
the Trustee shall constitute a sufficient notification for every purpose
hereunder.

 

SECTION 12.02. Certificate and Opinion as to Conditions
Precedent.

 

Upon any request or application by the Company or the
Guarantor to the Trustee to take any action under this Indenture, the Company
or the Guarantor, as the case may be, shall furnish to the Trustee:

 

(i)                                     an
Officers’ Certificate stating that, in the opinion of the signers, all
conditions precedent, if any, provided for in this Indenture relating to the
proposed action have been complied with; and

 

43

 

(ii)                                  an
Opinion of Counsel stating that, in the opinion of such Counsel, all such
conditions precedent have been complied with.

 

SECTION 12.03. Statements Required in Certificate or Opinion.

 

Each certificate or opinion with respect to compliance
with a condition or covenant provided for in this Indenture shall include:

 

(i)                                     a
statement that each person signing such certificate or opinion has read such
covenant or condition and the definitions herein relating thereto;

 

(ii)                                  a
brief statement as to the nature and scope of the examination or investigation
upon which the statement or opinion contained in such certificate or opinion is
based;

 

(iii)                               a
statement that, in the opinion of each such person, such person has made such
examination or investigation as is necessary to enable him to express an
informed opinion as to whether or not such covenant or condition has been
complied with; and

 

(iv)                              a
statement as to whether or not, in the opinion of each such person, such
condition or covenant has been complied with; provided,
however, that, with respect to matters
of fact, an Opinion of Counsel may rely on an Officers’ Certificate or
certificates of public officials.

 

SECTION 12.04. Rules by Trustee, Paying Agent or Registrar.

 

The Trustee may make reasonable rules for
action by or at a meeting of Holders. The Paying Agent or Registrar may make
reasonable rules for its functions.

 

SECTION 12.05. Payment Date Other Than a Business Day.

 

If any Interest Payment Date or a Maturity Date shall
not be a Business Day, then payment of principal of or interest on the
Debentures will be made on the next succeeding Business Day with the same force
and effect as if made on the date such payment was due, and no interest will
accrue on such payment for the period from and after such Interest Payment Date
or a Maturity Date to the date of such payment on the next succeeding Business
Day.

 

SECTION 12.06. Governing Law.

 

This Indenture and the Debentures shall be governed by
and construed in accordance with the laws of the Province of Ontario and the
federal laws of Canada applicable therein.

 

44

 

SECTION 12.07. No Adverse Interpretation of Other Agreements.

 

This Indenture may not be used to interpret
another indenture, loan or debt agreement of the Company, the Guarantor or any
of their respective Subsidiaries. Any such indenture, loan or debt agreement may not
be used to interpret this Indenture.

 

SECTION 12.08. No Recourse Against Others.

 

No recourse for the payment of the principal of or
interest on any of the Debentures, or for any claim based thereon or otherwise
in respect thereof, and no recourse under or upon any obligation, covenant or
agreement of the Company or the Guarantor contained in this Indenture or in any
of the Debentures, or because of the creation of any indebtedness represented
thereby, shall be had against any incorporator or against any past, present or
future partner, shareholder, other equityholder, officer, director, employee or
controlling person, as such, of the Company or the Guarantor or of any
successor Person of either of them, either directly or through the Company or
the Guarantor or any successor Person of either of them, 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 all such
liability is hereby expressly waived and released as a condition of, and as a
consideration for, the execution of this Indenture and the issue of the
Debentures.

 

SECTION 12.09. Successors.

 

All agreements of the Company and the Guarantor in
this Indenture, the Debentures and the Guarantee shall bind their respective
successors and permitted assigns. All agreements of the Trustee in this
Indenture shall bind its successor and permitted assigns.

 

SECTION 12.10. Duplicate Originals.

 

The parties may sign any number of copies of this
Indenture. Each signed copy shall be an original, but all of them together
represent the same agreement.

 

SECTION 12.11. Separability.

 

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

 

SECTION 12.12. Table of Contents, Headings, Etc.

 

The Table of Contents and headings of the Articles and
Sections of this Indenture have been inserted for convenience of reference
only, are not to be considered a part hereof and shall in no way modify or
restrict any of the terms and provisions hereof.

 

45

 

SECTION 12.13. Counterparts.

 

This Indenture may be executed in any number of
counterparts, each of which shall be an original and all of which taken
together shall constitute one and the same instrument.

 

[SIGNATURE
PAGE FOLLOWS]

 

46

 

SIGNATURES

 

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

 

	
   

  	
  Aon
  FINANCE N.S. 1, ULC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Diane
  Aigotti

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Diane Aigotti

  
	
   

  	
   

  	
  Title:

  	
  Vice President and
  Treasurer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Jennifer L.
  Kraft

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Jennifer L. Kraft

  
	
   

  	
   

  	
  Title:

  	
  Assistant Secretary

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Aon CORPORATION

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Richard E. Barry

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Richard E. Barry

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  COMPUTERSHARE TRUST COMPANY

  OF CANADA

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Mircho Mirchev

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Mircho Mirchev

  
	
   

  	
   

  	
  Title:

  	
  Professional, Corporate Trust

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ C. Davidson

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Cheryl Davidson

  
	
   

  	
   

  	
  Title:

  	
  Administrator,
  Corporate Trust

  
					

 

 

EXHIBIT A

 

FORM OF DEBENTURE

 

[Each Global Debenture
shall bear the following legends.

 

UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED
REPRESENTATIVE OF THE CANADIAN DEPOSITORY FOR SECURITIES LIMITED (“CDS”), TO
THE COMPANY OR THE TRUSTEE FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT,
AND ANY CERTIFICATE ISSUED IN RESPECT THEREOF IS REGISTERED IN THE NAME OF CDS &
CO., OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF
CDS (AND ANY PAYMENT IS MADE TO CDS & CO., OR TO SUCH OTHER ENTITY AS
IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF CDS), ANY TRANSFER, PLEDGE OR
OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL SINCE
THE REGISTERED HOLDER HEREOF, CDS & CO., OR SUCH OTHER AUTHORIZED
REPRESENTATIVE OF CDS, HAS AN INTEREST HEREIN. THIS CERTIFICATE IS ISSUED
PURSUANT TO A MASTER LETTER OF REPRESENTATIONS OF THE COMPANY TO CDS, AS SUCH
LETTER MAY BE REPLACED OR AMENDED FROM TIME TO TIME.

 

THIS SECURITY IS A GLOBAL DEBENTURE WITHIN THE MEANING
OF THE INDENTURE AND IS REGISTERED IN THE NAME OF CDS & CO.

 

THIS DEBENTURE (OR ITS PREDECESSOR) WAS ORIGINALLY
ISSUED IN A TRANSACTION EXEMPT FROM REGISTRATION UNDER THE UNITED STATES
SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND THIS SECURITY MAY NOT
BE OFFERED, SOLD OR OTHERWISE TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION
OR AN APPLICABLE EXEMPTION THEREFROM. EACH PURCHASER OF THIS DEBENTURE IS
HEREBY NOTIFIED THAT THE SELLER OF THIS DEBENTURE MAY BE RELYING ON AN
EXEMPTION FROM THE PROVISIONS OF SECTION 5 OF THE SECURITIES ACT.

 

A-1

 

[FACE OF DEBENTURE]

 

Aon FINANCE N.S. 1, ULC

 

5.05% Senior Unsecured
Debenture due 2011

 

	
   

  	
   

  	
  ISIN# CA
  03739YAA51

  
	
   

  	
   

  	
  CUSIP# 03739YAA5

  
	
   

  	
   

  	
   

  
	
  No. 001

  	
   

  	
  Principal Amount Cdn. $375,000,000

  

 

Aon FINANCE N.S. 1, ULC, a Nova Scotia unlimited
company (the “Company”, which term includes any successor under the Indenture
hereinafter referred to), for value received, promises to pay to CDS &
Co., or its registered assigns, the principal sum of Three Hundred and
Seventy-Five Million Canadian dollars (Cdn. $375,000,000) on April 12,
2011.

 

Interest Payment Dates: April 12 and October 12
of each year, commencing October 12, 
2006.

 

Record Dates:   
The fifteenth calendar day, whether or not a Business Day, immediately
preceding each Interest Payment Date.

 

Reference is hereby made to the further provisions of
this Debenture set forth on the reverse hereof, which further provisions shall
for all purposes have the same effect as if set forth at this place.

 

Additional provisions of this Debenture are set forth
on the other side of this Debenture.

 

 

[SIGNATURE
PAGE FOLLOWS]

 

A-2

 

IN WITNESS WHEREOF, the Company has caused this
Debenture to be signed manually or by facsimile by its duly authorized
officers.

 

	
   

  	
  Aon FINANCE N.S. 1, ULC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  

 

 

TRUSTEE’S CERTIFICATE OF AUTHENTICATION

 

This is one of the 5.05% Senior Unsecured Debentures
due 2011 described in the within-mentioned Indenture.

 

Date: April 12, 2006

 

	
   

  	
  COMPUTERSHARE TRUST COMPANY OF

  CANADA, as Trustee

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Authorized Signatory

  

 

A-3

 

[REVERSE SIDE OF DEBENTURE]

 

Aon FINANCE N.S. 1, ULC

 

5.05% Senior Unsecured Debenture due 2011

 

1.                                       Principal
and Interest.

 

The Company will pay the principal of this Debenture
on April 12, 2011.

 

The Company promises to pay interest on the principal
amount of this Debenture on each Interest Payment Date, as set forth below, at
the rate per annum shown above, subject to adjustment as described below.

 

Interest will be payable in equal semi-annual payments
in arrears (to the Holders of record of the Debentures at the close of business
on the fifteenth calendar day, whether or not a Business Day, immediately
preceding the relevant Interest Payment Date) on each Interest Payment Date of
each year, commencing October 12, 2006.

 

Interest on the Debentures will accrue from, and
including, April 12, 2006 to, and excluding, the first Interest Payment
Date and then from, and including, the immediately preceding Interest Payment
Date to which interest has been paid or duly provided for to, but excluding,
the next Interest Payment Date or the Maturity Date, as the case may be; provided that, if there is no existing default in the
payment of interest and this Debenture is authenticated between a Record Date
referred to on the face hereof and the next succeeding Interest Payment Date,
interest shall accrue from such Interest Payment Date.

 

For the purposes of the Interest Act
(Canada), whenever interest to be paid under this Debenture is to be calculated
on the basis of a year of a specified number of days, the yearly equivalent
rate of interest to which the rate determined pursuant to such calculation is
equivalent to is the rate so determined multiplied by the actual number of days
in the calendar year in which the same is to be ascertained divided by such
specified number of days.

 

2.                                       Method
of Payment.

 

The Company will pay interest on the principal amount
of the Debentures as provided above on each April 12 and October 12,
commencing October 12, 2006 to the persons who are Holders (as reflected
in the Security Register at the close of business on the fifteenth calendar
day, whether or not a Business Day, immediately preceding the Interest Payment
Date), in each case, even if the Debenture is cancelled on registration of
transfer or registration of exchange after such Record Date; provided that, with respect to the payment of principal, the
Company will make payment to the Holder that surrenders this Debenture to a
Paying Agent on or after April 12, 2011.

 

Not later than 10:00 a.m. (Toronto time) on each
due date of any principal of or interest on the Debentures, the Company shall
deposit with the Paying Agent money in immediately available funds sufficient
to pay such principal and interest so becoming due. The Company

 

A-4

 

shall require each Paying
Agent other than the Trustee to agree in writing that such Paying Agent shall
hold in trust for the benefit of the Holders or the Trustee all money held by
the Paying Agent for the payment of principal of and interest on the Debentures
(whether such money has been paid to it by the Company or any other obligor on
the Debentures including the Guarantor), and such Paying Agent shall promptly
notify the Trustee of any default by the Company (or any other obligor on the
Debentures including the Guarantor) in making any such payment. The Company at
any time may require a Paying Agent to pay all money held by it to the
Trustee and account for any funds disbursed, and the Trustee may at any
time during the continuance of any payment default, upon written request to a
Paying Agent, require such Paying Agent to pay all money held by it to the
Trustee and to account for any funds disbursed.

 

So long as the Debentures
are represented by one or more Global Debenture registered in the name of the
Depository or its nominee, all interest payments on the Debentures shall be
made by the Paying Agent (if different from the Trustee) by wire transfer of immediately
available funds in Canadian dollars to an account designated by the Depository.
In the event any Debentures cease to be so represented by a Global Debenture,
the Registrar (if different from the Trustee) shall furnish to the
Trustee as of each Record Date and at such other times as the Trustee may reasonably
request the names and addresses of Holders as they appear in the Security
Register, including the aggregate principal amount of Debentures held by each
Holder, and the Trustee shall direct the Paying Agent to pay principal and
interest by wire transfer to each Holder or by cheque sent by mail to such
Holder’s registered address (as reflected in the Security Register).

 

If the Company or any Subsidiary of the Company or any
Affiliate of any of them acts as Paying Agent, it will, on or before each due
date of any principal of or interest on the Debentures, segregate and hold in a
separate trust fund for the benefit of the Holders a sum of money sufficient to
pay such principal or interest so becoming due until such sum of money shall be
paid to such Holders or otherwise disposed of as provided in this Indenture,
and will promptly notify the Trustee of its action or failure to act.

 

If any Interest Payment Date or the Maturity Date
falls on a day that is not a Business Day, the payment of principal and
interest will be made on the next succeeding Business Day as if made on the
date such payment was due, and no interest will accrue on such payment for the
period from and after the Maturity Date to the date of such payment on the next
succeeding Business Day.

 

The Debentures are not intended to be sold to Persons
who are not Canadian residents within the meaning of the Income Tax Act (Canada). Any withholding
taxes required under applicable laws with respect to payments to Holders who
are non-residents of Canada (as defined in the Income
Tax Act (Canada)) shall be withheld by the Company and remitted to
the applicable taxing authority without any gross-up or additional amount paid
to such non-resident Holders.

 

A-5

 

3.                                       Paying
Agent and Registrar.

 

Initially, the Trustee will act as authenticating
agent, Paying Agent and Registrar. The Company may change any
authenticating agent, Paying Agent or Registrar without notice. The Company,
the Guarantor, any Subsidiary of the Company or the Guarantor or any Affiliate
of any of them may act as Paying Agent, Registrar or Co-Registrar.

 

4.                                       Indenture;
Limitations.

 

The Company issued the Debentures under an Indenture, dated
as of April 12, 2006 (the “Indenture”), between the Company, Aon
Corporation (the “Guarantor”) and Computershare Trust Company of Canada,
as trustee (the “Trustee”). Capitalized terms herein are used as defined
in the Indenture unless otherwise indicated. The terms of the Debentures
include those stated in the Indenture. The Debentures are subject to all such
terms, and Holders are referred to the Indenture. To the extent permitted by
applicable law, in the event of any inconsistency between the terms of this
Debenture and the terms of the Indenture, the terms of the Indenture shall
control.

 

The Debentures are general unsecured obligations of
the Company.

 

The Company may, subject to Article Four of the
Indenture and applicable law, issue additional Debentures under the Indenture.

 

5.                                       Optional
Redemption.

 

The Debentures will be redeemable as a whole at any
time or in part from time to time, at the option of the Company, at a
redemption price equal to the greater of: (i) one hundred percent (100%)
of the outstanding principal amount of the Debentures being redeemed or (ii) the
Canada Yield Price calculated in respect of the Debentures being redeemed;
plus, in either case, accrued and unpaid interest on the principal amount being
redeemed to the redemption date.

 

6.                                       Notice
of Redemption.

 

Notice of Redemption will be mailed at least 30 days
but not more than 60 days before the redemption date to each Holder of
Debentures to be redeemed at his registered address. Debentures in
denominations larger than Cdn. $1,000 principal amount may be redeemed in part but
only in whole multiples of Cdn. $1,000. If money sufficient to pay the
redemption price of and accrued interest on all Debentures (or portions
thereof) to be redeemed on the redemption date is deposited with the Paying
Agent on or before the redemption date and certain other conditions are
satisfied, on and after such date interest ceases to accrue on such Debentures
(or such portion thereof) called for redemption.

 

7.                                       Guarantee.

 

The payment by the Company of the principal of, and
interest on, the Debentures is fully and unconditionally guaranteed by the
Guarantor.

 

A-6

 

8.                                       Denominations;
Transfer; Exchange.

 

The Debentures are in registered form without coupons
in denominations of Cdn. $1,000 of principal amount and multiples of Cdn.
$1,000 in excess thereof. A Holder may register the transfer or exchange
of Debentures in accordance with the Indenture. The Registrar may require
a Holder, among other things, to furnish appropriate endorsements and transfer
documents and to pay any taxes and fees required by law or permitted by the
Indenture. The Registrar need not register the transfer or exchange of any
Debentures selected for redemption (except, in the case of a Debenture to be
redeemed in part, the portion of the Debenture not to be redeemed) or any
Debentures for a period of fifteen (15) days before a selection of Debentures
to be redeemed.

 

9.                                       Persons
Deemed Owners.

 

A Holder shall be treated as the legal owner of a
Debenture for all purposes.

 

10.                                 Unclaimed
Money.

 

If money for the payment of principal or interest
remains unclaimed for two years, the Trustee and the Paying Agent will pay the
money back to the Company at its request. After that, Holders entitled to the
money must look to the Company for payment, unless applicable law designates
another Person, and all liability of the Trustee and such Paying Agent with
respect to such money shall cease. In no event will interest accrue on any
unclaimed monies.

 

11.                                 Discharge
Prior to Maturity.

 

If the Company deposits with the Trustee money or
Canadian Government Obligations sufficient to pay the then outstanding
principal of and accrued and unpaid interest on the Debentures (a) to
redemption or maturity, as the case may be, the Company will be discharged
from the Indenture and the Debentures, except in certain circumstances for
certain provisions thereof, and (b) to the Stated Maturity, the Company
will be discharged from certain covenants set forth in the Indenture.

 

12.                                 Amendment;
Supplement; Waiver.

 

Subject to certain exceptions set forth in the
Indenture, (a) the Indenture or the Debentures may be amended or
supplemented with the consent of the Holders of at least a majority in
principal amount of the Debentures then outstanding and (b) any existing
default or compliance with any provision may be waived with the consent of
the Holders of at least a majority in principal amount of the Debentures then
outstanding. Without notice to or the consent of any Holder, the parties
thereto may amend or supplement the Indenture or the Debentures to, among
other things, cure any ambiguity, defect or inconsistency and make any change
that does not materially and adversely affect the rights of any Holder.

 

13.                                 Restrictive
Covenants.

 

The Indenture imposes certain limitations on the
ability of the Company and the Guarantor, among other things, to (a) create
security interests in the common shares of any

 

A-7

 

Significant Subsidiary to
secure debt in excess of US$50,000,000, (b) merge, consolidate, amalgamate
or transfer or lease substantially all of its assets or (c) cease to
preserve and keep in full force and effect its existence and rights. On or
before a date not more than four months after the end of each fiscal year, the
Company and the Guarantor shall deliver to the Trustee an Officers’ Certificate
stating whether or not the signers thereof know of any Default or Event of
Default under such restrictive covenants.

 

14.                                 Successor
Persons.

 

When a successor Person or other entity assumes all
the obligations of its predecessor under the Debentures and the Indenture, the
predecessor person will be released from those obligations subject to the terms
of the Indenture.

 

15.                                 Defaults
and Remedies.

 

Any of the following events constitutes an “Event of
Default” under the Indenture:

 

(a)                                  default
in the payment of the principal of any of the Debentures as and when the same
shall become due and payable either at maturity, by declaration or otherwise;
or

 

(b)                                 default
in the payment of any installment of interest on any of the Debentures as and
when the same shall become due and payable, and continuance of such default for
a period of 30 days; or

 

(c)                                  failure
on the part of the Company or the Guarantor duly to observe or perform any
other of the covenants or agreements on the part of the Company or the
Guarantor in the Indenture applicable to the Debentures for a period of 90 days
after the date on which written notice of such failure, specifying such failure
and requiring the Company or the Guarantor to remedy the same and stating that
such notice is a “Notice of Default” hereunder, shall have been given to the
Company or the Guarantor by the Trustee, or to the Company or the Guarantor and
the Trustee by the Holders of at least 25% in aggregate principal amount of the
Debentures at the time outstanding; or

 

(d)                                 a
court having jurisdiction in the premises shall enter a decree or order for
relief in respect of the Company or the Guarantor in an involuntary case under
any applicable bankruptcy, insolvency or other similar law now or hereafter in
effect, or appointing a receiver, liquidator, assignee, custodian, trustee,
sequestrator (or similar official) of the Company or the Guarantor or for any
substantial part of its property, or ordering the winding-up or
liquidation of its affairs and such decree or order shall remain unstayed and
in effect for a period of 90 days; or

 

(e)                                  the
Company or the Guarantor shall commence a voluntary case under any applicable
bankruptcy, insolvency or other similar law now or hereafter in effect, or
shall consent to the entry of any order for relief in an involuntary case under
any such law, or shall consent to the appointment of or taking possession by a
receiver, liquidator, assignee, trustee, custodian, sequestrator (or similar
official) of the Company or the Guarantor or for any substantial part of
its property, or shall make any general assignment for the benefit of
creditors; or

 

A-8

 

(f)                                    the
Company or the Guarantor shall fail to make any payment when due (whether by
scheduled maturity, required prepayment, acceleration, demand, or otherwise),
after giving effect to any applicable grace period, in respect of any
indebtedness for money borrowed (other than indebtedness under this Indenture)
having an aggregate principal amount greater than US$50,000,000 or its
equivalent in Canadian Dollars.

 

If an Event of Default, as defined in the Indenture,
occurs and is continuing, the Trustee may, and at the direction of the Holders
of at least 25% in aggregate principal amount of the Debentures then
outstanding shall, declare all the Debentures to be due and payable. If a
bankruptcy or insolvency default with respect to the Company occurs and is
continuing, the Debentures automatically become due and payable. Holders may not
enforce the Indenture or the Debentures except as provided in the Indenture. The
Trustee may require indemnity satisfactory to it before it enforces the Indenture
or the Debentures. Subject to certain limitations, Holders of at least a
majority in principal amount of the Debentures then outstanding may direct
the Trustee in its exercise of any trust or power.

 

16.                                 Trustee
Dealings with the Company.

 

The Trustee under the Indenture, in its individual or
any other capacity, may make loans to, accept deposits from and perform services
for the Company or its Affiliates and may otherwise deal with the Company
or its Affiliates as if it were not the Trustee.

 

17.                                 No
Recourse Against Others.

 

No incorporator or any past, present or future
partner, stockholder, other equityholder, officer, director, employee or
controlling person, as such, of the Company or the Guarantor or of any
successor Person shall have any liability for any obligations of the Company
under the Debentures or the Indenture or for any claim based on, in respect of
or by reason of, such obligations or their creation. Each Holder by accepting a
Debenture waives and releases all such liability. The waiver and release are part of
the consideration for the issuance of the Debentures.

 

18.                                 Authentication.

 

This Debenture shall not be valid until the Trustee or
authenticating agent signs the certificate of authentication on the other side
of this Debenture.

 

19.                                 Governing
Law.

 

This Debenture shall be governed by, and construed in
accordance with, the laws of the Province of Ontario and the federal laws of
Canada applicable therein.

 

The Company and the Guarantor will furnish a copy of
the Indenture to any Holder upon written request and without charge. Requests may be
made to the Company or the Guarantor as follows:  Aon Corporation, 200 East Randolph Street,
Chicago, Illinois 60601; Attention: Treasurer.

 

A-9

 

ASSIGNMENT FORM

 

	
  I or we assign and transfer this Debenture to:
                                                                                                                                               

  
	
   

  
	
  Insert social insurance
  number or other identifying number of assignee

  
	
   

  
	
  Print or type name,
  address and postal code of
  assignee                                                                                                                              

  
	
                                                                                                                                                                                                                         

  
	
  and irrevocably appoint
                                                                                                                                           ,
  as agent, to transfer this 

  
	
  Debenture on the books of the Company.

  
	
   

  
	
  The agent may substitute
  another to act for him.

  

 

 

	
  Date:

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Signed

  	
   

  	
   

  
	
   

  	
   

  	
  (Sign exactly as name appears on the other side of
  this Debenture)

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Signature Guarantee*:

  	
   

  	
   

  	
   

  
								

 

*                                         The
Holder’s signature must be guaranteed by a member firm of a registered national
securities exchange or of the Investment Dealers Association of Canada, a
Canadian chartered bank or a federally-regulated trust company.

 

A-10

 

EXHIBIT B

 

FORM OF GUARANTEE

 

THIS SECURITY (OR ITS PREDECESSOR) HAS NOT BEEN REGISTERED UNDER THE
U.S. SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR ANY STATE
SECURITIES LAWS, AND MAY NOT BE OFFERED, SOLD, OR OTHERWISE TRANSFERRED IN
THE ABSENCE OF SUCH REGISTRATION OR AN APPLICABLE EXEMPTION THEREFROM. EACH
PURCHASER OF THIS SECURITY IS HEREBY NOTIFIED THAT THE SELLER OF THIS SECURITY MAY BE
RELYING ON AN EXEMPTION FROM THE PROVISIONS OF SECTION 5 OF THE SECURITIES
ACT.

 

FOR VALUE RECEIVED, receipt of which is hereby acknowledged, Aon
Corporation, a corporation duly organized and existing under the laws of the
State of Delaware (the “Guarantor”), hereby unconditionally and irrevocably
guarantees (the “Guarantee”) to Computershare Trust Company of Canada, as
trustee (including any successor pursuant to the terms of the Indenture (as
defined below), the “Trustee”) for itself and on behalf of the holders (the “Holders”)
of the debentures (the “Debentures”) issued by Aon Finance N.S. 1, ULC, a Nova
Scotia unlimited company (the “Company”), under the terms of the Indenture
dated April 12, 2006 (as the same may be amended or supplemented in
accordance with the terms thereof, the “Indenture”), among the Company, the
Guarantor and the Trustee, the due and punctual payment by the Company of all
amounts payable by the Company under the Debentures and the Indenture, when and
as the same shall become due and payable, pursuant to the provisions set out in
the Debentures and the Indenture. In case of the failure of the Company
punctually to make any such payment or performance, the Guarantor hereby agrees
to make such payment or such performance, or cause such payment or performance
to be made, promptly upon demand; such demand must be made by a Holder or by
the Trustee on behalf of all Holders by the giving of written notice of such
demand to the Guarantor at 200 East Randolph Street, Chicago, Illinois 60601,
Attention:  Treasurer; provided, however,
that delay in making such demand shall in no event affect the Guarantor’s
obligations under this Guarantee. This Guarantee shall remain in full force and
effect or shall be reinstated (as the case may be) if at any time any
payment guaranteed hereunder, in whole or in part, is rescinded or must
otherwise be returned by the Holders upon the insolvency, bankruptcy or
reorganization of the Company or otherwise, all as though such payment had not
been made.

 

The Guarantor hereby agrees that its obligations hereunder shall be
unconditional, irrespective of the invalidity, regularity or enforceability of
the Debentures or the Indenture or any of the terms thereof; the absence of any
action to enforce the same; any waiver or consent by the Holders concerning any
provisions thereof; the rendering of any judgment against the Company or any
action to enforce the same; any amendment, supplement, renewal, replacement or
refinancing of the Debentures or the Indenture or any other circumstances that
might otherwise constitute a legal or equitable discharge of a guarantor or a
defense of a guarantor. The Guarantor covenants that this Guarantee will not be
discharged except by complete payment of the amounts payable under the Debentures
and the Indenture. This Guarantee shall continue to be effective if the Company
merges or consolidates with or into another entity, loses its separate legal
identity or ceases to exist.

 

B-1

 

The Guarantor hereby waives the benefits of diligence, presentment,
protest, notice of protest, acceleration and dishonor, filing of claims with
any court in the event of insolvency or bankruptcy of the Company, all demands
whatsoever, except as noted in the first paragraph of this Guarantee, and any
right to require a proceeding first against the Company or to claim any right
of set-off.

 

The Guarantor hereby certifies and warrants that this Guarantee
constitutes the valid obligation of the Guarantor and complies with all
applicable laws.

 

The Guarantor shall be subrogated to all of the rights of the Holders
against the Company in respect of any amount paid by the Guarantor pursuant to
this Guarantee; provided, however, that the Guarantor shall not be entitled to
enforce, or to receive any payments arising out of or based upon such rights of
subrogation until the principal of and premium, if any, and interest, if any,
on, all Debentures issued under the Indenture shall have been paid in full.

 

The obligations of the Guarantor under this Guarantee are unconditional
and irrevocable obligations of the Guarantor ranking pari passu with all other
present and future unsecured and unsubordinated obligations of the Guarantor.

 

This Guarantee shall not be valid or become obligatory for any purpose
with respect to any Debenture until such Debenture shall have been
authenticated on behalf of the Trustee as provided in the Indenture.

 

This Guarantee shall be governed by, and construed in accordance with,
the laws of the Province of Ontario and the laws of Canada applicable therein.

 

Capitalized terms used herein and not defined herein shall have the
meanings given to them in the Indenture.

 

[SIGNATURE PAGE FOLLOWS]

 

B-2

 

IN WITNESS WHEREOF, the Guarantor has caused this Guarantee to be
executed in its corporate name by its duly authorized representative on this 12th
day of April, 2006.

 

 

	
   

  	
  Aon CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  

 

B-3

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