Document:

enta-ex43_6.htm

Exhibit 4.3

ENANTA PHARMACEUTICALS, INC.

INDENTURE

Dated as of             , 20   

[            ]

 

 

Trustee

- 1 -

 

 

 

TABLE OF CONTENTS

 

	
ARTICLE I DEFINITIONS AND INCORPORATION BY REFERENCE
	
1

	
Section 1.01
	
Definitions.
	
1

	
Section 1.02
	
Other Definitions.
	
4

	
Section 1.03
	
Incorporation by Reference of Trust Indenture Act.
	
5

	
Section 1.04
	
Rules of Construction.
	
5

	
ARTICLE II THE SECURITIES
	
6

	
Section 2.01
	
Issuable in Series.
	
6

	
Section 2.02
	
Establishment of Terms of Series of Securities.
	
6

	
Section 2.03
	
Execution and Authentication.
	
8

	
Section 2.04
	
Registrar, Paying Agent and Notice Agent.
	
9

	
Section 2.05
	
Paying Agent to Hold Money in Trust.
	
10

	
Section 2.06
	
Securityholder Lists.
	
10

	
Section 2.07
	
Transfer and Exchange.
	
10

	
Section 2.08
	
Mutilated, Destroyed, Lost and Stolen Securities.
	
11

	
Section 2.09
	
Outstanding Securities.
	
12

	
Section 2.10
	
Treasury Securities.
	
12

	
Section 2.11
	
Temporary Securities.
	
12

	
Section 2.12
	
Cancellation.
	
13

	
Section 2.13
	
Defaulted Interest.
	
13

	
Section 2.14
	
Global Securities.
	
13

	
Section 2.15
	
CUSIP Numbers.
	
14

	
ARTICLE III REDEMPTION
	
14

	
Section 3.01
	
Notice to Trustee.
	
14

	
Section 3.02
	
Selection of Securities to be Redeemed.
	
15

	
Section 3.03
	
Notice of Redemption.
	
15

	
Section 3.04
	
Effect of Notice of Redemption.
	
16

	
Section 3.05
	
Deposit of Redemption Price.
	
16

	
Section 3.06
	
Securities Redeemed in Part.
	
16

	
ARTICLE IV COVENANTS
	
16

	
Section 4.01
	
Payment of Principal and Interest.
	
16

	
Section 4.02
	
SEC Reports.
	
17

	
Section 4.03
	
Compliance Certificate.
	
17

	
Section 4.04
	
Stay, Extension and Usury Laws.
	
17

	
Section 4.05
	
Corporate Existence.
	
17

	
ARTICLE V SUCCESSORS
	
18

	
Section 5.01
	
When Company May Merge, Etc.
	
18

	
Section 5.02
	
Successor Corporation Substituted.
	
18

	
ARTICLE VI DEFAULTS AND REMEDIES
	
18

	
Section 6.01
	
Events of Default.
	
18

	
Section 6.02
	
Acceleration of Maturity; Rescission and Annulment.
	
20

	
Section 6.03
	
Collection of Indebtedness and Suits for Enforcement by Trustee.
	
20

	
Section 6.04
	
Trustee May File Proofs of Claim.
	
21

	
Section 6.05
	
Trustee May Enforce Claims Without Possession of Securities.
	
22

	
Section 6.06
	
Application of Money Collected.
	
22

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Section 6.07
	
Limitation on Suits.
	
22

	
Section 6.08
	
Unconditional Right of Holders to Receive Principal and Interest.
	
23

	
Section 6.09
	
Restoration of Rights and Remedies.
	
23

	
Section 6.10
	
Rights and Remedies Cumulative.
	
23

	
Section 6.11
	
Delay or Omission Not Waiver.
	
24

	
Section 6.12
	
Control by Holders.
	
24

	
Section 6.13
	
Waiver of Past Defaults.
	
24

	
Section 6.14
	
Undertaking for Costs.
	
24

	
ARTICLE VII TRUSTEE
	
25

	
Section 7.01
	
Duties of Trustee.
	
25

	
Section 7.02
	
Rights of Trustee.
	
26

	
Section 7.03
	
Individual Rights of Trustee.
	
27

	
Section 7.04
	
Trustee’s Disclaimer.
	
27

	
Section 7.05
	
Notice of Defaults.
	
27

	
Section 7.06
	
Reports by Trustee to Holders.
	
28

	
Section 7.07
	
Compensation and Indemnity.
	
28

	
Section 7.08
	
Replacement of Trustee.
	
29

	
Section 7.09
	
Successor Trustee by Merger, Etc.
	
30

	
Section 7.10
	
Eligibility; Disqualification.
	
30

	
Section 7.11
	
Preferential Collection of Claims Against Company.
	
30

	
ARTICLE VIII SATISFACTION AND DISCHARGE; DEFEASANCE
	
30

	
Section 8.01
	
Satisfaction and Discharge of Indenture.
	
30

	
Section 8.02
	
Application of Trust Funds; Indemnification.
	
31

	
Section 8.03
	
Legal Defeasance of Securities of any Series.
	
32

	
Section 8.04
	
Covenant Defeasance.
	
33

	
Section 8.05
	
Repayment to Company.
	
34

	
Section 8.06
	
Reinstatement.
	
34

	
ARTICLE IX AMENDMENTS AND WAIVERS
	
35

	
Section 9.01
	
Without Consent of Holders.
	
35

	
Section 9.02
	
With Consent of Holders.
	
35

	
Section 9.03
	
Limitations.
	
36

	
Section 9.04
	
Compliance with Trust Indenture Act.
	
37

	
Section 9.05
	
Revocation and Effect of Consents.
	
37

	
Section 9.06
	
Notation on or Exchange of Securities.
	
37

	
Section 9.07
	
Trustee Protected.
	
37

	
ARTICLE X MISCELLANEOUS
	
38

	
Section 10.01
	
Trust Indenture Act Controls.
	
38

	
Section 10.02
	
Notices.
	
38

	
Section 10.03
	
Communication by Holders with Other Holders.
	
39

	
Section 10.04
	
Certificate and Opinion as to Conditions Precedent.
	
39

	
Section 10.05
	
Statements Required in Certificate or Opinion.
	
40

	
Section 10.06
	
Rules by Trustee and Agents.
	
40

	
Section 10.07
	
Legal Holidays.
	
40

	
Section 10.08
	
No Recourse Against Others.
	
40

	
Section 10.09
	
Counterparts.
	
40

- iii -

 

 

	
Section 10.10
	
Governing Law.
	
41

	
Section 10.11
	
No Adverse Interpretation of Other Agreements.
	
41

	
Section 10.12
	
Successors.
	
41

	
Section 10.13
	
Severability.
	
41

	
Section 10.14
	
Table of Contents, Headings, Etc.
	
41

	
Section 10.15
	
Securities in a Foreign Currency.
	
41

	
Section 10.16
	
Judgment Currency.
	
42

	
Section 10.17
	
Force Majeure.
	
42

	
ARTICLE XI SINKING FUNDS
	
43

	
Section 11.01
	
Applicability of Article.
	
43

	
Section 11.02
	
Satisfaction of Sinking Fund Payments with Securities.
	
43

	
Section 11.03
	
Redemption of Securities for Sinking Fund.
	
44

 

 

 

- iv -

 

 

 

ENANTA PHARMACEUTICALS, INC.

Reconciliation and tie between Trust Indenture Act of 1939 and

Indenture, dated as of             , 20   

 

	
§  310(a)(1)
	
 
	
7.10

	
(a)(2)
	
 
	
7.10

	
(a)(3)
	
 
	
Not Applicable

	
(a)(4)
	
 
	
Not Applicable

	
(a)(5)
	
 
	
7.10

	
(b)
	
 
	
7.10

	
§  311(a)
	
 
	
7.11

	
(b)
	
 
	
7.11

	
§  312(a)
	
 
	
2.06

	
(b)
	
 
	
10.03

	
(c)
	
 
	
10.03

	
§  313(a)
	
 
	
7.06

	
(b)
	
 
	
7.06

	
(c)
	
 
	
7.06

	
(d)
	
 
	
7.06

	
§  314(a)
	
 
	
4.02, 10.05

	
(b)
	
 
	
Not applicable

	
(c)(1)
	
 
	
10.04

	
(c)(2)
	
 
	
10.04

	
(c)(3)
	
 
	
Not applicable

	
(d)
	
 
	
Not applicable

	
(e)
	
 
	
10.5

	
(f)
	
 
	
Not applicable

	
§  315(a)
	
 
	
7.01

	
(b)
	
 
	
7.05

	
(c)
	
 
	
7.01

	
(d)
	
 
	
7.01

	
(e)
	
 
	
6.14

	
§  316(a)
	
 
	
2.10

- v -

 

 

	
(a)(1)(A)
	
 
	
6.12

	
(a)(1)(B)
	
 
	
6.13

	
(a)(2)
	
 
	
Not applicable

	
(b)
	
 
	
6.08

	
§  317(a)(1)
	
 
	
6.03

	
(b)
	
 
	
2.05

	
§  318(a)
	
 
	
10.01

 

Note:This reconciliation and tie shall not, for any purpose, be deemed to be part of the Indenture.

 

- vi -

 

 

 

INDENTURE

Indenture dated as of                    , 20         between Enanta Pharmaceuticals, Inc., a Delaware corporation (the “Company”), and [            ] (the “Trustee”).  Each party agrees as follows for the benefit of the other party and for the equal and ratable benefit of the Holders of the Securities issued under this Indenture.

ARTICLE I
DEFINITIONS AND INCORPORATION BY REFERENCE

Section 1.01Definitions.

“Additional Amounts” means any additional amounts which are required hereby or by any Security, under circumstances specified herein or therein, to be paid by the Company in respect of certain taxes imposed on Holders specified herein or therein and which are owing to such Holders.

“Affiliate” of any specified person means any other person directly or indirectly controlling or controlled by or under common control with such specified person. For the purposes of this definition, “control” (including, with correlative meanings, the terms “controlled by” and “under common control with”), as used with respect to any person, shall mean the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of such person, whether through the ownership of voting securities or by agreement or otherwise.

“Agent” means any Registrar, Paying Agent or Notice Agent.

“Board of Directors” means the board of directors of the Company or any duly authorized committee thereof.

“Board Resolution” means a copy of a resolution certified by the Secretary or an Assistant Secretary of the Company to have been adopted by the Board of Directors or pursuant to authorization by the Board of Directors and to be in full force and effect on the date of the certificate and delivered to the Trustee.

“Business Day” means, unless otherwise provided by Board Resolution, Officer’s Certificate or supplemental indenture hereto for a particular Series, any day except a Saturday, Sunday or a legal holiday in The City of New York, New York (or in connection with any payment, the place of payment) on which banking institutions are authorized or required by law, regulation or executive order to close.

“Capital Stock” means any and all shares, interests, participations, rights or other equivalents (however designated) of corporate stock.

“Company” means the party named as such above until a successor replaces it and thereafter means the successor.

- 1 -

 

 

“Company Order” means a written order signed in the name of the Company by an Officer.

“Corporate Trust Office” means the office of the Trustee at which at any particular time its corporate trust business related to this Indenture shall be principally administered.

“Default” means any event which is, or after notice or passage of time or both would be, an Event of Default.

“Depositary” means, with respect to the Securities of any Series issuable or issued in whole or in part in the form of one or more Global Securities, the person designated as Depositary for such Series by the Company, which Depositary shall be a clearing agency registered under the Exchange Act; and if at any time there is more than one such person, “Depositary” as used with respect to the Securities of any Series shall mean the Depositary with respect to the Securities of such Series.

“Discount Security” means any Security that provides for an amount less than the stated principal amount thereof to be due and payable upon declaration of acceleration of the maturity thereof pursuant to Section 6.02.

“Dollars” and “$” means the currency of The United States of America.

“Exchange Act” means the Securities Exchange Act of 1934, as amended.

“Foreign Currency” means any currency or currency unit issued by a government other than the government of The United States of America.

“Foreign Government Obligations” means, with respect to Securities of any Series that are denominated in a Foreign Currency, direct obligations of, or obligations guaranteed by, the government that issued or caused to be issued such currency for the payment of which obligations its full faith and credit is pledged and which are not callable or redeemable at the option of the issuer thereof.

“GAAP” means accounting principles generally accepted in the United States of America set forth in the opinions and pronouncements of the Accounting Principles Board of the American Institute of Certified Public Accountants and statements and pronouncements of the Financial Accounting Standards Board or in such other statements by such other entity as have been approved by a significant segment of the accounting profession, which are in effect as of the date of determination, unless otherwise provided for in a particular Series of Securities by a Board Resolution, a supplemental indenture hereto or an Officer’s Certificate.

“Global Security” or “Global Securities” means a Security or Securities, as the case may be, in the form established pursuant to Section 2.02 evidencing all or part of a Series of Securities, issued to the Depositary for such Series or its nominee, and registered in the name of such Depositary or nominee.

“Holder” or “Securityholder” means a person in whose name a Security is registered.

- 2 -

 

 

“Indenture” means this Indenture as amended or supplemented from time to time and shall include the form and terms of particular Series of Securities established as contemplated hereunder.

“interest” with respect to any Discount Security which by its terms bears interest only after Maturity, means interest payable after Maturity.

“Maturity,” when used with respect to any Security, means the date on which the principal of such Security becomes due and payable as therein or herein provided, whether at the Stated Maturity or by declaration of acceleration, call for redemption or otherwise.

“Officer” means the Chief Executive Officer, President, the Chief Financial Officer, any Vice President, the Treasurer or any Assistant Treasurer, the Secretary or any Assistant Secretary of the Company.

“Officer’s Certificate” means a certificate signed by any Officer.

“Opinion of Counsel” means a written opinion of legal counsel who is reasonably acceptable to the Trustee, which opinion may be subject to customary limitations, conditions and exceptions. The counsel may be an employee of or counsel to the Company.

“person” means any individual, corporation, partnership, joint venture, association, limited liability company, joint-stock company, trust, unincorporated organization or government or any agency or political subdivision thereof, or other entity of any kind.

“principal” of a Security means the principal of the Security plus, when appropriate, the premium, if any, on, and any Additional Amounts in respect of, the Security.

“Responsible Officer” means any officer of the Trustee in its Corporate Trust Office having responsibility for administration of this Indenture and also means, with respect to a particular corporate trust matter, any other officer to whom any corporate trust matter is referred because of his or her knowledge of and familiarity with a particular subject.

“SEC” means the Securities and Exchange Commission.

“Securities” means the debentures, notes or other debt instruments of the Company of any Series authenticated and delivered under this Indenture.

“Series” or “Series of Securities” means each series of debentures, notes or other debt instruments of the Company created pursuant to Sections 2.01 and 2.02 hereof.

“Stated Maturity” when used with respect to any Security, means the date specified in such Security as the fixed date on which the principal of such Security or interest is due and payable.

“Subsidiary” of any specified person means any corporation, association or other business entity of which more than 50% of the total voting power of shares of Capital Stock entitled (without regard to the occurrence of any contingency) to vote in the election of directors, 

- 3 -

 

 

managers or trustees thereof is at the time owned or controlled, directly or indirectly, by such person or one or more of the other Subsidiaries of that person or a combination thereof. 

“TIA” means the Trust Indenture Act of 1939 (15 U.S. Code §§ 77aaa-77bbbb) as in effect on the date of this Indenture; provided, however, that in the event the Trust Indenture Act of 1939 is amended after such date, “TIA” means, to the extent required by any such amendment, the Trust Indenture Act as so amended.

“Trustee” means the person named as the “Trustee” in the first paragraph of this instrument until a successor Trustee shall have become such pursuant to the applicable provisions of this Indenture, and thereafter “Trustee” shall mean or include each person who is then a Trustee hereunder, and if at any time there is more than one such person, “Trustee” as used with respect to the Securities of any Series shall mean the Trustee with respect to Securities of that Series.

“U.S. Government Obligations” means securities which are direct obligations of, or guaranteed by, The United States of America for the payment of which its full faith and credit is pledged and which 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 U.S. Government Obligation or a specific payment of interest on or principal of any such U.S. 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 U.S. Government Obligation evidenced by such depository receipt.

Section 1.02Other Definitions.

 

		
	
TERM
	
DEFINED IN

	
 
	
SECTION

	
“Bankruptcy Law”
	
6.01

	
“Custodian”
	
6.01

	
“Event of Default”
	
6.01

	
“Judgment Currency”
	
10.16

	
“Legal Holiday”
	
10.07

	
“mandatory sinking fund payment”
	
11.01

	
“New York Banking Day”
	
10.16

	
“Notice Agent”
	
2.04

	
“optional sinking fund payment”
	
11.01

	
“Paying Agent”
	
2.04

	
“Registrar”
	
2.04

	
“Required Currency”
	
10.16

	
“successor person”
	
5.01

 

 

- 4 -

 

 

 

Section 1.03Incorporation by Reference of Trust Indenture Act.

Whenever this Indenture refers to a provision of the TIA, the provision is incorporated by reference in and made a part of this Indenture. The following TIA terms used in this Indenture have the following meanings:

“Commission” means the SEC.

“indenture securities” means the Securities.

“indenture security holder” means a Securityholder.

“indenture to be qualified” means this Indenture.

“indenture trustee” or “institutional trustee” means the Trustee.

“obligor” on the indenture securities means the Company and any successor obligor upon the Securities.

All other terms used in this Indenture that are defined by the TIA, defined by TIA reference to another statute or defined by SEC rule under the TIA and not otherwise defined herein are used herein as so defined.

Section 1.04Rules of Construction.

Unless the context otherwise requires:

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

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

(c)“or” is not exclusive;

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

(e)provisions apply to successive events and transactions;

(f)all references in this Indenture to “Articles,” “Sections” and other subdivisions are to the designated Articles, Sections and provisions of this Indenture, unless otherwise indicated;

(g)“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

(h)the words “including,” “includes” and similar words shall not be limiting and shall be deemed to be followed by “without limitation.”

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ARTICLE II
THE SECURITIES

Section 2.01Issuable in Series.

The aggregate principal amount of Securities that may be authenticated and delivered under this Indenture is unlimited. The Securities may be issued in one or more Series. All Securities of a Series shall be identical except as may be set forth or determined in the manner provided in a Board Resolution, supplemental indenture or Officer’s Certificate detailing the adoption of the terms thereof pursuant to authority granted under a Board Resolution. In the case of Securities of a Series to be issued from time to time, the Board Resolution, Officer’s Certificate or supplemental indenture detailing the adoption of the terms thereof pursuant to authority granted under a Board Resolution may provide for the method by which specified terms (such as interest rate, maturity date, record date or date from which interest shall accrue) are to be determined. Securities may differ between Series in respect of any matters, provided that all Series of Securities shall be equally and ratably entitled to the benefits of the Indenture.

Section 2.02Establishment of Terms of Series of Securities.

At or prior to the issuance of any Securities within a Series, the following shall be established (as to the Series generally, in the case of Subsection (a) and either as to such Securities within the Series or as to the Series generally in the case of Subsections (b) through(w)) by or pursuant to a Board Resolution, and set forth or determined in the manner provided in a Board Resolution, supplemental indenture hereto or Officer’s Certificate:

(a)the title (which shall distinguish the Securities of that particular Series from the Securities of any other Series) and ranking (including the terms of any subordination provisions) of the Series;

(b)the price or prices (expressed as a percentage of the principal amount thereof) at which the Securities of the Series will be issued;

(c)any limit upon the aggregate principal amount of the Securities of the Series which may be authenticated and delivered under this Indenture (except for Securities authenticated and delivered upon registration of transfer of, or in exchange for, or in lieu of, other Securities of the Series pursuant to Section 2.07, 2.08, 2.11, 3.06 or 9.06);

(d)the date or dates on which the principal of the Securities of the Series is payable;

(e)the rate or rates (which may be fixed or variable) per annum or, if applicable, the method used to determine such rate or rates (including, but not limited to, any commodity, commodity index, stock exchange index or financial index) at which the Securities of the Series shall bear interest, if any, the date or dates from which such interest, if any, shall accrue, the date or dates on which such interest, if any, shall commence and be payable and any regular record date for the interest payable on any interest payment date;

(f)the place or places where the principal of and interest, if any, on the Securities of the Series shall be payable, where the Securities of such Series may be surrendered for 

- 6 -

 

 

registration of transfer or exchange and where notices and demands to or upon the Company in respect of the Securities of such Series and this Indenture may be delivered, and the method of such payment, if by wire transfer, mail or other means;

(g)if applicable, the period or periods within which, the price or prices at which and the terms and conditions upon which the Securities of the Series may be redeemed, in whole or in part, at the option of the Company;

(h)the obligation, if any, of the Company to redeem or purchase the Securities of the Series pursuant to any sinking fund or analogous provisions or at the option of a Holder thereof and the period or periods within which, the price or prices at which and the terms and conditions upon which Securities of the Series shall be redeemed or purchased, in whole or in part, pursuant to such obligation;

(i)the dates, if any, on which and the price or prices at which the Securities of the Series will be repurchased by the Company at the option of the Holders thereof and other detailed terms and provisions of such repurchase obligations;

(j)if other than denominations of $1,000 and any integral multiple thereof, the denominations in which the Securities of the Series shall be issuable;

(k)the forms of the Securities of the Series and whether the Securities will be issuable as Global Securities;

(l)if other than the principal amount thereof, the portion of the principal amount of the Securities of the Series that shall be payable upon declaration of acceleration of the maturity thereof pursuant to Section 6.02;

(m)the currency of denomination of the Securities of the Series, which may be Dollars or any Foreign Currency, and if such currency of denomination is a composite currency, the agency or organization, if any, responsible for overseeing such composite currency;

(n)the designation of the currency, currencies or currency units in which payment of the principal of and interest, if any, on the Securities of the Series will be made;

(o)if payments of principal of or interest, if any, on the Securities of the Series are to be made in one or more currencies or currency units other than that or those in which such Securities are denominated, the manner in which the exchange rate with respect to such payments will be determined;

(p)the manner in which the amounts of payment of principal of or interest, if any, on the Securities of the Series will be determined, if such amounts may be determined by reference to an index based on a currency or currencies or by reference to a commodity, commodity index, stock exchange index or financial index;

(q)the provisions, if any, relating to any security provided for the Securities of the Series;

- 7 -

 

 

(r)any addition to, deletion of or change in the Events of Default which applies to any Securities of the Series and any change in the right of the Trustee or the requisite Holders of such Securities to declare the principal amount thereof due and payable pursuant to Section 6.02;

(s)any addition to, deletion of or change in the covenants set forth in Articles IV or V which applies to Securities of the Series;

(t)any Depositaries, interest rate calculation agents, exchange rate calculation agents or other agents with respect to Securities of such Series if other than those appointed herein;

(u)the provisions, if any, relating to conversion or exchange of any Securities of such Series, including if applicable, the conversion or exchange price, the conversion or exchange period, provisions as to whether conversion or exchange will be mandatory, at the option of the Holders thereof or at the option of the Company, the events requiring an adjustment of the conversion price or exchange price and provisions affecting conversion or exchange if such Series of Securities are redeemed;

(v)any other terms of the Series (which may supplement, modify or delete any provision of this Indenture insofar as it applies to such Series), including any terms that may be required under applicable law or regulations or advisable in connection with the marketing of Securities of that Series; and

(w)whether any of the Company’s direct or indirect Subsidiaries will guarantee the Securities of that Series, including the terms of subordination, if any, of such guarantees.

All Securities of any one Series need not be issued at the same time and may be issued from time to time, consistent with the terms of this Indenture, if so provided by or pursuant to the Board Resolution, supplemental indenture hereto or Officer’s Certificate referred to above.

Section 2.03Execution and Authentication.

An Officer shall sign the Securities for the Company by manual or facsimile signature.

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

A Security shall not be valid until authenticated by the manual or facsimile signature of the Trustee or an authenticating agent. The signature shall be conclusive evidence that the Security has been authenticated under this Indenture.

The Trustee shall at any time, and from time to time, authenticate Securities for original issue in the principal amount provided in the Board Resolution, supplemental indenture hereto or Officer’s Certificate, upon receipt by the Trustee of a Company Order. Each Security shall be dated the date of its authentication, unless otherwise provided by a Board Resolution, a supplemental indenture hereto or an Officer’s Certificate.

The aggregate principal amount of Securities of any Series outstanding at any time may not exceed any limit upon the maximum principal amount for such Series set forth in the Board 

- 8 -

 

 

Resolution, supplemental indenture hereto or Officer’s Certificate delivered pursuant to Section 2.02, except as provided in Section 2.08.

Prior to the issuance of Securities of any Series, the Trustee shall have received and (subject to Section 7.02) shall be fully protected in relying on: (a) the Board Resolution, supplemental indenture hereto or Officer’s Certificate establishing the form of the Securities of that Series or of Securities within that Series and the terms of the Securities of that Series or of Securities within that Series, (b) an Officer’s Certificate complying with Section 10.04, and (c) an Opinion of Counsel complying with Section 10.04.

The Trustee shall have the right to decline to authenticate and deliver any Securities of such Series: (a) if the Trustee, being advised by counsel, determines that such action may not be taken lawfully; or (b) if the Trustee in good faith by its board of directors or trustees, executive committee or a trust committee of directors and/or vice-presidents or a committee of Responsible Officers shall determine that such action would expose the Trustee to personal liability to Holders of any then outstanding Series of Securities.

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

Section 2.04Registrar, Paying Agent and Notice Agent.

The Company shall maintain, with respect to each Series of Securities, at the place or places specified with respect to such Series pursuant to Section 2.02, an office or agency where Securities of such Series may be presented or surrendered for payment (“Paying Agent”), where Securities of such Series may be surrendered for registration of transfer or exchange (“Registrar”) and where notices and demands to or upon the Company in respect of the Securities of such Series and this Indenture may be delivered (“Notice Agent”). The Registrar shall keep a register with respect to each Series of Securities and to their transfer and exchange. The Company will give prompt written notice to the Trustee of the name and address, and any change in the name or address, of each Registrar, Paying Agent or Notice Agent. If at any time the Company shall fail to maintain any such required Registrar, Paying Agent or Notice Agent or shall fail to furnish the Trustee with the name and address thereof, such presentations, surrenders, notices and demands may be made or served at the Corporate Trust Office of the Trustee, and the Company hereby appoints the Trustee as its agent to receive all such presentations, surrenders, notices and demands; provided, however, that any appointment of the Trustee or any office of the Trustee as the Notice Agent shall exclude the appointment of the Trustee or any office of the Trustee as an agent to receive service of legal process on the Company.

The Company may also from time to time designate one or more co-registrars, additional paying agents or additional notice agents and may from time to time rescind such designations; provided, however, that no such designation or rescission shall in any manner relieve the Company of its obligations to maintain a Registrar, Paying Agent and Notice Agent in each place 

- 9 -

 

 

so specified pursuant to Section 2.02 for Securities of any Series for such purposes. The Company will give prompt written notice to the Trustee of any such designation or rescission and of any change in the name or address of any such co-registrar, additional paying agent or additional notice agent. The term “Registrar” includes any co-registrar; the term “Paying Agent” includes any additional paying agent; and the term “Notice Agent” includes any additional notice agent. The Company or any of its Affiliates may serve as Registrar or Paying Agent.  

The Company hereby appoints the Trustee the initial Registrar, Paying Agent and Notice Agent for each Series unless another Registrar, Paying Agent or Notice Agent, as the case may be, is appointed prior to the time Securities of that Series are first issued.

Section 2.05Paying Agent to Hold Money in Trust.

The Company shall require each Paying Agent other than the Trustee to agree in writing that the Paying Agent will hold in trust, for the benefit of Securityholders of any Series of Securities, or the Trustee, all money held by the Paying Agent for the payment of principal of or interest on the Series of Securities, and will notify the Trustee in writing of any default by the Company in making any such payment. While any such default continues, the Trustee may require a Paying Agent to pay all money held by it to the Trustee. The Company at any time may require a Paying Agent to pay all money held by it to the Trustee. Upon payment over to the Trustee, the Paying Agent (if other than the Company or a Subsidiary of the Company) shall have no further liability for the money. If the Company or a Subsidiary of the Company acts as Paying Agent, it shall segregate and hold in a separate trust fund for the benefit of Securityholders of any Series of Securities all money held by it as Paying Agent. Upon any bankruptcy, reorganization or similar proceeding with respect to the Company, the Trustee shall serve as Paying Agent for the Securities.

Section 2.06Securityholder Lists.

The Trustee shall preserve in as current a form as is reasonably practicable the most recent list available to it of the names and addresses of Securityholders of each Series of Securities and shall otherwise comply with TIA § 312(a). If the Trustee is not the Registrar, the Company shall furnish to the Trustee at least ten (10) days before each interest payment date and at such other times as the Trustee may request in writing a list, in such form and as of such date as the Trustee may reasonably require, of the names and addresses of Securityholders of each Series of Securities.

Section 2.07Transfer and Exchange.

Subject to Section 2.14, where Securities of a Series are presented to the Registrar or a co-registrar with a request to register a transfer or to exchange them for an equal principal amount of Securities of the same Series, the Registrar shall register the transfer or make the exchange if its requirements for such transactions are met. To permit registrations of transfers and exchanges, the Trustee shall authenticate Securities at the Registrar’s request. No service charge shall be made for any registration of transfer or exchange (except as otherwise expressly permitted herein), 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 

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transfer tax or similar governmental charge payable upon exchanges pursuant to Sections 2.11, 3.06 or 9.06).

Neither the Company nor the Registrar shall be required (a) to issue, register the transfer of, or exchange Securities of any Series for the period beginning at the opening of business fifteen (15) days immediately preceding the sending of a notice of redemption of Securities of that Series selected for redemption and ending at the close of business on the day such notice is sent, or (b) to register the transfer of or exchange Securities of any Series selected, called or being called for redemption as a whole or the portion being redeemed of any such Securities selected, called or being called for redemption in part.

Section 2.08Mutilated, Destroyed, Lost and Stolen Securities.

If any mutilated Security is surrendered to the Trustee, the Company shall execute and the Trustee shall authenticate and deliver in exchange therefor a new Security of the same Series and of like tenor and principal amount and bearing a number not contemporaneously outstanding.

If there shall be delivered to the Company and the Trustee (i) evidence to their satisfaction of the destruction, loss or theft of any Security and (ii) such security or indemnity bond as may be required by each of them to hold itself and any of its agents harmless, then, in the absence of notice to the Company or the Trustee that such Security has been acquired by a bona fide purchaser, the Company shall execute and upon receipt of a Company Order the Trustee shall authenticate and make available for delivery, in lieu of any such destroyed, lost or stolen Security, a new Security of the same Series and of like tenor and principal amount and bearing a number not contemporaneously outstanding.

In case any such mutilated, destroyed, lost or stolen Security has become or is about to become due and payable, the Company in its discretion may, instead of issuing a new Security, pay such Security.

Upon the issuance of any new Security under this Section, the Company may require the payment of a sum sufficient to cover any tax or other governmental charge that may be imposed in relation thereto and any other expenses (including the fees and expenses of the Trustee) connected therewith.

Every new Security of any Series issued pursuant to this Section in lieu of any destroyed, lost or stolen Security shall constitute an original additional contractual obligation of the Company, whether or not the destroyed, lost or stolen Security shall be at any time enforceable by anyone, and shall be entitled to all the benefits of this Indenture equally and proportionately with any and all other Securities of that Series duly issued hereunder.

The provisions of this Section are exclusive and shall preclude (to the extent lawful) all other rights and remedies with respect to the replacement or payment of mutilated, destroyed, lost or stolen Securities.

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Section 2.09Outstanding Securities.

The Securities outstanding at any time are all the Securities authenticated by the Trustee except for those canceled by it, those delivered to it for cancellation, those reductions in the interest on a Global Security effected by the Trustee in accordance with the provisions hereof and those described in this Section as not outstanding.

If a Security is replaced pursuant to Section 2.08, it ceases to be outstanding until the Trustee receives proof satisfactory to it that the replaced Security is held by a bona fide purchaser.

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

The Company may purchase or otherwise acquire the Securities, whether by open market purchases, negotiated transactions or otherwise. A Security does not cease to be outstanding because the Company or an Affiliate of the Company holds the Security (but see Section 2.10 below).

In determining whether the Holders of the requisite principal amount of outstanding Securities have given any request, demand, authorization, direction, notice, consent or waiver hereunder, the principal amount of a Discount Security that shall be deemed to be outstanding for such purposes shall be the amount of the principal thereof that would be due and payable as of the date of such determination upon a declaration of acceleration of the Maturity thereof pursuant to Section 6.02.

Section 2.10Treasury Securities.

In determining whether the Holders of the required principal amount of Securities of a Series have concurred in any request, demand, authorization, direction, notice, consent or waiver, Securities of a Series owned by the Company or any Affiliate of the Company shall be disregarded, except that for the purposes of determining whether the Trustee shall be protected in relying on any such request, demand, authorization, direction, notice, consent or waiver only Securities of a Series that a Responsible Officer of the Trustee knows are so owned shall be so disregarded.

Section 2.11Temporary Securities.

Until definitive Securities are ready for delivery, the Company may prepare and the Trustee shall authenticate temporary Securities upon a Company Order. Temporary Securities shall be substantially in the form of definitive Securities but may have variations that the Company considers appropriate for temporary Securities. Without unreasonable delay, the Company shall prepare and the Trustee upon receipt of a Company Order shall authenticate definitive Securities of the same Series and date of maturity in exchange for temporary Securities. Until so exchanged, temporary securities shall have the same rights under this Indenture as the definitive Securities.

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Section 2.12Cancellation.

The Company at any time may deliver Securities to the Trustee for cancellation. The Registrar and the Paying Agent shall forward to the Trustee any Securities surrendered to them for registration of transfer, exchange or payment. The Trustee shall cancel all Securities surrendered for transfer, exchange, payment, replacement or cancellation and shall destroy such canceled Securities (subject to the record retention requirements of the Exchange Act and the Trustee) and deliver a certificate of such cancellation to the Company upon written request of the Company. The Company may not issue new Securities to replace Securities that it has paid or delivered to the Trustee for cancellation.

Section 2.13Defaulted Interest.

If the Company defaults in a payment of interest on a Series of Securities, it shall pay the defaulted interest, plus, to the extent permitted by law, any interest payable on the defaulted interest, to the persons who are Securityholders of the Series on a subsequent special record date. The Company shall fix the record date and payment date. At least ten (10) days before the special record date, the Company shall send to the Trustee and to each Securityholder of the Series a notice that states the special record date, the payment date and the amount of interest to be paid. The Company may pay defaulted interest in any other lawful manner.

Section 2.14Global Securities.

(a)Terms of Securities. A Board Resolution, a supplemental indenture hereto or an Officer’s Certificate shall establish whether the Securities of a Series shall be issued in whole or in part in the form of one or more Global Securities and the Depositary for such Global Security or Securities.

(b)Transfer and Exchange. Notwithstanding any provisions to the contrary contained in Section 2.07 of the Indenture and in addition thereto, any Global Security shall be exchangeable pursuant to Section 2.07 of the Indenture for Securities registered in the names of Holders other than the Depositary for such Security or its nominee only if (i) such Depositary notifies the Company that it is unwilling or unable to continue as Depositary for such Global Security or if at any time such Depositary ceases to be a clearing agency registered under the Exchange Act, and, in either case, the Company fails to appoint a successor Depositary registered as a clearing agency under the Exchange Act within ninety (90) days of such event or (ii) the Company executes and delivers to the Trustee an Officer’s Certificate to the effect that such Global Security shall be so exchangeable. Any Global Security that is exchangeable pursuant to the preceding sentence shall be exchangeable for Securities registered in such names as the Depositary shall direct in writing in an aggregate principal amount equal to the principal amount of the Global Security with like tenor and terms.

Except as provided in this Section (b), a Global Security may not be transferred except as a whole by the Depositary with respect to such Global Security to a nominee of such Depositary, by a nominee of such Depositary to such Depositary or another nominee of such Depositary or by the Depositary or any such nominee to a successor Depositary or a nominee of such a successor Depositary.

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(c)Legend. Any Global Security issued hereunder shall bear a legend in substantially the following form:

“This Security is a Global Security within the meaning of the Indenture hereinafter referred to and is registered in the name of the Depositary or a nominee of the Depositary. This Security is exchangeable for Securities registered in the name of a person other than the Depositary or its nominee only in the limited circumstances described in the Indenture, and may not be transferred except as a whole by the Depositary to a nominee of the Depositary, by a nominee of the Depositary to the Depositary or another nominee of the Depositary or by the Depositary or any such nominee to a successor Depositary or a nominee of such a successor Depositary.”

(d)Acts of Holders. The Depositary, as a Holder, may appoint agents and otherwise authorize participants to give or take any request, demand, authorization, direction, notice, consent, waiver or other action which a Holder is entitled to give or take under the Indenture.

(e)Payments. Notwithstanding the other provisions of this Indenture, unless otherwise specified as contemplated by Section 2.02, payment of the principal of and interest, if any, on any Global Security shall be made to the Holder thereof.

(f)Consents, Declaration and Directions. The Company, the Trustee and any Agent shall treat a person as the Holder of such principal amount of outstanding Securities of such Series represented by a Global Security as shall be specified in a written statement of the Depositary or by the applicable procedures of such Depositary with respect to such Global Security, for purposes of obtaining any consents, declarations, waivers or directions required to be given by the Holders pursuant to this Indenture.

Section 2.15CUSIP Numbers.

The Company in issuing the Securities may use “CUSIP” numbers (if then generally in use), and, if so, the Trustee shall use “CUSIP” numbers in notices of redemption as a convenience to Holders; provided that any such notice may state that no representation is made as to the correctness of such numbers either as printed on the Securities or as contained in any notice of a redemption and that reliance may be placed only on the other elements of identification printed on the Securities, and any such redemption shall not be affected by any defect in or omission of such numbers.

ARTICLE III
REDEMPTION

Section 3.01Notice to Trustee.

The Company may, with respect to any Series of Securities, reserve the right to redeem and pay the Series of Securities or may covenant to redeem and pay the Series of Securities or any part thereof prior to the Stated Maturity thereof at such time and on such terms as provided for in such Securities. If a Series of Securities is redeemable and the Company wants or is obligated to redeem prior to the Stated Maturity thereof all or part of the Series of Securities pursuant to the terms of such Securities, it shall notify the Trustee in writing of the redemption 

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date and the principal amount of Series of Securities to be redeemed. The Company shall give the notice at least fifteen (15) days before the redemption date.

Section 3.02Selection of Securities to be Redeemed.

Unless otherwise indicated for a particular Series by a Board Resolution, a supplemental indenture hereto or an Officer’s Certificate, if less than all the Securities of a Series are to be redeemed, the Trustee shall select the Securities of the Series to be redeemed in any manner that the Trustee deems fair and appropriate, including by lot or other method, unless otherwise required by law or applicable stock exchange requirements, subject, in the case of Global Securities, to the applicable rules and procedures of the Depositary. The Trustee shall make the selection from Securities of the Series outstanding not previously called for redemption. The Trustee may select for redemption portions of the principal of Securities of the Series that have denominations larger than $1,000. Securities of the Series and portions of them it selects shall be in amounts of $1,000 or whole multiples of $1,000 or, with respect to Securities of any Series issuable in other denominations pursuant to Section 2.02(j), the minimum principal denomination for each Series and the authorized integral multiples thereof. Provisions of this Indenture that apply to Securities of a Series called for redemption also apply to portions of Securities of that Series called for redemption.

Section 3.03Notice of Redemption.

Unless otherwise indicated for a particular Series by Board Resolution, a supplemental indenture hereto or an Officer’s Certificate, at least fifteen (15) days but not more than sixty (60) days before a redemption date, the Company shall send or cause to be sent by first-class mail or electronically, in accordance with the procedures of the Depositary, a notice of redemption to each Holder whose Securities are to be redeemed (except that a notice issued in connection with a redemption referred to in Article VIII may be issued more than sixty (60) days before a redemption date).

The notice shall identify the Securities of the Series to be redeemed and shall state:

(a)the redemption date;

(b)the redemption price;

(c)the name and address of the Paying Agent;

(d)if any Securities are being redeemed in part, the portion of the principal amount of such Securities to be redeemed and that, after the redemption date and upon surrender of such Security, a new Security or Securities in principal amount equal to the unredeemed portion of the original Security shall be issued in the name of the Holder thereof upon cancellation of the original Security;

(e)that Securities of the Series called for redemption must be surrendered to the Paying Agent to collect the redemption price;

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(f)that interest on Securities of the Series called for redemption ceases to accrue on and after the redemption date unless the Company defaults in the deposit of the redemption price;

(g)the CUSIP number, if any; and

(h)any other information as may be required by the terms of the particular Series or the Securities of a Series being redeemed.

At the Company’s request, the Trustee shall give the notice of redemption in the Company’s name and at its expense, provided, however, that the Company has delivered to the Trustee, at least ten (10) days (unless a shorter time shall be acceptable to the Trustee) prior to the notice date, an Officer’s Certificate requesting that the Trustee give such notice and setting forth the information to be stated in such notice.

Section 3.04Effect of Notice of Redemption.

Once notice of redemption is sent as provided in Section 3.03, Securities of a Series called for redemption become due and payable on the redemption date and at the redemption price. Except as otherwise provided in the Board Resolution, supplemental indenture or Officer’s Certificate for a Series, a notice of redemption may not be conditional. Upon surrender to the Paying Agent, such Securities shall be paid at the redemption price plus accrued interest to the redemption date.

Section 3.05Deposit of Redemption Price.

On or before 11:00 a.m., New York City time, on the redemption date, the Company shall deposit with the Paying Agent money sufficient to pay the redemption price of and accrued interest, if any, on all Securities to be redeemed on that date.

Section 3.06Securities Redeemed in Part.

Upon surrender of a Security that is redeemed in part, the Trustee shall authenticate for the Holder a new Security of the same Series and the same maturity equal in principal amount to the unredeemed portion of the Security surrendered.

ARTICLE IV
COVENANTS

Section 4.01Payment of Principal and Interest.

The Company covenants and agrees for the benefit of the Holders of each Series of Securities that it will duly and punctually pay the principal of and interest, if any, on the Securities of that Series in accordance with the terms of such Securities and this Indenture. On or before 11:00 a.m., New York City time, on the applicable payment date, the Company shall deposit with the Paying Agent money sufficient to pay the principal of and interest, if any, on the Securities of each Series in accordance with the terms of such Securities and this Indenture.

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Section 4.02SEC Reports.

To the extent any Securities of a Series are outstanding, the Company shall deliver to the Trustee within fifteen (15) days after it files them with the SEC copies of the annual reports and of the information, documents, and other reports (or copies of such portions of any of the foregoing as the SEC may by rules and regulations prescribe) which the Company is required to file with the SEC pursuant to Section 13 or 15(d) of the Exchange Act. The Company also shall comply with the other provisions of TIA § 314(a). Reports, information and documents filed with the SEC via the EDGAR system will be deemed to be delivered to the Trustee as of the time of such filing via EDGAR for purposes of this Section 4.02.

Delivery of reports, information and documents to the Trustee under this Section 4.02 are for informational purposes only and the Trustee’s receipt of the foregoing shall not constitute constructive or actual notice of any information contained therein or determinable from information contained therein, including the Company’s compliance with any of its covenants hereunder (as to which the Trustee is entitled to rely exclusively on Officer’s Certificates).

Section 4.03Compliance Certificate.

To the extent any Securities of a Series are outstanding, the Company shall deliver to the Trustee, within one hundred twenty (120) days after the end of each fiscal year of the Company, an Officer’s Certificate stating that a review of the activities of the Company and its Subsidiaries during the preceding fiscal year has been made under the supervision of the signing Officer(s) with a view to determining whether the Company has kept, observed, performed and fulfilled its obligations under this Indenture, and further stating, as to each such Officer signing such certificate, that to the best of his/her knowledge the Company has kept, observed, performed and fulfilled each and every covenant contained in this Indenture and is not in default in the performance or observance of any of the terms, provisions and conditions hereof (or, if a Default or Event of Default shall have occurred, describing all such Defaults or Events of Default of which the Officer may have knowledge).

Section 4.04Stay, Extension and Usury Laws.

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

Section 4.05Corporate Existence.

Subject to Article V, the Company will do or cause to be done all things necessary to preserve and keep in full force and effect its corporate existence and rights (charter and statutory); provided, however, that the Company shall not be required to preserve any such right if the Board of Directors shall determine that the preservation thereof is no longer desirable in 

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the conduct of the business of the Company and its Subsidiaries taken as a whole and that the loss thereof is not adverse in any material respect to the Holders.

ARTICLE V
SUCCESSORS

Section 5.01When Company May Merge, Etc.

The Company shall not consolidate with or merge with or into, or convey, transfer or lease all or substantially all of its properties and assets to, any person (a “successor person”) unless:

(a)the Company is the surviving corporation or the successor person (if other than the Company) is a corporation organized and validly existing under the laws of any U.S. domestic jurisdiction and expressly assumes the Company’s obligations on the Securities and under this Indenture; and

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

The Company shall deliver to the Trustee prior to the consummation of the proposed transaction an Officer’s Certificate to the foregoing effect and an Opinion of Counsel stating that the proposed transaction and any supplemental indenture comply with this Indenture.

Notwithstanding the above, any Subsidiary of the Company may consolidate with, merge into or transfer all or part of its properties to the Company. Neither an Officer’s Certificate nor an Opinion of Counsel shall be required to be delivered in connection therewith.

Section 5.02Successor Corporation Substituted.

Upon any consolidation or merger, or any sale, lease, conveyance or other disposition of all or substantially all of the assets of the Company in accordance with Section 5.01, the successor corporation formed by such consolidation or into or with which the Company is merged or to which such sale, lease, conveyance or other disposition is made shall succeed to, and be substituted for, and may exercise every right and power of, the Company under this Indenture with the same effect as if such successor person has been named as the Company herein; provided, however, that the predecessor Company in the case of a sale, conveyance or other disposition (other than a lease) shall be released from all obligations and covenants under this Indenture and the Securities.

ARTICLE VI
DEFAULTS AND REMEDIES

Section 6.01Events of Default.

“Event of Default,” wherever used herein with respect to Securities of any Series, means any one of the following events, unless in the establishing Board Resolution, supplemental 

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indenture or Officer’s Certificate, it is provided that such Series shall not have the benefit of said Event of Default:

(a)default in the payment of any interest on any Security of that Series when it becomes due and payable, and continuance of such default for a period of thirty (30) days (unless the entire amount of such payment is deposited by the Company with the Trustee or with a Paying Agent prior to 11:00 a.m., New York City time, on the 30th day of such period); or

(b)default in the payment of principal of any Security of that Series at its Maturity; or

(c)default in the performance or breach of any covenant or warranty of the Company in this Indenture (other than defaults pursuant to paragraphs (a) or (b) above or pursuant to a covenant or warranty that has been included in this Indenture solely for the benefit of any Series of Securities other than that Series), which default continues uncured for a period of sixty (60) days after there has been given, by registered or certified mail, to the Company by the Trustee or to the Company and the Trustee by the Holders of at least 25% in principal amount of the outstanding Securities of that Series a written notice specifying such default or breach and requiring it to be remedied and stating that such notice is a “Notice of Default” hereunder; or

(d)the Company pursuant to or within the meaning of any Bankruptcy Law:

(i)commences a voluntary case,

(ii)consents to the entry of an order for relief against it in an involuntary case,

(iii)consents to the appointment of a Custodian of it or for all or substantially all of its property,

(iv)makes a general assignment for the benefit of its creditors, or

(v)generally is unable to pay its debts as they become due; or

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

(i)is for relief against the Company in an involuntary case,

(ii)appoints a Custodian of the Company or for all or substantially all of its property, or

(iii)orders the liquidation of the Company,

and the order or decree remains unstayed and in effect for ninety (90) days; or

(f)any other Event of Default provided with respect to Securities of that Series, which is specified in a Board Resolution, a supplemental indenture hereto or an Officer’s Certificate, in accordance with Section 2.02(r).

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The term “Bankruptcy Law” means title 11, U.S. Code or any similar Federal or State law for the relief of debtors. The term “Custodian” means any receiver, trustee, assignee, liquidator or similar official under any Bankruptcy Law.

The Company will provide the Trustee written notice of any Default or Event of Default within 30 days of becoming aware of the occurrence of such Default or Event of Default, which notice will describe in reasonable detail the status of such Default or Event of Default and what action the Company is taking or proposes to take in respect thereof.

Section 6.02Acceleration of Maturity; Rescission and Annulment.

If an Event of Default with respect to Securities of any Series at the time outstanding occurs and is continuing (other than an Event of Default referred to in Section 6.01(d) or (e)) then in every such case the Trustee or the Holders of not less than 25% in principal amount of the outstanding Securities of that Series may declare the principal amount (or, if any Securities of that Series are Discount Securities, such portion of the principal amount as may be specified in the terms of such Securities) of and accrued and unpaid interest, if any, on all of the Securities of that Series to be due and payable immediately, by a notice in writing to the Company (and to the Trustee if given by Holders), and upon any such declaration such principal amount (or specified amount) and accrued and unpaid interest, if any, shall become immediately due and payable. If an Event of Default specified in Section 6.01(d) or (e) shall occur, the principal amount (or specified amount) of and accrued and unpaid interest, if any, on all outstanding Securities shall ipso facto become and be immediately due and payable without any declaration or other act on the part of the Trustee or any Holder.

At any time after such a declaration of acceleration with respect to any Series has been made and before a judgment or decree for payment of the money due has been obtained by the Trustee as hereinafter in this Article provided, the Holders of a majority in principal amount of the outstanding Securities of that Series, by written notice to the Company and the Trustee, may rescind and annul such declaration and its consequences if all Events of Default with respect to Securities of that Series, other than the non-payment of the principal and interest, if any, of Securities of that Series which have become due solely by such declaration of acceleration, have been cured or waived as provided in Section 6.13.

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

Section 6.03Collection of Indebtedness and Suits for Enforcement by Trustee.

The Company covenants that if

(a)default is made in the payment of any interest on any Security when such interest becomes due and payable and such default continues for a period of thirty (30) days, or

(b)default is made in the payment of principal of any Security at the Maturity thereof, or

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(c)default is made in the deposit of any sinking fund payment, if any, when and as due by the terms of a Security,

then, the Company will, upon demand of the Trustee, pay to it, for the benefit of the Holders of such Securities, the whole amount then due and payable on such Securities for principal and interest and, to the extent that payment of such interest shall be legally enforceable, interest on any overdue principal and any overdue interest at the rate or rates prescribed therefor in such Securities, and, in addition thereto, such further amount as shall be sufficient to cover the costs and expenses of collection, including the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and counsel.

If the Company fails to pay such amounts forthwith upon such demand, the Trustee, in its own name and as trustee of an express trust, may institute a judicial proceeding for the collection of the sums so due and unpaid, may prosecute such proceeding to judgment or final decree and may enforce the same against the Company or any other obligor upon such Securities and collect the moneys adjudged or deemed to be payable in the manner provided by law out of the property of the Company or any other obligor upon such Securities, wherever situated.

If an Event of Default with respect to any Securities of any Series occurs and is continuing, the Trustee may in its discretion proceed to protect and enforce its rights and the rights of the Holders of Securities of such Series by such appropriate judicial proceedings as the Trustee shall deem most effectual to protect and enforce any such rights, whether for the specific enforcement of any covenant or agreement in this Indenture or in aid of the exercise of any power granted herein, or to enforce any other proper remedy.

Section 6.04Trustee May File Proofs of Claim.

In case of the pendency of any receivership, insolvency, liquidation, bankruptcy, reorganization, arrangement, adjustment, composition or other judicial proceeding relative to the Company or any other obligor upon the Securities or the property of the Company or of such other obligor or their creditors, the Trustee (irrespective of whether the principal of the Securities shall then be due and payable as therein expressed or by declaration or otherwise and irrespective of whether the Trustee shall have made any demand on the Company for the payment of overdue principal or interest) shall be entitled and empowered, by intervention in such proceeding or otherwise,

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

(b)to collect and receive any moneys or other property payable or deliverable on any such claims and to distribute the same,

and any 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 

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to the Holders, to pay to the Trustee any amount due 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 7.07.

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

Section 6.05Trustee May Enforce Claims Without Possession of Securities.

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

Section 6.06Application of Money Collected.

Any money or property collected by the Trustee pursuant to this Article shall be applied in the following order, at the date or dates fixed by the Trustee and, in case of the distribution of such money or property on account of principal or interest, upon presentation of the Securities and the notation thereon of the payment if only partially paid and upon surrender thereof if fully paid:

First: To the payment of all amounts due the Trustee under Section 7.07; and

Second: To the payment of the amounts then due and unpaid for principal of and interest on the Securities in respect of which or for the benefit of which such money has been collected, ratably, without preference or priority of any kind, according to the amounts due and payable on such Securities for principal and interest, respectively; and

Third: To the Company.

Section 6.07Limitation on Suits.

No Holder of any Security of any Series shall have any right to institute any proceeding, judicial or otherwise, with respect to this Indenture, or for the appointment of a receiver or trustee, or for any other remedy hereunder, unless

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

(b)the Holders of not less than 25% in principal amount of the outstanding Securities of that Series shall have made written request to the Trustee to institute proceedings in respect of such Event of Default in its own name as Trustee hereunder;

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(c)such Holder or Holders have offered to the Trustee indemnity or security satisfactory to the Trustee against the costs, expenses and liabilities which might be incurred by the Trustee in compliance with such request;

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

(e)no direction inconsistent with such written request has been given to the Trustee during such sixty (60) day period by the Holders of a majority in principal amount of the outstanding Securities of that Series;

it being understood, intended and expressly covenanted by the Holder of every Security with every other Holder and the Trustee that no one or more of such Holders shall have any right in any manner whatever by virtue of, or by availing of, any provision of this Indenture to affect, disturb or prejudice the rights of any other of such Holders, or to obtain or to seek to obtain priority or preference over any other of such Holders or to enforce any right under this Indenture, except in the manner herein provided and for the equal and ratable benefit of all such Holders of the applicable Series.

Section 6.08Unconditional Right of Holders to Receive Principal and Interest.

Notwithstanding any other provision in this Indenture, the Holder of any Security shall have the right, which is absolute and unconditional, to receive payment of the principal of and interest, if any, on such Security on the Maturity of such Security, including the Stated Maturity expressed in such Security (or, in the case of redemption, on the redemption date) and to institute suit for the enforcement of any such payment, and such rights shall not be impaired without the consent of such Holder.

Section 6.09Restoration 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 Trustee and the Holders shall continue as though no such proceeding had been instituted.

Section 6.10Rights and Remedies Cumulative.

Except as otherwise provided with respect to the replacement or payment of mutilated, destroyed, lost or stolen Securities in Section 2.08, 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, to the extent permitted by law, prevent the concurrent assertion or employment of any other appropriate right or remedy.

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Section 6.11Delay or Omission Not Waiver.

No delay or omission of the Trustee or of any Holder of any Securities to exercise any right or remedy accruing upon any Event of Default shall impair any such right or remedy or constitute a waiver of any such Event of Default or an acquiescence therein. Every right and remedy given by this Article or by law to the Trustee or to the 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.

Section 6.12Control by Holders.

The Holders of a majority in principal amount of the outstanding Securities of any Series shall have the right to direct the time, method and place of conducting any proceeding for any remedy available to the Trustee, or exercising any trust or power conferred on the Trustee, with respect to the Securities of such Series, provided that

(a)such direction shall not be in conflict with any rule of law or with this Indenture,

(b)the Trustee may take any other action deemed proper by the Trustee which is not inconsistent with such direction,

(c)subject to the provisions of Section 7.01, the Trustee shall have the right to decline to follow any such direction if the Trustee in good faith shall, by a Responsible Officer of the Trustee, determine that the proceeding so directed would involve the Trustee in personal liability, and

(d)prior to taking any action as directed under this Section 6.12, the Trustee shall be entitled to indemnity satisfactory to it against the costs, expenses and liabilities which might be incurred by it in compliance with such request or direction.

Section 6.13Waiver of Past Defaults.

The Holders of not less than a majority in principal amount of the outstanding Securities of any Series may on behalf of the Holders of all the Securities of such Series waive any past Default hereunder with respect to such Series and its consequences, except a Default in the payment of the principal of or interest on any Security of such Series (provided, however, that the Holders of a majority in principal amount of the outstanding Securities of any Series may rescind an acceleration and its consequences, including any related payment default that resulted from such acceleration). Upon any such waiver, such Default shall cease to exist, and any Event of Default arising therefrom shall be deemed to have been cured, for every purpose of this Indenture; but no such waiver shall extend to any subsequent or other Default or impair any right consequent thereon.

Section 6.14Undertaking for Costs.

All parties to this Indenture agree, and each Holder of any Security by his acceptance thereof shall be deemed to have agreed, that any court may in its discretion require, in any suit for the enforcement of any right or remedy under this Indenture, or in any suit against the Trustee 

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for any action taken, suffered or omitted by it as Trustee, the filing by any party litigant in such suit of an undertaking to pay the costs of such suit, and that such court may in its discretion assess reasonable costs, including reasonable attorneys’ fees, against any party litigant in such suit, having due regard to the merits and good faith of the claims or defenses made by such party litigant; but the provisions of this Section shall not apply to any suit instituted by the Company, to any suit instituted by the Trustee, to any suit instituted by any Holder, or group of Holders, holding in the aggregate more than 10% in principal amount of the outstanding Securities of any Series, or to any suit instituted by any Holder for the enforcement of the payment of the principal of or interest on any Security on or after the Maturity of such Security, including the Stated Maturity expressed in such Security (or, in the case of redemption, on the redemption date).

ARTICLE VII
TRUSTEE

Section 7.01Duties of Trustee.

(a)If an Event of Default has occurred and is continuing, the Trustee shall exercise the rights and powers vested in it by this Indenture and use the same degree of care and skill in their exercise as a prudent person would exercise or use under the circumstances in the conduct of such person’s own affairs.

(b)Except during the continuance of an Event of Default:

(i)The Trustee need perform only those duties that are specifically set forth in this Indenture and no others.

(ii)In the absence of bad faith on its part, the Trustee may conclusively rely, as to the truth of the statements and the correctness of the opinions expressed therein, upon Officer’s Certificates or Opinions of Counsel furnished to the Trustee and conforming to the requirements of this Indenture; however, in the case of any such Officer’s Certificates or Opinions of Counsel which by any provisions hereof are specifically required to be furnished to the Trustee, the Trustee shall examine such Officer’s Certificates and Opinions of Counsel to determine whether or not they conform to the form requirements of this Indenture.

(c)The Trustee may not be relieved from liability for its own negligent action, its own negligent failure to act or its own willful misconduct, except that:

(i)This paragraph does not limit the effect of paragraph (b) of this Section.

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

(iii)The Trustee shall not be liable with respect to any action taken, suffered or omitted to be taken by it with respect to Securities of any Series in good faith in accordance with the direction of the Holders of a majority in principal amount of the outstanding Securities of such Series relating to the time, method and place of conducting 

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any proceeding for any remedy available to the Trustee, or exercising any trust or power conferred upon the Trustee, under this Indenture with respect to the Securities of such Series in accordance with Section 6.12.

(d)Every provision of this Indenture that in any way relates to the Trustee is subject to paragraph (a), (b) and (c) of this Section.

(e)The Trustee may refuse to perform any duty or exercise any right or power unless it receives indemnity satisfactory to it against the costs, expenses and liabilities which might be incurred by it in performing such duty or exercising such right or power.

(f)The Trustee shall not be liable for interest on any money received by it except as the Trustee may agree in writing with the Company. Money held in trust by the Trustee need not be segregated from other funds except to the extent required by law.

(g)No provision of this Indenture shall require the Trustee to risk its own funds or otherwise incur any financial liability in the performance of any of its duties, or in the exercise of any of its rights or powers, if adequate indemnity against such risk is not assured to the Trustee in its satisfaction.

(h)The Paying Agent, the Registrar and any authenticating agent shall be entitled to the protections and immunities as are set forth in paragraphs (e), (f) and (g) of this Section and in Section 7.02, each with respect to the Trustee.

Section 7.02Rights of Trustee.

(a)The Trustee may rely on and shall be protected in acting or refraining from acting upon any document (whether in its original or facsimile form) believed by it to be genuine and to have been signed or presented by the proper person. The Trustee need not investigate any fact or matter stated in the document.

(b)Before the Trustee acts or refrains from acting, it may require an Officer’s Certificate or an Opinion of Counsel or both. The Trustee shall not be liable for any action it takes or omits to take in good faith in reliance on such Officer’s Certificate or Opinion of Counsel.

(c)The Trustee may act through agents and shall not be responsible for the misconduct or negligence of any agent (other than an agent who is an employee of the Trustee) appointed with due care. No Depositary shall be deemed an agent of the Trustee and the Trustee shall not be responsible for any act or omission by any Depositary.

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

(e)The Trustee may consult with counsel and the advice of such counsel or any Opinion of Counsel shall be full and complete authorization and protection in respect of any 

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action taken, suffered or omitted by it hereunder without willful misconduct or negligence, and in reliance thereon.

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

(g)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.

(h)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 is received by the Trustee at the Corporate Trust Office of the Trustee, and such notice references the Securities generally or the Securities of a particular Series and this Indenture.

(i)In no event shall the Trustee be liable to any person for special, punitive, indirect, consequential or incidental loss or damage of any kind whatsoever (including but not limited to lost profits), even if the Trustee has been advised of the likelihood of such loss or damage.

(j)The permissive right of the Trustee to take the actions permitted by this Indenture shall not be construed as an obligation or duty to do so.

Section 7.03Individual Rights of Trustee.

The Trustee in its individual or any other capacity may become the owner or pledgee of Securities and may otherwise deal with the Company or an Affiliate of the Company with the same rights it would have if it were not Trustee. Any Agent may do the same with like rights. The Trustee is also subject to Sections 7.10 and 7.11.

Section 7.04Trustee’s Disclaimer.

The Trustee makes no representation as to the validity or adequacy of this Indenture or the Securities, it shall not be accountable for the Company’s use of the proceeds from the Securities, and it shall not be responsible for any statement in the Securities other than its authentication.

Section 7.05Notice of Defaults.

If a Default or Event of Default occurs and is continuing with respect to the Securities of any Series and if it is known to a Responsible Officer of the Trustee, the Trustee shall send to each Securityholder of the Securities of that Series notice of a Default or Event of Default within ninety (90) days after it occurs or, if later, after a Responsible Officer of the Trustee has 

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knowledge of such Default or Event of Default. Except in the case of a Default or Event of Default in payment of principal of or interest on any Security of any Series, the Trustee may withhold the notice if and so long as its corporate trust committee or a committee of its Responsible Officers in good faith determines that withholding the notice is in the interests of Securityholders of that Series.

Section 7.06Reports by Trustee to Holders.

Within sixty (60) days after [            ] in each year, the Trustee shall transmit by mail to all Securityholders, as their names and addresses appear on the register kept by the Registrar, a brief report dated as of such [            ], in accordance with, and to the extent required under, TIA § 313.  The Trustee shall also comply with TIA § 313(b), 313(c) and 313(d).

A copy of each report at the time of its mailing to Securityholders of any Series shall be filed with the SEC and each national securities exchange on which the Securities of that Series are listed. The Company shall promptly notify the Trustee in writing when Securities of any Series are listed on any national securities exchange.

Section 7.07Compensation and Indemnity.

The Company shall pay to the Trustee from time to time compensation for its services as the Company and the Trustee shall from time to time agree upon in writing. The Trustee’s compensation shall not be limited by any law on compensation of a trustee of an express trust. The Company shall reimburse the Trustee upon request for all reasonable out-of-pocket expenses incurred by it. Such expenses shall include the reasonable compensation and expenses of the Trustee’s agents and counsel.

The Company shall indemnify each of the Trustee and any predecessor Trustee (including for the cost of defending itself) against any cost, expense or liability, including taxes (other than taxes based upon, measured by or determined by the income of the Trustee) incurred by it except as set forth in the next paragraph in the performance of its duties under this Indenture as Trustee or Agent. 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 and to the extent that the Company is materially prejudiced thereby. The Company shall defend the claim and the Trustee shall cooperate in the defense. The Trustee may have one 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 will not be unreasonably withheld. This indemnification shall apply to officers, directors, employees, shareholders and agents of the Trustee.

The Company need not reimburse any expense or indemnify against any loss or liability incurred by the Trustee or by any officer, director, employee, shareholder or agent of the Trustee through willful misconduct or negligence.

To secure the Company’s payment obligations in this Section, the Trustee shall have a lien prior to the Securities of any Series on all money or property held or collected by the Trustee, except that held in trust to pay principal of and interest on particular Securities of that Series.

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When the Trustee incurs expenses or renders services after an Event of Default specified in Section 6.01(d) or (e) occurs, the expenses and the compensation for the services are intended to constitute expenses of administration under any Bankruptcy Law.

The provisions of this Section shall survive the termination of this Indenture.

Section 7.08Replacement of Trustee.

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

The Trustee may resign with respect to the Securities of one or more Series by so notifying the Company at least thirty (30) days prior to the date of the proposed resignation. The Holders of a majority in principal amount of the Securities of any Series may remove the Trustee with respect to that Series by so notifying the Trustee and the Company. The Company may remove the Trustee with respect to Securities of one or more Series if:

(a)the Trustee fails to comply with Section 7.10;

(b)the Trustee is adjudged a bankrupt or an insolvent or an order for relief is entered with respect to the Trustee under any Bankruptcy Law;

(c)a Custodian or public officer takes charge of the Trustee or its property; or

(d)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 then outstanding Securities may appoint a successor Trustee to replace the successor Trustee appointed by the Company.

If a successor Trustee with respect to the Securities of any one or more Series does not take office within sixty (60) days after the retiring Trustee resigns or is removed, the retiring Trustee, the Company or the Holders of at least a majority in principal amount of the Securities of the applicable Series may 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 that, the retiring Trustee shall transfer all property held by it as Trustee to the successor Trustee subject to the lien provided for in Section 7.07, the resignation or removal of the retiring Trustee shall become effective, and the successor Trustee shall have all the rights, powers and duties of the Trustee with respect to each Series of Securities for which it is acting as Trustee under this Indenture. A successor Trustee shall mail a notice of its succession to each Securityholder of each such Series. Notwithstanding replacement of the Trustee pursuant to this Section 7.08, the Company’s obligations under Section 7.07 hereof shall continue for the benefit of the retiring Trustee with respect to expenses and liabilities 

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incurred by it for actions taken or omitted to be taken in accordance with its rights, powers and duties under this Indenture prior to such replacement.

Section 7.09Successor Trustee by Merger, Etc.

If the Trustee consolidates with, merges or converts into, or transfers all or substantially all of its corporate trust business to, another corporation or entity, the successor corporation or entity without any further act shall be the successor Trustee, subject to Section 7.10.

Section 7.10Eligibility; Disqualification.

This Indenture shall always have a Trustee who satisfies the requirements of TIA § 310(a)(1), (2) and (5). The Trustee shall always have a combined capital and surplus of at least $25,000,000 as set forth in its most recent published annual report of condition. The Trustee shall comply with TIA § 310(b).

Section 7.11Preferential Collection of Claims Against Company.

The Trustee is subject to TIA § 311(a), excluding any creditor relationship listed in TIA § 311(b). A Trustee who has resigned or been removed shall be subject to TIA § 311(a) to the extent indicated.

ARTICLE VIII
SATISFACTION AND DISCHARGE; DEFEASANCE

Section 8.01Satisfaction and Discharge of Indenture.

This Indenture shall upon Company Order be discharged with respect to the Securities of any Series and cease to be of further effect as to all Securities of such Series (except as hereinafter provided in this Section 8.01), and the Trustee, at the expense of the Company, shall execute instruments acknowledging satisfaction and discharge of this Indenture, when

(a)either

(i)all Securities of such Series theretofore authenticated and delivered (other than Securities that have been destroyed, lost or stolen and that have been replaced or paid) have been delivered to the Trustee for cancellation; or

(ii)all such Securities of such Series not theretofore delivered to the Trustee for cancellation

(A)have become due and payable by reason of sending a notice of redemption or otherwise, or

(B)will become due and payable at their Stated Maturity within one year, or

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(C)have been called for redemption or are to be called for redemption within one year under arrangements satisfactory to the Trustee for the giving of notice of redemption by the Trustee in the name, and at the expense, of the Company, or

(D)are deemed paid and discharged pursuant to Section 8.03, as applicable;

and the Company, in the case of (A), (B) or (C) above, shall have irrevocably deposited or caused to be deposited with the Trustee as trust funds in trust an amount of money or U.S. Government Obligations sufficient for the purpose of paying and discharging each installment of principal (including mandatory sinking fund or analogous payments) of and interest on all the Securities of such Series on the dates such installments of principal or interest are due;

(b)the Company shall have paid or caused to be paid all other sums payable hereunder by the Company; and

(c)the Company shall have delivered to the Trustee an Officer’s Certificate and an Opinion of Counsel, each stating that all conditions precedent provided for relating to the satisfaction and discharge contemplated by this Section have been complied with.

Notwithstanding the satisfaction and discharge of this Indenture, the obligations of the Company to the Trustee under Section 7.07, and, if money shall have been deposited with the Trustee pursuant to clause (a) of this Section, the provisions of Sections 2.04, 2.05, 2.07, 2.08, 8.02 and 8.05 shall survive.

Section 8.02Application of Trust Funds; Indemnification.

(a)Subject to the provisions of Section 8.05, all money and U.S. Government Obligations or Foreign Government Obligations deposited with the Trustee pursuant to Section 8.01, Section 8.03 or Section 8.04 and all money received by the Trustee in respect of U.S. Government Obligations or Foreign Government Obligations deposited with the Trustee pursuant to Section 8.01, Section 8.03 or Section 8.04, shall be held in trust and applied by it, in accordance with the provisions of the Securities and this Indenture, to the payment, either directly or through any Paying Agent (including the Company acting as its own Paying Agent) as the Trustee may determine, to the persons entitled thereto, of the principal and interest for whose payment such money has been deposited with or received by the Trustee or to make mandatory sinking fund payments or analogous payments as contemplated by Section 8.01, Section 8.03 or Section 8.04.

(b)The Company shall pay and shall indemnify the Trustee against any tax, fee or other charge imposed on or assessed against U.S. Government Obligations or Foreign Government Obligations deposited pursuant to Section 8.01, Section 8.03 or Section 8.04 or the interest and principal received in respect of such obligations other than any payable by or on behalf of Holders.

(c)The Trustee shall deliver or pay to the Company from time to time upon Company Order any U.S. Government Obligations or Foreign Government Obligations or 

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money held by it as provided in Section 8.01, Section 8.03 or Section 8.04 which, in the opinion of a nationally recognized firm of independent certified public accountants or investment bank expressed in a written certification thereof delivered to the Trustee, are then in excess of the amount thereof which then would have been required to be deposited for the purpose for which such U.S. Government Obligations or Foreign Government Obligations or money were deposited or received. This provision shall not authorize the sale by the Trustee of any U.S. Government Obligations or Foreign Government Obligations held under this Indenture.

Section 8.03Legal Defeasance of Securities of any Series.

Unless this Section 8.03 is otherwise specified, pursuant to Section 2.02, to be inapplicable to Securities of any Series, the Company shall be deemed to have paid and discharged the entire indebtedness on all the outstanding Securities of any Series on the 91st day after the date of the deposit referred to in subparagraph (d) hereof, and the provisions of this Indenture, as it relates to such outstanding Securities of such Series, shall no longer be in effect (and the Trustee, at the expense of the Company, shall, upon receipt of a Company Order, execute instruments acknowledging the same), except as to:

(a)the rights of Holders of Securities of such Series to receive, from the trust funds described in subparagraph (d) hereof, (i) payment of the principal of and each installment of principal of and interest on the outstanding Securities of such Series on the Maturity of such principal or installment of principal or interest and (ii) the benefit of any mandatory sinking fund payments applicable to the Securities of such Series on the day on which such payments are due and payable in accordance with the terms of this Indenture and the Securities of such Series;

(b)the provisions of Sections 2.04, 2.05, 2.07, 2.08, 8.02, 8.03 and 8.05; and

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

provided that, the following conditions shall have been satisfied:

(d)the Company shall have irrevocably deposited or caused to be deposited (except as provided in Section 8.02(c)) with the Trustee as trust funds in trust for the purpose of making the following payments, specifically pledged as security for and dedicated solely to the benefit of the Holders of such Securities (i) in the case of Securities of such Series denominated in Dollars, cash in Dollars and/or U.S. Government Obligations, or (ii) in the case of Securities of such Series denominated in a Foreign Currency (other than a composite currency), money and/or Foreign Government Obligations, which through the payment of interest and principal in respect thereof in accordance with their terms, will provide (and without reinvestment and assuming no tax liability will be imposed on such Trustee), not later than one day before the due date of any payment of money, an amount in cash, sufficient, in the opinion of a nationally recognized firm of independent public accountants or investment bank expressed in a written certification thereof delivered to the Trustee, to pay and discharge each installment of principal of and interest, if any, on and any mandatory sinking fund payments in respect of all the Securities of such Series on the dates such installments of principal or interest and such sinking fund payments are due;

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(e)such deposit will not result in a breach or violation of, or constitute a default under, this Indenture or any other material agreement or instrument to which the Company is a party or by which it is bound;

(f)no Default or Event of Default with respect to the Securities of such Series shall have occurred and be continuing on the date of such deposit or during the period ending on the 91st day after such date;

(g)the Company shall have delivered to the Trustee an Officer’s Certificate and an Opinion of Counsel to the effect that (i) the Company has received from, or there has been published by, the Internal Revenue Service a ruling, or (ii) since the date of execution of this Indenture, there has been a change in the applicable Federal income tax law, in either case to the effect that, and based thereon such Opinion of Counsel shall confirm that, the Holders of the Securities of such Series will not recognize income, gain or loss for Federal income tax purposes as a result of such deposit, defeasance and discharge and will be subject to Federal income tax on the same amount and in the same manner and at the same times as would have been the case if such deposit, defeasance and discharge had not occurred;

(h)the Company shall have delivered to the Trustee an Officer’s Certificate stating that the deposit was not made by the Company with the intent of defeating, hindering, delaying or defrauding any other creditors of the Company; and

(i)the Company shall have delivered to the Trustee an Officer’s Certificate and an Opinion of Counsel, each stating that all conditions precedent provided for relating to the defeasance contemplated by this Section have been complied with.

Section 8.04Covenant Defeasance.

Unless this Section 8.04 is otherwise specified pursuant to Section 2.02 to be inapplicable to Securities of any Series, the Company may omit to comply with respect to the Securities of any Series with any term, provision or condition set forth under Sections 4.02, 4.03, 4.04, 4.05, and 5.01 and, unless otherwise specified therein, any additional covenants specified in a supplemental indenture for such Series of Securities or a Board Resolution or an Officer’s Certificate delivered pursuant to Section 2.02 (and the failure to comply with any such covenants shall not constitute a Default or Event of Default with respect to such Series under Section 6.01) and the occurrence of any event specified in a supplemental indenture for such Series of Securities or a Board Resolution or an Officer’s Certificate delivered pursuant to Section 2.02 and designated as an Event of Default shall not constitute a Default or Event of Default hereunder, with respect to the Securities of such Series, provided that the following conditions shall have been satisfied:

(a)with reference to this Section 8.04, the Company has irrevocably deposited or caused to be deposited (except as provided in Section 8.02(c)) with the Trustee as trust funds in trust for the purpose of making the following payments specifically pledged as security for, and dedicated solely to, the benefit of the Holders of such Securities (i) in the case of Securities of such Series denominated in Dollars, cash in Dollars and/or U.S. Government Obligations, or (ii) in the case of Securities of such Series denominated in a Foreign Currency (other than a 

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composite currency), money and/or Foreign Government Obligations, which through the payment of interest and principal in respect thereof in accordance with their terms, will provide (and without reinvestment and assuming no tax liability will be imposed on such Trustee), not later than one day before the due date of any payment of money, an amount in cash, sufficient, in the opinion of a nationally recognized firm of independent certified public accountants or investment bank expressed in a written certification thereof delivered to the Trustee, to pay and discharge each installment of principal (including mandatory sinking fund or analogous payments) of and interest, if any, on all the Securities of such Series on the dates such installments of principal or interest are due;

(b)such deposit will not result in a breach or violation of, or constitute a default under, this Indenture or any other material agreement or instrument to which the Company is a party or by which it is bound;

(c)no Default or Event of Default with respect to the Securities of such Series shall have occurred and be continuing on the date of such deposit;

(d)the Company shall have delivered to the Trustee an Opinion of Counsel to the effect that Holders of the Securities of such Series will not recognize income, gain or loss for federal income tax purposes as a result of such deposit and covenant defeasance and will be subject to federal income tax on the same amount and in the same manner and at the same times as would have been the case if such deposit and covenant defeasance had not occurred;

(e)the Company shall have delivered to the Trustee an Officer’s Certificate stating the deposit was not made by the Company with the intent of defeating, hindering, delaying or defrauding any other creditors of the Company; and

(f)the Company shall have delivered to the Trustee an Officer’s Certificate and an Opinion of Counsel, each stating that all conditions precedent herein provided for relating to the covenant defeasance contemplated by this Section have been complied with. 

Section 8.05Repayment to Company.

Subject to applicable abandoned property law, the Trustee and the Paying Agent shall pay to the Company upon request any money held by them for the payment of principal and interest that remains unclaimed for two years. After that, Securityholders entitled to the money must look to the Company for payment as general creditors unless an applicable abandoned property law designates another person.

Section 8.06Reinstatement.

If the Trustee or the Paying Agent is unable to apply any money deposited with respect to Securities of any Series in accordance with Section 8.01 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 obligations of the Company under this Indenture with respect to the Securities of such Series and under the Securities of such Series shall be revived and reinstated as though no deposit had occurred pursuant to Section 8.01 until such time as the Trustee or the Paying Agent is permitted to apply all such money in accordance with Section 

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8.01; provided, however, that if the Company has made any payment of principal of or interest on or any Additional Amounts with respect to any Securities because of the reinstatement of its obligations, the Company shall be subrogated to the rights of the Holders of such Securities to receive such payment from the money or U.S. Government Obligations held by the Trustee or Paying Agent.

ARTICLE IX
AMENDMENTS AND WAIVERS

Section 9.01Without Consent of Holders.

The Company and the Trustee may amend or supplement this Indenture or the Securities of one or more Series without the consent of any Securityholder:

(a)to cure any ambiguity, defect or inconsistency;

(b)to comply with Article V;

(c)to provide for uncertificated Securities in addition to or in place of certificated Securities;

(d)to add guarantees with respect to Securities of any Series or secure Securities of any Series;

(e)to surrender any of the Company’s rights or powers under this Indenture;

(f)to add covenants or events of default for the benefit of the holders of Securities of any Series;

(g)to comply with the applicable procedures of the applicable depositary;

(h)to make any change that does not adversely affect the rights of any Securityholder;

(i)to provide for the issuance of and establish the form and terms and conditions of Securities of any Series as permitted by this Indenture;

(j)to evidence and provide for the acceptance of appointment hereunder by a successor Trustee with respect to the Securities of one or more Series and to add to or change any of the provisions of this Indenture as shall be necessary to provide for or facilitate the administration of the trusts hereunder by more than one Trustee; or

(k)to comply with requirements of the SEC in order to effect or maintain the qualification of this Indenture under the TIA.

Section 9.02With Consent of Holders.

The Company and the Trustee may enter into a supplemental indenture with the written consent of the Holders of at least a majority in principal amount of the outstanding Securities of 

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each Series affected by such supplemental indenture (including consents obtained in connection with a tender offer or exchange offer for the Securities of such Series), for the purpose of adding any provisions to or changing in any manner or eliminating any of the provisions of this Indenture or of any supplemental indenture or of modifying in any manner the rights of the Securityholders of each such Series. Except as provided in Section 6.13, the Holders of at least a majority in principal amount of the outstanding Securities of any Series by notice to the Trustee (including consents obtained in connection with a tender offer or exchange offer for the Securities of such Series) may waive compliance by the Company with any provision of this Indenture or the Securities with respect to such Series.

It shall not be necessary for the consent of the Holders of Securities under this Section 9.02 to approve the particular form of any proposed supplemental indenture or waiver, but it shall be sufficient if such consent approves the substance thereof. After a supplemental indenture or waiver under this Section becomes effective, the Company shall send to the Holders of Securities affected thereby, a notice briefly describing the supplemental indenture or waiver. Any failure by the Company to send 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 9.03Limitations.

Without the consent of each Securityholder affected, an amendment or waiver may not:

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

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

(c)reduce the principal or change the Stated Maturity of any Security or reduce the amount of, or postpone the date fixed for, the payment of any sinking fund or analogous obligation;

(d)reduce the principal amount of Discount Securities payable upon acceleration of the maturity thereof;

(e)waive a Default or Event of Default in the payment of the principal of or interest, if any, on any Security (except a rescission of acceleration of the Securities of any Series by the Holders of at least a majority in principal amount of the outstanding Securities of such Series and a waiver of the payment default that resulted from such acceleration);

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

(g)make any change in Sections 6.08, 6.13 or 9.03 (this sentence); or

(h)waive a redemption payment with respect to any Security, provided that such redemption is made at the Company’s option.

- 36 -

 

 

Section 9.04Compliance with Trust Indenture Act.

Every amendment to this Indenture or the Securities of one or more Series shall be set forth in a supplemental indenture hereto that complies with the TIA as then in effect.

Section 9.05Revocation and Effect of Consents.

Until an amendment is set forth in a supplemental indenture or a waiver becomes effective, a consent to it by a Holder of a Security is a continuing consent by the Holder and every subsequent Holder of a Security or portion of a Security that evidences the same debt as the consenting Holder’s Security, even if notation of the consent is not made on any Security. However, any such Holder or subsequent Holder may revoke the consent as to his Security or portion of a Security if the Trustee receives the notice of revocation before the date of the supplemental indenture or the date the waiver becomes effective.

Any amendment or waiver once effective shall bind every Securityholder of each Series affected by such amendment or waiver unless it is of the type described in any of clauses (a) through (h) of Section 9.03. In that case, the amendment or waiver shall bind each Holder of a Security who has consented to it and every subsequent Holder of a Security or portion of a Security that evidences the same debt as the consenting Holder’s Security.

The Company may, but shall not be obligated to, fix a record date for the purpose of determining the Holders entitled to give their consent or take any other action described above or required or permitted to be taken pursuant to this Indenture. If a record date is fixed, then notwithstanding the second immediately preceding paragraph, those Persons who were Holders at such record date (or their duly designated proxies), and only those persons, shall be entitled to give such consent or to revoke any consent previously given or take any such action, whether or not such Persons continue to be Holders after such record date. No such consent shall be valid or effective for more than one hundred twenty (120) days after such record date.

Section 9.06Notation on or Exchange of Securities.

The Company or the Trustee may place an appropriate notation about an amendment or waiver on any Security of any Series thereafter authenticated. The Company in exchange for Securities of that Series may issue and the Trustee shall authenticate upon receipt of a Company Order in accordance with Section 2.03 new Securities of that Series that reflect the amendment or waiver.

Section 9.07Trustee Protected.

In executing, or accepting the additional trusts created by, any supplemental indenture permitted by this Article or the modifications thereby of the trusts created by this Indenture, the Trustee shall be entitled to receive, and (subject to Section 7.01) shall be fully protected in relying upon, an Officer’s Certificate or an Opinion of Counsel or both complying with Section 10.04. The Trustee shall sign all supplemental indentures upon delivery of such an Officer’s Certificate or Opinion of Counsel or both, except that the Trustee need not sign any supplemental indenture that adversely affects its rights under this Indenture.

- 37 -

 

 

ARTICLE X
MISCELLANEOUS

Section 10.01Trust Indenture Act Controls.

If any provision of this Indenture limits, qualifies or conflicts with another provision which is required or deemed to be included in this Indenture by the TIA, such required or deemed provision shall control.

Section 10.02Notices.

Any notice or communication by the Company or the Trustee to the other, or by a Holder to the Company or the Trustee, is duly given if in writing and delivered in person, by registered or certified mail (postage prepaid), by nationally recognized overnight courier service, by facsimile transmission (with confirmation of transmission), addressed as follows:

if to the Company:

Enanta Pharmaceuticals, Inc.

500 Arsenal Street

Watertown, MA 02472

Attention:  General Counsel

Telephone:  (617) 607-0800

Facsimile:  [            ]

 

with a copy (which shall not constitute notice) to:

Foley Hoag LLP

Seaport West

155 Seaport Boulevard

Boston, MA  02210

Attention:  Stacie S. Aarestad

Telephone: (617) 832-1000

Facsimile:  (617) 832-7000

 

if to the Trustee:

[            ]

Attention: [            ]

Telephone: [            ]

Facsimile:  [            ]

 

with a copy (which shall not constitute notice) to:

 

[            ]

Attention: [            ]

Telephone: [            ]

Facsimile:  [            ]

- 38 -

 

 

 

The Company or the Trustee by notice to the other may designate additional or different addresses for subsequent notices or communications.  Any notice or communication to the Company or the Trustee shall be deemed to have been given or made (except that a notice of change of address shall not be deemed to have been given or made until actually received by the addressee) on the earlier of (i) confirmation of receipt by the recipient and (ii) as of the date so delivered if delivered in person; when transmission is confirmed, if sent by facsimile transmission during normal business hours of the recipient, or, if not sent during normal business hours of the recipient, on the Business Day after the day transmission is confirmed; (iii) five (5) calendar days after mailing if sent by registered or certified mail, postage prepaid; or (iv) one (1) Business Day after deposit with a nationally recognized overnight courier service guaranteeing overnight delivery of such notice or communication.

Any notice or communication to a Securityholder shall be sent electronically or by first-class mail to his, her or its address shown on the register kept by the Registrar in accordance with the procedures of the Depositary. Failure to send a notice or communication to a Securityholder of any Series or any defect in it shall not affect its sufficiency with respect to other Securityholders of that or any other Series.

If a notice or communication is sent or published in the manner provided above, within the time prescribed, it is duly given, whether or not the Securityholder receives it.

If the Company sends a notice or communication to Securityholders, it shall send a copy to the Trustee and each Agent at the same time.

Notwithstanding any other provision of this Indenture or any Security, where this Indenture or any Security provides for notice of any event (including any notice of redemption) to a Holder of a Global Security (whether by mail or otherwise), such notice shall be sufficiently given to the Depositary for such Security (or its designee) pursuant to the customary procedures of such Depositary.

Section 10.03Communication by Holders with Other Holders.

Securityholders of any Series may communicate pursuant to TIA § 312(b) with other Securityholders of that Series or any other Series with respect to their rights under this Indenture or the Securities of that Series or all Series. The Company, the Trustee, the Registrar and anyone else shall have the protection of TIA § 312(c).

Section 10.04Certificate and Opinion as to Conditions Precedent.

Upon any request or application by the Company to the Trustee to take any action under this Indenture, the Company shall furnish to the Trustee, if requested by the Trustee:

(a)an Officer’s 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

- 39 -

 

 

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

Section 10.05Statements Required in Certificate or Opinion.

Each certificate or opinion with respect to compliance with a condition or covenant provided for in this Indenture (other than a certificate provided pursuant to TIA § 314(a)(4)) shall comply with the provisions of TIA § 314(e) and shall include:

(a)a statement that the person making such certificate or opinion has read such covenant or condition;

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

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

(d)a statement as to whether or not, in the opinion of such person, such condition or covenant has been complied with.

Section 10.06Rules by Trustee and Agents.

The Trustee may make reasonable rules for action by or a meeting of Securityholders of one or more Series. Any Agent may make reasonable rules and set reasonable requirements for its functions.

Section 10.07Legal Holidays.

Unless otherwise provided by a Board Resolution, an Officer’s Certificate or a supplemental indenture hereto for a particular Series, a “Legal Holiday” is any day that is not a Business Day. If a payment date is a Legal Holiday at a place of payment, payment may be made at that place on the next succeeding day that is not a Legal Holiday, and no interest shall accrue for the intervening period.

Section 10.08No Recourse Against Others.

A director, officer, employee or stockholder (past or present), as such, of the Company shall not have any liability for any obligations of the Company under the Securities or the Indenture or for any claim based on, in respect of or by reason of such obligations or their creation. Each Securityholder by accepting a Security waives and releases all such liability. The waiver and release are part of the consideration for the issue of the Securities.

Section 10.09Counterparts.

This Indenture may be executed in any number of counterparts and by the parties hereto in separate counterparts, each of which when so executed shall be deemed to be an original and 

- 40 -

 

 

all of which taken together shall constitute one and the same agreement.  The exchange of copies of this Indenture and of signature pages by facsimile or PDF transmission shall constitute effective execution and delivery of this Indenture as to the parties hereto and may be used in lieu of the original Indenture for all purposes. Signatures of the parties hereto transmitted by facsimile or PDF shall be deemed to be their original signatures for all purposes.

Section 10.10Governing Law.

THIS INDENTURE AND THE SECURITIES, INCLUDING ANY CLAIM OR CONTROVERSY ARISING OUT OF OR RELATING TO THE INDENTURE OR THE SECURITIES, SHALL BE GOVERNED BY THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO CONFLICT OF LAW PRINCIPLES THAT WOULD RESULT IN THE APPLICATION OF ANY LAW OTHER THAN THE LAW OF THE STATE OF NEW YORK.

Section 10.11No Adverse Interpretation of Other Agreements.

This Indenture may not be used to interpret another indenture, loan or debt agreement of the Company or a Subsidiary of the Company. Any such indenture, loan or debt agreement may not be used to interpret this Indenture.

Section 10.12Successors.

All agreements of the Company in this Indenture and the Securities shall bind its successor. All agreements of the Trustee in this Indenture shall bind its successor.

Section 10.13Severability.

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

Section 10.14Table of Contents, Headings, Etc.

The Table of Contents, Cross Reference Table, 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 or provisions hereof.

Section 10.15Securities in a Foreign Currency.

Unless otherwise specified in a Board Resolution, a supplemental indenture hereto or an Officer’s Certificate delivered pursuant to Section 2.02 of this Indenture with respect to a particular Series of Securities, whenever for purposes of this Indenture any action may be taken by the Holders of a specified percentage in aggregate principal amount of Securities of all Series or all Series affected by a particular action at the time outstanding and, at such time, there are outstanding Securities of any Series which are denominated in more than one currency, then the principal amount of Securities of such Series which shall be deemed to be outstanding for the purpose of taking such action shall be determined by converting any such other currency into a 

- 41 -

 

 

currency that is designated upon issuance of any particular Series of Securities. Unless otherwise specified in a Board Resolution, a supplemental indenture hereto or an Officer’s Certificate delivered pursuant to Section 2.02 of this Indenture with respect to a particular Series of Securities, such conversion shall be at the spot rate for the purchase of the designated currency as published in The Financial Times in the “Currency Rates” section (or, if The Financial Times is no longer published, or if such information is no longer available in The Financial Times, such source as may be selected in good faith by the Company) on any date of determination. The provisions of this paragraph shall apply in determining the equivalent principal amount in respect of Securities of a Series denominated in currency other than Dollars in connection with any action taken by Holders of Securities pursuant to the terms of this Indenture.

All decisions and determinations provided for in the preceding paragraph shall, in the absence of manifest error, to the extent permitted by law, be conclusive for all purposes and irrevocably binding upon the Trustee and all Holders.

Section 10.16Judgment Currency.

The Company agrees, to the fullest extent that it may effectively do so under applicable law, that (a) if for the purpose of obtaining judgment in any court it is necessary to convert the sum due in respect of the principal of or interest or other amount on the Securities of any Series (the “Required Currency”) into a currency in which a judgment will be rendered (the “Judgment Currency”), the rate of exchange used shall be the rate at which in accordance with normal banking procedures the Trustee could purchase in The City of New York the Required Currency with the Judgment Currency on the day on which final unappealable judgment is entered, unless such day is not a New York Banking Day, then the rate of exchange used shall be the rate at which in accordance with normal banking procedures the Trustee could purchase in The City of New York the Required Currency with the Judgment Currency on the New York Banking Day preceding the day on which final unappealable judgment is entered and (b) its obligations under this Indenture to make payments in the Required Currency (i) shall not be discharged or satisfied by any tender, any recovery pursuant to any judgment (whether or not entered in accordance with subsection (a)), in any currency other than the Required Currency, except to the extent that such tender or recovery shall result in the actual receipt, by the payee, of the full amount of the Required Currency expressed to be payable in respect of such payments, (ii) shall be enforceable as an alternative or additional cause of action for the purpose of recovering in the Required Currency the amount, if any, by which such actual receipt shall fall short of the full amount of the Required Currency so expressed to be payable, and (iii) shall not be affected by judgment being obtained for any other sum due under this Indenture. For purposes of the foregoing, “New York Banking Day” means any day except a Saturday, Sunday or a legal holiday in The City of New York on which banking institutions are authorized or required by law, regulation or executive order to close.

Section 10.17Force Majeure.

In no event shall the Trustee be responsible or liable for any failure or delay in the performance of its obligations hereunder arising out of or caused by, directly or indirectly, forces beyond its control, including, without limitation, strikes, work stoppages, accidents, acts of war or terrorism, civil or military disturbances, nuclear or natural catastrophes or acts of God, and 

- 42 -

 

 

interruptions, loss or malfunctions of utilities, communications or computer (software and hardware) services, it being understood that the Trustee shall use reasonable best efforts which are consistent with accepted practices in the banking industry to resume performance as soon as practicable under the circumstances.

ARTICLE XI
SINKING FUNDS

Section 11.01Applicability of Article.

The provisions of this Article shall be applicable to any sinking fund for the retirement of the Securities of a Series if so provided by the terms of such Securities pursuant to Section 2.02 and except as otherwise permitted or required by any form of Security of such Series issued pursuant to this Indenture.

The minimum amount of any sinking fund payment provided for by the terms of the Securities of any Series is herein referred to as a “mandatory sinking fund payment” and any other amount provided for by the terms of Securities of such Series is herein referred to as an “optional sinking fund payment.” If provided for by the terms of Securities of any Series, the cash amount of any sinking fund payment may be subject to reduction as provided in Section 11.02. Each sinking fund payment shall be applied to the redemption of Securities of any Series as provided for by the terms of the Securities of such Series.

Section 11.02Satisfaction of Sinking Fund Payments with Securities.

The Company may, in satisfaction of all or any part of any sinking fund payment with respect to the Securities of any Series to be made pursuant to the terms of such Securities (1) deliver outstanding Securities of such Series to which such sinking fund payment is applicable (other than any of such Securities previously called for mandatory sinking fund redemption) and (2) apply as credit Securities of such Series to which such sinking fund payment is applicable and which have been repurchased by the Company or redeemed either at the election of the Company pursuant to the terms of such Series of Securities (except pursuant to any mandatory sinking fund) or through the application of permitted optional sinking fund payments or other optional redemptions pursuant to the terms of such Securities, provided that such Securities have not been previously so credited. Such Securities shall be received by the Trustee, together with an Officer’s Certificate with respect thereto, not later than fifteen (15) days prior to the date on which the Trustee begins the process of selecting Securities for redemption, and shall be credited for such purpose by the Trustee at the price specified in such Securities for redemption through operation of the sinking fund and the amount of such sinking fund payment shall be reduced accordingly. If as a result of the delivery or credit of Securities in lieu of cash payments pursuant to this Section 11.02, the principal amount of Securities of such Series to be redeemed in order to exhaust the aforesaid cash payment shall be less than $100,000, the Trustee need not call Securities of such Series for redemption, except upon receipt of a Company Order that such action be taken, and such cash payment shall be held by the Trustee or a Paying Agent and applied to the next succeeding sinking fund payment, provided, however, that the Trustee or such Paying Agent shall from time to time upon receipt of a Company Order pay over and deliver to the Company any cash payment so being held by the Trustee or such Paying Agent upon delivery 

- 43 -

 

 

by the Company to the Trustee of Securities of that Series purchased by the Company having an unpaid principal amount equal to the cash payment required to be released to the Company.

Section 11.03Redemption of Securities for Sinking Fund.

Not less than forty-five (45) days (unless otherwise indicated in the Board Resolution, supplemental indenture hereto or Officer’s Certificate in respect of a particular Series of Securities) prior to each sinking fund payment date for any Series of Securities, the Company will deliver to the Trustee an Officer’s Certificate specifying the amount of the next ensuing mandatory sinking fund payment for that Series pursuant to the terms of that Series, the portion thereof, if any, which is to be satisfied by payment of cash and the portion thereof, if any, which is to be satisfied by delivering and crediting of Securities of that Series pursuant to Section 11.02, and the optional amount, if any, to be added in cash to the next ensuing mandatory sinking fund payment, and the Company shall thereupon be obligated to pay the amount therein specified. Not less than thirty (30) days (unless otherwise indicated in the Board Resolution, Officer’s Certificate or supplemental indenture in respect of a particular Series of Securities) before each such sinking fund payment date the Trustee shall select the Securities to be redeemed upon such sinking fund payment date in the manner specified in Section 3.02 and cause notice of the redemption thereof to be given in the name of and at the expense of the Company in the manner provided in Section 3.03. Such notice having been duly given, the redemption of such Securities shall be made upon the terms and in the manner stated in Sections 3.04, 3.05 and 3.06.

- 44 -

 

 

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

 

 

	
 
	
ENANTA PHARMACEUTICALS, INC.

	
 
	
 
	
 
	
 

	
 
	
By:
	
 
	
 

	
 
	
 
	
 
	
Name:

	
 
	
 
	
 
	
Its:

	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 

	
 
	
[            ], as Trustee

	
 
	
 
	
 
	
 

	
 
	
By:
	
 
	
 

	
 
	
 
	
 
	
Name:

	
 
	
 
	
 
	
Its:

	
 
	
 
	
 
	
Its:

 

 

 

- 45 -cei_ex101.htm

  
 EXHIBIT 10.1
  
  
  
  
  
  
 SHARE PURCHASE AGREEMENT
  
 Made as of August 6th, 2021
  
 By and Among:
  
 VIKING ENERGY GROUP, INC.
  
 – and –
  
 SIMMAX CORP.
  
 – and –
  
 REMORA EQ LP
  
 – and –
  
 SIMSON-MAXWELL LTD.
  
  
  
  
  
  
 	 
	
	

	 

  
 TABLE OF CONTENTS
  
 	 ARTICLE 1 INTERPRETATION
	  
	 5
	
	  
	 1.1
	 Definitions
	  
	 5
	  

	  
	 1.2
	 Gender and Number
	  
	 12
	  

	  
	 1.3
	 Entire Agreement
	  
	 12
	  

	  
	 1.4
	 Article and Section Headings
	  
	 13
	  

	  
	 1.5
	 Applicable Law
	  
	 13
	  

	  
	 1.6
	 Currency
	  
	 13
	  

	  
	 1.7
	 Accounting Terms
	  
	 13
	  

	  
	 1.8
	 Arm's Length
	  
	 13
	  

	  
	 1.9
	 Business Days
	  
	 13
	  

	  
	 1.10
	 Statutory Instruments
	  
	 13
	  

	  
	 1.11
	 Knowledge
	  
	 13
	  

	  
	 1.12
	 Materiality
	  
	 14
	  

	  
	 1.13
	 Schedules
	  
	 14
	  

	 ARTICLE 2 PURCHASE AND SALE OF SHARES
	  
	 15
	
	  
	 2.1
	 Purchase and Sale of Shares
	  
	 15
	  

	  
	 2.2
	 Payment of Purchase Price
	  
	 15
	  

	  
	 2.3
	 Adjustments to the Purchase Price
	  
	 15
	  

	  
	 2.4
	 Delivery of Certificates, etc.
	  
	 16
	  

	  
	 2.5
	 Satisfaction of Purchase Price
	  
	 16
	  

	  
	 2.6
	 Effective Date
	  
	 16
	  

	 ARTICLE 3 REPRESENTATIONS AND WARRANTIES
	  
	 16
	
	  
	 3.1
	 Representations and Warranties of Simmax and the Corporation
	  
	 16
	  

	  
	 3.2
	 Representations and Warranties of the Vendors
	  
	 35
	  

	  
	 3.3
	 Representations and Warranties of the Purchaser
	  
	 37
	  

	  
	 3.4
	 Commission
	  
	 38
	  

	  
	 3.5
	 Non-Waiver
	  
	 38
	  

	  
	 3.6
	 Nature and Survival of Representations and Warranties
	  
	 38
	  

	 ARTICLE 4 COVENANTS OF THE PARTIES
	  
	 39
	
	  
	 4.1
	 Delivery of Books and Records
	  
	 39
	  

	  
	 4.2
	 Workers' Compensation
	  
	 39
	  

	  
	 4.3
	 Confidentiality
	  
	 39
	  

	  
	 4.4
	 Consents Required in Contracts
	  
	 39
	  

	  
	 4.5
	 Investment Canada
	  
	 40
	  

	 ARTICLE 5 INDEMNIFICATION
	  
	 40
	
	  
	 5.1
	 Indemnification by Simmax and Corporation
	  
	 40
	  

	  
	 5.2
	 Indemnification by Remora
	  
	 41
	  

	  
	 5.3
	 Indemnification by Purchaser
	  
	 41
	  

	  
	 5.4
	 Claims by Third Parties
	  
	 42
	  

	  
	 5.5
	 Indemnification Sole Remedy
	  
	 43
	  

	  
	 5.6
	 Details of Claims
	  
	 43
	  

   
 	 
	2
	

	 

   
 	 ARTICLE 6 CLOSING CONDITIONS
	  
	 43
	
	  
	 6.1
	 Purchaser's Conditions
	  
	 43
	  

	  
	 6.2
	 Vendor's Conditions
	  
	 47
	  

	  
	 6.3
	 Failure to Satisfy Conditions
	  
	 48
	  

	  
	 6.4
	 Destruction or Expropriation
	  
	 48
	  

	 ARTICLE 7 CLOSING ARRANGEMENTS
	  
	 49
	
	  
	 7.1
	 Time and Place of Closing
	  
	 49
	  

	  
	 7.2
	 Closing Arrangements
	  
	 49
	  

	  
	 7.3
	 Tender
	  
	 49
	  

	 ARTICLE 8 NOTICES
	  
	 49
	
	  
	 8.1
	 Delivery of Notice
	  
	 49
	  

	 ARTICLE 9 GENERAL
	  
	 51
	
	  
	 9.1
	 Expenses
	  
	 51
	  

	  
	 9.2
	 Time
	  
	 51
	  

	  
	 9.3
	 Assignment/Successors and Assigns
	  
	 51
	  

	  
	 9.4
	 Further Assurances
	  
	 51
	  

	  
	 9.5
	 Public Notices
	  
	 51
	  

	  
	 9.6
	 Entire Agreement
	  
	 52
	  

	  
	 9.7
	 Amendment and Waiver
	  
	 52
	  

	  
	 9.8
	 Severability
	  
	 52
	  

	  
	 9.9
	 Counterparts and Electronic Execution
	  
	 52
	  

	 SCHEDULES
	  
	  
	  

   
 	 
	3
	

	 

  
 SHARE PURCHASE AGREEMENT
  
 THIS SHARE PURCHASE AGREEMENT is made as of the 6th day of August, 2021
  
 AMONG: 
  
 VIKING ENERGY GROUP, INC., a corporation organized and existing under the laws of the State of Nevada (the “Purchaser”) 
  
 – and –
  
 SIMMAX CORP., a corporation incorporated under the laws of Alberta (“Simmax”)
  
 – and –
  
 REMORA EQ LP, a limited partnership formed under the laws of the Province of Ontario, by its General Partner, Remora EQ GP Inc. (“Remora”)
  
 – and –
  
 SIMSON-MAXWELL LTD., a corporation continued under the laws of Canada (the “Corporation”)
  
 RECITALS: 
  
 WHEREAS immediately following an internal reorganization involving the Corporation and the Subsidiaries (as defined below) the authorized capital of the Corporation shall consist of an unlimited number of Class A Common Shares, an unlimited number of Class B Common Shares and an unlimited number of Class C Preferred Shares, of which 1,100 Class A Common Shares will be issued and outstanding as set out in Part 1 of Schedule A; 
  
 AND WHEREAS prior to the Closing Time (as defined below), Remora intends to subscribe for and the Corporation intends to issue from treasury 1,458 Class A Common Shares in the capital of the Corporation such that immediately prior to the Closing of the transactions contemplated by this Agreement, Simmax and Remora (each a “Vendor” and collectively, the “Vendors”) shall hold the number and class of shares in the capital of the Corporation as set out in Part 2 of Schedule A; 
  
 AND WHEREAS each Vendor has agreed to sell to the Purchaser and the Purchaser has agreed to purchase from each Vendor that certain number and class of shares in the capital of the Corporation as set out herein, subject to the terms and conditions of this Agreement; 
  
 	 
	4
	

	 

  
 NOW THEREFORE, in consideration of the premises and mutual agreements herein contained and of other good and valuable consideration (the receipt and sufficiency of which are acknowledged), the Parties agree as follows: 
  
 ARTICLE 1 
INTERPRETATION
  
 1.1 Definitions 
  
 Whenever used in this Agreement, unless there is something in the subject matter or context inconsistent therewith, the following words and terms shall have the following meanings: 
  
 	  
	 (a)
	 “2010 Unanimous Shareholders Agreement” means that certain unanimous shareholders agreement of the Corporation made and dated effective the 30th day of September, 2010;

	  
	  
	  

	  
	 (b)
	 “Accounts Receivable” means, subject to allowance for doubtful accounts, accounts receivable, bills receivable, trade accounts, book debts and insurance claims and any other amounts due to the Corporation recorded as receivable in the Books and Records;

	  
	  
	  

	  
	 (c) 
	 “Affiliate” shall have the meaning ascribed to it by the Business Corporations Act (Ontario) on the date hereof;

	  
	  
	  

	  
	 (d)
	 “Agreement” means this share purchase agreement and all instruments supplemental to or in amendment or confirmation of this share purchase agreement, and all references to this Agreement shall include the attached Schedules and “Article”, “Section”, “Subsection”, or “Paragraph” means and refers to the specified article, section, subsection, or paragraph of this share purchase agreement;

	  
	  
	  

	  
	 (e) 
	 “Articles” means the articles of incorporation of the Corporation, as amended from time to time;

	  
	  
	  

	  
	 (f) 
	 “Benefit Plans” means all retirement, bonus, stock purchase, profit sharing, stock option, deferred compensation, severance or termination pay, insurance, medical, hospital, dental, vision care, drug, sick leave, disability, salary continuation, legal benefits, unemployment benefits, vacation, incentive or other compensation or benefit plans, arrangements, agreements, programs, policies, practices or undertakings, whether oral or written, whatsoever, to which the Corporation is a party or bound by or in which the Employees participate or under which the Corporation has, or will have, any Liability under or, pursuant to which payments are made, or benefits are provided to, or an entitlement to payments or benefits may arise with respect to any Employee or any current or former employees, directors, officers, consultants or other Persons providing services to the Corporation of a kind normally provided by employees (or any spouses, dependants, survivors or beneficiaries of any such persons), excluding statutory plans;

  
 	 
	5
	

	 

  
 	  
	 (g)
	 “Books and Records” means books and records of the Corporation and each Subsidiary, including financial, corporate, operations and sales books, records, books of account, sales and purchase records, lists of suppliers and customers, business reports, plans and projections and all other documents, surveys, plans, files, records, assessments, correspondence, and other data and information, financial or otherwise, including all data and information in any form or media whatsoever and information and data applicable to the tax treatment of the assets, liabilities and Tax Returns;

	  
	  
	  

	  
	 (h) 
	 “Business” means the operations of the Corporation in providing custom and prefabricated power generation solutions and all operations related thereto, and includes the business and operations previously conducted by the Subsidiaries;

	  
	  
	  

	  
	 (i)
	 “Business Day” means any day, other than a Saturday, Sunday or any other day on which the principal chartered banks located in the City of Ottawa are not open for business during normal banking hours;

	  
	  
	  

	  
	 (j)
	 “Claims” includes claims, demands, complaints, actions, suits, causes of action, orders, assessments, award or reassessments, arbitrations, investigations, audits, proceedings, appeals, prosecutions, charges, judgments, debts, liabilities, expenses, costs, damages or losses, contingent or otherwise, professional fees, including reasonable fees of legal counsel, interest, penalties, amounts paid in settlement, and all costs incurred in investigating or pursuing any of the foregoing or any proceeding relating to any of the foregoing, but for greater certainty excluding indirect and consequential damages;

	  
	  
	  

	  
	 (k) 
	 “Class A Common Shares” means the Class A Common Shares in the capital of the Corporation;

	  
	  
	  

	  
	 (l) 
	 “Closing” means the completion of the sale to, and the purchase by the Purchaser of, the Purchased Shares and the completion of the transactions contemplated by this Agreement including the transfer and delivery of all documents of title to the Purchased Shares and the payment of the Purchase Price;

	  
	  
	  

	  
	 (m)
	 “Closing Date" means August 6, 2021, or such other date as the Parties may agree in writing as the date upon which the Closing shall take place;

	  
	  
	  

	  
	 (n) 
	 “Closing Documents” has the meaning ascribed in Article 6;

	  
	  
	  

	  
	 (o) 
	 “Closing Time” means 4:30 p.m. E.S.T. on the Closing Date or such other time on such date as the Parties may agree as the time at which the Closing shall take place;

   
 	 
	6
	

	 

  
 	  
	 (p) 
	 “Contractors and Sales Agents” means contractors and sales agents of the Corporation and/or any Subsidiary as set forth in Schedule 3.1(aa) of this Agreement;

	  
	  
	  

	  
	 (q)
	 “Contractor and Sales Agent Contracts” means Contracts whether oral or written, relating to a Contractor and Sales Agent, including any communication or practice relating to such Contractor and Sales Agent, which imposes any obligation on the Corporation;

	  
	  
	  

	  
	 (r)
	 “Contracts” means contracts, licences, leases, agreements, obligations, promises, undertakings, understandings, arrangements, documents, commitments, entitlements or engagements to which the Corporation and/or any Subsidiary is a party to or bound by or under which any such Party has, or will have, any Liability (in each case, whether written or oral, express or implied), and includes any quotations, orders or tenders which remain open for acceptance and warranties and guarantees, and includes Equipment Contracts, Employment Contracts, Contractor and Sales Agent Contracts, the Real Property Leases and Material Contracts, and each, a “Contract”;

	  
	  
	  

	  
	 (s) 
	 “Effective Date” means August 6, 2021;

	  
	  
	  

	  
	 (t)
	 “Employees” means employees of the Corporation as set forth in Schedule 3.1(aa) of this Agreement;

	  
	  
	  

	  
	 (u)
	 “Employment Contracts” means Contracts, other than Benefit Plans, whether oral or written, relating to an Employee, including any communication or practice relating to an Employee which imposes any obligation on the Corporation;

	  
	  
	  

	  
	 (v) 
	 “Encumbrances” means pledges, liens, charges, security interests, leases, title retention agreements, mortgages, restrictions, developments or similar agreements, easements, rights-of-way, options or adverse claims or encumbrances of any kind or character whatsoever or any rights or privileges capable of becoming any of the foregoing other than any restriction on the transfer of shares set out in the Articles and the 2010 Unanimous Shareholders Agreement;

	  
	  
	  

	  
	 (w)
	 “Environment” means the environment or natural environment as defined in any Environmental Laws and includes air, surface water, ground water, land surface, soil, subsurface strata, stream sediment, ambient air (including indoor air), plant and animal life and the environment in the workplace;

	  
	  
	  

	  
	 (x) 
	 “Environmental Approvals” means permits, certificates, licences, authorizations, consents, agreements, instructions, directions, registrations or approvals issued, granted, conferred or required by a Governmental Authority pursuant to an Environmental Law;

   
 	 
	7
	

	 

  
 	  
	 (y) 
	 “Environmental Laws” means those Laws relating to the Environment and includes any Laws relating to the storage, generation, use, handling, manufacture, processing, labelling, advertising, sale, display, transportation, treatment, reuse, recycling, Release and disposal of Hazardous Substances;

	  
	  
	  

	  
	 (z) 
	 “Equipment Contracts” means Contracts relating to Fixed Assets and includes motor vehicle leases, equipment leases, leases of computer hardware and computer systems, conditional sales contracts, title retention agreements and other similar agreements; 

	  
	  
	  

	  
	 (aa)
	 “Financial Statements” means, collectively, unless the context dictates otherwise: (1) the annual financial statements of the Corporation for the fiscal year ended on December 30, 2020, (2) the annual financial statements of MCBA for the fiscal year ended on December 30, 2020, and (3) the annual audited financial statements of SMP for the fiscal year ended on December 31, 2020;

	  
	  
	  

	  
	 (bb) 
	 “Fixed Assets” means the fixed assets owned, used or held by the Corporation and/or any Subsidiary, including diesel generators, uninterruptible power supplies, machinery, equipment, furniture, furnishings, office equipment, supplies, materials, vehicles material handling equipment, implements, parts, tools, spare parts and tangible assets (other than Inventories);

	  
	  
	  

	  
	 (cc)
	 “GAAP” has the meaning ascribed in Section 1.7;

	  
	  
	  

	  
	 (dd) 
	 “Governmental Authority” means any government, regulatory authority, governmental department, agency, commission, bureau, official, minister, Crown corporation, court, board, tribunal, dispute settlement panel or body or other law, rule or regulation-making entity: (a) having or purporting to have jurisdiction on behalf of any nation, province, state or other geographic or political subdivision thereof; or (b) exercising, or entitled or purporting to exercise any administrative, executive, judicial, legislative, policy, regulatory or taxing authority or power;

	  
	  
	  

	  
	 (ee) 
	 “Governmental Authorizations” means authorizations, approvals, including Environmental Approvals, orders, certificates, consents, directives, notices, licences, permits (including all necessary occupancy and electrical permits), variances, qualifications, bonds, registrations or similar rights issued to or required by the Corporation and/or any Subsidiary by or from any Governmental Authority;

	  
	  
	  

	  
	 (ff) 
	 “Hazardous Substances” means any substance, waste, liquid, gaseous or solid matter, radiation, energy or other matter regulated under any applicable Environmental Laws as hazardous waste, a pollutant, a deleterious substance, a contaminant or a source of pollution or contamination under any Environmental Law, alone or in any combination;

	  
	  
	  

	  
	 (gg)
	 “HST” means the Harmonized Sales Tax payable under the Excise Tax Act;

   
 	 
	8
	

	 

  
 	  
	 (hh)
	 “Information Technology” means all computer hardware, software in source code and object code form (including documentation, interfaces and development tools), websites for the Corporation and/or any Subsidiary, databases, telecommunications equipment and facilities and other information technology systems owned, used or held by the Corporation and/or any Subsidiary;

	  
	  
	  

	  
	 (ii) 
	 “Intellectual Property” means intellectual property rights, whether registered or not, owned, used or held by the Corporation and/or any Subsidiary, prior to dissolution or wind-up, including, without limitation: (a) inventions, pending patent applications (including divisionals, reissues, renewals, re-examinations, continuations, continuations-in-part and extensions) and issued patents, (b) trade-marks, trade dress, trade-names, business names and other indicia of origin, (c) copyrights including copyright registrations and applications, (d) industrial designs and similar rights, (e) trade-secrets and other rights in the nature of intellectual property, and (f) domain names;

	  
	  
	  

	  
	 (jj) 
	 “Inventories” means all inventories of every kind and nature and wheresoever situate owned by the Corporation and/or any Subsidiary and pertaining to the Business including, without limitation, all inventories of raw materials, work-in-progress, finished goods, operating supplies and packaging materials of or pertaining to the Business;

	  
	  
	  

	  
	 (kk) 
	 “Key Employees” means Daryl Kruper, Brad Kruper, Ryan Yamniuk, Brent Fisher and Santokh Sahota;

	  
	  
	  

	  
	 (ll) 
	 “Laws” means laws, including common law, statutes, by-laws, rules, regulations, reporting requirements, orders, ordinances, protocols, codes, guidelines, treaties, policies, notices, directions, decrees, judgments, awards or requirements, in each case of any Governmental Authority, and includes Environmental Laws;

	  
	  
	  

	  
	 (mm) 
	 “Leased Real Property” means lands and/or premises which are leased, subleased, licensed to or otherwise occupied by the Corporation and/or any Subsidiary and the interest therein in all improvements and appurtenances;

	  
	  
	  

	  
	 (nn) 
	 “Liabilities” means and includes any, direct or indirect, short-term or long-term, liability, indebtedness, obligation, claim, deficiency, guarantee or commitment of any nature or kind, absolute or contingent, accrued or unaccrued, liquidated or unliquidated, or due or to become due;

	  
	  
	  

	  
	 (oo)
	 “Material” and “Materiality” have the meanings ascribed thereto in Section 1.12;

   
 	 
	9
	

	 

  
 	  
	 (pp) 
	 “Material Adverse Effect” means a result, change, fact, event, effect or circumstance that, when considered either individually or in the aggregate, is materially adverse to, or could reasonably be expected to have a Material adverse effect on the condition (financial or otherwise), results or operations of business, operations or assets (Fixed Assets or otherwise) of the Corporation and/or any Subsidiary, including for certainty any Material adverse change to (i) the Business, (ii) the operations, (iii) the property or assets (Fixed Assets or otherwise), (iv) the Liabilities, (v) the financial condition, and/or (vi) the results of operations (including revenue, earnings or cash flow), but excluding (A) those that fall below the thresholds of Materiality, as the case may be, set out in Section 1.12; and (B) those resulting from industry-wide conditions or general economic conditions affecting the industry in which the business of the Corporation is carried on;

	  
	  
	  

	  
	 (qq)
	 “Material Contract” means any Contract (i) involving aggregate payments to or by the Corporation in excess of $200,000.00, (ii) involving rights or obligations of the Corporation that may reasonably extend beyond one year and which does not terminate or cannot be terminated without penalty on less than three months’ notice, (iii) which is outside the ordinary course of business, (iv) which restricts in any way the business or activities of the Corporation, or (v) which, if terminated without the consent of the Corporation, would reasonably be expected to have a Material Adverse Effect on the Corporation;

	  
	  
	  

	  
	 (rr) 
	 “MCBA” means M.C. Brown Agencies Ltd.;

	  
	  
	  

	  
	 (ss) 
	 “Parties” means the Vendors, the Purchaser and the Corporation, collectively, and “Party” means any one of them;

	  
	  
	  

	  
	 (tt)
	 “Person” includes an individual, corporation, partnership, joint venture, trust, unincorporated organization, the Crown or any agency or instrumentality thereof or any other juridical entity;

	  
	  
	  

	  
	 (uu) 
	 “Personal Information” means the information regulated by Privacy Laws and collected, used, disclosed or retained by the Corporation and/or any Subsidiary, prior to dissolution or wind-up;

	  
	  
	  

	  
	 (vv)
	 “Privacy Laws” means all applicable law governing the collection, use, disclosure and retention of information relating to an identifiable individual including, without limitation, the Personal Information Protection and Electronic Documents Act (Canada);

	  
	  
	  

	  
	 (ww)
	 “Purchase Price” means the purchase price to be paid by the Purchaser to the Vendors (or as directed by the Vendors) for the Purchased Shares as provided in Section 2.2, as may be adjusted pursuant to this Agreement;

	  
	  
	  

	  
	 (xx)
	 “Purchased Shares” means the Class A Common Shares to be sold by the Vendors and purchased by the Purchaser as set out in Section 2.1.

	  
	  
	  

	  
	 (yy)
	 “Real Property Leases” means Contracts pursuant to which the Corporation and/or any Subsidiary uses or occupies any Leased Real Property;

   
 	 
	10
	

	 

  
 	  
	 (zz) 
	 “Release” has the meaning prescribed in any Environmental Laws and includes, any sudden, intermittent or gradual release, spill, leak, pumping, addition, pouring, emission, emptying, discharge, injection, escape, leaching, disposal, dumping, deposit, spraying, burial, abandonment, incineration, seepage, placement or introduction, whether accidental or intentional;

	  
	  
	  

	  
	 (aaa)
	 “Remora Purchased Shares” has the meaning ascribed thereto in Section 2.1(b);

	  
	  
	  

	  
	 (bbb) 
	 “Remora Subscription Agreement” means the subscription by Remora for 1,458 Class A Common Shares for an aggregate purchase price of three million dollars ($3,000,000) (the “Remora Consideration”) to be completed before the Closing;

	  
	  
	  

	  
	 (ccc) 
	 “Simmax Purchased Shares” has the meaning ascribed thereto in Section 2.1(a);

	  
	  
	  

	  
	 (ddd) 
	 “SMP” means the Simson-Maxwell general partnership;

	  
	  
	  

	  
	 (eee) 
	 “Subsidiaries” means MCBA and SMP, and each, a “Subsidiary”;

	  
	  
	  

	  
	 (fff) 
	 “Tax Returns” includes all returns, reports, declarations, elections, notices, filings, forms, statements and other documents (whether in tangible, electronic or other form) and including any amendments, schedules, attachments, supplements, appendices and exhibits thereto, made, prepared, filed or required to be made, prepared or filed by Law in respect of Taxes;

	  
	  
	  

	  
	 (ggg)
	 “Taxes” includes any taxes, duties, fees, premiums, assessments, reassessments, imposts, levies and other charges of any kind whatsoever imposed by any Governmental Authority, including all interest, penalties, fines, additions to tax or other additional amounts imposed by any Governmental Authority in respect thereof, and including those levied on, or measured by, or referred to as, income, gross receipts, profits, capital, transfer, land transfer, sales, goods and services, harmonized sales, use, value-added, excise, stamp, withholding, business, franchising, property, development, occupancy, employer health, payroll, employment, health, social services, education and social security taxes, all surtaxes, all customs duties and import and export taxes, countervail and anti-dumping, all licence, franchise and registration fees and all employment insurance, health insurance and Canada, Québec and other government pension plan premiums or contributions;

   
 	 
	11
	

	 

   
 	  
	 (hhh)
	 “Technical Information” means all know-how and related technical knowledge possessed by the Corporation and/or any Subsidiary, prior to dissolution or wind-up, in order to carry on the Business, including, without limitation: trade secrets, confidential information and other proprietary know-how, public information and non-proprietary know-how, information of a scientific, technical, financial or business nature regardless of its form including technical information relating to processes, methodology, development and methods, research, forecasts, studies, market data, demonstration or engineering work, information that can be used to define a design or process or procure, produce, support or operate material and equipment, methods of production and procedures, all formulas and designs and drawings, blueprints, patterns, plans, flow charts, parts lists, manuals and records, specifications, and test data;

	  
	  
	  

	  
	 (iii)
	 “Technology” means all Intellectual Property, Technical Information and Information Technology;

	  
	  
	  

	  
	 (jjj) 
	 “Unanimous Shareholders’ Agreement” means that certain unanimous shareholders agreement to be entered into by and among the Corporation, the Vendors, the Purchaser and all other shareholders of the Corporation, as applicable, on the Closing Date in form and substance acceptable to the Purchaser; and

	  
	  
	  

	  
	 (kkk) 
	 “Viking Subscription Agreement” means that certain subscription agreement entered into between the Purchaser and the Corporation dated August ___, 2021 and effective as of August ___, 2021 pursuant to which the Purchaser has agreed to subscribe for and the Corporation has agreed to issue the Purchaser 1,462 Class A Common Shares subject to the terms and conditions therein.

   
 1.2 Gender and Number 
  
 In this Agreement, words importing the singular include the plural and vice versa and words importing gender include all genders. 
  
 1.3 Entire Agreement 
  
 This Agreement, the Remora Subscription Agreement, the Viking Subscription Agreement and the Unanimous Shareholders Agreement of the Corporation, including appended Schedules, together with the agreements and other documents to be delivered under this Agreement constitute the entire agreement between the Parties pertaining to the subject matter of this Agreement and supersede all prior agreements, understandings, negotiations and discussions, whether oral or written, of the Parties and there are no warranties, representations or other agreements between the Parties in connection with the subject matter of this Agreement except as specifically set forth in this Agreement. No supplement, modification or amendment to this Agreement and no waiver of any provision of this Agreement shall be binding on any Party unless executed by such Party in writing. No waiver of any of the provisions of this Agreement shall be deemed or shall constitute a waiver of any other provision (whether or not similar) nor shall such waiver constitute a continuing waiver unless otherwise expressly provided. 
  
 	 
	12
	

	 

   
 1.4 Article and Section Headings 
  
 Article and Section headings contained in this Agreement are included solely for convenience, are not intended to be full or accurate descriptions of the content of any Article or Section and shall not be considered to be part of this Agreement. 
  
 1.5 Applicable Law 
  
 This Agreement shall be governed by and construed in accordance with the laws of the Province of Ontario and the federal laws of Canada applicable in the Province of Ontario and shall be treated, in all respects, as an Ontario contract. 
  
 1.6 Currency 
  
 Unless otherwise indicated, all dollar amounts referred to in this Agreement are in Canadian funds. 
  
 1.7 Accounting Terms 
  
 All accounting terms not otherwise defined have the meanings assigned to them, and all calculations are to be made and all financial data to be submitted are to be prepared, in accordance with the Accounting Standards for Private Enterprises in Canada (“GAAP”) approved from time to time by the Accounting Standards Board of Financial Reporting & Assurance Standards Canada, or any successor institute applied on a consistent basis. 
  
 1.8 Arm's Length 
  
 For purposes of this Agreement, Persons are not dealing “at arm's length” with one another if they would not be dealing at arm's length with one another for purposes of the Income Tax Act. 
  
 1.9 Business Days 
  
 Whenever any action or payment to be taken or made under this Agreement shall be stated to be required to be taken or made on a day other than a Business Day, any payment shall be made or such action shall be taken on the next succeeding Business Day. 
  
 1.10 Statutory Instruments 
  
 Unless otherwise specifically provided in this Agreement any reference in this Agreement to any law, by-law, rule, regulation, order, act or statute of any government, governmental body or other regulatory body shall be construed as a reference to those as amended or re-enacted from time to time or as a reference to any successor to those. 
  
 1.11 Knowledge
  
 Where any representation, warranty or other statement in this Agreement is expressed to be made by a Vendor or the Corporation “to its knowledge” or is otherwise expressed to be limited in scope to matters known by any such Party or of which any such Party is aware, it shall mean such knowledge as is actually known to, or which should have come to the attention to, after making reasonable inquiries, of the Key Employees.
  
 	 
	13
	

	 

  
 1.12 Materiality 
  
 In this Agreement “Material” means, when used as an adjective, that any breach, default or deficiency in the satisfaction of any covenant, representation or warranty so described might reasonably: 
  
 	  
	 (a)
	 give rise to an aggregate remedial cost (including consequential loss and loss of profit) of more than $200,000.00, in any individual instance, or more than $200,000.00 collectively in any greater number of instances, where all such instances arise pursuant to multiple breaches of the same covenant, representation or warranty; or

	  
	  
	  

	  
	 (b) 
	 where no adequate remedy is reasonably available, result in disturbance in the ordinary conduct of the Business of an aggregate cost properly attributable to such disturbance (including consequential loss and loss of profit) of more than $200,000.00;

	  
	  
	  

	  
	 and “Materially” shall have the corresponding meaning. 

   
 1.13 Schedules
  
 The following Schedules are attached to and form part of this Agreement:
  
 	  
	 (a)
	 Schedule A 
	Ownership of Shares
	  
	 (b)
	 Schedule 2.2 
	Allocation of Purchase Price
	  
	 (c) 
	 Schedule 2.3 
	Adjustment to Purchase Price
	  
	 (d) 
	 Schedule 3.1(b) 
	Registration
	  
	 (e) 
	 Schedule 3.1(g) 
	Title to Assets, Sufficiency and Condition of Assets
	  
	 (f) 
	 Schedule 3.1(k) 
	Governmental Authorizations
	  
	 (g) 
	 Schedule 3.1(l) 
	Financial Statements
	  
	 (h) 
	 Schedule 3.1(m) 
	Indebtedness
	  
	 (i) 
	 Schedule 3.1(n) 
	Absence of Changes and Unusual Transactions
	  
	 (j) 
	 Schedule 3.1(q) 
	Major Suppliers and Customers
	  
	 (k) 
	 Schedule 3.1(s) 
	Collectability of Accounts Receivable
	  
	 (l) 
	 Schedule 3.1(v) 
	Technology
	  
	 (m) 
	 Schedule 3.1(w) 
	Equipment Contracts
	  
	 (n) 
	 Schedule 3.1(x) 
	Material Contracts
	  
	 (o) 
	 Schedule 3.1(z) 
	Leased Real Property
	  
	 (p) 
	 Schedule 3.1(aa) 
	Employment Matters
	  
	 (q) 
	 Schedule 3.1(bb) 
	Insurance
	  
	 (r) 
	 Schedule 3.1(cc) 
	Environmental Matters
	  
	 (s) 
	 Schedule 3.1(dd) 
	Personal Information

  
 	 
	14
	

	 

  
 	  
	 (t) 
	 Schedule 3.1(ee) 
	Litigation
	  
	 (u) 
	 Schedule 3.1(ff) 
	Tax Matters
	  
	 (v) 
	 Schedule 3.1(ii) 
	Warranties
	  
	 (w) 
	 Schedule 3.1(jj) 
	Bank Accounts
	  
	 (x) 
	 Schedule 3.1(kk) 
	Powers of Attorney

   
 ARTICLE 2 
PURCHASE AND SALE OF SHARES 
  
 2.1 Purchase and Sale of Shares 
  
 Subject to the terms and conditions of this Agreement, at the Closing Time:
  
 	  
	 (a) 
	 Simmax shall sell to the Purchaser and the Purchaser shall purchase from Simmax 419 Class A Common Shares in the capital of the Corporation (the “Simmax Purchased Shares”); and

	  
	  
	  

	  
	 (b) 
	 Remora shall sell to the Purchaser and the Purchaser shall purchase from Remora 555 Class A Common Shares in the capital of the Corporation (the “Remora Purchased Shares”).

   
 2.2 Payment of Purchase Price 
  
 The Parties agree that the Purchase Price, subject to the adjustments provided in this Agreement, is three million nine hundred ninety eight thousand forty five dollars ($3,998,045.00), to be allocated in accordance with Schedule 2.2 and satisfied in accordance with Section 2.5. 
  
 2.3 Adjustments to the Purchase Price
  
 The Parties agree that the Purchase Price shall be decreased by an amount equal to the aggregate sum of the following obligations of the Corporation, all of which are set out more particularly in Schedule 2.3, whether such obligations are payable prior to, on or following the Closing Date:
  
 	  
	 (a) 
	all retention bonuses or other such payments or compensation;
	  
	  
	  

	  
	 (b)
	all change of control bonuses or other such payments or compensation; and
	  
	  
	  

	  
	 (c) 
	all transaction bonuses, commissions or fees;
	  
	  
	  

	  
	 payable to any officer, director, Employee or contractor of the Corporation as a result of or in any manner triggered by the transactions contemplated by this Agreement, the Remora Subscription Agreement and/or the Viking Subscription Agreement.

  
 	 
	15
	

	 

   
 2.4 Delivery of Certificates, etc. 
  
 Each Vendor shall transfer and deliver to the Purchaser at the Closing Time, one or more share certificates representing such Vendor’s Purchased Shares duly endorsed in blank for transfer, or accompanied by irrevocable security transfer powers of attorney duly executed in blank, and shall cause the Corporation to enter the Purchaser or its nominee(s) on the books of the Corporation as the holder of such Purchased Shares and to issue one or more share certificates to the Purchaser or its nominee(s) representing such Purchased Shares. 
  
 2.5 Satisfaction of Purchase Price 
  
 Subject to the terms and conditions of this Agreement, at the Closing Time the Purchaser shall deliver by bank draft or wire transfer of immediately available funds to each Vendor, or as it may otherwise direct, its applicable pro rata share of the Purchase Price.
  
 2.6 Effective Date
  
 The purchase and sale contemplated under this Agreement shall, when completed on the Closing Date, take effect as of 2:00 pm on the Effective Date. From the Closing until the Effective Date, the Business of the Corporation shall be carried on by the Vendors in the ordinary course for the account of the Vendors. 
  
 ARTICLE 3 
REPRESENTATIONS AND WARRANTIES 
  
 3.1 Representations and Warranties of Simmax and the Corporation
  
 Simmax and the Corporation, severally and jointly, hereby represent, warrant, and covenant to the Purchaser as follows and acknowledge that the Purchaser is relying on the following representations, warranties, and covenants in entering into this Agreement and completing the transactions contemplated by it:
  
 	  
	 (a) 
	 Incorporation and Organization. The Corporation is a corporation duly incorporated and validly existing under the laws of Canada and has all necessary corporate power, authority and capacity to own its assets and to carry on the Business as presently conducted. A true copy of the Articles and all by-laws of the Corporation has been delivered to the Purchaser by the Vendors on or before the date of this Agreement. Such Articles and by-laws will constitute all of the constating documents and by-laws of the Corporation in effect as of the Closing Date, and are complete, correct, and in full force and effect.

	  
	  
	  

	  
	 (b) 
	 Registration. Neither the nature of the Business nor the location or character of the assets owned or leased by the Corporation requires it to be registered, licensed or otherwise qualified as an extra-provincial or foreign corporation or partnership in any jurisdiction other than in those jurisdictions set out in Schedule 3.1(b) where the Corporation is already duly registered, licensed or otherwise qualified for such purpose. Except as set out in Schedule 3.1(b), neither the Corporation nor any Subsidiary has or had ever operated under any previous corporate, partnership or trade names.

  
 	 
	16
	

	 

  
 	  
	 (c) 
	 Due Authorization and Enforceability of Obligations. The Corporation has all necessary corporate or comparable organizational power, authority, and capacity to enter into this Agreement and to carry out its obligations under this Agreement. The execution and delivery of this Agreement and the consummation of the transactions contemplated hereunder has been duly authorized by all necessary corporate action of the Corporation. This Agreement has been duly executed and delivered by the Corporation and, assuming due authorization, execution and delivery by the other parties hereto, represents the legal, valid and binding obligation of the Corporation, enforceable against such parties in accordance with its terms, subject to the effect of (A) applicable bankruptcy, insolvency, reorganization, moratorium and other similar Laws now and hereafter in effect relating to the rights of creditors generally and (B) rules of law and equity governing specific performance, injunctive relief and other equitable remedies. No further authorizing action on the part of the Corporation is or will be required in connection with the consummation of the transactions contemplated hereby.

	  
	  
	  

	  
	 (d) 
	 Authorized and Issued Capital. The authorized and issued share capital of the Corporation is as set forth in Schedule 3.1(d). Other than as set forth in Schedule 3.1(d), there are no contracts, options, warrants or other rights to purchase shares or other securities of the Corporation, and no securities or obligations convertible into or exchangeable for shares or other securities of the Corporation have been authorized or agreed to be issued or are outstanding. All of the Purchased Shares have been duly and validly issued and are outstanding as fully paid and non-assessable shares. The Corporation has, since the date of its incorporation, complied with all applicable securities laws in connection with the issuance and offering of the Purchased Shares. Except as listed in Schedule 3.1(d), there are no restrictions on the transfer of the Shares, except those set forth in the Articles and the 2010 Unanimous Shareholders Agreement; and there are no shareholder agreements, pooling agreements, voting trusts or other similar agreements with respect to the ownership or voting of any of the shares in the capital stock of the Corporation.

	  
	  
	  

	  
	 (e) 
	 Subsidiaries. 

  
 	  
	  
	 (i) 
	 Except for the Subsidiaries, the Corporation has not owned or had any interest in any shares or had an ownership, partnership or joint venture interest in any other Person since November 4, 2002.

	  
	  
	  
	  

	  
	  
	 (ii) 
	 Effective as of August ___, 2021, M.C. Brown Agencies Ltd. has been duly dissolved in accordance with the laws of the Province of British Columbia; its assets as reflected in the Financial Statements have been assigned, transferred or otherwise disposed of to the Corporation or for the benefit of the Corporation, its Liabilities have been discharged, satisfied or otherwise retired; and all Contracts and Government Authorizations that pertain to the Business and to which it was a party, prior to its dissolution, have been assigned or otherwise transferred to the Corporation.

    
 	 
	17
	

	 

  
 	  
	  
	 (iii) 
	 Effective as of August ___, 2021, Simson-Maxwell (partnership) has been wound-up in accordance with the laws of the Province of British Columbia; its assets as reflected in the Financial Statements have been assigned, transferred or otherwise disposed of to the Corporation or for the benefit of the Corporation, its Liabilities have been discharged, satisfied or otherwise retired; and all Contracts and Government Authorizations that pertain to the Business and to which it was a party, prior to its winding up, have been assigned or otherwise transferred to the Corporation.

  
 	  
	 (f) 
	 Bankruptcy. No bankruptcy, insolvency or receivership proceedings have been instituted or are pending against the Corporation and/or any Subsidiary and the Corporation is able to satisfy its liabilities as they become due.

	  
	  
	  

	  
	 (g) 
	 Title to Assets, Sufficiency and Condition of Assets. Other than as set out in Schedule 3.1(g), the Corporation is the sole legal and beneficial and (where its interests are registrable) the sole registered owner of all of its assets and interests in its assets, with good and valid title, free and clear of all Encumbrances. There has been no assignment, subletting or granting of any licence (of occupation or otherwise) of or in respect of any of the Corporation’s assets or any granting of any Contract or right capable of becoming an agreement or option for the purchase of any of such assets other than pursuant to the provisions of, or as disclosed in, this Agreement. The assets of the Corporation (i) constitute all of the assets, of any nature whatsoever, necessary to operate the Business as a whole in the manner presently conducted by the Corporation; (ii) are in compliance with all applicable Laws, and (iii) are sufficient for the continued conduct of the Business as a whole after the Closing Date in substantially the same manner as conducted prior to the Closing Date. Schedule 3.1(g) sets out a complete list and description of all of the Fixed Assets of the Corporation and each Subsidiary, all of which assets are in good condition, repair and (where applicable) proper working order, having regard to their respective use and age, normal wear and tear excepted, and such assets have been properly and regularly maintained.

	  
	  
	  

	  
	 (h) 
	 Location of Assets. Schedule 3.1(h) sets out the locations at which all material tangible assets of the Corporation used in or in connection with the Business are situated.

  
 	 
	18
	

	 

  
 	  
	 (i) 
	 Absence of Conflicting Agreements. The Corporation is not a party to, bound or affected by or subject to any: (a) Contract; (b) charter or by-law; (c) Laws or Governmental Authorizations; or (d) order, judgment or decree, that would be violated, breached by, or under which default would occur or an Encumbrance would, or with notice or the passage of time would, be created as a result of the execution and delivery of, or the performance of the obligations or transactions under this Agreement.

	  
	  
	  

	  
	 (j) 
	 Contractual and Regulatory Approvals. Except as specified in Schedule 3.1(j), the Corporation is not under any legally binding obligation, contractual or otherwise, to request or obtain the consent of or to give notice to any Person, and no approval, order, consent of or filing with any Governmental Authority is required on the part of the Corporation: (a) in connection with the execution, delivery or performance by the Corporation of this Agreement; (b) to avoid the loss of any necessary and Governmental Authorization held by the Corporation; or (c) in order that the Purchaser may carry on the Business in the ordinary course and in substantially the same manner as presently conducted by the Corporation as of and following the Closing.

	  
	  
	  

	  
	 (k) 
	 Governmental Authorizations. Schedule 3.1(k) sets forth a complete list of the Governmental Authorizations and such Governmental Authorizations are all the authorizations required by the Corporation to enable it to carry on its business in compliance with all Laws. The Governmental Authorizations are in full force and effect in accordance with their terms, and no event has occurred or circumstance exists that (with or without notice or lapse of time) may constitute or result in a violation of any such Governmental Authorization or give rise to an obligation on the part of the Corporation to undertake or bear any cost of remedial action. No proceedings are pending or, to the knowledge of Simmax or the Corporation, threatened, which could result in their revocation or limitation and all steps have been taken and filings made on a timely basis with respect to each Governmental Authorization and its renewal.

	  
	  
	  

	  
	 (l) 
	 Financial Statements. The Financial Statements, attached as Schedule 3.1(l) hereto, have been prepared in accordance with GAAP applied on a basis consistent with that of the preceding period and are complete and present fairly: (a) all of the assets, liabilities and financial position of the Corporation and for MCBA as at December 30, 2020 respectively, and for SMP, as at December 31, 2020; and (b) the sales, revenues, earnings, results of operation and changes in financial position of the Corporation and MCBA for the twelve-month period ended on December 30, 2020 respectively, and SMP, for the twelve-month period ended on December 31, 2020.

	  
	  
	  

	  
	 (m) 
	 Indebtedness. Except as disclosed on Schedule 3.1(m), the Corporation is not indebted to any third party, including without limitation, pursuant to any loan agreement, credit facility, promissory note or any other debt instrument.

   
 	 
	19
	

	 

  
 	  
	 (n) 
	 Absence of Changes and Unusual Transactions. Except as set forth on Schedule 3.1(n), since the date of the Financial Statements:

  
 	  
	  
	 (i) 
	 there has not been any change in the financial condition, operations, methods of operation, working capital, assets, employment levels, employment policies or practices, or the prospects of the Corporation other than changes in the ordinary course of business, none of which, individually or in the aggregate, has, or with the giving of notice or passage of time, would result in a Material Adverse Effect to the Corporation;

	  
	  
	  
	  

	  
	  
	 (ii)
	 there has not been any damage, destruction, loss or other event, development or condition of any character (whether or not covered by insurance) that would result in a Material Adverse Effect to the Corporation;

	  
	  
	  
	  

	  
	  
	 (iii)
	 the Corporation has not, nor had any Subsidiary, except in connection with its dissolution or wind-up, as the case may be, and for the benefit of the Corporation in any event, transferred, assigned, sold or otherwise disposed of any of the assets shown or reflected in the Financial Statements or cancelled any debts or entitlements except, in each case, in the ordinary course of business;

	  
	  
	  
	  

	  
	  
	 (iv) 
	 the Corporation has not amended or changed or taken any action to amend or change its Articles or by-laws;

	  
	  
	  
	  

	  
	  
	 (v)
	 the Corporation has not, nor had any Subsidiary, prior to its dissolution or wind-up, acquired any technology assets, businesses or companies;

	  
	  
	  
	  

	  
	  
	 (vi) 
	 the Corporation has not, nor had any Subsidiary, prior to its dissolution or wind-up, made any capital expenditure, except in the usual and ordinary course of business, and no capital expenditure will be made or authorized after the date of this Agreement by the Corporation with respect to the Business without the prior written consent of the Purchaser;

	  
	  
	  
	  

	  
	  
	 (vii) 
	 the Corporation has not incurred or assumed any obligation or Liability, except unsecured current obligations and Liabilities incurred in the ordinary course of business with arm’s length Persons, which individually or in the aggregate would result in a Material Adverse Effect to the Corporation;

	  
	  
	  
	  

	  
	  
	 (viii)
	 the Corporation has not discharged or satisfied any Encumbrance, or paid any obligation or Liability other than Liabilities included in the Financial Statements and Liabilities incurred since the date of such Financial Statements in the ordinary course of business;

  
 	 
	20
	

	 

  
 	  
	  
	 (ix) 
	 the Corporation has not, nor had any Subsidiary, prior to its dissolution or wind-up, suffered any unusual or extraordinary loss, waived or omitted to take any action in respect of any rights, or entered into any commitment or transaction not in the ordinary course of business;

	  
	  
	  
	  

	  
	  
	 (x) 
	 the Corporation has not, nor had any Subsidiary, prior to its dissolution or wind-up, granted any bonuses, whether monetary or otherwise, or made any general wage or salary increases, or any long-term residual commission or future commission obligations in respect of its Employees, or changed the terms of employment for any Employee or entered into a written contract with any Employee or hired any employee;

	  
	  
	  
	  

	  
	  
	 (xi)
	 the Corporation has not created or permitted to exist any Encumbrance affecting any of its assets or property except in the ordinary course of business;

	  
	  
	  
	  

	  
	  
	 (xii)
	 the Corporation has not, nor had any Subsidiary prior to its dissolution or wind-up, directly or indirectly, engaged in any transaction, made any loan or entered into any arrangement with any officer, director, partner, shareholder, Employee or employee (whether current or former or retired), consultant, independent contractor or agent of the Corporation and/or any Subsidiary;

	  
	  
	  
	  

	  
	  
	 (xiii) 
	 the Corporation has not, nor had any Subsidiary, prior to its dissolution or wind-up, licensed any of its Technology outside the ordinary course of business;

	  
	  
	  
	  

	  
	  
	 (xiv)
	 the Corporation has not, nor had any Subsidiary, prior to its dissolution or wind-up, changed the manner of billing of, or the credit lines made available to, any of its customers, nor has any such Party accepted any customer order or entered into any Contract with any customer at prices or on terms which are not consistent with its historical margins or terms or based on the past experience of such entity and current and anticipated costs, are or could reasonably be expected to result in a Material loss to such entity;

	  
	  
	  
	  

	  
	  
	 (xv) 
	 the Corporation has not, nor had any Subsidiary prior to its dissolution or wind-up, issued or sold any shares, partnership units, warrants, bonds, debentures, or equity securities convertible, exercisable or exchangeable for shares or partnership units in the capital of the Corporation and/or any Subsidiary;

	  
	  
	  
	  

	  
	  
	 (xvi) 
	 the Corporation has not, nor had any Subsidiary prior to its dissolution or wind-up, directly or indirectly, declared or paid any dividends or declared or made any other payments or distributions on or in respect of any of its shares or partnership units and/or directly or indirectly, purchased or otherwise acquired any of its shares or partnership units, as the case may be; and

   
 	 
	21
	

	 

  
 	  
	  
	 (xvii)
	 the Corporation has not, nor had any Subsidiary prior to its dissolution or wind-up, agreed or otherwise become committed to do any of the foregoing.

  
 	  
	 (o) 
	 Non-Arm’s Length Transactions. Except for employment and/or contractor arrangements entered into in the ordinary course of business and disclosed pursuant to Section 3.1(aa), no current or former director, officer, shareholder, Employee, Affiliate or any other Person not dealing at arm’s length with the Corporation is engaged in any agreement, transaction or arrangement (oral or written), or has any indebtedness, Liability or obligation to, the Corporation, nor does the Corporation have any Liability or obligation to any such Persons.

	  
	  
	  

	  
	 (p) 
	 Absence of Guarantees. Except as set out in Schedule 3.1(p), the Corporation has not, nor had any Subsidiary prior to its dissolution or wind-up, given or agreed to give, nor is a party to or bound by, any guarantee, surety or indemnity in respect of any Liability, or other obligations, of any Person, or any other commitment by which the Corporation and/or any Subsidiary is, or is contingently, responsible for such Liabilities or other obligations.

	  
	  
	  

	  
	 (q) 
	 Major Suppliers and Customers. Schedule 3.1(q) sets out a comprehensive listing of each Material supplier of goods and services to, and each customer of, the Corporation and each Subsidiary, together with, in each case, the amount so billed or paid in the year preceding the Closing. In respect of the Corporation, other than as set out in Schedule 3.1(q), since the date of the Financial Statements, there has been no termination or modification or change in the business relationship with any such supplier or customer. To the knowledge of the Corporation, no Material supplier or customer has any intention to change its relationship or the terms upon which it conducts business with the Corporation.

	  
	  
	  

	  
	 (r) 
	 Inventories. All Inventories are valued on the books of the Corporation at the lower of cost and net realizable value. The Inventories are in good and merchantable condition and are usable or saleable in the ordinary course of business for the purposes for which they are intended. Inventories have been maintained at the amounts required for the operations of the Corporation and each Subsidiary, prior to dissolution or wind-up, respectively, as previously conducted and such Inventory levels are adequate for such operations.

	  
	  
	  

	  
	 (s) 
	 Collectability of Accounts Receivable. The Accounts Receivable are good and collectible at the aggregate recorded amounts, except to the extent of any reserves and allowances for doubtful accounts taken in accordance with GAAP and provided for such Accounts Receivable in the Books and Records or as set forth on Schedule 3.1(s), and are not subject to any defence, counterclaim or set off.

   
 	 
	22
	

	 

  
 	  
	 (t) 
	 Government Grants. Except as set forth in Schedule 3.1(t): (i) there are no Contracts relating to grants or other forms of assistance including loans with interest at below market rates, received by the Corporation and/or any Subsidiary, prior to dissolution or wind-up, from any Governmental Authority; and (ii) the Corporation has not, nor had any Subsidiary, prior to dissolution or wind-up, received any monies or other form of assistance from any Governmental Authority pursuant to any Contract.

	  
	  
	  

	  
	 (u) 
	 Compliance with Laws. The operations of the Corporation and each Subsidiary, respectively, have been and with respect to the Corporation are now conducted in compliance with all Laws of each jurisdiction in which the Corporation and each Subsidiary carries on or has carried on business and the Corporation has not, nor had any Subsidiary, prior to dissolution or wind-up, received any notice of any alleged violation of any such Laws.

	  
	  
	  

	  
	 (v) 
	 Technology.

  
 	  
	  
	 (i) 
	 Schedule 3.1(v) sets forth a complete list and a brief description of all Intellectual Property owned, used or held by the Corporation and each Subsidiary, respectively, whether registered or unregistered (other than in the case of copyright for which only registered copyrights are listed), including particulars of any registration thereof, details of any application for registration and, where unregistered, the date of first use. All applications for registration and all Intellectual Property are valid, subsisting and in good standing and now held by the Corporation with good and marketable title, free and clear of all security interests, claims, liens, objections and infringements of every nature and kind.

	  
	  
	  
	  

	  
	  
	 (ii) 
	 Schedule 3.1(v) sets forth a complete list and brief description of the Information Technology and Technical Information.

	  
	  
	  
	  

	  
	  
	 (iii) 
	 Schedule 3.1(v) sets forth a complete list and brief description of the Technology of which the Corporation is not the sole beneficial and registered owner. The Corporation is using or holding the Technology of which it is not the sole beneficial and registered owner with the consent of or a licence from the owner of such Technology (including licenses to all commercially available “off-the-shelf” Technology), all of which such consents or licences are in full force and effect and no default exists on the part of the Corporation or, to the knowledge of Simmax and/or the Corporation, on the part of any of the parties thereto. The Corporation is not aware of any potential default, event, action or inaction, that, with the giving of notice or passage of time could, result in a default under any such license or agreements relating to the Technology. The Corporation is current in all payments, notices and other filings required to be made under all such Technology. The Corporation has the right to use or otherwise exploit all such non-owned Technology in the manner in which it is currently used or otherwise exploited and in any manner previously used by the Corporation and/or any Subsidiary.

   
 	 
	23
	

	 

  
 	  
	  
	 (iv) 
	 The Corporation is not party to any agreement involving the grant by the Corporation to any Person of any right to any Technology. The Information Technology systems of the Corporation: (i) have not failed to any material extent and the data which they process has not been materially corrupted; and (ii) to the knowledge of Simmax and/or the Corporation, do not contain any viruses, bugs, malware or things which could materially distort their proper functioning, permit unauthorized access or disable them without user consent. The Corporation has taken commercially reasonable steps to prevent the Technology from sabotage, harm, unauthorized access and use, including, putting into place appropriate disaster recovery and contingency plans, procedures and facilities and taken all commercially reasonable steps to safeguard the availability, security and integrity of the Information Technology systems of the Corporation and the Technology.

	  
	  
	  
	  

	  
	  
	 (v) 
	 The Corporation has not, nor had any Subsidiary, prior to its dissolution or wind-up, received any notice of Claim (whether written, oral or otherwise) challenging the ownership of rights by the Corporation and/or any Subsidiary to any of the Technology or suggesting that any other Person has any Claim or legal or beneficial ownership or other Claim or interest with respect to thereto, nor, to the knowledge of Simmax and/or the Corporation, is there a reasonable basis for such a Claim.

	  
	  
	  
	  

	  
	  
	 (vi) 
	 There are no Claims by the Corporation (or, to the knowledge of Simmax and/or the Corporation, facts that could result in a Claim by the Corporation) relating to breaches, violations, infringements, misappropriations or interferences, with any Technology by any other Person.

	  
	  
	  
	  

	  
	  
	 (vii) 
	 There are no Claims in progress or, to the knowledge of Simmax and/or the Corporation, pending or threatened against the Corporation and/or any Subsidiary relating to the Technology. There is no Claim which is ongoing, pending, or, to the knowledge of Simmax and/or the Corporation, threatened (including any opposition, re-examination or protest) which might result in the Technology being invalidated, revoked or subject to compulsory license. To the knowledge of Simmax and/or the Corporation, neither the Corporation’s current use and/or any Subsidiary’s prior use or exploitation of Technology would breach, violate, infringe, misappropriate, interfere with or otherwise conflict with any other Person’s intellectual property rights and the Corporation has not, nor had any Subsidiary prior to its dissolution or wind-up, received any notice of Claim (whether written, oral or otherwise) alleging any such breach, violation, infringement, misappropriation, interference or other conflict.

   
 	 
	24
	

	 

  
 	  
	  
	 (viii) 
	 The documentation relating to the know-how of the Corporation and/or the Subsidiaries and to each trade secret, design product, process or operation of the Corporation and/or the Subsidiaries relating to their respective businesses is accurate and in sufficient detail and content to identify and explain them, allow their full and proper use without reliance on the knowledge or memory of any individual and enable proper support and maintenance and further development. The Corporation has taken all reasonable steps to protect the confidentiality and value of such trade secrets, and such trade secrets are not part of the public domain.

  
 	  
	 (w) 
	 Equipment Contracts. Schedule 3.1(w) sets forth a complete list of all Equipment Contracts together with a description of the Fixed Assets to which the Equipment Contracts relate. All of the Equipment Contracts are in full force and effect and no default exists on the part of the Corporation, or, to the knowledge of Simmax and/or the Corporation, on the part of any of the other parties thereto. The interest of the Corporation under each of the Equipment Contracts, as applicable, is held free and clear of any Encumbrance and all payments due under the Equipment Contracts have been duly and punctually paid.

	  
	  
	  

	  
	 (x) 
	 Material Contracts. Schedule 3.1(x) sets forth a complete list of the Material Contracts. The Contracts are all in full force and effect and there are no outstanding defaults or violations under any such Contract on the part of the Corporation or, to the knowledge of Simmax and/or the Corporation, on the part of any other party to such Contracts, and there exists no state of facts which, after the giving of notice or lapse of time or both, would constitute a default or breach. There are no Contracts under which the Corporation’s rights or performance of its obligations are dependent on or supported by the guarantee or security provided by any other Person. The Corporation has the capacity, including the necessary personnel, equipment and supplies, to perform all its obligations under the Material Contracts. Current and complete copies of the Material Contracts have been delivered or made available to the Purchaser and there are no current or pending negotiations with respect to the renewal, repudiation or amendment of any such Material Contract.

	  
	  
	  

	  
	 (y) 
	 Real Property. The Corporation does not own and has not owned, nor had any Subsidiary, prior to dissolution or wind-up, any real property since November 4, 2002.

   
 	 
	25
	

	 

  
 	  
	 (z) 
	 Leased Real Property. 

  
 	  
	  
	 (i) 
	 There are no Real Property Leases or Leased Real Property as of the Closing Date except as set forth on Schedule 3.1(z).

	  
	  
	  
	  

	  
	  
	 (ii) 
	 Except as set forth on Schedule 3.1(z),

  
 	  
	  
	  
	 A. 
	 each Real Property Lease is binding and enforceable against each of the parties thereto and is in full force and effect as of the Closing Date;

	  
	  
	  
	  
	  

	  
	  
	  
	 B. 
	 each Real Property Lease creates a valid and binding leasehold interest in favour of the Corporation, in the subject Leased Real Property;

	  
	  
	  
	  
	  

	  
	  
	  
	 C.
	 in respect of each Leased Real Property: (1) the Corporation’s possession and quiet enjoyment of the leased premises is not being disturbed by any Person; (2) there are no disputes with respect to the related Real Property Lease between landlord and tenant; and (3) the Corporation has not subleased, licensed, or otherwise granted any Person the right to use or occupy the Leased Real Property or any portion thereof;

	  
	  
	  
	  
	  

	  
	  
	  
	 D. 
	 in respect of each Real Property Lease: (1) all payments due by the Corporation as at the Closing Time have been paid in full; (2) there is no default by any party to the lease and no event has occurred which, with the giving of notice or passage of time, or both, would constitute a default by any party under the lease; (3) no security deposit or portion thereof deposited with the landlord has been applied in respect of a breach or default under the lease; (4) no Person has any contractual option or right to purchase or acquire the Corporation’s interest in the lease or the leasehold interest created thereby (including without limitation any right of first refusal), and the Corporation has not entered into any agreement to grant such an option or right to do so; (5) the Corporation has not collaterally assigned or granted any other security interest in the lease or any interest therein; and (6) there are no abatements of rent, bonuses, or other inducements provided to the Corporation with respect to the lease;

	  
	  
	  
	  
	  

	  
	  
	  
	 E.
	 no notices of default, relocation or termination have been given or received by the Corporation and/or any Subsidiary, prior to dissolution or wind-up, under or in respect of any Real Property Lease and no such notices have been threatened by any party thereto;

	  
	  
	  
	  
	  

	  
	  
	  
	 F. 
	 the Corporation has not, nor had any Subsidiary, prior to dissolution or wind-up, received notice that there are any pending or, to the knowledge of Simmax and/or the Corporation, threatened, condemnation or other proceedings relating to any Leased Real Property or other matters adversely affecting the use or occupancy of any Leased Real Property;

   
 	 
	26
	

	 

  
 	  
	  
	  
	 G. 
	 the Corporation has received all requisite Government Authorizations required in connection with the operation of all Leased Real Property and the Corporation has not received notice that any Leased Real Property has not been operated and maintained in accordance with applicable Law; and

	  
	  
	  
	  
	  

	  
	  
	  
	 H.
	 to the knowledge of Simmax and the Corporation, (i) each Leased Real Property complies with all applicable Laws, including all applicable zoning by-laws, building and fire codes and environmental laws, (ii) the use of each Leased Real Property by the Corporation is permitted by Law, and (iii) all leasehold improvements, rent concessions, free rents and similar inducements which are the responsibility of the landlord under any of the Real Property Leases have been completed.

  
 	  
	 (aa) 
	 Employment Matters.

  
 	  
	  
	 (i) 
	 Schedule 3.1(aa) sets forth the title, service dates and material terms of employment, including current wages, salaries or hourly rate of pay, benefits, vacation entitlement, commissions and bonus (whether monetary or otherwise) or other compensation paid or payable since the beginning of the most recently completed fiscal year to each Employee, together with the location of their employment, and the dates and amounts of the most recent salary increases. Except as set out in Schedule 3.1(aa), the Corporation does not currently maintain any Benefit Plan, retirement or pension plans and the Corporation and/or each Subsidiary has never maintained a Benefit Plan, a retirement or pension plan.

	  
	  
	  
	  

	  
	  
	 (ii) 
	 The Corporation has and the Subsidiaries, prior to dissolution or wind-up, had paid all amounts payable on account of salary, bonus payment and commission to or on behalf of any and all Employees.

	  
	  
	  
	  

	  
	  
	 (iii) 
	 Other than as set out in Schedule 3.1(aa), all Employees are subject to written Employment Contracts, there are no Employment Contracts which are not terminable on the giving of reasonable notice and/or severance pay in accordance with applicable Law and no inducements to accept employment with the Corporation were offered to any such Employee which have the effect of increasing the period of notice of termination to which any such Employee is entitled. Except as set out in Schedule 2.3, there are no management agreements, retention bonuses, change of control agreements, transaction bonuses or other agreements to provide cash compensation or other compensation or benefits upon the consummation of the transactions contemplated by this Agreement.

   
 	 
	27
	

	 

  
 	  
	  
	 (iv) 
	 There have been no resignations or terminations as of the Closing Date, there are no threatened or pending labour matters as of Closing and there have been no Employees who have been continually absent from work for a period in excess of one month. Other than as set out in Schedule 3.1(aa), all Employees have executed non-competition agreements and non-solicitation agreements in favour of the Corporation. All employees of the Subsidiaries have either been terminated in accordance with applicable Laws or have been employed or engaged by the Corporation pursuant to a new and valid employment agreements.

	  
	  
	  
	  

	  
	  
	 (v) 
	 The Contractors and Sales Agents are all of the contractors and sales agents of the Corporation. Schedule 3.1(aa) sets forth the service dates and material terms of the Contractor and Sales Agent Contracts, including fees, commissions and bonuses (whether monetary or otherwise) or other compensation paid or payable since the beginning of the most recently completed fiscal year to each such Contractor and Sales Agent.

	  
	  
	  
	  

	  
	  
	 (vi) 
	 Except as set forth in Schedule 3.1(aa):

  
 	  
	  
	  
	 A. 
	 the Corporation has not made any Contracts with any labour union or employee association or made commitments to or conducted negotiations with any labour union or employee association with respect to any current or future agreements and, to the knowledge of Simmax and/or the Corporation, there exist no current attempts to organize or establish any labour union or employee association with respect to any Employees nor is there any certification of any such union with regard to a bargaining unit;

	  
	  
	  
	  
	  

	  
	  
	  
	 B. 
	 there are no unfair labour practice complaints against the Corporation and/or any Subsidiary pending before any federal or provincial labour tribunals or any similar agency or body having jurisdiction therefor;

	  
	  
	  
	  
	  

	  
	  
	  
	 C. 
	 there is no labour strike threatened against or involving the Corporation;

	  
	  
	  
	  
	  

	  
	  
	  
	 D. 
	 there is no certification application outstanding respecting the Employees;

	  
	  
	  
	  
	  

	  
	  
	  
	 E. 
	 there is no grievance or arbitration proceeding or governmental proceeding relating to the Employees pending, nor is there any such proceeding threatened against the Corporation and/or any Subsidiary which might have a Material Adverse Effect on the Corporation or on the conduct of the Business;

   
 	 
	28
	

	 

  
 	  
	  
	  
	 F. 
	 there is no Employee in receipt of or who has claimed benefits under any weekly indemnity, long term disability or workers' compensation plan or arrangement or any other form of disability benefit programme; and

	  
	  
	  
	  
	  

	  
	  
	  
	 G. 
	 all accruals for unpaid vacation pay, premiums for unemployment insurance, health premiums, Canada Pension Plan premiums, accrued wages, salaries and commissions and employee benefit plan payments in respect of the Employees have been reflected in the Books and Records. The Corporation has, and each Subsidiary had, prior to dissolution and wind-up, deducted and remitted to the relevant governmental authority or entity all income taxes, unemployment insurance contributions, Canada Pension Plan contributions, provincial employer health tax remittances and any taxes or deductions or other amounts which it is required by statute or Contract to collect and remit to any governmental authority or other entities entitled to receive payment of such deductions. 

  
 	  
	  
	 (vii) 
	 All levies under the workers’ compensation legislation of any jurisdiction where the Corporation carries on business and where the Subsidiaries formerly carried on business have been paid by the Corporation and the Subsidiaries, as the case may be.

   
 	  
	 (bb) 
	 Insurance. The Corporation maintains such policies of insurance, issued by responsible insurers, as are appropriate to the business of the Corporation, and its property and assets, and in such amounts and against such risks as are customarily carried and insured against by owners of comparable businesses, properties and assets. All such policies of insurance are in full force and effect, and will continue to be so until the Closing Date, and the Corporation is not in default, as to the payment of premiums or otherwise, under the terms of any such policy, nor has the Corporation failed to give any notice or present any claim under any such insurance policy in due and timely fashion. The Corporation has not received any written notice from or on behalf of any existing insurance carriers, nor is there any indication that its insurance rates will be increased as a result of, or arising from, the operation of the Business, or any insurer will refuse to renew any of the policies of insurance now in effect for the Business. Schedule 3.1(bb) sets out all insurance policies (specifying the insurer, the amount of the coverage, the type of insurance and any pending claims thereunder) maintained by the Corporation or previously maintained by any Subsidiary.

	  
	  
	  

	  
	 (cc) 
	 Environmental Matters. Except as set forth on Schedule 3.1(cc):

   
 	 
	29
	

	 

  
 	  
	  
	 (i)
	 the operation of the Business, the Leased Real Property and the property and assets of Corporation and each Subsidiary, and the use, maintenance and operation thereof are, and have at all times been, in compliance with all Environmental Laws;

	  
	  
	  
	  

	  
	  
	 (ii) 
	 the Corporation has and each Subsidiary had, prior to dissolution or wind-up, complied with all reporting and monitoring requirements under all Environmental Laws;

	  
	  
	  
	  

	  
	  
	 (iii) 
	 the Corporation has not, nor had any Subsidiary, prior to dissolution or wind-up, received any notice of any non-compliance with any Environmental Laws which has not been resolved to the satisfaction of the issuer of such notice and which has not been disclosed to the Purchaser;

	  
	  
	  
	  

	  
	  
	 (iv) 
	 there are no Hazardous Substances located on or in any of the assets of the Corporation other than Hazardous Substances normally used in the conduct of the business in accordance with Environmental Laws;

	  
	  
	  
	  

	  
	  
	 (v) 
	 no Release of any Hazardous Substances contrary to Environmental Laws has occurred by the Corporation and/or any Subsidiary;

	  
	  
	  
	  

	  
	  
	 (vi) 
	 neither the Corporation nor any Subsidiary has produced, generated, stored, handled, transported or disposed of any Hazardous Substances contrary to Environmental Laws;

	  
	  
	  
	  

	  
	  
	 (vii) 
	 the Corporation has not, nor had any Subsidiary prior to dissolution or wind-up, received any written notice that alleges that such party is responsible for any clean up or corrective action relating to any Environmental Laws; an d

	  
	  
	  
	  

	  
	  
	 (viii) 
	 the Corporation has not, nor had any Subsidiary, prior to dissolution or wind-up, conducted or had conducted an environmental audit, assessment or study of any of any assets and no such audit, assessment or study has, to the knowledge of Simmax and/or the Corporation been prepared by any other Person.

  
 	  
	 (dd) 
	 Personal Information. Except as disclosed in Schedule 3.1(dd):

   
 	  
	  
	 (i) 
	 the Corporation has a written privacy policy which governs the collection, use and disclosure of Personal Information in accordance with Privacy Laws and the Corporation is in compliance with such privacy policy;

	  
	  
	  
	  

	  
	  
	 (ii) 
	 all required consents to the collection, use or disclosure of Personal Information in connection with the conduct of the Business have been obtained;

   
 	 
	30
	

	 

  
 	  
	  
	 (iii) 
	 Personal Information of any individual that has been disclosed to the Purchaser by the Corporation and/or any Subsidiary, directly or indirectly, including through the Books and Records, has been so disclosed in compliance with all Privacy Laws;

	  
	  
	  
	  

	  
	  
	 (iv) 
	 there are no Claims, whether statutory or otherwise, pending, or to the knowledge of Simmax and/or the Corporation and, threatened, with respect to the collection, use, disclosure or retention of the Personal Information by the Corporation and/or any Subsidiary; and

	  
	  
	  
	  

	  
	  
	 (v) 
	 no judgment or order, whether statutory or otherwise, is pending or has been made, and no notice has been given pursuant to any Privacy Laws, requiring the Corporation and/or any Subsidiary to take (or to refrain from taking) any action with respect to the Personal Information.

  
 	  
	 (ee) 
	 Litigation. Except as disclosed in Schedule 3.1(ee), there are no Claims in progress, or, to the knowledge of Simmax and/or the Corporation, pending or threatened against or relating to the Corporation and/or any Subsidiary, and Simmax and/or the Corporation has no knowledge of any existing ground on which any such Claim might be commenced with any reasonable likelihood of success. Except as disclosed in Schedule 3.1(ee), there is no judgment, decree, injunction, rule or order of any Governmental Authority or arbitrator outstanding against the Corporation and/or any Subsidiary.

	  
	  
	  

	  
	 (ff) 
	 Tax Matters. Except as disclosed in Schedule 3.1(ff),

  
 	  
	  
	 (i) 
	 the Corporation and each Subsidiary has duly and timely made or prepared all Tax Returns required to be made or prepared by it, has duly and timely filed all Tax Returns required to be filed by it with the appropriate Governmental Authority and has duly, completely and correctly reported all income and all other amounts and information required to be reported thereon;

	  
	  
	  
	  

	  
	  
	 (ii) 
	 the Corporation and each Subsidiary has duly and timely paid all Taxes, including all instalments on account of Taxes for the current year, that are due and payable by it whether or not assessed by the appropriate Governmental Authority.

	  
	  
	  
	  

	  
	  
	 (iii) 
	 provision has been made on the Financial Statements for amounts at least equal to the amount of all Taxes owing by the Corporation and each Subsidiary, respectively, that are not yet due and payable and that relate to periods ending on or prior to the Closing Date;

   
 	 
	31
	

	 

  
 	  
	  
	 (iv) 
	 the Corporation has not, nor had any Subsidiary prior to dissolution or windup, requested, offered to enter into or entered into any agreement or other arrangement, or executed any waiver, providing for any extension of time within which (i) to file any Tax Return covering any Taxes for which the Corporation and/or any Subsidiary is or may be liable; (ii) to file any elections, designations or similar filings relating to Taxes for which the Corporation and/or any Subsidiary is or may be liable; (iii) the Corporation and/or any Subsidiary is required to pay or remit any Taxes or amounts on account of Taxes; or (iv) any Governmental Authority may assess or collect Taxes for which the Corporation and/or any Subsidiary is or may be liable;

	  
	  
	  
	  

	  
	  
	 (v)
	 the Corporation has not, nor had any Subsidiary, prior to dissolution or wind-up, made, prepared and/or filed any elections, designations or similar filings relating to Taxes or entered into any agreement or other arrangement in respect of Taxes or Tax Returns that has effect for any period ending after the Closing Date;

	  
	  
	  
	  

	  
	  
	 (vi)
	 there are no proceedings, investigations, audits or Claims now pending or threatened against the Corporation and/or any Subsidiary in respect of any Taxes and there are no matters under discussion, audit or appeal with any Governmental Authority relating to Taxes;

	  
	  
	  
	  

	  
	  
	 (vii) 
	 the Corporation has and each Subsidiary had, prior to dissolution or wind-up, duly and timely withheld all Taxes and other amounts required by Law to be withheld by it (including Taxes and other amounts required to be withheld by it in respect of any amount paid or credited or deemed to be paid or credited by it to or for the account or benefit of any Person, including any Employees, officers or directors and any non-resident Person), and duly and timely remitted to the appropriate Governmental Authority such Taxes and other amounts required by Law to be remitted by it;

	  
	  
	  
	  

	  
	  
	 (viii) 
	 the Corporation has and each Subsidiary had, prior to dissolution or wind-up, duly and timely collected all amounts on account of any sales or transfer taxes, including goods and services, HST and provincial or territorial sales taxes, required by Law to be collected by it and duly and timely remitted to the appropriate Governmental Authority any such amounts required by Law to be remitted by it;

	  
	  
	  
	  

	  
	  
	 (ix) 
	 the Corporation is and each Subsidiary was, prior to dissolution or wind-up, duly registered under subdivision (d) of Division V of Part IX of the Excise Tax Act (Canada) with respect to the goods and services tax and HST and all such registration numbers are set out in Schedule 3.1(ff);

	  
	  
	  
	  

	  
	  
	 (x) 
	 the Corporation has and each Subsidiary had, prior to dissolution or wind-up, respectively, withheld from each amount paid or credited to any person, including without limitation any current or former employees (including the Employees) of the Corporation and/or any Subsidiary, the amount so required to be withheld or deducted by any Governmental Authority and such amounts have been remitted to the proper Governmental Authority in a timely manner and in any event within the time required under applicable legislation; and

   
 	 
	32
	

	 

  
 	  
	  
	 (xi) 
	 the Purchaser has been provided with copies of all Tax Returns and all communications to or from any Governmental Authority relating to the Taxes of the Corporation and each Subsidiary, to the extent relating to periods or events in respect of which any Governmental Authority may by Law assess or otherwise impose any such Tax on the Corporation or each Subsidiary.

  
 	  
	 (gg) 
	 Books and Records. All Books and Records have been delivered or made available to the Purchaser. Such Books and Records have been maintained in accordance with GAAP and fairly and correctly set out and disclose the financial position of the Corporation and each Subsidiary as at the Closing Date, in the case of the Corporation, or as at the date of dissolution or wind-up, in the case of the Subsidiaries, and all material financial transactions relating to its business have been accurately recorded in such Books and Records.

	  
	  
	  

	  
	 (hh) 
	 Corporate Records. The minute books of the Corporation and each Subsidiary contain all constating documents, registrations and resolutions, and such minute books contain an accurate record of meetings and actions of directors (and committees of directors), shareholders and partners of the Corporation and each Subsidiary, as the case may be, since the date of incorporation or registration, as applicable, and accurately reflect all transactions referred to in such proceedings. The share ledgers and registers of the Corporation and each Subsidiary, as applicable, are complete and reflect all issuances, transfers, repurchases and cancellations of shares or partnership units in the capital of the Corporation and each Subsidiary. The officer and director registers are complete and accurate.

	  
	  
	  

	  
	 (ii) 
	 Warranties. Schedule 3.1(ii) lists the types of warranties customarily given to buyers of products or services supplied by the Corporation and/or any Subsidiary. From time to time, there have been Claims against the Corporation and/or any Subsidiary on account of warranties with respect to the production or sale of defective or inferior products or the provision of services, and in such cases, the Corporation and/or the Subsidiaries facilitated discussions with the manufacturers in respect of the manufacturer warranties. Except as set forth in Schedule 3.1(jj), there are no outstanding Material warranty claims.

	  
	  
	  

	  
	 (jj) 
	 Bank Accounts. Schedule 3.1(jj) sets forth a complete list of all financial institutions in which the Corporation maintains or which any Subsidiary maintained any depository account, trust account or safety deposit box and the names of all Persons, including any person or firm holding a power of attorney, authorized to draw on or who have or had access to such accounts or safety deposit boxes, as well as a description of all credit facilities, lines of credit, loan agreements and the like which the Corporation has and/or any Subsidiary had with any financial institution. All of the bank accounts operated in connection with the Business are currently maintained and operated solely in the name of the Corporation. There are no bank accounts operated in the name of any division or business or trade name or style of the Corporation and/or any Subsidiary.

   
 	 
	33
	

	 

  
 	  
	 (kk) 
	 Powers of Attorney. Schedule 3.1(kk) sets out a complete list of every outstanding power of attorney granted by the Corporation and the names of all Persons who have been given the authority to act on behalf of the Corporation. The Purchaser has been provided with copies of all outstanding powers of attorney granted by the Corporation.

	  
	  
	  

	  
	 (ll) 
	 Securities Legislation. The Corporation is a private issuer within the meaning of Section 2.4(1) of CSA National Instrument 45-106 (Prospectus Exemptions) and the sale of the Purchased Shares by the Vendors to the Purchaser will be made in compliance with all applicable securities legislation.

	  
	  
	  

	  
	 (mm) 
	 Total Assets and Gross Revenues. Neither the aggregate value of the assets of the Corporation and the Subsidiaries (at any time in the past) nor the gross annual revenues from sales in or from Canada of the Corporation or any Subsidiary (at any time in the past) has exceeded ninety-six million dollars ($96,000,000.00).

	  
	  
	  

	  
	 (nn) 
	 Health and Safety. The business premises located on the Leased Real Property are in compliance with applicable health and safety Laws and are not subject to any orders or directions of any Governmental Authority.

	  
	  
	  

	  
	 (oo) 
	 Expropriation. No part of the assets of the Corporation or of any Subsidiary, as disclosed in the Financial Statements, have been taken or expropriated by any federal, provincial, state, municipal, or other authority nor has any notice or proceeding in respect thereof been given or commenced nor is Simmax or the Corporation aware of any intent or proposal to give such notice or commence any such proceedings.

	  
	  
	  

	  
	 (pp) 
	 Restrictions on Business. The Corporation is not a party to any Contracts or subject to any restriction in the Articles or by-laws or subject to any restriction imposed by regulatory authorities having jurisdiction over it or subject to any statute, order, regulation or rule or to any writ, judgment, injunction or decree of any court or Governmental Authority which might prevent or interfere with the use of its assets or which may limit or restrict or otherwise adversely affect its businesses, properties, assets or financial condition, other than statutory provisions and restrictions of general application to its particular business. The Business is the only business carried on by the Corporation on the date hereof.

  
 	 
	34
	

	 

  
 	  
	 (qq) 
	 Purchase Commitments. No purchase commitment of the Corporation is in excess of its normal business requirements or at any excessive price.

   
  3.2 Representations and Warranties of the Vendors
  
 Each Vendor severally, and not jointly, represents, warrants and covenants to the Purchaser as follows and acknowledges that the Purchaser is relying on the following representations, warranties and covenants in entering into this Agreement and completing the transactions contemplated by it:
  
 	  
	 (a) 
	 Organization and Power. The Vendor (i) is duly formed or incorporated, validly existing and, if applicable, in good standing under the Laws of the jurisdiction of its formation or incorporation; and (ii) has (or its general partner has) the power and authority to execute, deliver and perform its obligations under this Agreement.

	  
	  
	  

	  
	 (b) 
	 Authorization, Enforceability. The execution, delivery and performance by such Vendor of this Agreement has been duly authorized by all requisite corporate or comparable organizational action on the part of such Vendor, and no other proceedings or actions on the part of such Vendor are necessary to authorize the execution, delivery and performance by such Vendor of this Agreement and the consummation of the transactions contemplated hereby. This Agreement has been duly executed and delivered by such Vendor and, assuming due authorization, execution and delivery by the other Parties hereto, represents the legal, valid and binding obligation of such Vendor, enforceable against such Vendor in accordance with its terms, subject to the effect of (A) applicable bankruptcy, insolvency, reorganization, moratorium and other similar Laws now and hereafter in effect relating to the rights of creditors generally and (B) rules of law and equity governing specific performance, injunctive relief and other equitable remedies. No further authorizing action on the part of such Vendor is or will be required in connection with the consummation of the transactions contemplated hereby.

	  
	  
	  

	  
	 (c) 
	 Non-Contravention.

  
 	  
	  
	 (i) 
	 The execution and delivery by such Vendor of this Agreement does not, and the performance by such Vendor of its obligations hereunder and the consummation of the transactions contemplated hereby by such Vendor will not, (A) conflict with, or result in a violation of or default under (with or without notice, lapse of time, or both), the memorandum or articles of association or incorporation, bylaws, partnership agreement, shareholders agreement, or equivalent constitutional or authorizing documents of such Vendor or any Law applicable to it, (B)(1) conflict with, (2) result in a violation of or default under (with or without notice, lapse of time or both), (3) give rise to a right of termination, cancellation, renegotiation or acceleration of any obligation under or (4) require consent, approval or waiver from any Person in accordance with the terms of, any Contract to which such Vendor is a party, or (C) result in the creation or imposition of any Encumbrance with respect to, or otherwise have an adverse effect upon, the shares in the Corporation owned beneficially or of record by such Vendor or the ability of such Vendor to consummate the transactions contemplated hereby.

   
 	 
	35
	

	 

  
 	  
	  
	 (ii) 
	 No consent, approval, license, permit, order or authorization of, registration or filing with or declaration or notification to, any Person is required by such Vendor in connection with the execution and delivery of this Agreement by such Vendor or the consummation of the transactions contemplated hereby by such Vendor.

   
 	  
	 (d) 
	 Ownership of Shares. Such Vendor is, or immediately preceding the Closing Time will be, the sole registered and beneficial owner of the Class A Common Shares set forth opposite its name on Part 2 of Schedule A hereof with good and marketable title thereto, free and clear of all Encumbrances except under the Articles, and such Vendor has not granted any rights to purchase, and has no obligation to transfer, assign or otherwise dispose of, such Class A Common Shares to any other Person. Such Vendor has the sole right to transfer the full legal and beneficial ownership of such Class A Common Shares free from all Encumbrances to the Purchaser, subject to compliance with the Articles and, in the case of Simmax, with the 2010 Unanimous Shareholders Agreement. Such Vendor has no other rights to acquire shares in the capital of the Corporation. Upon the Closing, the Purchaser will own such Vendor’s Purchased Shares free and clear of all Encumbrances.

	  
	  
	  

	  
	 (e) 
	 Independent Tax and Legal Advice. Such Vendor acknowledges and agrees that such Vendor had the opportunity to seek and was not prevented by the Purchaser or any other Person from seeking independent legal and Tax advice before such Vendor’s execution and delivery of this Agreement, and, if such Vendor did not avail itself of that opportunity before signing this Agreement, that such Vendor did so voluntarily without any undue pressure and agrees that such failure to obtain independent legal or Tax advice will not be used by such Vendor as a defense to the enforcement of such Vendor’s obligations under this Agreement. Such Vendor understands that it must rely solely on its own advisors and not on any statements or representations by any other Party to this Agreement or any of their agents or attorneys, except for the representations and warranties of the Purchaser in Section 3.3. Such Vendor understands that such Vendor (and not the Purchaser or the Corporation) will be responsible for such Vendor’s legal or Tax liability that may arise as a result of the sale of such Vendor’s securities hereunder.

  
 	 
	36
	

	 

  
 	  
	 (f) 
	 Absence of Litigation. Such Vendor is not subject to any Claims outstanding or pending or, to the knowledge of such Vendor, threatened against or affecting such Vendor that would prevent such Vendor from (A) executing and delivering this Agreement, or (B) performing such Vendor’s obligations pursuant to, or observing any of the terms and provisions of this Agreement.

	  
	  
	  

	  
	 (g) 
	 Residence. Such Vendor is not a non-resident of Canada within the meaning of the Income Tax Act.

   
 3.3 Representations and Warranties of the Purchaser 
  
 The Purchaser represents and warrants to the Vendors the matters set out below, and acknowledges that the Vendors are relying on these representations and warranties in consummating the transactions contemplated by this Agreement:
  
 	  
	 (a) 
	 Incorporation. The Purchaser is a corporation validly existing under the laws of the State of Nevada.

	  
	  
	  

	  
	 (b) 
	 Due Authorization and Enforceability of Obligations. The Purchaser has all necessary corporate power, authority and capacity to enter into this Agreement and to carry out its obligations under this Agreement. The execution and delivery of this Agreement and the consummation of the transactions contemplated by this Agreement have been duly authorized by all necessary corporate action of the Purchaser. This Agreement constitutes valid and binding obligations of the Purchaser enforceable against it in accordance with its terms except as enforcement may be limited by bankruptcy, insolvency and other laws affecting the rights of creditors generally and except that equitable remedies may be granted only in the discretion of a court of competent jurisdiction.

	  
	  
	  

	  
	 (c) 
	 Absence of Conflicting Agreements. The Purchaser is not a party to, bound or affected by or subject to any indenture, mortgage, lease, agreement, instrument, charter or by-law provision, statute, regulation, order, judgment, or law which would be violated, contravened, or breached by, or under which any default would occur as a result of the execution or delivery by it of this Agreement or the consummation of the transactions contemplated herein, except as disclosed in this Agreement.

	  
	  
	  

	  
	 (d)
	 Investment Canada Act. The Purchaser is a non-Canadian within the meaning of the Investment Canada Act and within thirty (30) days of the Closing Date will file or cause to be filed any notification required by such legislation as a result of the transactions contemplated herein.

  
 	 
	37
	

	 

   
 3.4 Commission 
  
 Each Party represents and warrants to the other Parties that no Person is entitled to a brokerage commission, finder's fee or other like payment in connection with the purchase and sale contemplated hereby. 
  
 3.5 Non-Waiver 
  
 No investigations made by or on behalf of the Purchaser at any time shall have the effect of waiving, diminishing the scope of or otherwise affecting any representation or warranty made by any other Party herein or pursuant hereto. No waiver by the Purchaser of any condition, in whole or in part, shall operate as a waiver of any other condition. 
  
 3.6 Nature and Survival of Representations and Warranties 
  
 	  
	 (a) 
	 Subject to Sections 3.6(b) and (c), all representations, warranties and covenants contained in this Agreement on the part of each of the Parties shall survive the Closing Date, the Effective Date, the execution and delivery under this Agreement of any share or security transfer instruments or other documents of title to any of the Purchased Shares and the payment of the consideration for the Purchased Shares.

	  
	  
	  

	  
	 (b) 
	 Representations and warranties relating to tax matters set out in Section 3.1(ff) (Tax Matters) arising in or in respect of a particular period ending on, before or including the Closing Date shall survive for a period of ninety (90) days after the relevant authorities shall no longer be entitled to assess liability against the Corporation and/or any Subsidiary for that particular period, having regard, without limitation, to any waivers given by the Corporation and/or any Subsidiary in respect of any taxation year. All other representations and warranties shall survive for a period of two (2) years from the Closing Date. If no claim shall have been made under this Agreement against a Party for any incorrectness in or breach of any representation or warranty made in this Agreement prior to the expiry of these survival periods, such Party shall have no further liability under this Agreement with respect to such representation or warranty.

	  
	  
	  

	  
	 (c) 
	 All covenants shall continue in full force and effect for a period of two (2) years from the Closing Date, unless a greater period is otherwise provided for herein, and then such greater period.

	  
	  
	  

	  
	 (d) 
	 All statements contained in any certificate or other instrument delivered by or on behalf of a Party pursuant to or in connection with the transactions contemplated by this Agreement shall be deemed to be made by that Party under this Agreement.

  
 	 
	38
	

	 

  
 ARTICLE 4 
COVENANTS OF THE PARTIES 
  
 4.1 Delivery of Books and Records 
  
 Within twenty (20) days after the Closing Date, each of the Vendors and the Corporation shall make available or grant to the Purchaser electronic access to the Books and Records of the Corporation and each Subsidiary, including, without limitation, the following documents: (i) employee records with respect to the Employees; (ii) advertising, promotional and marketing materials which relate to the Corporation and/or any Subsidiary; and (iii) files relating to the assets of the Corporation and/or any Subsidiary including, without limitation, the maintenance records for any Fixed Asset owned or leased by the Corporation and/or any Subsidiary. Each Vendor and the Corporation agrees that it will preserve the documents, and other Books and Records which are not physically delivered to the Purchaser for a period of six (6) years from the Closing Date, or for such longer period as is required by applicable Laws, and will permit the Purchaser or its authorized representatives reasonable access to those Books and Records in connection with the affairs of the Corporation and/or any Subsidiary relating to any tax, workers' compensation or litigation matters. 
  
 4.2 Workers' Compensation 
  
 Immediately following Closing, the Corporation shall provide a clearance certificate or other similar documentary evidence from the worker's compensation authority in each jurisdiction where the Corporation and/or any Subsidiary carries on or has carried on business certifying that there are no outstanding assessments, penalties, fines, levies, charges, surcharges or other amounts due or owing to those authorities. 
  
 4.3 Confidentiality 
  
 The Purchaser shall keep confidential all confidential Technology and any other confidential information (unless readily available from public or published information or sources or required to be disclosed by Law) obtained from any of the Vendors or the Corporation. If this Agreement is terminated without completion of the transactions contemplated herein then, promptly after such termination, all documents, work papers and other written material obtained by the Purchaser from any of the Vendors or the Corporation in connection with this Agreement shall be returned by the Purchaser to the Party from whom such materials were obtained. 
  
 4.4 Consents Required in Contracts 
  
 The Corporation shall be responsible for obtaining any consent for any Contract where such consent is required upon a change of control of the Corporation and/or any Subsidiary as a result of the consummation of transactions contemplated by this Agreement. If the Corporation is unable to obtain such consent, it shall notify the Purchaser in writing prior to the Closing and such Contract shall not be assigned and the Vendor, the Corporation and/or the Subsidiary shall, as the case may be and to the extent legally possible, hold its right, title and interest in, to and under such Contract in trust for the benefit of the Purchaser until such consent is obtained. 
  
 	 
	39
	

	 

  
 4.5 Investment Canada 
  
 Withing 30 days of the Closing Date, the Purchaser shall deliver to each Vendor and the Corporation a copy of either a receipt issued under subsection 13(1) of the Investment Canada Act certifying that a complete notice in prescribed form in respect of the acquisition has been received and advising that such acquisition is not reviewable; or a notice from the Minister of Industry, Science and Technology issued under ss. 21, 22 or 23 of the Investment Canada Act indicating that such Minister is, or is deemed to be, satisfied that the acquisition is likely to be of net benefit to Canada.
  
 ARTICLE 5 
INDEMNIFICATION 
  
 5.1 Indemnification by Simmax and Corporation 
  
 	  
	 (a) 
	 Subject to Section 5.1(b), Simmax and the Corporation shall jointly and severally indemnify and save harmless the Purchaser, its directors, officers, agents, employees and shareholders (in this Section, the “Indemnified Parties”), on an after-Tax basis, from and against any Claims which may be made or brought against the Indemnified Parties, or which they may suffer or incur, directly or indirectly as a result of or in connection with:

  
 	  
	  
	 (i)
	 any non-fulfilment of any covenant or agreement on the part of Simmax or the Corporation under this Agreement or in any agreement, schedule, certificate or other document required to be entered into or delivered by Simmax;

	  
	  
	  
	  

	  
	  
	 (ii) 
	 any misrepresentation, inaccuracy, incorrectness or breach of any representation or warranty of Simmax or the Corporation, as the case may be, contained in this Agreement or in any agreement, schedule, certificate or other document required to be entered into or delivered by Simmax; or

	  
	  
	  
	  

	  
	  
	 (iii) 
	 any reassessment for income, corporate sales, excise or other Taxes (and all interest and/or penalties relating thereto) in respect of which Tax Returns have been filed before the Closing Time, which result in payment of tax in excess of the amount accrued or reserved for in the Financial Statements.

   
 	  
	 (b) 
	 The obligations of indemnification set out in subsection (a) above shall be subject to the limitation periods referred to in Section 3.6 with respect to survival of representations and warranties.

  
 	 
	40
	

	 

   
 5.2  Indemnification by Remora 
  
 	  
	 (a) 
	 Subject to Section 5.2(b), Remora and the Corporation shall jointly and severally indemnify and save harmless the Purchaser, its directors, officers, agents, employees and shareholders (in this Section, the “Indemnified Parties”), on an after-Tax basis, from and against any Claims which may be made or brought against the Indemnified Parties, or which they may suffer or incur, directly or indirectly as a result of or in connection with:

   
 	  
	  
	 (i) 
	 any non-fulfilment of any covenant or agreement on the part of Remora under this Agreement or in any agreement, schedule, certificate or other document required to be entered into or delivered by Remora; or

	  
	  
	  
	  

	  
	  
	 (ii) 
	 any misrepresentation, inaccuracy, incorrectness or breach of any representation or warranty of Remora contained in this Agreement or in any agreement, schedule, certificate or other document required to be entered into or delivered by Remora.

   
 	  
	 (b) 
	 The obligations of indemnification set out in subsection (a) above shall be subject to the limitation periods referred Section 3.6 with respect to survival of representations and warranties.

   
 5.3  Indemnification by Purchaser  
  
 	  
	 (a) 
	 Subject to Section 5.3(b), the Purchaser shall indemnify and save harmless the Vendors and their respective directors, officers, agents, employees and shareholders (in this Section, the “Indemnified Parties”), on an after-Tax basis, from and against all Claims which may be made or brought against the Indemnified Parties, or which they may suffer or incur, directly or indirectly as a result of or in connection with:

   
 	  
	  
	 (i) 
	 any non-fulfilment of any covenant or agreement on the part of the Purchaser under this Agreement or in any agreement, schedule, certificate or other document required to be entered into or delivered by the Purchaser; or

	  
	  
	  
	  

	  
	  
	 (ii) 
	 any misrepresentation, inaccuracy, incorrectness or breach of any representation or warranty of the Purchaser contained in this Agreement or in any agreement, schedule, certificate or other document required to be entered into or delivered by the Purchaser.

   
 	  
	 (b) 
	 The obligation of indemnification set out in subsection (a) above shall be subject to the limitation period referred to in Section 3.6 with respect to survival of representations and warranties.

   
 	 
	41
	

	 

  
 5.4 Claims by Third Parties 
  
 	  
	 (a) 
	 In the case of Claims made by a third party with respect to which any Party is entitled to seek indemnification pursuant to this Agreement, and indemnification is sought by either the Vendors or the Purchaser, the Party seeking indemnification (in this Section, the “Indemnified Party”) shall give prompt notice, and in any event within forty-five (45) days, to the Vendors or the Purchaser, as the case may be, (in this Section, the “Indemnifying Parties”) of any such Claims made upon it. If the Indemnified Party fails to give such notice, such failure shall not preclude the Indemnified Party from obtaining such indemnification but its right to indemnification may be reduced if and to the extent only that such delay prejudiced the defence of the Claim or increased the amount of liability or cost of defense and provided that no claim for indemnity in respect of the breach of any representation or warranty contained in this Agreement may be made unless notice of such Claim has been given prior to the expiry of the survival period applicable to such representation and warranty pursuant to Section 3.6.

	  
	  
	  

	  
	 (b) 
	 The Indemnifying Parties shall have the right, by notice to the Indemnified Party given not later than thirty (30) days after receipt of the notice described in Section 5.4(a), to assume the control of the defence, compromise or settlement of the Claim, provided that (i) such assumption shall, by its terms, be without cost to the Indemnified Party; (ii) the Indemnifying Parties acknowledge in writing their obligation to indemnify the Indemnified Party in accordance with the terms contained in this Section in respect of that Claim; (iii) the Indemnifying Parties shall first deliver to the Indemnified Party their written consent to be joined as a party to any action or proceeding related thereto; and (iv) the Indemnifying Parties shall, at the Indemnified Party’s request, furnish it with reasonable security against any costs or other liabilities to which it may be or become exposed by reason of such defence, compromise or settlement.

	  
	  
	  

	  
	 (c)
	 Upon the assumption of control of any Claim by the Indemnifying Parties as set out in Section 5.4(b), the Indemnifying Parties shall diligently proceed with the defence, compromise or settlement of the Claim at their sole expense, including if necessary, employment of counsel reasonably satisfactory to the Indemnified Party and, in connection therewith, the Indemnified Party shall cooperate fully, but at the expense of the Indemnifying Parties, to make available to the Indemnifying Parties all pertinent information and witnesses under the Indemnified Party’s control and take such other steps as in the opinion of counsel for the Indemnifying Parties are reasonably necessary to enable the Indemnifying Parties to conduct such defence, provided always that the Indemnified Party shall be entitled to reasonable security from the Indemnifying Parties for any expense, costs or other liabilities to which it may be or may become exposed by reason of such cooperation. The Indemnified Party shall also have the right to participate in the negotiation, settlement or defence of any Claim at its own expense.

	  
	  
	  

	  
	 (d) 
	 The final determination of any Claim made pursuant to this Section 5.4, including all related costs and expenses, shall be binding and conclusive upon the Parties as to the validity or invalidity, as the case may be, of such Claim against the Indemnifying Party.

  
 	 
	42
	

	 

  
 	  
	 (e) 
	 If the Indemnifying Parties do not assume control of a Claim as permitted in Section 5.4(b), the Indemnified Party shall be entitled to make such settlement of the Claim as in its sole discretion may appear advisable, and such settlement or any other final determination of the Claim shall be binding upon the Indemnifying Parties.

	  
	  
	  

	  
	 (f) 
	 Where an amount is payable by the Purchaser or the Vendors as indemnification pursuant to the terms of this Agreement and the Excise Tax Act provides that GST, HST or other sales tax is deemed to have been collected by the payee thereof, the amount so payable, as determined without reference to this paragraph (the “Indemnification Amount”), shall be increased by an amount equal to the rate of such sales tax applied to the Indemnification Amount in accordance with the Excise Tax Act.

   
 5.5 Indemnification Sole Remedy 
  
 The provisions of this Article 5 shall constitute the sole remedy to the Vendors and the Purchaser against the other Parties to this Agreement with respect to any and all breaches of any agreement, covenant, representation or warranty made by such other Parties in this Agreement. 
  
 5.6 Details of Claims 
  
 With respect to any Claim provided for under Sections 5.1 or 5.2(a), no indemnity under this Agreement shall be sought unless written notice providing reasonable details of the reasons for which the indemnity is sought is provided to either of the Vendors or the Purchaser, as the case may be, before the expiration of the limitation dates provided for in Sections 5.1 or 5.2(a) respectively, as applicable. 
  
 ARTICLE 6 
CLOSING CONDITIONS 
  
 6.1 Purchaser's Conditions 
  
 The obligation of the Purchaser to complete the transactions contemplated by this Agreement shall be subject to the satisfaction of, or compliance with, at or before the Closing Time, each of the following conditions precedent (each of which is hereby acknowledged to be inserted for the exclusive benefit of the Purchaser and may be waived by it in whole or in part): 
  
 	  
	 (a) 
	 Truth and Accuracy of Representations. All of the representations and warranties of the Vendors and the Corporation, respectively, made in or under this Agreement, including, without limitation, the representations and warranties made by each such Party set forth in Sections 3.1 and 3.2 shall be true and correct in all material respects as at the Closing Time and with the same effect as if made at and as of the Closing Time (except as such representations and warranties may be affected by the occurrence of events or transactions expressly contemplated and permitted by this Agreement) and the Purchaser shall have received an officer’s certificate from each of the Vendors, the Corporation and the Subsidiaries, respectively, confirming the truth and correctness in all material respects of the representations and warranties of each such Party.

  
 	 
	43
	

	 

   
 	  
	 (b) 
	 Authorization and Performance of Obligations. All necessary corporate or comparable organizational action will have been taken by the shareholders and directors of each of the Vendors and the Corporation, respectively, to approve the execution and delivery of this Agreement, the transfer of the Purchased Shares, and the performance by each such Party hereunder. Each such Party shall have performed or complied with, in all material respects, all its obligations, covenants and agreements under this Agreement.

	  
	  
	  

	  
	 (c) 
	 Receipt of Closing Documentation. All instruments of conveyance and other documentation and assurances relating to the purchase and sale of the Purchased Shares including, without limitation, share certificates (the “Closing Documents”) and all actions and proceedings taken on or prior to the Closing in connection with performance by the Vendors of their obligations under this Agreement shall be satisfactory to the Purchaser and its counsel, acting reasonably, and the Purchaser shall have received copies of all such documentation or other evidence as it may reasonably request in order to establish the consummation of the transactions contemplated under this Agreement and the taking of all corporate proceedings in connection with those transactions in compliance with this Section 6.1, in form and substance satisfactory to the Purchaser and its counsel.

	  
	  
	  

	  
	 (d) 
	 Closing Documentation. Without limiting the generality of Section 6.1(c), the Purchaser shall have received at or before the Closing Time sufficient duly executed original copies of the following:

   
 	  
	  
	 (i) 
	 certified copy of a resolution of the board of directors and shareholders of the Corporation approving this Agreement and the transactions contemplated under this Agreement;

	  
	  
	  
	  

	  
	  
	 (ii) 
	 certified copy of a resolution of the board of directors and shareholders of Simmax approving this Agreement and the transactions contemplated under this Agreement;

	  
	  
	  
	  

	  
	  
	 (iii) 
	 certified copy of a resolution of the general partner of Remora approving this Agreement and the transactions contemplated under this Agreement;

	  
	  
	  
	  

	  
	  
	 (iv)
	 statutory declaration of each Vendor concerning the residence of such Vendor, the matters referred to in Section 6.1(a) and confirming that all conditions under this Agreement in favour of such Vendor have been either fulfilled or waived;

   
 	 
	44
	

	 

  
 	  
	  
	 (v) 
	 certificate of incumbency of the Corporation and each of the Vendors;

	  
	  
	  
	  

	  
	  
	 (vi) 
	 certificate of compliance of the Corporation;

	  
	  
	  
	  

	  
	  
	 (vii) 
	 certificate of status of Simmax;

	  
	  
	  
	  

	  
	  
	 (viii) 
	 limited partnerships report in respect of Remora;

	  
	  
	  
	  

	  
	  
	 (ix) 
	 original share certificates representing the Purchased Shares;

	  
	  
	  
	  

	  
	  
	 (x) 
	 the Books and Records as provided for in Section 4.1;

	  
	  
	  
	  

	  
	  
	 (xi) 
	 the Unanimous Shareholders’ Agreement; and

  
 	  
	 (e) 
	 Internal Reorganization. The Purchaser shall have received all corporate documents, agreements, consents, elections and other documents necessary to give effect to the internal reorganization of the Corporation and its Subsidiaries prior to the Closing Date.

	  
	  
	  

	  
	 (f) 
	 Opinion of Counsel for the Vendors. The Purchaser shall have received a legal opinion dated the Closing Date, in form and substance acceptable to the Purchaser, from counsel for each Vendor.

	  
	  
	  

	  
	 (g) 
	 Consents to Assignment. All consents or approvals from or notifications to any lessor or other third Person required under the terms of any of the Contracts, Equipment Contracts or the Real Property Leases with respect to the acquisition of control of the Corporation by the Purchaser, or otherwise in connection with the consummation of the transactions contemplated under this Agreement, shall have been duly obtained or given, as the case may be, on or before the Closing Time.

	  
	  
	  

	  
	 (h) 
	 Consents, Authorizations and Registrations. All consents, approvals, orders and authorizations of or from Governmental Authorities or any other third parties required in connection with the completion of the transactions contemplated in this Agreement shall have been obtained on or prior to the Closing Time.

	  
	  
	  

	  
	 (i) 
	 Remora Subscription. Remora and the Corporation shall have completed all of the transactions contemplated by the Remora Subscription Agreement and the Corporation shall deliver an acknowledgement that it has received the Remora Consideration, which the Corporation shall retain in full at the Closing Time. If applicable, any holding or seasoning periods prescribed by Law with respect to the Purchased Shares of Remora will have expired.

	  
	  
	  

	  
	 (j) 
	 Key Employees. The Purchaser shall have received full and complete copies of all employment agreements of the Key Employees and shall be satisfied with their terms and conditions.

   
 	 
	45
	

	 

  
 	  
	 (k) 
	 Phase 1 Environmental Assessments. The Purchaser shall have received all Phase 1 Environmental Assessments issued to the Corporation and/or any Subsidiary in respect of any Leased Real Property and shall be satisfied with the results thereof.

	  
	  
	  

	  
	 (l) 
	 Quality of Earnings Report. The Purchaser shall have received to its sole satisfaction a quality of earnings report or an equivalent report, prepared by an independent third party with respect to the financial position of the Corporation and the Subsidiaries.

	  
	  
	  

	  
	 (m) 
	 Financial Forecasts. The Purchaser shall have received to its sole satisfaction a three-year consolidated forecast of revenues, gross profits and earnings of the Corporation.

	  
	  
	  

	  
	 (n) 
	 Independent Valuation. The Purchaser shall have received to its sole satisfaction an independent valuation of the Corporation.

	  
	  
	  

	  
	 (o) 
	 Certificate as to Status of Assets. A senior officer of the Corporation shall have executed and delivered to the Purchaser, in a form satisfactory to the Purchaser, a certificate stating that, as of the Closing Date, there has been no Material Adverse Effect in the condition of the assets of the Business or to the nature of the Business.

	  
	  
	  

	  
	 (p) 
	 No Actions Taken Restricting Sale. No action or proceeding in Canada by law or in equity shall be pending or threatened by any person, firm, corporation, government, governmental authority, regulatory body or agency to enjoin, restrict or prohibit the purchase and sale of the Shares contemplated under this Agreement.

	  
	  
	  

	  
	 (q) 
	 Change of Control Filing. The Vendors shall prepare at the Vendors’ expense and provide to the Corporation and the Purchaser to be filed within the time period prescribed by the Income Tax Act and any other applicable legislation all Tax Returns and filings required to be made by the Corporation consequent upon the acquisition of control of the Corporation by the Purchaser. The Vendors shall indemnify and hold harmless the Corporation and the Purchaser in respect of Liabilities of the Corporation for Taxes relating to all fiscal periods of the Corporation commencing prior to the Effective Date. In its return for the fiscal period ending on the acquisition of control of the Corporation by the Purchaser, the Corporation shall elect not to have subsection 256(9) of the Income Tax Act (and other similar provisions under provincial law) apply.

  
 	 
	46
	

	 

   
 6.2 Vendor's Conditions 
       
 The obligations of the Vendors to complete the transactions contemplated by this Agreement shall be subject to the satisfaction of, or compliance with, at or before the Closing Time, each of the following conditions precedent (each of which is hereby acknowledged to be inserted for the exclusive benefit of the Vendor and may be waived by the Vendor in whole or in part); 
       
 	  
	 (a) 
	 Truth and Accuracy of Representations of the Purchaser at Closing Time. All of the representations and warranties of the Purchaser made in or under this Agreement, including, without limitation, the representations and warranties made by the Purchaser and set forth in Section 3.3, shall be true and correct in all material respects as at the Closing Time and with the same effect as if made at and as of the Closing Time (except as such representations and warranties may be affected by the occurrence of events or transactions contemplated and permitted hereby) and the Vendor shall have received a certificate from a senior officer of the Purchaser confirming the truth and correctness in all material respects of such representations and warranties of the Purchaser.

	  
	  
	  

	  
	 (b) 
	 Authorization and Performance of Agreements. All necessary corporate action will have been taken by the shareholders and directors of the Purchaser to approve the execution and delivery of this Agreement and the performance by the Purchaser hereunder. The Purchaser shall have performed or complied with, in all respects, all of its other obligations, covenants and agreements under this Agreement.

	  
	  
	  

	  
	 (c) 
	 Receipt of Closing Documentation. All instruments of conveyance and other documentation and assurances relating to the purchase and sale of the Purchased Shares including, without limitation, share certificates and all actions and proceedings taken on or prior to the Closing in connection with performance by the Purchaser of its obligations under this Agreement shall be satisfactory to the Vendors and their counsel, acting reasonably, and the Vendors shall have received copies of all such documentation or other evidence as each may reasonably request in order to establish the consummation of the transactions contemplated under this Agreement and the taking of all corporate proceedings in connection with those transactions in compliance with this Section 6.2, in form and substance satisfactory to the Vendors and their respective counsel.

	  
	  
	  

	  
	 (d) 
	 Closing Documentation. Without limiting the generality of Section 6.2(c), the Vendors shall have received at or before the Closing Time sufficient duly executed original copies of the following:

  
 	  
	  
	 (i) 
	 certified copy of a resolution of the board of directors of the Purchaser approving this Agreement and the transactions contemplated under this Agreement;

	  
	  
	  
	  

	  
	  
	 (ii) 
	 certificate of a senior officer of the Purchaser concerning residence of the Purchaser, the matters referred to in Section 6.2(a), its status for purposes of the Investment Canada Act and confirming that all conditions under this Agreement in favour of the Purchaser have been either fulfilled or waived;

   
 	 
	47
	

	 

   
 	  
	  
	 (iii) 
	 certificate of incumbency of the Purchaser; and

	  
	  
	  
	  

	  
	  
	 (iv) 
	 certificate of good standing of the Purchaser.

   
 	  
	 (e) 
	 No Actions Taken Restricting Sale. No action or proceeding in Canada by law or in equity shall be pending or threatened by any person, firm, corporation, government, governmental authority, regulatory body or agency to enjoin, restrict or prohibit the purchase and sale of the Purchased Shares contemplated under this Agreement.

	  
	  
	  

	  
	 (f) 
	 Payment of Purchase Price. The Purchaser shall have tendered to the Vendors, by wire transfer or certified cheque, payment for the Purchase Price net of any transfer fees.

	  
	  
	  

	  
	 (g) 
	 Consents, Authorizations and Registrations. All consents, approvals, orders and authorizations of or from Governmental Authorities or any other third parties required in connection with the completion of the transactions contemplated in this Agreement shall have been obtained on or prior to the Closing Time.

	  
	  
	  

	  
	 (h) 
	 Governmental Actions and Approvals. There shall have been obtained, from all appropriate federal, provincial, municipal or other governmental or administrative bodies, such approvals or consents as are required to permit the change of ownership and due registration of the Shares contemplated by this Agreement.

  
 6.3 Failure to Satisfy Conditions 
       
 If any condition set forth in Sections 6.1 or 6.2 is not satisfied on or before the Closing Time, the Party entitled to the benefit of such condition (in this Section, the “First Party”) may terminate this Agreement by notice in writing to the other Parties and in such event the First Party shall be released from all obligations under this Agreement, and unless the First Party can show that the condition or conditions which have not been satisfied and for which the First Party has terminated this Agreement are reasonably capable of being performed or caused to be performed by the other Parties then the other Parties shall also be released from all obligations under this Agreement, except that the First Party shall be entitled to waive compliance with any such conditions, obligations or covenants in whole or in part if it sees fit to do so without prejudice to any of its rights of termination in the event of non-performance of any other condition, obligation or covenant, or whole or in part. 
       
 6.4 Destruction or Expropriation 
       
 If, prior to the Closing Time, there occurs any material destruction or damage by fire or other cause or hazard to any of the properties or assets of the Corporation and/or any Subsidiary, or if such properties or assets or any material part of them are expropriated or forcefully taken by any Governmental Authorities or if notice of intention to expropriate a material part of such properties or assets has been filed in accordance with applicable legislation, then the Purchaser may, at its option, terminate this Agreement by notice to the other Parties. 
   
 	 
	48
	

	 

  
 ARTICLE 7 
CLOSING ARRANGEMENTS 
  
 7.1 Time and Place of Closing 
  
 The completion of the transactions contemplated by this Agreement shall take place at the Closing Time on the Closing Date by the exchange of electronic documents in portable document format (PDF). The Closing shall be deemed to take place at the offices of Mann Lawyers LLP in Ottawa, Ontario, Canada. 
  
 7.2 Closing Arrangements 
  
 At the Closing Time, upon fulfilment of all the conditions under this Agreement which have not been waived in writing by the Purchaser or the Vendors respectively: 
  
 	  
	 (a) 
	 Purchase and Sale of Shares. The Vendors shall sell and the Purchaser shall purchase the Purchased Shares for the Purchase Price payable under this Agreement.

	  
	  
	  

	  
	 (b) 
	 Delivery of Closing Documents. The Parties shall respectively deliver the Closing Documents.

	  
	  
	  

	  
	 (c) 
	 Share Certificates. The Vendor shall deliver an undertaking to deliver actual possession of the Purchased Shares to the Purchaser within five Business Days of the Closing Date.

	  
	  
	  

	  
	 (d) 
	 Payment of Purchase Price. On the fulfilment of the foregoing terms of this Article 7, the Purchaser shall pay and satisfy the Purchase Price in accordance with Section 2.2.

  
 7.3 Tender 
  
 Any tender of documents or money hereunder may be made upon the Parties or their respective counsel and money may be tendered by negotiable cheque payable in Canadian funds and certified by a Canadian chartered bank or trust company or by wire transfer. 
  
 ARTICLE 8 
NOTICES 
  
 8.1 Delivery of Notice 
  
 	  
	 (a) 
	 Any notice, consent or approval required or permitted to be given in connection with this Agreement (in this Section referred to as a “Notice”) shall be in writing and shall be sufficiently given if delivered (whether in person, by courier service or other personal method of delivery) or if transmitted by facsimile or email:

  
 	 
	49
	

	 

  
 	  
	  
	 (i) 
	in the case of a Notice to Simmax at:
	  
	  
	  
	  

	  
	  
	  
	Simmax Corp.
	  
	  
	  
	8750 - 58 Avenue NW
	  
	  
	  
	Edmonton, Alberta 76E 6G6
	  
	  
	  
	Attention: Daryl Kruper
	  
	  
	  
	Email: [redacted]
	  
	  
	  
	  

	  
	  
	 (ii)
	in the case of a Notice to Remora at:
	  
	  
	  
	  

	  
	  
	  
	Remora EQ LP
	  
	  
	  
	123 Slater Street, #300
	  
	  
	  
	Ottawa, ON K1P 5H2
	  
	  
	  
	Attention: Stephan May
	  
	  
	  
	[redacted]
	  
	  
	  
	  

	  
	  
	 (iii)
	in the case of a Notice to the Corporation at:
	  
	  
	  
	  

	  
	  
	  
	Simson-Maxwell Ltd.
	  
	  
	  
	8750 - 58 Avenue NW
	  
	  
	  
	Edmonton, Alberta 76E 6G6
	  
	  
	  
	Attention: Daryl Kruper
	  
	  
	  
	Email: [redacted]
	  
	  
	  
	  

	  
	  
	 (iv)
	in the case of a Notice to the Purchaser at:
	  
	  
	  
	  

	  
	  
	  
	Viking Energy Group, Inc.
15915 Katy Freeway, Suite 450
Houston, TX 7094, USA
	  
	  
	  
	Attention: James Doris
	  
	  
	  
	Email: [redacted]

  
 	  
	  
	  
	 With a copy to: 
	Mann Lawyers LLP
	  
	  
	  
	  
	11 Holland Avenue, Suite 300
Ottawa, ON K1Y 4S1
	  
	  
	  
	  
	Attention: André Martin

   
 	  
	 (b) 
	 Any Notice delivered or transmitted to a Party as provided above shall be deemed to have been given and received on the day it is delivered or transmitted, provided that it is delivered or transmitted on a Business Day prior to 5:00 p.m. local time in the place of delivery or receipt. However, if the Notice is delivered or transmitted after 5:00 p.m. local time or if such day is not a Business Day then the Notice shall be deemed to have been given and received on the next Business Day.

  
 	 
	50
	

	 

  
 	  
	 (c) 
	Any Party may, from time to time, change its address by giving Notice to the other Parties in accordance with the provisions of this Section

   
 ARTICLE 9 
GENERAL 
  
 9.1 Expenses 
  
 All costs and expenses (including, without limitation, the fees and disbursements of legal counsel) incurred in connection with this Agreement and the transaction contemplated under this Agreement shall be paid by the Party incurring such expenses. 
  
 9.2 Time 
  
 Time shall be of the essence hereof. 
  
 9.3 Assignment/Successors and Assigns 
  
 Neither this Agreement nor any rights or obligations under this Agreement shall be assignable by any Party, other than by the Purchaser to a corporation to be incorporated, without the prior written consent of the other Parties. Subject to that condition, this Agreement shall enure to the benefit of and be binding upon the Parties and their respective heirs, executors, administrators, successors (including any successor by reason of amalgamation of any Party) and permitted assigns. 
  
 9.4 Further Assurances 
  
 Each Party agrees that upon the written request of any other Party, it will do all such acts and execute all such further documents, conveyances, deeds, assignments, transfers and the like, and will cause the doing of all such acts and will cause the execution of all such further documents as are within its power to cause the doing or execution of, as the other Party may from time to time reasonably request be done and/or executed as may be required to consummate the transactions contemplated under this Agreement or as may be necessary or desirable to effect the purpose of this Agreement or any document, agreement or instrument delivered under this Agreement and to carry out their provisions or to better or more properly or fully evidence or give effect to the transactions contemplated under this Agreement, whether before or after the Closing. 
  
 9.5 Public Notices 
  
 All notices to third parties and all other publicity concerning the transactions contemplated by this Agreement shall be jointly planned and coordinated by the Vendors and the Purchaser and no Party shall act unilaterally in this regard without the prior written approval of the other Party (such approval not to be unreasonably withheld), except where required to do so by law or by the applicable regulations or policies of any provincial, federal or other regulatory agency of competent jurisdiction or any stock exchange, in which case the disclosing Party shall notify the other Parties of the content and nature of the required disclosure. 
  
 	 
	51
	

	 

  
 9.6 Entire Agreement 
  
 This Agreement, the documents required to be delivered hereunder, and the Viking Subscription Agreement, and the Unanimous Shareholders Agreement constitute the entire agreement between the Parties relating to the subject matter hereof and supersede all prior agreements, understandings, negotiations and discussions, whether oral or written. There are no representations, warranties, conditions, covenants or other agreements, express or implied, collateral, statutory or otherwise, between the Parties in connection with the subject matter of this Agreement, except as specifically set forth herein and therein. 
  
 9.7 Amendment and Waiver 
  
 This Agreement may only be amended by written agreement signed by each Party hereto. Any waiver of any provision of this Agreement will be effective only if it is in writing and signed by the Party to be bound thereby, and only in the specific instance and for the specific purpose for which it has been given. No failure on the part of any Party to exercise, and no delay in exercising, any right under this Agreement will operate as a waiver of such right. No single or partial exercise of any such right will preclude any further or other exercise of such right. 
  
 9.8 Severability 
  
 If any provision of this Agreement is determined to be invalid, illegal or unenforceable by an arbitrator or any court of competent jurisdiction, that provision will be severed from this Agreement, and the remaining provisions will remain in full force and effect. 
  
 9.9 Counterparts and Electronic Execution 
  
 This Agreement may be executed in any number of counterparts each of which will be deemed to be an original, and all of which taken together will be deemed to constitute one and the same instrument. This Agreement may be executed and delivered by electronic means and each of the Parties may rely on such electronic execution as though it were an original hand-written signature. 
  
 [Signature page follows below.]
  
 	 
	52
	

	 

  
 IN WITNESS WHEREOF the Parties have duly executed this Agreement as of the date and year first above written.

  
 		 VIKING ENERGY GROUP, INC.
  

	  
	 /s/ James Doris
	 
	  
	 Name: James Doris
	 
	  
	 Title: President and C.E.O.
	 
		 I have authority to bind the Corporation

  
 	  
	 SIMMAX CORP.
  

	  
	 /s/ Daryl Kruper
	 
	  
	 Name: Daryl Kruper
	 
	  
	 Title: President
	 
		 I have authority to bind the Corporation

  
 		 REMORA EQ LP., by its general partner 
 REMORA EQ GENERAL PARTNER INC.
  

	  
	 /s/ Candace Enman
	 
	  
	 Name: Candace Enman
	 
	  
	 Title: President
 I have authority to bind the Corporation
	 

  
 		 SIMSON-MAXWELL LTD.
  

	  
	 /s/ Daryl Kruper
	 
	  
	 Name: Daryl Kruper
	 
	  
	 Title: President
	 
		 I have authority to bind the Corporation

  
 	 
	 [Signature Page – Share Purchase Agreement]

	

	 

  
 SCHEDULE A
  
 Part 1: Capitalization Table: Date Hereof
  
 	 Vendor
  
	 Class A Common
  
	 Class B Common
  
	 Class C Preferred
  

	 Simmax Corp.
  
	 1,100
  
	 0
  
	 0
  

	 Total
  
	 1,100
  
	 0
  
	 0
  

  
 Part 2: Capitalization Table: Post Remora Subscription
  
 	 Vendor
  
	 Class A Common
  
	 Class B Common
  
	 Class C Preferred
  

	 Simmax Corp.
  
	 1,100
  
	 0
  
	 0
  

	 Remora EQ LP
  
	 1,458
  
	 0
  
	 0
  

	 Total
  
	 2,558
  
	 0
  
	 0
  

  
 	 
	
	

	 

  
 SCHEDULE 2.2
  
 Purchase Price Allocation
  
 	 Vendor
  
	 Purchase Price
  

	 Simmax Corp.
  
	 $1,720,032.71
  

	 Remora EQ LP
  
	 $2,278,324.95
  

	 Total
  
	 $3,998,357.66
  

  
 	 
	
	

	 

  
 SCHEDULE 2.3
  
 Purchase Price Adjustment(s)
  
 None. 
  
  
  
  
  
  
  
  
  
  
  
  
  
 	 
	
	

	 

  
 DISCLOSURE SCHEDULES
  
 [Omitted pursuant to Item 601(b)(2) of Regulation S-K]

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