Document:

SunOpta Inc.: Exhibit 4.1 - Prepared by TNT Filings Inc.

 

INDENTURE

SUNOPTA INC.

and

[TO BE NAMED]

Trustee

Dated as of __________________

$___________

______% Debentures Due _______

TABLE OF CONTENTS

	 	Page
	
     
	 
	
    ARTICLE 1 Definitions and Rules of Construction;
    Applicability of the Trust Indenture Act
	1
	
    Section 1.01 Definitions
	1
	
    Section 1.02 Other Definitions
	3
	
    Section 1.03 Rules of Construction
	3
	
    Section 1.04 Trust Indenture Act
	3
	
    ARTICLE 2 The Securities
	4
	
    Section 2.01 Form and Dating
	4
	
    Section 2.02 Execution and Authentication
	4
	
    Section 2.03 Agents
	4
	
    Section 2.04 Paying Agent To Hold Money in Trust
	4
	
    Section 2.05 Securityholder Lists
	5
	
    Section 2.06 Transfer and Exchange
	5
	
    Section 2.07 Replacement Securities
	5
	
    Section 2.08 Outstanding Securities
	5
	
    Section 2.09 Treasury Securities Disregarded for
    Certain Purposes
	6
	
    Section 2.10 Temporary Securities
	6
	
    Section 2.11 Global Securities
	6
	
    Section 2.12 Cancellation
	6
	
    Section 2.13 Defaulted Interest
	7
	
    ARTICLE 3 Redemption
	7
	
    Section 3.01 Notice to Trustee
	7
	
    Section 3.02 Selection of Securities To Be
    Redeemed
	7
	
    Section 3.03 Notice of Redemption
	8
	
    Section 3.04 Effect of Notice of Redemption
	8
	
    Section 3.05 Deposit of Redemption Price
	8
	
    Section 3.06 Securities Redeemed in Part
	9
	
    ARTICLE 4 Covenants
	9
	
    Section 4.01 Payment of Securities
	9
	
    Section 4.02 SEC Reports
	9
	
    Section 4.03 Compliance Certificate
	9
	
    Section 4.04 Notice of Certain Events
	9
	
    ARTICLE 5 Successors
	10
	
    Section 5.01 When Company May Merge, etc
	10
	
    Section 5.02 Successor Corporation Substituted
	10
	
    ARTICLE 6 Defaults and Remedies
	10
	
    Section 6.01 Events of Default
	10
	
    Section 6.02 Acceleration
	11

(i) 

TABLE OF CONTENTS 

(continued) 

	 	Page
	 	 
	
    Section 6.03 Other Remedies
	12
	
    Section 6.04 Waiver of Past Defaults
	12
	
    Section 6.05 Control by Majority
	12
	
    Section 6.06 Limitation on Suits
	12
	
    Section 6.07 Rights of Holders To Receive Payment
	13
	
    Section 6.08 Priorities
	13
	
    Section 6.09 Undertaking for Costs
	13
	
    Section 6.10 Proof of Claim
	13
	
    Section 6.11 Actions of a Holder
	14
	ARTICLE 7 Trustee	14
	
    Section 7.01 Duties of Trustee
	14
	
    Section 7.02 Rights of Trustee
	15
	
    Section 7.03 Individual Rights of Trustee;
    Disqualification
	15
	
    Section 7.04 Trustee's Disclaimer
	15
	
    Section 7.05 Notice of Defaults
	15
	
    Section 7.06 Reports by Trustee to Holders
	15
	
    Section 7.07 Compensation and Indemnity
	16
	
    Section 7.08 Replacement of Trustee
	16
	
    Section 7.09 Successor Trustee by Merger, etc
	17
	
    Section 7.10 Eligibility
	17
	
    Section 7.11 Preferential Collection of Claims
    Against Company
	17
	ARTICLE 8 
    Satisfaction and Discharge	17
	
    Section 8.01 Satisfaction and Discharge of
    Indenture
	17
	
    Section 8.02 Application of Trust Funds
	18
	
    Section 8.03 Reinstatement
	19
	
    Section 8.04 Repayment to Company
	19
	ARTICLE 9 
    Amendments	19
	
    Section 9.01 Without Consent of Holders
	19
	
    Section 9.02 With Consent of Holders
	19
	
    Section 9.03 Compliance with Trust Indenture Act
    and Section 12.03
	20
	
    Section 9.04 Revocation and Effect of Consents
    and Waivers
	20
	
    Section 9.05 Notice of Amendment; Notation on or
    Exchange of Securities
	21
	
    Section 9.06 Trustee Protected
	21
	ARTICLE 10 
    Conversion	21
	
    Section 10.01 To be provided
	21
	ARTICLE 11 
    Subordination	21
	
    Section 11.01 To be provided
	21

(ii) 

TABLE OF CONTENTS 

(continued) 

	 	Page
	 	 
	ARTICLE 12 
    Miscellaneous	21
	
    Section 12.01 Notices
	21
	
    Section 12.02 Communication by Holders with Other
    Holders
	22
	
    Section 12.03 Certificate and Opinion as to
    Conditions Precedent
	22
	
    Section 12.04 Statements Required in Certificate
    or Opinion
	22
	
    Section 12.05 Rules by' Trustee and Agents
	22
	
    Section 12.06 Legal Holidays
	22
	
    Section 12.07 No Recourse Against Others
	23
	
    Section 12.08 Duplicate Originals
	23
	
    Section 12.09 Variable Provisions
	23
	
    Section 12.10 Governing Law
	24
	 	 
	EXHIBIT A - Face of
    Security	 

(iii) 

CROSS-REFERENCE TABLE 

	
    TIA Section
	
    Indenture Section
	310(a)(1)	7.I0
	
    (a)(2)
	7.10
	
    (a)(3)
	N.A.
	
    (a)(4)
	N.A.
	
    (a)(5)
	N.A.
	
    (b)
	7.08;
    7.10
	
    (c)
	N.A.
	311(a)	7.11
	
    (b)
	7.11
	
    (c)
	N.A.
	312(a)	2.05
	
    (b)
	12.02
	
    (c)
	N.A.
	313(a)	7.06
	
    (b)(l)
	N.A.
	
    (b)(2)
	7.00
	
    (c)
	7.06
	
    (d)
	7.06
	314(a)(1)	4.02
	
    (a)(2)
	12.01
	
    (a)(4)
	4.03
	
    (b)
	N.A.
	
    (c)
	
    2.02;7.02(b);8.01(3)
	
    (c)(l)
	13.04
	
    (c)(2)
	13.04
	
    (c)(3)
	13.04
	
    (d)
	N.A.
	
    (e)
	
    4.03;12.04
	
    (f)
	4.03
	315(a)(1)	
    6.05;7.01(b)(t)
	
    (a)(2)
	
    7.01(b)(2)
	
    (b)
	7.05;
    12.01
	
    (c)
	7.01(a)
	
    (d)(1)
	7.0t(b)
	
    (d)(2)
	
    7.01(c)(2)
	
    (d)(3)
	
    6.05;7.01(c)(3)
	
    (e)
	6.09
	316 (a) (last
    sentence)	2.09
	
    (a)(t)(A)
	6.05
	
    (a)(1)(B)
	6.04
	
    (a)(2)
	 

N.A. means not applicable. 

Note: This Cross-Reference Table shall not, for
any purpose, be deemed to be part of this Indenture. 

(iv) 

	TIA Section	
    Indenture Section
	 	 
	(b)	6.07
	(c)	9.04
	317(a)(1)	 
	(a)(2)	 
	(b)	2.04
	318(a)	 

N.A. means not applicable. 

Note: This Cross-Reference Table shall not, for
any purpose, be deemed to be part of this Indenture. 

(v) 

INDENTURE dated as of ___________, between SUNOPTA INC., a corporation organized and existing under the laws of Canada (“Company”), and [_____________], a [New York] corporation (“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 Company's ___% Debentures Due ____ (“Securities”):

ARTICLE 1

Definitions and Rules of Construction; Applicability of the Trust Indenture Act

Section 1.01  Definitions

“Affiliate” Any Person controlling or controlled by or under common control with the Company.   “Control” for this definition means the power to direct the management and policies of a Person, directly or indirectly, whether through the ownership of voting securities, by contract, or otherwise.   The terms “controlling” and “controlled” have meanings correlative to the foregoing.

“Agent” Any Registrar, Paying Agent or Conversion Agent.

“Board” The Board of Directors of the Company or any officer or committee thereof authorized to act for such Board.

“Business Day” A day that is not a Legal Holiday.

“Company” The party named as such above until a successor which duly assumes the obligations upon the Securities and under the Indenture replaces it and thereafter means the successor.

“Debt” means, with respect to any Person, (i) any obligation of such Person to pay the principal of, premium of, if any, interest on (including interest accruing on or after the filing of any petition in bankruptcy or for reorganization relating to the Company, whether or not a claim for such post-petition interest is allowed in such proceeding), penalties, reimbursement or indemnification amounts, fees, expenses or other amounts relating to any indebtedness, and any other liability, contingent or otherwise, of such Person (A) for borrowed money (including instances where the recourse of the lender is to the whole of the assets of such Person or to a portion thereof), (B) evidenced by a note, debenture or similar instrument (including a purchase money obligation) including securities, (C) for any letter of credit or performance bond in favor of such Person, or (D) for the payment of money relating to a capitalized lease obligation; (ii) any liability of others of the kind described in the preceding clause (i), which the Person has guaranteed or which is otherwise its legal liability; (iii) any obligation of the type described in clauses (i) and (ii) secured by a lien to which the property or assets of such Person are subject, whether or not the obligations secured thereby shall have been assumed by or shall otherwise be such Person's legal liability; and (iv) any and all deferrals, renewals, extensions and refunding of, or amendments, modifications or supplements to, any liability of the kind described in any of the preceding clauses (i), (ii) or (iii).

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

“Exchange Act” The Securities Exchange Act of 1934, as amended.

“Holder” or “Securityholder” A Person in whose name a Security is registered.

“Indenture” This Indenture as amended from time to time, including the terms of the Securities and any amendments.

“Officers' Certificate” A certificate signed by two Officers, one of whom must be the President, the Treasurer or a Vice-President of the Company.   See Sections 12.03 and 12.04.

“Opinion of Counsel” Written opinion from legal counsel who is acceptable to the Trustee.   See Sections 12.03 and 12.04.

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

“Principal” of a Security means the principal of the Security plus the premium, if any, on the Security which is due or overdue or is to become due at the relevant time.

“Proceeding” A liquidation, dissolution, bankruptcy, insolvency, reorganization, receivership or similar proceeding under Bankruptcy Law, an assignment for the benefit of creditors, any marshalling of assets or liabilities, or winding up or dissolution, but shall not include any transaction permitted by and made in compliance with Article 5.

“SEC” The Securities and Exchange Commission.

“Securities” The Securities described above issued under this Indenture.

“TIA” The Trust Indenture Act of 1939, as amended, as in effect on the date of this Indenture, except as provided in Sections 1.04 and 9.03.

“Trust Officer” Any officer or assistant officer of the Trustee assigned by the Trustee to administer its corporate trust matters or to whom a matter concerning the Indenture may be referred.

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

“U.S. Government Obligations” Securities that are direct, noncallable, nonredeemable obligations of, or noncallable, nonredeemable obligations guaranteed by, the United States of America for the timely payment of which obligation or guarantee the full faith and credit of the United States of America is pledged, or funds consisting solely of such securities, including funds managed by the Trustee or one of its Affiliates (including such funds for which it or its Affiliates receives fees in connection with such management).

-2- 

Section 1.02  Other Definitions

.

  
	

Term

	
  
  Defined

  
in Section

	 	
  
  

	
  
  “Bankruptcy Law”

	
  
  6.01

	
  
  “Conversion Agent”

	
  
  2.03

	
  
  “Custodian”

	
  
  6.01

	
  
  “Defaulted Interest”

	
  
  2.13

	
  
  “Event of Default”

	
  
  6.01

	
  
  “Legal Holiday”

	
  
  12.06

	
  
  “Notice”

	
  
  12.01

	
  
  “Officer”

	
  
  12.09

	
  
  “Paying Agent”

	
  
  2.03

	
  
  “Registrar”

	
  
  2.03

Section 1.3  Rules of Construction.  Unless the context otherwise requires:

(1) a term defined in Sections 1.01 or 1.02 has the meaning assigned to it therein, and terms defined in the TIA have the meanings assigned to them in the TIA;

(2) an accounting term not otherwise defined has the meaning assigned to it in accordance with generally accepted accounting principles in the United States;

(3) “or” is not exclusive;

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

(5) provisions apply to successive events and transactions;

(6) “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

(7) “including” means including without limitation.

Section 1.4  Trust Indenture Act.  The provisions of TIA §§310 through 317 that impose duties on any Person (including the provisions automatically deemed included herein unless expressly excluded by this Indenture) are a part of and govern this Indenture upon and so long as the Indenture and Securities are subject to the TIA.  If any provision of this Indenture limits, qualifies or conflicts with such duties, the imposed duties shall control.  If a provision of the TIA requires or permits a provision of this Indenture and the TIA provision is amended, then the Indenture provision shall be automatically amended to like effect.

[Any reference to a requirement under the TIA shall only apply upon and so long as the Indenture is qualified under and subject to the TIA.]

-3- 

 

ARTICLE 2

The Securities

Section 2.01  Form and Dating.  The Securities and the certificate of authentication shall be substantially in the form of Exhibit A, which is hereby incorporated in and expressly made a part of this Indenture.  The Securities may have notations, legends or endorsements required by Section 2.11, law, stock exchange rule, automated quotation system, agreements to which the Company is subject, or usage.  Each Security shall be dated the date of its authentication.

Section 2.02  Execution and Authentication.  Two Officers 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 is still valid.

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

The Trustee shall authenticate Securities for original issue up to the amount stated in paragraph 4 of Exhibit A in accordance with an Officers' Certificate of the Company.  The aggregate principal amount of Securities outstanding at any time may not exceed that amount except as provided in Section 2.07.

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.

Section 2.03  Agents.  The Company shall maintain an office or agency where Securities may be presented for registration of transfer or for exchange (“Registrar”), where Securities may be presented for payment (“Paying Agent”) and where Securities may be presented for conversion to the extent and in the manner set forth in Article 10 (“Conversion Agent”).  Whenever the Company must issue or deliver Securities pursuant to this Indenture, the Trustee shall authenticate the Securities at the Company's request.  The Registrar shall keep a register of the Securities and of their transfer and exchange.

The Company may appoint more than one Registrar, Paying Agent or Conversion Agent.  The Company shall notify the Trustee of the name and address of any Agent not a party to this Indenture.  If the Company does not appoint another Registrar, Paying Agent, or Conversion Agent, the Trustee shall act as such.

Section 2.04  Paying Agent To Hold Money in Trust.  On or prior to each due date of the Principal and interest on any Security, the Company shall deposit with the Paying Agent a sum sufficient to pay such Principal and interest when so becoming due.  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 or the Trustee all money held by the Paying Agent for the payment of the Principal of or interest on the Securities and will notify the Trustee 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 and to account for any funds disbursed by the Paying Agent.  Upon complying with this Section, the Paying Agent shall have no further liability for the money delivered to the Trustee.  If the Company or any Affiliate acts as Paying Agent, it shall segregate the money held by it as Paying Agent and hold it as a separate trust fund.

-4- 

Section 2.05  Securityholder 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.  If the Trustee is not the Registrar, the Company shall furnish to the Trustee, in writing at least 10 Business Days before each interest payment date and at such other times as the Trustee may request a list in such form and as of such date as the Trustee may reasonably require of the names and addresses of Securityholders.

Section 2.06  Transfer and Exchange.  The Securities shall be issued in registered form and shall be transferable only upon surrender of a Security for registration of transfer.  When a Security is presented to the Registrar with a request to register a transfer or to exchange them for an equal principal amount of Securities of other denominations, the Registrar shall register the transfer or make the exchange if its requirements for such transactions are met and the Security has not been redeemed.  The Company may charge a reasonable fee for any registration of transfer or exchange but not for any exchange pursuant to Section 2.10, 3.06 or 9.05.

All Securities issued upon any transfer or exchange pursuant to the terms of this Indenture will evidence the same debt and will be entitled to the same benefits under this Indenture as the Securities surrendered upon such transfer or exchange.

Section 2.07  Replacement Securities.  If the Holder of a Security claims that the Security has been lost, destroyed or wrongfully taken, then, in the absence of notice to the Company that the Security has been acquired by a protected purchaser, the Company shall issue a replacement Security.  If required by the Trustee or the Company, an indemnity bond must be provided which is sufficient in the judgment of both to protect the Company, the Trustee and the Agents from any loss which any of them may suffer if a Security is replaced.  The Company or the Trustee may charge the Holder for its expenses in replacing a Security.

Every replacement Security is an additional obligation of the Company.

Section 2.08  Outstanding Securities.  Securities outstanding at any time are all Securities authenticated by the Trustee except for those canceled by the Registrar, those delivered to it for cancellation and those described in this Section as not outstanding.  A Security does not cease to be outstanding because the Company or an Affiliate holds the Security.

-5- 

If a Security is replaced pursuant to Section 2.07, it ceases to be outstanding unless the Company receives proof satisfactory to it that the replaced Security is held by a protected purchaser.

If Securities are considered paid under Section 4.01, they cease to be outstanding and interest on them ceases to accrue.

Section 2.09  Treasury Securities Disregarded for Certain Purposes.  In determining whether the Holders of the required Principal amount of Securities have concurred in any direction, waiver or consent, Securities owned by the Company or an Affiliate shall be disregarded and deemed not to be outstanding, except that, for the purposes of determining whether the Trustee shall be protected in relying on any such direction, waiver or consent, only Securities which the Trustee knows are so owned shall be so disregarded.  Securities so owned which have been pledged in good faith shall not be disregarded if the pledgee establishes to the satisfaction of the Trustee the pledgee's right to deliver any such direction, waiver or consent with respect to the Securities and that the pledgee is not the Company or any other obligor upon the Securities or any Affiliate of the Company or of such other obligor.

Section 2.10  Temporary Securities.  Until definitive Securities are ready for delivery, the Company may use temporary Securities.  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 deliver definitive Securities in exchange for temporary Securities.

Section 2.11  Global Securities.  The Company may issue some or all of the Securities in temporary or permanent global form.  The Company may issue a global Security only to a depository.  A depository may transfer a global Security only to its nominee or to a successor depository.  A global Security shall represent the amount of Securities specified in the global Security.  A global Security may have variations that the depository requires or that the Company considers appropriate for such a security.

Beneficial owners of part or all of a global Security are subject to the rules of the depository as in effect from time to time.

The Company, the Trustee and the Agents shall not be responsible for any acts or omissions of a depository, for any depository records of beneficial ownership interests or for any transactions between the depository and beneficial owners.

Section 2.12  Cancellation.  The Company at any time may deliver Securities to the Trustee for cancellation. The Paying Agent and Conversion Agent, if not the Trustee, shall forward to the Trustee any Securities surrendered to them for payment or conversion.  The Trustee shall cancel all Securities surrendered for registration of transfer, exchange, payment, conversion or cancellation and shall dispose of canceled Securities according to its standard procedures or as the Company otherwise directs.  The Company may not issue new Securities to replace Securities that it has paid or which have been delivered to the Trustee for cancellation or that any Securityholder has converted.

-6- 

 

Section 2.13  Defaulted Interest.  If the Company defaults in a payment of interest on the Securities (“Defaulted Interest”) such Defaulted Interest shall cease to be payable to the Securityholder on the relevant record date and shall be paid by the Company, at its election, under either (1) or (2) below:

(1) The Company may pay the Defaulted Interest together with interest thereon to the Persons which are Securityholders on a subsequent special record date.  The Company shall notify the Trustee of the amount of Defaulted Interest together with interest thereon to be paid and pay over such amount to the Trustee.  The Trustee shall then fix a special record date and at the Company's expense shall notify Securityholders not less than 10 days prior to such special record date of the proposed payment, of the special record date, and of the payment date.

(2) The Company may make payment of Defaulted Interest together with interest thereon in any lawful manner not inconsistent with the requirements of any securities exchange or automated quotation system on which the Securities may be listed or designated for issuance.  The Company shall give prompt notice to the Trustee and Securityholders that it intends to make payment pursuant to this Section 2.13(2) and of the special record date of the proposed payment, and of the payment date.

ARTICLE 3

Redemption

Section 3.01  Notice to Trustee.  If Securities are to be redeemed, the Company shall notify the Trustee of the redemption date, the Principal amount of Securities to be redeemed and the provision of the Securities permitting or requiring the redemption.

The Company may reduce the Principal amount of Securities required to be redeemed pursuant to Paragraph Six of the Securities if it notifies the Trustee of the amount of the credit and the basis for it by delivery of an Officers' Certificate.  If the reduction is based on a credit for redeemed, converted or canceled Securities that the Company has not previously delivered to the Trustee for cancellation, the Company shall deliver such Securities to the Registrar before the selection of securities to be redeemed.

The Company shall give each notice provided for in this Section at least 50 days before the redemption date unless a shorter period is satisfactory to the Trustee.  If fewer than all the Securities are to be redeemed, the record date relating to such redemption shall be selected by the Company and given to the Trustee, which record date shall be not less than 15 days prior to the redemption date.

Section 3.02  Selection of Securities To Be Redeemed.  If less than all the Securities are to be redeemed, the Trustee shall select the Securities to be redeemed by a method that complies with the requirements, if any, of any stock exchange on which the Securities are listed and that the Trustee considers fair and appropriate, which may include selection pro rata or by lot.  The Trustee shall make the selection from Securities outstanding not previously called for redemption.  The Trustee may select for redemption portions of the Principal of Securities that have denominations larger than $1,000.  Securities and portions thereof selected by the Trustee shall be in amounts of $1,000 or whole multiples of $1,000.  Provisions of this Indenture that apply to Securities called for redemption also apply to portions of Securities called for redemption.

-7- 

 

Section 3.03  Notice of Redemption.  At least 30 days but not more than 60 days before a redemption date, the Company shall mail a notice of redemption to each Holder whose Securities are to be redeemed.

The notice shall state that it is a notice of redemption, identify the Securities to be redeemed and shall state:

(1) the redemption date;

(2) the redemption price;

(3) the name and address of the Paying Agent and Conversion Agent;

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

(5) that, unless the Company defaults in making such redemption payment or the Paying Agent is prohibited from making such payment pursuant to the terms of this Indenture, interest on Securities (or portion thereof) called for redemption ceases to accrue on and after the redemption date; and

(6) list the CUSIP number of the Securities and state that no representation is made as to the correctness or accuracy of the CUSIP number, if any, listed in such notice or printed on the Securities.

At the Company's request, the Trustee shall give the notice of redemption in the Company's name and at its expense.

Section 3.04  Effect of Notice of Redemption.  Once notice of redemption is mailed, Securities called for redemption become due and payable on the redemption date at the redemption price.  Upon surrender to the Paying Agent, such Securities shall be paid at the redemption price stated in the notice, plus accrued interest to the redemption date.  Failure to give notice or any defect in the notice to any Holder shall not affect the validity of the notice to any other Holder.

Section 3.05  Deposit of Redemption Price.  On or before the redemption date, the Company shall deposit with the Paying Agent (or, if the Company or any Affiliate is the Paying Agent, shall segregate and hold in trust) money sufficient to pay the redemption price of, and accrued interest on, all Securities to be redeemed on that date other than Securities or portions of Securities called for redemption which have been delivered by the Company to the Registrar for cancellation.  The Paying Agent shall return to the Company any money not required for that purpose because of conversion of Securities.

-8- 

Unless the Company shall default in the payment of Securities (and accrued interest) called for redemption, interest on such Securities shall cease to accrue after the redemption date.

Section 3.06  Securities Redeemed in Part.  Upon surrender of a Security that is redeemed in part, the Company shall deliver to the Holder (at the Company's expense) a new Security equal in Principal amount to the unredeemed portion of the Security surrendered.

ARTICLE 4

Covenants

Section 4.01  Payment of Securities.  The Company shall pay the Principal of and interest on the Securities on the dates and in the manner provided in the Securities and this Indenture.  Principal and interest shall be considered paid on the date due if the Paying Agent holds in accordance with this Indenture on that date money sufficient to pay all Principal and interest then due and the Paying Agent is not prohibited from paying such money to the Holders on such date pursuant to the terms of this Indenture.

The Company shall pay interest on overdue Principal at the rate borne by the Securities; it shall pay interest on overdue Defaulted Interest at the same rate to the extent lawful.

Section 4.02  SEC Reports.  The Company shall file with the Trustee within 15 days after it files them with the SEC copies of the annual reports and of the information, documents, and other reports which the Company is required to file with the SEC pursuant to Section 13 or 15(d) of the Exchange Act.  The Company will cause any quarterly and annual reports which it makes available to its stockholders to be mailed to the Holders.  The Company will also comply with the other provisions of TIA § 314(a).  Delivery of such reports, information and documents to the Trustee is for informational purposes only and the Trustee's receipt of such shall not constitute notice or constructive 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 Officers' Certificates).

Section 4.03  Compliance Certificate.  The Company shall deliver to the Trustee, within [105] days after the end of each fiscal year of the Company, a brief certificate signed by the principal executive officer, principal financial officer or principal accounting officer of the Company, as to the signer's knowledge of the Company's compliance with all conditions and covenants contained in this Indenture (determined without regard to any period of grace or requirement of notice provided herein).

Section 4.04  Notice of Certain Events.  The Company shall give prompt written notice to the Trustee and any Paying Agent of (i) any Proceeding, (it) any Default or Event of Default, (iii) any cure or waiver of any Default or Event of Default, and (iv) if and when the Securities are listed on any stock exchange.

-9- 

ARTICLE 5

Successors

Section 5.01  When Company May Merge, etc.

  The Company shall not consolidate or merge with or into, or transfer all or substantially all of its assets to, any Person unless:

(1) either the Company shall be the resulting or surviving entity or such person is a corporation organized and existing under the laws of the United States, a State thereof or the District of Columbia;

(2) if the Company is not the resulting or surviving entity, such Person assumes by supplemental indenture all the obligations of the Company under the Securities and this Indenture; and

(3) immediately before and immediately after the transaction no Default exists.

The Company shall deliver to the Trustee prior to the proposed transaction an Officers' Certificate and an Opinion of Counsel, each of which shall state that such consolidation, merger or transfer and such supplemental indenture comply with this Article 5 and that all conditions precedent herein provided for relating to such transaction have been complied with.

Section 5.02  Successor Corporation Substituted.  Upon any consolidation or merger, or any transfer 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 which the Company is merged or to which such transfer is made shall succeed to, and be substituted for, and may exercise every right and power of, the Company under this Indenture and the Securities with the same effect as if such successor corporation had been named as the Company herein and in the Securities.  Thereafter the obligations of the Company under the Securities and Indenture shall terminate except for the obligation to pay the Principal of and interest on the securities in the case of a transfer.

ARTICLE 6

Defaults and Remedies

Section 6.01  Events of Default.  An “Event of Default” occurs if:

(1) the Company Defaults in the payment of interest on any Security when the same becomes due and payable and such Default continues for a period of [30] days;

(2) the Company Defaults in the payment of the Principal of any Security when the same becomes due and payable at maturity, upon redemption or otherwise;

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(3) the Company fails to comply with any of its other agreements in the Securities or this Indenture and such failure continues for the period and after the notice specified below;

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

(A) commences a voluntary case,

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

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

(D) makes a general assignment for the benefit of its creditors; or

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

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

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

(C) orders the liquidation of the Company, and the order or decree remains unstayed and in effect for 60 days.

The foregoing will constitute Events of Default whatever the reason for any such Event of Default, whether it is voluntary or involuntary, or is effected by operation of law or pursuant to any judgment, decree or order of any court or any order, rule or regulation of any administrative or governmental body.

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.

A Default under clause (3) is not an Event of Default until the Trustee or the Holders of at least 25% in Principal amount of the Securities notify the Company and the Trustee of the Default and the Company does not cure the Default, or it is not waived, within [60] days after receipt of the notice.  The notice must specify the Default, demand that it be remedied to the extent consistent with law, and state that the notice is a “Notice of Default”.

Section 6.02  Acceleration.  If an Event of Default occurs and is continuing, the Trustee by notice to the Company, or the Holders of at least 25% in Principal amount of the Securities by notice to the Company and the Trustee, may declare the Principal of and accrued interest on all the Securities to be due and payable.  Upon such declaration the Principal and interest shall be due and payable immediately.

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The Holders of a majority in Principal amount of the Securities by notice to the Company and the Trustee may rescind an acceleration and its consequences if the rescission would not conflict with any judgment or decree and if all existing Events of Default have been cured or waived except nonpayment of Principal or interest that has become due solely because of the acceleration.

Section 6.03  Other Remedies.  If an Event of Default occurs and is continuing, the Trustee may pursue any available remedy to collect the payment of Principal or interest on the Securities or to enforce the performance of any provision of the Securities or this Indenture.

The Trustee may maintain a proceeding even if it does not possess any of the Securities or does not produce any of them in the proceeding.  A delay or omission by the Trustee or any Securityholder in exercising any right or remedy accruing upon an Event of Default shall not impair the right or remedy or constitute a waiver of or acquiescence in the Event of Default.  All remedies are cumulative to the extent permitted by law.

Section 6.04  Waiver of Past Defaults.  The Holders of a majority in Principal amount of the Securities by notice to the Trustee may waive an existing Default and its consequences except:

(1) a Default in the payment of the Principal of or interest on any Security; or

(2) a Default with respect to a provision that under Section 9.02 cannot be amended without the consent of each Securityholder affected; or

Section 6.05  Control by Majority.  The Holders of a majority in Principal amount of the Securities may direct the time, method and place of conducting any proceeding for any remedy available to the Trustee or exercising any trust or power conferred on the Trustee.  However, the Trustee may refuse to follow any direction that conflicts with law or this Indenture, is unduly prejudicial to the rights of other Securityholders, or would involve the Trustee in personal liability or expense for which the Trustee has not received a satisfactory indemnity therefor.

Section 6.06  Limitation on Suits.  A Securityholder may pursue a remedy with respect to this Indenture or the Securities only if:

(1) the Holder gives to the Trustee notice of a continuing Event of Default;

(2) the Holders of at least 25% in Principal amount of the Securities make a request to the Trustee to pursue the remedy;

(3) the Trustee either (i) gives to such Holders notice it will not comply with the request, or (ii) does not comply with the request within [15 or 30] days after receipt of the request; and

(4) the Holders of a majority in Principal amount of the Securities do not give the Trustee a direction inconsistent with the request prior to the earlier of the date, if ever, on which the Trustee delivers a notice under Section 6.06(3)(i) or the expiration of the period described in Section 6.06(3)(ii).

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

Section 6.07  Rights of Holders To Receive Payment.  Notwithstanding any other provision of this Indenture, the right of any Holder of a Security to receive payment of Principal and interest on the Security, on or after the respective due dates expressed in the Security, or to bring suit for the enforcement of any such payment on or after such respective dates, shall not be impaired or affected without the consent of the Holder.

Nothing in this Indenture limits or defers the right or ability of Holders to petition for commencement of a case under applicable Bankruptcy Law to the extent consistent with such Bankruptcy Law.

Section 6.08  Priorities.  After an Event of Default any money or other property distributable in respect of the Company's obligations under this Indenture shall be paid in the following order:

First:  to the Trustee (including any predecessor Trustee) for amounts due under Section 7.07;

Second:  to Securityholders for amounts due and unpaid on the Securities for Principal and interest, ratably, without preference or priority of any kind, according to the amounts due and payable on the Securities for Principal and interest, respectively; and

Third:  to the Company.

The Trustee may fix a record date and payment date for any payment to Securityholders.

Section 6.09  Undertaking for Costs.  In any suit for the enforcement of any right or remedy under this Indenture or in any suit against the Trustee for any action taken or omitted by it as Trustee, a court in its discretion may require the filing by any party litigant in the suit of an undertaking to pay the costs of the suit, and the court in its discretion may assess reasonable costs, including reasonable attorneys' fees, against any party litigant in the suit, having due regard to the merits and good faith of the claims or defenses made by the party litigant.  This Section does not apply to a suit by the Trustee, a suit by a Holder pursuant to Section 6.07 or a suit by Holders of more than 10% in Principal amount of the Securities.

Section 6.10  Proof of Claim.  In the event of any Proceeding, the Trustee may file a claim for the unpaid balance of the Securities in the form required in the Proceeding and cause the claim to be approved or allowed.  Nothing herein contained shall be deemed to authorize the Trustee to authorize or consent to or accept or adopt on behalf of any Securityholder any plan of reorganization, arrangement, adjustment, or composition affecting the Securities or the rights of any Holder thereof, or to authorize the Trustee to vote in respect of the claim of any Securityholder in any Proceeding.

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Section 6.11  Actions of a Holder.  For the purpose of providing any consent, waiver or instruction to the Company or the Trustee, a “Holder” or “Securityholder” shall include a Person who provides to the Company or the Trustee, as the case may be, an affidavit of beneficial ownership of a Security together with a satisfactory indemnity against any loss, liability or expense to such party to the extent that it acts upon such affidavit of beneficial ownership (including any consent, waiver or instructions given by a Person providing such affidavit and indemnity).

ARTICLE 7

Trustee

Section 7.01  Duties of Trustee.    If an Event of Default has occurred and is continuing, the Trustee shall exercise such of the rights and powers vested in it by this Indenture, and use the same degree of care and skill in their exercise, as a prudent person would exercise or use under the circumstances in the conduct of its own affairs.

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

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

(2) 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 certificates or opinions furnished to the Trustee and conforming to the requirements of this Indenture.  However, the Trustee shall examine the certificates and opinions to determine whether or not they conform to the 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:

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

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

(3) The Trustee shall not be liable with respect to any action it takes or omits to take in good faith in accordance with a direction received by it pursuant to Section 6.05.

(4) The Trustee may refuse to perform any duty or exercise any right or power which would require it to expend its own funds or risk any liability if it shall reasonably believe that repayment of such funds or adequate indemnity against such risk is not reasonably assured to it.

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

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

Section 7.02  Rights of Trustee.    The Trustee may rely on any document 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 Officers' Certificate or an Opinion of Counsel.  The Trustee shall not be liable for any action it takes or omits to take in good faith in reliance on the Officers' Certificate or an Opinion of Counsel.  The Trustee may also consult with counsel on any matter relating to the Indenture or the Securities and the Trustee shall not be liable for any action it takes or omits to take in good faith in reliance on the advice of counsel.

(c) The Trustee may act through agents and shall not be responsible for the misconduct or negligence of any agent appointed with due care.

(d) The Trustee shall not be liable for any action it takes or omits to take in good faith which it believes to be authorized or within its rights or powers.

(e) Except in connection with compliance with TIA §310 or §311, the Trustee shall only be charged with knowledge of Trust Officers.

Section 7.03  Individual Rights of Trustee; Disqualification.  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 with the same rights it would have if it were not Trustee.  Any Agent may do the same with like rights.  However, the Trustee is subject to TIA §310(b) and §311.

Section 7.04  Trustee's Disclaimer.  The Trustee shall have no responsibility for 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 7.05  Notice of Defaults.  If a continuing Default is known to the Trustee, the Trustee shall mail to Securityholders a notice of the Default within 90 days after it occurs.  Except in the case of a Default in payment on any Security, the Trustee may withhold the notice if and so long as a committee of its Trust Officers in good faith determines that withholding the notice is in the interests of Securityholders.  [The Trustee shall mail to Securityholders any notice it receives from Securityholder(s) under Section 6.06, and of any notice the Trustee provides pursuant to Section 6.06(3)( 1).]

Section 7.06  Reports by Trustee to Holders.  If required pursuant to TIA §313(a), within 60 days after the reporting date stated in Section 12.09, the Trustee shall mail to Securityholders a brief report dated as of such reporting date that complies with TIA §313(a).  The Trustee also shall comply with TIA §313(b)(2).

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A copy of each report at the time of its mailing to Securityholders shall be filed with the SEC and each stock exchange on which the Securities are listed.

Section 7.07  Compensation and Indemnity.  The Company shall pay to the Trustee from time to time reasonable compensation for its services, including for any Agent capacity in which it acts.  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 out-of-pocket expenses of the Trustee's agents and counsel.

The Company shall indemnify the Trustee against any loss, liability or expense incurred by it including in any Agent capacity in which it acts.  The Trustee shall notify the Company promptly of any claim for which it may seek indemnity.  The Company shall defend the claim and the Trustee shall cooperate in the defense.  The Trustee may have separate counsel and the Company shall pay the reasonable fees and expenses of such counsel.  The Company need not pay for any settlement made without its consent, which consent shall not unreasonably be withheld.

The Company need not reimburse any expense or indemnify against any loss or liability incurred by the Trustee through gross negligence, wilful misconduct or bad faith.

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

Without prejudice to its rights hereunder, when the Trustee incurs expenses or renders services after an Event of Default specified in Section 6.01(4) or (5) occurs, the expenses and the compensation for the services are intended to constitute expenses of administration under any Bankruptcy Law.

Section 7.08  Replacement of Trustee.  A resignation or removal of the Trustee and appointment of a successor Trustee shall become effective only upon the successor Trustee's acceptance of appointment as provided in this Section.

The Trustee may resign by so notifying the Company.  The Holders of a majority in Principal amount of the Securities may remove the Trustee by so notifying the Trustee and the Company.  The Company may remove the Trustee if:

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

(2) the Trustee is adjudged a bankrupt or an insolvent;

(3) a receiver or public officer takes charge of the Trustee or its property; or

(4) the Trustee becomes incapable of acting.

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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.

If a successor Trustee is not appointed and does not take office within 30 days after the retiring Trustee resigns, the retiring Trustee may appoint a successor Trustee at any time prior to the date on which a successor Trustee takes office.  If a successor Trustee does not take office within [45] days after the retiring Trustee resigns or is removed, the retiring Trustee, the Company or, subject to Section 6.09, any Securityholder may petition any court of competent jurisdiction for the appointment of a successor Trustee.

If the Trustee fails to comply with Section 7.10, any Securityholder may petition any court of competent jurisdiction for the removal of the Trustee and the appointment of a successor Trustee.  Within one year after a successor Trustee appointed by the Company or a court pursuant to this Section 7.08 takes office, the Holders of a majority in Principal amount of the Securities may appoint a successor Trustee to replace such successor Trustee.

A successor Trustee shall deliver a written acceptance of its appointment to the retiring Trustee and to the Company.  Thereupon 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 under this Indenture.  The successor Trustee shall mail a notice of its succession to Securityholders.  The retiring Trustee shall promptly transfer all property held by it as Trustee to the successor Trustee, subject to the lien provided for in Section 7.07.

Section 7.09  Successor Trustee by Merger, etc.  If the Trustee consolidates, merges or converts into, or transfers all or substantially all of its corporate trust business to, another corporation, the successor corporation without any further act shall be the successor Trustee, if such successor corporation is eligible and qualified under Section 7.10.

Section 7.10  Eligibility.  This Indenture shall always have a Trustee who satisfies the requirements of TIA §310(a)(1) and §310(a)(2).  The Trustee shall always have a combined capital and surplus as stated in Section 12.09.

Section 7.11  Preferential Collection of Claims Against Company.  Upon and so long as the Indenture is qualified under the TIA, 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 is subject to TIA §311(a) to the extent indicated.

ARTICLE 8

Satisfaction and Discharge

Section 8.01  Satisfaction and Discharge of Indenture.  This Indenture shall cease to be of further effect (except as to any surviving rights of conversion, registration of transfer or exchange of Securities expressly provided for herein), and the Trustee, on demand of and at expense of the Company, shall execute proper instruments acknowledging satisfaction and discharge of this Indenture, when

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(1) either

(A) all Securities theretofore authenticated and delivered (other than (i) Securities which have been destroyed, lost or stolen and which have been replaced or paid as provided in Section 2.07 and (ii) Securities for whose payment money has theretofore been deposited in trust or segregated and held in trust by the Company and thereafter repaid to the Company or discharged from such trust, as provided in Section 8.04) have been delivered to the Trustee for cancellation; or

(B) all such Securities not theretofore delivered to the Trustee for cancellation

(i) have become due and payable, or

(ii) will become due and payable at their stated maturity within one year, or

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

and the Company in the case of (i), (ii), and (iii) above, has deposited or caused to be deposited with the Trustee as trust funds in trust for the purpose an amount of money or U.S. Government Obligations sufficient to pay and discharge the entire indebtedness on such Securities not theretofore delivered to the Trustee for cancellation, for Principal and interest to the date of such deposit (in the case of Securities which have become due and payable) or to the stated maturity or redemption date, as the case may be;

(2) the Company has paid or caused to be paid all other sums payable hereunder by the Company; and

(3) the Company has delivered to the Trustee an Officers' Certificate and an Opinion of Counsel, each stating that all conditions precedent herein provided for relating to the satisfaction and discharge of this Indenture have been complied with.

Notwithstanding the satisfaction and discharge of this Indenture, the obligations of the Company to the Holders under Section 4.01, to the Trustee under Section 7.07, and, if money or U.S. Government Obligations shall have been deposited with the Trustee pursuant to subclause (B) of Clause (1) of this Section, the obligations of the Trustee under Section 8.02 shall survive.

Section 8.02  Application of Trust Funds.  The Trustee or Paying Agent shall hold in trust, for the benefit of the Holders, all money and U.S. Government Obligations deposited with it (or into which such money and U.S. Government Obligations are reinvested) pursuant to Section 8.01.  It shall apply such deposited money and money from U.S. Government Obligations in accordance with this Indenture to the payment of the Principal and interest on the Securities.  Money and U.S. Government Obligations so held in trust are subject to the Trustee's rights under Section 7.07.

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Section 8.03  Reinstatement.  If the Trustee or Paying Agent is unable to apply any money or U.S. Obligations in accordance with Section 8.01 by reason of any order or judgment of any court or governmental authority enjoining, restraining or otherwise prohibiting such application, then the Company's obligations under this Indenture and the Securities shall be revived and reinstated as though no deposit had occurred pursuant to this Article 8, until such time as the Trustee or Paying Agent is permitted to apply all such money or U.S. Government Obligations in accordance with Section 8.01; provided, however, that if the Company makes any payment of Principal of or interest on any Security following 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 after payment in full to the Holders.

Section 8.04  Repayment to Company.  The Trustee and Paying Agent shall promptly turn over to the Company upon request any excess money or U.S. Government Obligations held by them at any time.  All money or U.S. Government Obligations deposited with the Trustee pursuant to Section 8.01 (and held by it or a Paying Agent) for the payment of Securities subsequently converted shall be returned to the Company upon request.

The Trustee and the Paying Agent shall pay to the Company upon request any money held by them for payment of Principal or interest that remains unclaimed for two years after the right to such money has matured.  After payment to the Company, Securityholders entitled to the money shall look to the Company for payment as unsecured general creditors unless an abandoned property law designates another Person.

ARTICLE 9

Amendments

Section 9.01  Without Consent of Holders.  The Company and the Trustee may amend this Indenture or the Securities without the consent of any Securityholder:

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

(2) to comply with Sections 5.01; or

(3) to make any change that does not adversely affect the rights of any Securityholder.

Section 9.02  With Consent of Holders.  The Company and the Trustee may amend this Indenture or the Securities with the written consent of the Holders of at least a majority in Principal amount of the Securities.  However, without the consent of each Securityholder affected, an amendment under this Section may not:

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(1) reduce the amount of Securities whose Holders must consent to an amendment;

(2) reduce the interest on or change the time for payment of interest on any Security;

(3) reduce the Principal of or change the fixed maturity of any Security;

(4) reduce the premium payable upon the redemption of any Security or change the time at which any Security may or shall be redeemed;

(5) make any Security payable in money other than that stated in the Security;
 

(6) make any change in Section 6.04, 6.07 or 9.02 (second sentence);

(7) make any change that adversely affects the right to convert any Security; or

(8) make any change that adversely affects the preference or priority of the Security.
 

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

Section 9.03  Compliance with Trust Indenture Act and Section 12.03.  Every amendment to this Indenture or the Securities shall comply with the TIA as then in effect, so long as the Indenture and Securities are subject to the TIA.  The Trustee is entitled to, and the Company shall provide an Opinion of Counsel and Officers' Certificate that the Trustee's execution of any amendment or supplemental indenture is permitted under this Article 9.

Section 9.04  Revocation and Effect of Consents and Waivers.  A consent to an amendment or a waiver by a Holder of a Security shall bind the Holder and every subsequent Holder of that Security or portion of the Security that evidences the same debt as the consenting Holder's Security, even if notation of the consent or waiver is not made on the Security.  However, any such Holder or subsequent Holder may revoke the consent or Waiver as to such Holder's Security or portion of the Security if the Trustee receives the notice of revocation before the date the amendment or waiver becomes effective.  After an amendment or waiver becomes effective, it shall bind every Securityholder.

The Company may, but shall not be obligated to, fix a record date for the purpose of determining the Securityholders 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 immediately preceding paragraph, those Persons who were Securityholders 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 120 days after such record date.

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Section 9.05  Notice of Amendment; Notation on or Exchange of Securities.  After any amendment under this Article becomes effective, the Company shall mail to Securityholders a notice briefly describing such amendment.  The failure to give such notice to all Securityholders, or any defect therein, shall not impair or affect the validity of an amendment under this Article.

The Company or the Trustee may place an appropriate notation about an amendment or waiver on any Security thereafter authenticated.  The Company may issue in exchange for affected Securities new Securities that reflect the amendment or waiver.

Section 9.06  Trustee Protected.  The Trustee need not sign any supplemental indenture that adversely affects its rights.

ARTICLE 10

Conversion

Section 10.01  To be Supplemented.   If a Security is to be convertible into common shares or other securities of the Company, then the Company and the Trustee may enter into a supplemental indenture setting forth the conversion rights of the Holder of a Security.

ARTICLE 11

Subordination

Section 11.01  To be Supplemented.  If a Security is to be subordinated to other debt securities of the Company, then the Company and the Trustee may enter into a supplemental indenture setting forth the provisions governing such subordination.

ARTICLE 12

Miscellaneous

Section 12.01  Notices.  Any notice by one party to the other shall be in writing and sent to the other's address stated in Section 12.09.  The notice is duly given if it is delivered in Person or sent by a national courier service which provides next Business Day delivery or by first-class mail.

A party by notice to the other party may designate additional or different addresses for subsequent notices

Any notice sent to a Securityholder shall be mailed by first-class letter mailed to its address shown on the register kept by the Registrar.  Failure to mail a notice to a Securityholder or any defect in a notice mailed to a Securityholder shall not affect the sufficiency of the notice mailed to other Securityholders.

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If a notice is delivered or mailed in the manner provided above within the time prescribed, it is duty given, whether or not the addressee receives it.

If the Company mails a notice to Securityholders, it shall deliver or mail a copy to the Trustee and each Agent at the same time.

A “notice” includes any communication required by this Indenture.

Section 12.02  Communication by Holders with Other Holders.  Securityholders may communicate pursuant to TIA §312(b) with other Securityholders with respect to their rights under this Indenture or the Securities.  The Company, the Trustee, and Registrar and anyone else shall have the protection of TIA §312(c).

Section 12.03  Certificate 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:

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

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

Section 12.04  Statements Required in Certificate or Opinion.  Each certificate or opinion with respect to compliance with a condition or covenant provided for in this Indenture shall include:

(1) a statement that each Person making such certificate or opinion has read such covenant or condition;

(2) 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;

(3) 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
 

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

Section 12.5  Rules by' Trustee and Agents.  The Trustee may make reasonable hales for action by or a meeting of Securityholders.  The Agent may make reasonable rules and set reasonable requirements for its functions.

Section 12.6  Legal Holidays.  A “Legal Holiday” is a Saturday, a Sunday or a day on which banking institutions are not required to be open.  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.

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Section 12.7  No Recourse Against Others.  A director, officer, employee or stockholder, 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.

Section 12.8  Duplicate Originals.  The parties may sign any number of copies, and may execute such in counterparts, of this Indenture.  One signed copy is enough to prove this Indenture.

Section 12.9  Variable Provisions.  “Officer” means the President, any Vice-President, the Treasurer, the Secretary, any Assistant Treasurer or any Assistant Secretary of the Company.

The Company initially appoints the Trustee as Registrar, Paying Agent and Conversion Agent.

The first certificate pursuant to Section 4.03 shall be for the fiscal year ending on ____________, 20__.

The reporting date for Section 7.06 is ____________ of each year.  The first reporting date is __________________.

The Trustee shall always have a combined capital and surplus of at least S as set forth in its most recent published annual report of condition. The Trustee will be deemed to be in compliance with the capital and surplus requirement set forth in the preceding sentence if its obligations are guaranteed by a Person which could otherwise act as Trustee, hereunder and which meets such capital and surplus requirement and the Trustee has at least the minimum capital and surplus required by TIA §310(a)(2).

In determining whether the Trustee has a conflicting interest as defined in TIA §310(b)(I), the following is excluded: Indenture dated as of  [______] , between the Company and [_____________], Trustee for the ___% Debentures Due ___.

The Company's address is:

2838 Bovaird Drive West

Brampton, Ontario L7A 0H2

Canada

Facsimile No.:  [_____________]

Attention:  [_________________]

The Trustee's address is:

[Trustee's Name]

[Address]

Facsimile No.:  [_____________]

Attention:  [_________________]

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Section 12.10  Governing Law.  The laws of the [State of ________________] shall govern this Indenture and the Securities.

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  Dated:

	
  
  SUNOPTA INC.

By: _____________________
 

Name:

            Title:

	
  
  Attest:

  

_______________

Name:

Title:

	 
	 	 
	
  
  Dated:  

	
  
  [_______________________________]

By: ____________________

 

Name:

            Title:

	
  
  Attest:

  

_________________

Name:

Title:

	 

-25- 

EXHIBIT A

(Face of Security)

	No.	$

 

SUNOPTA INC.

___% Debenture Due ________

Interest Payment Dates: _____________________

Record Dates: _____________________

SunOpta Inc. promises to pay to _________________, or registered assigns, the sum of ________________________________ Dollars on _____________.

See the reverse and the Indenture referenced for additional provisions of this Security.

	
  
  Dated:

	 
	
  
  Authenticated:

[______________________] as Trustee

	
  
  

SUNOPTA INC.

	
  
  By: __________________________

Authorized Officer

	
  
  By :_________________________

By :_________________________

	 	
  
  [SEAL]

A-1 

 
(Back of Security)

SUNOPTA INC.

_____ % Debenture Due ________

1.

Interest.  SunOpta Inc. (“Company”), a corporation organized and existing under the laws of Canada, promises to pay interest on the principal amount of this Security at the rate per annum shown above.  The Company will pay interest semiannually on ______________ and ____________ of each year.  Interest on Securities will accrue from the most recent date to which interest has been paid or, if no interest has been paid, from _____________.  Interest will be computed on the basis of a 360-day year of twelve 30-day months.

2.

Method of Payment.  The Company will pay interest on the Securities to the Persons who are registered holders of Securities at the close of business on the record date for the next interest payment date, except as otherwise provided herein or in the Indenture.  Holders must surrender Securities to a Paying Agent to collect principal payments.  The Company will pay Principal and interest in money of the United States that at the time of payment is legal tender for payment of public and private debts.  However, the Company may pay Principal and interest by check payable in such money.  It may mail an interest check to a record date holder's registered address.

3.

Bond Agents.  Initially, [_____________] (“Trustee”), [address], will act as Registrar, Paying Agent and Conversion Agent.  The Company may change any such Agent without notice.  The Company or an Affiliate may act in any such capacity.  Subject to certain conditions, the Company may change the Trustee.

4.

Indenture.  The Company issued the Securities under an Indenture dated as of [__________] (“Indenture”) between the Company and the Trustee.  The terms of the Securities include those stated in the Indenture and those made part of the Indenture by the Trust Indenture Act of 1939 (15 U.S. Code §§77aaa-77bbbb) (“the Act”).  The Securities are subject to all such terms, and Securityholders are referred to the Indenture and the Act for a statement of such terms.  The Securities are unsecured general obligations of the Company limited to $ _______ in aggregate principal amount.

5.

Redemption.  [The Securities may not be redeemed at the option of the Company prior to (date).]  The Company may redeem all the Securities at any time or some of them from time to time [after (date)] at the following redemption prices (expressed in percentages of principal amount), plus accrued interest to the redemption date:

If redeemed during the 12-month period beginning

	
  
  Year

	
  
  Percentage

	
  
  Year

	
  
  Percentage

6.

Mandatory Redemption.  The Company will redeem $ ________ principal amount of Securities on _____________ and on each _______________ thereafter through _______________ at a redemption price of 100% of principal amount, plus accrued interest to the redemption date.
 

A-2 

The Company may reduce the principal amount of Securities to be redeemed pursuant to this paragraph by subtracting 100% of the principal amount (excluding premium) of any Securities that have been previously cancelled, that the Company has delivered to the Trustee for cancellation or that the Company has redeemed other than pursuant to this paragraph.  The Company may so subtract the same Security only once.

7.

Additional Optional Redemption.  In addition to redemptions pursuant to paragraph 6, the Company may redeem not more than $_______ principal amount of Securities on ______________ and on each ______________ thereafter through ______________ at a redemption price of 100% of principal amount, plus accrued interest to the redemption date.

8.

Notice of Redemption.  Notice of redemption will be mailed at least 30 days but not more than 60 days before the redemption date to each holder of Securities to be redeemed at his registered address.

9.

Denominations, Transfer, Exchange.  The Securities are in registered form without coupons in denominations of $1,000 and whole multiples of $1,000.  The transfer of Securities may be registered and Securities may be exchanged as provided in the indenture.  The Registrar may require a holder, among other things, to furnish appropriate endorsements and transfer documents and to pay any taxes required by law.  The Registrar need not exchange or register the transfer of any Security or portion of a Security selected for redemption.  Also, it need not exchange or register the transfer of any Securities for a period of 15 days before a selection of Securities to be redeemed.

10.

Persons Deemed Owner.  Subject to Section 6.11, the registered holder of a Security may be treated as its owner for all purposes.

11.

Amendments and Waivers.  Subject to certain exceptions, the Indenture or the Securities may be amended, and any Default may be waived, with the consent of the holders of a majority in Principal amount of the Securities.  Without the consent of any Securityholder, the Indenture or the Securities may be amended to cure any ambiguity, defect or inconsistency, to provide for assumption of Company obligations to Securityholders or to make any, change that does not adversely affect the rights of any Securityholder.

12.

Successor.  When successors assume all the obligations of the Company under the Securities and the Indenture, the Company will be released from those obligations, except as provided in the Indenture.
 

13.

Defeasance Prior to Redemption or Maturity.  Subject to certain conditions, the Company at any time may terminate some or all of its obligations under the Securities and the Indenture if the Company deposits with the Trustee money or U.S. Government Obligations for the payment of Principal and interest on the Securities to redemption or maturity.

14.

Defaults and Remedies.  Subject to the Indenture, if an Event of Default, as defined in the Indenture, occurs and is continuing, the Trustee or the holders of at least 25% in Principal amount of the Securities may declare all the Securities to be due and payable immediately.  Securityholders may not enforce the Indenture or the Securities except as provided in the Indenture.  The Trustee may require indemnity satisfactory to it before it enforces the indenture or the Securities.  Subject to certain limitations, holders of a majority in Principal amount of the Securities may direct the Trustee in its exercise of any trust or power.  The Trustee may withhold from Securityholders notice of any continuing Default (except a Default in payment of Principal or interest) if it determines that withholding notice is in their interests.  The Company must furnish an annual compliance certificate to the Trustee.

A-3 

15.

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

16.

No Recourse Against Other.  A director, officer, employee or stockholder, 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.

17.

Authentication.  This Security shall not be valid until authenticated by a manual signature of the Trustee.

18.

Abbreviations.  Customary abbreviations may be used in the name of a Securityholder or an assignee, such as: TEN COM (= tenants in common), TEN ENT (= tenants by the entireties), JT TEN (= joint tenants with right of survivorship and not as tenants in common), CUST (= Custodian), and U/G/M/A (= Uniform Gifts to Minors Act).

The Company will furnish to any Securityholder upon written request and without charge a copy of the Indenture.  Requests may be made to: SunOpta Inc., 2838 Bovaird Drive West, Brampton, Ontario, L7A 0H2, Canada.EXHIBIT 10-1

RENEWAL REVOLVING LINE OF CREDIT
 PROMISSORY NOTE

	
  
$3,000,000.00
  	
  
September 28, 2006
  
	
  
 
  	
  
Dated effective August 26, 2006
  
	
  
 
  	
  
Orlando, Florida
  

          FOR VALUE RECEIVED, the undersigned, THE GOLDFIELD CORPORATION, a Delaware corporation (“Maker”) promises to pay to the order of BRANCH BANKING AND TRUST COMPANY (hereinafter called the “Bank” or, together with any other holder of this Note, the “Holder”) or order, at its place of business at 1300 South Babcock Street, Melbourne, Florida 32901, or at such other place as the Holder of this Note may designate in writing, the principal sum of THREE MILLION AND NO/100 DOLLARS ($3,000,000.00), together with interest thereon at the Interest Rate, in lawful money of the United States, which shall be legal tender in payment of all debts and dues, public and private, at the time of said payment, said principal and interest to be payable as set forth below.

          1.        INTEREST RATE. The Interest Rate shall equal the adjusted LIBOR Rate, as defined below:

	
  
 
  	
  
             a.          Adjusted
LIBOR Rate means a rate of interest per annum equal to the sum obtained
(rounded upwards, if necessary, to the next higher 1/100th of 1.0%)
by adding (i) the One Month LIBOR plus (ii) one and eight one-tenths
percent (1.800%) per annum, which shall be adjusted monthly on the first
day of each month for each LIBOR Interest Period. If the first day of any month
falls on a date when the Bank is closed, the Adjusted LIBOR Rate shall be
determined as of the last preceding business day. The Adjusted LIBOR Rate shall
be adjusted for any change in the LIBOR Reserve Percentage so that Bank shall
receive the same yield. The interest rate shall not exceed a fixed maximum rate
of 99.000  % and will not decrease below a minimum rate of 0.00  %.
 
	
  
 
  	
  
 
  
	
  
 
  	
  
             b.          One
Month LIBOR means the average rate (rounded upwards, if necessary, to the
next higher 1/100th of 1.0%) quoted on Bloomberg Screen MMR2 or page
3750 (or such replacement page) of the Telerate Service on the determination
date for deposits in U.S. Dollars offered in the London interbank market for one
month, or if the above method for determining LIBOR shall not be available, the
rate quoted in The Wall Street Journal, a rate determined by a substitute
method of determination agreed on by Borrower and Bank; provided, if such
agreement is not reached within a reasonable period of time (in Bank’s
judgment), a rate reasonably determined by Bank in its sole discretion as a rate
being paid, as of the determination date, by first class banking organizations
(as determined by Bank) in the London interbank market for U.S. Dollar
deposits.
 
	
   
  	
  
 
  
	
  
 
  	
  
             c.          LIBOR
Advance means the term loan advances made by Bank to Borrower evidenced by
this Note upon which the adjusted LIBOR Rate of interest shall apply.

	
  
 
  	
  
 
  
	
  
 
  	
  
             d.          LIBOR
Interest Period means a period of one calendar month as may be elected by
the Borrower applicable to any LIBOR Advance which shall begin on first day of
any month notwithstanding the maturity date of this Note; provided, however,
that a LIBOR Interest Period may be less than one calendar month in and only in
the calendar month in which the Note originates or matures.
 
	
  
 
  	
  
 
  
	
  
 
  	
  
             e.          LIBOR
Reserve Percentage means the maximum aggregate rate at which reserves
(including, without limitation, any marginal supplemental or emergency reserves)
are required to be maintained under Regulation D by member banks of the Federal
Reserve System with respect to dollar funding in the London interbank market.
Without limiting the effect of the foregoing, the LIBOR Reserve Percentage shall
reflect any other reserves required to be maintained by such member banks by
reason of any applicable regulatory change against (i) any category of liability
which includes deposits by reference to which the Adjusted LIBOR Rate is to be
determined or (ii) any category of extensions of credit or other assets related
to LIBOR.
 

	
  
 
  	
  
          f.          Standard Rate means, for any day, a rate   per annum (rounded upwards, if necessary to the next higher 1/100th   of 1.0%) equal to the Bank’s announced Prime Rate, and each change in the   Standard Rate shall be effective on the date any change in the Prime Rate is   publicly announced as being effective.
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          g.          Application   of Adjusted LIBOR Rate. The adjusted LIBOR Rate shall apply to the entire   principal balance outstanding of a term loan for any LIBOR Interest Period.
  
	
  
 
  	
  
 
  
	
  
 
  	
  
          h.          Adjusted   LIBOR Based Rate Protections.
  
	
  
 
  	
  
 
  
	
   
  	
  
                       (i)          Inability   to Determine Rate. In the event that Bank shall have determined, which   determination shall be final, conclusive and binding, that by reason of   circumstances occurring after the date of this Note affecting the London   interbank market, adequate and fair means do not exist for ascertaining the   LIBOR on the basis provided for in this Note, Bank shall give notice (by   telephone confirmed in writing or by telecopy) to Borrower of such   determination, whereupon (a) no LIBOR Advance shall be made until Bank   notifies Borrowers that the circumstances giving rise to such notice no   longer exist, and (b) any request by Borrowers for a LIBOR Advance shall be   deemed to be a request for an advance at the Standard Rate.
  
	
  
 
  	
  
 
  
	
  
 
  	
  
                       (ii)         Illegality;   Impracticability. In the event that Bank shall determine, which   determination shall be final, conclusive and binding, that the making,   maintaining or continuance of any portion of a LIBOR Advance (a) has become   unlawful as a result of compliance by Bank with any law, treaty, governmental   rule, regulation, guideline or order (or would conflict with any of the same   not having the force of law even though the failure to comply therewith would   not be unlawful), or (b) has become impracticable, or would cause Bank   material hardship, as a result of contingencies occurring after the date of   this Note materially and adversely affect the London interbank market or   Bank’s ability to make LIBOR Advances generally, then, and in any such
event,   Bank shall give notice (by telephone confirmed in writing or by telecopy) to   Borrower of such determination. Thereafter, (x) the obligation of Bank to   make any LIBOR Advances or to convert any portion of the loan to a LIBOR   Advance shall be suspended until such notice shall be withdrawn by Bank, and   (y) any request by Borrower for a LIBOR Advance shall be deemed to be a   request for an advance at the Standard Rate.
  
	
   
  	
  
 
  
	
  
 
  	
  
             i.          Interest
Calculation. All interest shall be computed and charged for the actual
number of days elapsed on the basis of a year consisting of three hundred sixty
(360) days.
 

          2.        MATURITY DATE.  August 26, 2007.

          3.        PAYMENTS. Interest at the Interest Rate on the principal balance of the indebtedness outstanding from time to time shall be payable beginning on September 26, 2006, and shall be payable on the 26th day of each successive month thereafter until the Maturity Date at which time all unpaid principal and interest shall be payable in full.

          4.        RIGHT TO SETOFF. Holder is given a lien upon and a security interest in all property of the undersigned now or at any time hereafter in the possession of Holder in any capacity whatsoever, including but not limited to any balance or share of any deposit, certificate of deposit, trust or agency account, as security for the payment of this Note and the Holder is hereby authorized to apply, on or after maturity (whether by a acceleration or otherwise) to the payment of this debt any such funds or property in possession of the Holder belonging to each Obligor, in such order of application as Holder may from time to time elect, without advance notice.

          5.        DEFAULT RATE.  This Note and all sums due hereunder shall bear interest from the date when due (without any prior notice from Holder to Maker or any Obligor), whether by lapse of time or on acceleration, and also after any judgment which may be entered against any Obligor and in favor of Holder, at the Default Rate (as hereinafter defined) until paid.  The Default Rate shall be a rate of interest equal to the Bank’s Prime Rate plus 5% per annum.

2

          6.        INTEREST LIMITATION.  Anything in this Note or any other agreements or arrangements with the undersigned in connection with the loan evidenced by this Note to the contrary notwithstanding, in no event shall the amount of interest due hereunder, together with all amounts reserved, charged, or taken by Holder as compensation for fees, services, or expenses incidental to the making, negotiation or collection of the loan evidenced hereby, which are deemed to be interest under applicable law, exceed the maximum rate of interest on the unpaid principal balance hereof allowed from time to time by applicable law.  If any sum is collected in excess of the applicable maximum rate of interest, the excess sum collected shall be applied to reduce the principal debt or be refunded to Maker, at Holder’s option.

          7.        CONSENT AND WAIVER.  Each Obligor (which term shall mean and include each Borrower, Maker, Guarantor, and all others who may become liable for all or any part of the obligations evidenced and secured hereby), does hereby, jointly and severally:  (a) consent to any forbearance or extension of the time or manner of payment hereof and to the release of all or any part of any security held by the Holder to secure payment of this Note and to the subordination of the lien of the mortgage and any other instrument of security securing this Note as to all or any part of the property encumbered thereby, all without notice to or consent of that party;  (b) agree that no course of dealing or delay or omission or forbearance on the part of the Holder in exercising or enforcing any of its rights or remedies hereunder or under any instrument
securing this Note shall impair or be prejudicial to any of the Holder’s rights and remedies hereunder or to the enforcement hereof and that the Holder may extend, modify or postpone the time and manner of payment and performance of this Note and any instrument securing this Note, may grant forbearances and may release, wholly or partially, any security held by the Holder as security for this Note and release, partially or wholly, any person or party primarily or secondarily liable with respect to this Note, all without notice to or consent by any party primarily or secondarily liable hereunder and without thereby releasing, discharging or diminishing its rights and remedies against any other party primarily or secondarily liable hereunder;  (c) waive notice of acceptance of this Note, notice of the occurrence of any default hereunder or under any instrument securing this Note and presentment, demand, protest, notice of dishonor and notice of protest and notices of any and all action at any
time taken or omitted by the Holder in connection with this Note or any instrument securing this Note and waives all requirements necessary to hold that party to the liability of that party;  (d) waive any “venue privilege” and/or “diversity of citizenship privilege” which they have now or have in the future, and do hereby specifically agree, notwithstanding the provision  of any state or federal law to the contrary, that the venue for the enforcement, construction or interpretation of this Note shall be the County Court, Circuit Court or Federal Court selected by the Holder hereof and they do hereby specifically waive the right to sue or be sued in the court of any other county in the State of Florida, any court in any other state or country or in any federal court, or in any state or federal administrative tribunal.

          8.         ATTORNEYS’ FEES.  All parties liable for the payment of this Note agree to pay the Holder in addition to the principal, premium and interest due and payable hereon, reasonable paralegal fees, attorneys’ fees and costs, whether or not an action be brought, for the services of counsel employed after maturity or default to collect this Note or any principal or interest due hereunder, or to protect the security, if any, or enforce the performance of any other agreement contained in this Note or in any instrument of security executed in connection with the loan evidenced hereby, including, but not limited to costs, paralegal fees and attorneys’ fees and costs on any trial, or appellate proceedings, or in any proceedings under the United States Bankruptcy Code or in any post judgment proceedings.

          9.        EVENTS OF DEFAULT.  The failure to pay any part of the principal or interest when due on this Note or to fully perform any covenant, obligation or warranty on this or on any other liability to the Bank by any one or more of the undersigned, by any affiliate of the undersigned (as defined in 11USC Section (101) (2)), or by any guarantor or surety of this Note (said affiliate, guarantor, or surety are herein called Obligor); or if any financial statement or other representation made to the Bank by any of the undersigned or any Obligor shall be found to be materially incorrect or incomplete; or if any of the undersigned shall fail to furnish information to the Bank sufficient to verify the identity of the undersigned as required under the USA Patriot Act; or in the event of a default under any of the Agreements or any other obligation of any of
the undersigned or any Obligor; or in the event the Bank demands that the undersigned secure or provide additional security for its obligations under this Note and security deemed 

3

adequate and sufficient by the Bank is not given when demanded; or in the event one or more of the undersigned or any Obligor shall die, terminate its existence, allow the appointment of a receiver for any part of its property, make an assignment for the benefit of creditors, or where a proceeding under bankruptcy or insolvency laws is initiated by or against any of the undersigned or any Obligor; or in the event the Bank should otherwise deem itself, its security interest, or any collateral unsafe or insecure; or should the Bank in good faith believe that the prospect of payment or other performance is impaired; or if there is an attachment, execution, or other judicial seizure of all or any portion of the Borrower’s or any Obligor’s assets, including an action or proceeding to seize any funds on deposit with the Bank, and such seizure is not discharged within 20 days; or if final judgment for the payment of money shall be rendered against the Borrower
or any Obligor which is not covered by insurance or debt cancellation and shall remain undischarged for a period of 30 days unless such judgment or execution thereon is effectively stayed; or the termination of any guaranty agreement given in connection with this Note, then any one of the same shall be a material default hereunder and this Note and other debts due the Bank by any one or more of undersigned shall immediately become due and payable at the option of the Bank without notice or demand of any kind, which are hereby waived. From and after any event of default hereunder, interest shall accrue on the sum of the principal balance and accrued interest then outstanding at the variable rate equal to the Bank’s Prime Rate plus 5% per annum (“Default Rate”) until such principal and interest have been paid in full, provided that such rate shall not exceed at any time the highest rate of interest permitted by the laws of the State of Florida; and further provided that such rate shall
also apply after judgment. In addition, upon default, the Bank may pursue its full legal remedies at law or equity, and the balance due hereunder may be charged against any obligation of the Bank to any party including any Obligor. Bank shall not be obligated to accept any check, money order, or other payment instrument marked “payment in full” on any disputed amount due hereunder, and Bank expressly reserves the right to reject all such payment instruments. Borrower agrees that tender of its check or other payment instrument so marked will not satisfy or discharge its obligation under this Note, disputed or otherwise, even if such check or payment instrument is inadvertently processed by Bank unless in fact such payment is in fact sufficient to pay the amount due hereunder.

          10.          ACCELERATION.  If a default or Event of Default shall occur hereunder and such default shall continue for ten (10) days then at the option of the Holder, the entire principal sum then remaining unpaid together with any premiums and accrued interest shall immediately become due and payable without notice or demand, and said principal  and premiums shall bear interest from such date at the highest legal rate permitted by law, from time to time, to be charged by Holder, it being agreed that interest not paid when due shall, at the option of the Holder, draw interest at the rate provided for in this paragraph. Failure to exercise the above options shall not constitute a waiver of the right to exercise the same in the event of any subsequent default.  If this Note is payable upon demand, then no terms or provisions
contained in this paragraph shall be deemed or interpreted to alter or abrogate the demand nature of this Note or the rights of Holder under a demand instrument.

          11.          OTHER REMEDIES.  If a default or an Event of Default shall occur Holder shall have in addition to its remedies under this Note, Loan Agreement, and/or any other instrument securing or executed in conjunction with the loan evidenced hereby and applicable law all the remedies of a secured party under the Uniform Commercial Code of the State of Florida and, without limiting the generality of the foregoing, Holder shall have the right, at its option, and without notice or demand, to declare the entire amount of this Note remaining unpaid, and all other liabilities selected by Holder, immediately due and payable, less any unearned interest or other charges and any rebates required by law (it being the intention hereof that under no circumstances shall Holder be entitled to receive at any time any charges not allowed or permitted by law
or any interest in excess of the maximum allowed by law); to set off against this Note all money owed by Holder in any capacity to the undersigned or any guarantor hereof, whether or not due; and Holder shall be deemed to have exercised such right of setoff and to have made a charge against any such money immediately upon the occurrence of such default even though such charge is made or entered in the books of Holder subsequent thereto.  Upon disposition of any collateral after the occurrence of any default, undersigned shall be and remain liable for any deficiency; and Holder shall account to undersigned for any surplus, but Holder shall have the right to apply all or any part of such surplus (or to hold the same as a reserve) against any and all other liabilities of undersigned to Holder.

4

          12.          FLORIDA LAW.  This Note is executed under seal and constitutes a contract under the laws of the State of Florida, and shall be enforceable in a Court of competent jurisdiction in that State, regardless of in which State this Note is being executed.

          13.          HEADINGS.  The headings of the paragraphs contained in this Note are for convenience of reference only and do not form a part hereof and in no way modify, interpret or construe the meaning of the parties hereto.

          14.          DOCUMENTARY STAMPS.  Documentary stamps in the amount required by Florida Law have been purchased and affixed to this Note.

          15.          LATE CHARGE.  The undersigned promises to pay to the Holder of this Note a “late charge” not to exceed an amount equal to five per cent (5%) of any principal or interest which is not paid within ten (10) days from the due date thereof to cover the extra expense involved in handling delinquent payments. Collection or acceptance by Holder of such late charge shall not constitute a waiver of any remedies of Holder provided herein. When any installment payment is past due for ten (10) or more days, subsequent payments shall first be applied to the past due balance. In addition, the undersigned shall pay to Bank a returned payment fee if the undersigned or any other obligor hereon makes any payment at any time by check or other instrument, or by any electronic means, which is returned to Bank because of nonpayment due to
nonsufficient funds.

          16.          MISCELLANEOUS.

                         (a)          The term “Maker”, as used herein, in every instance shall include the Maker’s heirs, executors, administrators, successors, legal representatives and assigns, and shall denote the singular and/or plural, the masculine and/or feminine, and natural and/or artificial persons whenever and wherever the context so requires or admits.

                         (b)          This Note may not be changed orally, but only by an agreement in writing, signed by the party against whom enforcement of any waiver, change, modification or discharge is sought.

          All payments made on the indebtedness evidenced by this Note shall be applied first to repayment of monies paid or advanced by Holder on behalf of the Maker in accordance with the terms of the Mortgage securing this Note, and thereafter shall be applied to payment of accrued interest, and lastly to payment of principal.

          In the event there is any conflict in the terms and conditions of this Note and the Loan Agreement and other Loan Documents executed by the Borrower or Guarantors, the terms and conditions of the Loan Agreement, including, but not limited to, the terms and conditions of the paragraph on Notice and Cure Period in the Loan Agreement will prevail.

          The interest rate charged under this loan is authorized by Section 687.12, Florida Statutes and by Chapter 655, Florida Statutes and any applicable federal laws or regulations.

          The principal balance hereof may be borrowed and re-borrowed from time to time during the term hereof in accordance with the terms of the Loan Agreement but may not exceed at any one time an outstanding principal balance of $3,000,000.00.

          PAYMENT IN FULL OF THIS NOTE SHALL NOT RESULT IN ITS TERMINATION AS LONG AS THE LOAN AGREEMENT IS IN EFFECT.

MAKER AND HOLDER HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVE THE RIGHT EITHER MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION BASED HEREON, OR ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS NOTE INCLUDING BUT NOT LIMITED TO ANY POST JUDGMENT ACTIONS AND ANY AGREEMENT CONTEMPLATED TO BE EXECUTED IN CONJUNCTION HEREWITH, OR ANY COURSE OF CONDUCT, COURSE OF 

[Signature page follows]

5

DEALING, STATEMENTS (WHETHER VERBAL OR WRITTEN) OR ACTIONS OF EITHER PARTY.  THIS PROVISION IS A MATERIAL INDUCEMENT FOR THE HOLDER MAKING THE LOAN OR EXTENSION OF CREDIT EVIDENCED BY THIS NOTE.

	
  
 
  	
  
/s/ SRW   (Initials)
  
	
  
 
  	
  

  
	
  
Address of   Maker:
  	
  
 
  	
  
 
  
	
  
1684 West   Hibiscus Blvd.
  	
  
 
  	
  
 
  
	
  Melbourne,   Florida 32901
  	
  
THE   GOLDFIELD CORPORATION,
  
	
  
 
  	
  
a Delaware corporation
  
	
  
 
  	
  
 
  
	
  
 
  	
  
By:
  	
  
/s/ Stephen   R. Wherry
  
	
  
 
  	
  
 
  	
  

  
	
  
 
  	
  
 
  	
  
STEPHEN R.   WHERRY
  
	
  
 
  	
  
 
  	
  
Senior Vice   President
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
TAXPAYER   IDENTIFICATION NUMBER:
  
	
   
  	
  88-0031580
  

6

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